HomeMy WebLinkAbout031047 RES - 01/24/2017 RESOLUTION
APPROVING AN AGREEMENT BETWEEN THE CORPUS CHRISTI BUSINESS AND
JOB DEVELOPMENT CORPORATION AND THE CITY OF CORPUS CHRISTI FOR
TYPE A AFFORDABLE HOUSING PROGRAM — HOMEBUYER ASSISTANCE
PROGRAM IN THE AMOUNT OF $107,500; AND AUTHORIZING THE CITY
MANAGER OR DESIGNEE TO EXECUTE SAID AGREEMENT.
WHEREAS, the Board of the Corpus Christi Business and Job Development
Corporation (the "Board") has approved a Type A Affordable Housing Program -
Homebuyer Assistance Program, which it funds;
WHEREAS, the City through its Housing and Community Development Department
("Department") manages several programs to assist eligible citizens with affordable
housing;
WHEREAS, the City is willing to provide the services that the Board wishes to fund and
has provided these services in the past for the Board;
WHEREAS, the Board approved a six-month agreement between the City and the
Corporation for the management of its program on at the Board's meeting on
September 19, 2016.
NOW THEREFORE BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. The attached agreement between the City and the Corpus Christi
Business and Job Development Board in the amount of $107,500 is approved.
SECTION 2. The City Manager, or designee, is authorized to execute an amended
agreement between the Corpus Christi Business and Job Development Board and the
City for the Type A Affordable Housing Program — Homebuyer Assistance Program.
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Adopted this the L� day of (� - , 2017.
ATTEST: THE CITY OF CORPUS CHRISTI
Rebecca Huerta Cho 1 yJ h
City Secretary Mayor F\
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INDEXED
Corpus Christi, Texas
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The above resolution was passed by the following vote:
Darrfoleetteerr at_OLAJ-
Rudyy Garza S
Paulette Guajardo S i
Michael Hunter i I
Joe McComb
Ben Molina
Lucy Rubio S
Greg Smith it 0/
Carolyn Vaughn 14
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03104T
AGREEMENT BETWEEN CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT
CORPORATION AND
CITY OF CORPUS CHRISTI FOR
TYPE A AFFORDABLE HOUSING PROGRAM— HOMEBUYER ASSISTANCE PROGRAM
This Agreement for the Type A Affordable Housing Program — Homebuyer Assistance Program
("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation
("Corporation") and the City of Corpus Christi ("City"), a Texas home rule municipality.
WHEREAS, the Texas Legislature in Section 501 of the Local Government Code (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 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 wishes to fund affordable housing projects in an effective manner;
WHEREAS, the City through its Housing and Community Development Department
("Department") manages several programs to assist eligible citizens with affordable housing;
WHEREAS, the City is willing to provide the services that the Board wishes to fund and has
provided these services in the past for the Board;
WHEREAS, the Board has determined that it is in the best interests of the residents of the City
that the City be awarded affordable housing funds, by execution of this Agreement, to accomplish the
affordable housing project described in Exhibit"A" of this Agreement ("Project");
In consideration of the covenants, promises, and conditions stated in this Agreement, the
Corporation and the City agree as follows:
1. Agreement to Provide Affordable Housing Services. This Agreement between the Corporation
and the City is executed to implement the promotion and development of an affordable housing
project described in Exhibit "A" and incorporated in this Agreement by reference. The parties have
approved this Agreement in an amount not to exceed $107,500, of which up to $7,500 will reimburse
City for staff time in implementing the Project. The parties have agreed that $100,000 will be used to
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implement the Project and to process applications from the citizens for funds under the Project. In
addition to the $100,000 funded by this agreement, the parties agree that the City will use any funds
left over from the previous agreement for this program, which expires on September 30, 2016, to
implement the Project and to process applications from the citizens for funds under the Project. The
funds provided under this agreement may not be used for any other projects or to reimburse the City
for any staff time which is unrelated to this Project. Any funds not used for the implementation of the
Project will be returned to the Corporation.
