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HomeMy WebLinkAboutC2005-236 - 4/26/2005 - Approved AFFORDABLE HOUSING PROGRAM AGREEMENT RANDY FARRAR DBA MIRAMAR HOMES 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 Randy FarTar dba Miramar Homes ("Miramar"). 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 im-proving 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 ap-proved 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 Apdl 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, Miramar submitted a proposal to the Board to request funds to loan to families for mortgage buy-down assistance of new Miramar constructed homes; WHEREAS, the Board has determined that it is in the best interests of the residents of the City of Corpus Chdsti that affordable housing funds be awarded, by execution of this Program Agreement, to accomplish the affordable housing project described in this agreement and in Miramar's proposal In consideration of the covenants, promises, and conditions stated in this Program Agreement, the Corporation, Miramar and the City agree as follows: 1. Program Agreement to Implement Affordable Housing Project. This Program Agreement between the Corporation, the City, and Miramar is executed to implement the promotion and development of an affordable housing project proposed by Miramar in response to the Board's request for proposals ("Project Response"). The Project Response submitted by Miramar, entitled "Miramar Homes Proposal Number Two 4A Board 2004 Affordable Housing Program" ("Project") is attached to this Program Agreement as Exhibit C and is incorporated in this Program Agreement by reference. CCBJDC 2005-236 04/26/05 Res026239 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. ("Effective Date") 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 Miramar. a. Miramar shall complete construction of between five (5) to seven (7) new single-family, owner occupied homes in Corpus Christi, Texas and offer said homes for sale as affordable housing, as the term is defined 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 comply with the Corporation's Affordable Housing Request for Proposals. Each home shall contain three bedrooms, two baths, one-car garage, with 1050 to 1374 square feet, and sell for $81,500 to $93,500, inclusive of all closing costs, and including cost of lot. Miramar shall provide market appraisal of each home. b. Eligible homeowner ("Homeowner") shall receive a loan of $15,000 to $20,000 of the funds provided under this Program Agreement to buy-down the mortgage and closing costs of a home described in this section. The mortgage buy-down funds shall be repaid to Corporation upon sale or transfer of home. Miramar shall require Homeowners who receive the buy-down 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 to Corporation of the buy-down funds. Miramar shall file the odginal executed documents in the official public records of Nueces County. After recording, Miramar 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, Miramar must coordinate with the Director of the City's Neighborhood Services Department or the Directo¢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 loan funds. The Director may authorize modifications to Exhibits A and B to accomplish purpose of this Program Agreement. d. Miramar shall recruit potential homebuyers for housing ownership to be constructed as affordable housing pursuant to this Program Agreement. Miramar 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. Loan of Funds. The Corporation authorizes the City to loan, from allocated sales tax revenues, up to $100,000 for mortgage buy-down and closing costs of new homes for eligible homeowners pursuant to this Program Agreement. Eligible homeowner of homes with total price of less than $90,000 may qualify for a maximum $15,000 loan. Eligible homeowner of home with total price between $90,000 to $93,500 may qualify for a maximum $20,000 loan. Any payment of funds 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 buy-down funds will be made by the City directly to the title company involved in the closing transaction. Supporting documentation, such as closing and settlement forms, must be provided to the City Director by Miramar prior to processing a request for loan. Miramar shall secure for the Corporation the recapture of all loans provided to Homeowner under this Program Agreement by having each Homeowner execute a note secured by a deed of trust that represents a second mortgage lien on the property. Recapture shall occur upon the eadier of the following events: i. Sale of home; ii. Homeowner no longer occupies the home as pdmary residence; or iii. foreclosure of home. 7. Documentation and Reports. Miramar 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. Miramar shall provide access to all records, documents, reports, and audits, regarding the funded activity under this Program Agreement, during regular business hours, for the purpose of inspection and copying by the City Manager. Furthermore, Miramar shall provide to the City Manager any information pertinent to this Program Agreement, as may be requested during the term of this Program Agreement. Miramar 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. Severability. a. 