HomeMy WebLinkAboutC2005-235 - 4/26/2005 - ApprovedAFFORDABLE HOUSING PROGRAM AGREEMENT
NUECES COUNTY COMMUNITY ACTION AGENCY
This Affordable Housing Program Agreement ("Program Agreement") is entered into between the
Corpus Chdsti Business and Job Development Corporation ("Corporation"), the City of Corpus Chdsti
("City"), and Nueces County Community Action Agency ("NCCAA"), a non-profit corporation
organized under the statutes of the State of Texas.
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vemon'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 Chdsti 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, NCCAA submitted a proposal to the Board to request grant funds for families for
mortgage buy-down;
WHEREAS, the Board has determined that it is in the best interests of the residents of the City of
Corpus Christi that NCCAA be awarded affordable housing funds, by execution of this Program
Agreement, to accomplish the affordable housing project described in this agreement and in NCCAA
proposal
In consideration of the covenants, promises, and conditions stated in this Program Agreement,
the Corporation, NCCAA and the City agree as follows:
1. Program Agreement to Implement Affordable Housing Project. This Program Agreement
between the Corporation, the City, and NCCAA is executed to implement the promotion and
development of an affordable housing project proposed by NCCAA in response to the Board's
request for proposals ("Project Response"). The Project Response submitted by NCCAA, dated
February 3, 2005 regarding $210,000 Grant application for the NCCAA Down Payment and Closing
Costs Assistance ("Project") is attached to this Program Agreement as Exhibit C and is incorporated
in this Program Agreement hv reference.
2005-235
04/26/~5
Res0262~0
(TCBJDC
2. 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
Program Agreement.
3. Term. The term of this Program Agreement extends twelve (12) months from the date the last
party executes this document.
4. Services to be Provided by City.
a. The City, through the City's City Manager or his designee ("City Manager"), shall administer
funding and perform contract administration responsibilities, as outlined in this Program
Agreement, for the Corporation.
5. Services to be Provided by NCCAA.
a. NCCAA shall provide down payment and closing cost assistance for the purchase of a
new home in their CAP Estates II subdivision in Corpus Christi, Texas as described in its
Project and pursuant to definition of "affordable housing" found in Title 42 of the United States
Code, Section 12745, in accordance with the requirement in the Texas Development
Corporation Act of 1979 Each home shall contain three bedrooms, two bath, one car garage
masonry home with approximately 1086 square feet of living area, with total sale price,
including lot, at or below $801000.
b. Eligible homebuyer ("Homebuyer") may receive a zero percent forgivable loan of
$15,000 to $20,000 of the funds provided under this Program Agreement for down payment
and closing costs to purchase a home described in this section. For each year that the
Homebuyer occupies the home as his or her primary residence, one thousand dollars of the
loan shall be forgiven, to be prorated monthly. NCCAA shall require Homebuyers who
receive the funds provided under this Program Agreement to execute the Real Estate Note
and Deed of Trust attached as Exhibits A and B to secure repayment of outstanding loan
amount to Corporation in the event the home is sold or transferred and an outstanding loan
amount is due. NCCAA shall file the original executed documents in the official public
records of Nueces County. After recording, NCCAA must ensure that the original executed
and filed documents are returned to the Corporation.
c. Prior to the distribution of funds provided under this Program Agreement, NCCAA must
coordinate with the Director of the City's Neighborhood Services Department or the Director's
designee ("Director") to review the anticipated purchase transaction as it pertains to eligibility,
location and amount. The Director shall confirm execution of the documents attached as
Exhibits A and B prior to release of funds. The Director may authorize modifications to
Exhibits A and B to accomplish purpose of this Program Agreement.
d. NCCAA shall provide homeownership counseling to all qualified Homebuyers of homes
purchased with funds provided under this Program Agreement.
e. NCCAA shall recruit potential homebuyers for housing ownership to be constructed as
affordable housing pursuant to this Program Agreement. NCCAA shall ensure that each
potential homebuyer's family qualifies as a Iow-to-moderate income family in accordance with
Federal, State and City housing laws, rules, and regulations.
6. Payment of Funds.
The Corporation authorizes the City to provide, from allocated sales tax revenues, up to
$210,000 for down payment and closing costs for eligible homebuyers pursuant to this
Program Agreement. Eligible homebuyers may qualify under this Program Agreement for a
forgivable loan between $15,000 to maximum of $20,000, based on income guidelines
provided by the City Neighborhood Services Department.
Any funds provided by the Corporation under the provisions of this Program Agreement are
subject to the receipt of sales taxes, by the City, from the Office of the Comptroller of the
State of Texas and payment of the sales taxes to the Corporation by the City.
Payment of the funds will be made by the City directly to the title company or mortgage
company involved in the closing transaction. Supporting documentation, such as closing and
settlement forms, must be provided to the C~ Director by NCCAA prior to processing a
request for loan.
7. Documentation and Reports.
NCCAA shall maintain all documentation relating to the receipt and expenditure of the funds
provided under this Program Agreement for a period of three years following the expiration of
this Program Agreement or for such longer period as may be required by federal or State law.
Additionally, NCCAA shall keep records that document the provision and extent of home-
buyer counseling that was provided to each qualified homebuyer. Each counseling record
must be signed by the homebuyers and NCCAA upon the completion of counseling.
NCCAA shall provide access to all records, documents, reports, and audits, regarding the
funded activity under this Program Agreement, dudng regular business hours, for the purpose
of inspection and copying by the City Manager. Furthermore, NCCAA shall provide to the
City Manager any information pertinent to this Program Agreement, as may be requested
during the term of this Program Agreement.
NCCAA shall submit a performance report ("Report") to the City and the Corporation at least
once each quarter and a final Report within 30 days of the expiration of this Program
Agreement. The Report must contain all relevant details pertaining to the lot and home
purchases and include any supporting documentation required to substantiate the wdtten
narrative contained in the Report.
8. Amendments or Modifications. No amendments or modifications to this Program 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.
9. Severabllity.
If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of
this Program Agreement or the application of this Program Agreement to any person or
circumstance is, to any extent, held illegal, invalid, or un-enforceable under present or future
law or by a final judgment of a court of competent jurisdiction, then the remainder of this
Program 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 Program Agreement that
every section, paragraph, subdivision, clause, provision, phrase, and word of this Program
Agreement be given full force and effect for its purpose.
To the extent that any clause or provision is held illegal, invalid, or unenforceable under
present or future law effective dudng the term of this Program Agreement, then the remainder
of this Program 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 Program Agreement automatically.
10. Compliance with Laws. NCCAA shall comply with all applicable federal, State, and local
government laws, rules, regulations, and ordinances which may be relevant to NCCAA's performance
under this Program Agreement.
11. Jurisdiction and Venue.
a. This Program Agreement will be governed by and construed in accordance with the laws of
the State of Texas.
b. All actions brought to enforce compliance with this Program Agreement must be brought in
Nueces County, Texas, where this Program 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 Program Agreement. By NCCAA's execution of
this Program Agreement, NCCAA agrees to be bound by the terms, covenants, and conditions
contained in this Program Agreement. Any ambiguities in this Program Agreement may not be
construed against the drafter.
13. Indemnity. NCCAA 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
"lndemnitees") 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 de-fects, workers' compensation, and death claims) or
property loss or damage of any kind whatsoever which arise out of or are in any
man-ner connected with, or are claimed to arise out of or be in any way
connected with, either proximately or remotely, wholly or in part, any activities
by NCCAA, its officers, employees, agents, members, invitees, or independent
contractors with respect to this Program Agrccment or the Project that is the
subject of this Program Agree.ment, 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. NCCAA
covenants and agrees that if lndemnitees, or any of them, are made a party to
any litigation against NCCAA or in any litigation commenced by any party other
than NCCAA relating to this Program Agreement or Project, NCCAA shall, upon
receipt of reasonable notice regarding commencement of litigation, at its own
expense, investigate ali claims and demands, attend to their settlement or other
disposition, defend Indemnitees in ali 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. Wan'anties. NCCAA warrants and represents to Corporation the following:
a. NCCAA is a corporation duly organized, validly existing, and in good standing under the
laws of the State of Texas, has all corporate power and authority to carry on its business as
presently conducted in Corpus Chdsti, Texas.
b. NCCAA has the authority to enter into and perform, and will perform, the terms of this
Program Agreement.
c. NCCAA 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 Program Agreement.
d. NCCAA has received a copy of the Texas Development Corporation Act of 1979, Art.
5190.6. Vemon's Texas Revised Civil Statutes. and acknowledges that the funds granted in
this Program Agreement must be utilized solely for purposes authorized under State law and
by the terms of this Program Agreement.
e. If an audit determines that the funds were not used for authorized purposes, NCCAA
agrees to reimburse Corporation for the sums of money spent for purposes not authorized by
law within 30 days wdtten notice requesting reimbursement..
f. The parties executing this Program Agreement on behalf of NCCAA are duly authorized to
execute this Program Agreement on behalf of NCCAA.
