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HomeMy WebLinkAbout027309 RES - 06/19/2007Page 1 of 3 RESOLUTION AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE THE SECOND AMENDMENT TO THE CONTRACT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND RANDY FARRAR, DBA MIRAMAR HOMES, FOR AFFORDABLE HOUSING PROGRAM AGREEMENT, TO EXTEND THE TERM OF THE PROGRAM AGREEMENT AND AMEND THE SERVICES TO PROVIDE THAT THE LOAN OF FUNDS MAY BE FORGIVEN. WHEREAS, the Corpus Christi Business and Job Development Corporation, the -3ity of Corpus Christi. and Randy Farrar, DBA Miramar Homes, executed an agreement for the purpose of utilizing 4A sales tax funds to accomplish the affordable housing project described in the Agreement and in the Miramar proposal, a project suitable for the promotion and development of affordable housing project for a term of twelve months from the date of the execution of the ,ontract. WHEREAS. the parties t : the agreement desire to execute this Second Amendment ro revise the term provision of the agreement to extend the :agreement for an :additional twelve (12) months, amend the services to be provided by Miramar to provide for the forgiving of the loan amount upon :)ccupation of the home as the principal residence for five years. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council of the City of Corpus Christi, Texas, approves the First Amendment tc the Affordable Housing Program Agreement between the Oorpus Christi Business and Job Development Corporation and Randy Farrar, DBA Miramar Homes, to extend the term of the agreement for an additional twelve month perioc and amend the services to provide for the forgiving of the oar amount upon Iccupation or the home as the principal residence for five \fears SECTION 2. The City Manager or his Designee, is authorized to execute the First Amendment to the Affordable Housing Program Agreement with Randy Farrar DBA Miramar- Homes a copy of which is attached as Exhibit "A". ATTEST: CIT Armando Chapa Ay Secretary F CORPUS CHRISTI ry Gar ett Mayor 0,709 7 09 i:ILkv DIR\Shared<GaryS'agenda\2()0716-t9\Res-2AmendAffordableHousingMiramarHomes.doc Page 2 of 3 APPROVED AS TO FORM June 14. 2007 aryV�'Smith Assistant City Attorney For the City Attornev 1:\L c G-DIR\Shared\GaryS,agenda\2)0716-19\Res-2AmendAffordableHousingMiramarHomes.doc corpus Christ! Texas OtJ tr 2007 The above resolution was passed by the following vote: LA. Henry Garrett Melody Coope Larry Elizondo Sr Mike Hummell Bili KeIIy risciIIa G Leal John E. Marez Nelda Martinez Michael McCutchor, 0 2 7 3 9 Page 3 of 3 -1:1LE G DIR\Share&Gary.agenda1210716-19\Res-2AmendAffordableHousingMirannarHomes.doc SECOND AMENDMENT TO THE AFFORDABLE HOUSING PROGRAM AGREEMENT WITH RANDY FARRAR, DBA MIRAMAR HOMES This second amendment ("Second Amendment') to the Affordable Housing Program Agreement ("Program Agreement") is made by and between the Corpus Christi Business and Job Development Corporation ("Corporation"), the City of Corpus Christi (• City"and Randy Farrar, dba Miramar Homes ("Mirama(). WHEREAS, the Corporation City and Miramar executed an agreement ("Agreement") for the purpose of utilizing 4A sales tax funds to accomplish the affordable housing proiect described in the Agreement and in the Miramar proposal; WHEREAS, the term of the Agreement was stated as twelve months from the date of execution of the contract and was amended to extend the term of the agreement to twenty-four months from the date of execution of the contract; WHEREAS, the parties to the Agreement desire to execute this Second Amendment to revise the term provisions of the Agreement to extend the term for and additional twelve months: WHEREAS, the original Agreement provided that the Corporation would retain a second mortgage lien on the property to secure the repayment of the loan funded by this Affordable Housing Program Agreement; WHEREAS, the parties desire to allow the loans funded by this Affordable Housing Program Agreement to be forgivable NOW, THEREFORE, the parties to the Agreement agree to amend the Agreement as follows Section 1. Section 3 of the Agreement entitled "Term" is amended to read as follows: "SECTION 