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HomeMy WebLinkAboutC2005-237 - 4/26/2005 - Approved AFFORDABLE HOUSING PROGRAM AGREEMENT CITY OFCORPUSCHRISTI NEW CONSTRUCTION HOMEBUYER ASSISTANCE PROGRAM This Affordable Housing Program Agreement ("Program Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation") and the City of Corpus Christi ("City") a Texas home rule municipality. WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon'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 Christi 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 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, the City through its Neighborhood Services Department manages several programs to assist eligible citizens in purchase of affordable housing; WHEREAS, the City submitted a proposal to the Board to request grant funds for a forgivable loan program, to be combined with the funds provided by the Corpus Christi Community Development Corporation's current New Construction Homebuyer Assistance Program; WHEREAS, the Board has determined that it is in the best interests of the residents of the City of Corpus Chdsti that the City be awarded affordable housing funds, by execution of this Program Agreement, to accomplish the affordable housing project described in this agreement and in the City's proposal In consideration of the covenants, promises, and conditions stated in this Program Agreement, the Corporation and the City agree as follows: 1. Program Agreement to Implement Affordable Housing Project. This Program Agreement between the Corporation and the City is executed to implement the promotion and development of an affordable hoH.~inn nrni~,r'f nr~r~osed by the City in response to the Board's request for proposals 2005-237 04/26/05 Res026238 CCBJDC ("Project Response"). The Project Response submitted by the City titled "Project: New Construction Homebuyer Assistance Program" ("Project") is attached to this Program Agreement as Exhibit C and is incorporated in this Program Agreement by reference. 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. b. Eligible homeowner ("Homeowner") may apply to the City to receive a deferred forgivable loan of range of $7,500 to $10,000 of the funds provided under this Program Agreement for down payment and closing costs to purchase new single-family owner- occupied home described in this section. Said home must meets the guidelines and criteria outlined in the Corporation's Request for Proposals for Affordable Housing. Said home must also meet 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. c. The funds provided under this agreement to Homeowner shall be combined with Corpus Christi Community Development Corporation's New Construction Homebuyer Assistance Program so that the Homeowner receives a total of $15,000 to $20,000 in the form of a 0% deferred forgivable loan. d. For each year that the Homeowner occupies the home as his or her primary residence, one thousand dollars of the loan shall be forgiven. The City shall require Homeowners 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. The City shall file the original executed documents in the official public records of Nueces County. After recording, the City must ensure that the original executed and filed documents are returned to the Corporation. The Director may authorize modifications to Exhibits A and B to accomplish purpose of this Program Agreement. e. Prior to the distribution of funds provided under this Program Agreement, the Director of the City's Neighborhood Services Department or the Director's designee ("Director*) shall 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. f. The City shall provide homeownership counseling to all qualified Homeowners of homes purchased with funds provided under this Program Agreement. g. The City shall recruit potential homebuyers for affordable housing ownership pursuant to this Program Agreement. The Director of 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. 5. Payment of Funds. The Corporation authorizes the City to grant, from allocated sales tax revenues, up to $130,000 for down payment and closing costs for eligible homebuyers pursuant to this Program Agreement. Eligible homebuyers may qualify for a forgivable loan of funds provided under this Program Agreement of maximum of $10,000. 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 involved in the closing transaction. Supporting documentation, such as closing and settlement forms, must be provided to the City Director prior to processing a request for loan. 6. Documentation and Reports. The Cit~ 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, the City 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 the City upon the completion of counseling. The City 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 Corporation's designee. Director shall submit a performance repor~ ("Report") to 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 home purchases and include any supporting documentation required to substantiate the written narrative contained in the Report. 7. 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. 8. Severability. 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 during 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. 9. Compliance with Laws. The parties shall comply with all applicable federal, State, and local government laws, rules, regulations, and ordinances which may be relevant to performance under this Program Agreement. 10. 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. 11. Acknowledgment and Construction of Ambiguities. The parties expressly agree that each has independently read and does understand this Program Agreement and each path/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. 12. Warranties. The City warrants and represents to Corporation the following: a. The City has the authority to enter into and perform, and will perform, the terms of this Program Agreement. c. The City 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. The City has received a copy of the Texas Development Corporation Act of 1979, Art. 5190.6, Vernon'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, the City 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 the City are duly authorized to execute this Program Agreement. 13. 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 default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time the City 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 rights or remedies or elect to terminate this Program Agreement on account of the default. 