HomeMy WebLinkAboutResolution - 4810 - Grant Application - HOPE 3 - Local Matching Funds - 04_13_1995Resolution No. 4810
April 13, 1995
Item #40
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to
execute for and on behalf of the City of Lubbock, a HOPE 3 Implementation Grant Application
for the 1995 and related documents and
THAT the City Council of the City of Lubbock hereby authorizes said Implementation
Grant Application containing local matching funds for the total amount of $250,000.00 from:
1. The donation of four City owned houses totalling $190,732.00; and
2. Previously approved lots donated by the URA Board and City Council for
the HOPE program totalling $20,000.00; and
3. CDBG administrative funding of up to $50,000.00 eligible as match under
the HOPE Program.
THAT said application is attached hereto and incorporated in this Resolution as if fully
set forth herein and shall be included in the minutes of the Council.
Passed by the City Council this 13th 0Anri L_ , 1995.
ATTEST:
I � I -- C��L
etty ,. , ohnson ity Secretary
APPROVED AS TO C TENT:
Doug Goo , Managing Director of
Communi evelopment and Health Services
APPROVED AS TO FORM:
js/WGRTAPP.RES
ccdocs/Apri13, 1995
U.S. Department of Housing and Urban Development
Resolution No. 4810
April
Office of Community Planning and Development Item#40 � 1995
Guidance for 1995
HOPE 3 Implementation
Grant Applicants
HOPE 3
Checklist of Exhibits
Please insert page numbers
2 Exhibit I Applicant Information
F33:571 Exhibit 2 Program Design and Other Information "
58-73 Exhibit 3 Program Budget and Plan for Use of Sale and Resale Proceeds
74-76 Exhibit 4 Fair Housing and Equal Opportunity
77-78 Exhibit 5 Flexibility and Special Opportunities
Statutory Certifications (Required by law)
Certifications Concerning Use of Federal Funds for Lobbying
Applicant Certifications
Certification of Consistency with the Consolidated Plan / CHAS
Standard Form 424
Evaluation by Customer. (Optional)
Page L�
Exhibit 1:
Applicant Information
Please provide us with the following information about your organization:
1. Who is applying? Please identify for us the lead applicant who will execute the grant agreement, as well
as any other entities applying with the lead applicant. (Public agencies cannot apply alone but must be joined
by a non-profit organization). Please describe also the roles that each applicant will play in implementing
the program.
2. Please describe the experience of the applicant and its cooperating endties. This includes:
The capability to handle financial resources. We encourage you to include an auditor's summary or
other certification from an independent CPA, and to describe previous experience of key staff to help
demonstrate this capacity. Please indicate any unresolved or outstanding audit findings and the steps being
taken to address them.
The capability to manage the proposed program as a whole demonstrated through previous experience
of the applicant or key staff in managing acquisition, rehabilitation, construction, real estate financing,
counseling and training, or other relevant activities.
If you received a HOPE 3 grant over the last two years, please describe your general progress in
implementing that grant including information such as the percent of grant funds expended, and specific
progress you have made in acquiring, rehabilitating or selling units.
3. Please describe for us the private nonprofit organizations participating in the application. In particular,
please provide:
• A list of all board members (including names and titles) identifying those members who are private
individuals acting in a private capacity.
• Evidence of the IRS ruling providing tax exempt status under Section 501(c)of the IRS Code of 1986,
as amended.
A certification signed by an authorized representative of the organization that the organization has
a voluntary Board of Directors (see recommended form of certification below).
4. If your application includes a cooperative association, please attach an opinion of counsel that the
organization is currently organized and existing under the laws of the applicable State, territory, local
government, or Indian tribe, and has as its primary purpose acquiring, owning and operating housing for
its members or shareholders, as applicable.
Recommended form of certification:
(Name of Organization) certifies that the members of its Board of Directors serve in a voluntary capacity
and receive no compensation, other than reimbursement for expenses, for their services and the nonprofit
organization operates in a manner so that no part of its net earnings inures to the benefit of any individual,
corporation, or other entity.
Signature of Authorized Certifying Official I Date
This
SEE THIS CERTIFICATION WITH NON PROFIT
Page
EXHIBIT 1
APPLICANT INFORMATION
A. Who is applying?
The Housing Section staff of the City of Lubbock will execute
the Grant Agreement as well as administer the HOPE 3
Homeownership Program.
Lubbock Habitat for Humanity and Community Housing
Resource Board will perform as the non -profits.
The City of Lubbock Housing Section will purchase the homes
for the program, take applications, underwrite the loans,
prepare the rehab write-ups, do the loan closings, inspect the
rehab work, and administer the program in general.
Lubbock Habitat for Humanity will do all homebuyer outreach
for the program. This will include advertising the program in
the local newspapers, including the minority newspapers.
Fliers and posters will be distributed to neighborhood schools,
community centers and churches in areas for those considered
least likely to apply. Habitat will also do outreach classes
explaining the HOPE 3 program guidelines and the
responsibilities of being a HOPE 3 Homeowner to interested
participants, keep records of attendance and distribute
certificates to those attending the classes.
Community Housing Resource Board will conduct six (6) post
homeownership counseling and training classes including
planning and scheduling the classes, obtaining the instructors,
notifying the HOPE 3 Homeowners, keeping records of
attendance, presiding over the classes, insure that
homeowners attend four of the six classes and issue
Certificates of Completion upon homeowners compliance.
B. Experience of the Applicant
The staff that will carry out the HOPE 3 Homeownership
Program will be the Housing Section of the City of Lubbock.
There will be a Housing Rehabilitation Coordinator, four
3
HOPE 3 Application - Exhibit 1
Page 2
Housing Inspectors, a Loan Specialist, a Secretary and a
Bookkeeper.
The staff of the Housing Section has extensive experience in
handling financial resources. For example, the staff has
administered a Housing Rehabilitation Program for over
twenty years. Chants, as well as no interest deferred payment
loans and below market interest rate loans, have been made.
Also, the Housing staff has been an active participant in the
HUD Section 312 Loan Program, having participated in it for
almost fifteen years. The City administered three years of the
Urban Homestead Program successfully.
In addition, the City currently implements a Joint Venture for
Affordable housing Program. The local HUD Federal Housing
Administration Office, the Local Homebuilders Association and
the City of Lubbock are in partnership to construct affordable
housing. The City makes the lots available and takes
preliminary application profiles from potential mortgage loan
applicants. FHA insures the loans, the local lending
institutions make the loans and the homebuilders are
committed to building affordable housing (between $28,000
and $40,000) in virtually untried low income areas of the City.
The Joint Venture for Affordable Housing Program utilizes no
federal funding whatsoever. Families wanting to buy a home,
usually first time homebuyers, apply to have a profile of their
eligibility for a mortgage loan to the Housing Section office.
Their employment is verified, their recurring expenses are
verified and credit history is looked at. After all income and
living expenses have been verified, underwriting ratios are
looked at. This information enables the Housing Section to
determine the size and cost of house the family would be
eligible for. After the size and cost of house is determined,
the family is provided with a list of new construction
contractor and they shop for the best deal they can get. Once
a builder and lot is selected, the family is provided with their
Mortgage Profile that they and their builder can present to the
Mortgage Lender of their choice. The eligibility is based on
FHA Mortgage Insurance guidelines and the lenders utilize our
information to fund the loan. Since the inception of the
Affordable Housing Program, an estimated 33 new Affordable
Houses have been built. This program has generated over $3
Million in new construction activity.
4
HOPE 3 Application - Exhibit 1
Page 3
The City of Lubbock's second Homeownership Program has
been Urban Homestead. Under this homeownership program,
34 properties have been acquired and disposed of to eligible
homesteaders. All 34 properties were rehabilitated utilizing
the Section 312 Loan Program. The first group of
homesteaders are now receiving unconditional ownership to
their properties.
In order to insure that the Homesteaders had every advantage
of becoming successful homeowners, a. series of
Homeownership Nurturing Classes were set up which were
beneficial to new homeowners. All Homesteaders were
required to attend 4 of 7 two-hour classes. The Nurturing
Classes included: filing income tax returns as homeowners,
wills - what can happen without one, insurance policies - How
to file a claim, crime prevention in your neighborhood, code
violations and code enforcement, consumer credit counseling,
good money management, mortgage and foreclosure - how to
save your house.
The Homeownership Programs have not had any major audit
findings in the last five years or since their inception. (See
attached audit report).
The City of Lubbock was the recipient of a FY 1992 HOPE 3
Implementation Grant. The total amount of the Grant was $1
million and 85% of these grant funds have been expended to -
date.
Twenty-three properties have been acquired utilizing HOPE 3
grant funds and ten properties have been acquired by the City
and donated for us in the 1992 HOPE 3 program. A total of
thirty-three properties have been made available through the
efforts of the HOPE 3 program. Of these, twenty-seven have
been sold to the applicant with twenty-four being occupied by
the applicant, three are in the process of being rehabilitated
and the remaining six are under contract.
The City of Lubbock was also the recipient of a FY 1993 HOPE
3 Implementation Grant in the amount of $1,710,000.00. Io-
date, out of the 36 properties proposed to be acquired, 22
have been acquired, one donated by RTC, 6 donated by the
City of Lubbock as match and 3 under contract to be
5
HOPE 3 Application - Exhibit 1
Page 4
purchased. A total of 88% of the proposed properties have
been obtained thus far. The additional four properties should
be under contact within the next two months. Ten properties
have actually been transferred to homeowners and an
additional twelve families and/or individuals have been
approved for the program and have selected horses. Write-ups
for the repairs are in progress. These homes will be
transferred in the next couple of months, making a total of 22
out of 36 homes transferred. To -date, a total of 470/6 of FY 93
HOPE 3 Grant funds have been expended.
C. Participating` Private Non Profit Organizations
Lubboc* Habitat for Humanity
Lubbock Habitat for Humanity was chartered by the State of
Texas in June, 1987 as the Lubbock Affiliate of Habitat for
Humanity International. In it's eight years of existence,
Lubbock Habitat for Humanity has completed IS houses and
sold them to working poor Lubbock families. Four of the
eighteen houses were new construction and the other fourteen
were HOPE 3 and major rehabilitation projects. The houses
are generally small (1,000 to 1,200 SFr and have no frills, but
the quality of construction is high. The eighteen families
currently residing in Habitat houses have taken very good care
of their property and have rarely fallen behind on their
payments.
Lubbock Habitat is governed by an independent volunteer
Board of Directors. It has a mailing list of approximately 600
supporters and workers, of which 60 are active on committees.
The first paid staff member, an executive director, was hired
in January, 1992. On the most recently completed house in
December, 1994, 50 different volunteers worked at least one
shift. Financial support of the work comes fro= individuals,
churches, civic groups and grants. Currently Lubbock Habitat
for Humanity has received a HUD HOPE 3 Implementation
Grant. The families receiving houses also support the work
with their house payments, which are recycled into building
more houses. Twelve houses have been purchased and sold
with this Implementation Grant.
6
HOPE 3 Application - Exhibit 1
Page 5
Lubbock Habitat has three committees that work very closely
with the families receiving houses. The first is the Family
Selection Committee, which advertises the Habitat program in
the community, reviews the applications, interviews the
families, evaluates their present living conditions, and
recommends recipient families to the Board of Directors.
Second, the Building Committee works regularly with each
family during construction as the family puts in it's required
500 hours of "sweat equity". Third, the Family Partnership
Committee helps the family adjust to it's new responsibilities
and logistics after the family is in the house. These contacts
promote the kind of full understanding and cooperation that
Habitat hopes to make for the up -building of communities for
years to come.
Community Housing Resource Board
Community Housing Resource Board JCHRB) of Lubbock is a
non-profit agency serving the housing needs of the low and
moderate income persons within the City of Lubbock and the
South Plains area. CHRB was established in 1985 and funded
by the U.S. Department of Housing and Urban Development as
an agency to hear and file housing discrimination complaints.
Over the past two years, CHRB has expanded its service to
include a number of housing programs which are available at
no charge to program participants. CHRB receives its funding
from city, state and federal funding sources through
competitive application process.
CHRB has formed community partnerships with several local
banks, as well as the Federal Home Loan Bank of Dallas, in an
effort to make safe, sanitary and affordable housing a reality
for low to moderate income persons. The agency participants
in a number of unique first-time home buyer programs with
such features as minimum down payment requirements, free
home buyer education, no Mortgage Insurance Premium fees,
minimum loan amounts, unsecured bank loans for down
payment, closing costs and prepaids, and under certain
circumstance, if the person qualifies, grant money to pay
these "up -front" fees.
Another of CHRB's Community Partnership programs
rehabilitates owner -occupied homes for the elderly and low-
HOPE 3 Application - Exhibit 1
Page 6
income homeowners in Lubbock and the surrounding rural
areas. Funding through the Federal Home Loan Bank of Dallas
allows a portion of these rehabilitation monies to be granted
to the homeowner, while another portion is repaid at a
reasonable rate of interest. CHRB also has two other home
rehabilitation programs which are underway at this time. One
is limited to residents of the City of Slaton and provides up to
$25,000 per home, through the HUD Home Program, to repair
and upgrade homes. The repair monies were provided through
the Texas Department of Housing and Community Affairs and
will be distributed in the form of grants to eligible persons.
The second rehabilitation program also is TDHCA monies
which can be loaned at zero percent interest in sums up to
$15,000 per home and is available throughout both the City of
Lubbock and surrounding areas.
Another program run by CHRB is the HUD housing counseling
program. If a homeowner has fallen behind with mortgage
payments, CHRB provides a professional housing counselor to
assist the home buyer in resolving his difficulties. Monetary
assistance is not provided, but counselors can give budget
training, act as a liaison between the homeowners and the
mortgage company, and refer to other area programs that
might be available to help the person. If the delinquent loan
is an FHA mortgage, CHRB counselors assist the borrower in
applying for an appropriate Housing and Urban Development
program.
The staff of Community Housing Resource Board includes:
Yolanda Jimenez, Director and Maggie Trejo, caseworker.
Each of the staff members has an extensive background in the
areas of non profit program management and implementation,
mortgage lending and real estate.
D. Cooperative Association
Not Applicable
11
HOPE HOMEOWNERSHIP PROGRAM
CITY OF LUBBOCK/LUBBOCK HABITAT FOR HUMANITY, INC.
