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HomeMy WebLinkAboutC2008-285 - 8/12/2008 - ApprovedAFFORDABLE HOUSING PROJECT AGREEMENT NUECES COUNTY COMMUNITY ACTION AGENCY -HOME BUYER ASSISTANCE This Affordable Housing Project Agreement ("Project Agreement") is entered into between the Corpus Christi Business and Job Development Corporation ("Corporation"), the City of Corpus Christi ("City"), and Nueces County Community Action Agency ("Grantee"). WHEREAS, the Texas Legislature in Section 4A of Article 5190.8, 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 26, 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 26 for affordable housing was subsequently enacted by the City's City Council ("City Council"), and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by the Corporation's Board of Directors ("Board"); WHEREAS, the Board issued a request for proposals for affordable housing projects; WHEREAS, Grantee submitted a proposal to the Board to request funds to provide homebuyer assistance to 11 low income homebuyers, who will buy homes in Phase II of CAP Estates II subdivision; WHEREAS, 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 Project Agreement, to accomplish the affordable housing project described in this agreement and in Grantee's proposal; In consideration of the covenants, promises, and conditions stated in this Project Agreement, the Corporation, Grantee, and the City agree as follows: 1. Project Agreement to Implement Affordable Housing Project. This Project Agreement between the Corporation, the City, and Grantee is executed to implement the promotion and development of an affordable housing project proposed by Grantee 2008-285 request for proposals ("Project Response"). The Project 08/12/08 Res. 027801 'zsooe.doo Page 1 of 11 NCCAA - 4A Board Response submitted by Grantee, entitled "NCCAA Home Buyer Assistance Program" ("Project") is attached to this Project Agreement as Exhibit A, and is incorporated in this Project Agreement by reference. 2. Effective Date. The effective date of this Project Agreement is the latest date on which a party to the Project Agreement executes this Project Agreement. ("Effective Date") 3. Expiration Date. This Project Agreement expires on July 31, 2009. 4. Services to be Provided by City. a. The City, through the City's City Manager, or designee ("City Manager"), administers the funding and performs contract administration responsibilities, as outlined in this Project Agreement, for the Corporation. 5. Services to be Provided by Grantee. a. Grantee shall assist 11 families with Down Payment and Closing Cost Assistance, at 80% or below Area Median Income (AMI), for the purchase of homes in Phase II of CAP Estates II Subdivision located in the southwest Corpus Christi at Holly Road and Martin Street. b. The homebuyer assistance must be utilized for closing costs and to buy down the purchase price of a home. c. All homes must have the sale price of $85,000 or below, fora 3 bedroom, 2 bathrooms, 1 car garage, and a minimum 1,086 square foot living space home constructed on an R-1 B lot with a minimum of 6,500 square foot of land. d. Each homeowner must meet the qualifications in Exhibit B: e. Each homeowner must execute a note and a deed of trust that conform to Exhibits C and D of this agreement, or a revised version provided by the City. 6. Services to be Provided by Corporation. The Corporation will provide up to $20,000 per homeowner for homebuyer assistance to the title company that is used to close the sale of the home. The funds provided by the Corporation may be used for closing costs and down payment assistance. The total funds that are paid by the Corporation may not exceed $200,000.00. 7. Documentation and Reports. a. Grantee shall maintain all documentation relating to the receipt and expenditure of the funds provided under this Project Agreement for a period of three years following the expiration of this Project Agreement or for such longer period as may be required by Federal or State law. Affordable Housing - NCCAA - H&4 07222008.doc Page 2 of 11 b. Grantee shall provide access to all records, documents, reports, and audits, regarding the funded activity under this Project Agreement, during regular business hours, for the purpose of inspection and copying by the City Manager. Furthermore, Grantee shall provide to the City Manager any information pertinent to this Project Agreement, as may be requested during the term of this Project Agreement. c. Grantee shall submit a performance report ("Quarterly Report") to the City and the Corporation at least once each quarter, and a complete performance report ("Final Report") within 30 days of the expiration of this Project Agreement. The Quarterly and Final Reports must contain all relevant details pertaining to any homeowner assistance provided with funds made available under this agreement, and include any supporting documentation required to substantiate the written narrative contained in the reports. The reports must document: (1) Property appraisal information (2) Note and Deed of Trust for the property purchased (3) Expenses incurred for construction project (4) Purchase price of the new constructed home (5) Home buyer assistance information -amounts per homebuyer (6). Balance of 4A grant (7) Pending project expenses (8). Status of project time line (9). Project challenges and anticipated resolutions. 8. Amendments or Modifications. a. No amendments or modifications to this Project 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. b. The Corporation's Executive Director and City Manager are authorized to execute minor amendments or modifications to this Project Agreement, by exchange of letters with the Grantee. The minor amendments and modifications may relate to the timing of pertormance and reporting, the scope of work to be Affordable Housing - NCCAA - HBA 07222008.doc Page 3 of 11 performed, the number of homebuyers assisted, or the amount of assistance provided to each homebuyer. However, the minor amendments or modifications may not increase the amounts of money available to the Grantee under this Project Agreement. 9. Severability. a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase or word of this Project Agreement or the application of this Project 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 Project 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 Project Agreement that every section, paragraph, subdivision, clause, provision, phrase, and word of this Project 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 Project Agreement, then the remainder of this Project 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 Project Agreement automatically. 10. Compliance with Laws. Grantee shall comply with all applicable Federal, State, and local government laws, rules, regulations, and ordinances which may be relevant to Grantee's performance under this Project Agreement. 