15. Events of Default. The following events constitute a default of this Agreement:
a. Failure of NCCAA to timely, fully, and completely comply with any one or more of the
requirements, obligations, duties, terms, conditions, or warranties of this Program Agreement;
b. The Corporation or City determines that any representation or warranty on behalf of
NCCAA contained in this Program Agreement or in any financial statement, certificate, report,
proposal, or opinion submitted to the Corporation in connection with this Program Agreement
was incorrect or misleading in any matedal respect when made;
c. Any judgment is assessed against NCCAA or any attachment or other levy against the
property of NCCAA with respect to a claim remains unpaid, undischarged, or not dismissed for
a pedod of 30 days.
d. NCCAA makes an assignment for the benefit of creditors.
e. NCCAA files a petition in bankruptcy, or is adjudicated insolvent or bankrupt.
f. If taxes on property owed by NCCAA become delinquent, and NCCAA fails to timely and
propedy follow the legal procedures for protest or contest.
g. NCCAA 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 NCCAA is in default according
to the terms of this Agreement, the Corporation or City shall notify NCCAA in wdting of the event of
default and provide 60 days from the date of the notice ("Cure Pedod") for NCCAA to cure the event
of default.
17. Results of Uncured Default. After exhausting good faith attempts to address any default dudng
the Cure Pedod, and taking into account any extenuating circumstances that might have occurred
through no fault of NCCAA, 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 Pedod:
a. NCCAA shall immediately pay 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 Pedod
until fully paid, all funds not used in accordance with this Program Agreement.
b. NCCAA shall pay Corporation reasonable attomey fees and costs of court to collect
amounts due to Corporation.
c. The Corporation shall have no further obligations to NCCAA under this Program Agreement
and this Program Agreement shall terminate.
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
Program Agreement, constitutes a waiver of any subsequent breach of the covenant or
condition of the Program Agreement.
b. No waiver of any covenant or condition, or the breach of any covenant or condition of this
Program Agreement, justifies or authorizes the nonobservance on any other occasion of the
covenant or condition or any other covenant or condition of this Program Agreement.
c. Any waiver or indulgence of NCCAA default may not be considered an estoppel against the
Corporation.
d. It is expressly understood that if at any time NCCAA is in default in any of its conditions or
covenants of this Program Agreement, the failure on the part of the Corporation to promptly
avail itself of the dghts 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 dghts
or remedies or elect to terminate this Program 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 NCCAA:
Nueces County Community Action Agency
Attn: Executive Director
4760 Old Brownsville Road
Corpus Chdsti, Texas 78405
If to Corporation:
City of Corpus Chdsti Business and Job Development Corporation
Attn: Executive Director
1201 Leopard Street
Corpus Christi, Texas 78401
b. A copy of all notices and corTespondence must be sent to the City at the following address:
City of Corpus Chdsti
Attn.: City Manager
P.O. Box 9277
Corpus Chdsti, Texas 78469-9277
c. Notice is effective upon deposit in the United States mail in the manner provided above.
20. Incorporation of other documents.
The Corpus Chdsti Business & Job Development Corporation 4a Board Affordable Housing
Request for Proposals issued October 22, 2004 is incorporated into this Program Agreement.
21. Relationship of Parties. In performing this Agreement, the Corporation, NCCAA 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. NCCAA may not assign, mortgage, pledge, or transfer this Program
Agreement or any interest contained in this Program Agreement without the pdor written consent of
the other parties to this Program Agreement.
23. Non-discrimination. NCCAA may not discriminate nor permit discrimination against any person
or group of persons on the grounds of race, gender, disability, religion, age, or national odgin in any
manner prohibited by the laws of the United States or the State of Texas. 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 Program Agreement are for convenience only and are not a part
of this Program Agreement. The captions do not in any way limit or amplify the terms and provisions
of this Program Agreement.
25. Entire Agreement. This Program Agreement and the referenced and incorporated documents
constitute the entire agreement between the Corporation, the City, and NCCAA for the purpose
stated. All other agreements, promises, representations, and understandings, oral or otherwise, with
reference to the subject matter of this Pro-gram Agreement, unless contained in this Program
Agreement, are expressly revoked, as the parties intended to provide for a complete understanding,
within the provisions of this Program Agreement and its referenced and incorporated documents, of
the terms, conditions, promises, and covenants relating to the each party's required performance
under this Program Agreement.
CORPUS CHRISTI BUSINESS &
JOB DEVELOPMENT CORPORATION
Signatur~
Printed name:
Date: ,~-"-~ l~--O ~'-
STATE OF TEXAS §
COUNTY OF NUECES §
ACKNOWLEDGMENT
KNOW ALL BY THESE PRESENTS:
Th~ instrum,er~t w~s.acknowledged before me on ~,,'t,~_ ~-~ t ~ ,2005, by
(/.-7..-f I t9"~ ~L ~-,"9~¢-v-,,. as the (' .J~',~,:.-',~J~ '~ .-~ & c~--'.- (title) of the Corpus Christi Business
and Job Development Corporation, a Texas nonprofit corporation, on behalf of the corporation.
Armando ~hapa
City Secretaw
Date: ~' /'¢'-"y'/¢:
NOTARY PUBLIC, State of Texas
CITY OF CORPUS CHRISTI
City MaT'~ger
Date: ~'/~
APPROVED AS TO FORM:
Lisa Aguilar /z 1
Assistant City AttOrney
for the City Attorney
NUECES O~UNTY COMMUNITY ACTION AGENCY
Sig at~.~r~ ~ Title
Date: L~' . ~.. / ~ ¢~
ACKNOWLEDGMENT
STATE OF TEXAS §
§ KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES §
This insJrument was acknowledged before me on ~2--f~ ~.-/ , 2005, by
~ ,~c. /'"~2r,~',,~.. asthe /'-.x.~C~,~z-~#~'?--j~ ~'~'~,z--~,,-' (title) of the Nueces County Community Action
Agency, a Texas nonprofit corporation, on behalf of the corporation.
/,(DTARY PUBLIC, State of Texas
EXHIBIT A
REAL ESTATE NOTE
Date:
Maker:
Maker's Address:
Payee: CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION
~o City of Corpus Chdsti, 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%)
Term of this Note shall be 15 years if the amount ranges $15,000 to $15,999; 16 years if the
amount ranges $16,000 to $16,999; 17 years if the amount ranges $17,000 to $17,999; 18 years if
amount of loan ranges from $18,000 to $18,999; 19 years of the amount of loan ranges $19,000 to
$19,999, and 20 years if amount of loan ranges $20,000 to $20,999.
Terms of payment:
This Note shall be due and payable in approximately (__.) monthly
installments, each being in the amount of of the principal amount set forth above. The
first of said monthly installments being due and payable on the date of closing, and the remaining
installments shall be due in consecutive order thereafter on the same day of each and every
succeeding month.
Provided, however, that for each month Maker occupies the properb/ described herein as
Maker's principal residence during the term of this note, the monthly installment due herein shall be
waived and forgiven by payee, and Maker shall not be required to pay such monthly installment.
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.
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 and provisions of the Real Estate Note, shall at the option of the
holder hereof, at once mature the whole of this note, without notice.
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 owing hereon, shall be added to the same as reasonable and necessary
attorney's fees in addition to court costs.
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.
Each maker is responsible for the entire amount of this note.
This note is secured by Deed of Trust covering the following described property situated in
Nueces County, Texas, to wit:
MAKERS
EXHIBIT B
DEED OF TRUST
Date:
Grantor:
Grantor's Mailing Address (including county):
Corpus Chdsti, Nueces County, Texas 784
Trustee: Mary Kay Fischer, City Attorney, 1201 Leopard Street, Corpus Christi, Texas 78401
Beneficiary: Corpus Christi Business and Job Development Corporation
Beneficia~'s Mailing Addreas (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:
Payee: Corpus Chdsti Business and Job Development Corporation
Final Maturity Date: Due upon eadiest of following events: (1) sate or transfer of
property, or (2) Grantor(s) cease to occupy property as principal residence.
Terms of Payment: As therein provided
Property (including any improvements):
Prior Llen(s)(including recording information):
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 shall have no further
effect, and Beneficiary shall release it at Grantor's expense.
GRANTOR'S OBLIGATIONS
Affordable Housing - Miramar Homes.doc
Page 13 of 17
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 priodty 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; and
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; and
8. if this is not a first lien, pay all prior lien notes that Grantor is personally liable to pay and
abide by all pdor lien instruments.
9. Principal residence requirement: Grantor agrees to occupy the property described herein as
Grantor's pnncipal residence. As used herein, "principal residence" means a home which,
depending upon all of the facts and circumstances (including the good faith of the occupant) is
occupied primarily for residential purposes by Grantor. 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 t'rffeen percent [15%] of the total floor space in
a trade or business). Grantor agrees to submit annual recertification, in a form prescribed by
Beneficiary, to the Beneficiary to evidence Grantor's occupancy in accordance with the
provisions hereof. Grantor further agrees to notify Beneficiary immediately ~f 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 therein, 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 wdting a substitute or successor trustee, succeeding to all
dghts 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 et[her 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;
A~'ordab~e Housing - Miramar Homes.doc
Page 14 of 17
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; and
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 hereby, or any interest in the
property covered hereby, 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.
Truetee'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; and
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; and
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.