HOMEBUYER OUTREACH
MEMORANDUM OF AGREEMENT
Organizational Structure
Housing Section of the City of Lubbock
Lubbock Habitat for Humanity, Inc.
Responsibilities of Lubbock Habitat for Humanity, Inc.
Juan A. Reyes
Housing Rehab. Coordinator
John Mallory
Executive Director
Lubbock Habitat for Humanity, Inc. shall conduct a total of two (2) pre -purchase outreach
training sessions for homebuyers interested in the HOPE 3 Homeownership Program, Phase I and
Phase II. Each of the sessions prior to Phase I and Phase II shall consist of two parts making for a
total number of sessions of eight (8). Sessions may include subjects such as counseling and
training related to financial management, home maintenance, home repair, general rights and
responsibilities of a homeowner and the requirements and underwriting criteria of the HOPE 3
Program. Responsibilities include marketing the training sessions, keeping attendance records
and distribution of materials associated with HOPE 3 applications.
Responsibilities of the Housing Section of the City of Lubbock:
It shall be the responsibility of the Housing Section to compensate Lubbock Habitat for
Humanity, Inc. for its work under this Memorandum of Agreement at a rate not to exceed
$10,000.00. It is understood that this compensation will come directly out of the City's HOPE 3
Grant and that $5,000.00 will be promptly paid to Lubbock Habitat for Humanity, Inc. after the
completion of the pool of HOPE 3 Homeownership applicants for Phase I of the program. A
second installment of $5,000.00 shall be promptly paid to Lubbock Habitat for Humanity, Inc.
after the completion of the pool of applicants for Phase II of the HOPE 3 Program.
Term of Agreement:
As ag d upon after the funding of the HOPE 3 Program Application by the Housing Section of
the Ci yoKubbock and Lubbock Habitat for Humanity, Inc.
. Coordinator
0
CERTIFICATION
LUBBOCK HABITAT FOR HUMANITY
Lubbock Habitat for Humanity certifies that the members of its Board of Directors
serve in a voluntary capacity and receive no compensation, other than
reimbursement for expenses, for their services and the nonprofit organization
operates in a manner so that no part of its net earnings inures to the benefit of any
individual, corporation or other entity.
of Authoriked CerflKina Official Date
Title
Executive Director
10
Board of Directors
Lubbock Habitat for Humanity
President: Debbie Michels
Director of Cardiac Intensive Care & Transplantations
Methodist Hospital
Vice President: Dr. W. Pennington Vann
Professor of Civil Engineering
Texas Tech University
Secretary: Jeanette Camp
Clerical Specialist
Texas Tech Health Science Center
Treasurer:
Board Members:
Taylor Etchison
Agent
The Equitable
Juan Mendoza
Structural Engineer
W & W Steel Co.
Ulrich Goebel
Professor -Germanic Language
Texas Tech University
Amy Lambert
Graduate Student
School of Architecture
Jim Machos
Contract Simulator Instructor
Reese AFB-UNC Aviation Services
Frank Phillips
Area Engineer
Texas Department of Transportation
Dwayne Quarles
Realtor
Advantage Realty
Eddie Richardson
Co-Publisher/Partner
Southwest Digest
Blanchie Swisher
Instructor
Swisher's Beauty Salon
Arthur Wiebusch
Accountant
Retired
Jeff Wilbur
Education Services Officer
Reese Air Force Base
Ted Zobeck
Scientist
USDA Agricultural Retail Service
11
f! k-mvy-� --zelp 1�4idOf
.1
IIfYEiV 'm-"A
jy r
few fH3 iW -11"djaA
A b"'T
I-,- N't
:-r1qdh(1A1.
fmf&.11121 -lot ".s],
xl-
ABITAT
R HUMANITY
October 9, 1967
Affiliate President
Lubbock HFH
Box 209
Lubbock, TX 79408
Dear Affiliate President:
This letter will confirm that Lubbock HFH has been added to the roster of
exempt subordinates included in Habitat for Humanity, Inc.'s group exemption
under section 501 (c) (3) of the Internal Revenue Code.
The enclosed copy of the group exemption letter received from the IRS provides
evidence of Habitat's group exemption. That letter, together with this letter
which confirms your affiliate's exempt subordinate status, provide evidence of
your tax exempt status under section 501 (c) (3) of the Code. Both these
letters should be retained as part of your affiliate's permanent records.
Please note that if your gross inccme is normalll more than $25.000, you are
required to file. Form 990, Return of Organizations Exempt from Income Tax, by
the 15th day of the fifth month after the end of your annual accounting
period. Also, note that a significant penalty is imposed when a return is
filed late. While filing of a group return by Habitat's national office is a
permitted option, that does not appear to be a feasible alternative at this
time.
The group exemption number assigned to
number may be provided to prospective
organizations as they request it, and
file.
RM/mr
Enclosure
Habitat by the IRS is 8545. This
donors, foundations, and other grant
is required on any Form 990 you may
In partnership,
Al"'t J•
Robert T. Mayo
�,/O
/ lel^ r.
12'
riXAs
em BLXI c
coiewt. 016W
COMPTROLLER OF PUBLIC ACCOUNTS
STATE OF TEXAS
AUSTIN, 78774
October 20, 1987
Ms. Dellinda Ebeling
Attorney at, law
5414 89th Street
Lubbock, Texas 79424
Dear Ms. Ebeling:
We have determined that Lubbock Habitat for Humanity, Inc., Taxpayer No.
3-00106-1817-8, qualifies for exemption from state franchise tax and
state sales tax. In the event that we have reason to believe that your
corporation no longer qualifies for the exemptions, we will notify your
registered agent that the exempt status is under review. Your franchise
,tax exemption as a 501(c)(3) organization is effective June 24, 1987.
Your corporation qualifies for sales tax exemption effective the date of
this letter as a 501(c)(3) organization. You may now issue an exemption
certificate in lieu of the sales tax on taxable items purchased if the
items relate to the purpose of the exempt organization and are not used
for the personal benefit of a private stockholder or individual. The
certificate does not require a number to be valid and may be reproduced
In any quantity.
If your organization changes its name or address, you are required to
notify us.
If we can be of further assistance, please write to us or call toll free
from anywhere in Texas at 1-800-252-5555. Our regular number is
512/463-4600.
Sincerely,
Harry F. Rogers
Exempt Organizations
HFR:SM74/720/ml
- 23
LUBBOCK HABITAT FOR HUMANITY, INC.
(A NON-PROFIT ORGANIZATION
WEISS AND ASSOCIATES
FINANCIAL STATEMENTS
DECEMBER 31, 1993
14
CERTIFIED PUBLIC ACCOUNTANTS
WEISS AND ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS
J. MICHAEL WEISS, CPA, J.Q.
CHRIS HARRAL, CPA
BOARD OF DIRECTORS
LUBBOCK HABITAT FOR HUMANITY, INC.
LUBBOCK,TEXAS
2222 INDIANA AVENUE
LUBBOCK. TEXAS 79410
TELEPHONE 806 799,0909
TELECOPIER 806 799-7741
We have compiled the accompanying balance sheet - cash basis of Lubbock Habitat for Humanity, Inc. - a non profit
organization, as of December 31,1993, and the related statement of support and revenue, expenses and changes in fund
balances, statement of functional expenses, and statement of cash flows - cash basis for the year then ended in
accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of
Certified Public Accountants. The financial statements have been prepared on the cash basis of accounting, which is
a comprehensive basis of accounting other than generally accepted accounting principles.
A compilation is limited to presenting in the form of financial statements information that is the representation of
management. We, have not audited or reviewed the accompanying financial statements and, accordingly, do not express
an opinion or any other form of assurance on them.
WEISS AND ASSOCIATES
CERTIFIED PUBLIC ACCOUNTANTS
December 12, 1994
15
LUBBOCK HABITAT FOR HUMANITY, INC.
(A NON PROFIT CORPORATION)
BALANCE SHEET
DECEMBER 31, 1993
CURRENT ASSETS
Cash
Land & Buildings (Note 2)
Notes Receivable (Note 2)
Note Amortization (Note 2)
Building Materials
TOTAL CURRENT ASSETS
NONCURRENT ASSETS
Notes Receivable (Note 2)
FIXED ASSETS
Office Equipment (Net) (Note 3)
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
CURRENT LIABLIT IES
Homeowners' Escrow
TOTAL CURRENT LIABILITIES
FUND BALANCES
Unrestricted
Restricted
TOTAL FUND BALANCES
TOTAL
S 2,757.28 S 3,879.99 S 42,062.01 $ 48,699.28
158,220.00 158,220.00
15,378.76 15,378.76
(8,620.00) (8,620.00)
3,893.00 0.00 0.00 3,893.90
6,650.28 10,638.75 200,282.01 217,571.04
0.00 195,15158 0.00 195,15158
1,996.79 0.00 0.00 1,996.79
8.647.07 S 205.790.33 L. S 414.719.41
001 S 3,879.99 100 $ 3,879.99
0.00 3,879.99 0.00 3,879.99
$ 8,647.07 8,647.07
0.00 201.910.34 2M.282.01 402.192.35
8.647,07 201,910.34 200.M.01 410,839.42
8.647.07 205.790.33 S 200.282.01 S _ 414.719.41
See Accountant's Compilation Report. 16
4,
LUBBOCK HABITAT FOR HUMANITY, INC.
(A NON PROFIT CORPORATION)
STATMENT OF SUPPORT AND REVENUE
EXPENSES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 1993
,SUPPORT AND REVENUE
Contributions
Grants
Transfers to Homeowners
Miscellaneous
TOTAL SUPPORT AND REVENUE
MENSES
Program Services (Note 2)
Supporting Services
TOTAL EXPENSES
leg
$ 20,252.70 $ 20,257-70
$ 205,720.00 205,720.00
$ 85,000.00 85,000.00
92.00 0.00 0,00 92.00
20,344.70 85,000.00 205,720,00 311,064.70
25,262-55 13,085.05 .• .. 72,746.5
5,033.59 0.00 0.00 ::A
.0•. s.: s •: y
(DEFICIENCY) EXCESS OF SUPPORT AND
REVENUE OVER EXPENSES (9,951.44) 71,914.95 171,321.01 233,28452
FUND BALANCES, BEGINNING OF YEAR 18,598.51 129.99539 28,961.00 177,554.90
FUND BALANCES, END OF YEAR S 8,0 .07 S 201,21034 �, 200 282 01 410,839.42
See Accountant's Compilation Report. 17
LUBBOCK HABITAT FOR HUMANITY, INC.
(A NON PROFIT CORPORATION)
STATEMENT OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 1993
---------PROGRAM SERVICES— ----
------------SUPPORTING SERVICES
UNRESTRICTED RESTRICTED
UNRESTRICTED RESTRICTED
OPERATING MORTGAGE GRANTS
OPERATING MORTGAGE GRANTS
Salaries and Benefits
$ 10,55439
Contract Labor
6,395.00
Postage
55.94
S 703.00
Office Supplies
336.21
33433
Telephone
57457
Conventions
528.00
Bank Charges
27.00
Promotion
142.10
2,278.91.
Miscellaneous
147.45
Interest
67.16
Depreciation
373.17
Amortization
4,960.00
Tithe
78756
Expense of Homes
6,99135 S 8,125,05 34.39$.99
_ 0.00_ S 0.00 $ 0.00
TOTAL
S 25.262 55 S 13.085.0 X398M
1 5.033.59_ S,. 0.00 S0.00
See Accountant's Compilation Report. 18
LUBBOCK HABITAT FOR HUMANITY, INC.
(A NON PROFIT CORPORATION)
STATMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1993
OPERATING ACTIVITIES
Excess of Support and Revenue
Over Expenses
Adjustments to Reconcile Support
and Revenue Over Expenses to
Net Cash Provided by Operating
Activities:
Transfers to Homeowners
Depreciation
Amortization
Effect of Changes in Assets and Liabilities:
Decrease in Building Materials
Increase in Homeowners' Escrow
NET CASH PROVIDED BY OPERATING ACTIVITIES
INVESTING ACTIVITIES
Purchase of Office Equipment
Mortgage Payments Received
Homes Purchased
NET CASH USED BY INVESTING ACTIVITIES
FINANCING ACTIVITIES
Short Term Borrowings
Note Payments
NET CASH USED BY FINANCING ACTIVITIES
CASH AND RESTRICTED CASH
BEGINNING OF YEAR
END OF YEAR
,ELEMENTAL DISCLOSURE OF NONCASH ACTIVITIES
Issuance of Non -Interest Bearing Mortgage Loans
Discount on Non -Interest Bearing Mortgage Loans
SUPPLEMENTAL INFORMATION
Interest paid for the year ended December 31, 1993
$ 233,28452
(85,000.00)
373.17
4,960.00
2,107.00
3,879.99 (nk79.84)
159,604.68
(549.96)
8,1?5.05
(129,259,00)
++1 to
(121,683.91)
ME
+ r:
S 67.16
See Accountant's Compilation Report. 19
LUBBOCK HABITAT FOR HUMANITY, INC.
(A NON PROFIT CORPORATION)
NOTES TO FINANCIAL STATEMENTS
DECEM 3ER 31, 1993
Lubbock Habitat for Humanity, Inc. (a non profit corporation) was incorporated on November 26,1986. Habitat
is an affiliate of Habitat for Humanity International, Inc., a nondenominational Christian non profit organization
whose purpose is to create decent, low cost housing for low income families, and to make decent shelter a matter
of conscience with people everywhere. Although Habitat International assists with information resources,
training, publications, prayer support, and in other ways, Habitat is primarily and directly responsible for its own
operations and operates primarily in the Lubbock, Texas area.
The financial statements of Habitat have been prepared on a cash basis. The significant accounting policies
followed are described below.
A. EUnd Accounting - In order to distinguish home building activities from mortgage financing activities,
the accounts of Habitat are maintained in accordance with the principles of fund accounting. This is
the procedure by which resources for various purposes are classified for accounting and reporting
purposes into funds established according to their nature and purposes. Separate accounts are
maintained for each fund. Accordingly, all financial transactions have been recorded and reported by
fund group.
a The activities of Habitat are reported primarily in three funds as follows:
1. Operating Fund represents the portion of expendable funds that are available for support of
Habitat's operations.