11. Jurisdiction and Venue. a. This Project Agreement is governed by and must be construed under the laws of the State of Texas. b. All actions brought to enforce compliance with this Project Agreement must be brought in Nueces County, Texas, where this Project 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 Project Agreement. By Grantee's execution of this Project Agreement, Grantee agrees to be bound by the terms, covenants, and conditions contained in this Project Agreement. Any ambiguities in this Project Agreement may not be construed against the drafter. Affordable Housing - NCCAA - HBA 07222008.doc Page 4 of 11 13. Indemnity. Grantee must fully indemnify and hold harmless the City of Corpus Christi, the Corpus Christi Business and Job Development Corporation, and their officers, employees, and agents (hereinafter, collectively "Indemnitees") 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 defects, 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 part, any activities by Grantee, its officers, employees, agents, members, invitees, or independent contractors with respect to this Project Agreement or the Project that is the subject of this Project 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. Grantee covenants and agrees that if Indemnitees, or any of them, are made a party to any. litigation against Grantee or in any litigation commenced by any party other than Grantee relating to this Project Agreement or Project, Grantee 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. Grantee warrants and represents to Corporation the following: a. Grantee 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. Grantee has the authority to enter into and perform, and will perform, the terms of this Project Agreement. c. Grantee 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 Affordable Housing - NCCAA - HBA 07222008.doc Page 5 of 11 been timely paid, and will be timely paid, during the term of this Project Agreement. d. Grantee 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 Project Agreement must be utilized solely for purposes authorized under State law and by the terms of this Project Agreement. e. If an audit determines that the funds were not used for authorized purposes, Grantee 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 Project Agreement on behalf of Grantee are duly authorized to execute this Project Agreement on behalf of Grantee. 15. Events of Default. The following events constitute a default of this Agreement a. Failure of Grantee to timely, fully, and completely comply with any one or more of the requirements, obligations, duties, terms, conditions, or warranties of this Project Agreement. b. The Corporation or City determines that any representation or warranty on behalf of Grantee contained in this Project Agreement or in any financial statement, certificate, report, proposal, or opinion submitted to the Corporation in connection with this Project Agreement was incorrect or misleading in any material respect when made. c. Any judgment is assessed against Grantee or any attachment or other levy against the property of Grantee with respect to a claim remains unpaid, undischarged, or not dismissed for a period of 30 days. d. Grantee makes an assignment for the benefit of creditors. e. Grantee files a petition in bankruptcy, or is adjudicated insolvent or bankrupt. f. If taxes on property owed by Grantee become delinquent, and Grantee fails to timely and properly follow the legal procedures for protest or contest. g. Grantee 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 Grantee is in default under the terms of this Agreement, the Corporation or City shall notify Grantee in writing of the event of default and provide 60 days from the date of the notice ("Cure Period") for Grantee to cure the event of default. Affordable Housing - NCCAA - HBA 07222008.doc Page 6 of 11 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 Grantee, 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. Grantee 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 under terms of this Project Agreement. b. Grantee 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 Grantee under this Project Agreement and this Project Agreement shall terminate. d. Neither the City nor the Corporation may be held liable for any consequential damages. e. The Corporation may pursue all remedies available under law. 18. No Waiver. a. No waiver of any covenant or condition, or the breach of any covenant or condition of this Project Agreement, constitutes a waiver of any subsequent breach of the covenant or condition of the Project Agreement. b. No waiver of any covenant or condition, or the breach of any covenant or condition of this Project Agreement, justifies or authorizes the nonobservance on any other occasion of the covenant or condition or any other covenant or condition of this Project Agreement. c. Any waiver or indulgence of Grantee's default may not be considered an estoppel against the Corporation. d. It is expressly understood that if at any time Grantee is in default in any of its conditions or covenants of this Project 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 Project Agreement on account of the default. 19. Notices. a. Any required written notices shall be sent, certified mail, return receipt requested, addressed as follows: Affordable Housing - NCCAA - HBA 07222008.doc Page 7 of 11 If to Grantee: Nueces County Community Action Agency Attn: Executive Director 101 South Padre Island Drive Corpus Christi, Texas 78405-4102 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 in subsection a of this section. 20. Incorporation of other documents. The Corpus Christi Business & Job Development Corporation 4a Board Affordable Housing Request for Proposals issued April 7, 2008, is incorporated into this Project Agreement. 21. Relationship of Parties. In pertorming this Agreement, the Corporation, Grantee, 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. Grantee may not assign, mortgage, pledge, or transfer this Project Agreement or any interest contained in this Project Agreement without the prior written consent of the other parties to this Project Agreement. 23. Non-discrimination. a. Grantee 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. Affordable Housing - NCCAA - HBA 07222008.doc Page 8 of 11 b. The Corporation retains the right to take any action the United States or the State of Texas may direct to enforce this non-discrimination covenant. 24. Captions. The captions in this Project Agreement are for convenience only and are not a part of this Project Agreement. The captions do not in any way limit or amplify the terms and provisions of this Project Agreement. 