HomeMy WebLinkAboutC2006-536 - 11/14/2006 - ApprovedAFFOI~DABLE HOUSING PROGRAM AGREEMENT
JOHN MIKULENCAK DBA EXTREME HOMES OF TEXAS
FOR A
NEW CONSTRUCTION HOMEBUYERS ASSISTANCE PROJECT
This Affordable Housing Program Agreement ("Program Agreement") is entered
into between the Corpus Christi Business and Job Development Corporation
("Corporation"), the City of Corpus Christi ("City"), and John Mikulencak dba Extreme
Homes of Texas ("Extreme Homes").
WHEi~fAS, 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
busirt~ss enterprises at the rate of one-eighth of one percent to be imposed for 15
yea rs;
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;
WHEF~AS, the 1/8 cent sales tax authorized by passage of Proposition 2 and
alioca#ed under Proposition 2B for affordable housing was subsequently enacted by the
City's City Council ("City CounciP') and filed with the State Comptroller of Texas,
effective April 1, 2003, to be administered by the Corporation's Board of Directors
("Board");
VItHERfAS, the Board issued a request for proposals for affordable housing
projec#s
VI~HER~AS, Extreme Homes submitted a proposal to the Board to request funds to
provid~e homebuyer assistance of down payment and closing costs toward the purchase
of new construction homes;
VI~-IERfAS, the Board has determined that it is in the best interests of the residents
of the City of Corpus Christi that affordable housing funds be awarded, by execution of
this Program Agreement, to accomplish the affordable housing project described in this
agreement and in Extreme Homes' proposal.
2006-536
11~14~06 :f Texas2006-doc
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Mikulencak, John
~.. ..,~ .~ ~.~ ~ _.. .,.~,
WHE~iEAS, Section 21 of the Texas Development Corporation Act of 1979, Article
5190.6, Vernon's Texas Revised Civil Statutes, requires the City Council to approve all
programs and expenditures of the Corporation;
WHEf~EAS, the City Council approved the Corporation's affordable housing
program and selection of Extreme Homes as a recipient of affordable housing funds on
November 14, 2006; and
In consideration of the covenants, promises, and conditions stated in this Program
Agreement, the Corporation, Extreme Homes and the City agree as follows:
1. Progra~tn Agreement to Homebuyer Assistance for New Construction
Affardabf~a Housing Project. This Program Agreement between the Corporation, the
City, and Extreme Homes is executed to implement the promotion and development of
an affordable housing project proposed by Extreme Homes in response to the Board's
request for proposals ("Project Response"). The Project Response submitted by
Extreme Homes, entitled "Homebuyer Assistance Project" ("Project") is attached to this
Program Agreement as Exhibit A 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 alt 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. S~rvice~ 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. Satvices to be Provided by Extreme Homes.
a. Extreme Homes shall complete construction of sixteen (16) 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 a minimum of 1147
squ~re feet, and sell for $85,000, inclusive of all closing costs, and including
cost of lot. Extreme Homes shalf provide market appraisal of each home.
b. Eligible homeowner ("Homeowner") shall receive a forgivable loan of
$10,000 of the funds provided under this Program Agreement to assist with the
down payment and closing costs of a home described in this section. The loan
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w~lf be forgiven a~{ter 5 years of ownership and if the buyer moves out prior to
the 5 years there will be a 20°r6 penalty per year until the loan is repaid.
c. Extreme Homes will coordinate the homebuyer assistance through the
City of Corpus Christi, Neighbofiood Services Department, Housing Assistance
Program Division for eligibility according to established Federal Housing Income
Guidelines for Affordable Housing Programs.
d. Prior to the distribution of funds provided under this Program Agreement,
E~reme Homes must coordinate with the Director of the City's Neighborhood
Services Department or the Director's designee ("Director") to review the
ar~icipated purchase transaction as it pertains to eligibility, location and amount.
e. Extreme Homes shall recruit potential homebuyers for housing ownership
to be constructed as affordable housing pursuant to this Program Agreement.
Extreme Homes shall ensure that each potential homebuyer's family qualifies as
a la+a-to-moderate income family in accordance with Federal, State and City
housing laws, rules, and regulations.
6. L~an of Funds.
a. The Corporation ~athorizes the City to grant, from allocated sales tau revenues,
up to $160,067 far homebuyer assistance of down paymenf and closing costs of
new homes for eligible homeowners pursuant to this Program Agreement.