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. Miramar shall comply with all applicable federal. State, and local government laws. rules, regulations, and ordinances which may be relevant to Miramar'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 MiramaYs execution of this Program Agreement. Miramar 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. 1 3. Indemnity. Miramar must fully indemnify and hold harmless the City of Corpus Christi, the Corpus Christi Business and Job Development Corporation, and their olfTcers, 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 manner connected with, or are claimed to arise out of or be in any way connected with, either proximately or remotely, wholly or in pert, any activities by Miramar, its officers, employees, agents, members, invitees, or independent contractors with respect to this Program Agreement or the Project that is the subject of this Program Agreement, regardless of whether such injuries, death, or damages are caused, or are claimed to be caused, by the contributory negligence of any of the Indemnitees, but not if caused by the sole negligence of the Indemnitees unmixed with the fault of any other person or entity. Miramar covenants and agrees that if lndemnitees, or any of them, are made a party to any litigation against Miramar or in any litigation commenced by any party other than Miramar relating to this Program Agreement or Project, Miramar shall, upon receipt of reasonable notice regarding commencement of litigation, at its own expense, investigate all claims and demands, attend to their settlement or other disposition, defend Indemnitees in all actions based thereon with legal counsel satisfactory to Indemnitees, and pay all charges of attorneys and all other costs and expenses of any kind arising from any said liability, damage, loss, demand, claim, or action. 14. Warranties. Miramar warrants and represents to Corporation the following: a. Miramar is a duly organized, validly existing, and in good standing under the laws of the State of Texas, has all authority to carry on its business as presently conducted in Corpus Chdsti, Texas. b. Miramar has the authority to enter into and perform, and will perform, the terms of this Program Agreement. c. Miramar 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 govemmental charges, including applicable ad valorem taxes, have been timely paid, and will be timely paid, dudng the term of this Program Agreement. d. Miramar 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, Miramar agrees to reimburse Corporation for the sums of money spent for purposes not authorized by law within 30 days written notice requesting reimbursement.. f. The parties executing this Program Agreement on behalf of Miramar are duly authorized to execute this Program Agreement on behalf of Miramar. 15. Events of Default. The following events constitute a default of this Agreement: a. Failure of Miramar 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 Miramar 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 Miramar or any attachment or other levy against the property of Miramar with respect to a claim remains unpaid, undischarged, or not dismissed for a pedod of 30 days. d. Miramar makes an assignment for the benefit of creditors. e. Miramar files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. f. If taxes on property owed by Miramar become delinquent, and Miramar fails to timely and properly follow the legal procedures for protest or contest. g. Miramar 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 Miramar is in default according to the terms of this Agreement, the Corporation or City shall notify Miramar in writing of the event of default and provide 60 days from the date of the notice ("Cure Period") for Miramar to cure the event of default. 17. Results of Uncured Default. After exhausting good faith attempts to address any default during the Cure Pedod, and taking into account any extenuating circumstances that might have occurred through no fault of Miramar, as determined by the Board of Directors of the Corporation, the following actions must be taken for any default that remains uncured after the Cure Period: a. Miramar shall immediately repay to Corporation, with interest at the interest rate paid by the City on its most recently issued general obligation bonds from date of expiration of Cure Pedod until fully paid, all funds not used in accordance with this Program Agreement. b. Miramar 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 Miramar 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 ail 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 Miramar default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time Miramar 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 rights and remedies that the Corporation may have, will not be considered a waiver on the part of the Corporation, but Corporation may at any time avail itself of the 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 Miramar: Randy Farrar dba Miramar Homes 5417 Whitemarsh Corpus Chdsti, Texas 78413 If to Corporation: City of Corpus Christi Business and Job Development Corporation Attn: Executive Director 1201 Leopard Street Corpus Chdsti, Texas 78401 b. A copy of all notices and correspondence must be sent to the City at the following address: City of Corpus Christi Attn.: City Manager P.O. Box 9277 Corpus Christi, Texas 78469-9277 c. Notice is effective upon deposit in the United States mail in the manner provided 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, Miramar 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 b~ construed to be, the employees or agents of the other party for any purpose. 