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HomeMy WebLinkAbout030732 RES - 01/12/2016 Resolution Approving the Affordable Housing — Type A Pilot Program which uses Type A funds for up front/interim construction costs for a qualified builder to construct a new affordable home for an income- qualified homebuyer. WHEREAS, the Corpus Christi Business and Job Development Corporation (Type A) passed a motion to allocate $100,000, of funds from the Available for Projects line item into the Type A Pilot Program; WHEREAS, the City Council desires to provide more opportunities for decent, affordable housing for its citizens; and WHEREAS, the Affordable Housing —Type A Pilot Program establishes the program guidelines and application criteria for the program. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. Approves the Affordable Housing —Type A Pilot Program, which uses Type A funds for an interim construction loan up to $100,000 at 0% interest for 24 months, to a qualified builder to construct a new affordable home for an income- qualified homebuyer. ATTEST: THE CITY OF CORPUS CHRISTI /41 -02/C Rebecca Huerta elda Martinez City Secretary Mayor 030732 INDEXED 2 Corpus Christi, Texas l2 ' of /�1 I , vol (n The above resol n was passed by the following vote: Nelda Martinez Rudy Garza f Chad Magill li Colleen Mclnt re IA! McIntyre Lillian Riojas I Brian Rosas Lucy Rubio Mark Scott Carolyn Vaughn - � 030732 CITY OF CORPUS CHRISTI CERTIFICATION OF FUNDS (City Charter Article IV, Sections 7 & 8) I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly authorized representative), hereby certify to the City Council and other appropriate officers that the money required for the current fiscal year's portion of the contract, agreement, obligation or expenditure described below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has not been appropriated for any other purpose. Future payments are subject to annual appropriation by the City Council. Cit C unci) P i rlJ��t,.� ','LLUU Agenda Item: Resolution approving the Affordable Housing -Type A Pilot Program which uses Type A funds for up front/interim construction costs for a qualified builder to construct a new affordable home for an income-qualified homebuyer. Amount Required: (Amount to be Certified)$ 100,000 Fund Name Accounting Unit Account Activity No. Amount No. Infill Housing Pilot 1140-15046-131 530000 $100,000 Program Total $100,000 ❑ Certification Not Required Director of Financial Services Date: JAN 1 1 20113 / 5— /396 CITY OF CORPUS CHRISTI Corpus Christi Business and Job Development Corporation Affordable Housing - Type A Pilot Program City of Corpus EQUAL MOUSING Christi OPPOgflLMTY Corpus Christi Business and Job Development Corporation Affordable Housing — Type A Pilot Program Program Guidelines Purpose The purpose of the Type A Pilot Program is to promote and encourage local homebuilders to build new homes on vacant lots in within the boundaries of the City of Corpus Christi. This program will demonstrate the viability of building affordable homes within the Community Development Block Grant (CDBG) boundaries of the City, where existing street and utility infrastructure are available to promote the development of single-family residential homes. Type A funding requires that home affordability and homebuyer income eligibility meet HUD regulations. The City has engaged the Nueces County Community Action Agency to assist with identifying income eligible home buyers and getting them pre-qualified for the first home in the Pilot Program. II. Program Description: A. The Type A Pilot Program (Program) funding is available to qualified builders for building an affordable home for an income-qualified homebuyer. The Program will provide an interim construction loan for up to $100,000 at 0% interest for 24 months, to a qualified builder for construction of a site-built single-family residential home on a vacant lot provided by the City. B. For the first lot under this program, the City has available building plans and specifications for a three-bedroom home to be built on the lot at 2034 Mary Street. Qualified builders will submit a proposal to construct a 3 bedroom, 2 bath home, through a Request for Proposal process, using City provided plans or the City plan with modifications. The City will evaluate proposals and award on best value. C. Notice to Proceed will not be issued until the buyer has been qualified for HUD eligibility through the Nueces County Community Action Agency and has been pre-qualified and approved for permanent financing through a local lender. A back up pre-qualified buyer will also be identified. Once the notice to proceed is issued, the builder must begin construction within 120 days. D. The maximum amount available for a new construction single-family residential home is $100,000 for a three-bedroom dwelling. E. This program can be combined other available City programs offered through Housing and Community Development. The homebuyer can apply for the City's existing Type A Homebuyer Assistance Program for up to $10,000 for Type A Pilot Program 2 down payment and buy down costs, and can apply for the HOME Assistance Program for up to $5,000 in closing costs. F. The sale price of the home will be the construction cost plus $1,500 for the land. Proceeds from the sale will be used to reimburse the waived fees to make the General Fund whole, with the remaining funds being redeposited in the Type A Fund. Ill. Builder Eligibility through Request for Proposal (RFP) Process: • Builder must demonstrate experience to complete the project in a professional manner and to a standard appropriate for the community. • Builder must demonstrate financial capability. • Builder must enter into an agreement with City accepting all program requirements and City rules and regulations. IV. Construction Standards: • The work will be performed in accordance with the most current applicable City Technical Construction Codes, including the Energy Code. This includes the requirement for a driveway. • The house must comply with the State Board of Insurance Windstorm Codes. • The house must meet FHA and VA requirements. • The house cannot be located in a 100-year flood plain. V. Program Incentives: • City-owned vacant lot provided for construction o Lot will be conveyed to homebuyer through a subordination agreement at closing • Type A funding as interim construction loan to builder for up to $100,000 at 0% interest for 24 months • Waiver of fees, which include building permit, inspection fees, water, sewer and gas taps Type A Pilot Program 3