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 $100,000 at 0% interest for 24
months, to a qualified builder to construct a new affordable home for an income-
qualified homebuyer.
ATTEST: THE CITY OF CORPUS CHRISTI
/41 -02/C
Rebecca Huerta elda Martinez
City Secretary Mayor
030732
INDEXED
2
Corpus Christi, Texas
l2 ' of /�1 I , vol (n
The above resol n was passed by the following vote:
Nelda Martinez
Rudy Garza f
Chad Magill li
Colleen Mclnt re IA!
McIntyre
Lillian Riojas I
Brian Rosas
Lucy Rubio
Mark Scott
Carolyn Vaughn - �
030732
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly authorized
representative), hereby certify to the City Council and other appropriate officers that the money required
for the current fiscal year's portion of the contract, agreement, obligation or expenditure described
below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has
not been appropriated for any other purpose. Future payments are subject to annual appropriation
by the City Council.
Cit C unci) P i rlJ��t,.�
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Agenda Item: Resolution approving the Affordable Housing -Type A Pilot Program which uses
Type A funds for up front/interim construction costs for a qualified builder to construct a new
affordable home for an income-qualified homebuyer.
Amount Required: (Amount to be Certified)$ 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