2. Mortgage Fund represents the financial activity related to providing non -interest bearing
mortgages to qualified home buyers. Principal collections are restricted for use of purchasing
property and increasing capacity to build homes.
3. Grants Fund represents the portion of expendable funds that are restricted for use of purchasing
property and increasing capacity to build houses.
B. Revenue Recognition - Unrestricted contributions are recognized as revenue. when received. No
amounts have been reflected in the financial statements for donated services inasmuch as no objective
basis is available to measure the value of such services; however, a substantial number of volunteers have
donated significant amounts of their time to the organization's program services. Transfers to
homeowners are recorded at the gross amount of payments to be received over the lives of the
mortgages. Homeowners execute two mortgages when houses are transferred. The second mortgage
is subject to forgiveness over 10 years if homeowners adhere to the payment terms of the first mortgage.
The second mortgages are amortized as they are forgiven.
' 20
LUBBOCK HABITAT FOR HUMANITY, INC.
(A NON PROFIT CORPORATION)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1993
Following is a summary of home building activity for 1993:
' _NUMBER COST
Homes under construction, January 1, 1993 1 28,961.00
Additional costs incurred on beginning inventory 16,415.73
New homes started in 1993 8 156,55751
Homes transferred in 1993 !213,714.24�
' Homes under construction, December 31, 1993
C. Prgaam services Include construction and family support. The cost of home building is charged to
program services as incurred. Program services include the cost of homes transferred, which have an
estimated average cost of $22,000, as well as the cost of homes under construction.
D. Restricted Cash - Habitat currently services the mortgages on the homes it sells. Included in restricted
cash are escrowed amounts received from homeowners for insurance and property taxes on such homes.
E. Pr02CM and equipment are recorded at cost. Depreciation is computed using the straight-line method
over the estimated useful fives of the assets, ranging from five to seven years.
F. Income Taxes - Habitat has received exemption from income taxes under Section 501(c)(3) of the
Internal Revenue Code under a group exemption letter granted to Habitat International.
G. Cash and Cash Equivalents - The Company's policy is to include cash in demand deposit accounts as
cash and cash equivalents.
H. Invento consists of homes purchased and additional costs incurred to ready the house to sell to
homeowners. Inventory is recorded at cost.
NOTE 3: PROPERTY AND EOUIPMENT
Property and equipment at December 31, 1993 consist of the following:
Office Equipment 2,369.96
Less Accumulated Depreciation (373,12)
Property and Equipment - Net
21
LUBBOCK HABITAT FOR HUMANITY, INC.
(A NON PROFIT CORPORATION)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1993
• ti. Mtn y� • a��ll:. :G.:.IM01.y•
Habitat annually remits a portion of its contributions (excluding in -kind contributions) to Habitat InternationaL
These funds are used to construct homes in economically depressed areas around the world. For the year ended
December 31,1993, Habitat contributed M7.56 to Habitat International. Such amount is included in program
services expenses in the Statement of Support and Revenue, Expenses and Changes in Fund Balances.
NOTE 5: FINANCIAL INSTRUMENTS
The company has financial instruments consisting of cash and notes receivable. Cash amounts of $48,699.28 are
deposited in financial institutions and are within federally insured limits. Notes receivable of $201,91034 are
secured by a house and lot lien note. The notes are non interest bearing to the homeowners. The accounting
loss which would be incurred if the homeowners do not perform under the terms of the contracts would be the
total amount of the notes receivable.
22
LUBBOCK HABITAT FOR HUMANITY, INC.
(A NON PROFIT CORPORATION)
SUPPLEMENTARY SCHEDULES
DECEMBER 31, 1994
23
WEISS AND ASSOCIATES CC -MIRED PUBLIC ACCOUNTANTS
J. MICHAEL WEISS, CPA, J.D.
CHRIS HARRAL, CPA
BOARD OF DIRECTORS
LUBBOCK HABITAT FOR HUMANITY, INC.
LUBBOCK, TEXAS
2222 INDIANA AVENUE
LUBBOCK, TEXAS 79410
TELEPHONE 606 7994)909
TELECOPIER SW 799-7741
Our report on our compilation of the basic financial statements of Lubbock Habitat for Humanity, Inc. (a non profit
corporation) is presented in the preceding section. A compilation is limited to presenting is the form of financial
statements information that is the representation of management. We have not audited or reviewed the financial
statements and, accordingly, do not express an opinion or any other form of assurance on them. The information
included in the accompanying supplemental schedules is presented only for supplementary analysis purposes. Such
information has been compiled from information that is the representation of management, without audit or review.
Accordingly, we do not express an opinion or any other form of assurance on the supplementary information.
WEISS AND ASSOCIATES
CERTIFIED PUBLIC ACCOUNTANTS
December 12, 1994
24
LUBBOCK HABTIAT FOR HUMANITY, INC.
(A NON PROFIT CORPORATION
SUPPLEMENTAL SCHEDULE OF AWARDS
DECEM 3ER 31, M
Award
Purchased Property (1324 25th)
Unused Portion of Award
See Accountant's Report on Supplementary Information.
25
$ 25,2W.00
_ (24.340 M
S .® ?L
LUBBOCK HABITAT FOR HUMANITY, INC.
(A NON PROFIT CORPORATION)
SUPPLEMENTAL SCHEDULE OF AWARDS
DECEMBER 31, 1993
Award
Purchased Property (2322 8th)
Unused Portion of Award
See Accountant's Report on Supplementary Information.
26
LUBBOCK HABITAT FOR HUMANITY, INC.
(A NON PROFIT CORPORATION)
SUPPLEMENTAL SCHEDULE OF AWARDS
DECEMBER 31, M3
Award
Purchased Property (1308 46th)
Purchased Property (2405 35th)
Unused Portion of Award
$ 50,760.00
See Accountant's Report on Supplementary Information.
27
LUBBOCK HABITAT FOR HUMANITY, INC.
(A NON PROFIT CORPORATION)
SUPPLEMENTAL SCHEDULE OF AWARDS
DECEM 3ER 31, 1993
Hope III Award - Received 12-7-93
Award
' Purchased Property (311 51st)
Purchased Property (314 52nd)
Purchased Property (2628 E. Auburn)
Unused Portion of Award
ISee Accountant's Report on Supplementary Information.
28
$ 59,760.00
(23+238.26)
(21,6M.20)
1.14.L2S,�
LUBBOCK HABITAT FOR HUMANTTy, INC.
(A NON PROFIT CORPORATION)
SUPPLEMENTAL SCHEDULE OF AWARDS
DECEM 3ER 31, 1993
Award
Labor
Office
Office Equipment
Promotion
Postage
House Acquisition
Salary and Benefits
Unused Portion of Award
(3,515.00)
((9�))
(142.10)
(55.94)
(704.44)
� 2)
L
See Accountant's Report on Supplementary Information.
29
HOPE HOMEOWNERSHIP PROGRAM
CITY OF LUBBOCIUCOMMUNITY HOUSING RESOURCE BOARD
HOMEBUYER COUNSELING AND TRAINING
MEMORANDUM OF AGREEMENT
Organizational Structure
Housing Section of the City of Lubbock Juan A. Reyes
Housing Rehab. Coordinator
Community Housing Resource Board (CHRB) Yolanda Jimenez
Director
Responsibilities of Community Housing Resource Board
Community Housing Resource Board will conduct six post homeownership counseling and
training classes for HOPE 3 homeowners. CHRB will plan and schedule the classes, obtain the
instructors, notify the homeowners, keep records of attendance, preside over the classes, insure
homeowners attend four of the six classes and issue Certificates of Completion to the homeowners
upon compliance.
Sessions may include code enforcement, neighborhood watch, homeowner's insurance, last wills
and testaments, yard maintenance, weed control, and gardening, extermination, home repair and
maintenance, and budgeting and financing.
Responsibilities of the Housing Section of the City of Lubbock
It shall be the responsibility of the Housing Section of the City of Lubbock to compensate CHRB
for its work under this Agreement at a rate not to exceed $4,800.00, It is understood that this
compensation will come directly out of the City's HOPE 3 Grant and that $2,400.00 will be paid at
the completion of class three and that the final $2,400.00 will be paid at the completion of class
six.
Terms of Agreement
As agreed upon after the funding of the HOPE 3 Program Application by the Housing Section of
the 9�tyrpf Lubbock and the Community Resource Board.
Housing Re&Nb. Coordinator
30
CERTIFICATION
COMMUNITY HOUSING RESOURCE BOARD
Community Housing Resource Board certifies that the members of its Board of
Directors serve in a voluntary capacity and receive no compensation, other than
reimbursement for expenses, for their services and the nonprofit organization
operates in a manner so that no part of its net earnings inures to the benefit of any
individual, corporation or other entity.
Title
Director
i
of Authorized Certifying Official Date
31
IHTERRHL REUEHl1E SERVICE
District Director
DEPHRTMHT OF THE TREHSUP.V
1100 Commerce St., Dallas, TX 75Z4Z
COMMUNITY HOUSING RESOURCE
BOARD OF LUBBOCK
1416 1ST ST
LIJBBOCK ,TX 79401-1312
Dear Sir or Madam:
Person to Contact:
Vivian Randle
Telephone Number:
(2t4 )767-1681,
Refer Reply to:
EP/EO:MC:4940 DAL
Date:SEPTEMBER. 30,1993
EIN:75-2052605
Our records show that COMMUNITY HOUSING RESOURCE BOARD OF LUBBOCK
is exempt from Federal Income Tax under section 501(c)(3) of the Internal
Revenue Code. This exemption was granted OCT0BER.1985 and
remains in full force and effect. Contributioils to your organization are
deductible in the manner and to the extent provided by section 170 cf the
Code.
We have classified your organization as one that is not a private founda-
tion within the meaning of section 509(a) of the Internal Revenue Code
because you are an organization described in section 170(b)l1)(R)(vi)
If we may be of further assistance, please contact the person whose name and
telephone number are shown above.
Sincerely Yours,
EP/EQ Correspondence Examiner
Customer Service Section
32
BE IT RESOLVED, that the Board of Directors of the Community
Housing Resource Board of Lubbock do hereby attest that:
No part. of the net earnings of the corporation shall
inure to the benefit of any Director of the corporation,
Officer of the corporation, or any private individual
(except that reasonable compensation may be paid for
services rendered to or for the corporation affecting one
or more of its purposes), and no Director or Officer of
corporation or any private individual shall be entitled to
share in the distribution of any of the corporate assets
on dissolution of the corporation.
WITNESS OUR HANDS this filth day of October, 1993.
'F.mma Jac r6n, Prpxi.dent D. A. Smith, Vice President
."Givens, Treasurer
Rose Wilson, Member
Eddie Richardson, Member
Lynn Bracy, Secretary
Willie Swings, ember,.
33
COMMUNITY HOUSING RESOURCE BOARD OF LUBBOCK
a Bca rr�do f 1�r4e
List oafs
c t ors
oy,
Office
Name
Address
President
Emma Jackson
1312 E. 24th
Lubbock, TX 79404
762-3350
Vice President D. A. Smith
1713 40th
Lubbock, TX 79412
7 6 2 - 6 2 4 0 /,L/,2
Secretary
Lynn Bracy
1516 E. First
Lubbock, TX 7940
765-9939/
Treasurer
R. J. Givens
1701 E. 26th
Lubbock, TX 79404
7 6 2 - 2 9 6 7 /'7-= - r'-J
Member
Rose Wilson
3508 E. Cornell
Lubbock, TX 79403.
763-1 807 ! " '/--'
Member
Willie Ewings
201 53rd
Lubbock, TX 79404
747-0486
Member*
D. Gene Valentini
3511 96th
Lubbock, TX 79423
7 99-4450
Member*
Bob Ericson
Floydada, TX 79235
983-557 9 / � 3-.2w "5'
Member*
Art Cuevas
7406 63rd
Lubbock, TX 79424
866-9000
*New Members
34
Exhibit 2:
Program Design and _Other Information
Your application will be scored based upon a series of criteria. One of the key criteria is the overall design
of your program. To help in comparing your proposed program with that of other applicants, please provide
us with an executive summary of your proposal as well as a description of:
the area your program is intended to serve;
the number, types, and sources of properties to be included in your program;
the process you will use for selecting homebuyers.
your schedule for implementing your program;
your budget, including match contributions and use of sale and resale proceeds (see Exhibit 3); and
your fair housing and equal opportunity plan (see Exhibit 4).
In order to help you with your application, we have summarized below the kinds of information that you
should consider in preparing these materials.
Executive Summary
Please provide us with an executive summary of the homeownership program being proposed. The
description should include the following information:
the jurisdiction(s) in which the program is proposed;
the major activities being proposed;
basic information on the program design (who will acquire and/or rehabilitate eligible properties.
how homebuyer purchases will be financed, etc.);
• the number of homebuyers expected to be directly assisted with HOPE 3 grant and local match funds;
and
• the number of additional homebuyers expected to be assisted through the use of sale and resale
proceeds, if any.
Program Neighborhoods
Please provide us with information about the neighborhoods where the proposed program activities will take
place, including a description of the racial and ethnic characteristics of the residents. In order to help us
determine if your neighborhood overlaps with that of other applicants, please submit a map indicating the
boundaries of each neighborhood where you propose to operate.
Property Information
A. Units to be Used in the Homeownership Program. While in many cases the specific units to be
acquired or donated will not be known. a review of currently available units of the type, size, and in the
neighborhood(s) being proposed should provide sufficient information to complete this exhibit.
Please estimate the total number of HOPE 3 eligible units available for purchase or donation in the
area(s) selected for this program or available for direct purchase by the homebuyer with assistance
from the applicant.
Please provide evidence that at least 10 properties from eligible HOPE 3 sources are either currently
available or were available during the previous 12 month period (such evidence may include dated
lists of available properties from an eligible source, a letter from an eligible source, a dated copy
of a public advertisement listing eligible properties for sale, etc.).
35
Please tell us the sources of the homeownership units you estimate to be used in your program.
Complete the following table by providing the approximate number of homeownership units estimated to
he used in the homeownership program from each source listed below using HOPE 3 grant funds and/or
match contributions. Applicants are required to include at least 10 homeownership units from an eligible
source (or a combination of eligible sources) in the homeownership program. (Section 572.100(a))
Source of
Number to be
I Number to be
Number to be
Total
Units
Acquired
Donated from
Purchased directly !