2. Reimbursement Process. The Parties agree that the Department will request reimbursement for
staff time on a quarterly basis. Requests for reimbursement shall be submitted to the Executive
Director of the Board. Reimbursement requests shall list the number of homebuyers who received
funds under the Project, the total number of applicants, the number of hours spent reviewing and
processing applications, and the hourly rate at which the staff time is charged. Reimbursement
requests containing all of the required information shall be processed within 30 days.
3. Quarterly Updates. At the Board's meeting following the end of each quarter, the Director of the
Department, or designee, will present an update on the program to the Board. The update will include
the number of loans processed, the number of applicants, and the number of hours spent reviewing
and processing loan applications during the preceding quarter.
4. Effective Date. The effective date of this Program Agreement is the date on which the City
Council grants approval to the Corporation for this Project, so long as all parties have executed this
Agreement.
5. Term. The term of this Agreement is from October 1, 2016 through March 31, 2017.
6. Termination. Either party may terminate this Agreement by giving at least 30 days' written notice
to the other of its intent to terminate. In the event of such termination, the City will be entitled to
reimbursement for any staff time spent reviewing and processing applications under the Project prior
to the effective date of the termination.
7. Amendments or Modifications. No amendments or modifications to this Agreement or to the
Project 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.
8. Notices.
a. Any required written notices shall be sent, certified mail, return receipt requested,
addressed as follows:
If to Corporation:
City of Corpus Christi Business and Job Development Corporation
Attn: President, R. Bryan Gulley
1201 Leopard Street
Corpus Christi, Texas 78401
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If to City:
City of Corpus Christi
Attn.: Director of Housing and Community Development Department
P.O. Box 9277
Corpus Christi, Texas 78469-9277
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 above.
9. Relationship of Parties. In performing this Agreement, the Corporation 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.
CORPUS CHRISTI BUSINESS &
JOB DEVELOPMENT CORPORATION
R. Bryan Gulley
President
Date:
ATTEST: CITY OF CORPUS CHRISTI
Rebecca Huerta E. Jay Ellington
City Secretary Interim Assistant City Manager
Date: Date:
APPROVED AS TO FORM:
-17Z1-e-f) 10//lp A ill (1116
Aimee Alcorn-Reed Yv' e Agui
Assistant City Attorney Assistant City Attorney
Attorney for Corporation Attorney for City Housing and Community Development
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City of Corpus Christi
Exhibit A
Corpus Christi Business and
Job Development Corporation
TYPE A Affordable Housing — Homebuyer Assistance Program
Guidelines for the Program and Criteria for Application
REVISED 09/01/16
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Corpus Christi Business and Job Development Corporation
TYPE A Homebuyer Assistance Program
Guidelines for the Program and Criteria for Application
I. Purpose
The purpose of the program is to expand affordable housing opportunities for low income homebuyers by providing
a deferred forgivable loan to be utilized for down payment assistance to buy down the purchase price of the home.
II. General Program Description:
The funding is available to qualified homebuyers for the purpose of providing down payment assistance a deferred
forgivable loan to buy down the purchase price of an affordable home. Affordable housing is any house with a
purchase price which does not exceed 95% of the Metropolitan Statistical Area as determined by HUD, which is
currently$162,000 for 2016.
The intent is to provide general terms/guidelines in order to accomplish the buy down of the purchase price to make
the home affordable for households with incomes in the 80% of median income ranges (see Attachment A, 80% of
Median Income Chart).
The funding will be in the form of a deferred forgivable loan for up to$10,000.
The term of affordability will be 5 years.
The loan will be amortized over the specified affordability period, commencing on the closure date, and forgiven at a
rate of$2,000 per year for every year the homebuyer lives in the house. Should the homebuyer move out before the
affordability period ends, then the remaining period will be prorated and must be paid back. Recapture provisions
require repayment of the total loan amount on a prorated basis. If the buyer sells the property within the affordability
period, the balance of the amortized loan shall be due and payable. The funding is available on a first come, first
serve basis.
III. Housing Standards:
The home must pass a Housing Quality Standards(HQS)inspection, which is conducted by HCD staff. If the
house was build prior to 1978, a lead based paint test inspection will be required in accordance with HUD Lead
Based Paint Regulations.
