HomeMy WebLinkAbout028382 RES - 10/27/2009Page 1 of 3
RESOLUTION
AUTHORIZING THE CORPUS CHRISTI BUSINESS AND JOB
DEVELOPMENT CORPORATION TO EXECUTE AN AFFORDABLE
HOUSING PROJECT AGREEMENT WITH NUECES COUNTY
COMMUNITY ACTION AGENCY, IN THE AMOUNT OF $100,000, FOR
THE ACQUISITION, REHABLITATION, AND RESALE OF
AFFORDABLE EXISTING HOMES, AND AUTHORIZING THE CITY
MANAGER, OR DESIGNEE, TO EXECUTE AN AFFORDABLE
HOUSING PROJECT ADMINISTRATION AGREEMENT WITH THE
CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT
CORPORATION REGARDING IMPLEMENTATION AND
ADMINISTRATION OF THE AFFORDABLE HOUSING PROJECT
AGREEMENT BETWEEN CORPORATION AND NUECES COUNTY
COMMUNITY ACTION AGENCY FOR THE ACQUISITION,
REHABLITATION, AND RESALE OF AFFORDABLE EXISTING HOMES
WHEREAS, Section 501.073(a), Texas Local Government Code (formerly Section 21 of
the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised
Civil Statutes), requires the City Council to approve all programs and expenditures of
the Corporation;
WHEREAS, there is a need for an affordable housing project administration agreement
between the City of Corpus Christi and the Corpus Christi Business and Job
Development Corporation for the implementation and administration of the affordable
housing project agreement with Nueces County Community Action Agency for the
acquisition, rehabilitation, and resale of affordable existing homes.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. The Corpus Christi Business and Job Development Corporation is
authorized to execute the affordable housing project agreement with Nueces County
Community Action Agency for the acquisition, rehabilitation, and resale of affordable
existing homes, which is attached to this resolution, as Exhibit A, and expend $100,000
of funds available to the Corporation for that purpose.
SECTION 2. That the City Manager, or designee, is authorized to execute the
affordable housing project administration agreement between the City of Corpus Christi
and the Corpus Christi Business and Job Development Corporation for the
implementation and administration of the affordable housing project agreement with
Nueces County Community Action Agency for the acquisition, rehabilitation, and resale
of affordable existing homes, which is attached to this resolution as Exhibit B.
9382
AffordableHousingGrantResolution -- NCCAA Rehab -- 10132009.doc
ATTEST:
CITY OF CORPUS CHRISTI
'//4,7,a -da --‘111/
Armando Chapa V Joe dame
City Secretary Mayor
APPROVED as to form: October/`V/2009
R. ening
F st sistant C; Attorney
For the City Attorney
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Page 3of3
Corpus Christi, Texas
of K , 2009
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler til
Brent Chesney /4/he-415F�
Larry R. Elizondo, Sr.
/6117
Kevin Kieschnick „Akuid--
Priscilla Leal jAS-h
John E. Marez
Nelda Martinez
Mark Scott
8332
AffordableHousingGrantResolution -- NCCAA Rehab -- 10132009.doc
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly authorized
representative), hereby certify to the City Council and other appropriate officers that the money
required for the current fiscal year's portion of the contract, agreement, obligation or expenditure
described below is in the Treasury to the credit of the Fund specified below, from which it is to be
drawn, and has not been appropriated for any other purpose. Future payments are subject to
annual appropriation by the City Council.
City Council Action Date: October fib, 2009
Agenda Item:
Resolution authorizing the Corpus Christi Business and Job Development Corporation to execute an
affordable housing project agreement with Nueces County Community Action Agency, in the amount
of $100,000,for the acquisition, rehabilitation, and resale of existing affordable homes, and authorizing
the City Manager, or designee, to execute an affordable housing project administration agreement
with the Corpus Christi Business and Job Development Corporation regarding implementation and
administration of the affordable housing project agreement between Corporation and Nueces County
Community Action Agency for the acquisition, rehabilitation, and resale of existing affordable homes.
Amount Required:
$ 100.000
Fund Name
Fund No.
Org.
No.
Account
No.
Project
No.
Amount
Type A 1/8t Cent Sales Tax
for Economic Development
$100,000.00
Total
$100,000.00
Certification Not Required
J..
