HomeMy WebLinkAbout032489 RES - 06/29/2021Resolution revising the Infill Housing Incentive Program Guidelines as
authorized by Article II, Chapter 20 of the City of Corpus Christi Code of
Ordinances; and authorizing a two-year agreement with the Corpus Christi
B Corporation to provide Type B affordable housing funding in the amount
of $1,250,000 for costs related to the Infill Housing Incentive Program.
WHEREAS, on December 15, 2015, the City Council enacted Articles I and ll,
Chapter 20 of the Code of Ordinances which established definitions and parameters for
an Infill Housing Incentive Program for the City of Corpus Christi;
WHEREAS, the THIP has not been as successful as the City anticipated and city
staff was directed to meet with local homebuilders to determine what changes could be
made to the IHIP program guidelines to increase home builder participation;
WHEREAS, Article II, Chapter 20 of the City Code authorizes the City Council to
amend the Infill Housing Incentive Program ("IHIP") Guidelines by Resolution; and
WHEREAS, city staff and management have developed amended Infill Housing
Incentive Program Guidelines for the IHIP for City Council consideration which are
attached hereto as Exhibit "A."
Be it resolved by the City Council of the City of Corpus Christi, Texas:
Section 1. The City Council specifically finds that the foregoing statements
included in the preamble of this resolution are true and correct and adopts such findings
for all intents and purposes related to the authorization of this procurement.
Section 2. The City Council hereby adopts the amended Infill Housing Incentive
Program Guidelines attached hereto and incorporated herein as Exhibit "A" in accordance
with Article II, Chapter 20 of the City Code of Ordinances.
Section 3. The City Manager, or designee, is authorized to execute all documents
necessary for a two-year agreement with the Corpus Christi B Corporation to provide Type
B affordable housing funding in the amount of $1,250,000 for costs related to that Infill
Housing Incentive Program.
032489
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SCANNED
PASSED AND APPROVED on the(i day of `Jud , 2021:
Paulette M. Guajardo
Roland Barrera
Gil Hernandez
Michael Hunter
Billy Lerma
John Martinez
Ben Molina
Mike Pusley
Greg Smith
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Al5L
ATTEST: &ItY OF CORPUS CHRISTI
Rebecca Huerta Paulette M. Guajardo
City Secretary
Mayor
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City of Corpus Christi
Infill Housing Incentive Program (IHIP)
Program Guidelines
Table of Contents
Table of Contents 1
1. Purpose 2
2. Benefits 2
3. Definitions 2
4. Eligibility Criteria 2
5. Incentives 3
6. Sale of City Owned Lots by Bid 3
7. Department Responsibilities 3
8. Other Conditions 4
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June 18, 2021
City of Corpus Christi
Infill Housing Incentive Program (IHIP) Guidelines
1. Purpose
The purpose of the Corpus Christi Infill Housing Incentive Program (IHIP) is to promote and
encourage new home construction for sale to low-income homebuyers through
reimbursement of fees and other limited construction costs. This program applies to targeted
low- to moderate -income areas where existing street and utility infrastructure is available.
2. Benefits
a. Increases homeownership opportunities for low-income buyers
b. Revitalizes existing neighborhoods
c. Adds to the assessed value rolls, increasing future City property tax revenue
d. Improves maintenance of properties and potentially reduces crime
e. Reduces Code Enforcement abatement expense
3. Definitions
"Infill lot" or "infill housing" is the insertion of additional housing units into an already
approved subdivision or neighborhood. Specifically for this Infill Housing Incentive Program,
this means the construction of new residential housing units built onsite on a vacant lot or
built on two non -conforming lots by re -platting through an administrative plat to remove the
lot line, in Community Development Block Grant (CDBG) designated areas within the City
of Corpus Christi.
4. Eligibility Criteria
a. Homes constructed must be within the City's CDBG designated areas.
b. Must meet the definition of infill lots.
c. Must be in one of the following single-family residential zones:
• RS -15, RS -10, RS -6 and RS -4.5 (see Unified Development Code for definitions).
d. Must not be in an airport overflight zone or the Navy's Air Installations Compatible Use Zones
(AICUZ), which includes the Accident Potential Zones (APZ) and Clear Zones.
e. Home construction must begin within 120 days of being notified that the funding reservation
is granted.
f. Home construction must be completed and receive Certificate of Occupancy within nine
months of construction start date.
1) Must meet all building standards and Unified Development Code requirements.
2) Must result in a newly constructed, on-site, single family home with finished floor plan of
900 square feet minimum.
g. No mobile homes, no prebuilt homes moved onto the site.
1) Will be subject to all permit requirements.
2) Sales price and finished home value of $80,000 minimum not to exceed 80% of the area
median sales price as determined by 42 U.S.C. Section 12745 adjusted annually.
h. Home must be sold to a household with income at or below 80% of the area median.
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5. Incentives
a. After the sale of the property to the homebuyer, the builder may receive reimbursement of
fees paid to the City and limited construction expenses, not to exceed $25,000.
Reimbursable fees and expenses may include those for building permits, platting, zoning,
taps, demolition, water/wastewater infrastructure, and required alley or street
improvements.
b. Builders will be able to reserve funds by submitting their business information such as name
and contact information, the lot address, ownership status, funding request projected
completion schedule and projected sales price. To receive reimbursement after the home
sells, the developer will submit proof that all permits have closed, the sales contract/closing
documents showing that the sales price and completed value don't exceed the maximum
limit and proof of eligible expenses. The Department will verify the buyer's income level and
if all qualifications are met, the Department will then process the reimbursement.
c. Commitments made to any one Builder will not exceed five homes at any one time.
d. Commitments may be released if Builders do not meet the construction start and completion
time requirements.
6. Sale of City Owned Lots by Bid
a. Selected city owned infill lots will be advertised and sold for fair market value through a
sealed bid process in accordance with V.T.C.A., Local Government Code § 272.001.
b. Bids must confirm to the bid procedures and specifications set forth in the published notice
of sale.
c. Infill lots will be awarded to the highest bidder. However, the city reserves the right to accept
a bid that is lower than the highest bid received if the highest bidder does not meet the
criteria of subsection 20-5(b) and the city has determined that a lower bid provides the best
benefit for the taxpayers of the city.
d. If the city accepts a bid that is lower than the highest bid received, as described above, then
such bid will be deemed the fair market value of the property.
e. Bidder awarded the infill lot will comply with all requirements specified in the program
guidelines.
7. Department Responsibilities
a. Executive/Management will:
1) Establish program objectives and develop implementation procedures.
2) Report to City Council the results of the program on at least an annual basis.
b. Neighborhood Services Department will:
1) Manage the overall program to meet housing needs of the community.
2) Update website information about this program including the names of builders,
the Tots for which funds have been provided and reservations made, map of CDBG low -to
moderate -income block groups, funds' reservation application and maximum sales price
limit.
3) Confirm Builders eligibility for program.
3) Income certify homebuyers prior to sale.
4) Educate realtors and lenders on program availability.
5) Promote program to interested buyers.
5) Enforce recapture provisions.
• Homebuyers will be required to repay subsidy through net proceeds upon transfer of
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the property to a subsequent owner or if the home ceases to be their primary
residence.
• Transfer of the property through inheritance without repayment is allowable if the new
homeowner is low-income and accepts full repayment terms upon subsequent
transfer of ownership.
8. Other Conditions
a. This program will be monitored and assessed for viability and may be discontinued at the
discretion of the City of Corpus Christi.
b. The City will comply with the Tax Code Sec 34.051 Resale by taxing unit for the
purpose of urban development.
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