Eli~le homeowr~r of homes with total price of $85,000 may qualify for a
maximum $10,000 forgivabte loan.
b, Any payment of funds by the Corporation under the provisions of this Program
Agne~ement are s~jeet to the receipt of safes taxes, by the City, from the Office
of the Comptrotler of the State of Texas and payment of the sales taxes to the
Corporation by the City.
c. Payment of the buy-down funds will be made by the City directly to the title
corr~any involved in the dosing transaction. Supporting documentation, such
as c~osing and sett~ement forms, must be provided to the City Director by
Extreme Homes prior to processing a request for loan.
d. Extrome Homes shali secure for the Corporation the recapture of all loans
prov~iied to Homeowner under this Program Agreement by having each
Hor~eowner execu~te a note secured by a deed of trust that represents a second
morEflage lien on the property. Recapture shall occur upon the earlier of the
following events: i. Saie of home; ii. Homeowner no longer occupies the home
as p~imary residence; or iii. Foreclosure of home.
7. Doeuma~tation and R~ports.
a. Extreme Homes st~ll maintain all documentation relating to the receipt and
expenditure of the funds provided under this Program Agreement for a period of
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three years following the expiration of this Program Agreement or for such
longer period as may be required by Federal or State law.
b. Extreme Homes shall provide access to a~l 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, Extreme Homes shall provide to the City Manager any
information pertinent to this Program Agreement, as may be requested during
the term of this Program Agreement.
c. Extreme Homes 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 written narrative contained in the
Report
8. Amenc~nents 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 unenforceable 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.
b. 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.
10. Comp~ance with Laws. Extreme Homes shall comply with all applicable Federal,
State, and local government laws, rules, regulations, and ordinances which may be
relevant to Extreme Homes's performance under this Program Agreement.
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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 Extreme Homes' execution of this Program Agreement, Extreme Homes 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. Extreme Homes must fully indemnify and hold
harmless the City of Corpus Christi, the Corpus Christi Business and
Job Deve~opment Cvrporation, and their officers, employees, and
agents (i~~ereinafter, collectively "Indemnitees") from and against any
and all li~ebility, damage, /oss, claims, demands, expenses, suits, and
causes of action of any nature whatsoever on account of injury or
dant~rge to person (including, without limitation on the foregoing,
pre~ises defects, workers' compensation, and death claims) or
property Ioss or darnage 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 w$y connect~l with, either proximately or remotely, wholly or
~n p~rt, any activities by Extreme Homes, its officers, employees,
agents, members, invitees, or indepe-adent contractors with respect to
this Program Agreement or the Project that is the subject of this
Proc~ram Agreement, regardless of whether such injuries, death, or
damages are caused, or are claimed to be caused, by the contributory
negl~gence of any of the lndemnitees, but not if caused by the so/e
negl~-ence of the Indemnitees unmixed with the fault of any other
person or entity. Extreme Homes covenants and agrees that if
Inde~nnitees, or any of them, are made a party to any litigation against
Extreme Komes or in any litigation commenced by any party other
than E'xtreme Homes relating to this Program Agreement or Project,
Extre~ne Momes sha{l, upon receipt of reasonab/e notice regarding
commencement of litigation, at its own expense, investigate all claims
and demands, attend to their settlement or other disposition, defend
Indetttnitees in al1 actions based thereon with legal counsel
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sat~sfactory to Indemnitees, and pay aU charges of attorneys and a/l
other caaa~ts and expenses of any kind arising from any said liability,
dar~age, loss, demand, claim, or action.
14. Warranties. Extreme Homes warrants and represents to Corporation the foilowing:
a. Extreme Homes 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 Christi, Texas.
b. Extreme Homes has the authority to enter into and perform, and will pertorm,
the terms of this Program Agreement.
c. Extreme Homes 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. Extreme Homes 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,
Extreme Homes 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 Extreme Homes
are duly authorized to execute this Program Agreement on behalf of Extreme
Homes.