Director of Financial Services
Date: �O—I3 -off
AFFORDABLE HOUSING PROJECT AGREEMENT
NUECES COUNTY COMMUNITY ACTION AGENCY
This Affordable Housing Project Agreement ("Project Agreement") is entered into
between the Corpus Christi Business and Job Development Corporation
("Corporation"), the City of Corpus Christi ("City"), and Nueces County Community
Action Agency ("Grantee").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979) empowered local
communities with the ability to adopt an optional local sales and use tax as a means of
improving the economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City of Corpus Christi passed
Proposition 2, New and Expanded Business Enterprises, which authorized the adoption
of a sales and use tax for the promotion and development of new and expanded
business enterprises at the rate of one-eighth of one percent to be imposed for 15
years;
WHEREAS, in the same election, the residents of the City passed Proposition 2B,
Affordable Housing, which authorized the use of a portion of the sales and use tax
approved under Proposition 2 for affordable housing, up to $500,000 annually, so long
as there are projects for which the amount can reasonably be used;
WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 and allocated
under Proposition 2B for affordable housing was subsequently enacted by the City's
City Council ("City Council"), and filed with the State Comptroller of Texas, effective
April 1, 2003, to be administered by the Corporation's Board of Directors ("Board");
WHEREAS, the Board issued a request for proposals for affordable housing projects;
WHEREAS, Grantee submitted a proposal to the Board to request funds for the
acquisition, rehabilitation, and resale of affordable existing homes; and
WHEREAS, the Board has determined that it is in the best interests of the residents of
the City of Corpus Christi that affordable housing funds be awarded, by execution of this
Project Agreement, to accomplish the affordable housing project described in this
agreement and in Grantee's proposal;
In consideration of the covenants, promises, and conditions stated in this Project
Agreement, the Corporation, Grantee, and the City agree as follows:
1. Project Agreement to Implement Affordable Housing Project. This Project
Agreement between the Corporation, the City, and Grantee is executed to implement
the promotion and development of an affordable housing project proposed by Grantee
in response to the Board's request for,proposals ("Project Response"). The Project
Response submitted by Grantee, entitled "NCCAA Rehabilitation Project" ("Project") is
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Exhibit A
attached to this Project Agreement as Exhibit C, and is incorporated in this Project
Agreement by reference.
2. Effective Date. The effective date of this Project Agreement is the latest date on
which a party to the Project Agreement is executes this Project Agreement. ("Effective
Date")
3. Expiration Date. This Project Agreement expires on July 31, 2010.
4. Services to be Provided by City.
a. The City, through the City's City Manager or his designee ("City Manager"),
administers the funding and performs contract administration responsibilities, as
outlined in this Project Agreement, for the Corporation.
5. Services to be Provided by Grantee.
a. Establish an Existing Housing Acquisition/Rehabilitation/Resale Revolving
Grant Fund that will support the following four program stages:
(1) Stage 1 — Property Acquisition.
(a) Identifying prospective properties for acquisition.
(b) Conducting a feasibility analysis on the properties.
(c) Submitting offers on properties.
(d) Acquiring title to properties.
(2) Stage 2 — Property Rehabilitation.
(a) Rehabilitate units.
(b) Incorporate Green Energy concepts.
(c) Incorporate Efficiency concepts.
(3) Stage 3 — Sale of Properties
(a) Sell property to qualified homebuyers.
(b) Qualified homebuyers at or below 80% AMI (annual median
income.
(4) Stage 4 — Closing on Sales
(a) Close of property sales transactions.
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(b) Reimburse fund from sales proceeds.
(c) Restart cycle.
b. Identify properties that can be rehabilitated for resale as affordable housing
for qualified buyers from the following sources: Bank REO, tax foreclosures,
mortgage foreclosures, and sales by private individuals. (BanIS,.REO property is
property owned by banks, normally acquired through foreclosure, that failed to
sell at a foreclosure auction.)
c. Rehabilitate acquired properties to keep the post -rehabilitation value at an
affordable level, e.g., not more than 95% of the median purchase price of homes
in area.
(1) Upon acquisition of a property, detailed job specifications must be
developed for each address by qualified housing construction personnel.
(2) The specifications must be used to bid out the jobs and to facilitate
project management.
(3) Properties must be returned to safe, sanitary, and secure condition.
(4) Green energy concepts must be incorporated into selection of
materials and appliances.
(5) To the maximum extent practicable, homes must be modified to
address potential needs of persons with disabilities.
d. Sell the rehabilitated homes to qualified buyers utilizing existing down
payment assistance programs.
e. Limit program implementation cost to less than 10% of the average unit sales
price of the rehabilitated homes.
6. Services to be Provided by Corporation. The Corporation will provide a grant of
up to $100,000.00.
7. Documentation and Reports.
a. Grantee shall maintain all documentation relating to the receipt and
expenditure of the funds provided under this Project Agreement for a period of
three years following the expiration of this Project Agreement or for such longer
period as may be required by Federal or State law.
b. Grantee shall provide access to all records, documents, reports, and audits,
regarding the funded activity under this Project Agreement, during regular
business hours, for the purpose of inspection and copying by the City Manager.