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 shall remain 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 shall
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 such sums to reduce the note. Beneficiary shall 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. Leases are not assigned. 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. Grantor will 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. If
Grantor defaults in payment of the note or performance of this deed of trust, Beneficiary may
Alfordable Housing - Miramar Homes doc
Page 15 of 17
terminate Grantor's license to collect and then as Grantor's agent may rent the properly if it is
vacant and collect all rent and other income and receipts. Beneficiary neither has nor assumes
any obligations as lessor or landlord with respect to any occupant of the property. Beneficiary
may exercise Beneficiary's dghts and remedies under this paragraph without taking possession
of the property. 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. 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. 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 shall not exceed the maximum amount
of nonusurious interest that may be contracted for, taken, reserved, charged, or received under
law; any interest in excess of that maximum amount shall be credited on the principal of the
debt or, if that has been paid, refunded. 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. This provision overrides other provisions in this and all other
instruments concerning the debt.
9. In the event the property described herein is subject to prior liens in favor of third parties,
any default under any prior lien instrument shall be a default hereunder.
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 shall bind, inure to the benefit of, and be exercised by successors in
interest of all parties.
13 The note secured hereby evidences funds advanced for a portion of the purchase price
of the property described above and is additionally secured by a vendor's lien on same.
14 Upon the sale, rent, or change of ownership of the herein described property for any
reasons or by any means or upon the death of the Makers of the Real Estate Note(s) secured
hereby, the entire principal and appropriate interest of the Real Estate Note(s) 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. The Executive Director of
the Corpus Christi Business and Job Development Corporation may waive this requirement
upon the written request of the Makers of the Real Estate Note(s) or their heirs, or successors
and assigns. 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
,2005 A.D.
Name:
Name:
Alfor~able Ho~,ing - Miramar Homes.doc
Page 16 of 17
STATE OF TEXAS
COUNTY OF NUECES
This instrument was acknowledged before me on the
day of
, 2005, by
Notary Public, State of Texas
STATE OF TEXAS
COUNTY OF NUECES
This instrument was acknowledged before me on the
day of
, 2005, by
Notary Public, State of Texas
AFTER RECORDING RETURN TO:
Corpus Christi Business and Job Development Corporation
c/o Ci~ of Corpus Christi Economic Development Office
P. O. Box 9277
Corpus Chdsti, Texas 78469
AI/ordable Housing - Miramar Hemes.doc
Page 17 of 17
NUECES COUNTY
COMMUNITY ACTION AGENCY
4760 Old Brownsville Rd. Corpus Christi, Texas 78405 (361) 883-7201 FAX: (361) 883-9173
Joe A. Martlnez
Execu [ivc Director
February 3, 2005
City Secrotary's Office
City of Corpus Christi
Attention: Armando Chapa, City Secretary
1201 Leopard Street
Corpus Christi, Texas 78469-9277
RE: 4A Board Affordable Housing Request for Proposals (RFP)
$210,000 Grant Application for the NCCAA Down Payment
and Closing Costs Assisxance
Dear Mr. Chapa:
Enclosed please find an application for consideration of funding in response to the 4A
Board Affordable Housing Request for Proposals (RFP).
Nueces County Community Action Agency (NCCAA) is requesting a $210,000 Grant
for down payment and closing costs assistance to assist 12 Iow-income families. This
proposal, as submitted, includes a partnership between the NCCAA, Neighborhood
Reinvestment Corporation (NRC), City of Corpus Christi Community Development
Corporation (CDC), the City of Corpus Christi Business and lob Development
Corporation (4A Board), and the City of Corpus Christi HOME Inveatmem Partnership
Program (HOME).
If awarded, NCCAA will use 4A funds to provide affordable housing opportunities to
low-income, working families. NCCAA will prepare Iow-income families for
homeownership by providing homebuyer education and counseling services through its
Home. buyer Education Program. NCCAA will implement its Affordable Housing Project
(AHP) in three phases~ During its first phase, NCCAA will increase the affordable
housmg stock in Corpus Christi, Texas, by forty-two (42) units. During its second and
third phase, NCCAA will increase the affordable housing stock by twenty-seven (27) and
thirty (30) units, respectively.
NCCAA will facilitate new home construction. NCCAA will offer at a minimum four
different floor plans. Qualifying families can purchase 3-bedroom masonry homes.
Homes will average 1,400 square feet. All homes are adaptable for p~sons with
disabilities and will be constructed in CAP Estates II. When completed~]~AA_will ..
leverage over $5.35 million in public and private financing and provide 99 low-income,
working families with homeownership opportunities.
We anticipate that this application is in order for your agency's review. If you should
require additional information or have any questions in reference to this submission,
please contact me at 883-7201, Extension 21, or via E-Mail at )am@~nccaatx. org. In my
absence, please contact Mr. Rodolfo Cantu, at 883-7201, Extension 33, or via E-Mail at
rc.4ultu~ec~tx, org
Respectfully,
Enclosure
I~1~,~ jgcommunity
V/iction.
TABLE OF CONTENTS
REQUEST FOR PROPOSALS
4A BOARD AFFORDABLE HOUSING
I Executive Summary
II Qualifications and Experience
HI. Capabilities
IV. Acknowledgmem and Certifications
V Narrative Explaining the Assistance
VI. Attachments: Disclosure of Interests
To address the shortage of affordable housing within the City of Corpus, Texas, tl~ Nueces Cotmty
Community Action Agency {NCCAA) mque~s $210,000 grant in 4A funds from the City of Corpus
Christi for down payment and cloalng costs assistance to assist 12 Iow-income f~milies. NCCAA has
anquir~ a 20.24-acre tract in soathwesl Corpus Christ/. Lrn:al~ at Holly anti Martin Str~s, ~
ummproved tract will provide a tolal of 99 single-family lots for affordable bousmg. When complcn~[,
NCCAA will leverage over $5.3 nulliou m public and private financing a.c~ provide 99 low-income,
working families with bomeownerslmp oppommities
NCCAA, m parmership with Neighborhood Remvestment Corporanon CNRC) and the City of Corpus
Christi, will u'nplement the Affordable Housing Project (AHP) m three pha. s~. During its first phase,
NCCAA will increase the affordable housing stock in Corpus Christi, Texas, by forty-two (42) units.
Dm-rog its second and third phase, NCCAA will mcrea~e the affordable honsmg stock, by twr~uty-s~ven
(27) and thirty (30) units, respeaively
Under the proposed mit/at/ye, NCCAA vail measure its success through the following benchmarks.
· Provide homeownership opportuint/es to 99 low-income fanulies earning less than 80% oft. he area
median me (AMB adjusted for fatmly size;
· Provide over 792 hours ofhomebuyer education and homeownership cotmselmg;
· Provide new home con.st, mc. non, mfiastru~e, and land development; and,
· Leverage over I;5 3 tm/lion in public and private fmancmg
Mi&vion Stwtement & Background
Formed in 1964, NCCAA is a 501 c(3) nonprofit corporatson. NCCA. A's rmss~on is to unprove the
qnality oflLfi~ through advocacy, cornmmnent of resources and delivery of services. NCCAA offers
obverse products and services to the resicka~ts of Nueces County including education, family service
asskUtance and community developmem activities As a nonprofit housing provider, NCCAA provides
land development services and new home construction to low-income families who do not qualify_ for
conventaonal home loans NCCAA also provides homebuyer exlucat/on and ancillary services including
but not limited to, emergency shelter, Section 8 Rural Voucher Program, and weatherization.
NCCAA is one of fort),-five (45) com~umty action agencies administering a variety of programs in 239
0fthe 254 courmes m Texas; NCCAA serves residents of Nueces County.. NCCAA is certified byrhe
State of Texa~ and City of Corpus Christi as a Comrnumty Housing Development Organi?,afion (CHI)O)
Most recently, NCCAA received its certification as an affiliate ofNeighborWorks~ - a program of the
Neighborhood Reinvestment Corporation (NRC). As an affiliate ofNeighborWorks, NCCAA will
increase its capacity to build decent, affordable housing, revitalize commUmties, and enhance economic
oppormmties.
NCCAA's Management & Governance
A 27-member board of directors governs NCCAA. NCCAA board of directors sets the trine and direction
of NCCAA's work by eslabli~hing broad policy priorities. The board members represent the public and
pnvate sectors, including lead-rs from banks and nonprofit experts. Boant members represent Vanons
low-income areas ofNucees County~ NCCAA staff-has extensive experience in successfully undertaking
affordable housing projects. NCCAA's staffhas over 72 years of combined experience in the are~.s of
construct/on, land development, financial management, loan facilitation, portfolio management and real
e.s~te finance. NCCAA's hotlslllg development team is directly respous~ble for establishing strategies to
tmplement its housing program
Produets & Services
Under its Affordable Houstng Project (AHP), NCCAA will pro'nde an array of housing services to
facilitate home ownership for low-income working faxm[ies. NCCAA will provide and facilitate the
following products and services:
· Homebuyer education and coansehng program
· Residential subdivision development
· New home construction
Market.for Affordable Homes
l~ March 2003, the Nueces Count).' Commum~, Action Agency retained BBC Research & Consulting
(BBC) to perform a comprehensive market analysis of a proposed affordable single-family development
in southwest Corpus Christi. The report idenUfied several factors that support the development of
NCCA_A's proposed projects. Below is a brief overview of the findings.
· BBC's remew of demographic data found Corpus Christi to be a slow to moderate growth
commumty, with income growth outpacing inflation.
