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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.