Number
by Grantee
Eligible Source
by Homebuyer'
A
8
C
0
Federal Government I
16
16
State
1
1
Local (rAxing PHMRA)"
g
Total
16
20
Number of units where applicant will facilitate the homebuyer's direct purchase from an eligible source and applicant will not
first acquire the unit.
For housing units owned or held by PHAs pr IHAs, only units that were not assisted under the Federal Housing Act of 1937 are eligible for use in
the HOPE 3 Program.
B. Property Management Entity. If any entity other than the applicant will manage the units prior to
transfer to homebuyers, please identify the entity.
C. Rental Housing Impact.
Please tell us if more than 10 percent of the affordable single-family rental housing units in the
market area will be eliminated as a result of the homeownership program? Yes No
If "Yes," pleae attach documentation on why such elimination does not appreciably reduce the rental
housing units in the market area. if you do not have this information available, please contact the Economic
and Market Analysis staff in your local HUD Office for assistance.
D. Rehabilitation. Please describe your plan to meet Housing Quality Standards and, if a sweat equity
component is included in the proposed program, please provide a description of the anticipated scope of
work.
Homebuyer Information
Please let us know about the population you intend to serve and how you will help them. Please focus on
how you will identify and select eligible families (including your fair housing marketing strategy), the kinds
of counseling you will provide and who will do the counseling, how you will construct your loan terms to
enable that population to afford the properties. Please note that under the HOPE 3 Program, homebuyers
must pay no less than 20 percent and no more than 30 percentof their adjusted income for housing, including
principal, interest, taxes, and insurance. The regulation also requires a plan to ensure continued
affordability. Please let us know how you will meet that standard.
Page 36
EXHIBIT 2
PROGRAM DESIGN AND OTHER INFORMATION
Area Intended to Service
• The area the 1995 HOPE 3 Program is intended to serve will be
throughout the City limits of Lubbock.
Number, Type and Source of Properties
The Housing Section staff will purchase 16 properties for the HOPE 3
Program from all eligible sources, particularly FHA and VA foreclosed
properties. The types of properties will be single family residential
structures only. Based on prior experience it is estimated that 14
properties will be purchased from FHA and 2 properties from VA.
Process for SelectinHomebuyers
Lubbock Habitat for Humanity will be responsible for homebuyer
outreach. The homebuyer outreach classes which will be advertised
will give interested parties an opportunity to come to the classes to
learn what the HOPE 3 Program is about. Mier attending the outreach
classes, attendees will receive a certificate which will enable them to
apply for the HOPE 3 Program. The Housing Section staff will take the
applications and underwrite all the loans. Those applicant which
qualify to own a home through the HOPE 3 Program will attend an
orientation meeting where they will draw a number to select the order
they will view and select homes from their list of personalised houses
that they can afford and that meet their family size. From past
experience this procedure has proven to be the fairest for applicants to
choose their homes.
• Preference will be given to those in preference categories as
required by the HOPE 3 regulations. If more than one applicant
in a preference category, they will draw among themselves and
select houses before those not in a preference category.
Schedule for Implementin¢ the Program
The City of Lubbock's HOPE 3 Program will begin as soon as a grant
agreement is signed. All houses will be purchased during the first 12
to 14 months after approval and all transfers will be made within the
first 2 years.
37
Budget, Match Contributions and Use of Sale and Resale Proceeds
The City of Lubbock's HOPE 3 Grant Application is for the maximum
grant of $1,000,000.00 to purchase 16 properties and to rehabilitate
20 properties, which include 4 properties donated as match. Closing
costs are included in the amount of $33,000.00. The homebuyers will
be required to pay a 30/6 downpayment from their own resources.
Homeowner counseling and training and outreach and selection costs
are also part of the grant request.
Sale and Resale proceeds, if any, will be used to purchase additional
properties for additional first-time homebuyer opportunities.
• For further information see Exhibit 3.
Fair Housing and Equal Opportunity Plan
The City of Lubbock's HOPE 3 Program will promote the concept of
Fair Housing and help to eliminate discrimination in housing based on
age, sex, race, religion, disability or familial status. See Exhibit 4 for
additional information.
EXECUTIVE SUWKARY
Jurisdiction Proposed
• The jurisdiction proposed for the 1995 HOPE 3 Programs is the City of
Lubbock City limits.
Major Activity Bein Proposed
• The major activities will be to purchase and rehabilitate properties for
first-time homebuyers and to rehabilitate the match properties
donated by the City. Homebuyers will also be assisted with closing
costs.
Who Will Acquire and Rehabilitate the Properties
• The City of Lubbock Housing Section will acquire the properties.
Rehabilitation will be through the Housing Section Inspector preparing
the work write-ups with the homeowners and being put out to bid with
approved general contractors. The rehabilitation contracts will
actually be between the owner and the contractor.
38
How Homebuyer Purchases will be Financed
• The homebuyers purchases will be made one of two ways:
1. For the past two years of the HOPE 3 Program, the Housing
Section has made the loans directly with the HOPE 3
homeowner paying both the mortgage and rehabilitation loan
back to the City. The loans can continue to be handled in the
manner as the Housing Section is set up with a mortgage
servicing computer system and a bookkeeper to take the loan
proceeds; or
2. The Housing Section is working closely with the local HUD office
to leverage the HOPE 3 Program and the 2031C Program. As
many of the HOPE 3's as can be worked with the 203K Program,
will be. Otherwise, they will be financed directly through the
Housing Section as in the previous two years of the City of
Lubbock's approved HOPE 3 Program.
Number of Homebuyers Expected to be Assisted with HOPE. 3 Grant and
Match Funds
• It is anticipated that 16 homebuyers will be assisted through HOPE 3
Grant funds and 4 homebuyers through properties donated by the City
for Match.
• If the Housing Section is able to leverage with the 203K Program,
refinance funds will be used to purchase as many additional properties
as possible for the Program.
• The City does not anticipate any re -sale proceeds at this time, but will
purchase additional properties for the HOPE Program if any resale
proceeds are received.
PROGRAM
The houses for use in the HOPE 3 Program will be purchased city-wide.
Depending on where eligible FHA and VA foreclosed properties within the
purchase price range allowed for the program are located, the racial and
ethnic background of the residents will vary city-wide. The
neighborhoods that properties have been purchased from in the past have
generally had a mixture of racial and ethnic residents. The City of
Lubbock's Program promotes Fair Housing to all eligible families and
individuals. Approved applicants receive a list of all properties that meet
39
their affordability and family size.
to the lottery number they draw fo
and select a home.
See City-wide map attached.
They select from their list according
r the order in which they get to view
PROPERTY INFORMATION
A. The City of Lubbock will acquire 16 properties from eligible sources
for use in the HOPE 3 Program. Four additional properties will be
donated to the program for a total of 20 properties.
See attached lists for evidence that several properties are available
and have been available during the previous twelve months. As
detailed on the attached list, the City of Lubbock has purchased 25
homes from January 1994 - February 1995 from eligible sources
which meets the requirement of evidence that at least 10
properties have been available during the previous 12 months.
B. Property Management Entity
The Housing Section of the City of Lubbock will manage the units
prior to transfer to the homebuyers.
C. Rental Housing Impact
More than 109/c of the affordable single-family rental housing units
In the market area will not be eliminated as a result of the
homeownership program.
D. Rehabilitation
1. Rehabilitation of the homes sold through the HOPE 3
Program will be required. The homebuyer will purchase the
houses first and then be responsible for contracting for the
rehabilitation, with the exception that defects that pose a
danger to health or safety will be corrected before the
ownership interest is transferred.
2. The owners will be required to bring the houses up to the City
of Lubbock's Minimum Housing Code. This includes bringing
all heating, plumbing and electrical systems to Code, interior
do exterior painting, window replacement, weatherization,
roof replacement, installation of new floor covering,
countertops, sinks, bathtubs, commodes, light fixtures and
appliances, etc.
40
3. HOUSING QUALITY STANDARDS
a. After a property is acquired and before it is sold to a HOPE 3
applicant, the property manager will inspect the property and
make a written assessment of its condition aLs to health and
safety. In addition, selected properties will have passed all
fire and habitability inspections. Steps will be taken to
correct all heath and safety deficiencies.
b. Within the HOPE 3 Homeowner's Agreement signed by the
HOPE 3 homebuyer, language will be included with specific
requirements outlined which will include that within two
years of transfer of a HOPE 3 property, each. unit will meet
the City of Lubbock's Minimum Housing Code Standards
(which are higher than those standards established by HUD
for the Section 8 Certificate program), and all federal
requirements including lead based paint and accessibility for
persons with disabilities.
Applicants will be encouraged to apply for the city of
Lubbock's Housing Section Residential Rehabilitation
Program which consists of a No Interest Deferred Payment
Loan and Below Market Rate Loan. The minimum housing
code requirements will be written into each work write-up. In
some instances, HOPE 3 homebuyers with disabilities may be
eligible for assistance through the Housing Section's Barrier
Free Living Program. Where possible, the HUD 203H Program
will be utilised.
4. Plan for Sweat Equity Management
a. Description of Scope of Work
1. Anticipated work items which could be included as
sweat equity would be for homeowners to prepare and
paint the home, weatherstrip, caulk„ clean yards,
flower beds and alleys, cut down trees, and repair
fences. Homeowners wanting to do more extensive
repairs would need to have the training to do so.
b. The homeowner would be required to complete the work
within the same time frame as the contractor.
C. Homeowners will, for the most part, need to have the
knowledge and capability to complete the items approved as
sweat equity. However, a State funded program called
"Project Help" could be used to train homeowners in some
41
areas such as painting, weatherizing and caulking, if
necessary.
d. The sweat equity work items would be supervised by a
Housing Inspector employed In the Housing Section of the
City of Lubbock.
e. Close supervision by the Housing Inspector would assure that
in most cases, the sweat equity work items would be
completed on schedule. However, if the items are not
completed, the items would be covered through a change
order with the homeowner and contractor to be completed as
part of the rehabilitation loan.
HOMEBUYER INFORMATION
A. Plan for Selection of Eligible Families
1. The City of Lubbock's HOPE 3 Program is a program for
providing affordable first-time homeownership opportunities
to families with incomes at or below 809'0 of median. Special
consideration will be given to single parent heads of
households. Preference will be given to applicants who are
displaced, who reside in public housing or who have
completed participation in an economic self sufficiency
program as prescribed in the regulations.
The average Family size will be 4 in the family and it is
anticipated that at least 6 will be single heads of households.
The average income will be 55% of median. The composition
of the residents and potential eligible families is expected to
consist of 5 White, 7 Black and 8 Hispanic families.
2. The following Affirmative Fair Housing Marketing Strategy
will be utilized:
a. Families who reside in low to very, low income
neighborhoods, particularly minority impacted
neighborhoods and those who live in public housing are
considered the least likely to apply.
b. Special outreach will be targeted to these
neighborhoods by advertising the program in minority
newspapers, passing out fliers to neighborhood
churches, community centers and schools and by
42
recruiting potential homeowners from public housing
through the local Housing Authority.
3. Potential homeowners from all racial and ethnic groups will
be informed of homeownership opportunities through the
HOPE 3 Program. The program will promote: the concept of
fair housing and help to eliminate discrimination in housing
due to age, sex, race, religion, disability or familial status.
Specific steps to inform potential applicants about the
program as follows:
a. Ads or news releases will be placed in all local
newspapers informing the public about the program.
b. Fliers will be passed out to neighborhood churches,
schools and community centers of low to very low
income neighborhoods.
C. Neighborhood Associations will be informed about the
program and fliers will be distributed to them.
d. A contact person will be established with the local
Housing Authority to obtain lists of tenants paying
rents at amounts that might facilitate for them a home
purchase. Fliers will be mailed to these tenants.
4. Applicants interested in becoming homeowners through the
HOPE 3 Program must first attend HOPE 3 Pre -Purchase
Homeownership Outreach Classes. These classes, which are
divided into two 2-hour sessions, are designed to thoroughly
inform the applicants of the HOPE 3 homeownership process
including the qualifying and underwriting procedures of the
HOPE 3 program, as well as to educate them in money
management, setting up a budget, correcting credit problems,
etc.
Applicants then receive a Certificate of Achievement for
attending these classes which enable them to apply for a
home. Each applicant is first evaluated as to whether or not
they will qualify for a home through a regular, mortgage loan
and referred to a bank if they possibly meet bank
underwriting criteria. If the bank does not approve them and
if they meet the HOPE 3 underwriting criteria, they are put in
the HOPE 3 program. Those applicants that are not referred
to a bank are also put in the HOPE 3 program if they meet
the HOPE 3 underwriting criteria.
Credit reports will be pulled on all applicants and all income
will be verified, applicants will be asked to furnish the
43
Housing Section with their most recent income tax return.
Each applicant will be required to meet debt -to -income and
housing expense -to -income ratios established for the
program. Those applicants with credit problems or who do
not meet other underwriting criteria for the program will be
counseled with and if the credit or other underwriting
problems cannot be resolved, they will be denied as an
applicant for the HOPE 3 program.
5. Equitable procedures for selection of eligible families will be
ensured through a lottery drawing for applicant placement for
the order to view and select HOPE 3 houses. Applicants will
be processed as a group after several counseling and training
seminars have been held. Those applicants who are approved
for the program will attend an Orientation Meting where they
will draw in the order they sign in for the Orientation
Meeting for their own lottery placement number.
The exception to the drawing is that those applicants that
fall in a preference category would be considered first for the
program as follows:
a. Those in the first preference who occupied the property
when it was selected for the program, would be given
the opportunity to purchase the property through the
HOPE 3 program if they meet the HOPE 3 underwriting
criteria. This property would not be on the list for
other applicants to view or select.
b. Those in the first preference who live in public housing
and who otherwise qualify for the HOPE 3 program
would draw amongst themselves from the highest
placement numbers to assure they get first choice to
view and select houses.
C. Those in the second preference who have completed
participation in an economic self sufficiency program
would draw amongst themselves from a second group of
highest numbers to assure they get second choice to
view and select houses.
6. The HOPE 3 Program Application for the potential
homeowner will list all preference categories to be checked
by each individual applicant. If an applicant indicates they
are living in public housing, a verification form will be mailed
to the proper entity requesting if there are any delinquencies
and the amount due. The applicant will then be informed
that the delinquent amount must be paid and to furnish the
44
Housing Section with a paid receipt for documentation for
the files.