14. Notices. a. Any required written notices shall be sent, certified mail, return receipt requested, addressed as follows: If to Corporation: City of Corpus Christi Business and Job Development Corporation Attn: Executive Director 1201 Leopard Street Corpus Christi, Texas 78401 Ifto City: City of Corpus Christi Attn.: Director of Neighborhood Services Department P.O. Box 9277 Corpus Christi, Texas 78469-9277 City of Corpus Christi Attn.: City Manager P.O. Box 9277 Corpus Christi, Texas 78469-9277 c. Notice is effective upon deposit in the United States mail in the manner provided above. 15. Incorporation of other documents. The Corpus Christi Business & Job Development Corporation 4a Board Affordable Housing Request for Proposals issued October 22, 2004 are incorporated into this Program Agreement. 16. Relationship of Parties. In performing this Program Agreement, the Corporation and the City shall act in an individual capacity, and not as agents, representatives, employees, employers, partners, joint-venturers, or associates of one another. The employees or agents of either party may not be, nor be construed to be, the employees or agents of the other party for any purpose 17. Nonassignment. This Program Agreement may not be assigned, mortgaged, pledged, or transferred without the pdor written consent of the other parties to this Program Agreement. 18. Non-discrimination. The City may not discriminate nor permit discrimination against any person or group of persons on the grounds of race, gender, disability, religion, age, or national origin in any manner prohibited by the laws of the United States or the State of Texas. 19. 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. 20. Entire Agreement. This Program Agreement and the referenced and incorporated documents constitute the entire agreement between the Corporation and the City 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 Sig nature~"~.( Printed name: Date; ACKNOWLEDGMENT STATE OF TEXAS § § KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES § Th~.i. nstrum~ w~.acknowledge0 before me on ~"~..._[,.~ ~. ¢'i ,2005, by (.:7-~_, ~ H"~{(~,-v~ asthe ~ .~.£,-.,, ~,/p4.--,,'%'~"'~ (title) of the Corpus Chdsti Business and Job Development Corporation, a Texas nonprofit corporation, on behalf of the corporation. ATTEST'~ ~,.~"~/.~J STATE 0F TE~S ~ ~ My Comm. ~p. 08-~ 2007 Armando Chapa Ci~ Secre~ Date: ~ NOTARY PUBLIC, State of Texas CITY. CHRISTI Ge~;)Cge K. Noe Cj~ Manager Date: ~'//') 2~ APPROVED AS TO FORM: Lisa Aguilar Assistant City Attorney for the City Attorney EXHIBIT A REAL ESTATE NOTE Date: Maker: Maker's Address: Payee: CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION c/o City of Corpus Christi, 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 note amount ranges from $15,000 to $15,999; 16 years if the note amount ranges $16,000 to $16,999; 17 years if the note amount ranges $17,000 to $17,999; 18 years if the note amount ranges $18,000 to $18,999; 19 years if the amount of loan ranges from $19,000 to $19,999; and 20 years if amount of loan is $20,000. 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 property 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. Affordable Housing City New Cons[ruction Homebuyer Assisiance Program.doc Page 8 of 14 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 Affordable Housing City New Construction Homebuyer Assistanc~e Program.doc Page 9 of 14 EXHIBIT B DEED OF TRUST Date: Grantor: Grantor's Mailing Address (including county): Corpus Christi, Nueces County, Texas 784 Trustee: Mary Kay Fischer, City Attorney, 1201 Leopard Street, Corpus Chdsti, Texas 78401 Beneficiary: Corpus Christi Business and Job Development Corporation Beneficiary's Mailing Address (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: Make~ Payee: Final Maturity Date: Due upon earliest of following events: Grantor(s) cease to occupy property as principal residence. Terms of Payment: As therein provided Property (including any improvements): Corpus Christi Business and Job Development Corporation (1) sale or transfer of property, or (2) 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 performs ali 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 City New Construction Homebuyer Assistance Program.doc Page 10 of 14 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 al~ 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 pdor lien notes that Grantor is personally liable to pay and abide by all prior 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 primarily in a trade or business (as evidenced by the use of more than fifteen 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 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 wdtten 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 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 dghts and liens of the holders of any debt so paid. 3. Beneficiary 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. 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 [hose 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; 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. Affordable Housing City New Construction Homebuyer Assistance Program doc Page 11 of 14 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. Trustee'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 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. 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 supedor 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 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 properly. 