25. Entire Agreement. This Project Agreement and the referenced and incorporated documents constitute the entire agreement between the Corporation, the City, and Grantee for the purpose stated. All other agreements, promises, representations, and understandings, oral or otherwise, with reference to the subject matter of this Project Agreement, unless contained in this Project Agreement, are expressly revoked, as the parties intended to provide for a complete understanding, within the provisions of this Project Agreement and its referenced and incorporated documents, of the terms, conditions, promises, and covenants relating to the each party's required performance under this Project Agreement. CORPUS CHRISTI BUSINESS 8 JOB DEVELOPMENT CORPORATION ~./~_o ~' Sala a Date airman ACKNOWLEDGMENT STATE OF TEXAS § § KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES § This instrument was acknowledged before me on ~ ~ , 2008, by Eloy Salazar, Chairman, Corpus Christi Business & Job velopment Corporation, a Texas nonprofit corporation, on behalf of the corporation. NOTARY PUBLI ~~' State of Texas o«":".vo^~ MONIQUE LERMA Notary Public `y `.~,~~,, ~~ STATE OF TEXAS (I ~'~'!u~f'~ My Comm. Exp. 02-78-2009 f .:;7~ awl Affordable Housing - NCCAA - HBA 07222008.doc Page 9 of 11 ATTEST: Sim Armando Chapa Ciry Secretary,( Date: y ~a~/°d' APPROVED AS TO FORM: ~Jvl~ 84, 2ou~ First Assistant City Attorney for the City Attorney CITY OF CORPUS CHRISTI //rV / ~- G~orge K. Noe City Manager Date: ~/~~/~~ l$~~ AUTHORI1t~ er eounca....~g. ~a:~0~ _.....,...».SECiiEf~I~+~ Affordable Housing - NCCAA - HBA 07222008.doc Page 10 of 11 NUECES COUNTY COMMUNITY ACTION AGENCY l J e Martinez cutive Director ~--~~~ Date ACKNOWLEDGMENT STATE OF TEXAS § § KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES § This instrument was acknowledged before me on ~,~«,.~- 1 , 2008, by Joe A. Martinez, Executive Director, Nueces County Co munity Action Agency, a Texas Domestic Non-Profit Corporation, on behalf of the corporation. Cell n.,~.~s~~.~~"~^. NOTARY PUBLIC Affordable Housing - NCCAA - HBA 07222008.doc CNRIMINA R GARDNER My Commiwlon Explnat OcfoWr 28, 2010 ~AP Page 11 of 11 NII.J~C]~S COUNTY COl~i TY ACTION AGENCY 101 South Padre Island Drive Corpus Christi, Texas 78405-4102 (361) 883.7201 FAR: (361)883.9173 Joe A. Martinez Executive Director May 1, 2008 City Secretary's Office City of Corpus Christi Attention: Armando Chapa, City Secretary 1201 I.eopazd Street Corpus Christi, Texas 78469-9277 Deaz Mr. Chapa: Enclosed please find an application for consideration of funding in response to the 4A Boazd Affordable Single Family Housing Request for Proposals. Nueces County Community Action Agency (NCCAA) is requesting a $200,000 grant for Down Payment and Closing Cost Assistance for 11 families in Phase II of CAP Estates II subdivision located in southwest Corpus Christi at Holly Road and Martin Street. This proposal, as submitted, includes a partnership between the City of Corpus Christi, Corpus Christi Community Development Corporation, NeighborWorks America, private home builders, and NCCAA. The City of Corpus Christi 4A Board funds will be used to continue providing affordable single family homes to low and moderate income working families. The partnership is implementing its affordable single family housing subdivision, CAP Estates II, in two phases. During Phase I, the partnership increased affordable housing in Corpus Christi, by forty-two (42) homes. During Phase II, the partnership will increase affordable housing by fifty seven (57) homes, respectively. When completed, NCCAA will have leveraged in excess of $9.2 million in public .and private financing to provide ninety-nine (99) low and moderate income working families with their own home. We anticipate that this application is in order for the 4A Boazd's review. If you should require additional information or have any questions in reference to this submission, please contact me at 883-7201 extension 21, or you may contact Mr. Rudy Cantu at 883-7201, extension 47. Resppectfull~y,^ , , W 6 Joe .Martinez ecutive Director Enclosures ' ghb®r orks® ~®~~~~~~; ~te~ CHARTERED MEMBER P a k' T !N E R S H/ P Exhibit A Helping People. Changing Cives. TABLE OF CONTENTS REQUEST FOR PROPOSALS 4A BOARD AFFORDABLE HOUSING I. Executive Summary ....................................................... l II. Qualifications and Experience ...........................................3 III. Capabilities .................................................................6 IV. Acknowledgment and Certifications ....................................8 V. Narrative Explaining the Assistance ....................................9 VI. Attachments Attachment A Exhibit F, Disclosure of Interests Attachment B Exhibit G, Conflict of Interest Questionnaire Attachment C Project Location Map Attachment D Plat Identifying Assistance Needed Attachment D Economic & Demographic Impact Proposal Submitted to the City of Corpus Christi page ~ Attention: Mr. Armando Chapa, City Secretary Submitted Mav 1,1008 L EXECUTIVE SUMMARY To address the shortage of affordable single family housing within the City of Corpus Christi, the Nueces County Community Action Agency (NCCAA) is requesting a $200,000 grant from the City of Corpus Christi 4A Board For Down Payment and Closing Cost Assistance for 11 families in Phase II of CAP Estates II. CAP Estates II is a 20.24 acre subdivision in southwest Corpus Christi located at Holly Road and Martin Street. See Attachment C, Project Location Map. Phase I of this subdivision provided forty- two (42) single family homes for low and moderate income working families and Phase II will allow fifty-seven (57) single family homes. When CAP Estates II is completed, NCCAA will have leveraged over $9.2 million in public and private financing to provide 99 low and moderate income working families with their own homes. The partnership of the City of Corpus Christi, Corpus Christi Community Development Corporation, NeighborWorks America, private home builders, and NCCAA is implementing this affordable housing subdivision in two phases. During the first phase; the partnership increased affordable single family housing in Corpus Christi by forty-two (42) homes. During the second phases, the partnership will increase the affordable housing by fifty-seven (57), respectively. Qualifications and Experience Fonned in 1964, NCCAA is a 501 c (3) nonprofit corporation. NCCAA's mission is to improve the quality of life through advocacy, commitment of resources and delivery of services. NCCAA offers diverse products and services to the residents of Nueces County including education, family service assistance and community development activities. As a nonprofit housing provider, NCCAA provides land development services, facilitates new home construction, and permanent financing assistance to low and moderate income families. NCCAA has developed a thirty (30) home subdivision, CAP Estates I, facilitated the construction of ten (10) homes in three (3) colonial. Through its neighborhood infill revitalization efforts, NCCAA has facilitated the construction of thirty-four (34) homes, constructed two (2) Section 8 set aside homes in