HomeMy WebLinkAboutC2016-675 - 8/16/2016 - Approved AGREEMENT BETWEEN CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT
CORPORATION AND
CITY OF CORPUS CHRISTI FOR
TYPE A AFFORDABLE HOUSING PROGRAM — HOMEBUYER ASSISTANCE PROGRAM
This Agreement for the Type A Affordable Housing Program — Homebuyer Assistance Program
("Agreement") is entered into between the Corpus Christi Business and Job Development Corporation
("Corporation") and the City of Corpus Christi ("City") a Texas home rule municipality.
WHEREAS, the Texas Legislature in Section 501 of the Local Government Code (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 passed Proposition 2, New and
Expanded Business Enterprises, which authorized the adoption of a sales and use tax for the
promotion and development of new and expanded business enterprises at the rate of one-eighth of
one percent to be imposed for 15 years;
WHEREAS, in the same election, the residents of the City passed Proposition 2B, Affordable
Housing, which authorized the use of a portion of the sales and use tax approved under Proposition 2
for affordable housing, up to $500,000 annually, so long as there are projects for which the amount
can reasonably be used, and $150,000 has been awarded by the Corporation to the Corpus Christi
Housing Authority this fiscal year;
WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 and allocated under
Proposition 2B for affordable housing was subsequently enacted by the City's City Council ("City
Council") and filed with the State Comptroller of Texas, effective April 1, 2003, to be administered by
the Corporation's Board of Directors ("Board");
WHEREAS, the Board wishes to fund affordable housing projects in an effective manner;
WHEREAS, the City through its Housing and Community Development Department
("Department") manages several programs to assist eligible citizens with affordable housing;
WHEREAS, the City is willing to provide the services that the Board wishes to fund and has
provided these services in the past for the Board;
WHEREAS, the Board has determined that it is in the best interests of the residents of the City
that the City be awarded affordable housing funds, by execution of this Agreement, to accomplish the
affordable housing project described in Exhibit "A" of this Agreement ("Project");
In consideration of the covenants, promises, and conditions stated in this Agreement, the
Corporation and the City agree as follows:
1. Agreement to Provide Affordable Housing Services. This Agreement between the Corporation
and the City is executed to implement the promotion and development of an affordable housing
' ' ' 16- - 1 is incorporated in this Agreement byreference. The parties have
C2016-675 p g
8/16/16 ount not to exceed $221,000, of which up to $21,000 will reimburse
Res. 030921
Homebuyer Assistance Program
Page 1 of 8
SCANNED
City for staff time in implementing the Project. The parties have agreed that $200,000 will be used to
implement the Project and to process applications from the citizens for funds under the Project. The
funds provided under this agreement may not be used for any other projects or to reimburse the City
for any staff time which is unrelated to this Project. Any funds not used for the implementation of the
Project will be returned to the Corporation.
2. Reimbursement Process. The Parties agree that the City's Housing and Community
Development Department (the "Department") will request reimbursement for staff time on a quarterly
basis. Request for reimbursement shall be submitted to the Executive Director of the Board.
Reimbursement requests shall list the number of homebuyers who received loans under the Project,
the total number of applicants, the number of hours spent reviewing and processing loan applications,
and the hourly rate at which the staff time is charged. Reimbursement requests containing all of the
required information shall be processed within 30 days.
3. Quarterly Updates. At the Board's meeting following the end of each quarter, the Director of the
Department will present an update on the program to the Board. The update will include the number
of loans processed, the number of applicants, and the number of hours spent reviewing and
processing loan applications during the preceding quarter.
4. Effective Date. The effective date of this Program Agreement is the date on which the City
Council grants approval to the Corporation for this Project, so long as all parties have executed this
Agreement.
5. Term. The term of this Agreement is from April 1, 2016 through September 30, 2016.
6. Amendments or Modifications. No amendments or modifications to this Agreement or to the
Project 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.
7. Notices.
a. Any required written notices shall be sent, certified mail, return receipt requested,
addressed as follows:
If to Corporation:
City of Corpus Christi Business and Job Development Corporation
Attn: President, R. Bryan Gulley
1201 Leopard Street
Corpus Christi, Texas 78401
If to City:
City of Corpus Christi
Attn.: Director of Housing and Community Development Department
P.O. Box 9277
Corpus Christi, Texas 78469-9277
Page 2 of 8
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.
8. Relationship of Parties. In performing this Agreement, the Corporation and the City shall act in
an individual capacity, and not as agents, representatives, employees, employers, partners, joint-
venturers, or associates of one another. The employees or agents of either party may not be, nor be
construed to be, the employees or agents of the other party for any purpose.