B. Homebuyer Counseling & Training Plan
1. The following topics will be a part of the homeowner
counseling and training program:
a. Crime Prevention in your neighborhood.
b. Tips for filing your income tax return.
C. Code violations and enforcement.
d. Money management - mortgage & foreclosure.
e. Fire prevention.
f How to conserve energy in your home.
g. Tips on maintaining your home - heater, air
conditioner, etc.
h. Home insurance policies.
i Last Wills & Testaments - What Can Happen Without
One.
2. The City of Lubbock has projected to have 20 homes available
for selection by eligible homeowners with an estimated 7
alternates being approved for a total of 27 families and
individuals in the Program. Considering some will be single
parent households, it is projected that the classes will train
30 to 45 individuals.
3. The classes will be offered the fast Tuesday of every month
from 7:00 to 8:00 p.m. Homeowners are required to attend
four one -hour classes.
4. The Counseling and Training services will be 'provided by the
Community Housing Resource Board.
C. Financing for Homebuyer's Purchase
a. The average fair market value of the property at the time of
sale to the buyer will average $29,273.
b. The average sale price will be $26,346.
C. The average downpayment will be 3% of the purchase price,
or $790.00. This amount will be required to be paid by the
owner.
d. The houses will be sold at the actual price: paid for the
properties, the discount, if any, will be passed on to the
HOPE 3 homebuyer. The average first mortgage will be for
$25,556. However, if necessary to keep the HOPE 3
45
homebuyers debt -to -housing expense ratio within the 30%
guideline, a HOPE 3 soft second Promissory Note could be
utilised. Applicant's housing expense for principal, interest,
taxes and insurance will not be more than 30% or less than
20% of applicant's gross monthly income.
e. The HOPE 3 properties will be rehabilitated in most cases
through the City of Lubbock's Housing Section's Residential
Rehabilitation Program. The average rehab cost will be
i$15,375. The source of the loans will be through the Lubbock
Housing Finance Corporation with the City of Lubbock's
Housing Section administering and servicing; the loans. The
HUD 203 K Program will be utilised when possible.
f. Since the most it is intended to pay for a property is
i$33,500, the 10% discount allowed by FHA would not be
enough to kick in a required HOPE 3 Promissory Note.
However, if the City of Lubbock is able to purchase 5 houses
or more from FHA at a time and the 15% discount is
received, then a HOPE 3 Promissory Note would be utilised.
Since the average cost of a property is projected at i$29,000,
the 15% discount would be $4,350. This would be the
average amount of a HOPE 3 Promissory Note.
D. Continued Affordability Plan
Long term affordability will be insured by the low interest mortgage
loans which will make the payments affordable from the inception
of the loan.
Also, the grant/loan rehab will bring the house to the City of
Lubbock's Minimum Housing Code, thus eliminating major
problems and expenses during the first several years of
homeownership. Since the grant/loan rehab is part grant and part
a low interest loan (3%), this will also insure long term affordability.
If a HUD 203 K Loan is used, funds will be used to leverage the loan
to meet the applicants affordability.
Items addressed in the rehab will include cost energy measures,
such as the installation of storm windows, storm doors, insulation,
caulking, etc., thus making utility costs more affordable.
Nurturing classes will be offered that will acquaint the homeowners
with ways to save energy and maintenance, thus cutting down on
utility and maintenance costs.
Some taxes will be saved when the homeowners file for homestead
exemption and elderly or disabled exemptions, if applicable. The
46
City of Lubbock staff will ensure that the homeowners are aware of
these exemptions.
47
..vr e— AAA l r%KUL 1 I%KLA 0,1 IT M I uL
CITY OF LUBBOCK
CENSUS TRACTS
- - - - - - - - - - - - - %
104.02 .-snowy
1
1
I1�
r
I
I
1 a.nrsnwr
-----------------------�
i
i
i
i
1 PARTIAL +
i
I
2.01 ft"moomw I
i
I
t
4.05"`.�"' J
Y
17.06 17.02
y
1
5 EpAxwer
6.02
VP
18.01 19.01 20
17.
1
� I
I
t
I �
104.03
t la.w
PARTML +
:------------
e0M�1'i�fr
18.03 19.03 21.01
18. �•�
9
z2 iI45A i 25
19.04 121.02 122.02
105.04 1105.05 1105.06
t
r----
I i
I rwMamer► '
-- —__•
1
I
t
t
TW
..� PARTIAL + �---
11
.41
"� 10 �
CITY LIMITS
------------
I T
NORTH
SHALLOWATER
79383
REESE
FORCE BASE
7948919
WOLFFORTH
70382
POSTAL ZIP CODE MAP
LVBBOCI4 TEXAS
NEW DEAL
70350
70320
i
URSIAINE ST O
79415
z
79416 79403
4' ST
79410
19TH ST I 79401 19TH ST
79407 71411 01,
79412
� 79414
7941!
2LOOP (EVEN)
289 LOOP (ODD)
NTH ST 70424 79423
114TH ST
70405
79404
$IATON
79364
49
0
1990 Ethnic Breakdown
Total Population - 186.206
by Percentage
A,ian/Indian
n
p�ni
African American
8.7
PART OF EXHIBIT 2
SEE ATTACHED LIST
(PROPERTIES ACQUIRED DURING CITY OF LUBBOCK'S 2NDDIMPLEMENTATION GRANT
FOR EVIDENCE OF ELIGIBLE SOURCE, PROPERTY SIZE, LOCATION AND THAT
AT LEAST 10 PROPERTIES HAVE BENN AVAILABLE DURING THE LAST TWELVE
MONTHS)
51
A4 of 3/30/95
HOPE 3, YEAR 2 - PHASE 2
(REHAB BUDQET (CLOSING COSTS
$550.000.001 81,10t1ET t30.000.001
(ACOLNSITION BUDGET
PROJECT SET-UP
0870,000.001
FORI11 CALLED
PURCHASE PRICE/
LESS TAXES
DATE CONTRACT
CLOSING
INTO CM14,
(CLOSING COSTS)
CITY SETTLEMENT
OWED BY
NET DUE
ACCEPTED BY
DATE
MARLED TO
""AS SETUP
OTHER COSTS
TOTAL CM
AMENITIES
ADDRESS
AQENCY
COST
FHA
Al (LOSING
HUD
W/SELLER
CMI
IN CMI
SETUP Cm
SETUP
2/l/1
1401 24th St.
FHA
15,300.00
150.29
15,139.71
03/14/94
04/28/94
05/17/94
20.000.00
1,000.00
36,300.00
21111
151437thSt.
FHA
19,100.00
179.01
10.000."
03/11/94
04/28/94
05/17/94
20.000.00
1,000.00 -
39,190.00
21110
5015 35th St.
RTC
505.03
0.00
N/A
09115193
NIA
11110/94
25,000.00
1,000.00
26.000.00
hamml
211/MPW
2006 514t St.
FHA
22,950.00
392.32
22,567.68
07/07194
00/25/94
1110194
20,000.00
11000.00
43.950.00
41110
1215 461h P1.
FHA
20,520.00
435.96
20,091.04
07/07194
00/25/94
11 /6/94
20,000.00
1.000.00
41,620.00
211110
192025thSt.
FHA
15,120.00
32.00••••
15.152.00
10/O5/%
111301%
1217/94
20,000.00
1.000.00
36.120.00
3/2/1••
7301 Hickory
FHA
27.000.00
66.60•...
27,068.00
10/05/94
11130/%
1217194
20,000.00
1,000.00
40,000.00
3/1/1•••
471735thSt.
FHA
30,800.00
70.08....
30,670.09
10/05/94
11/30/94
12171%
20,000.00
1,000.00
51,600.00
3/2/2
7409Ekn
FHA
34,200.00
187.52
34,012.48
01/03/95
03M/95
3129/95
20.000.00
1.600.00
55,800.00
3/2/1
5433 47th
FHA
37.350.00
02/26/95
IV 311/0
3104 2nd St.
FHA
19,800.00
106.53
19,693.47
01/11/95
03/09/95
3129/95
25,000.00
1,600.00
40,400.00
311/2
3016 36TH
FHA
32.950.00
161.47
32.666.63
011311"
03/09195
3129/95
27,500.00
1,600.00
61,950.00
31110
461345th
FHA
31,500.00
187.60
31,332.50
01/31/115
03109/95
3129195
27,500.00
1.600.00
90,600.00
311.511
4407 L~
VA
35,150.00
138.18
35,331.82
02108/95
03109/95
3/29/95
20.000.00
1,600.00
87,070.00
320.00
3/1/CP
3301 Dartmouth
FHA
10.000.00
02/22195
311/0
4412 43rd
fhe
23,650.00
2122195
25 HOUSES PURCHASED
$693.050.03
529,300.00
28.000.00
1 Donated
• Now Tax Ofleo owns us 432.00 • • Tan Of a orm to ►68.80 • • • Taw OIRes owa we $70.08
• • • • TRM Co. pdd hna dMet - dA not ondlt h w ar siawl Aaowras of 1Nna el y..r desod and taaa w duo new -not pnpslds.
is
tj
HOPE 3 HOUSE UST - YEAR 2 - PHASE 1
(Effective 3/22/94 - Aeq. Budget $870,000.00)
IREHA6 BUDGET (CLOSING COSTS
$650,000.001 BUDGET 090,000.001
(ACOU1 I I BUDGET
-
PROJECT SETUP
$970.000.001
FORM CALLED
PURCHASE PMICEI
LESS TAKES
DATE CONTRACT
CLOSING
INTO CMt a
(CLOSING COSTS)
CRY SETTLEMENT
01NED BY
MET DUE
ACCEPTED BY
DATE
MARLED TO
REHAB SET-UP
OTHER COSTS
TOTAL CMl
AMMER
ADDRESS
AGENCY
COST
FMA
AT CLOSMG
HUD
1NISELLER
CM1
M CMI
SETd1P Cm
SCUP
3/2lewpm
4819 52nd St.
FHA
$32,220.00
0147.91
032.072.09
01/14/94
03/10/94
05/17/94
020,000.00
•
01,000.00
$63,220.00
2/111
60/6 35th St.
FMA
33,300.00
271.56
33,426.44
02/18/94
04/18/94
05/17/94
15,000.00
1,000.00
49,000.00
312/1
601H. Dover
FHA
33.300.00
256.90
33.043.10
02/10/94
04/18/94
06/17194
15.000.00
1.000.00
40.300.00
31110
2607 E. Bet-
FHA
20,700.00
207.09
20,492.91
03117194
0426/94
05117194
19,300.00
11000.00
41,000.00
31112
4402 46th St.
FHA
29,700.00
367.20
29,332.00
05112/94
06/30/94
11M194
20,000.00
1,000.00
50,700.00
3/2/2
2901 94th St.
VA
28,600.00
677.04
28,607.96
06/28/94
09/16/94
1118194
20,000.00
1,000.00
49,600.00
565.00
31110
1201 47th St.
FHA
30,800.00
360.60
30.209.40
05/26/94
06/30/94
1118194
20,000.00
1.000.00
51,000.00
W2/2
5405 25th St.
FHA
38.700.00
659.19
30,140.81
00/07/94
07/19194
11/6/94
15,000.00
1,000.00
54,700.00
3/1-1/2/0
1902 47th St.
F#4
34.200.00
702.47
33.497.53
00/06/94
07/19/94
1118194
20.000.00
1.000.00
55,200.00
2/2/0
4537 Mwsha*
FHA
28.350.00
493.24
27,658.76
00/29194
09/25/94
1110194
20,000.00
11000.00
49,350.00
112t
49UA1 NOVSINL
�PORTUNffY
THE DEPARTMENT
OF
HOUSING AND URBAN DEVELOPMENT
PUBLIC INFORMATION RELEASE
1205 Texas Avenue
Lubbock, TX 79401-4093
(806) 743-7276
54
EFFECTIVE 04!15/94
13FRj9y I OUS L I ST I NCCS rl
1Ir r
OWNER-OCCU./FULL
PRICE OFFERS RECEIVED BY 1:30 PM
WILL BE
OPENED AT
2:00 PM
BID EXPIRATION DATE: MONDAY, APRIL 18,
1994 4:45
PK
BID OPENING DATE:
TUESDAY, APRIL 19,
1994 9:00
AN
INVESTORS # = 04/28/94
ADDRESS
FHA CASE NO.
BD/BTH/GAR
UI/Ill
PRICE
CODES
LAISESA
1015 N 12TH ST
494-166179-703
3/1/1
IN
S36,000
LEVELLAND
1501 8TH ST
494-131261-521
2/2/1
IN
S22.500
#/*/***
LITTLEFIELD
1200 W 3RD ST
494-184014-748
3/2/0
UI
$22,700
LORENZO
401 1ST ST
494-167740-703
3/2/2
IN
$30,050
LUBBOCK
5504 2ND ST
494-135635-703
3/2/2
1N
$49.000
#/*/***
2401 E 9TH ST
494-161355-703
3/2/1
UI
S10,950
1903 22ND ST
494-117456-503
3/2/2
UI
$22,150
3509 23RD ST
494-180279-748
2/1/0
IN 1>it
S30,000
1520 24TH PL
494-179876-703
3/2/0
IN
S21,050
1716 25TH ST
494-172413-748
3/2/0
IN
S18,500
1616 �i2 *� n e T C1f`11
9- 1�a7 4 8 7 48
L918 48TH ST
494-134438-703
2/1/2
UI
S19,000
i�
Li l ;T H ST
4 wf�FeTif S
494 118196 2 $a
3
9i a! 2
.R ! i ! 1
..ems
T ff
1907 PARKWAY DR
494-113809-521
3/2/1
IN
,
S23.750
402 TEAK AVE
494-161972-703
3/1/1
IN
$13,300
55
PUBLIC INFORMATION RELEASE EFF: 03/31/95
EXTENDED LISTING
OFFERS RECEIVED BY 1:30 PM WILL BE OPENED AT 2:00 PM
ADDRESS
FHA CASE NO.