Robstown, CAP Estate II - Phase I forty-two (42) homes and is currently in a neighborhood revitalization partnership with the 4A Board to facilitate the construction of ten (10) homes on Soledad Street. NCCAA also provides homebuyer education and ancillary services such as CEAP-Comprehensive Energy Assistance Program, and weatherization. NCCAA is certified by the State of Texas and the City of Corpus Christi as a Community Housing Development Organization (CHDO). Additionally, NCCAA is chartered member of NeighborWorks® America; this is a program of the Neighborhood Reinvestment Corporation. As an affiliate of NeighborWorks® America, NCCAA will increase its capacity to build decent, affordable housing, revitalize communities, and enhance economic opportunities. Management A 27 member board of directors governs NCCAA. NCCAA boazd of directors sets the tone and direction of NCCAA by establishing broad policy priorities. The boazd members represent the public and private sectors and provide a wide awry of skills, expertise, and knowledge. Boazd members represent various low income areas of Nueces County. NCCAA staff has comprehensive experience in successfully undertaking affordable single family housing projects. NCCAA staff has extensive combined experience in construction, land development, financial Proposal Submitted to the City oJCorpus Christi Attention: Mr. Armando Chapa, City Secretary Submitted May 1, 2008 Page 2 management, loan facilitation, portfolio management and real estate finance. NCCAA's housing development team is duectly responsible for establishing strategies to implement its housing program. Proposal Submitted to the City ojCorpus Christi Page 3 Attention: Mr. Armando Chapa, City Secretary Submitted May 1, 2008 II. QUALIFICATIONS AND EXPERIENCE QUALIFICATIONS Formed in 1964, Nueces County Community Action Agency (NCCAA) is a SOlc (3) nonprofit corporation. NCCAA's mission is to improve the quality of life for low income families through advocacy, commitment of resources, and delivery of services. NCCAA has been actively involved in providing affordable single family homes for low and moderate income families in Corpus Christi and Nueces County since 1993. NCCAA is certified as a Community Housing Development Organization (CHDO) by the State of Texas and the City Corpus Christi. NCCAA is a certified affiliate of NeighborWorks® America, a program of the Neighborhood Reinvestment Corporation. As an affiliate of NeighborWorks® America, NCCAA can increase its capacity to facilitate affordable housing, revitalize neighborhoods, and enhance economic opportunities. Below is an overview of affordable housing programs NCCAA has provided, or is currently providing. Housing Department • Neighborhood Revitalization - NCCAA has partnered with the City of Corpus Christi in a $556,000 project to construct thirty-four (34) affordable single family homes for low and moderate income working families. Currently, NCCAA is in a partnership with the 4A Board in a $175,000 project to revitalize the 2700 block of Soledad Street with the construction often (10) affordable single family homes for low and moderate income working families. • Colonias- NCCAA has partnered with the Texas Department of Housing and Community Affairs in a $516,000 project for demolition and replacement often (10) homes in three (3) Colonias. • Low income rental housing - NCCAA has partnered with the Texas Department of Housing and Community Affairs in a $104,000 project to construct two (2) single family homes in Robstown for low income working families. All families that have resided, or aze currently residing, in both homes have received Section 8 Housing assistance. • CAP Estates I - NCCAA has partnered with City of Corpus Christi Housing and Community Development Department, and the Corpus Christi Community Improvement Corporation in a $3,085,000 project to develop a thirty (30) home single family residential subdivision for low and moderate income working families. • CAP Estates II - NCCAA is in a partnership with the City of Corpus Christi HOME Program, City of Corpus Christi 4A Board, Corpus Christi Community Development Corporation, Neighborhood Reinvestment Corporation, and private home builders to develop a $9,297,225 ninety-nine (99) home single family residential subdivision for low and moderate income working families. NCCAA is currently embarking on Phase II, 57 single family homes. • Down Payment Assistance Program - NCCAA has partnered with and is in a partnership with the City of Corpus Christi 4A Board and City of Corpus Christi Community Development Department to provide low income and moderate income working families with down payment and closing costs assistance to enable them to purchase a home. The assistance is in the form of a zero-interest deferred payment loan. To date the partnership has assisted one hundred and six (106) low and moderate income working families to buy a home of their own. The assistance to date totals$1,277,500. At the completion of CAP Estates II, the partnership will have provided Proposa/Submitted to the City of Carpus Christi Attention: Mr. Armando Chapa, City Secretary Submitted Mav 1,1008 Page 4 down payment assistance to 172 low and moderate income working families for a total of $2,852,500. Community Services Department Weatherization - NCCAA is in partnership with the City of Corpus Christi Department of Community Development, Texas Department of Housing and Community Affairs, U. S. Department of Energy, and U. S. Department of Health and Human Services to assist very low income families, especially elderly families and disabled families, to create a healthful and safe environment by implementing practical energy conservation measures in their home and/or modifications to their home. Modifications to the home may include insulating windows, doors, ceilings, floors, and walls to decrease energy consumption. Modifications may also include the installation of ADA ramps and shower stalls. Additionally, energy inefficient appliances may be replaced with energy efficient appliances such as water heaters, heaters, furnaces, air conditioners, ranges, and refrigerators to decrease energy consumption. Annually, the partnership assists approximately 120 families. EXPERIENCE NCCAA has extensive experience successfully undertaking affordable housing projects. One of NCCAA's greatest skills is its ability to bring disparate resources together to address local and regional challenges. A major contribution of NCCAA to local affordable housing solutions is its ability to develop partnerships of diverse financial resources. Additionally, NCCAA provides staff support for affordable housing projects and maintains current demographic and community needs information. NCCAA has facilitated rehabilitation or construction of over 118 affordable single family homes with more being built. NCCAA has many years of experience with administration of public and private