CORPUS CHRISTI BUSINESS &
JOB DEVELOPMENT CORPORATION 60m
:„�;...:....,.o- AUAA--‘
t'UlflrCll.�., 1.1(1)
R. Bryan Gulley /
President - -
SFC ETA ,
Date: 9- /C
ATTEST: CITY OF CORPUS CHRISTI
lAeA7 4r ///
Rebecca Huerta E. Jay E ng •n
City Secretary Interim st. t Cit Man-' -r
Date: ( 07, 9 / I Cp Date: CC zg /-
APPROVED AS TO FORM:
auv:w J241,0 -4L) !I4 (e 9=1 IQ)
Aimee Alcorn-Reed Yv;e Aguilar s
Assistant City Attorney As tant Ci• Att. ey
Attorney for Corporation Attorney •r City Housing and Community Development
Page 3 of 8
Exhibit A
Corpus Christi Business and
Job Development Corporation
TYPE A Affordable Housing - Homebuyer Assistance Program
Guidelines for the Program and Criteria for Application
REVISED 4/8/16
Page 4 of 8
Corpus Christi Business and Job Development Corporation
TYPE A Homebuyer Assistance Program
Guidelines for the Program and Criteria for Application
I. Purpose
The purpose of the program is to expand affordable housing opportunities for low income homebuyers by providing
a deferred forgivable loan to be utilized for down payment assistance to buy down the purchase price of the home.
II. General Program Description:
The funding is available to qualified homebuyers for the purpose of providing down payment assistance a deferred
forgivable loan to buy down the purchase price of an affordable home. Affordable housing is any house with a
purchase price which does not exceed 95% of the Metropolitan Statistical Area as determined by HUD.
The intent is to provide general terms/guidelines in order to accomplish the buy down of the purchase price to make
the home affordable for households with incomes in the 80% of median income ranges (see Attachment A, 80% of
Median Income Chart).
The funding will be in the form of a deferred forgivable loan for$10,000.
The term of affordability will be 5 years.
The loan will be amortized over the specified affordability period, commencing on the closure date, and forgiven at a
rate of$2,000 per year for every year the homebuyer lives in the house. Should the homebuyer move out before the
affordability period ends, then the remaining period will be prorated and must be paid back. Recapture provisions
require repayment of the total loan amount on a prorated basis. If the buyer sells the property within the affordability
period, the balance of the amortized loan shall be due and payable. The funding is available on a first come, first
serve basis.
Ill. Housing Standards:
The home must pass a Housing Quality Standards (HQS) inspection, which is conducted by HCD staff. If the
house was build prior to 1978, a lead based paint test inspection will be required in accordance with HUD Lead
Based Paint Regulations.
The house cannot be located in a 100 year flood plain. Per 24 CFR Part 55: Properties located within the 100 year
floodplain are vulnerable to a 100-year flood, and a 1 percent chance of a flood occurring every year.
IV. Homebuyer Eligibility:
Prospective homebuyers shall meet the gross annual income limits adjusted for family size as determined by HUD
(see Attachment A). The Housing and Community Development Department (HCD) will determine the applicant's
anticipated annual gross income. Anticipated annual gross income is an estimation of future income a purchasing
household expects to receive based upon their current and future monthly income annualized over a 12 month period.
Some examples of future income are bonuses, pay raises, commissions or over time. HCD requirement)
Homebuyers must attend a HUD approved Homebuyer/Homeownership class to obtain a Homebuyer Education
Certificate. The certificate cannot be older than one year from the date of issue, and cannot be obtained from an
online class. If two or more persons are buying a home together, all must attend a class and provide a copy of the
Homebuyer Education Certificate.
HUD Approved Housing Counseling Agencies can be found here:
Page 5 of 8
http://www.hud.qov/offices/hsq/sfh/hcc/hcs,cfm
The purchasing household size will be determined by the Housing and Community Development Department using
HUD's definition of purchasing household. Purchasing household includes all persons who will be occupying the units
as their permanent residence. A member of a household is considered to a permanent member of the household if
they have been living as a member of the household for at least six months or more. (HUD and HUD requirement)
Homebuyer's cash on hand cannot exceed program limits.
Housing and Community Development will make a determination of eligibility at the time the mortgage lender
submits the required documents listed in section (V. Lender Requirements) below. 'HCD requirement)
The homebuyer will be issued a Commitment Letter review and approval of all required submitted documents. The
Commitment Letter will expire 6 months from the date of issuance. At the time of application, the homebuyer
cannot have ownership in any property.