3. Term. The term of this Program Agreement extends twenty-four thirty-six (2436) months from the date the last party executes this document. ("Effective Date"' Section 2. Section 5 of the Agreement entitled "Services to be Provided by Miramar" is amended to read as follows "SECTION 5. Services to be Provided by Miramar. H l G-COIR'Shared`.GarvS\agenaa,2007\6-t9 2ndAmendment-AffordabieHousingMiramarHomes070530.doc Page ` of 11 E xnibi Eligible homeowner ("Homeowner") shall receive a forgivable loan of $15000 to $20.000 of the funds provided under this Program Agreement to buy -down the mortgage and closing costs of a home described in this section The mortgage buy -down funds shall be repaid to Corporation vapor sale or transfer of home Miramar shall require Homeowners who receive the buy -down funds provided under this Program Agreement to execute the Real Estate note and Deed of Trust attached as Exhibits A ano B to secure repayment to Corporation of the buy -down funds. Miramar shall file the original executed documents in the official public records al Nueces County. After recording, Miramar must ensure that the original executed and filed documents are returned to the Corporation. The loan shall be forgivable as follows: twenty percent (20%) of the loan is forgiven for each full year the home is occupied as the Homeowner's principal residence and homestead so that the entire loan is forgiven after five_years Section 3. Section 6 of the Agreement entitled "Loan of Funds" is amended to read as follows `SECTION 6. Loan of Funds d. Miramar shall secure for the Corporation the recapture of all loans provided to Homeowner under this Program Agreement by having each Homeowner execute a note secured by a deed of trust that represents a second mortgage lien or: the property Recapture shall occur upon the earlier of the following events, if not forgiven as provided in Section 5.b. above: i. Sale of home; ii Homeowner no longer occupies the home as primary residence; or iii. F=oreclosure of home Section 4. By execution of this second Amendment, the parties agree to be bound by the amended term provision AH other provisions, obligations, and conditions of the Agreement not changed by this Second Amendment remain the same and in full force and effect. H LEG -DR \Shared\GaryS\agenda,2007\\6-19 2ndAmendment-AffordableHousingMiramarHomes070530.doc Page .= of 11 EXECUTED IN DUPLICATE, each of which is considered an original, on this the :Jay of 2007 CORPUS CHRISTI BUSINESS & JOB DEVELOPMENT CORPORATION Signature Printed name Date: STATE OF TEXAS COMITY OF NUECES Title ACKNOWLEDGMENT KNOW ALL BY THESE PRESENTS: This instrument was acknowledged before me on , 2007, by as the (title) of the Corpus Christi Business and Job Development Corporation, a Texas nonprofit corporation, on behalf of the corporation. seal) NOTARY PUBLIC. State of Texas ATTEST CITY OF CORPUS CHRISTI Armando Chapa City Secretary Date: APPROVED AS TO FORM: Gary W Smith Assistant City Attorney for the City Attorney George K. Noe City Manager Date: H `,LE=G-DIR\Shared\GaryS,agenda12007\6-19,2ndAmendment-AffordableHousingMiramarHomes070530.doc Page 3 of 11 RANGY FARRAR, dba Miramar Homes Signature Printed name Date: STATE OF TEXAS § COUNTY OF NUECES § Title ACKNOWLEDGMENT KNOW ALL BY THESE PRESENTS: This instrument was acknowledged before me on , 2007, by Randy Farrar NOTARY PUBLIC. State of Texas r.G-DIR' Shared\.GarvS\agenda \2007t6-19' 2ndAmendment-AffordableHousingMiramarHomes070530.doc Page 4 of 11 EXHIBIT A REAL ESTATE NOTE Date: Maker Makers Address Payee CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION 0/0 City of Corpus Christi, Economic Development Office, P. O. Box 9277, Corpus Christi Nueces County. Texas. 