funding. Ongoing and current experience includes: • NCCAA has administered $516,000 in funding from Texas Department of Housing and Community Affairs for Colonias Construction Projects. • NCCAA has administered $104,000 from Texas Department of Housing and Community Affairs for rural rental single housing. • NCCAA has administered $3,085,000 million in public and private financing for the development of CAP Estates I, a thirty (30) home affordable housing subdivision for low and moderate income working families. ® NCCAA has administered $559,000 in funding from the City of Corpus Christi Housing and Community Development Department, and Corpus Christi Community Improvement Corporation for past and current neighborhood revitalization projects. u NCCAA has administered $1,112,831 in funds from the City of Corpus Christi 4A Boazd, Corpus Christi Community Development Corporation, and Neighborhood Reinvestment Corporation for the development of CAP Estates II Unit I. Proposal Submitted to the City oJCorpus Christi Attention: Mr. Armando Chapa, City Secretary Submitted Mav !, 2008 Page 5 NCCAA is currently administering $1,750,000 in funds from the City of Corpus Christi 4A Board, Corpus Christi Community Development Corporation, and Neighborhood Reinvestment Corporation for the development of CAP Estates II Unit II. Proposal Submitted to the Cky ojCorpus Christi page 6 Attention: Mr. Armando Chapa, City Secretary Submitted May 1, 2008 III. CAPABII.ITIES BOARD OF DIItECTORS The implementation of Nueces County Community Action Agency's (NCCAA) affordable housing plan requires vision, fiscal responsibility commitment to mission, accountability, technical expertise, discipline and diligence. These skills and values allow the Boazd of Directors to set the tone and direction of the Agency by establishing broad policy priorities. NCCAA has a 27 person Boazd of Directors including professionals encompassing a broad awry of skills, expertise, and knowledge. The Boazd has six (6) standing committees: Executive Committee, Fiscal and Audit Committee, Housing Committee, By-Laws Committee, Planning Committee, and Personnel Committee. MANAGEMENT TEAM NCCAA's management team is responsible for establishing strategies to implement its affordable housing plan. NCCAA staff has comprehensive experience in successfully undertaking affordable housing projects. NCCAA staff has extensive combined experience in construction, land development, loan facilitation, portfolio management, and real estate fmance. They act as liaisons between the Board of Directors and staff, represent NCCAA in national, regional, and local policy debates, and forge strategic partnerships in the service of our mission. Our management team is uniquely qualified to fulfill these roles. Joe A. Martinez, Executive Director. Mr. Martinez has over 30 years of experience with the Nueces County Community Action Agency. Mr. Martinez was the Agency's Administrative Manager prior to becoming the NCCAA's Executive Director in 1988. Mr. Martinez is chazged with the administration of a $9 million organization and the supervision of 300 plus person team. Mr. Martinez serves on numerous advisory boards and in professional associations. He is a founding member of the Emergency Aid Coalition of Corpus Christi, Chairman of the South Texas Community Based Organizations, Inc., and past president of the Texas Association of Community Action Agencies. Mr. Martinez is a graduate of Texas A & I University Rodolfo Cantu, Housing Director. Mr. Cantu is responsible for the management of the Housing Department. Mr. Cantu has been involved with affordable housing for 13 yeazs. Mr. Cantu plans, develops, organizes, implements and evaluates program contracts, and ensures compliance. He also prepazes grant proposals in accordance with the Agency's community needs assessment and 5 yeaz plan. As NCCAA's Housing Director, Mr. Cantu is directly responsible for the conceptualizing, developing and implementing housing projects for ]ow income and moderate income households. Mr. Cantu attended The University of Maryland and graduated from the Park University, Kansas City, Missouri. Joe R. Flores, Fiscal Director. Mr. Flores is a Certified Public Accountant, and has served as NCCAA's Fiscal Director since 1997. Mr. Flores is responsible for direct supervision of the accounts payable department, payroll department, and the purchasing department. Mr. Flores monitors fmancial and procedural compliance of federal and state grants. Mr. Flores is responsible for all fmancial reporting required by awazding agencies as well as preparation of annual fmancial reports. Mr. Flores has over eighteen (18) years of fmancial accounting experience, to include eight (8) years of public accounting experience. Mr. Flores is a graduate of Corpus Christi State University and Del Mar College. Proposal Submitted to the City of Corpus Christi page ~ Attention: Mr. Armando Chapa, City Secretary Submitted Mav 1.2008 Sam Esquivel, Housing/Construction Specialist. Mr. Esquivel has served as NCCAA's Housing/Construction Specialist since 2002. Mr. Esquivel inspects and oversees various types of construction work to ensure that procedures and materials comply with plans and specifications. Mr. Esquivel also counsels prospective homebuyers on the homeownership process. He acts as a liaison between the homebuyers and the homebuilders to ensure a satisfactory outcome between both parties during the construction process. The Texas Department of Housing and Community Affairs (TDHCA) and the Neighborhood Reinvestment Corporation certify Mr. Esquivel as a Homebuyer Education Counselor. He is currently pursuing a degree in Business Administration with an emphasis in fmance. DEVELOPMENT TEAM The Development Team determines priorities and policies, considers internal implementation procedures, and conceptualizes future affordable housing projects. Membership on the Development Team demands a wide range of skills that balance concrete housing development expertise with awareness of current issues and trends in the affordable housing industry. NCCAA has amassed an exemplary Development Team comprised of leaders in the housing field, legal experts, land and housing developers, bank representatives, and nonprofit experts. The Development Team members include: Ms. Sylvia Ford, Frost Bank, Community Relations Duector Mr. Ernesto De La Garza, Neighborhood Reinvestment Corporation, Senior Field Service Office Mr. Joe A. Martinez, NCCAA, Executive Director Mr. Rodolfo Cantu, NCCAA, Housing Duector Mr. Joe R. Flores, NCCAA, Fiscal Director Mr. Sam Esquivel, NCCAA, Housing Specialist Proposal Sabmitted to [he City of Corpus Christi Attentiors: Mr. Armando Chapa, Ci[y Secretary Submitted Mav 1. 