The house cannot be located in a 100 year flood plain. Per 24 CFR Part 55: Properties located within the 100 year
floodplain are vulnerable to a 100-year flood, and a 1 percent chance of a flood occurring every year.
IV. Homebuyer Eligibility:
Prospective homebuyers shall meet the gross annual income limits adjusted for family size as determined by HUD
(see Attachment A). The Housing and Community Development Department (HCD) will determine the applicant's
anticipated annual gross income. Anticipated annual gross income is an estimation of future income a purchasing
household expects to receive based upon their current and future monthly income annualized over a 12 month period.
Some examples of future income are bonuses,pay raises, commissions or over time.
Homebuyers must attend a HUD approved Homebuyer/Homeownership class to obtain a Homebuyer Education
Certificate.The certificate cannot be older than one year from the date of issue, and cannot be obtained from an
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online class. If two or more persons are buying a home together, all must attend a class and provide a copy of the
Homebuyer Education Certificate.
HUD Approved Housing Counseling Agencies can be found here:
http://www.hudl.qov/offices/hsg/sfh/hcc/hcs.cfm
The purchasing household size will be determined by the Housing and Community Development Department using
HUD's definition of purchasing household. Purchasing household includes all persons who will be occupying the units
as their permanent residence. A member of a household is considered to a permanent member of the household if
they have been living as a member of the household for at least six months or more.
Homebuyer's cash on hand cannot exceed program limits.
Housing and Community Development will make a determination of eligibility at the time the mortgage lender
submits the required documents listed in section (V. Lender Requirements)below.
The homebuyer will be issued a Commitment Letter review and approval of all required submitted documents.The
Commitment Letter will expire 6 months from the date of issuance. At the time of application, the homebuyer
cannot have ownership in any property.
The housing ratio("front end ratio")must fall between 28%-32%
The total debt ratio("back end ratio") may not exceed 45%
V. Lender Requirements:
The Lender will be required to submit the following to HCD:
o Loan Estimate Form
o Lender pre-qualification
o Signed and dated 1003
o Escrow Earnest Money Contract(sales price cannot exceed$162,000)
o Three months of the most recent bank statements
o Paycheck stubs for past 3 months
o Government issued identification for all purchasing household members
o Copy of social security card of all members of the household
o Copy of the Homebuyer Education Certificate (no older than one year from date of issue)
o Underwriter Summary(1008)—to be provided prior to HCD issuing the Commitment Letter
o Title Commitment showing the 1st and 2nd Liens(upon final loan approval)
o Closing Disclosure (upon final loan approval)
VI. Title Company Requirements:
HCD will give the approval for closing and will wire funds to the Title Company.
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The Title Company will provide to HCD the original signed promissory note, the recorded City of Corpus Christi
Deed of Trust, Recorded Warranty Deed, Final signed Closing Disclosure, Insurance Binder which shows all liens,
and the Title Policy which shows HCD as a lien holder.
The Title Company will be responsible for ensuring that all documents are complete and correct.
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INCOME LIMITS (80% of MEDIAN INCOME)
FAMILY SIZE 1 2 3 4 5 6 7 8
ANNUAL INCOME 32,500 37,200 41,850 46,500 50,250 53,950 57,700 61,400
Revised 3/28/2016*Income limits are established by HUD and are subject to change without notice
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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: Legistar Number: 16-1376
January 24, 2017
Agenda Item:
Resolution approving an agreement between the Corpus Christi Business and Job Development
Corporation and the City of Corpus Christi for the Type A Affordable Housing Program —
Homebuyer Assistance Program in the amount of $107,500 and authorizing the City Manager
or Designee to execute said agreement.
Amount Required: (Amount to be Certified) $ 107,500
Fund Name Accounting Unit Account No. Activity No. Amount
General Fund
Affordable Housing 1140-15000-132 530000 N/A $107,500
Program
Total $107,500
❑ Certification Not Required
Director of Financial Services
Date:
JAN 2 3 2017