Furthermore, Grantee shall provide to the City Manager any information
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pertinent to this Project Agreement, as may be requested during the term of this
Project Agreement.
c. Grantee shall submit a performance report ("Quarterly Report") to the City and
the Corporation at least once each quarter, and a complete performance report
("Final Report") within 30 days of the expiration of this Project Agreement. The
Quarterly and Final Reports must contain all relevant details pertaining to the
acquisition, rehabilitation, and resale of affordable existing homes, and include
any supporting documentation required to substantiate the written narrative
contained in the reports. The reports must document:
(1) Assets in the Existing Housing Acquisition/Rehabilitation/Resale
Revolving Grant Fund, including beginning balance at start of reporting
period, other funds contributed to the fund, expenditures from the fund,
and fund balance at end of reporting period.
(2) Properties acquired through program, including location and
description, and acquisition costs.
(3) Costs of rehabilitating the individual properties.
(4) Properties sold through program, including sale price and other selling
expenses.
(5) Net gain or loss from each transaction completed during reporting
period.
8. Amendments or Modifications.
a. No amendments or modifications to this Project Agreement may be made, nor
any provision waived, unless the amendment or modification is made in writing
and signed by persons duly authorized to sign agreements on behalf of all
parties.
b. The City Manager is authorized to execute minor amendments or
modifications to this Project Agreement, by exchange of letters with the Grantee.
The minor amendments and modifications may relate to the timing of
performance and reporting, the scope of work to be performed, the number of
homebuyers assisted, or the amount of assistance provided to each homebuyer.
However, the minor amendments or modifications may not increase the amounts
of money available to the Grantee under this Project Agreement.
9. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Project Agreement or the application of this Project
Agreement to.any person or circumstance is, to any extent, held illegal, invalid,
or unenforceable under present or future law or by a final judgment of a court of
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competent jurisdiction, then the remainder of this Project Agreement, or the
application of the term or provision to persons or circumstances other than
those as to which it is held illegal, invalid, or unenforceable, will not be affected
by the law or judgment, for it is the definite intent of the parties to this Project
Agreement that every section, paragraph, subdivision, clause, provision,
phrase, and word of this Project Agreement be given full force and effect for its
purpose.
b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this
Project Agreement, then the remainder of this Project Agreement is not affected
by the law, and in lieu of any illegal, invalid, or unenforceable clause or
provision, a clause or provision, as similar in terms to the illegal, invalid, or
unenforceable clause or provision as may be possible and be legal, valid, and
enforceable, will be added to this Project Agreement automatically.
10. Compliance with Laws. Grantee shall comply with all applicable Federal, State,
and local government laws, rules, regulations, and ordinances which may be relevant to
Grantee's performance under this Project Agreement.
11. Jurisdiction and Venue.
a. This Project Agreement is governed by and must be construed under the
laws of the State of Texas.
b. All actions brought to enforce compliance with this Project Agreement must
be brought in Nueces County, Texas, where this Project Agreement was
entered into and must be performed.
12. Acknowledgment and Construction of Ambiguities. The parties expressly
agree that each has independently read and does understand this Project Agreement.
By Grantee's execution of this Project Agreement, Grantee agrees to be bound by the
terms, covenants, and conditions contained in this Project Agreement. Any ambiguities
in this Project Agreement may not be construed against the drafter.
13. Indemnity. Grantee must fully indemnify and hold harmless the
City of Corpus Christi, the Corpus Christi Business and Job
Development Corporation, and their officers, employees, and agents
(hereinafter, collectively "Indemnitees") from and against any and all
liability, damage, loss, claims, demands, expenses, suits, and causes
of action of any nature whatsoever on account of injury or damage to
person (including, without limitation on the foregoing, premises
defects, workers' compensation, and death claims) or property loss or
damage of any kind whatsoever which arise out of or are in any
manner connected with, or are claimed to arise out of or be in any
way connected with, either proximately or remotely, wholly or in part,
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any activities by Grantee, its officers, employees, agents, members,
invitees, or independent contractors with respect to this Project
Agreement or the Project that is the subject of this Project
Agreement, regardless of whether such injuries, death, or damages
are caused, or are claimed to be caused, by the contributory
negligence of any of the Indemnitees, but not if caused by the sole
negligence of the Indemnitees unmixed with the fault of any other
person or entity. Grantee covenants and agrees that if Indemnitees,
or any of them, are made a party to any litigation against Grantee or in
any litigation commenced by any party other than Grantee relating to
this Project Agreement or Project, Grantee shall, upon receipt of
reasonable notice regarding commencement of litigation, at its own
expense, investigate all claims and demands, attend to their
settlement or other disposition, defend Indemnitees in all actions
based thereon with legal counsel satisfactory to Indemnitees, and pay
all charges of attorneys and all other costs and expenses of any kind
arising from any said liability, damage, loss, demand, claim, or action.