15. Events of Default. The following events constitute a default of this Agreement:
a Failure of Extreme Homes 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 Extreme Homes 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 rnaterial respect when made;
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c Any judgment is assessed against Extreme Homes or any attachment or other
levy against the property of Extreme Homes with respect to a claim remains
unpaid, undischarged, or not dismissed for a period of 30 days.
d Extreme Homes makes an assignment for the benefit of creditors.
e Extreme Homes files a petition in bankruptcy, or is adjudicated insolvent or
bankrupt.
f. If taxes on property owed by Extreme Homes become delinquent, and
Extreme Homes fails to timely and properly follow the legal procedures for
protest or contest.
g. Extreme Homes 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 Extreme Homes
is in default according to the terms of this Agreement, the Corporation or City shall notify
Extreme Homes in writing of the event of default and provide 60 days from the date of
the notice ("Cure Period") for Extreme Homes to cure the event of default.
17. Results of Uncured Default. After exhausting good faith attempts to address any
default during the Cure Period, and taking into account any extenuating circumstances
that might have occurred through no fault of Extreme Homes, 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. Extreme Homes 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 Period until fully paid, all funds not used in
accordance with this Program Agreement.
b. Extreme Homes shall pay Corporation reasonable attorney fees and costs of
court to collect amounts due to Corporation.
c. The Corporation shall have no further obligations to Extreme Homes 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 Vll~iver.
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.
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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 Extreme Homes default may not be considered
an estoppel against the Corporation.
d It is expressly understood that if at any time Extreme Homes 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.
19. Notices.
a Any required written notices shall be sent, certified mail, return receipt
requested, addressed as follows:
If to Extreme Homes:
John Mikulencak dba Extreme Homes of Texas
3826 Apollo
Corpus Christi, Texas 78413
If to Corporation:
City of Corpus Christi Business and Job Development Corporation
Attn: Executive Director
1201 Leopard Street
Corpus Christi, 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.
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20. Incorporation of o~er documents. The Corpus Christi Business & Job
Dev~lopment Corporatian 4A Board Affordable Housing Request for Proposals issued
January 9, 2006 is incorporated into this Program Agreement.
21. Relationship of Parties. In performing this Agreement, the Corporation, Extreme
Homes 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. Extreme Homes may not assign, mortgage, pledge, or transfer
this Program Agreement or any interest contained in this Program Agreement without
the prior written consent of the other parties to this Program Agreement.
23. Non-d~scrimination. Extreme Homes may not discriminate nor permit
discrFmination against any person or group of persons on the grounds of race, gender,
disalaility. religion, age, or national origin 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. Captians. 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. lntire Agreement. This Program Agreement and the referenced and
incorporat~d documents constitute the entire agreement between the Corporation, the
City, and Extreme Homes 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 each party's
required performance under this Program Agreement.
ATTEST:
,~
f
Armando Chapa ~- -
City Secretary
CORPUS CHRISTI BUSINESS &
JOB DEVELOPMENT CORPORATION
Gail~offman, Chairperso
~~, ,
~L ~ ~
~ te: J t t
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ACKNOWLEDGMENT
STATE OF TEXAS §
§ KNOW ALL BY THESE PRESENTS:
COll1NTY OF NUECES §
This instrument was acknowledged before me on I\~c, t-~ r~~-c
~ ~~ , 2006,
by GAIL HflFFMAN as the Chairperson of the Corpus Christi Business and Job
Develop ~ onprofit~orporation, on beh~lf of the orporation.
~ ~~= ~'~,n~ TAMEIIA L RILEY
,~~ '~ ` , f
Not~ry PubBc +
5TA?E OF TEXAS `~~" ";~ ~ ~ ~., ~ C.
~t,,,~,~^'~ My Comm. Exp. 05-26-2008 NOTARY PUBLIC, State of Texas
ATTEST;
_~/ ~ ~ --
Armar~do Chapa
City Secretary
Date: _ ~r~~-r f a b --
APPROVEO AS TO FOR~IA: ~(ofQ,~,h~9 ,~~
,
CITY OF CORPUS CHRISTI
Ge r K. Noe
C y Manager
Date: ( ~ J Z. ~ I c. ~
G~ . Srnith' -
Assistant City Attorney
for the City Attorney
JOHIV MIKULENCAK DBA EXTREME HOMES
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J n Mikule ak Title
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Page 10 of 18
ACKNOWLEDGMENT
STATE OF TEXAS §
§ KNOW ALL BY THESE PRESENTS:
COIJNTY OF NUECES §
This instrument was acknowledged before me on 7J Ll L/~'/y7 ~t~ r l,(~ , 2006,
by John Mikulencak dba Extreme Homes.
r.