· Local economic development officials indicated that there are 6,000 unfilled jobs in Corpus
Cb. rim.
· Numerous indixaduals interviewed by BBC described a "hot housing market" tn Corpus Christi.
· Rental vacancy rates are below 5 percent in both the local tnarket area and in the city as a wbole,
and waJting lists for subsichzed units can extend as long as 18 months.
· Over 17,300 household ciD~vade, and 2, 100 households tn the market area earn incomes that are
m the taxget range of the proposed project
· The proposed site has a number of strengths and very few weaknesses from a deraaad standpoint
tncludmg, well developed transportation, infrastructure, plentiful neaxby apartment opportunities,
an average crane rate, high quality schools, and low to average tax levels.
· The Corpus Clmsti housing market appears to support development of NCCAA's proposed
project Interview' comments, Census data and local data all generally support construction of the
proposed umts
Leverage Amounts from Private Sources
NCCAA will provide seed f'ttnding ['or projects which NCCAA's Development Team considers feasible
and idem/fled by the commUmty as a priority Eligible uses will mcinde, but axe not limitad to,
predevelopment including soft and hard costs, land aequisihon, cotmtruction and down paymeaxt
assistance. The goal of NCCAA is to improve the living condFaons of low-inCOme families residing in
Corpus Christi.
NCCAA will use 4A funds to leverage additional public and private resources. NCCAA has committed
$6,000 towaxds the development of CAP Estates II. The folloWing private sources have committed
resources for the development of the proposed affordable housing project - CAP Estates Il.
Neighborhood Remvestment Corporation (NRC) - $150,000
Corpus Christi CommUmty Development Corporation (CDC) $342,000
City of Corpus Christi HOME Funds - $556,604
Econ omi: Impact
To determine the econormc mapact ofa 4A grant, the Universxty of Texas - Pan American Data and
lnformalaon Systems Center (DISC) utilized the IMPLAN input-output economic modeling system to
est. anat¢ the total econormc imp:mt derived from the development of CAP Estates I1. Calculations axe
based on a sample of 99 families earning an average median income of $37,600 and residing in CAP
Estates II. The total annual economic impact is esmnated to be over $6.2 million.
Propa~al &thmiatd to tl~ City of Corpus
Attention: Mr~ Armando Chapa. Cay Secrtnary
Subrnitmt February 3, 2005
Page I
Forrac~l m 1964, the Nucees Commumty Action Agency's (NCCAA) is a 501c(3) nonprofit corporal/on.
NCCAA's mission is to m~prove the quality of life through arlvocalcy, cormmtment of resources and
delivery of services. NCCAA offers obverse products and services to the residents of Nueces County
InCluding ecincatic~ family sermce assistax~e and COtluuamty development activifes. As a nonprofit
housing providm-, NCCAA provides land development services and new home conslructien for low-
income familie~ who do not qualif-y for conventional home loans. NCCAA also provides homebuyer
educa~o~ and housmg related sor~nces including but not limited to, emergeaey shelter, Se~aen 8 Rural
Voucher Program. and weathenzaXion. Below is a brief overview of programs currently being provided
by NCCAA.
Community Services - Under its commumty sennces, NCCAA meets the individual needs of low-
income families by offcamg various programs and serwces. The services delivery plans in place have
different components which include imake and ehgibility, Comprehenmve Energy Ass~Xnce Program
(CEAP), Commumty Serwces Block Grant (CSBG), and Federal Emergency Management Assistance
(FEMA) which provides emergency food, shelter and r~tal ass~tanco, nota~ public services,
ufformaaen and referral and outreach. In addition, NCCAA administers the Section 8 Rural Voucher
Program and WaatheriTatien Assistance Program through a contra~ with the Texas Deparm~ent of
Housing and Commttmty Affairs (TDHCA).
Comprehensive Energl, Assistance Program (CEAt9 - The Comprehcasive Encngy Assistance
Prograxn (CEAP) assists low-income persons experiencing difficulties m paying their energy
expenses. Its primary goals include: (i) promote self-sufficiency; (ii) prowde relief for energy
expenses; and (iu) assist in an energy reht~ crisis. Income ebgible households with the lowest
incomes and who pay a high portion of their income in energy costs receive priority. Ehgible
applicants must demonstrate a need for home energy assistance and nmet income guidelines.
Under the CE/M?, NCCAA has assisted over 3,000 families annually
Home Buyer Assistance Program- NCCAA's Home Buyer Assistance Program is designed to
assist low- and moderate-income households with down payment and closing costs to purchase a
home. The asststanco is m the form of a zero-interest deferred payrnem loan. To date, NCCAA
has provided over $]. 1 milhon in assistance to over 64 families to become homeowners.
Information & Referral NCCAA provides information a~d referral to inform the public on
existing resources and refers pamcipants to the respective agencies (ie., local, stat~, federal or
nonprofit agencies) as indicated by the needs of the individual and/or farmly. The referral may
include providing, assistance to the participant in completing applications for other types of
Section 8 Rural Voucher Program - Under the NCCAA's Section 8 Rural Voucher Program,
NCCAA issues a voucher to income-qualified household, which then finds a umt to rent. Since
the rental assistance is provxdecl on behalf of the farmly or individual, participants are able to find
and lease privately owned housing, including single-fatmly homes, townhouses, and aparlxnents.
The participants are free to choose any housing that meets the requirements of the program and
are not limited to uSUts located m subsidized housing projects.
Propo~at Snl~tted to the City of Corp~ Chrixti
Artentl'on: Mr. Armmado Chapo, Clty Secretary
S~bmitted Febr'~,ary 3, 2005
P~e2
If the unit meets the Section 8 health and safety slanda~ls, NCCAA then pays the landlord the
amount equal to the difference between 30 percent of the tenant's adjusted income (or 10 percent
of the gross income) and the housing authority d~termmed payment standard for the area. Thc
rent must be reasonable compaxed w~th similax ,m~.~sisted umts. NCCAA ks currently
adminigtering e~ght (8) Seclaon 8 vouchers for low-income famihes.
Weatherlzation - Through its weatheriTation program, NCCAA assists low-mcomc households
create a healthful dwelling envxroment by nUPlementing praCacable energy conservalion
pmOaces in their homes and modffic~tions to the home. Modificataons to the home include wall,
floor, window, and door inSUlations, water saving devices and efficient incandescent lighting
bulbs. NCCAA also provides appliances such as refrigerators, ranges, water heaters, hQ/ers,
furnaces, and air conditioners WeathenZation target~ the elderly and handicapped, and assists
persons least able to afford high-energy costs. Annually, NCCAA assists an average of 120
/hlmlies through its weatherization program.
Early Head Start & Head Start - Funded by the U.S. Department of Health and Human Services, Early
Head Start is the largest childcare program for expectant mothers (pre-natal) and children under 3 years
of age. NCCAA currently operates four (4) Early Head Start centers and serves over 100 children and
nme'rous low-income mothers The four Early Head Start centers axe located m Corpus Christi and
Robsmwn.
For ckildren between the ages of 3 and 5, NCCAA offers the Head Start Program. The goal of the Head
Start Program is to engender a greater degree of social competence in children of low-income families
by stxengthenmg theLr ability to cope with school and the world around them, and help to create new
oppormmtaes for them and their families NCCAA curranfly operams 21 Head Start centers and serves
over 1,146 children of low-income fanulies Head Start centers are located m Agua Dulco, Banquete,
Corpus Christi, and Robsmwn
EXPERIENCE
NCCAA has extensive experience successful/y undertaking affordable housing projects. One of
NCCAA's greatest skills is its ability to bring disparate resources together to address local and regional
challenges. NCCA. A adds value to local affordable housing efforts by marshalling and packa~ng sc_.axce
financial resources, maintain/rig current dc-mographic information and commUmty needs, and providing
staff support for affordable housing projects NCCAA has constracted or rehabilitaled over 76 un/ts of
affordable housmg
NCCAA has many years of experience with admimstranon of public and private funding Ongoing and
current experience includes:
Over 30 years as an annual grantee of the CommUmty Services Block Grant;
Over 30 years as an annual CDBG grantee;
Over 30 years as an admmi.m-ator of the U.S Department of Health & Human Services' (HHS)
Early Head Start and Head Start Programs;
Adminigtered over $2 7 million in public and private financing for the development of CAP
Estates - a 30-lot affordable housing subdivision;
Admimstered over $500,000 in funding from the Texas Departmem of Housing and Conunun/ty
Affairs (TDHCA) for the anplementatien ora Colon/as Construction Project; and,
Propo~,a SM~niff~l to the CiO~ of Corpus C~
Attent~cm: Mr. Armando Cfiat~, CiO/Secretary
Submitted February 3, 200.5
Page 3
Administel~gd over $500,000 m funffmg fromfhe City of Corpus - Housing and Conauanlty
Development Depamnent and the Corpus Christi Community Improvement Corporation for the
implemental~on of an In-Fill Housing Project.
CERTIFICATIONS
NCCAA is one of forty-five (45) community aCUon agencies a~tlnini~terlrlg a variety of programs in 239
of the 254 comlBes in Texas; NCCAA serves re~ideats of Nueces County. NCC.aA is certified by the
State of Texns and the City of Corpus Christi a~ a commUImy housing developmemt organi~,arlon
(CHI)O). Most reomfly, NCCAA received its certificalaon as an affiliate ofNeighhorWod~s® - a
program of the Neighborhood Rdnve.sianent Corporation (NRC). As an affiliate of NeighhorWorks~),
NCCAA will mcrense its capaciW to bmld decent, affordable housing, revitaliTe commumfies, and
enhance economic opportunities.