14. Warranties. Grantee warrants and represents to Corporation the following:
a. Grantee is a duly organized, validly existing, and in good standing under the
laws of the State of Texas, has all authority to carry on its business as presently
conducted in Corpus Christi, Texas.
b. Grantee has the authority to enter into and perform, and will perform, the
terms of this Project Agreement.
c. Grantee has timely filed and will timely file all local, State, and Federal tax
reports and returns required by law to be filed and all taxes, assessments, fees,
and other governmental charges, including applicable ad valorem taxes, have
been timely paid, and will be timely paid, during the term of this Project
Agreement.
d. Grantee has received a copy of the Texas Development Corporation Act of
1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, and acknowledges that
the funds granted in this Project Agreement must be utilized solely for purposes
authorized under State law and by the terms of this Project Agreement.
e. If an audit determines that the funds were not used for authorized purposes,
Grantee agrees to reimburse Corporation for the sums of money spent for
purposes not authorized by law within 30 days written notice requesting
reimbursement.
f. The parties executing this Project Agreement on behalf of Grantee are duly
authorized to execute this Project Agreement on behalf of Grantee.
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15. Events of Default. The following events constitute a default of this Agreement:
a. Failure of Grantee to timely, fully, and completely comply with any one or
more of the requirements, obligations, duties, terms, conditions, or warranties of
this Project Agreement.
b. The Corporation or City determines that any representation or warranty on
behalf of Grantee contained in this Project Agreement or in any financial
statement, certificate, report, proposal, or opinion submitted to the Corporation in
connection with this Project Agreement was incorrect or misleading in any
material respect when made.
c. Any judgment is assessed against Grantee or any attachment or other levy
against the property of Grantee with respect to a claim remains unpaid,
undischarged, or not dismissed for a period of 30 days.
d. Grantee makes an assignment for the benefit of creditors.
e. Grantee files a petition in bankruptcy, or is adjudicated insolvent or bankrupt.
f. If taxes on property owed by Grantee become delinquent, and Grantee fails to
timely and properly follow the legal procedures for protest or contest.
g. Grantee changes the general character of its business as conducted on or
following the date this Agreement is approved by the Corporation.
16. Notice of Default. Should the Corporation or City determine that Grantee is in
default under the terms of this Agreement, the Corporation or City shall notify Grantee in
writing of the event of default and provide 60 days from the date of the notice ("Cure
Period") for Grantee to cure the event of default.
17. Results of Uncured Default. After exhausting good faith attempts to address any
default during the Cure Period, and taking into account any extenuating circumstances
that might have occurred through no fault of Grantee, as determined by the Board of
Directors of the Corporation, the following actions must be taken for any default that
remains uncured after the Cure Period:
a. Grantee shall immediately repay to Corporation, with interest at the interest
rate paid by the City on its most recently issued general obligation bonds from
date of expiration of Cure Period until fully paid, all funds not used under terms of
this Project Agreement.
b. Grantee shall pay Corporation reasonable attorney fees and costs of court to
collect amounts due to Corporation.
c. The Corporation shall have no further obligations to Grantee under this
Project Agreement and this Project Agreement shall terminate.
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d. Neither the City nor the Corporation may be held liable for any consequential
damages.
e. The Corporation may pursue all remedies available under law.
18. No Waiver.
a. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Project Agreement, constitutes a waiver of any subsequent
breach of the covenant or condition of the Project Agreement.
b. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Project Agreement, justifies or authorizes the nonobservance on
any other occasion of the covenant or condition or any other covenant or
condition of this Project Agreement.
c. Any waiver or indulgence of Grantee's default may not be considered an
estoppel against the Corporation.
d. It is expressly understood that if at any time Grantee is in default in any of its
conditions or covenants of this Project Agreement, the failure on the part of the
Corporation to promptly avail itself of the rights and remedies that the
Corporation may have, will not be considered a waiver on the part of the
Corporation, but Corporation may at any time avail itself of the rights or remedies
or elect to terminate this Project Agreement on account of the default.
19. Notices.
a. Any required written notices shall be sent, certified mail, return receipt
requested, addressed as follows:
If to Grantee:
Nueces County Community Action Agency
Attn: Executive Director
101 South Padre Island Drive
Corpus Christi, Texas 78405-4102
If to Corporation:
City of Corpus Christi Business and Job Development Corporation
Attn: Executive Director
1201 Leopard Street
Corpus Christi, Texas 78401
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b. A copy of all notices and correspondence must be sent to the City at the
following address:
City of Corpus Christi
Attn.: City Manager
P.O. Box 9277
Corpus Christi, Texas 78469-9277
c. Notice is effective upon deposit in the United States mail in the manner
provided in subsection a of this section.
20. Incorporation of other documents.
The Corpus Christi Business & Job Development Corporation 4a Board
Affordable Housing Request for Proposals issued [Date of RFP] is incorporated
into this Project Agreement.
21. Relationship of Parties. In performing this Agreement, the Corporation, Grantee,
and the City shall act in an individual capacity, and not as agents, representatives,
employees, employers, partners, joint -venturers, or associates of one another. The
employees or agents of either party may not be, nor be construed to be, the employees
or agents of the other party for any purpose.
