HomeMy WebLinkAbout028251 RES - 07/28/2009Page 1 of 2
RESOLUTION
APPROVING THE CORPUS CHRISTI BUSINESS AND JOB
DEVELOPMENT CORPORATION'S AFFORDABLE HOUSING — NEW
CONSTRUCTION PROGRAM AND THE PROGRAM GUIDELINES
WHEREAS, the Corpus Christi Business and Job Development Corporation ("4A
Board") has budgeted $250,000 of its FY 2009-2010 affordable housing funds for the 4A
Board's Affordable Housing — New Construction Program and has adopted guidelines
for the administration of the funds;
WHEREAS, the Affordable Housing — New Construction Program will make up to
$20,000 available to new low and moderate income home buyers for down payment
assistance;
WHEREAS, the assistance will be provided in coordination with qualified home builders
on a first come, first serve basis until the funds are expended; and
WHEREAS, City Council deems that it is the best interest of the City and citizens to
approve the Affordable Housing — New Construction Program and guidelines.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. That the 4A Board's Affordable Housing — New Construction Program and
guidelines for the administration of the funds, which is attached to this resolution as
Exhibit A, is approved.
ATTEST:
Armando Chapa
City Secretary
APPROVED: 23rd day of July, 2009.
R. Jining
First Assistant City Attorney
For City Attorney
THE CITY OF CORPUS CHRISTI
Joe Ad e
Mayor
02825
RESOLUTION -- Affordable Housing — New Construction Program 07212009
Page 2 of 2
Corpus Christi, Texas
4 of (ir , 2009
The above resolution was passed by the following vote:
Joe Adame
Chris N. Adler
Brent Chesney tn��kC
Larry R. Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
4
John E. Marez , U`eaf
Nelda Martinez /4!,
Mark Scott G/
028251
RESOLUTION --Affordable Housing -- New Construction Program 07212009.doc
Corpus Christi Business and Job Development Corporation
Affordable Housing - New Construction Program
Guidelines for the Program and Criteria for Application
Purpose
The purpose of the program is to expand affordable housing
opportunities for low income homebuyers by providing a deferred
forgivable loan to buy down the final purchase price of a home.
II. General Program Description:
• The funding is available to qualified builders for the purpose of buying
down the final purchase price of the affordable home.
• Affordable housing is defined as owner occupied housing that is
accessible to households at a cost that does not exceed 30% of the
monthly household income.
• The intent is to provide general terms/guidelines as not to limit builders
on the specific use of the funds, but rather accomplish the buy down of
the final 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 up to
$20,000 per home.
• The term of affordability will be 10 years.
• The loan will be amortized over the specified affordability period
commencing on the closure date. 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. Any funds repaid by the
homebuyer as a result of sale of the property will be used to assist
other homebuyers.
• The funding will be available on a first come, first serve basis and as
funds are available.
• Program Start Date —August 1, 2009. Funding through this program is
not available until August 1, 2009.
• Builders can participate in only one of the two 4A Affordable Housing
programs or any other Affordable Housing program administered by
the City of Corpus Christi per fiscal year.
Exhibit A
III. Builder Eligibility:
• The City of Corpus Christi will review the federal "Debarred" list of
contractors and subcontractors for clearance to proceed as assurance
we are working with creditable contractors. The City will also check
the status of the builder with the Texas Residential Construction
Commission's website, which will provide the builder's registration
status as of August 31, 2009. (While the Commission has been
abolished under the Texas Sunset Act, it will be winding down its
operations until August 31, 2010.) This information will be used to
determine if further inquiry is needed to determine whether the builder
is capable of meeting the program's expectations.
IV. Construction Standards:
• The work will be performed in accordance with the most current
applicable City Technical Construction Codes, including the Energy
Code.
• The house must comply with the State Board of Insurance Windstorm
Codes.
• The house must meet FHA and VA requirements.
• The house can not be located in a 100 year flood plain.
• The house must be constructed for wheel chair accessibility. (Door
widths, blocking for grab bars, no step entrance.)
The costs of the new home must include the pricing of standard
features, and may not include luxury upgrades.
V. Homebuyer Eligibility:
• Prospective homebuyers shall attend a Homebuyer Education Class.
• The household size will be determined by Neighborhood Services
Department.
Homebuyer's cash on hand cannot exceed program limits.
• Neighborhood Services Department will make a determination of
eligibility at the time the mortgage lender submits the required
documents.
The homebuyer will be issued a Commitment Letter after the review of
all submitted documents. The Commitment Letter will expire 60 days
from the date of issuance. A 30 day extension may be given at the
sole discretion of the Neighborhood Services Department.
• The homebuyer cannot have ownership in any real estate property or
ownership in any house.
VI. Lender Requirements:
• The Lender will be required to submit the following:
o Copy of escrowed earnest money contract;
o Final certified HUD 1003 application with signatures;
o Three most recent bank statements;
o Lender's employment verification;
o Paycheck stubs for past 6 months;
o Current federal/state issued picture identification for all purchasing
members;
o Proof of U.S. citizenship or if a resident alien, must provide both a
Social Security card and Green card;
o Social Security cards for all purchasing members;
o Proof of all assets;
o Certified appraisal
o Mortgage Credit Analysis Worksheet; and
o Homebuyer class certificate issued by a HUD approved agency.
VII. Title Company Requirements:
. The Title Company will be responsible for ensuring that all documents
are complete and correct.
At closing, the Title Company will provide Neighborhood Services
Department, the following:
o An itemization of the closing costs (Settlement Statement);
o Deed of Trust and Promissory Note; and
o Warranty Deed.
. The Title Company will execute the City of Corpus Christi's Deed of
Trust and Promissory Note and forward original's to the City. The Title
Company will file one original Deed of Trust and one original
Promissory Note with the Nueces County Courthouse file of records.
• Neighborhood Services Department will give the Title Company
approval for closing and will process check to be issued to the Title
Company. The processing of the check takes five working days, from
the date and time approval is given to close.
• Title Company will ensure there are no existing liens, judgments, etc.
against the property being purchased by the homebuyer.
VIII. Application Criteria and Process:
• Builders will be required to submit an application requesting the use of
funds based on the following:
o Narrative of the Proposed Project(s)
o Qualifications and Experience Information
o Financial Capabilities
o Disclosure of Interest Form
o Conflict of Interest Questionnaire Form
ATTACHMENT A
INCOME LIMITS (80% of MEDIAN INCOME)
Family Size
1
4
6
: •
7
Annual
Income
28,100
32,100
36,150
40,150
43,350
46,550
49,800
53,000
Estimated
Mortgage
Loan
Range
70,250
84,300
80,250
96,300
90,375
108,450
100,375
120,450
108,462
130,050
116,375
139,650
124,500
149,400
132,500
159,000
Revised 3/19/09: Income limits are established by HUD and are subject to change without notice.