78469 Principal Amount Annual interest Rate on unpaid prncipai from date of funding: Zero percent (0%) Terms of payment This Real Estate Note shall be due and payable upon the earliest of the following events_pnor to forgiveness Sale or transfer of the property described in this Note; Maker ceases to occupy fhe property as principal residence or foreclosure of home. The term `principal residence means a dwelling which. depending on all of the facts and circumstances, including the good faith intent of the occupant. is occupied primarily for residential purposes by the owner This Real Estate Note shall be forgiven at the rate of twenty percent (20%) on each anniversary of this Note so that it is entirely forgiven on the fifth anniversary hereof, unless sooner due as set forth above Security for Payment Deed of Trijst between Maker and Payee covering the following property: Maker promises to pay =j the order of Payee at the place for payment and according to the terms or payment the principal amount plus interest at the rates stated above. On default in the payment of any part of the principal, when due. or failure to comply with any or the agreements and conditions it any and all instruments given to secure this note including, without limitation any default under the terms and provisions of the Real Estate Note, this Note shall at the option of the holder hereof at once mature the whole of this note, without notice at H L'r. G-DiR\Shared\GarySagenca 2007'•5-192ndAmendment-AffordabieHousingMiramarHomes070530.doc Page F of 1 the election of Payee. Maker and each surety. endorser. and guarantor waive all demands for payment presentations for payment notices of intention to accelerate maturity, protests, and notices of protest Ira the event this note is placed into the hands of an attorney for collection, or if collected through Probate -)r Bankruptcy c:roceedings. Then an additional ten percent (10%) on the amount of principal and interest then owing hereon. shall be added to the same as reasonable and necessary attorney`s fees in addition to court costs Each Maker is responsible for the entire amount of this note. The makers and all endorsers sureties and guarantors of this note hereby severally waive presentment for payment, notice of non-payment notice of intent to accelerate, notice of acceleration, protest and diligence in bringing suit, against any party hereto, and consent that the time of payment of th+s note 4 r any cart thereof. may be extended without notice. MAKERS H:,LEG-DkR\.Shared\Gar S\agenda\2OO7\.6-19 2ndArrmendment-AffordableHousingMiramarHomes070530.doc Page 6 of 11 EXHIBIT B DEED OF TRUST Date: Grantor Grantor's Mailing Address (including county): { orpus r'hristi. Nueces t aunty. 1 Cva> 78_i Trustee Mary KaN, Fischet, City At -t rne' 201 leopard Street. Corpus Christi, Texas 78401 Beneficiary: Corpus 'hrisr Business and Job Development Corporation Beneficiary's Mailing Address (including county) P ? Bo', '4277 i orous Christi. Nueces C oiinty. 1 X -846ki Note(s): that note of eveH date herewith executed by Maker payable to the order of Beneficiary and des:ribed rs follov, Date: Amount: Maker Payee: C�)rpus Christi Business and Job Development Corporation Final Maturity Date: Due upon earliest of following events, unless sooner forgiven: (1) sale ,r transfer property, ori, t irantor(s) cease to occupy property as principal residence. terms of Payment: As therein pp ided Property (including any improvements) Prior Lien(s)(including recording information) Fur value received and to secure pa 'nem of the note. Grantor conveys the property to Trustee in trust. Grantor warrants and agree,. to defend the title to the property. If Grantor performs all the covenants and the note according to its terms_ this deed of trust shall have no further effect, and Beneficiary shall release it at Grantor's expen,e. GRANTOR'S OBLIGATION~ t irantor agrees to .LEG-t7IR',Shared\\GaryS+agenaa'2007)6-192ndAmendment-AffordableHousingMiramarHomes070530.doc Page 7, of 11 keep the property in good repair and condition: pry all taxes and assessments on the property when due. preserve the lien's priority as it is established in this deed of trust; maintain. in a form acceptable to Beneficiary. an insurance policy that; ,:overs all improvements 1i)r their full insurable value as determined when the policy is slued and renewed unless 1?enefieiary approves a small amount in writing.; ,.!omtarns an 80°%a coinsurance clause: pro' ides fire and extended ,overage. including windstorm coverage; protects Beneficiary ,.ith a standard mortgage clause: pron ides feud insurance