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Home My WebLink About027538 RES - 12/11/2007Page 1 of 3 RESOLUTION AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE THE FIRST AMENDMENT TO THE CONTRACT BETWEEN THE CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION AND JOHN MIKULENCAK, DBA EXTREME HOMES OF TEXAS FOR NEW CONSTRUCTION HOMEBUYERS ASSISTANCE PROJECT, TO EXTEND THE TERM OF THE PROGRAM AGREEMENT AND TO ADJUST THE AMOUNT OF THE LOAN OF FUNDS TO A MAXIMUM OF $20,000 AND THE TERMS OF THE LOAN TO A DEFERRED FORGIVABLE LOAN AND AMORTIZED FOR A TERM PROVIDED BY OTHER HUD SUPPORTED PROGRAMS WHEREAS, the Corpus Christi Business and Job Development Corporation, the City ofCorpus Christi, and John Mikulencak, dba Extreme Homes of Texas, (Extreme 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 Extreme Homes 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 contract. WHEREAS, the parties to the agreement desire to execute this First Amendment to revise the term provision of the agreement to extend the agreement until November 30, 2008, and to adjust the amount of the loan of funds to a maximum of $20,000 and the term of the loan to a deferred forgivable loan and amortized for a term provided by other HUD supported programs. 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 to the Affordable Housing Program Agreement for a Pilot Infill Housing Project between the Corpus Christi Business and Job Development Corporation and Extreme Homes, to extend the term of the agreement until November 30, 2008 and to adjust the amount of the loan of funds to a maximum of $20,000 and the term of the loan to a deferred forgivable loan and amortized for a term provided by other HUD supported programs. SECTION 2. The City Manager, or his Designee, is authorized to execute the First Amendment to the Affordable Housing Program with John Mikulencak, dba Extreme Homes of Texas, for a New Construction Homebuyers Assistance Project, a copy of which is attached as Exhibit "A". 027538 H:\LEG-DIRISh r d\ aryS\agenda12o 7\12-111Fees-AmendAffordabteHousingExtrer eHomes.don ATTEST: Armando Chapa City Secretary Page 2 of 3 CITY 0 CORPUS CHRISTI eriry Garr - tt Mayor APPROVED AS TO FORM: M Deemer 5, 2007 G ry e. Smith Assistant City Attorney For the City Attorney tik) H:ILEG-L IR Shared\Gary \a nda12 ?112-11\Fees-AmendAffordabl H usin ExtremeHemes.d e Corpus Christi, Texas 1141 of tee114. , 2007 The above resolution was passed by the following vote: Henry Garrett Melody Cooper Larry Elizondo, Sr. Mike Hummel' Bill Kelly Priscilla G. Leal John E. Marez Nelda Martinez Michael M Cut hon 027538 Page 3 of 3 H:\LE -DIF 1Shared\ ryS\agenda\2o 7\12.11\Res-AmendAfford bleHousingExtremeH mes.do FIRST AMENDMENT T AFFORDABLE USING AGREEMENT WITH JOHN MIKULENCAK DBA EXTREME HOMES OF TEXAS FOR A NEW CONSTRUCTION HOMEBUYERS ASSISTANCE PROJECT .("Firstto the affordable dousing greeet with �'� first ared�etAmendment") John Mikulencak dba Extreme m es of Texas for a New Construction Homebuyers Assistance #yy Project ("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation"), the City of Corpus �� ("City"), and John M�u1ea dba ' Extreme Homes f Texas("Extreme Homes"). CityExtreme oyes executedthe Agreement for the WHEREAS, theCorporation, and purpose of utilizing sales tax funds to accomplish the affordable housing project described in the Agreement and in the Extreme Homes proposal; � altos Extreme Homes to multiple WHEREAS, an unanticipated opportunity' lien affordable toqualified buyers, but requires the ro res tomake the homes more p to third lien position; securing the loan of funds to be subordinated al provided for forgivable loan with 20%WHEREAS, the Agreement and propos penalty peyear in the event of default and the intent the program is toprovide for a hornebu homebuyer lives in the home, with the loanr progressive forgiveness of the