BDBTWGAR
UVIN
PRICE
CODES
pB RGER
•
1012 N HEDGECOKE DR
494-119318-244
32/0
U1
$16,250
*/*
CANYON
1409 7TH AVE (duplex)
494-170469-703
4/3R
IN
$77,400
***
KEERMIT
412 N AVE D
494-102792-203
32/CP
IN
$25,200
�.AMESA
1404 N 8TH ST
494-195153-748
MO
IN
$25,750
806 N 18TH ST
494-168690-703
2/1/CP
IN
$26,200
*/*
�EVELLAND
407 12TH ST
494-166405-721
2/1/1
IN
$22,000
LUBBOCK
2414 27TH ST
494-103694-203
32/1
U1
$25,200
MIDLAND
3711 HUMBLE AVE
494-134615-203
3/22/
UI
$47,550
ODESSA
2716 REDWOOD DR
494-146787-203
32/CP
IN
$29,950
PAMPA
521 E 19M
494-144995-703
3/12
IN
$32,500
1025 S CHRISTY
494-171766-721
2/1.75/1
IN
$16,400
331 N FAULKNER
494-149546-721
3/1100
IN
$14,850
2143 N FAULKNER
494-145097-703
3/110
IN
$33,000
*/'»
1021 NEEL RD
494-119515-203
3/1/0
U1
MAKE OFFER
1132 TERRY ROAD
494-105336-203
3/1.5/0
IN
$18,500
514 WARREN
494-150861-721
2/1/1
U1
$11,400
SEER
403 35TH ST 494-198309-721 32/1 IN $24,500
56
rur auea Cart SandersReaRa7.7n-tter 1
Homes.
EMNDED LISTINGS
The smart stove.
A HUD Home could be your
tanetetat move, We can open
OFFERS RECEIVED BY 1:30 PM WILL BE OPENED AT 2:00,PM
ONHUll
the door to the home you
want st die price you
DRM
aforduContact your b re
DR SE NO. BTH AR y4AN
RICE cous
real estate profeeeionel for
LEVELLAND
VIEW USTING — OWNER-OCORANIS, GOVERNMENTAL ENTRIES sit
N - .
PRE -APPROVED NON-PRORT ORGANIZATIONS ONLY
40712TH ST 494-166403.721 2/1/l N
i22A00 '/'•'
BEGINNING TUESDAY, MARCH 28, 1995
LUBBOCK
FULL PRICE OFFERS RECEIVED BY 1:30 PM WILL BE
241A27THsr 494-103694.203 3/3/1 u
$25200 •/"'
OPENED AT 2:00 PM
2113 93RD PL 49,1 82251.703 3/2/2 N
iU OW
elib IRATI(DN DATE: MONDAY, APRIL 3, 1995 4.45 PM
BID OPENNG DATE: TUESDAY, APRIL 4, 1995 9:GD AM
BDRM/ •
DRESS , . ' FHA CASE N0. TH AR OIp-,Lt• Egg CODES
LUBBOCK
IS HUD will cuadder my restorable offer 0 CODES:
. -
.. - - -
on peopenks ~� mO tishd •. U I Not ell • Ie for FHA insurance
■ HIJD properties eta alined a wile to Pb
81D6 GARY AYE _ 494, •103110.203 3/2/2 :' IN $6W '/' '
qualified purchasers withota regard m the IN EBQ3k hrr FHA Inwnttc:
..
8105 WACCi AVE . 494.167447 703 3/2/2 ` N ;j56A00
p'ra°'actiae prrcheser�r, r.
Hgion, a., oatiomtl n, familial • - Prquety aa7 tmhim lead based
- - -
'e/ooe
- status or hardiupp l�atareted petaau .... Faint haarda.
broker d
2807 VTH ST =494.173270.740 , 9/ AO , N $42,000 .
..
should contact a thelr choke „ hgxrty in bntd to e
■ HUD teeer et the right to reject any end
.:
471165fli ST 494.185462 703 is' 3/2/2 .; IN >i7 W
all oHan or to ww ithdraa property prior desllpwd SpeeW Flood H.A
Arat.
.., -
to bid opening. Accuracy of inforeuttoe .. .
5717 96TH ST-"' k 494-168523-703 3/2/2 IN $66,000
it y
contained in this listing is not vguaarmted. «a Property hsa &fed ve paint.
It b the purchases i suponsibility to - whkit 9 trot heated as prefacribeil
'
_ ,:...... +
NEW USM0 — OWM-OCOANTS, GOVERNMENTAL EN1111ES &
"d. brit a to the accuracy at by FND, will be trattd prior to
inforaution and property eordition; .. Jaaleg. .
PRE -APPROVED NON'PROFR ORGAMIATIONS sit INVESTORS
heeludimg emy pouibl. caning nd ea& y
aioletbee. - 8 8wetmel problems mey ester...
-As
B1D EXPIRhT10N DATE MONDAY, APRIL 3, 1995 4:43 PM
■ Au properete ere rold tr.
■ All "not rhote, for FHA lesmnnee- T herb]. termite 6.w .
BID OPENING DATE: TUESDAY, APRIL 4, 1995 9:0D AM
pprrooppeertin any be eligible foe 203K
Bmecing ■ CI.OSINCI BPRVICKS
'
■ C.B L800.7674HUD to receive HUD s All sales closing arnica of HUDowned .-
Buyer Brochure. ... properties in the Lubbock am will be .
-
-
.
IS If contract hu not been eloaad oe at Tenn Tide,".k
.• •• FHA CASE NO.
ADDRESS , IlTHIGAB I= PRICE CODES
eaneded by the 60th day it will be MCI uak.Asa., Sala C, TX'a'•
A
teratin". 7%2
79424. IS061793ASSS. '
LUBBOCK ,
.006)
_
633727FHsr, ^ 4944158917.703 2/1/2 • iN $36,350 '•/•••
OU I 6 s
U.S. F HOUSING
193671STST 494-1703*748 3/210.- N. . =46,150 •/•••
URBAN D Vt
}205TexasAve.
.•
..
Lubll xk,,TX 79401-4093 .
18061743-7276
57
Exhibit 3:
Program Budget and Plan for Use of Sale and Resale Proceeds
Please estimate and describe all planned expenditures for your HOPE 3 application. The program budget
data may be presented in a table. a narrative, or other format.
A. Eligible Activities.
The program budget should estimate the cost and briefly describe each of the eligible activities you plan
to undertake. You can refer to the list of eligible activities included earlier in this guide. If you wish to
engage in activities not listed, you should explain why so that we can consider your request.
To help you in your budget planning, we have included a chart at the end of this exhibit that shows all the
eligible activities and sources of funds. Feel tree to use this as a worksheet and/or to submit it as part of
your application.
Please try to be specific and succinct. For instance: $600.000 in HOPE 3 grant funds will be used to purchase
15 properties from FHA. The City is donating five properties acquired as part of a street widening, valued
at S 150,000.
In the case of financial assistance to homebuyers for purchase and/or rehabilitation, please describe the form
and cost of such assistance, such as interest rate reductions, down payment assistance, homebuyer closing
costs, or other forms of assistance.
B. Match
The match contribution may include the following:
• cash contributions
• waived, foregone or deferred taxes. fees, and other charges
• on -site and off -site infrastructure
homebuyer sweat equity
donated materials and supplies
Please identify which one or combination of the above will constitute your match and describe how you
will use these funds or services. If you wish to use sources not listed, you should explain why so that we
can consider your request.
Note: The Housing and Community Development Act of 1992 established a reduced match requirement
of 25 percent of the amount of the implementation grant.
C. Sale and Resale Proceeds
In addition to the use of grant funds, please describe your plan for the use of sale and resale proceeds,
including an estimate of the expected amount.
D. Public/Private Support
One of the considerations in comparing applications is the extent of the public and private support you
receive for your program. Some of these commitments may be part of your match contribution. Please
provide us with evidence of these commitments specifying which are part of your match and which are not.
For example commitments from State or local governments may include direct financial assistance,
58
donation of properties, infrastructure improvements, supportive services, or other tangible assistance.
Commitments from private sector and nonprofit organizations such as lenders, churches, and community
organizations might include financial assistance, supportive services, donations of labor or materials. or
other tangible assistance.
Applicants frequently ask us to calculate their match. if it involves commitments by fenders to provide
below market interest rate mortgages to HOPE 3 purchasers. Specific guidelines for making these
calculations are addressed in 24 CFR section 572.220(bX I xiv). For purposes of this calculation you should
use 9 1/2 percent as the measure of market yield for housing financed with a fixed rate mortgage and
9 1/4 percent with respect to adjustable rate mortgages. If possible, the lender should specify in their
commitment letter the point spread between their rates and these rates.
59
EXHIBIT 3:
PROGRAM BUDGET AND PLAN FOR USE OF SALE AND RESALE PROCEEDS
PROGRAM BUDGET WORKSHEET
BUDGET LINE ITEM DESCRIPTIONS
� 1 PROGRAM SCHEDULE WORKSHEET
PROGRAM SCHEDULE FOR USE OF SALES AND RESALE PROCEEDS
60
Program Budget Worksheet (OPTIONAL)
Do not Include any sale or resale proceeds for the purpose of completing this worksheet.
Uses of Funds
(A)
HOPE 3 Funds
000'9
(a)
Cash Matchlog
Contrlbud"
000'slows)
(C)
In -Kind Matching
Contribudoru
(D)
Other Funds or
Contributions
000'a
(E)
Total Program
000's
1. Acquisition by Applicant or Donation
of Eligible Properties to Applicant
$
421,536
S
S
210,732
$
$
632,268
2. Closing Costs on Properties at the time of
Acquisition by Applicant
$
$
$
$
S
3. Finandat (a) Interest Rate Reductions
$
S
$
$
$ -
Assistance b ) Down Payment Assistance
Homebuyersi (c) Home"er CkwV Casts
for Purchase
a„ya (d) (Other - )
S
$
$
$
S
S 33,000
$
$
$
$ 33,000
$
$
$
S
$
Rehabilitation
!. Rehabilitation by Applicant of Eligible
Properties
$ 415,664
$
$
S
S 415,664
5. Architectural 8 Engineering Work
$
$
$
$
$
G. Relocation of Residents of Eligible
Properties who Elect to Move
$
S
$
S
S
7. Temporary Relocatlon of Homebuyers
During Rehabilitation
$
$
$
$
S
S. Legal Fees (excluding dosing costs)
$
$
$
$
$
9. Replacement Reserve
$
$
$
$
$
10.Homebtryer Outreach and Selection
$ 10►000
$
$
$
$ 10,000
11. Counseling & Training of Homebuyers
$ 4,800
$
$
$
$ 4,800
12. Property Management and Ho" Costs
$ 15,000
$
$
$
$ 15,00o
13. Recipient Training
$
$
$
$
$
14. Economic Development (sum of col. A + B
+ C plus amount received under plannirig
—grant cannot exceed $250,000)
$
$
$
$
$
15.00*r Activities Requiring HUD Approval
$
$
S
:
$
16. (a) Waived, loregonei or deliwad texas.
lees, and other dhargee
(b) On -eft and off4ho inkast uce"
(c) sweat eq�3ty
Dwated mabnel s and
(e) a,er b4iind maWing corteibutfons
17. Activities funded from other sources not
included above (non-HWE and non natftng )
$ 900,000
$
�
S
s
s
s
i
s
i
i
$ 210,732 $
$
IS. Subtota►(Lines 1 through 17)
$ 1,110,732
19. Administraive Costs (Ine 19 A+ 8+ C must
not exceed 15%of ins 2oA; sum of line 19 B
+ C must not exceed 7% of line 20A)
$
100,00o
$
50,000
$
I$
$
150,000
20, Total Program Costs: (Sum of roes 18 + 19) $
(Sum of lines 20B + C must equal or exceed 1 1,o00,000
25% of fine 20 A)
$
50,000
$
210,732
$
$
1,260,732
Pape 61
BUDGET LINE ITEM DESCRIPTIONS
A. Description of Budget Entries
Line 1: Column A: $421,536.00 in HOPE 3 grant funds will be used
to purchase 16 houses from FHA and / or VA.
The requested amount is based an the average
price of the 48 houses the City Of Lubbock purchased
in year one and two. This average is $ 26,346.00 per
house.
Line 1: Column C: $210,732.00 of in -kind snatch contributions is based on
the fact that the City of Lubbock is donating 4 residential
houses with a recent appraised fair market value of
$190,732.00 and 26 lots that have an appraised value of
$20,000.00. The sum of these two amounts is
$210,732.00 (rounded oM
Line 3: Column A: $33,000.00 of grant funds for homebuyer closing
cost is computed on the basis that 16 homes are
anticipated to be purchased utilizing HOPE 3 funds
and 4 donated houses . The City will escrcw taxes
and insurance. The average cost per house to cover
these expenses is $ 1,650.00. The average cost includes
title search, appraisal, filling fees , one bears escrowed
homeowners insurance and three months escrowed taxes.
( The resultant $ 33,000.00 figure is
rounded off to the nearest hundred).
Line 4: Column A: $ 415,664.00 of rehabilitation cost are included
in the HOPE 3 grant. This figure is computed on the
basis of $ 15,375.00 of rehabilitation for each of the
16 FHA houses that will be bought, and $42,416,00
for each of the donated houses . The amount
in the budget for these four houses includes ;
moving the houses to new lots, cleaning the lots,
roughing in all plumbing , electrical, and completely
rehabing the house .The resultant amount was rounded
up to the nearest hundred.
Line 10: Column A: Homebuyer outreach is budgeted at $10,000.00
and Will be used to pay Habitat for Humanity
to advertise the availability of the HOPE 3
program is both the newspapers and radio
stations. Habitat will also provide classes
for lour to moderate first -time home buyers,
thus qualifying these persons for the HOPE 3
pool of applicants.
62
Line 11: Column A: Counseling and Training of Homebuyers has
been budgeted at $4,800.00 . This money -
will be paid to CHRB , the participating non-profit
responsible for educational homebuyer classes.
CHRB Will pay for all printing, and provide
all materials to conduct a minimum of
six Counseling and Training classes.
These classes Will train homebuyers in general
property up keep, insurance , pest control,
city codes, recycling, and home budgeting.
Line 12: Column A: Property management and holding cost have
been budgeted at $15,000.00. This includes
mowing of yards during the summer and
general property, repairs before transferring
the properly to the homebuyer.