2008 Page 8 N. Request For Proposal Acknowledgment and Certifications I aclmowledge and certify that Nueces County Community Action Agency will meet all provisions of the 4A Boazd.Affordable Single Family Housing Request for Proposals. I further certify all work will be performed in accordance with the most current applicable codes and standazds. I further certify the location of the site where the work will be performed is not in the 100 yeaz flood plain. As the authorized certifying official, I hereby certify that the above-specified certifications are true. SIGNATURE OF AUTHORIZED CERTIFYING OFFICIAL A. artinez, Executive or Date Proposal Submitted to the City ojCorpus Christi page 9 Attention: Mr. Armando Chapa, City Secretary Submitted May i, 1008 V. NARRATIVE EXPLAINING THE ASSISTANCE TO BE PROVIDED NARRATIVE To address the shortage of affordable housing within the City of Corpus Christi, Nueces County Community Action Agency (NCCAA) requests a $200,000 grant from the City Of Corpus Christi 4A Board. The funds will be used to assist eleven (11) families at 80% or below the Area Median Income (AMn with down payment and closing cost assistance in Phase II of CAP Estates II, located in southwest Corpus Christi at Holly Road and Martin Street. See Attachment C, Project Location Map. This continuation of the partnership between the 4A Boazd and NCCAA will result in assisting an additional fifty-seven (57) affordable single family homes for low and moderate income working families. To date, NCCAA has secured HOME dollars in the sum of $691,604 to assist forty (40) of the fifty-seven (57) homebuyers in Unit 2. Extreme Home of Texas will provide direct assistance to six (6) homebuyers from a previous 4A DPA award leaving eleven (11) without DPA assistance. The assistance will be utilized for closing cost and to buy down the pwchase price of a home. All homes will have a sale price of $85,000 or below, be a 3 bedroom, 2 bath, 1 car garage, and a minimum 1,086 sq. ft of living space home constructed on an R-1B lot with a minimum of 6,500 sq. ft. of land. TIMELINE NCCAA has already awazded the forty allocations to fow builders to commence construction immediately. Since HOME dollars carry strict time constraints NCCAA is planning to utilize the federal dollazs before 4A funds. NCCAA anticipates it will begin committing 4A DPA at the end of 2008. Proposal Submitted to the City oJCorpus Christi Attention: Mr. Armando Chapa, City Secretary Submitted Mav 1. 2008 Page 10 ~ VL ATTACHMENTS Attachment A -Exhibit F, Disclosure of Interests Attachment B -Exhibit G, Conflict of Interest Questionnaire Attachment C -Project location Attachment D -Plat Identifying Assistance Needed Attachment E - Phase I -Economic & Demographic Impact Agency Name Nueces Countv Communitv Action Aoencv 2008 Construction <~; - "_ `_, ~-` '~ :: ~'~ 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." See the definitions for the Disclosure of Interest in Section II -General Information. COMPANY NAME: Nueces Countv Communitv Action Aoencv P. O. BOX: STREET: 101 South Padre Island Drive CITY: Corpus Christi. TX ZIP: 78405 FIRM is: 1. Corporation (®) 2. Partnership (^^) 4. Association (^) 5. Other 3. Sole Owner (^) DISCLOSURE QUESTIONS If additional space is necessary, please use the reverse side of this page or attach a separate sheet. 1. State the names of each "employee" of the City of Corpus Christi having an "ownership interest" constituting 3% or more of the ownership in the above named "firm." Name Job Title and City Department ('rf known) NIA 2. State the names of each "official" of the City of Corpus Christi having an "ownership interest" constituting 3% or more of :he ownership in the above named 'arm" Name Title 3. State the names of each "board member" of the City of Corpus Christi having an "ownership interest" constituting or more of the ownership in the above named 'Yirm" N/A 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 of this contract and has an "ownership interest" constituting 3% or more of the ownership in the above named "firm." Name Consultant CERTIFICATE I certify that all 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 Corpus Christi, Texas as changes occur. Certifying Person: Title: Executive Director CONFLICT OF INTEREST QUESTIONNAIRE FORM CIQ For vendor or other person doing business with local governmental entity This questlonnaire reflects changes made to the law by H.B. 1491, 80th Leg., Regular Session. OFFICE USE ONLY This questionnaire is being f led in accordance with Chapter 176, Local Govemment Code Date Received by a person who has a business relationship as defined by Section 176.001(1-a) with a local governmental entity and the person meets requirements under Section 176.006(a). Bylaw this questionnaire must be flied with the records administrator of the local governmental entity not laterthan the 7th business day after the date the person becomes aware of facts that require the statement to be filed. See Section 176.006, Local Government Code. A person commits an offense if the person knowingly violates Section 176.006, Local Government Code. An offense under this section is a Class C misdemeanor. t Name of person who has a business relationship with local governmental entity. Joe A. Martinez, Executive Director p ^ Check this box if you are filing an update to a previouslyTiled questionnaire. (The law requires that you file an updated completed questionnaire with the appropriate filing authority not later than the 7th business day after the date the originally filed questionnaire becomes incomplete or inaccurate.) 3 Name of local govemment officer with whom filer has employment or business relationship. Priscilla Leal, City of Corpus Christi, Council Member Name of Officer This section (item 3 including subparts A, B, C & D) must be completed for each officer with whom the filer has an employment or other business relationship as defined by Section 176.001(1-a), Local Govemment Code. Attach additional pages to this Form CIO as necessary. A. Is the local govemment officer named in this section receiving or likely to receive taxable Income other than investment , income, from the filer of the questionnaire? Yes a No B. Is the filer of the questionnaire receiving or likely to receive taxable income, other than investment income, from or at the direction of the local govemment officer named in this section AND the taxable income is not received from the local governmental entity? Yes ~ No C. Is the filer of this questionnaire employed by a corporation or other business entity with respect to which the local govemment officer serves as an officer or director, or holds an ownership of 10 peroent or more? Yes ~ No D. Describe each employment or business relationship with the local government officer named in this section. Council member Priscilla Leal is aboard member of Nueces County Community Action Agency a r `e ~'~~ e s L~ Sig ature p r on doing business with the governmental entity Date Adapted 0 612 9/2 0 0 7 ~~ N ' J O` V/ W cn W d U H ` '' ` ~ U W a ~p <, ~~. U ~~ _ _. ~E .v W W rJU~ yy~aL p U ,yO ~ A~„b1o3 ~Q.. eA~~~ • ~ b~ ..:- ~.;:.. iP::'~ M'. .t ¢' ~ ii l t, s v L4'ZY4 _ EI ~ L. I'.I >„~ - ~ rt., Ye --~ =eFc ~ '-i .i~'Y. tp ate:;- ° +~ a, LTy'2.7. .