at any time the property is in a flood hazard area; and .:ontains such other coverage as Beneficiary may reasonably require; .:amply al all times with the : equirentents of the 80% coinsurance clause; :deliver the 'nsurane e policy to Beneficiary and deliver renewals to Beneficiary at least ten days heft re expiration. keep any buildings _occupied as required b\ the insurance policy; and '1 this is not it first =ten. pay X11 prior lien notes that Grantor is personally liable to pay and abide by all prior hen arstrument,, p 1'rincipal residence requ cement: t iramor agrees To occupy the property described herein as Grantor's principal residence v1s used herein "principal residence'" means a home which, depending upon all of the `acr> and circumstance, = including the good faith of the occupant) is occupied primarily for residential purpose's by Granton The ertn does not include a home used as an investment property or a recreational home home Nchich ased primarily in a trade or business as evidenced by the use of more than fifteen percent 115°:, of the total floor space in a trade or business) Grantor agrees to submit annual reeertifieat ion, in a tirrrn prescribed h' Beneficiary_ to the Beneficiary to evidence Grantor's occupancy in ate >rdance with the pros n- 'ns here( t Grantor further agrees to notify Beneficiary immediately if at any tants the property ceases te He used a= Grantor's principal residence_ Due in Sale Requirement. if (rranteir ;.;onveys or e:ontracts to convey the property, or any interest trtereirr r a party or parties not appearing in this instrument without the written consent of Beneficiary, then Beneficiar'. rt ,ts ele.tion exec. isec at an, time after such event without notice to Grantor, may declare he entire indebtedmsss secured he►ch\ at once due and payable. BENEFICIARY'S RIGHTS Beneficiary may appoint ;n critine a substitute tr successor trustee, succeeding to all rights and responsibdities of f'-ustee It the proceeds of the not.. are used to par- any. debt secured by prior liens, Beneficiary is subrogated to all Of The rights and lien of tle holders of any debt so paid. BeneficiarG may apply any proceeds received under the insurance policy either to reduce the note t_t repair or replace damaged or destroyed improvements covered by the policy. ►f Grantor fails le perform any of Grantor's obligations_ Beneficiary may perform those c blrgations and be reimbursed by Grantor demand at the place where the note is payable for any sums so paid. including attorney „ fees. plus interest on those sums from the dates of payment at the rate stated in the note for matured, unpaid amounts. ` he sum to be reimbursed shall be secured by this deed of trust. 1 Grantor defaults +n the nes=e or tails to perform any of Grantor's obligations or if default occurs prior lien note other instrument. Beneficiary may declare the €tnpaid principal balance and earned interest on the note immediately due; request =Ftestee to airech sc this lien. in which case Beneficiary or Beneficiary's agent shall gree notice ;,t he h ree'osure ,ale as provided by the Texas Property Code as then amended; rid purchase ;,e proper -v at at: r'. foreclosure sale by offering the highest bid and then have l bide red te°d or he note H LEG-DlR' Shared ,Gar, S'agen{1: \2007 6-' 9 ndAmer dment-AffordableHousingMiramarHomes070530.doc Page 8 of 11 6 110antor coneys or cr ntracts convey the property covered hereby, or any interest in the property c<.,kered hereby. including a leasehold interest. to .1 party or parties not appearing in this instrument \\unnout the written c:onsenn thereto ,f Beneficiary. then Beneficiary. at its election exercised any time after sue:h event and witho+rt notice o t irantor. mai declare the entire indebtedness secured hereby at .uric,.