'=u.ic~r~lu'L. ' ~l ~...~f ~'
NOl~ RY PUBLIC, State of Texas
~--------
•-"" SYLVIA A RICE
~~ ~ Notuy PubNc
'~ ~~ f STATE OF TEXAS
~~,,,_,,..+~.~ My Comm. Exp. 08•25-200a
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EXHIBIT A
REAL ESTATE NOTE
Date:
Maker:
Maker's Address
Payee: C4RPUS 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%)
Terms of payment: This Real Estate Note shall be due and payable upon and shall bear
interest at the rate of _% per annum from and after the earliest of the following events: Within
five (5) years from the date of this Note. 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,
inc~uding the good faith intent of the occupant, is occupied primarily for residential purposes by
the owner Payments shall be credited first to accrued interest, balance to principal.
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 ~ayment 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 limita#ion 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
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payment presentations far payment, notices of intention to accelerate maturity, protests, and
notices of protest.
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
principai 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 ali endorsers, suretfes and guarantors of this note hereby severaily 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.
MAKERS
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EXHIBIT B
DEED OF TRUST
Date:
Gran#or
Grantor's Mailing Address (including county~:
Corpus Christi, Nueces County, Texas 784
Tru~tee: Mary Kay Fischer, City Attorney, 1201 Leopard Street, Corpus Christi, Texas 78401
Beneficiary: Corpus Christi Business and Job Development Corporation
Bene~ficiary's Mailing Address (including county):
P O. Box 9277
Corpus Christi, Nueces County, TX 78469
Not~s): That note of even date herewith executed by Maker payable to the order of
Bene#iciary and described as follows:
Date:
Amc~unt:
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
Proplrty (i~acluding any improvements):
Prior Lien(s}(including recording information):
For value r~eived 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 pertorms all
the covenar~ts 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
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vrantor agrees to:
~ keep the property in good repair and condition;
? 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;
~ 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;
v. 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 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 atl 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 praperty or a recreational home or a home which is used primarily in a trade or
business ias evidenced by the use of more than fifteen percent [15%] of the total floor space in
a trade or businessj 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 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
BENE~'ICIA~tY'S RIGHTS
1. Bene#iciary rnay ap~oint in writing a substitute or successor trustee, succeeding to all
rights 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 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 pertorm those
obiigations 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 decfare the unpaid principal balance and earned interest on the note immediately due;
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~. 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
~' purchase the property at any foreclosure sale by offering the highest bid and then have
?he 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.
Trustee's Duties:
I~ requested by Beneficiary to foreclose this lien, Trustee shall:
? either personally or by agent give notice of the foreclosure sale as required by the Texas
Property Code as then amended:
~ 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 amaunt of principle, interest, attorney's fees, and other charges
due to unpaid;
c any amounts requ~red by law to be paid before payment to Grantor; and
d to Grantor any balance.
General Provisions
~ 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
suffer~nce 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 coflecting any such sums.
~ 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
~rantor defaults in payment of the note or performance of this deed of trust, Beneficiary may
Affordabie Haus!ng - ExtremeHomesot Texas2006 doc
Page 16 of 18
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 oblig~#ions 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 shafl 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, Beneficiar 's filin a
tantamount to the a y J proof of c~aim in bankruptcy will be
ppointment of a receiver under Texas law.
~ Interest on the debt secured by this deed of trust shall not exceed the maximum amount
c~f 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
~repayment, 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 ~n the event the property described herein is subject to prior liens in favor of third parties,
any default under any prior lien instrument shatl be a default hereunder.
~~ When the context requires singular nouns and pronouns include the plural.
1 t The term note includes afl 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 part~es
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 principaP 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 , 2006 A.D.
Name:
Name:
Affordable Housing - ExtremeHomesof Texas2006 doc
Page 17 of 18
STATE QF TEXAS
COtJNTY OF NUECES
This instrument was acknowledged before me on the da of
Y , 2006, by
Notary Public, State of Texas
STATE OF TEXAS
COItNTY ~f NUECES
This instrument was acknowledged before me on the day of , 2006, b
Y
Notary Public, State of Texas
AFTER RECORDING RETURN TO:
Cor~as Cl~risti Business and Job Development Corporation
c/o City of Corpus Christi Economic Development Office
P O. Box 9277
Corpus Christi, Texas 78469
Affordable Housing - ExtremeHomesof Texas2006 doc
Page 18 of 18
C~orpus ~hristi Business and Job
~e~relaprrr~nt Corporation Affordable
Housing Project
CA1T~;GQRY I.