~~~. 2.. ~ ~o',e~ ac Ac-2t. j „ T__ EL ~. ~ b I C _ ~. L4 i ~~ :l!~ I. ~i _. ~ - - -. -- ~~~~' CAP Estates II - Phase I - 8.24 Acres 42 Single Family Homes ECONOMIC AND DEMOGRAPHIC IMPACT REPORT Nueces County Community Action Agency's partnerships with the City of Corpus Christi, Corpus Christi Community Improvement Corporation (CCCIC), Corpus Christi Community Development Corporation, Corpus Christi Business and Job Development Corporation (4A), and NeighborWorks America have permitted NCCAA to develop Phase I -42 lot subdivision utilizing federal, private, and sales tax dollars. There were many challenges along the way, as any real estate development would encounter, although the most challenging obstacle was maintaining affordability for the low to moderate income families we serve. Currently, NCCAA is embarking on Phase II-57 homes and can now reflect on the accomplishments and impact of Phase I. The data collected in this summary was complied by Housing staff as to a tool to measure the outcome of phase I. Amount Fund T e Source Land Cost $88,831 Grant 4A -Corpus Christi Business & Job Development Corporation - $217.932.22 Total Award Loan ~ $342,000 -CCCDC- Development Corporation $156,000- NeighborWorks America - Funds Down $526,000 Grant FY 02 HOME Funds - $1,000 Payment FY 03 HOME Funds - $279,384 Assistancet FY 04 HOME Funds - $51,616 FY OS 4A - $194.000 The direct constntction economic impact results were calculated from actual home sales and construction costs. Utility costs were calculated using IMPLAN input-output economic modeling system available from the University of Texas-Pan American, Data and Information Systems Center. Calculations were based on a family of four with an income of $31,341. Property taxes were calculated using an average tax assessed value of Phase I homes, times the tax rate of 3.049125%, minus a 20% homestead exemption. ~~. Lot Construction 42 Lots $ 14,000 $588,000 Home Construction 42 Homes $ 81,500 Avera a $3,420,000 Pro ert Taxes 42 Homes $ ],969.25 avera a $82,690 Electricit 42 Homes $ 1,320 Annual Avera a $55,440 Water/Garba a 42 Homes $ 840 Annual Avera a $35,280 Cable/Phone 42 Homes $ 360 Annual Avera a $15,120 ~ # z 3 , > h ,. v,a. i'33.- v ..., d ,t.. - ,~ lYV '. -' Community Pro-rated cost of 20.24 acres. t 30 of 42 families - 12 families funded directly from City, no statistical data available The demographic and statistical data listed below only includes the thirty families assisted by NCCAA. The remaining twelve families were assisted directly through the City of Corpus Christi and no demographic data was obtained from the City. However, all families assisted through the City meet the 80% or below the area median income criteria. Number of Families Average Family Average DPA Size Average AMI Average Income 30 4 $17,633 65% $31,341 ETHNICITY 2, 7% 5, 17' D Hispanic ^African American ^ W hite 76% Married w/ Children l2 Female Headed Single 14 Parent Household Male Headed Single 1 Parent Household Single Adult 3 HOUSEHOLD TYPE 1, 14, 4 DMARRIED WITH CHILDERN 12, 40% ^FEMALE HEADED SINGLE PARENT HOUSEHOLD O MALE HEADED SINGLE PARENT HOUSEHOLD OSINGLE ADULT 2 of 4 4/30/2008 FAMILY SIZE + 1~~I~Y`SI~E 's Avera e 4 LAW ~ Hi 8 ~o 8 m 6 N ill 4 2 0 30 Families DOWN PAYMENT ASSISTANCE $21,000 $20,000 ~ $19,000 c $18,000 E $17,000 Q $16,000 $15,000 $14,000 30 Families AREA MEDIAN INCOME ASSISTED 85% ~ 75% Q ti 65% O e 55% 45% FAMILY 3 of 4 4/30/2008 HOMEBUYER ORIGIN The blue/gray homes signify the homebuyer's original locations before purchasing a home in CAP II and the yellow square identifies CAP Estates II. . , '~IQ11~ S'AI; ~R1C~~ -. ., ~ s ~~ .z..,..,.. ,.., Avera a Sale Price Low Hi $80,746. $79,257.50 $84,500. 'Median sale price in Corpus Christi is $132,500. -Affordable median is $86,000 In 4.4 yeaz the initial investment of $826,447§ will be recaptured from property taxes and utilities. Most importantly, we have given the opportunity to slow-moderate family to invest in our wmmunity and create wealth through homeownership. ' The Real Estate Center at Texas A&M Corpus Christi § The amount is derived from: $88,831 (4A), $526,000 (HOME/4A), and an average for the remaining 12 families assisted at $17,633 = $211,596 totaling $822,447 / $188,530 annual impact = 4.36 yrs 4 of 4 4/30/2008 Exhibit B Project Eligibility Criteria The City's 4A Board of Directors is requesting proposals involving the creation of individually owned single-family housing units that qualify as affordable housing. Affordable Housinst: Texas Revised Civil Statues, Article 5190.6, Section 3(c) includes promotion of the development and expansion of affordable housing as defined by 42 USC 12745 as a projects eligible for the expenditure of economic development sales tax funds (4a funds). This Statute basically provides qualification or restrictions on housing to assure that the housing retains the "affordable" characteristic: Housing that is for homeownership qualifies as affordable if: (1) The initial purchase price does not exceed 95% of the median purchase price for the area, with adjustments for differences in the structure, such as single- family, new or old housing; (2) The home is the principal residence of an owner whose family qualifies as a low-income family (determined at the time of purchase); (3) The home is subject to resale restrictions to provide for resale to qualifying persons with a fair return to the owner and investment made to make the home affordable, and (4) If the home is newly constructed, it meets energy efficiency standards. (5) Rehabilitation of affordable housing would require that sufficient safeguards be placed on the funding to assure that the housing remains affordable with the definition of 42 USC 12745. Proposals must be for affordable single-family home ownership units designed to assist low and moderate income households. Persons assisted must be residents of the City of Corpus Christi; and must meet the following HUD income guidelines: FAMILY ANNUAL INCOME 27000 30850 34700 38550 41650 44700 47800 50900 Revised 3121/07 Income limits are established by HUD and are subject to chance without notice. REAL ESTATE NOTE Date: 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 10 yeazs if the amount ranges $15,000 to $20,000; Terms of payment: This Note shall be due and payable in approximately One Hundred Twenty 1( 20~ 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 installments. The term "principal residence" means a dwelling which, depending on all of the facts and circumstances, including the good faith intent of the occupant, is occupied primarily for residential purposes by the owner. Default in the payment of any part of the principal, when due, or failure to comply with any or the agreement and conditions in any and all instruments given to secure this note including, without limitations