Line 19: Column A: The City of Lubbock is budgeting 10% or
$100,000.00 for administration. This line
cannot exceed 15%.
Line 19: Column B: The City of Lubbock is using $ 50,000.00
or 5% of Community Development Block
Grant funds for administration match.
This line cannot exceed 7%.
Line 20: Column E; $1,260,732.00 is the total program cost
for Hope III year three. $1,000,000 in
HOPE 3 grant funds, $509000.00 in
CDBG administrative match, and $2109732.00
of in -kind match.
63
Program Schedule
Please describe your schedule for implementing your proposed homeownership program. Let us know the
specific activities you will undertake, a clear timetable for each activity, and precise benchmarks for
completion. You can present this information in a chart, narrative, or other format. The enclosed form,
which is optional, may be helpful to you in planning your activity schedule.
64
0%
PROGRAM SCHEDULE WORKSHEET
ALL PROPERTIES WILL BE TRANSFERRED TO ELIGIBLE FAMILIES WITH IN 2 YEARS.
FIRST Q SEC0XD Q THIRD Q
FOURTH Q
FIRST Q SECOND Q Tff" Q FOURTH a
AC'IIVIi'Y
YEAR 1 YEAR 1 TSAR 1
YEAR 1
YEAR 2 TSAR 2 'MAR 2 TZAR 2
PURCHASE HOUSES
PHASE 1 AND 2
4� x � Y,; 6; P f f ySkZ3t�r�Z X 2 3y::;.Y iA� �aQjt q � { S f d ;P
PROPERTY �AYiiRa11� a
DONATED HOUSES
WILL Be MOVED
PROPERTY MANAQE3[SxN'i
iiT,
HABITAT WILL START
PHASE 1
COUNaZu"
APPLICATION PROCESS�5;{{yy33�y:;k
PRASE
ki s
Y18Y�r9t fai
FAMMY SELECTION FOR
HOUSES. REFER
APPLICANTS TO 203-K
CLOSE HOUSES /REHAB.
STARTS
PHASE 1
HABITAT WIILL START
PHASE 2
COUNSCLING
APPLICATION PROCESS
PHASE 2
FAMILY SELECTION FOR
HOUSES, mitil
APPLICANT! TO 203-H
�' a r x�a<m 4x4y f%y5 a P� , $ t ,§ 5j f;j(`rt$s y§
.z� b(( YEa Z 6S "§'•
CLOSE HOUSES /REHAB.
Si ARTS
P��� ���s
RA89 2
PURCHASE HOUSES WITH
SALES PROCZ;EDS FROM
TZAR 1AD2
<cpvw
aL START
no= OWNERSHIP
A ok A I QSAS f
ASSES
CLASSES
/
EXHIBIT 3 — EVIDENCE OF PREPARED BY: HOUSING SECTION
MATCH FOR: CITY COUNCIL MEETING OF APRIL 13, 1995
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to
execute for and on behalf of the City of Lubbock, a HOPE 3 Implementation Grant Application
for the 1995 and related documents and
THAT the City Council of the City of Lubbock hereby authorizes said Implementation
Grant Application containing local matching funds for the total amount of $250,000.00 from:
1. The donation of four City owned houses totalling $190,732.00; and
2. Previously approved lots donated by the URA Board and City Council for
the HOPE program totalling $20,000.00; and
3. CDBG administrative funding of up to $50,000.00 eligible as match under
the HOPE Program.
THAT said application is attached hereto and incorporated in this Resolution as if fully
set forth herein and shall be included in the minutes of the Council.
Passed by the City Council this day of , 1995.
ATTEST:
Betty M. Johnson, City Secretary
APP OVED AS TO C T:
Doug Go , Managing Director of
Communi evelopment and Health Services
APPROVED AS TO FORM:
js/H3GRTAPP.RES
ccdocs/Apri13, 1995
DAVID R. LANGSTON, MAYOR
66
PLAN FOR USE OF SALES AND RESALE PROCEEDS
The Housing Section of the City of Lubbock is currently working with FHA
and Security Mortgage & Trust to utilize HUD's 203 K Loan program to
buy out the City's interest in specific HOPE 3 program houses from
Program Years 1 and 2. Currently, the City of Lubbock has ten HOPE 3
houses and applicants from Year 2, and one from Year 1 which Security
Mortgage is qualifying. At this time, the 203 K program looks very
promising and the City anticipates closing 10 to 14 203 K Loans with
Security Mortgage & Trust. The sales proceeds will then be used to
purchase more houses. It is the City's plan to utilize 203 K on as many
qualified HOPE 3 applicants and houses as possible.
If the City of Lubbock is selected for HOPE 3, Year 3, the plan is to
continue the program in the same manner as in the past.
The Housing Section of the City of Lubbock is currently in contract to
purchase its first house with sales proceeds. The City plans to sell the
house to a qualified applicant from HOPE 3, Year 2.
The City of Lubbock anticipates purchasing and rehabilitating eight
houses with sales proceeds this year, depending on how 203 K works out.
Currently, the City has $7,222.00 per month coming in from loan
payments. It is anticipated that $3300000.00 will be coming in from sales
proceeds of 11 HOPE 3 houses through 203 K.
The Housing Section of the City of Lubbock is continually soliciting
mortgage companies, banks, savings and loans, and credit unions in
innovative ways to leverage and/or sell HOPE 3 houses to generate more
funds to use in its HOPE 3 program.
The City of Lubbock does not anticipate any resale proceeds. Past
experience in the Urban Homestead Program has shown that those
families able to afford homeownership opportunities are very stable. Out
of the 34 homes awarded in the Urban Homestead Program, no houses
were turned over either to foreclosure or resale. It is hopeful that this
trend will continue.
The person responsible for insuring that all sale proceeds are collected
and utilized for approved purposes after grant close-out, and amounts due
HUD are repaid is:
Juan "Tony" Antonio Reyes
Housing Rehab. Coordinator
1625 13th Street, Room 107
Lubbock, TX 79401
(806) 767-2295
67
��,....,. U.S. Department of Housing and Urban Development
Lubbock Office, Region VI
�' • c George M. Mahon Federal Building
1205 Texas Avenue
Lubbock, Texas 79401.4093
April 3, 1995
Tony Reyes
Housing And Community Development
P.O. Box 2000
1625 13th Street
Lubbock, Texas 79457
Dear Mr. Reyes
I wanted to take this opportunity to tell you how excited we are
to be involved in the future plans of the City of Lubbock. We
have looked at many of the houses you plan to rehabilitate and
feel most will fit our 203k program. We are also excited about
the NOFA which encompass the REO properties and the 203k program.
We know we will have great success with it as well. We have
enjoyed working with you in the past and look forward to working
with you in the future.
Andy Hackney
Chief of Production
68
SECURITY MORTGAGE & TRUST
April 3, 1995
Mr. Brad Reed
City of Lubbock
Housing Rehabilitation Department
P.O. Box 2000
Lubbock, Texas 79408
Dear Mr. Reed,
Please accept this letter as Security Mortgage's commitment to work with the City of
Lubbock on the HOPE III Program. Our participation in this program mill be to provide
financing for qualified borrowers under the HUD/FHA 203k program.
We look forward to working with you and should you have any questions please call.
Sincerely,
Bert Flores,
President
2526 82ND STREET, SUITE A Luma, TEXAS 79423 (806) 745-1762 • FAX: (806) 745-2113
69
"fhe newspaper of today
with Ideas and Ideals
for the 90's and beyond"
510 East 23rd St.
Lubbock, Texas 79404
August 9, 1993
To Whom It May Concern:
PP ig'st
(806) 762.3612
Your weekly connunity
newspaper with YOU,
Me people, In mind
P.O. Box 2553
Lubbock Texas 79408
The Southwest Digest strongly urges the support of the City of Lubbock's
HOPE 3 Program. This program is important because it will provide for
people who need housing and in most cases cannot obtain suitable
housing.
The Southwest Digest pleads with the U. S. Department of Housing and
Urban Development to fund this worthwhile project for the good of
Lubbock and its low to moderate income citizens.
Thank you in advance.
Yours truly,
Eddie PRCIA/af-i son
Co -Publisher
EPR:cf
70'
****WEST TEXAS * * *; *
HisPANIC NEWS
t W j 747.3467 P. O. BOX 21 LUDDOCK TUAS 7MI
DATE: July 28, 1993
TO: U.S. Department of Housing and Urban Development
Office of Community Planning & Development
FROM: Ernest Barton
Owner & Editor
RE: Evidence of private support for the proposed Hope 3
implementation grant.
To Whom It May Concern:
Our organization strongly supports the City of Lubbock's proposed
HOPE 3 program. The importance of providing housing to families
cannot be stressed enough. We see it as an indicator to improve our
communities and provide more stable environments for families.
Clearly, there is a need for such a program in our community.
The City of Lubbock has been instrumental in several endeavors
related to providing adequate housing for low to moderate income
families. Through our support for the proposed program, our
organization is willing to print stories and public service
announcements in our newspaper on the HOPE 3 program before its
inception and during the program.
Our organization considers this a worthwhile project to support and
hopes the U.S. Department of Housing and Urban Development will
look favorably at funding this needed project.
Sincerely,
West Texas Hispanic Ne s
Ernest Barton
Owner & Editor
The West Texas Hispanic News ."A hlinoritydwned Business"
71
1607 13th Strut
Lubtx-,k. Te\ac N401
S06-747•;u;1
DATE: July 28, 1993
P.O. Box 24
Lubbock, Texas 79408
Fax S06-747-3524
TO: U.S. Department of Housing and Urban Development
Office of Community Planning & Development
FROK Ernest Barton
General Manager
RE: Evidence of private support for the proposed Hope 3
implementation grant.
To Whom It May Concern:
Our organization strongly supports the City of Lubbock's proposed
HOPE 3 program. The importance of providing housing to families
cannot be stressed enough. We see it as an indicator to improve our
communities and provide more stable environments for families.
Clearly, there is a need for such a program in our community.
The City of Lubbock has been instrumental in several endeavors
related to providing adequate housing for low to moderate income
families. Through our support for the proposed program, our
organization is willing to broadcast public service announcements
on our radio station on the HOPE 3 program before its inception and
during the program.
Our organization considers this a worthwhile project to support and
hopes the U.S. Department of Housing and Urban Development will
look favorably at funding this needed project.
Sincerely,
KEJS 106.5 FM
Ernest Barton
General Manager
72
Page 4, Southwest gAeest, Thursday, July 29, 1993
r
Southwest Digest Supports
Hope 3 Implementation Grant
The Southwest Digest strongly supports the city of Lubbock's
Proposed Hope 3 program. The importance of providing housing
to families cannot be stressed endugh. We see It as an for
to improve our communities and provide more stable environ-
nuYU for families. Clearly, there as a need for such a program in
our community.
The City of Lubbock has been insuumental in several endeay.
ors related to providing adequate housing for low to moderate in.
come families. Through our support for the proposed program.
the Southwest Digest Is willing to print stories and public services
announcements on Hope 3 program before its inception and
during the program.
Our newspaper considers this a worthwhile project to stg pone
and hopes the U. S. Department of Housing and Urban Develop.
merit will look favorably at furndng this needed prooct. One in
which we truly support! - ~ - — . - - _
73 ,
Exhibit 4:
Fair Housing and Equal Opportunity
I. Please describe for us your affirmative housing marketing strategy to take affirmative steps to ensure
faimess in participation in your program.
2. Please describe as well any specific affirmative steps you will take to ensure that Minority Business
Enterprises (MBEs) and/or Women -owned Business Enterprises (WBEs) have an equal opportunity to
compete and obtain contracts under the proposed program as well as the extent to which you have used MBEs
and WBEs in the past. Note: Indian Tribes or IHAs should attach a description of the applicant's
commitment to promote the use of MBEs and WBEs consistent with, but not in derogation of, the Indian
Self -Determination and Education Assistance Act.
3. Please tell us if you are subject to anti desegregation orders, agreements or plans and, if so, what impact
your proposed program might have on them.
Page 74
EXHIBIT 4
FAIR HOUSING AND EQUAL OPPORTUNITY
A. The following Affirmative Fair Housing Marketing Strategy will
be utilized:
1. Families who reside in low to very low income
neighborhoods, particularly minority impacted
neighborhoods and those who live in public housing are
considered the least likely to apply.
2. Special outreach will be targeted to these neighborhoods
by advertising the program in minority, newspapers,
passing out fliers to neighborhood churches, community
centers and schools and by recruiting potential
homeowners from public housing through the local
Housing Authority.
3. Potential homeowners from all racial and ethnic groups
will be informed of homeownership opportunities
through the HOPE 3 Program. The programs will promote
the concept of fair housing and help to eliminate
discrimination in housing due to age, sex, race, religion,
disability or familial status. Specific steps to inform
potential applicants about the program as follows:
4. Ads or news releases will be placed in all local
newspapers informing the public about the program.
5. Fliers will be passed out to neighborhood churches,
schools and community centers of low to very low
income neighborhoods.
6. Neighborhood Associations will be informed about the
program and fliers will be distributed to them.
7. A contact person will be established with the local
Housing Authority to obtain lists of tenants paying rents
at amounts that might facilitate for them a home
purchase. Fliers will be mailed to these tenants.
75
Hope 3 Application - Exhibit 4
Page 2
B. The City of Lubbock has Affirmative Fair Contracting Policies
in effect and has continually done a better than average job of
utilizing Minority Business Enterprises and Women -Owned
Businesses. In the Housing Rehabilitation, Affordable
Housing, Redevelopment Programs and HOPE 3, 76 percent of
the contractors are Minority Business Enterprises.
Of the 17 general contractors, one is owned by a woman, 10
are Hispanic owned and 2 are owned by Black Americans.
In 1990 the City of Lubbock was recognized by the Office of
Community Planning and Development of the U.S. Department
of Housing and Urban Development for outstanding
performance in Minority Business Enterprise during Federal
Fiscal Year 1989.
The City has worked closely with the local Hispanic Chamber
of Commerce (COMA) in promoting Minority Business
Enterprise. A recent COMA newsletter "The Hispanic
Chamber" reported that the City has spent over $1 million
with minority businesses. The City works actively with COMA
in getting minority businesses certified to qualify to bid on
specialized jobs.