22. Nonassignment. Miramar 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. Miramar 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 dght 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 Miramar for the purpose stated. All other agreements, promises, representations, and understandings, oral or otherwise, with reference to the subject matter of this Program 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 Pdnted name: Date: ACKNOWLEDGMENT STATE OF TEXAS § § KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES § Tl')~jnstrume/'~t Was.acknowledged before me on · ~"'~C-') [ C:i , 2005, by (.'~r-i'l ~l~.(-~-r¢%~--.-. asthe (' .~v-~4-~.~-~--S'~_'~,,,~. (ti[le) ofthe Corpus Christi Business and Job Development Corporation, a Texas nonprofit corporati6n, on behalf of the corporation. REBECCA HUERTA ~' Notary Publir ~ ATTEST: City Secretary Dale: APPROVED AS TO FORM: Lisa Aguilar Assistant City Attorney for the City Attorney RANDY FARRAR DBA MIRAMAR HOMES / ,~ TiUe Printed name: '/'('"~"~I/ CITY' OF CORPUS CHRISTI Date: ACKNOWLEDGMENT STATE OF TEXAs § § KNOW ALL BY THESE PRESENTS: cou. or NVECES ;hoimS '?sS. trument was acknowf~ged before me On BERTHA I, BUTROVICH ) Date: Maker: Maker's Address: EXHIBIT A REAL ESTATE NOTE Payee: CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION c/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%) Terms of payment: This Real Estate Note shall be due and payable upon the eadiest of the following events: Sale or transfer of the property described in this Note; Maker ceases to occupy the property as principal residence; or foreclosure of home. The term "principal residence" means a dwelling which, depending on all of the facts and circumstances, including the good faith intent of the occupant, is occupied primarily for residential purposes by the owner. Security for Payment: Deed of Trust between Maker and Payee covering the following property: Maker promises to pay to the order of Payee at the place for payment and according to the terms of payment the principal amount plus interest at the rates stated above On default in the payment of any part of the principal, when due, or failure to comply with any or the agreements and conditions in any and all instruments given to secure this note including, without limitation any default under the terms and provisions of the Real Estate Note, this Note shall at the option of the holder hereof, at once mature the whole of this note, without notice at the election of Payee. Maker and each surety, endorser, and guarantor waive all demands for payment, presentations for payment, notices of intention to accelerate maturity, protests, and notices of protest. Affordable Housing - Miramar Homes.doc Page 11 of 17 In the event this note is placed into the hands of an attomey 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. Each Maker is responsible for the entire amount of this note. 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 wrthout notice. MAKERS Affordable HouNng - Miramar Homes.doc Page 12 of 17 EXHIBIT B DEED OF TRUST Date: Grantor: Grantor's Mailing Address (including county): Corpus Christi, Nueces County, Texas 784 Trustee: Mary Kay Fischer, City Attomey, 1201 Leopard Street, Corpus Christi, Texas 78401 Beneficiary: Corpus Christi Business and Job Development Corporation Beneficiary's Mailing Address (including county): P.O. Box 9277 Corpus Chdsti, 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 Christi Business and Job Development Corporation Final Maturity Date: Due upon earliest of following events: (1) sale 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 Lien(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 per[orms 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 priority as it is established in this deed of trust; 4. maintain, in a form acceptable to Beneficiary, an insurance policy that; a. covers all improvements for [heir 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; 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 pdor 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 principal 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 pdmadly in a trade or business (as evidenced by the use of more than frfteen 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 not~ Beneficiary immediately if at any time the property ceases to be used as Grantor's principal residence. 10 Due on Sale Requirement. If Grantor conveys or contracts to convey the property, or any interest 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 writing a substitute or successor trustee, succeeding to all rights and responsibilities of Trustee. 