AFFORDABLE HOUSING ENDEAVORS
As an affordable housing provider, NCCAA has constructed or rehabilitated over 76 umts of single-
family housing. Some of NCCAA contributions mchide.
ln-Fdl Housing Project - NCCAA's In-Fill Housing Project is a $556.000 neighborhood
revitali?ahon project. The m-fill housing project hnproved the city's affordable housing stock by
providing Iow-income, working families with home ownership opportmfities. The City of Corpus -
Housing and Commmmy Development Department and the Corpus Christi Commumty Improvement
Corpoxation provided project financing. This endeavor resulled in the construction of 34 affordable
homes.
CAPEstates - CAP Estates is a 5.86-acre development located m southern Corpus Chrisla.
Comprised of 30-lots, CAP E~atvs is a $2.7 million public-private investment funded by the City of
Corpus - Housing and Community Development Department, the Corpus Christ/Community
Improvement Corporanon and the Nueces County CommUmty Action Agency (NCCAA). Started in
2002, CAP Estates sold out during 2003
(blonias Construction Project - To date, NCCAA has constructed and rehabilimtexl 12 homes, la
1997, NCCAA constructed 2 - Section 8 set-aside homes in Robstown, Between 2000-2001,
NCCAA completed aa owner-occupied project, which consisted of demolition and replaceme~ of 10
smgle-fanuly homes. The Texas De?mt of Housing and Commumty Affairs (TDHCA)
supported NCCAA's colonia construction project. Project support totaled $516,000
{'~ii'Estates H - CAP Estates I1 is a 20 acre planned development located in southwest Corpus
Christi, When completed, CAP Estates I1 will consist of 99 lots. CAP Estates Il is a $5 3 mtllion
public-private project funded by the Neighborhood Reinvesm~ent Corporation, Corpus Christi
CommUmty Development Corporation and the City of Corpus. NCCAA is currently d~veloping this
subdivision.
Attention: Mr. Amumdo Ch~pa. City Secretory
Submitted February 3,
P~ge 4
MANAGEMENT TEAM
NCCAA's management team is responsible for establi~hin§ stzalegies to implement its affordable housing
plan NCCAA's staffhas extensive experience in successfully unaL-n-takiag affontabla housing projects.
NCCAA's staffhas over 72 yeaxs of combined experience in thc as~as of construction, land dcvelopmca~t,
loan fanilJtahon, portfolio manag~'nent and real estate finance. They act as liaisons b~twecn tl~ B~ard of
Direants and staff, represent NCCAA in nanonal, ~oual a~l local pohcy debates, and forge ~t~a~c
partncratups in thc service of our mission. Our management team is umquely q~alified to foIftll these
roles
Joe A. Marrinez. Executive Director Mr. Martmcz has over 30 years of experience with the Nueces
County Community Action Agency 0NCCAA). He was the orgnni,~tion~s Admmi~tive Maimer prior
to b~cominE t]~ NCCA. A's Executive Director in 1988. Mr. Mastmez is charged with the adIoinintl-a~ion
ora $13 Imllion orga~iTarion and the superxdsion of 300-person team. Mr. Martinez ~rves on numerous
adVmOry boards and professional associatio~as. He is a founding member of the Ernexgency Aid Coalition
of Corpus Christ~, C~ of the South Texas Commumty Based Organi~tions, Inc. (STCBOI), and
incoming president of the Texas Association of CommUmty Action Agencies (TACAA).
Rodol~6 Cantu, Community Sermce Director Mr. Cantu ts responsible for the management of the
Cimu.Umty Services Division - a $2 1 milhon budget and supervision of 21 slaffp~oons. Mr. Cantu
has served in this capacity since 1993 Mr Cantu plans, develops, orgamzes, implanents and evaluates
program contracts and ensures compliance. He also pre'pares grant proposals in accordance with the
orgammt~on's community needs assessment and 5-year plan. As NCCAA's Ho~smg Dircetor, Mr Cantu
~s directly responsible for conceptualizing, developing and implernentmg houSUng projects for low-inCOme
households. Mr. Canto has a Bachelors Degree in Business Administralion
Joe R. Flores, Fiscal Director Mr Flores has served as NCCAA's Fiscal Director since 1997. Mr.
Flores is responsible for direct supervision of the accounts payable depaiXma~ payroll dapartment, and
thc purchasing department. He monitors financial and procedural compliance of feak*a'al and state grants.
Mr. Flores is responsible for financial reporting required by awarding agencies as well as preparation of
annual financial reports. Mr. Flores has over eighteen (18) years of fiuancial accounting expemence,
including eight (8) years of public accounting experience Mr. Flores is a graduate of Corpus Christi
State University and Del Mar College and a Certified Public Aceounlarlt
Elida E Benavides, Housing Coordinator. Ms. Benavides serves as NCCAA's Housing Coordinator.
Ms. Benavides has numerous years of experience in construction management, contract budgets, contract
negotiations and administration, and supervision of HUD subsidized aparlxr~mt complexes. Previously.
Ms Benavides has served as Executive Director of the Mathis Housing Authority and Robstown Homing
Authority. She has also served as Director of Honsm8 Management at the Housmtg Authority of the City
of Corpus Christi and is a certified homebuyer education counselor
Sam Esquivel, Housing/Construcaon Specialist. Mr Esquivel has served as NCCAA's
Housing/Construction Specialist since 2002. Mr Esquivel inspects and oversees various types of
construction work to ensure that procedures and materials comply with plans and specificaUons Mr.
Esqmvel also counsels prospective homebuyers on the homenwnership process, He acts as alimson
between the homebuyers and the homebuilders to ensure a satisfactory outcome between both parties
during the construction process. Mr Esquivel is certified as a Homchuyer Education Counselor by the
Proposal Su3micted to tke C~y of Corpus Chriai
Attention. Mr. Armando Chapa, CiO/Secretary
Submitted Febr~ao/ $, 2005
Page $
Texas Department of Housing and Community Affmrs OX)HCA) and the Neighborhotxl Remve~tu~at
Corporation.
BOARD OF DIRECTORS
The nnplementatlon of NCCAA's affordable honsmg plan requires vision, fiscal responsibility
commmnent to mission, accountability, technical expertise, discipline and diligence. These ~kill~ and
values infuse each decision-making and implementalaon layer as NCCAA's products and services are
delivered to its constituents. The Board of Directors sets the tone and direction for our work by
establishing broad policy priorities. NCCAA's has a 27-person Board of Directors comprised of experts
in the field of housing and commUmty development. The Board has six (6) standing eommrctens:
Executive Commfllee; Fiscal and Audit Committee; Housing Committee; By-Laws Comm/ttee; Personnel
CommitS; and Pla~ing Commillec.
DEVELOPMENT TEAM
The Development Team determines lending priorities and policies, considers internal irapleanemation
procedures, makes decisions about families who will receive financing and under what terms and
conditions, and enncepmalizes filtm'e affordable housing projects. Membership on the Developrmmt
Team demands a wide range of skills that balance concrete housing development expertise with
awareness ofonrrera issues and trends m the affordable housing industry. NCCAA has amassed an
exemplary Development Team comprised of leaders in the housing riel& legal experts, land and housing
developers, bank representatives, and nonprofit experts Development Team members mchide:
Mr. Joe A. Martmez, NCCAA Executive Director
Mr. Rodolfo Caffm, NCCAA Commumty Service DtreCtor
Mr. Joe R_ Flores, NCCAA Fiscal Director
Elida Y. Benavides, Housing Conrdmator
Mr. Sam Esquivel, Housing/Construction Specialist
Mr. Ernesto De La Garza, Neighborhood Remves'nment Corporation (NRC) - Senior Field
Service Officer
Ms. Sylvia Ford, Frost Bank - CRA Officer
Mr. William Hibbs, Esq. - NCCAA Legal Counsel
Mr. Stephen Lobo, Chrisms Health Texas - Program Admimstrator, Community Direct
Invesmaent
COLLABORATIVE AND PARTNERSHIP RELATIONSHIPS
NCCAA has a stxong history of successful collaborations at the national, regional and local levels. These
established relationships have facilitated the leveragmg of public and private financing for the
development of affordable bousing projects. Nationally, NCCAA collaborates w~th Neighborhood
Reinvestmont Corporation (NRC) as a NeighborWorks® affiliate. For the proposed CAP Estates II, NRC
~11 be directly invested in the project Through its previous affordable housing projects, NCCAA has
established relationships with local private and public funding sources. This has culminated in
commm'~ents and favorable responses from the Corpus Christi Commumty Development Corporation
I CDC) and the City of Corpus Christi Business and Job Developmem Corporation (4A Board).
l°roposM SMnmtted to the C~y of Corpu~ Clu~t~
Atlention: Mr. A~mando Chapa, City Secretary
Submittv. d Ftbruary 3, 2005
Page 6
ADVISORS AND CONSULTANTS
For en~neenng services, NCCAA will contract with LNV Engmeenng for e~neenng, surveYing and
environmental survey services. To complc~ment NCCAA's development team, Neighborhood
Remveslm~:nt Corporation O',[RC) sm.ff and Management Science Ins~tute (MSI) Consul~dag Group will
be providing technical asSkStance on an as-needed basis. NCCA. A's annual audit was conducted by, Mr.