22. Nonassignment. Grantee may not assign, mortgage, pledge, or transfer this
Project Agreement or any interest contained in this Project Agreement without the prior
written consent of the other parties to this Project Agreement.
23. Non-discrimination.
a. Grantee may not discriminate nor permit discrimination against any person or
group of persons on the grounds of race, gender, disability, religion, age, or national
origin in any manner prohibited by the laws of the United States or the State of
Texas.
b. The City Manager retains the right to take any action the United States or the
State of Texas may direct to enforce this non-discrimination covenant.
24. Captions. The captions in this Project Agreement are for convenience only and
are not a part of this Project Agreement. The captions do not in any way limit or amplify
the terms and provisions of this Project Agreement.
25. Entire Agreement. This Project Agreement and the referenced and incorporated
documents constitute the entire agreement between the Corporation, the City, and
Grantee for the purpose stated. All other agreements, promises, representations, and
understandings, oral or otherwise, with reference to the subject matter of this Project
Agreement, unless contained in this Project Agreement, are expressly revoked, as the
parties intended to provide for a complete understanding, within the provisions of this
Project Agreement and its referenced and incorporated documents, of the terms,
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conditions, promises, and covenants relating to the each party's required performance
under this Project Agreement.
CORPUS CHRISTI BUSINESS &
JOB DEVELOPMENT CORPORATION
Eloy Salazar
President
STATE OF TEXAS §
COUNTY OF NUECES §
Date
ACKNOWLEDGMENT
KNOW ALL BY THESE PRESENTS:
This instrument was acknowledged before me on , 2009,
by Eloy Salazar, President, Corpus Christi Business & Job Development Corporation, a
Texas nonprofit corporation, on behalf of the corporation.
NOTARY PUBLIC
State of Texas
ATTEST: CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
'Angel R. Escobar
City Manager
Date: Date:
APPROVED AS TO FORM:
R. Jay Reining
First Assistant City Attorney
for the City Attorney
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NUECES COUNTY COMMUNITY ACTION AGENCY
Joe A. Martinez Date
Executive Director
ACKNOWLEDGMENT
STATE OF TEXAS
KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES
This instrument was acknowledged before me on , 2009,
by Joe A. Martinez, Executive Director, Nueces County Community Action Agency, a
Texas non-profit corporation, on behalf of the corporation.
NOTARY PUBLIC
State of Texas
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EXHIBIT A
REAL ESTATE NOTE
Date:
Maker:
Maker's Address:
Payee: CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT
CORPORATION
c/o City of Corpus Christi, Economic Development Office
P. O. Box 9277
Corpus Christi, Nueces County, Texas, 78469
Principal Amount:
Annual Interest Rate on unpaid principal 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: Sale or transfer of the property described in this Note; Maker
ceases to occupy the 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.
Security for Payment: Deed of Trust between Maker and Payee covering the
following property:
1. Maker promises to pay to the order of Payee at the place for payment and
according to the terms of payment the principal amount, plus interest at the rates
stated above.
2. On default in the payment of any part of the principal, when due, or failure to
comply with any or the agreements and conditions in any and all instruments
given to secure this note including, without limitation any default under the terms
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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 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.
3. In the event this note is placed into the hands of an attorney for collection, or if
collected through Probate or Bankruptcy proceedings, then an additional ten
percent (10%) on the amount of principal and interest then mitt hereon, shall
be added to the same as reasonable and necessary attorney's fees in addition to
court costs.
4. Each Maker is responsible for the entire amount of this note.
5. 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 this note, or
any part thereof, may be extended without notice.
MAKERS
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EXHIBIT B
DEED OF TRUST
Date:
Grantor:
Grantor's Mailing Address (including county):
Corpus Christi, Nueces County,
Texas 784
Trustee: Lisa Aguilar
Acting City Attorney
1201 Leopard Street
Corpus Christi, Texas 78401
Beneficiary: Corpus Christi Business and Job Development Corporation
Beneficiary's Mailing Address (including county): P.O. Box 9277
Corpus Christi, Nueces County,
TX 78469
Note(s): That note of even date herewith executed by Maker payable to the order of
Beneficiary and described as follows:
Date:
Amount:
Maker(s):
Payee: Corpus Christi Business and Job Development Corporation
Final Maturity Date: Due upon earliest of following events:
(1) sale or transfer of property.
(2) Grantor(s) cease to occupy property as principal
residence.
Terms of Payment: As therein provided
Property (including any improvements):
Prior Lien(s)(including recording information):
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For value received and to secure payment of the note, Grantor conveys the property to
Trustee in trust. Grantor warrants and agrees to defend the title to the property. If
Grantor performs all the covenants and pays the note according to its terms, this deed
of trust has no further effect, and Beneficiary shall release it at Grantor's expense.