The housing ratio ("front end ratio") must fall between 28%-32%
The total debt ratio ("back end ratio") may not exceed 45%
V. Lender Requirements:
The Lender will be required to submit the following to HCD:
o Loan Estimate Form
o Lender conditional loan approval
o Signed and dated 1003
o Copy of the credit report obtained by the Lender
o Escrow Earnest Money Contract (sales price cannot exceed $162,000)
o Six months of the most recent bank statements
o VOE (verification of employment)
o Paycheck stubs for past 3 months; HCD requirement)
o Proof of child support; print out from the Office of the Attorney General
o Copy of the divorce decree- if applicable
o Tax transcripts from the past two years
o Government issued identification for all purchasing household members
o Copy of social security card of all members of the household
o Copy of the Homebuyer Education Certificate (no older than on year from date of issue)
o Proof of U.S. citizenship or if a resident alien, must provide both a Social Security card
o Underwriter Summary (1008) —to be provided prior to HCD issuing the Commitment Letter
o Appraisal (that shows 'As-Is' value)
o Title Commitment showing the 1st and 2nd Liens (upon final loan approval)
o Closing Disclosure (upon final loan approval)
Page 6 of 8
VI. Title Company Requirements:
HCD will give the approval for closing and will wire funds to the Title Company.
The Title Company will provide to HCD the original signed promissory note, the recorded City of Corpus Christi
Deed of Trust, Recorded Warranty Deed, Final signed Closing Disclosure, Insurance Binder which shows all liens,
and the Title Policy which shows HCD as a lien holder.
The Title Company will be responsible for ensuring that all documents are complete and correct.
Page 7 of 8
INCOME LIMITS (80% of MEDIAN INCOME)
FAMILY SIZE 1 2 3 4 5 6 7 8
ANNUAL INCOME 32,500 37,200 41,850 46,500 50,250 53,950 57,700 61,400
Revised 3/28/2016*Income limits are established by HUD and are subject to change without notice
Page 8 of 8
CERTIFICATE OF INTERESTED PARTIES FORM 1295
1 of 1
Complete Nos.1-4 and 6 if there are interested parties. OFFICE USE ONLY
Complete Nos.1,2,3,5,and 6 if there are no interested parties. CERTIFICATION OF FILING
1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number:
of business. 2016-129812
Corpus Christi Business and Job Development Corp
Corpus Christi,TX United States Date Filed:
2 Name of governmental entity or state agency that is a party to the contract for which the form is 10/27/2016
being filed. (�
City of Corpus Christi Date ckno ledged:-�,._.X
-I 11 1( � U
3 Provide the identification number used by the governmental entity or state agency to track or identify the co tract and provide a
description of the services,goods,or other property to be provided under the contract.
XXXX
Down Payment Assistance Program
Nature of interest
4 Name of Interested Party City,State,Country(place of business) (check applicable)
Controlling I Intermediary
Culbertson, Mike Corpus Christi,TX United States X
City of Corpus Christi Corpus Christi,TX United States X
Sanchez,Constance Corpus Christi,TX United States X
Trujillo,Lee Corpus Christi,TX United States X
Guerra,Gabe Corpus Christi,TX United States X
Braselton, Bart Corpus Christi,TX United States X
Maldonado, Randy Corpus Christi,TX United States X
Gulley, R.Bryan Corpus Christi,TX United States X
5 Check only if there is NO Interested Party. ❑
6 AFFIDAVIT I swear,or affirm,under penalty of perjury,that the above disclosure is true and correct.
,,,,',5. :(..'•:?''.;,..'",'
PaP , ;'ONIQUE TAMEZ LERMA ►
��(��y�" Not lry "1i7h c ►
, ' l�ti i•i STAlt nr TEXAS ►
Vl.;:i.* •.•,:,e.,` MyComm. Ex 01-23-2017 '
„„..„E". Signatur• of authoriz-+ agent of contracting business entity
AFFIX NOTARY STAMP/SEAL ABOVE •
Sw 9 t and subscribed before me,by the said \3X' 0.1 \ 60.11C, ,this the ( I—}, day of ' '+v���i'�ili/,Y
20 1p ,to certify which,witness hand and seal of offic . i
--'44/
�( 1,1V° T 2Lorrva) 'ni Plait�',
Sign re of officer adminis ng oath Printed name of officer administering oath Title of officer admering oath
Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277