Jake Sanchez, CPA, Mr, Saachez completed NCCAA's audit for the fiscal year ending August 31, 2004,
Prop~al SsdnnitUnl t* the Oty of Carpu~ Chri~
Attention: Mr. Armando Chapa, City Secretary
Submltted February 3, 2005
P~e7
l certify that the proposed project and related activities in the enclosed applieal~on are consistent with the
organization's rms~ion and the 4A Board Affordable Housmg's Request for Proposals (RFP). NCCA. A
will meet ail RFP provisions.
NCCAA further certifies to the best of its knowledge and behe~ that it and as principles:
(a)
Are not presently debarred, su.spond~ proposed for debarnm~ declared ineligible, or
vokmtanly excluded from covered transactions by any Federal department or agency.
Have not within a three-year period preceding this proposal been conwctexl of or had a civil
judgmnnt rendered against them for cormmSsion of fraud or a criminal offeme in connection
~ obtaining, ~tmg B3 obtain, or performing a pubhc 0rofleral, State or local)
tranSa~on or contract under a public Uan~redo~ violation of Federal or State antmust
statutes or corannssion of embezzlement, thef~ forgery, bribery, falsixqeation of destruction of
records, making false statements, or reC~ving stolen property
As the authorized eertif34ng official, 1 hereby cem~ that the above-specified certificataons are true.
SIGNATURE OF ALrII-IORIZED CERTIFYING OFFICIAL
Mr. ~ Marltnez, Exe~tiveqli~or
DATE
Attention: Mr. Armando Clu~pa, City Secrtnary
Submitted Fe2,ntary 3, 200.5
AMOUNT OF THE REQUEST
To address the shoilage of affordable housing w~thia the City of Corpus Christi, Texas, the Nueces
County Community Action Agency (NCCAA) requests $210,000 grant in 4A funds firma the City of
Corpus Christi for down payment and closing costs assistance to assist 12 Iow-income families.
NCCAA has acquired a 20.24-acre parcel in southwest Corpus Christi. Loc_~t~A at Holly and Martin
StreeCts, flxts ,mimproved a-act will provide a total of 99 single-family lots for affordable h~usmg Whea
completed, NCCAA will leverage over $5.3 million tn pubhc and private financtng and provide 99 low-
mc, omc, work/ng fam/l/e~ with homeowncrsh/p oppormmties.
NCCAA, ia partnership with Neighborhood Reinvestment Corporation (NRC), Corpus Clmsti
Commmmy Development Corpotataon, the City of Corpus Christi Busmeas and lob Developmeaxt
Corporaaon (4A Board) and City of Corptu Christi's HOME Investment Partnership Program (HOME),
will implement its Affordable Honsmg Project (AHP) in tlaree phases. Duxmg its first phase, NCCAA
will iacnmse the affordable housing stock m Corpus Christi, Texas, by forty-two (42) units. Dunng its
second and third phase, NCCAA wdl increase the affordable housing stock, by twenty-seven (27) and
thirty (30) unrts, respocttvely.
Deliverables
Under the proposed imtaative, NCCAA will measure its success through the following benchmarks:
· Provide homeownership oppormmties to 99 low-meorne families earning less than 80% of the area
median income (AMI) adjusted for family size;
· Provide over 792 hours of homebuyer educanon and homeownership cotmsehng;
· Provide new home construction, infrastructure, and land development; and,
· Leverage over $5.3 rmlhon in public and private financing.
PRODUCTS & SERVICES
NCCAA will provide an a.rray of housing services to facilitate home ownership for low-iacome working
families. Under its Affordable Housing Project (AHP), NCCAA will provide the follOWing products and
services, ia tandem with the planned Homebuyer Assistance plan.
Homebuver Education and Counseling Pro.ram Homebuyer education serves as the catalyst for the
developmcnxt of well-tra-med and educated homeowners. NCCAA will increase the local rate of
homeownership by providing semmaxs as well as one-on-one counseling to all its cli~mts qualifying for a
new home. Tlms education program also serves as the recruitment and orientation process for the
development of neighborhood ~socmtions. NCCAA will encourage the formation of homeowner
associations to self-monitar and maintain sale and attractive neighborhoods. Homeowner associations
will be instrumental ia ensunng that NCCAA's subdivision developments maintain the family spirit and
flavor *nth whmh they_ were originally designed.
Attera~on: Mr. Armando Chapa, City Secretary
Subrmned Febraary .3, 2005
Page 9
Homelmyer ~ & OlnSeling ~ I
Total m~mh~ ofbe~m of lmmelmy~r e~hmafion 336 ~
~t of ~ ~r ~ (~m~ ~) $17,5~
~ ~ ~ ~ a~ 42
T~ ~ ~ ~ pha~ $735,~
~ge ~: ~t ~ (~ ~-~ $5~,~
~)
To~ of~r ~mili~ ~ ~ l~emge 30
m~ (~ ~-~
To~ 4A ~a~ ~ $210,~
To~ ~n~r of famili~ ~ ~ 4A ~g 12
l~na~ 1I l~tmse III
216 htmm 240 hours
$17,5~0 $17,500
27 30
$472,500 $525,000
Down pavn~nt assmtance loans:
NCCAA will offer down payment assistance loans fan, nE between $15,000 and $20,000 per fixmily but
will av~age $17,500. Loans will be secured by a second lien and amortized according to the loan
amount.
Topics to be chscussed include but ate not limited to the folloWing areas.
How Much Can 1 Pay for a Home9 Th~s section provides an overview on how do l~lem decide
how much to lend. NCCAA's homchuyer counselor reviews the 4 Cs of credit They are:
capital, capacay and credit history and collateral. The first three are directly related to the
borrower's finances. The later looks at the value and condition of the home. Other to~ics
discussed in this session include: How much Home Can I Afford?; Getting Pre<pmlified; and
What Other Costs Shotdd I Expect?
Credit Basics: How Do lManage MyMoney? This section provides an ovemew of the folloWing
topics: Paying Bills on Time Pays OffWhon 1 Borrow; Common Credit Problems; Solving
Credit Problems; Steenng Clear of the Credit Card Trap; Help for People with Credit Problems;
and What ifI Have Never Borrowed Money9
The Mortgage loan Process - This section provides an overview of the following topics: Steps in
the Loan Process; WhaI Happens m Escrow?; Closing Day; and Why Do I Need All This
Insurance?
Protecnng Your Investment This section provides an overview of the following topics: Learning to
Love Your Home; Remember the Credit Card Trap; Time for a New Budget; and When You
Can't Pay Your Mortgage Loan?
Time. frame - Homebuyer Education and Couasolmg Program
Goal Pirate 1: Provide tmmetmyer eduCanon and counseling sermces to a tolal of 42 low-income, woxk-inE families
m Corpus Christi.
Outcome Phase I: Provide 42 families w~th homebuyer education and c~.n~eting semces.
Tasks /Xmttab/e Key Staff
Idenlff'y and enroll 42 families in homebuyer education 3-12 months NCCAA
courses
Provide over 336 hours of homebuyer education, or
3-12 months NCCAA
appro×imately 8 hom-s per person
Propasal ~mia~ W tlst Ct~ of C-~psa Christi
Attention: Mr. Armando Chapa. City Secretary
$~brnit~ed F~bruary 3, 2005
Page 19
Provide over 42 horns of one-W.one com~elmg w~th each
s~Smons avem~ng I ho~r. 3-12 months NCCAA
Fora a homeowner' asSC~alio~_ 10-12 months[ NCCA.A
Goal~ Il-_ Provide hom~ education and counseling s~tvices to a to~al of 27 Iow-income,
Out~m~ ~ Il: PrOvi~ 27 f, amili~ with holnal;nO~ odne,n~on mid golm~l~n~ ~.rv'icgs,
Ta~k~ Tbm~b/e
Idenlify and enroll 27 f'nmili~i m hom~ouyer education 13-24 montl~ NCCA-A
Prcn~e ~r 216 hours of honu:hoyer e~amafion, or
13-24 month~ NCCAA
Provide over 27 hours of one-tc~one counseling with each 13-24 month~ NCCAA
sessions averal0ng 1 horn-.
Increa~ n~anbe, rship in homeowneR' a~':ialion. 22-14 montha NCCA.A
Goal~ m: Provide iaomebu~ edncafion and cmmseling servioes m a tolal of 30 low-income, working
f~mities m Eot~ ChriS.
~ Ph~: lll_- P'tovide 30 families with hom~}uyel edm:atinn and ~
Tas/~ Tinu~a~hr Key
I~cnt~ and enroll 30 families in homcbuyer education
25-36 months NCCAA
Provide ovm' 240 hours of homebuyer educ_.a0on, or
25-36 months NCCAA
appmximalely 8 hours per pei~n
Provide ov~ 30 hours of one-to-one cotmseling with each
25-36 months NCCA3t
sessions averaging I hottr.
lacr~ mmmb~mhip in homeow~'xs' a~m'c'mtion. 34-36 mouths NCCA_A
NOTE: Hornebuyer education cla~ses will be held bi-monthly during the evenings and on weekends.