HOM~BUYER ASSISTANCE
O~G~tNiZATION:
EXTREME H~MES OF TEXAS
Exhibit A
Eztreme Homes of Teass
3826 Apollo
Corpus Christi, Teaas 78413
361-215-0661
361-215-9995
TO: City of Corpus C}uisti
FROM: Extc^~me Homes of Texas
REs 4A Bantd Af~ordable Housing Proposal
DAT~: Felxvacy 3, 2006
LE1'~R tlN!' TRANSMITTAL:
Extreme H~es of Texas hss beeri building affordable homes over the last two years.
We ct~rently have 56 lots available and ready to start constru~on. We are seel~ing city
assist~ce fc~t funds to aide ~ reaching out to low a~ moder~-te income }wuseholds.
~~i~ ~~' ~s our reclue~ for assis~ce. Attached you will find a plat map and or
Survey of I.u~ts available.
BACI~GR4~7rTD AND pRaJECT CONCEPT:
Hom~buv.r~ Assistance
~~ ~ - s2so,ooo.oo c~t
~1mou~ Pei' ~usehold -~ 10,000.00 per household to be used for down payment and or
closing cost a~istance.
Terms - A fotg~ivable graat a~er 5 years of ownership. If broken a 2p•/o r ear
Repaya~e by t~e buyer back tio the City's Homebuyers A.ssistance ~ y ~~Ty~
P~'am.
Income I.imita - HUD ~income guidelines
# of Ho~sehol~}s Assisted - 25
Start Da1e - In~enediately
Completion I?ate - 90 to l20 Days per House
Total Completion Date - 1 Year
Type of Construction - Minimum 1 l47 squaze feet with 3 Bedrooms, 2 Baths, 1 Caz
Sazagt, Indaor Laundry Room (IVot part ~f Gazage), Ceramic Tile in Kitchen / Bath/
Living at~d Uinning, Stove, Vent Hood, Dishwasher and
8~8'~ ~~sal included.
Sales Price 5~85,000.00
AIl coastru~c~c-n will meet the City of Corpus Chrisbi Building Code, Texas State Bo~acd
of Insvrance Windstorm requirements, FHA/VA requirements md the new Feder~l
~~BY ~d~. I..ots are not loc$ted in a Flood Pian. All Buyers must intend to occuPY
the ho~e as their princip,al ~esidence. All Homebuyers essisted must not currendy oyvn a
home. Funds requested may be used alo with other down
assistance ~ P~3'm~~closing c~st
p~grams available by the City.
QUAi~PZC~TIONS AND EXP~~t~,H('E
Extrerne Ho~cs of Texas is cwrendy owned and operated as a Sole Proprietor by John
Mikulaacak. I have been bu'tlding homes in the Corpus Christi area over the last fivc
foll ~ ve built ovr persoeal home in King Estates and a 2nd home in Country Creek
by u 3~ home out G~apman Ranch ar~ea. I became a CeRified Builder Registered
by the 3ate i~t April of 2004. I have built approximately 23 starter homes in the 1147
square ~oot r~ge since Apri120U4 and 2larger ~~ ~~u~ Fork subdivision. My
P~~Y focus is the starter hosne market.
CAPA~ILI~S
We cur~ently ,~ve two fman 'c~tal intuitions t~t we work with on our interim financing
and cur-~ently 1~ave the asseYs available to assist us in dus proje~t. A finamcial statement
and lett,~r from our current b~ic can ~,e provided upon request.
Rl~'P A~Tf~VL.FDGMEl~i'I'
we are ~urre~y foliowing City and Windstorm Requirements as well as FHA/VA
require~nts. We carry insurance on all homes until sold.
Additio~sl inf~rmation or aa}- questions nceded, please feel fi~ee to contact me at anytime.
.
Sincerely,
~!~~
John Mikulencalc/Owrier Builder
Extreme Homes of Texas
~~~~~ ~
CITY OF CORpUg CHRISTI
~Y ~ Cot~s c~llw oraiw~oe 17t ~2, ~s amend.d, requke~ a~ p~,q~ a~ms aeekinp ~o do amir,ess wi~ the c.ky to
Provide rit#oNowi~ informalion. Cwery must be aiwwered. If 1he qu~ is nat aPPlicab~e, anav~ wry~ ?NA?.
G ~5.+~!.Q.hrl.~......~.~.'. ,U~Q,S O ~r- ~ 0.