2. I[ the proceeds of the note are used to pay any debt secured by prior liens, Beneficiary is subrogated to all of the dghts and liens of the holders of any debt so paid. 3. Beneiiciary may apply any proceeds received under the insurance policy either to reduce the note or to repair or replace damaged or destroyed improvements covered by the policy. 4. If Grantor fails to perform any of Grantor's obligations, Beneficiary may perform those obligations and be reimbursed by Grantor on demand at the place where the note is payable for any sums so paid, including attorney's fees, plus interest on those sums from the dates of payment at the rate stated in the note for matured, unpaid amounts. The sum to be reimbursed shall be secured by this deed of trust. 5. If Grantor defaults on the note or fails to perform any of Grantor's obligations or if default occurs on a pdor lien note or other instrument, Beneficiary may: a. declare the unpaid principal balance and eamed interest on the note immediately due; Affordable 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. Tru,.tee'e 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 properly to the highest bidder for cash with a general warranty binding Grantor, subject to pdor 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 properly, from pdvate 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 Af~rd~ble Housing - Miramar Home~.doc Page 15 of 17 terminate Grantor's license to collect and then as Grantor's agent may rent the property if it is vacant and collect all rent and other income and receipts. Beneficiary neither has nor assumes any obligations as lessor or landlord with respect to any occupant of the property. Beneficiary may exercise Beneficiary's rights 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 dghts 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 pdce 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 ,lob 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: Affon:~ble Housing - Mir~"nar 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 City of Corpus Christi Economic Development Office P. O. Box 9277 Corpus Christi, Texas 78469 Affordable Housing - Miramar Homes.doc Page 17 of 17 5417 Whitemarsh Corpus Christi, TX 78413 361-992-9583 Proposal Number Two 4a Board 2004 Affordable Housing Program 5417 Whitemarsh Corpus Christi, TX 78413 361-992-9583 February 4, 2005 4a Board Affordable Housing Program City of Corpus Christi Attention: Hector G. Vallejo, Acting Director 1201 Leopard Street Corpus Christi, TX 78401 RE: Grant Proposal Number Two Gentlemen: We are requesting a grant of $500,000 to provide housing assistance to 30 families that qualify under the income guidelines as shown in your RFP and to establish a revolving fund fi.om which to fund additional homes after the current sales tax program expires. We are also including the following: l. Letter of Qualifications and Experience 2. Calmeity to perform 3. Acknowledgment and Certification 4. G-rant narrative The contact person for this proposal is Randy Farrar, DBA Miramar Homes. I can be contacted at 361-992-9583, or on my cell phone at 361-816-5781. Yom truly, DBA Miramar Home 5417 Whitemarsh Corpus Christi, TX 78413 361-992-9583 Qualifications and Experience: I am uniquely qualified to fulfill the grant request as I have 20+ years of experience in the home-building industry. I have built homes, sold homes, and performed warranty service on homes_ I have been active in affordable housing for the last four years, the past two years in Corpus Christi and the prior two years in Houston working with thek HOH grant program. In Houston I was responsible for producing approximately 30 grant homes and approximately 700 non grant homes_ 5417 Whitemarsh Corpus Christi, TX 78413 361-992-9583 Capacity to Perform: Capacity to perform is influenced by several factors, a. Conslxuction Personnel b. Borrowing Capacity c. Lot Availability d. Subcontractor Availability e. Material Suppliers Based on b_istorical performance in the home-building industry, we can produce 60 houses per year without additional personnel. This assumption is based on a four month construction cycle and a work load of 15 houses per cycle. Additional production, if required, would be accomplished by hiring additional Construction Managers. We have construction borrowing capacity with three area banks so that capital considerations should not be a limiting factor. The subdivision in which we plan to build the houses, CAP Estates, has a lot availability in phase one in excess of forty lots so lot availability should not be a limiting factor_ Based on our request of 30 grants, we propose to start one house each week starting in late March or early April 2005. The subcontractors that lake the longest time firm'ne are the foundation and frame, and they take one week or less each. We have a subcontractor for all phases of construction and at least one back up subcontractor for each of these trades so that labor is not a limiting factor. I have open accounts with all of the suppliers that are necessary to build a home from start to finish and they are large enough so that a shortage of materials should not occur. 