LandAc~uisition To provide affordable single--family lots, NCCAA is developing affordable
residemia[ home sftes for the b~rnefit of o?alified families. By utiliTir~g its land development expemse,
NCCAA acquired a 20.24-acre tract in southwest Corpus Christi Localed at Holly and Martin Streets,
this undeveloped tract will provide a total of 99 single-fanUly lots.
Total A cres :
Legal Descriln~' n:
Cog of Land t~ be Purchase~-'
Al~raised vah~e:
N~tmber of lot~ to be created..
Current ~oning d~mation:
Copy of Nue~ County Tax
Appraisal District Property Tax
Report:
T~ttle Committal:
Proposed Zonlng Usage:
Flood Zone Designa~n :
Environmental Concerns:
Prupgm~ CAP E~ates H
Located at Holly and Maxtin Streets m southwcsl Corpus Clmsti
20.24 acre undevClol~l pamal
20.024 ac~s out of Lot 8, Sectton 7, Bohenuan Colony La.n~
$217,932
99 sin§le-fami .ly lots
RI-B
Ava/lable
Available
RI-B zoning
Located in Zone C or ama of minimal flooding
The proposed site is nol located wifl~n a flood plain, ne:ar a
ha?ardous site, near an alq~rt, railroad or any other enVirOnmental
concern, which may make this pmJecl infeas~le.
A~ention: Mr. Armando Chapa, City Secretary
Submlt~ed February 3, 2005
Pa~e 11
Total 4A ~ Requested
An~u~tof4A
Total ~ of f~ ~
~ 4A f~g
$210,0oo
$17,5o0
12 low-Income families
Timeframe Land Acquisit~on
Go81: ~ all ,mim.nrovefl ~ fo! deve. lopllletlt of an allonla~le ninEle-:family ~:n:livision.
Ouh~me: A°~?ir~t a 20.24-ac~ panel located at Holly and Martin Stree~ m southwest Coq.,uS Chri~
Conthmt emarOnmemal r~view and due diligence. ~A month NCCAA & Engineering Firm
Acqmled property for de,'velopmonl of single-family hou~ing lmonth NCCAA
Residential subdivision d~vedoprnents - NCCAA wig serve as dae land developer of CAP Estates II.
NCCAA will develop a 99 lots affordable subdivision m three phases. Dunng Phase I, will facilitate the
cons~ction of 42 homes.
~ cost ofconat~c~ion:
Number of lots to be create~.
Pr~o.ed CAP ~ ~
Located at Holly and Martin Streets in South Corpus Christi
$2,436,000
42 single-family lots
Timeframe Land Development
Goat: D~elop nnimprov~d tract for remdenfial subdivision
Outgoing: Develop a 991o~ single-family subdivision
Ta.~s
Begin subdivimon cl~velopmgnl proc_e, ss
Record subdivision plat
lh'e--~ale and/or sale of 42 single-family lots to complete Phase
I
Pre-sale and/or sale of 27 single-family lots to complete Phase
11
Pre-sale and/or sale of 30 single-farmly lots to complele Phase
Ill
1-8 months NCCAA
8 months CONTRACTOR
6-12 months NCCAA
13 -24 months NCCAA
25-36 months NCCA. A
New home construction NCCAA will serve as the developer and facihtate new home construction.
NCCAA will offer at a minimum four different floor plans Qual' .flying families can purchase 3-bedroom/
2 bath masonry homes. Homes ,~511 average 1,400 square feet. All homes are adaptable for persons with
chsabilities and will be constructed in CAP Estates 1I. NCCAA will construct a total of 99 new homes m
three phases. Bids for ne~v home construction will be solicited (RFP) from local homebuilders.
Total Area Total Living Area
Type of Home (Sq. fi) (Sq. fl.)
3 bedroom / 2 bath 1,427 1,086
All homes vail be constructed in accordance with the International Building Code as well as all of the
current apphcable standards and local building codes. All homes will meet FHA and VA requh-cments.
A~ntiv~: Mr. A,'mando Chapa~ City Secr~ary
Submitted February 3, ~005
Pwge 12
NCCAA's homes will comply ~ the International Eneagy Code and include mergy ~cienI features.
To mil/gate any risks during comm-uCUOn. NCCAA will malBtain ad/X~nmte {llsLIranc~ COV~'I~g¢. The
proposed site is no~ located m the 100-year floodplain; con.gequealtly, flood mmlFdllce will llOt b~ require[.
The stale hoard of Insurance Windstorm Codes will certify homes
Timeframe - New home construction
Goal t~Ss~ 1: ~ long-term flem'blc financing.
Out~m~ r~qlitam for undeawriling a~d secme 42 nmrt~ges for preS,--live homS~ax~
K~ ~
Identify and complete mortgage loan applications for 42
6-12 months
Present 42 mortgage loan applications to local lendem 6-12 months
Close 42 mortgages~ 10-15 months
Go~lPl~se I: ~ affordable housing 0pportumties.
Gu~ Cpnm'~t 42 ne~v ~xgle-family m.
Assist 42 ~lalifieti households with b~ilding specifications and
8-13 months NCCAA
malerials~
Commence construction of new homes (6 homes per group). 8-13months NCCAA
Comple~ construction of new honms. 10-15 months NCCAA
Goal HmseE Eva~h~te NCCAA's homeownershtp program.
Ouh?..ome: O0tatin quanti~mtSve and qualitative information al~out 42 ne~ honseholds.
Conduct ongoing bilingual (English/Spamsh) consumer 10-15 months NCCAA
sm'veys within 60 days of new homeowner occupancy.
Evaluate quality of honuing by compiling mil back information 10-15 months NCCAA
for NCCAA's subcontractors.
Tentative T~meframe Phases II & Ill - New home construction
Goal ~ 1I: Facililme long-term flexible financing.
Ouk-~ome: Faeili.~tle uaderwtfd~ and secm'e 27 mortgages for ~ lmmdmy~rs.
Tas~ Tis,~nnhle
Identify and complete mortgage loan applications for 27 13-24 months
qualified households.
Present 27 mortgage loan applicalmns to local lenders. 13-24 months
Close 27 mortgages. 22-24 months
Goal Phase II: Increase affordable housing oppormniOes.
Oa~ome: Constxuct 27 new single-family homes.
Tasks T'~/e
Assisl 27 qxlalified households v, Sth building specifications and 13-24 months
materials
Comme~ce construction of new homes (6 homes per group). 13-24 months
Complete construction of new homes. 13-24 months
Goal Phase II: Evaluate NCCAA's homeownership program.
Outcome: (Yo~mJxt cpmnhmtive and qualitative information about 27 imw households.
Loan Officer
Loa~ Officer
NCCAA
NCCAA
NCCAA
Attention: Mr. Annando Chapa, City Secretary
Submitted February 3, 2005
Page 13
Co[Ith]ct ongoffig b~ffigl]3] (En~liRh/~]~niRh)
15-20 ~n~ NCC~
15-20 mn~ NCC~
f~ NCC~'s
~~ Fm~ 1o~-~ fl~le finan6ng
I~n~ ~ m~le~ m~ge 1~ a~hmflo~ for ~0
21-3~ ~n~h~
~alffi~ ~hOI~.
~nl 3~ ~e 1~ ~h~flo~ ~ 1~ len~ 21-~6 ~n~h~
Cl~ 30 ~g~. 21-~6 mn~
~~ ~ ~or~le ~ng ~mmi~
~ 30 q,~lifi~ ~hol~ m~ bml~g ~mom ~d
21-36 mn~ NCC~
Co~ mmon of ~ ho~ (6 hom~ ~ ~o~). 21-36 m~ NCC~
Co~l~ m~on of~ ho~. 21-36 ~mh~ NCC~
~: ~ ~e ~ q~e ~o~on ~t 30 ~ h~.
Co~ ongoing bilin~ ~n~is~S~h) co--er 3~-36 mn~ NCC~
~s m~ ~ ~s of ~ hom~ ~.
Ev~ q~i~ ofho~g ~ ~mp~g ~l~k i~om~on 34-36 mon~ NCC~
for NCC~ ' s ~n~o~.