GRANTOR'S OBLIGATIONS
Grantor agrees to:
1. Keep the property in good repair and condition.
2. Pay all taxes and assessments on the property when due.
3. Preserve the lien's priority as it is established in this deed of trust.
4. Maintain, in a form acceptable to Beneficiary, an insurance policy that:
a. Covers all improvements for their full insurable value as determined
when the policy is issued and renewed, unless Beneficiary approves a
small amount in writing.
b. Contains an 80% coinsurance clause.
c. Provides fire and extended coverage, including windstorm coverage.
d. Protects Beneficiary with a standard mortgage clause.
e. Provides flood insurance at any time the property is in a flood hazard
area.
f. Contains such other coverage as Beneficiary may reasonably require.
5. Comply at all times with the requirements of the 80% coinsurance clause.
6. Deliver the insurance policy to Beneficiary and deliver renewals to Beneficiary
at least ten days before expiration.
7. Keep any buildings occupied as required by the insurance policy.
8. If this is not a first lien, pay all prior lien notes that Grantor is personally liable
to pay and abide by all prior lien instruments.
9. Principal residence requirement:
a. Grantor agrees to occupy the property described in this deed of trust as
Grantor's principal residence.
b. As used in this deed of trust, "principal residence" means a home
which, depending upon all of the facts and circumstances (including the
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good faith of the occupant) is occupied primarily for residential purposes
by Grantor.
c. The term does not include a home used as an investment property or a
recreational home or a home which is used primarily in a trade or business
(as evidenced by the use of more than fifteen percent [15%] of the total
floor space in a trade or business).
d. Grantor agrees to submit annual recertification, in a form prescribed by
Beneficiary, to the Beneficiary to evidence Grantor's occupancy under the
provisions of this Deed of Trust.
e. Grantor further agrees to notify Beneficiary immediately if at any time
the property ceases to be used as Grantor's principal residence.
10. Due on Sale Requirement. If Grantor conveys or contracts to convey the
property, or any interest the property, to a party or parties not appearing in this
instrument without the written consent of Beneficiary, then Beneficiary, at its
election exercised at any time after such event without notice to Grantor, may
declare the entire indebtedness secured hereby at once due and payable.
BENEFICIARY'S RIGHTS
1. Beneficiary may appoint in writing a substitute or successor trustee,
succeeding to all rights and responsibilities of Trustee.
2. If the proceeds of the note are used to pay any debt secured by prior liens,
Beneficiary is subrogated to all of the rights and liens of the holders of any debt
so paid.
3. Beneficiary may apply any proceeds received under the insurance policy
either to reduce the note or to repair or replace damaged or destroyed
improvements covered by the policy.
4. If Grantor fails to perform any of Grantor's obligations, Beneficiary may
perform those obligations and be reimbursed by Grantor on demand at the place
where the note is payable for any sums so paid, including attorney's fees, plus
interest on those sums from the dates of payment at the rate stated in the note
for matured, unpaid amounts. The sum to be reimbursed shall be secured by
this deed of trust.
5. If Grantor defaults on the note or fails to perform any of Grantor's obligations
or if default occurs on a prior lien note or other instrument, Beneficiary may:
a. Declare the unpaid principal balance and earned interest on the note
immediately due.
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b. Request Trustee to foreclose this lien, in which case Beneficiary or
Beneficiary's agent shall give notice of the foreclosure sale as provided by
the Texas Property Code, as then amended.
c. Purchase the property at any foreclosure sale by offering the highest
bid and then have the bid credited on the note.
6. If Grantor conveys or contracts to convey the property covered by this deed of
trust, or any interest in the property covered by this deed of trust, including a
leasehold interest, to a party or parties not appearing in this instrument without
the written consent thereto of Beneficiary, then Beneficiary, at its election
exercised any time after such event and without notice to Grantor, may declare
the entire indebtedness secured hereby at once due and payable.
TRUSTEE'S DUTIES
If requested by Beneficiary to foreclose this lien, Trustee shall:
1. Either personally or by agent give notice of the foreclosure sale as required by
the Texas Property Code, as then amended.
2. Sell and convey all or part of the property to the highest bidder for cash with a
general warranty binding Grantor, subject to prior liens and to other exceptions to
conveyance and warranty.
3. From the proceeds of the sale, pay, in this order:
a. Expenses of foreclosure, including a commission to Trustee of 5% of
the bid.
b. To Beneficiary, the full amount of principle, interest, attorney's fees,
and other charges due to unpaid.
c. Any amounts required by law to be paid before payment to Grantor.
d. To Grantor, any balance.
GENERAL PROVISIONS
1. If any of the property is sold under this deed of trust; Grantor shall
immediately surrender possession to the purchaser. If Grantor fails to do so,
Grantor shall become a tenant at sufferance of the purchaser, subject to an
action for forcible detainer.