loan as the p ori of the home as principal residence; being completelyforgiven upon occupation WHEREAS, the parties to the Agreement to execute this First Amendment to revise the provisions as stated above. NOW, THEREFORE, the parties to the Agreement agree to amend the Agreement as follows: Section 1. Section of the Agreement entitled ``fen" isdeleted inits entirety and is replaced with the following language: "SECTION 3. Term. the term this Program Agreement extends until November 30, 2008." Section 2. Paragraph b. of Section of the Agreement entitled "Services to beProvided bar Extreme Homes" is amended to read as follows: "SECTION . Services to be Provided by Extreme Homes. "Ho neo rner" shall receive b. Eligible homeowner a deferred, ' and for the term. forgivable loan at zero percent interest rate a • Jams. The amount of the deferred rolled inether sus sorted � r R r lgan shall be us to ef $4-20,000 de end r 1 l o le Tef-iT hq funds provided under this Program Agreement are o be used to assist the honebuer with the purchase of a newt constructed house rovidin funds for the down payment and closing costs. until -the 1 , - ' - : :. Should the honiebu er sell r o ion er use the �-_ llouse as hisihersj_imary resiclenirn. the afizcAbARciocl, then the loanwillbe due and . a able at a . rorated amount. The deferred for�r •'vable loan will be forgiven at the same rate .rovrded in other HUD sup ortrograms at the time the ho .ebu er ualifies for assistanc.e. The Co • oration will • lace a lien on the . ro . ert to • ote ct its interest be a first second o third 1 o .. Whena loan from m the which ..�. Co o�' ation is ed in coni unction withHUDfunds the Corti used --�- subordinatewill osition its line . to the lender . rovidin the • err an nt financin . and HUD funds." Section �, Paragraphs a. and d. Section 6 of the Agreement entitled "Loan of Funds" are amended to read as follows: "SECTION 6. Loan of Funds. a. The Corporation authorizes the City to grant, from allocated sales tax revenues, up to $160,067 for homebuyer assistance of down payment and closing costs of new homes for eligible homeowners pursuant to this Program Agreement. Eligible homeowner of homes with total price of $85,000 mayqualify for a maximum 2 forgivable loan. d. Extreme Homes s 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 ejthera fir secondor third mortgage lien o the property. Recapture shall occur upon _ the earlier of the e following events: i. Sale of home; ii. Homeowner no longer occupies the home as primary residence; or iii. Foreclosure of home." •this first Amendment, the parties agree to be bound bythe Section execution of amended term provision. ` ` All other provisions, obligations, and conditions of the Agreement not changed by this First Amendment remain the same and in full force and effect. EXECUTED IN UC.T, each of which is ir an original, on this the day o , 2007. CORPUS CHRISTI BUSINESS JOB DEVELOPMENT C RP.A.TION Signature Printed name: Date: STATE OF TEXAS COUNTY OF NCS Title ACKNOWLEDGMENT KNOW ALL BY THESE PRESENTS: This instrument was acknowledged before me o , 2007, by as the - (title) of Development Corporation, a Texasnonprofit the CorpusChristi Business and JobDereir�� corporation, on ehalf of the corporation. (seal) NOTARY Y PUBLIC, State of Texas ATTEST: CITY OF CORPUS CHRISTI Armando Chapa - George K. Noe City Secretary City Manager Date: Date: APPROVED AS TO ' is cc I iT1�.J bray W. bmi h Assistant City Attorney for the City Attorney JOHN K L NC K DBA EXTREME HOMES OF TEXAS Mi ulen ak, Owner Date: ,/#—„:1° STATE OF TEXAS COUNTY OF NUECES ACKNOWLEDGMENT KNOW ALL BY THESE PRESENTS: r 2007 This instrument was acknowledged before me on by John Mi ulen ak. SAVANNAH KIRKPATRICK Notary Public State of Texas My Comm. Exp. 01/05/201 } d# a UNX-0,00, c, TARY PUBLIC, State •f Texas wrtitYw7Ytiel,. Ahi1,7kink (t1. -r` V.of ?,P (inn