any default under the terms and provisions of the Real Estate Notes, shall at the option of the holder hereof, at once mature the whole of this note, without notice. EXHIBIT C Page 1 of 2 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 the court costs. The markers and all endorsers, sureties and guarantors of this note hereby severally waive presentment for payment, notice ofnon-payment, notice of intent to accelerate, notice of acceleration, protest and diligence in bringing suit, against any party hereto, and consent that the time of payment of this note, or any part thereof, may be extended without notice. Each maker is responsible for the entire amount of this note. This note is secured by Deed of Trust covering the following described property situated in Nueces County, Texas, to wit: MAKERS EXHIBIT C Page 2 of 2 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 Christi, 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: Maker: Payee: Corpus Christi Business and Job Development Corporation Final Maturity Date: Due upon earliest of following events: (1) sale or transfer of property. (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): Exhibit D DEED OF TRUST.doc For value received and to secure payment of the note, Grantor conveys the property to Trustee in trust. Grantor warrants and agrees to defend the title to the property. If Grantor performs all the covenants and pays the note according to its terms, this deed of trust has no further effect, and Beneficiary shall release it at Grantor's expense. GRANTOR'S OBLIGATIONS Grantor agrees to: 1. Keep the property in good repair and condition. 2. Pay all taxes and assessments on the property when due. 3. Presence 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 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. 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. 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: a. Grantor agrees to occupy the property described in this deed of trust as Grantor's principal residence. b. As used in this deed of trust, "principal residence" means a home which, depending upon all of the facts and circumstances (including the DEED OF TRUST.doc good faith of the occupant) is occupied primarily for residential purposes by Grantor. c. 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). d. Grantor agrees to submit annual recertification, in a form prescribed by Beneficiary, to the Beneficiary to evidence Grantor's occupancy under the provisions of this Deed of Trust. e. 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 the property, 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. 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 perform those obligations and be reimbursed by Grantor on demand at the place where the note is payable for any sums so paid, including attorney's fees, plus interest on those sums from the dates of payment at the rate stated in the note for matured, unpaid amounts. The sum to be reimbursed shall be secured by this deed of trust. 5. If Grantor defaults on the note or fails to perform any of Grantor's obligations or if default occurs on a prior lien note or other instrument, Beneficiary may: a. Declare the unpaid principal balance and earned interest on the note immediately due. DEED OF TRUST.doc 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. 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 by this deed of trust, or any interest in the property covered by this deed of trust, 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 prior liens and to other exceptions to conveyance and warranty. 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. 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. DEED OF TRUST.doc 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 remains 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 must 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 the sums to reduce the note. Beneficiary is 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. a. Leases are not assigned. b. 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. c. Grantor shall 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. d. 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. e. Beneficiary neither has nor assumes any obligations as lessor or landlord with respect to any occupant of the property. f. Beneficiary may exercise Beneficiary's rights and remedies under this paragraph without taking possession of the property. g. Beneficiary shall apply all rent and other income and receipts collected under this paragraph first to expenses incurred in exercising Beneficiary's rights and remedies and then to Grantor's obligations under the note and this deed of trust in the order determined by Beneficiary. DEED OF TRUST.doc h. 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. i. 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 do not exceed the maximum amount of nonusurious interest that may be contracted for, taken, reserved, charged, or received under law. a. Any interest in excess of that maximum amount shall be credited on the principal of the debt or, if that has been paid, refunded. b. 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. c. This provision overrides other provisions in this and all other instruments concerning the debt. 9. In the event the property described in this deed of trust is subject to prior liens in favor of third parties, any default under any prior lien instrument is a default under this deed of trust. 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 binds, inures to the benefit of, and may be exercised by successors in interest of all parties. 13. The note secured by this deed of trust evidences funds advanced for a portion of the purchase price of the property described in this deed of trust, and is additionally secured by a vendor's lien on the property. 14. Upon the sale, rent, or change of ownership of the property described in this deed of trust for any reasons, by any means, or upon the death of the Makers of the Real Estate Note(s) secured by this deed of trust, the entire principal and appropriate interest of the Real Estate Note(s) immediately become due and payable without notice or presentment of any kind including, without limitations, notice of intent to accelerate and notice of acceleration. a. The Executive Director of the Corpus Christi Business and Job Development Corporation may waive this requirement upon the written DEED OF TRUST.doc request of the Makers of the Real Estate Note(s) or their heirs, successors, and assigns. b. 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 , 200_ A.D. Name: Name: STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on the day of , 200_, by Notary Public, State of Texas STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on the day of , 200_, by Notary Public, State of Texas DEED OF TRUST.doc 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 DEED OF TRUST.doc