2. Recitals in any Trustee's deed conveying the property will be presumed to be
true.
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3. Proceedings under this deed of trust, filing suit for foreclosure, or pursuing
any other remedy will not constitute an election of remedies.
4. This lien remains superior to liens later created even if the time of payment of
all or part of the note is extended or part of the property is released.
5. If any portion of the note cannot be lawfully secured by this deed of trust,
payments must be applied first to discharge that portion.
6. Grantor assigns to Beneficiary all sums payable to or received by Grantor
from condemnation of all or part of the property, from private sale in lieu of
condemnation, and from damages caused by public works or construction on or
near the property. After deducting any expenses incurred, including attorney's
fees, Beneficiary may release any remaining sums to Grantor or apply the sums
to reduce the note. Beneficiary is not be liable for failure to collect or to exercise
diligence in collecting any such sums.
7. Grantor assigns to Beneficiary absolutely, not only as collateral, all present
and future rent and other income and receipts from the property.
a. Leases are not assigned.
b. Grantor warrants the validity and enforceability of the assignment.
Grantor may as Beneficiary's licensee collect rent and other income and
receipts as long as Grantor is not in default under the note or this deed of
trust.
c. Grantor shall apply all rent and other income and receipts to payment
of the note and performance of this deed of trust, but if the rent and other
income and receipts exceed the amount due under the note and deed of
trust, Grantor may retain the excess.
d. If Grantor defaults in payment of the note or performance of this deed
of trust, Beneficiary may terminate Grantor's license to collect and then as
Grantor's agent may rent the property if it is vacant and collect all rent and
other income and receipts.
e. Beneficiary neither has nor assumes any obligations as lessor or
landlord with respect to any occupant of the property.
f. Beneficiary may exercise Beneficiary's rights and remedies under this
paragraph without taking possession of the property.
g. Beneficiary shall apply all rent and other income and receipts collected
under this paragraph first to expenses incurred in exercising Beneficiary's
rights and remedies and then to Grantor's obligations under the note and
this deed of trust in the order determined by Beneficiary.
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h. Beneficiary is not required to act under this paragraph, and acting
under this paragraph does not waive any of Beneficiary's other rights or
remedies.
i. If Grantor becomes a voluntary or involuntary bankrupt, Beneficiary's
filing a proof of claim in bankruptcy will be tantamount to the appointment
of a receiver under Texas law.
8. Interest on the debt secured by this deed of trust do not exceed the maximum
amount of nonusurious interest that may be contracted for, taken, reserved,
charged, or received under law.
a. Any interest in excess of that maximum amount shall be credited on
the principal of the debt or, if that has been paid, refunded.
b. On any acceleration or required or permitted prepayment, any such
excess shall be canceled automatically as of the acceleration or
prepayment or, if already paid, credited on the principal of the debt or, if
the principal of the debt has been paid, refunded.
c. This provision overrides other provisions in this and all other
instruments concerning the debt.
9. In the event the property described in this deed of trust is subject to prior liens
in favor of third parties, any default under any prior lien instrument is a default
under this deed of trust.
10. When the context requires, singular nouns and pronouns include the plural.
11. The term "note" includes all sums secured by this deed of trust.
12. This deed of trust binds, inures to the benefit of, and may be exercised by
successors in interest of all parties.
13. The note secured by this deed of trust evidences funds advanced for a
portion of the purchase price of the property described in this deed of trust, and is
additionally secured by a vendor's lien on the property.
14. Upon the sale, rent, or change of ownership of the property described in this
deed of trust for any reasons, by any means, or upon the death of the Makers of
the Real Estate Note(s) secured by this deed of trust, the entire principal and
appropriate interest of the Real Estate Note(s) immediately become due and
payable without notice or presentment of any kind including, without limitations,
notice of intent to accelerate and notice of acceleration.
a. The Executive Director of the Corpus Christi Business and Job
Development Corporatiori may waive this requirement upon the written
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request of the Makers of the Real Estate Note(s) or their heirs,
successors, and assigns.
b. Should the property no longer become the primary residence or should
there be a change of use, the entire principal and appropriate interest shall
immediately become due and payable without notice or presentment of
any kind including, without limitations, notice of intent to accelerate and
notice of acceleration.
Witness our hands this day of , 200_ A.D.
Name:
Name:
STATE OF TEXAS
COUNTY OF NUECES
This instrument was acknowledged before me on the day of
200_, by
Notary Public, State of Texas
STATE OF TEXAS
COUNTY OF NUECES
This instrument was acknowledged before me on the day of
200_, by
Notary Public, State of Texas
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AFTER RECORDING RETURN TO:
Corpus Christi Business and Job Development Corporation
c/o City of Corpus Christi Economic Development Office
P. O. Box 9277
Corpus Christi, Texas 78469
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AFFORDABLE HOUSING PROJECT ADMINISTRATION AGREEMENT
This Affordable Housing Project Administration Agreement ("Project Administration
Agreement") is entered into between the Corpus Christi Business and Job Development
Corporation ("Corporation") and the City of Corpus Christi, Texas ("City") for the
administration of the Affordable Housing Project Agreement between the Corporation
and Nueces County Community Action Agency for the acquisition, rehabilitation, and
resale of existing affordable homes.