8'~1'~~ E'~T ~ ... .......... .... ..~.rl.~.. . ~.. ....................................... . ..... .
.~...a.~~Q.......~5:.~l.~.~.~.~ ....................CITY:...............4:4.t. ~; .`7
F~M k: 1. C,a~por~fon I 1 2. PaMera ................. ... 4.~ "~"~"..
~[) 3. sde owner ,~~' 4. Associetlon [ l
s. oUster [ 1 ...............................................................................................................................................
DtSt~OSURE tX1FS7'IONS
If aiddtlonat ~paae i~ neo~Y~ P~~ use 1he reva~e side of lhis pape or albsch
1- S1e1e ~ na~of e~ch' ~ ~ sheet.
~owrwrsi~ip 1~ 1he sbave~~~ ~~~~ C~iW hsvirp an'o~n~p i~resC oa~ii~ng 396 or mor~e oi
.......~ .......... ...................IU ~ N ,~.... .~ T~ .~ ~, ~~,,,~ ~~,~„~,,,,,
z. ~ff~uJ .......................
~'•^..••~ ~~Of~i1 ~~ ~~ ~ ~ \dQ/p(~ v~1~1fY ho~A~ ~ r ~ •31Y ~............
o~wr~irship f~ ihe abave named "Ifrm'. °~~~ ~~ more of
.....................e..........._......N....v.~V:~-.. '~ -
..................................................................
3. ~~~~ ~m.rnber" of tne cily of co~pus cnrisli r,avi~ an •ovmersi,ip ..................................%...
~e ~~ .~. interesY consb'buting 3 or
ame
.. ~ J D^ i~ Boerd, Co-r~rt~ission or Cor-xNt~ee
~.... ............................. ~.~~..... ~ u............. .~........................................................................................................
4• 8-a~e ris ~ +o# ~ach employ~t a of~ of a• .....................................................:................................
rwaRed to s~d or n~is oonarct ana nss en 'awr~p i~r~ °f CO~ cfuf~ wrw wa~k~ed on sny rr~er
abo~ve narNed "`~!n'. ~ 396 or more of the owne~ship in rie
Name ~a~~
........ . . . . . .... . . . . .. .. ....... .. .. ..~.1.~~... ~ -e-. . ...... .. ....... .. .... .. .. .. .. .... .... ......... .... .......... ............ ..................................
cr~nF~cA-rE
1 oer~fy th~ a~nfo~ p~ is t~ue and cared ss of tbe date of this stN
wt
~ur+e of ~ny ir~metlon aupplemental statemerqs v~~ tltat 1 hav~e rrot
Corptis Chrfs~ Texa~ ~ chs ~' and that promptly submitted to tite C~
Certilying Peraon:.....~~111.!:1.....t.!..l.',!4~:4(,~Q.f!I~~,l-:.~
~ p~~~ ..... r~:.........~..~....~~~.~ .......................
signature or c~t;yi~
Person• Date: ~ .~.1~.~..
/ ..... ....................
~
E~rit G- Confliet of Intarat Questionwire Form G`IQ Iwtroction:
Dear Ven~r:
H.B. 914, ,~aseed during the 2005 le,gialative seasioq becomea effedive on January 1, 2006. The bill
enac~s Loetl Go~anmesrt Code Chapter 176.
It ra~uires s vex~r that wia6es ~ conduct b~a or be con~idered ~r businesa with a city to file a
•`cor~ict af interwt queationnaire." The canBiCt of ititere~t queationwire (FORM CIQ) was created
by t6e Te~s Et~ics Co~on {TEC) and ia avs~abk onliae at ww-w, ethics state tx us or the City
w~bsite at ~vww.cctexas.com or from the City Secretary's office~ City of Corpus Christi. A coP3- of
H.B. 914 ~ also svailabie from tLe City Saxetary's Office.
Tbe bill da~nes w~ must fi1e thd coc~8ict R£ ir~ questionnaire:
• A~y person who ~tracts or acelcs to co~rtrac~ for the sale or ptuchaae of PTOP~Y,
~ods, or servicos with a loc~i govem~t ~, and
• Aa agent of a perwn who co~s or sceks to coatract for t~e sale or purchase of
properly, goods, or ~ervicea with a local govexnmeM entity.