MARKET ANALYSIS
In March 2003, the Nueces County CommUmty Action Agency retained BBC Reseaxch & Consulting
(BBC) to perform a comprehensive market analysis of a proposed affordable single-family development
m soathwest Corpus Christ/. The report identified several factors, which support the development of
NCCAA's proposed projects. Below is a brief overview of the numerous factors analyzed to detemune
the likely market for the proposed project
Demographic & Economic Factors
BBC's review of demograplfic data found Corpus Christt to be a slow ta moderate gxowth c-om,
v, ith income growth outpacing inflation. Incomes m the local market axea are lower than incomes
cityw~de, and they did not grow at the same pace over the 1990s, but they did keep pace with inflation
over the deckle
Wlale growth has not been rapid in thc past decade, BBC's interviews with key commumty leaders
indicate a thriving economy Recent articles in the Corpus Christi Caller T~mes described a strong
housing market, and local econormc development officials indie~teq that there are 6,000 unfilled jobs m
Corpus Christi. Moreover, economic data mdicales falling unemployment and rising wages, both signs of
a growing economy.
nature of the local economy is particularly encouraging for the proposed project The service and
retml trade sectors make up approXnnately half of local employment, and the service sectors grew rapidly
Proposal Submitted to the City of C~rpus Christi
Attenn'on: Mr. Armando Chapa, City Secretary
Submitted February 3, 2005
Page 14
dunng the 199(}s. These sec~rs have wages that are only 70 and 53 perc.~t of wages respecavely
ciLyw~de. The low incomes make these employees prune candidates for the proposed project,
Housing Market
Numerous individuals mter~ewed by BBC described a "hot housing market" m Corpus Christi. 2[]aere
was genelal consensus that the loc~ housing n~-ket is very strung al all pricoe polllts. ~ vacancy
rates are below 5 percent m both the local m~4tet area and m the city aa a whole, and waiting lists for
subsidized umts can extm~ as long aa 18 months. While housing umt growth has been less than 1 percea~
per year for the past 12 years, the nmnber of vaeant umts has dmplxxt sigmfieanfly, indicating pmsan~.
the market
A review of local real estate data found that many recent homes sales in the market area have beett ~
paces m the target range of NCCAA's project. Whtle the share ofumts m the target price range is much
smaller cityw~de, they still made up 15 percent of all sales from 2000 to 2002. This data could indic, am an
oversupply of Umts al the proposed price points and a soft~ing market. However, an m-depth review of
Census, local real estate and interview data 1,-~rl~ to the conclusion that most of these existing umts are in
poor conditions. It appears to be difficult to find quality Umts in well-kept neighbothtx)ds at the proposed
pace points
To evaluate the likely performance of the proposed project, BBC ~mntified tht3 demand, reviewed the
proposed site and evaluated the likelihood of city policies, continumg to support this type of development.
This assessment led to a number of conclusions.
Demand Analysis. Over 17,300 household ciLyW~de, and 2,100 households in the rr~rket area ~
incomes that axe in the target range of the proposed project. While many of these households wtll
quahfy for the project due to credit history or other factors, a large share are potential buyers
NCCAA's unrts. Of the cits~vide households, 5,600 are currently in unaffordable housing and 2,500~re
m umts lacking kitchens or plumbing, making them pamcularly likely to find NCCAA's proposod umts
attractive. In the market area alone, 350 target households are cost burdened and 150 live in unrts vath
condition problems. While a comparison of household incomes to housing prices found a potenfia}
oversupply ofumts, this is likely to be a result of large numbers of poor condition un/ts and consoqa~l~llly
a Inmor factor in demand for the project.
Site assessment The proposed site l~s a number of strengths and very few weaknesses from a d~'
sm.ndpoint. It has well developed transportation, infi-astmcture, plentiful nearby apartment oppo~
an average crtme rate, high quality schools, and low to average tax levels While one person interviewed
by BBC was concerned about safety, others believed that safety would not be an issue. City crane
statistics mdicale that the area has a crime rate that is average for Corpus Christi.
( 'onc[usiot~
The Corpus Ctmstt housing market appears to support development of NCCAA's proposed project.
Interview comments, Census data alld local ~ all generally support construction of the proposed units.
Given this market support, BBC recommends that NCCAA proceed with the project if it can obtain the
I~.nd, conduct necessaid' environmental reviews and build infrastructure, all al prices that will allow
construction at the target of $75,000 to $79,000 price point. The housing need appears to increase with
movements down the income scale, so NCCAA's ability to deliver the proposed units at the lowest
possible pnce is Unportant in maximizing the likely market
NUMBER OF HOUSEHOLDS TO BE ASSISTED &
Anen~em: Mr. Armando Chopa. City Secretary
Sub~t~t Februa~ $, 2005
P~el$
DOLLAR AMOUNT OF ASSISTANCE PER HOUSEHOLD
Proposed subdiwsion develupn~mt
Total Number of Lots m CAP Estates II
Total Number of Lots in CAP Estates II - Phase 1
4A Funding
Dollar Amount of Assistance Per Household
Total number of families assisted with 4A
Leverage amounts: ~ secured (CHDO set-aside
funds)
Total of number of families assisted with leverage
am(~mt~ (CHDO set-aside funds)
CAP Estates 1I
99 single-family
42 single-family lots
$210,000
$17,500
12 low-income farndies
$556,604
30 low-income families
LEVERAGE AMOUNTS FROM PRIVATE SOURCES
NCCAA will provide saed lundinE for projects which NCCAA's Development Team considers feasible
and identified by the commumty as a priority. Ehg~ble uses will include, but are not limited to,
predevelopment including soft and hard costs, land acquisition, construction and down payrne~
assistance The goal of NCCAA is to improve the liVing condmons of low-income families residing in
Corpus Christi.
NCCAA will use 4A funds m leverage additional public and private resources. NCCAA has conumtted
$6,000 towards the development of CAP Estates II. The following private soarces have committed
resources fur the development of the proposed affordable housing project - CAP Estates II.
Neighborlmod Remveslment Corporation (NRC) - $150,000
Coqaus Christi Community Development Corporatmn (CDC) $342,000
City of Corpus Christi HOME Funds $556,604
ECONOMIC IMPACT
To determine the economic tmpact of a 4A gram, the Umversxty of Texas - Pan American Data and
lnforma~on Systems Center (DISC) utiliTt~l the IMPLAN inPut-output econonnc modelinE systl~ to
esttmate the total economic nupact derived from the development of Holly Estates. Calculations a~e
based tm a sample of 99 families earning an average median income of $37,600 and residing in CAP
Estates II The IMPLAN model es6mates taxes and utilities at $657,128 and $252,000, respecavely. The
total anmml econcnmc impact is esttmated to be over $6.2 million.
Indmstry Direct Indnect Induced Total
Health Services $ 962,142 $ 1,205 $ 2,496 $ 965,844
Childcare 993,682 0 697 994,379
Motion Picture 0 39,749 578 40,327
Auto Maintenance 0 62,001 1,601 63,602
&Repatr
All other 1,742,739 1,445,638 120,010 3,308387
Total Per Annum $ 3,698,563 $ 1,548,593 $ 125,382 $ 5.372,538
Direct impacts axe consequences of economic activities camed out at the proposed CAP Estates II.
EmploYing labor, purchasing locally produced goods and services and contracting construction and
capital LmProvements are examples of acUvities that generate direct nmpacts. Some direct impact
activities includes both on and off site activities.
Proposal Subraitted to the C~y of Corpus Chr~
Attent~'on: Mr. Armando Chapa, City Secretary
Submitted February 3, 2005
Page 16
Indirect impacts are derived from off-site economic acttvities that are altribulable la the CAP Estates ll.
These a~vities include services provided by local hotels, restaurants and retail establishments. These
businesses employ labor, purchase locally produced goods and ser~ces and invest in capital expansion
and improvements. Indirect WnPacts differ from direct nnPacts ia that they origmaW entirely off-site.
Induced impacts are the mullspher effects of the direct and redirect unpacts. These axe the increase in
employment and income over and above the combm~ direct and indirect impacts, created by successive
rounds of sp~nding.
Total impacts axe the sum oft.~ direct, indirect and induced Unpacts~
"Exhibit F"
cITY OF CORPUS CHRISTI
DISCLOSURE OF INTERESTS
City of Corpus Christi Ordinance 17112, as amended, requires all persons or firms seeking to do
business with the City to provide the following information, Eve~ question must be answered. If the
question is not applicable, answer with "NA".
FIRM N A M ES :...bl~.~.GQ,'t..~.olA'tty..~.m.m~/.o.~. A~;t,i.~.O.Ag~,JO.G¥ .........................................................
s TRE C~TY: ..~mu~..Gl'Al~li ....... zJP:.:ZJ~J~.~. ..................
FIRM is: 1. Corporation iX] 2. Partnership [ ] 3. Sole Owner [ ] 4. Association [ ]
5. Other [ ] .........................................................................................................................
DISCLOSURE QUESTIONS
I[ additional space is necessar.j, please use the reverse side of this page or affach separate sheet.
1. State the names of each "employee' of the City of Corpus Chdsti having an "ownership interest"
constituting 3% or more of the ownership in the above named "firm",
Name Job Title and City Department (if known)
N.J.~. ...................................................................................................................................
2. State the names of each "official" of the City of Corpus Chdsti having an "ownership interest'
constituting 3% or more of the ownership in the above named "firm".
Name Job Title and City Deparffnent (if known)
3. State the names of each 'board member" of the City of Corpus Chdsti having an "ownership interest"
constituting 3% or more of the ownership in the above named "firm".
Name Job Title and City Department (if known)
4.State the names of each employee or officer of a "consultant' [or the City of Corpus Chdsti who
worked on any matter related to the subject of this contract and has an "ownership interest'
constituting 3% or more of the ownership in the above named "firm".
Name Job Title and City Department (if known)
CERTIFICATE
I certify that ali information provided is true and correct as of the date of this statement, that I have not
knowingly withheld disclosure of any information requested; and that supplemental statements will be
promptly submitted to the City ofCorpus Chdsti, Texas as changes occur.
Ti t I e. ~..;~.,(~.!~.T.[~.,. ~).[IL~,.~ .~.~.Q J~
Dates:. F. g ~l.~.!,~ ~, .R..y.. ~.,. ~..0.~).~.