5417 Wbitemarsh Corpus Christi, TX 78413 361-992-9583 Acknowledgment and Certification: This is to acknowledge and certify that Randy Farrar, DBA Miramar Homes, can and will meet all RFP provisions and build to or exceed minimum specifications. Acknowledged and Certified Randy F/~Car, DBA Miramar rlomes 5417 Whitemarsh Corpus Christi, TX 78413 361-992-9583 Proposal Number Two Grant Proposal We are requesting a grant of $500,000 in order to assist 30 families to purch~e new homes with each family receiving $15,000 to $20,000 to buy down the mortgage and or pay closing costs on their home. The assistance would be in the form ora loan repayable to the 4a Board that would not bear interest and would not be payable until the home resold. Since the sales tax program for aflbrdable housing is only a fifteen year program, this would form a revolving fund which could be used to fund additional houses after the sales tax money expires. This would allow the family to benefit fi.om the appreciation on the entire value of the home without the burden of any additional payments. The criteria for awarding these grants would be the income guidelines as supplied in your RFP and the cost of the home as explained below. This would allow us to leverage the $500,000 into improved property with a value of approximately $2,500,000, and houses for 30 families that may not otherwise be able to achieve home ownership. Our time frame for this request is based on the backlog of buyers needing assistance. The mortgage company with which I have a working relationship has applications for 100+ persons that have requested grant money fi.om the city and they meet the grant guidelines. However, the city only has enough HUD money for 27 grants this year, so that this grant request would help fill that void. This mortgage company does not have a working relationship with any other builder. We could start writing earnest money contracts as soon as we are notified of our grant award. ConsU'uction of the houses could then start in approximately 30 to 45 days based on the buyers obtaining mortgage company loan approval. I am projecting the start of conslrucfion in early May 2005_ In order to keep an orderly and well managed job site, we would only start one house per week. Under this process the first home would start in early May 2005, and the last home would start in mid November 2005. The construction time on a new home is thiee to four months with the variable being weather. This would mean that the fn'st home would be complete about mid August 2005 with one house completing each week thereafter_ The last home would be complete in mid February 2006, which would complete the grant program. The houses built under this program will range in size from 1,050 sq fl to 1374 sq ft. The price range will be fi.om Sg1,500 to $93,500. They will all have carpet and vinyl flooring, appliance package, plastic laminate kitchen counter tops and cultured marble bathroom vanity tops. They all have 3 bedrooms and 2 baths with garages rlt~ging from 1 car to 2 car with and overhead garage door_ The floor plans that have asales price of under $90,000 will qualify for a $15,000 grant and the homes over $90,000 will qualify for a $20,000 grant. "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. Every question must be answered, if the question is not applicable, answer with "NA". FIRM NAME: ../"~./.~*,~tt'f~.f~./~.*~.,~'~ ............................. ¢ .............................. , ............................................ ...... ...................Z4'.¢2 ........... FIRMis: 1. Corporation [] 2. Partnership [] 3; SoleOwner,~ 4. Association [] 5. Other [] DISCLOSURE QUESTIONS If additioaal space is necessary, please use [he reverse side of this page or attach separate sheet. State the names of each "employee" of the City of Corpus Christi haviog an %wnership interest" constituting 3% or more of [he ownership in the above named "firm". Name Job 'Rile and Cib/Departmer~t (if knowr~ 2 State the names of each "offciat" of the City of Corpus Christi havrng an ~ownership interest" constituting 3% or more of the ownership in [he above named "firm". Name Title ................. .................................................................................................................... State the names of each "board member" of the City of Corpus Christi hav[h9 an 'ownership interest" constituting 3% or more of the ownership in the above named "f~rm". Name Board, Commission or Committee .................... .......................................................................................................................... 4 State the names of each employee or officer of a "consultant" for the City of Corpus Christi who worked on any matter related to the subject or [his contract and has an "ownership interest" constituting 3% or more of the ownership in [he above named "firm". Name Consultant .................... CERTIFICATE t certify that alt 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 of Signature of Certi~ing Person:/~_,~...~ Date:.....3'~/(~/.~..~ ........................................