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. Affordable Housing City New Construction Hornebuyer Assistance Program doc Page 12 of 14 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 properly 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, no[ice 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 pdmary 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: 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 COUN'I'Y OF NUECES This instrument was acknowledged before me on the day of ,2005, by A~rdable Housing CH New Construction Homebuyer ~sislan~ Pr~ram.d~ Page 13 of 14 Notary Public, State of Texas AFTER RECORDING RETURN TO: Corpus Christi Business and Job Development Corporation r_Jo City of Corpus Christi Economic Development Office P. O, Box 9277 Corpus Christi, Texas 78469 A[fordable Housing City New Construction Homebuyer Assis/anc~ Program.doc Page 14 of 14 Response to 2004 Request for Proposal "4A Board Affordable Housing Program" Submitted By: City of Corpus Christi NEIGHBORHOOD SERVICES DEPARTMENT Project: New Construction Homebuyer Assistance Program Januaw26,2005 LETTER OF TRANSMITTAL City Secretary Office City of Corpus Christi Attention: Armando Chapa, City Secretary 1201 Leopard Corpus Christi, TX 78469-9277 Dear Mr. Chapa: Enclosed is the City of Corpus Chdsti, Neighborhood Services Department's "New Construction Homebuyer Program" proposal requesting $200,000 in the form of a grant. This is in response to the City's 4a Board Affordable Housing Program Request for Proposal and is submitted for consideration and funding under the homebuyer assistance category. We have reviewed the proposal requirements and we are submitting the proposal documents. You may contact me at 880-3045 regarding this proposal. We look forward to working with the 4a Board's Affordable Housing Program. Sincerely, ,fun Wagner, Actin~ QUALIFICATIONS & EXPERIENCE General The City of Corpus Christi through the Neighborhood Services Department (NSD) is applying for a grant in the amount of $200,000 with the 4a Board Affordable Housing Program. It is our desire to continue to assist in the development of affordable housing units by expanding the number of affordable housing units in the City of Corpus Christi. Neighborhood Services Department is a main entity that has carried the responsibility of developing and promoting affordable housing in the City of Corpus Chdsti for iow income and very Iow income families for the last 26 years. Qualifications & Experience Neighborhood Services Department has extensive experience managing housing programs for very Iow and Iow and moderate income families. NSD has worked with new construction and rehabilitation programs for the past 26 years and has assisted over a thousand homeowners and homebuyers with their housing needs. The programs administered by NSD are monitored by HUD and are found to be managed within approved program guidelines. NSD has a staff that is highly qualified and experienced in managing housing programs. The team that will be managing the 4a Board Affordable Housing Program has over 26 years experience administering housing programs that assist Iow income families. Cun'ently, this team manages a $3,000 Homebuyer Assistance Program and a New Construction Homebuyer Program. Additionally, this team manages a Rehabilitation Loan Program, Demolition and Replacement Loan Program and an Emergency Home Repair Grant Program. Through these programs approximately 500 families are assisted on an annual basis. Neighborhood Services Department also has played an integral role in assisting other community organizations in developing their capacity to provide affordable housing. NSD provides support staff for the Community Development Corporation (CDC) which was established to provide and assist in creating affordable housing. NSD also was instrumental in assisting Nueces County Community Action Agency with establishing their homebuyer programs. CAPABILITES STATEMENT Neighborhood Services Department (NSD) has administered and managed various housing programs including homebuyer programs. During the last 26 years NSD has assisted over one thousand families through its vadous programs. Throughout these years NSD has provided assistance in rehabilitation, emergency repairs, and home buying and is highly adapt at working with Iow income households, realtors, builders and lenders. NSD is responsible for managing and administering the funds the City of Corpus Christi receives from the Department of Housing and Urban Development. During the past 26 years NSD has received an average of 5 million dollars per year to carry out various housing programs and assist community non-profit organizations with their facility needs. NSD staff has shown they are capable of managing HUD funds and following federal regulations. ACKNOWLEDGEMENT This is to acknowledge that we have reviewed all the provisions of the request for proposal and further certify we will comply with all its requirements. LEVEL OF ASSISTANCE ProJect Scope: Neighborhood Services Department proposes to provide a deferred forgivable loan of $7,500-$10,000 as a match to the Corpus Christi Community Development Corporation's current "New Construction Homebuyer Assistance Program." The 4a funds will be combined with "New Construction Homebuyer Program" funds to provide a total of $15,000-$20,000 in the form of a 0% deferred forgivable Loan to be amortized at $1,000 per year that may be used for reducing the purchase price of a home and closing costs. We anticipate assisting 23 households with the $200,000. The home being purchased must be used as the homebuyeds principal residence and is required to paid back should they move out before the affordable pedod expires. This program will work in conjunction with the Corpus Christi Community Development Corporation's (CCCDC) "New Construction Homebuyer Program." The CCCDC receives funds from the City's HOME Program to assist Iow income households with the purchase of a new house. Any monies that are paid back will be used as program income to assist other homebuyers. The CCCDC uses builders obtained through a Request for Proposal (RFP) process and requires the builders to construct homes according [o their minimum construction standard. The home must be at least 1050 sf; 3-bedroom; 1 ½ baths; one car garage; meet FHA requirements; meet VA requirements; and State Windstorm Code. The CCCDC's "New Construction Homebuyer Program" requires that homes constructed must be under $80,000 including the lot. Leveraging: NSD plans to leverage 4a funds with HUD HOME Program funds that the CCCDC receives for its "New Construction Homebuyer Program." The CCCDC receives an average of $497,000 for its "New Construction Homebuyer Program" and assists approximately 25-27 homebuyers. Currently, a Number Assisted: Time Frame: homebuyer is assisted with $15,000 to $20,000 through the CCCDC's Program for down payment and closing costs. The $200,000 will be used in conjunction with the CCCDC program enabling us to assist an additional 23 homebuyers by leveraging both programs. Neighborhood Services Department estimates being able to assist an additional 23 families should it receive the $200,000 in 4a funds. NSD anticipates carrying out this Program in conjunction with its exiting "New Construction Homebuyer Program" and completing the project within a one year period. 04 NSD4 a NewOonst~'uctlo n H PP roposal