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979) empowered local
communities with the ability to adopt an optional local sales and use tax as a means of
improving the economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City of Corpus Christi passed
Proposition 2, New and Expanded Business Enterprises, which authorized the adoption
of a sales and use tax for the promotion and development of new and expanded
business enterprises at the rate of one-eighth of one percent to be imposed for 15
years;
WHEREAS, in the same election, the residents of the City passed Proposition 2B,
Affordable Housing, which authorized the use of a portion of the sales and use tax
approved under Proposition 2 for affordable housing, up to $500,000 annually, so long
as there are projects for which the amount can reasonably be used;
WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 and allocated
under Proposition 2B for affordable housing was subsequently enacted by the City's
City Council ("City Council"), and filed with the State Comptroller of Texas, effective
April 1, 2003, to be administered by the Corporation's Corporation of Directors.
("Corporation");
WHEREAS, the Corporation issued a request for proposals for affordable housing
projects;
WHEREAS, Nueces County Community Action Agency has submitted a proposal to the
Corporation for $100,000 for the acquisition, rehabilitation, and resale of existing
affordable homes;
WHEREAS, the Corporation has determined that it is in the best interests of the citizens
of Corpus Christi, Texas, to fund the Nueces County Community Action Agency's the
acquisition, rehabilitation, and resale of existing affordable homes; and
WHEREAS, Section 501.073(a), Texas Local Government Code (formerly Section 21 of
the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon's Texas Revised
Civil Statutes), requires the City Council to approve all programs and expenditures of
the Corporation;
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Exhibit B
WHEREAS, the Corporation and Nueces County Community Action Agency have
executed a affordable housing project agreement for the acquisition, rehabilitation, and
resale of existing affordable homes, as authorized by the City Council.
In consideration of the covenants, promises, and conditions stated in this Project
Administration Agreement, the Corporation and the City agree as follows:
1. Project Administration Agreement to Implement Affordable Housing Project
Agreement. This Project Administration Agreement between the City and the
Corporation is executed to implement the Affordable Housing Project Agreement
between the Corporation and Nueces County Community Action Agency ("Affordable
Housing Agreement") for the acquisition, rehabilitation, and resale of existing affordable
homes.
2. Term. The term of this Project Administration Agreement runs concurrently with the
term of the Affordable Housing Agreement.
3. Services to be Provided by City.
a. The City Manager, or the City Manager's designee, shall administer funding
on behalf of the Corporation.
b. The City Manager, or the City Manager's designee, shall perform contract
administration responsibilities outlined in the Affordable Housing Agreement for
the Corporation.
4. Appropriation of Funds. Any future payments by the City are subject to
appropriation of funds by City's Council.
5. Effective Date. The effective date of this Project Administration Agreement is the
latest date that either party executes this Agreement.
6. Amendments or Modifications. No amendments or modifications to this Project
Administration Agreement may be made, nor any provision waived, unless in writing
signed by a person duly authorized to sign agreements on behalf of each party.
7. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Project Administration Agreement or the application of this
Project Administration Agreement to any person or circumstance is, to any
extent, held illegal, invalid, or unenforceable under present or future law or by a
final judgment of a court of competent jurisdiction, then the remainder of this
Project Administration Agreement, or the application of the term or provision to
persons or circumstances other than those as to which it is held illegal, invalid, or
unenforceable, will not be affected by the law or judgment, for it is the definite
intent of the parties to this Project Administration Agreement that every section,
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paragraph, subdivision, clause, provision, phrase, or word of this Project
Administration Agreement be given full force and effect for its purpose.
b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this Project
Administration Agreement, then the remainder of this Project Administration
Agreement is not affected by the law, and in lieu of any illegal, invalid, or
unenforceable clause or provision, a clause or provision, as similar in terms to
the illegal, invalid, or unenforceable clause or provision as may be possible and
be legal, valid, and enforceable, will be added to this Project Administration
Agreement automatically.
8. Captions. The captions in this Project Administration Agreement are for
convenience only and are not a part of this Project Administration Agreement. The
captions do not in any way limit or amplify the terms and provisions of this Project
Administration Agreement.
The City of Corpus Christi Corpus Christi Business &
Job Development Corporation
'Angel R. Escobar Eloy Salazar
City Manager President
Date: Date:
Attest
Armando Chapa
City Secretary
Approved as to Legal Form: , 2009.
R. Jay Reining
First Assistant City Attorney
for City Attorney
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