• do mid payztllie Trustee's Duties 1' requested by Beneficiary o loree -se this lien. Trustee ,hall: either personally or by agent give matice of the foreclosure sale as required by the Texas Property t r,de a then amended: ;ell and convey al binding grantor. subject to Fri im the proceeds .: Ypenses I:c nefl( h e to unpaid anamounits required by 1:1,‘ to be paid before payment to Grantor; and ,rantor my halal ce_ or part en the property tc the highest bidder for cash with a general warranty ;prior lien, and to other exceptions to conveyance and warranty; and i the sale pay.. in this order: foreclosure, including a commission to Trustee of 5% of the bid; r.try. the full amount of principle, interest, attorney's fees, and other charges General Provisions. f any of the property is said under this deed of trust: Grantor shall immediately surrender possession= to the purchaser If t irantor fails to do so. Grantor shall become a tenant at sufferance of the purchaser. subject o an action for foie ible detainer. Recitals in any -trustee's deed cony eying the property will be presumed to be true. Proceedings under t} tis deed ,ftrust filing suit for foreclosure_ or pursuing any other remedy will no t .:onstitute an election of remedie, this lien shall remain superior to liens later created even if the time of payment of all or part of the note is extended or part If the property is released. f any portion of !1fe note cannot ae lawfully secured by this deed of trust, payments shall be applied first to discharge that portion 6 a _;rantor assigns to Beneficial all sums payable to or received by Grantor from condemnation of ali r�r part of the property. t'om private sale m lieu of condemnation, and from damages caused by public ycorks or construcrron ,m or near the property After deducting any expenses incurred, including attorney s fees, Beneficiary may release any remaining sums to Grantor or apply such sums to reduce the note Beneficiary shall nor he liable 'or (allure to collect or to exercise diligence in collecting any such s�.tn -antor assigns to BeneficiarY absolutely. not only" as collateral, all present and future rent and other income and reeeipts bona the proper!, Leases are not assigned Grantor warrants the validity and ent-nrceab:lity of the assignment, tirantor may as Beneficiary's licensee collect rent and other income and receipts as long as Grantor s not in default ander the note or this deed of trust. Grantor will apply all rent and other !ncomc and receipts to pay,prem Ff the note and performance of this deed of trust, but if the rent and other income and receipts exceed the amount duc under the note and deed of trust, Grantor may retain the .;xc(ss. If t rranroi demults un pLo, meat of the note or performance of this deed of trust, Beneficiary may terminate I rainor's i,,nse lied then as Grantor's agent may rent the property if it is vacant and collecr all rent and othe- income nd receipts. Beneficiary neither has nor assumes any obligations as less )r landlord aith respect to an, occupant of the property. Beneficiary may exercise Beneficiary's rights and remedies Linde, his paragraph •without taking possession of the property. Beneficiary' shall atop v all rent and .nrher ,n, -)me and receipts collected under this paragraph first to expenses incurred in e e cisnrie Beneficiary's rights and re:rnedics and then to (irantor's obligations under the note and this deed Lust =n the order .ietcrn. ned hi I one,is iary. Beneficiary is not required to act under this paragraph, ara:f act;fn.- under this para. aph doe,. 101 ,onve an' nf Beneficiary's other rights or remedies. If Grantor L. GDR*Shared!Gar S,agenii 200 F ?ndA dment-AffordabieHousingMiramarHomes07053o.doc Page 9 of _t 1 beeome:• voluntar' or in'<oluntary ?ankrupt, Beneficiary's filing a proof of claim in bankruptcy will be tantamount to the appointment °f a receiver under Texas law. interest OF the debt secure by this deed if trust shall not exceed the maximum amount of nonasunous interest that may he et titractcd for, taken. reserved. charged, or received under law; any interest in excess ill' hat maximum mount shall be credited on the principal of the debt or, if that has been pard. refunded On at:v acceleration it required or permitted prepayment, any such excess shall be �an��ele� automatically as l' the acciierat tm or prepayment or, if already paid, credited on the principal ne debt or.. i' thk pr urnipai tit he debt has been paid. refunded. This provision overrides other irr: isi<<rr in this and all other instruments