The b~i ap~ears ~ apply to all porsons or busmesses who condud busi~ss with tLe city, includir~g
those who ~ubm~t bic~s on city co~trads, n~ake purchases of ~uplus city ProP~Y~ ~' P~e ~n ~Y
ot~r purc~a,4e oc sates transaction w+ith the city.
A vendor ~Yell fiii~ a completed con8ict of interat questionnaire with the City Secxetar~- nat lat~ th~n
thc seventit bu~ess day after the date that the veador:
B+e~ins contrstct ~ssions or ntgotiations with the City; or
Su~mta to the l~y an apPli~oq reapoose to a request for proposais or bids,
c~resPondd~ce, or another writing related to a potential agre~r~eiit with the local
C~y.
A vendor ~ll fi~ an up~dated coo~pleted questioanaire with tlie City Secretary's Office not later:
Saptember l of each year in which an adivity is pending ; and .
'I1~ severrth twsiness day after the date of an event that would make a statement in
tl~e questiomwire ~comQlete or inaccurate.
A vendor i~ not r~oquired to file an updated oomple~ted questionnaire in a year if he has Sled a
questionn~e on or after 7une l, but be~fore September 1, of that year.
A vendor c~xxnmit~ un offe,nse if thc ve~or violates this section. An offense under this subseaion is a
Class C mis~eme~or.
CONFLICT OF INTEREST QUESTIONNAIRE FORM C IQ
For vendor or othe~ person doing business with local govemmental entity
This questiannair~e is being filed in accordance with chapter 176 of the Local OFFICEUSEONLY
Govemment Code by a person doing business with the governmental errtiry. o,te R~;,,~a
By law this questicmnaire must be filed with the records administrator of the
local governtnent t~ot later than the 7th business day after the date the person
becomes a~rare of hacts that req~e the statement to be filed. See Section
176.006, Local Gavernment Code.
A person cnmmitts an offense if tt~e person violates Section 17fi.006, Local
Govemmer~t Caie. An offense under this section is a Class C misdemeanor.
~ Name of pers~n doNq busfness with tatal govemmental entity.
~= ~~'~~.1't'1 ~-~. ~Urtu r v f ~~ X~ S
z
~ Checklhb bosc # you are tNing an update to a prevbusly fikd questbnnaire.
(The laa~r requires that you tde an updaied completed quesdonnaire with the appropriate fili~g authority not later tha~
Septe~ber 1 ot ~e year fo~ which an adivity desc.ribed in Sedion 176.006(a), Local Govemment Code, is pending and
not lata~ than ~e 7th business day after the date the originaliy filed questionnaire becomes incomplete o~ inaccurate. )
3 Name each ~~Ipp{oyM~ or eontractur of p~e locat povernmental ~ntil~r who makes ~commendations to a local ~overnmeM
otlker of ~e pvem~wlntal entlhr wEtb nspect to expenditu~s M money ANO descrbe the afflNstbn or business rolationship.
Nv n~~
4 Name each Iqcal got~nment officer who appoints or employs local governmeot officers oi the governmental entity for
which this q~stionnai~e is filed AND d~scribe the affi~ation or business relationship.
l~/vN~
Adople0 71I02l2005
CONFLICT OF INTEREST QUESTIONNAIRE FORM CIQ
Far vendor or o#her pe~son doing business with local governmental entity Page 2
Nsme of Iocal~ovenMa~nt ofNcer with whom filer has af(Nitstion or business relatlonship. (Complete thb secdon ony H tl-e
answer to A, S, or C ts YES.)
This section, iMem 5 induding subparts A, B, C 8 D, must be completed tor each officer with whom the filer has affiliation or other
relationship. Attach additional pages to t#~is Form CIU as necessary.
A Is the locaf govemment otficer named in this section receiving or likely to receive Wxable income from the filer of the
questionnaire?
~ Yes ~'No ~ ~
B. is the file~ ~ the qYl~tionnaire receivirq or likely to receive taxable income irom or at the direction ~f the local govemment
offioer nan~ed in t1~s section AND the taxable income is not from the locat govemmental entity?
~ Yes ~ No ~
C_ Is the 51er p! this questionnaire affiliated with a corporation or other business entity that the bcaf govemment of6cer senres
as an offic~r or d~sctor, or holds an ownership of 10 percent ar more?
Q Yes ~ ~
~
D. Descxibe each ailMi~tion or business relationship.
~
~
~ J ~
Iv
Signalwe of p~on doing business wiM the govemmenlal entity
Date
naop~ea nro2~zoos