concerning the debt, n the event the priiperty described herein i., subject to prior liens in favor of third parties, any default trader any pror lien nstrumerrn shall be a default hereunder. l r. \\ hen the context requires. singular nouns and pronouns include the plural. He term nolle includes all sums secured by this deed of trust. Fins deed > trust shall bind !nitre to the benefit of, and be exercised by successors in interest of alltrarte t ' bile note :secured hereby e :dente, funds advanced for a portion of the purchase price of the pr,7pertz described above and is additionally secured by a vendor's lien on same. )on the sale_ rens_ or change of ownership of the herein described property for any reasons or by any mean or upon the death of the Makers of the Real Estate Note(s) secured hereby, the entire principal and appropriate interest of ;he Real Estate Notes) shall immediately become due and payable without nott;,e presentment of arc: kind including., without limitations, notice of intent to accelerate and notice A icceleratior.. ` he 1-. yi,:cutrs e Director of the Corpus Christi Business and Job Development _trporatitat may :yaiye this requirement upon the written request of the Makers of the Real Estate Note(s) or their ikars, or successors and assijins. Should the property no longer become the primary residence or Ad there be a i,,hange use. the entre principal and appropriate interest shall immediately become due and payable without n }' ice .,r pr.isentment of ant kind including, without limitations, notice of intent aacelcrute and notice <,f r .celerati, , \Vhands 200A.D. "Jane: Name: STATE OF TEXAS COUNTA OF NUF(°ES 1 instrument was acknowledged before me on the day of , 2007, by Notary Public. Stale of Texiis LEG-DIR\.Shared \GaryS`;agena :2007`,6-19` 2ndAmendment-AffordabieHousingMiramarHomes070530.doc Page 10 of 11 STATE OF TEXAS COUNTY OF NL`ECES lestument :‘a, acklokiedged heiore me on the day of , 2007, by :Nolan P,ablic_ State of 1 ,_'xa AFTER RECORDING RETIIRN TO: Corpus Christi Business and Joh Development Corporation City of Corpus ( `hristr Economic Development Office I° O. Box 9277 ( orpus Christi. I exas 7 469 H LEG-DIR.Shared\GarvS\agenda12007\6-19 ?ndAmendment-AffordableHousingMiramarHomes070530.doc Page 11 of 11 State of Texas County of Nueces PUBLISHER'S AFFIDAVIT } CITY OF CORPUS CHRISTI } ss: Ad # 5607283 PO # Before me, the undersigned, a Notary Public, this day personally came Sandra Orum, who being first duly sworn, according to law, says that she is Legal Sales Representative of the Comus Christi Caller -Times, a daily newspaper published at Corpus Christi in said City and State, generally circulated in Aransas, Bee, Brooks, Duval, Jim Hogg, Jim Wells, Karnes, Kenedy, Kleberg, Live Oak, Nueces, Refugio, San Patricio, Victoria and Webb Counties, and that the publication of, NOTICE F PASSAGE OF ORDINANCE ON which the annexed is a true copy, was inserted in the Corpus Christi C ler- "imes and on the World Wide Web on the Caller -Times es Interactive on the 5TH da s) of NOVEMBER, 200 6. 129.64 t4titi14* `' =: MICHELLEJOYCE A RERA ,, Y COMMISSION EXPIRES !Arch 10, 2008 ()A,tenFLI Legal Sales Representative TWO (2 ) Time(s) Subscribed and sworn to me on the date of Notary Public, Nueces County, Texas Michelle Cabrera Print or Type Name of Notary Public My r commission expires on March 19_,2008. November 5, 200 • Sunday . NOTICE OF pAssA E:. E ORDINANCE ON.--. FIRST READING . Authorizing the City.., . Manager : or his -- designee to execute fourteen -year six--._ month . Manna Space ; Rental Contract with -- Yachting Center of.: Corpus Christi; LL for - the use of Slip Spaces.. No. 54 = 65 of Peoples - street .. T -Head, fort. operation of Yachting.. Center, Sailing School,'* Charter Boats and related activities, and:. including construction- ri of utility and boat:slip. improvements; for: monthly slip. fee rental,; • payments of $6.85 per* linear foot of dock' space, s-ubject to: annual rate changes.. This 'ordinance was, passed and approved.. by the City Council of; the City of Corpus, Christi on first reading . on October 31, 2006. is/Armando Chapa City Secretary City of Corpus Christi