The City of Lubbock will take additional affirmative steps to
ensure that Minority Business Enterprises and/or Women -
Owned Business Enterprises have an equal , opportunity to
compete and obtain contracts under the proposed program by
advertising in various minority papers, discussing
opportunities with contractors not already approved, and
recruiting through word of mouth. The City of Lubbock
television station will produce a segment requesting
contractors to apply to be approved for the HOPE 3 program
and other programs.
C. Desegregation Statement
The City of Lubbock is not under a desegregation order,
agreement or plan.
76
Exhibit 5:
Flexibility and Special Opportunities
HUD is committed to providing you with flexibility in fashioning your program to meet your local needs
and opportunities. Rather than requiring you to submit separate requests for this flexibility, we are providing
you with an opportunity to include these requests for flexibility in your application. This way we can
indicate approval of these special requests when we announce grant awards. Please provide an explanation
of why you are requesting each exception. Additional guidance on information to provide can be found
in the regulations.
1. If you wish to use two -unit, three -unit, or four -unit properties in your program, please attach a request
for an exception that addresses all of the requirements included in Section 572.115(c).
2. If your program calls for forms of ownership acquired by homebuyers other than fee simple or
cooperative ownership, please provide a justification for HUD approval (Section 572.115(b)).
3. If you propose to enter into an interim lease -purchase agreement on any or all of the properties to
be used in the program, please attach a description of the terms of the lease -purchase agreement. If you
propose a lease period longer than two years, but not to exceed 3 years, please attach a justification in
accordance with Section 572.115(a).
4. If you wish to propose any additional resale restrictions for HUD approval beyond those already
required in the HOPE 3 Program regulations, please attach a description of the specific restrictions being
proposed and justify why they are necessary. Please note that HUD will not approve additional restrictions
that it determines will substantially limit the ability of the homeowners to realize financial appreciation in
the value of their homes (Section 572.130)(e)).
5. If you propose to carry out any activities beyond those specifically eligible under the regulation at
Section 572.215 please provide a justification explaining why each other activity is necessary for the
proposed homeownership program.
6. If you propose to use form of match contribution that is not specifically eligible under the regulation
at Section 572.220, please provide an explanation of how the contribution will be used to support the
homeownership program and a justification for the value of the contribution.
Page 77
EXHIBIT 5
FLEXIBILITY AND SPECIAL OPPORTUNITIES
Not Applicable
78
Certification Concerning Use of Federal Funds for Lobbying
Note: This certification is not required from Indian Tribes or Indian Housing Authorities.
1 (insert name of person who signs below) David R. larxgston authorized official of
(insert name of lead applicant) City of Lubbock
certify to the best of my knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to
any person for influencing. or attempting to influence an officer or employee of any agency, a Member
of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection
with the awarding or modification of this grant.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for
influencing or attempting to influence an officer or employee of any agency, a. member of Congress,
an officer or employee of Congress, or an employee of a Member of Congress in connection with this
grant, the undersigned shall complete and submit Standard Form-LLL. "Disclosure of Lobbying
Activities," in accordance with its instructions.
(3) The undersigned shall require that the language of this certification be included in the award documents
for al l subawards at all tiers ( including subcontracts, subgrants, and contracts under this grant) and that
all subrecipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction
was red into. Submission of this certification is a prerequisite for making or entering into this
ansaction impos by Section 0�-dirt 731, U.S. Code. Any person who fails to file the required
such failure. /N
Name: L David R.
Title:
toi'civi( peprdty of notjesMan ST0,000 and not more than $100.000 for each
April 13, 1995
page 79
Applicant Certifications
These certified statements are required by law.
The Applicant hereby assures and certifies that:
1 it will comply with Title Vi of the Civil Rights Act
of 1964 (42 U.S.C. 2000(d)) and regulations pursuant
thereto (Title 24 CFR Part 1), which state that no
person in the United States shall, on the ground of
race, color or national origin, be excluded from par-
ticipation in, be denied the benefits of, or be otherwise
subjected to discrimination under any program or
activity for which the applicant receives Federal
financial assistance, and will immediately take any
measures necessary to effectuate this agreement.
With reference to the real property and structure(s)
thereon which are provided or i mproved with the aid
of Federal financial assistance extended to the appli-
cant, this assurance shall obligate the applicant, or in
the case of any transfer, the transferee, for the period
during which the real property and structure(s) are
used for a purpose for which the Federal financial
assistance is extended or for another purpose involv-
ing the provision of similar services or benefits.
It will comply with the Fair Housing Act (42
U.S.C. 3601-19), as amended, and with implement-
ing regulations at 24 CFR Part 100, which prohibit
discrimination in housing on the basis of race, color,
religion, sex, handicap, familial status or national
origin, and administer its programs and activities
relating to housing in a manner to affirmatively
further fair housing. For Indian tribes, it will comply
with the Indian Civil Rights Act (25 U.S.C. 1301 et
seq.), instead of Title VI and the Fair Housing Act and
their implementing regulations.
it will comply with Executive Order 11063 on
Equal Opportunityin Housingand with implement-
ing regulations at 24 CFR Part 107 which prohibit
discrimination because of race, color, creed, sex or
national origin in housing and related facilities pro-
vided with Federal financial assistance.
It will comply with Executive Order 11246anid all
regulations pursuant thereto (41 CFR Chapter 60-1),
which state that no person shall be discriminated
against on the basis of race, color, religion, sex or
national origin in all phases of employment during
the performance of Federal contracts and shag take
affirmative action to ensure equal employment op-
portunity. The a pplicant will incorporate, orcause to
be incorporated, into anv contract for construction
work as defined in Section 130.5 of HUD regulations
the equal opportunity clause required by Section
130.15(b) of the HUD regulations.
Pace $0
It will comply with Section 3 of the Housing and
Urban Development Act of 1968, as amended (12
U_S.C.1701(u)), and regulations pursuant thereto (24
CFR Part 135), which require that to the greatest
extent feasible opportunities for training and em-
ployment be given to lower -income residents of the
project and contracts for work in connection with the
project be awarded in substantial part to persons
residing in the area of the project.
It will comply with Section 504 of the Rehabilita-
tion Act of 1973 (29 U.S.C. 794), as amended, and
with implementing regulations at 24 CFR Part 8,
which prohibit discrimination based on handicap in
Federally -assisted and conducted programs and ac-
tivities.
it will comply with the Age Discrimination Act of
1975 (42 U.S.C. 6101-n, , as amended, and imple-
mentingregulations at 24 CFR Part 146, which prohibit
discrimination because of age in projects and activi-
ties receiving Federal financial assistance.
it will comply with Executive Orders 11625,12432,
and 12138, which state that program participants
shall take affirmative action to encourage participa-
tion by businesses owned and operated by members
of minority groups and women.
If persons of any particular race, color religion,
sex, age, national origin, familial status, or handicap
who may qualify for assistance are unlikely to be
reached, it will establish additional procedures to
ensure that interested persons can obtain informa-
tion concerning the assistance.
It will comply with the reasonable modification and
accommodation requirements of the Fair Housing Act
and, as appropriate, the accessibility requirements of the
Fair Housing Act and section 504 of the Rehabilitation
Act of 1973. as amended.
2. It will provide drug -free workplaces in accordance
with the Drug -Free Workplace Act of 1988 (41 U.S.C.
701) bye
(a) publishing a statement notifying employees that the
unlawful manufacture. distribution, dispensing, pos-
session, or use of a controlled substance is prohibited
in the grantees workplace and specifying the actions
that will be taken against employees for violation of
such prohibition.
(b) establishing an ongoing drug -free awareness pro -
gram to inform employees about -
(I ) the dangers of drug abuse in the workplace;
(2) the grantees policy of maintaining a drug -free
workplace;
(3) any available drug counseling. rehabilitation,
and employee assistance programs; and
4) the penalties that may be imposed upon employees
for drug abuse violations occurring in the workplace.
ic) making it a requirement that each employee to be
engaged in the performance of the grant be given a
copy of the statement required by paragraph (a);
(d) notifying the employee in the statement required by
paragraph (a) that, as a condition of employment
under the grant, the employee will:
(1) abide by the terms of the statement; and
(2) notify the employer in writing of his or her
conviction for a violation of a criminal drug
statute occurring in the workplace no later than
five calendar days after such conviction;
(e) notifying the agency in writing, within ten calendar
days after receiving notice under subparagraph (d)(2)
from an employee or otherwise receiving actual
notice of such conviction. Employers of convicted
employees must provide notice, including position
title, to every grant officer or other designee on
whose grant activity the convicted employee was
working, unless the Federal agency hu designated a
central point for the receipt of such notices. Notice
shall include the identification numbcr(s) of each
affected grant;
(f) taking one of the following actions, within 30 calen-
dar days of receiving notice under subparagraph
(dx2), with respect to any employee who is so
convicted -
(1) taking appropriate personnel action against such
an employee, up to and including
termination,eotsistent with the requirements of
the Rehabilitation Act of 1973, as amended. or
(2) requiring such employee to participate satisfac-
torily in a drug abuse assistance or rehabilitation
program approved for such purposes by a Fed -
oral. State, or iotal health, law enforcement, or
other appropriate agency;
(S) making a good faith effort to continue to maintain a
drug -free workplace through implementation of para-
graphs (a), (b), (c), (d), (c) and (f);
(h) providing the street address, city, county, state. and
zip code for the site or sites where the performance
of work in connection with the grant will take place.
For some applicants who have functions carried out
by employees in several departments or offices.
Page 81
more than one location may nerd to be specified. It
is further recognized that States and other applicants
who become grantees may add or change sites as a
result of changes to program activities during the
course of grant -funded activities. Grantees, in such
cases, are required to advise the HUD Field Office by
submitting a revised Place of Performance form.
The period covered by the certification extends until
all funds under tht specific grant have been ex-
pended.
3. It will comply with the Uniform Relocation Assis-
tance and Real Property Acquisition Policies Act of
1970. as amended, and the implementing regulations at
49 CFR Part 24.
4. It will comply with the requirements of the Lead -
Based Paint Poisoning Prevention Act, 42 U.S.C.
4821-4846. and implementing regulations at 24 CFR
Pan 35.
5.
(a) If the applicant is a State or other governmental
entity with general governmental powers (see 24
CFR 583.5), it assumes all the environmental review
responsibility that would otherwise be performed by
HUD as the responsible Federal official under the
National Environmental Policy Act (42 U.S.C. 4321)
(NEPA) and related environmental laws and authori-
ties listed in 24 CFR Part 58, including acceptance of
jurisdiction of the Federal courts, and will assess the
environmental effects of each application for assis-
tance in accordance with the provisions of NEPA and
24 CFR Part 58.
(b) If the applicant is a private nonprofit organization or
a governmental entity with special or limited pur-
pose powers, it will (i) not enter into a contract for,
or otherwise commit HUD or local funds for, acqui-
sition, rehabilitation. conversion. lease, repair, or
construction of property to provide housing under
the program. prior to HUDs completion of an envi-
ronmental review in accordance with 24 CFR Part 30
and HUDs approval of the appli:ation; (ii) supply
HUD with information necessary for HUD to per-
form any applicable environmental review when
requested under 24 CFR 583.225(a); and (iii) carry
out mitigating measures required by HUD or ensure
that alternate sites are utilized.
6.
(a) No Federally appropriated funds have been paid or
will be paid, by or on behalf of the undersigned, to
any person for infiuetteingor attempting to influence
an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection
with the awarding of any Federal contract, the mak-
ing of any Federal grant, the making of any Federal
loan. the entering into of any cooperative agreement,
and the extension, continuation, renewal, amend-
ment, or modification of any Federal contract, grant,
loan, or cooperative agreement.
(b) If any funds other than Federally appropriated funds -
have been paid or will be paid to any person for
influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an
officer or employee of Congrss, or an employee of a
Member of Congress in connection with this Federal
contract, grant, loan, or cooperative agreement, the
undersigned shall complete and submit Standard
Form-LLL, Disclosure Form to Report Lobbying, in
accordance with its instructions.
(c) The undersigned shall require that the language of
this certification be included in the awarddocuments
for all subawards at all tiers (including subcontracts,
subgrants. and contracts under grants, loans, and
cooperative agreements) and that all subrecipients
shall certify and disclose accordingly.
This certification is a material representation of
fact upon which reliance was placed when this trans-
action was made or entered into. Submission of this
certification is a prerequisite for making or entering
into this transaction imposed by section 1352, title
31. U.S. Code. Any person who fails to file the
required certification shall be subject to a civil
penalty of not less than $10,000 and of more than
5100,000 for each such failure.
7. It will comply with the maintenance of effort re-
auircments described at 24 CFR 583.150(a).
8. For
David R.
Mayor
rehabilitation, or new construction: The project will be
operated for no less than 20 years from the date of initial
occupancy or the date of initial service provision for the
purpose specified in the application.
9. For applicants receiving assistance for supportive
services, leasing, or operating costs but not receiving
assistance for acquisition, rehabilitation. or new con-
struction: The project will be operated for the purpose
specified in the application for any year for which such
assistance is provided.
10. For private nonprofit applicants, members of its
Board of Directors serve in a voluntary capacity and
receive no compensation, other than reimbursement for
expenses, for their services.
11. II and its principals (see 24 CFR 24.105(p)):
(a) are not presently debarred, suspended, proposed for
debarment, declared ineligible, or voluntarily ex-
cluded from covered transactions (see 24 CFR 24.110)
by any Federal department or agency;
(b) have not within a three-year period preceding this
proposal been convicted of or had a civil judgment
rendered against them for commission of embe221e-
ment, theft, forgery, bribery, falsification or
destruction of records, making false statements, or
receiving stolen property;
(c) are not presently indicted for or otherwise criminally
or civilly charged by a governmental entity (Federal.
State or local) with commission of any of the of-
fenses enumerated in (b) of this certification; and
(d) have not within a three-year period preceding this
application proposal had one or more public transac-
tions (Federal. State or local) terminated for cause or
default.
Where the applicant is unable to certify to any of the
statements in this certification, such applicant shall
for acquisition, attach an explanation behind this page.
Applicant:
City of Lubbock — Housing Section
Date:
April 13, 1995
For PKA Applicants Only:
PHA Ntunber:
Page 82
Certification of Consistency
with Comprehensive Housing Affordability Strategy (CHAS)
or Consolidated Plan
Applicants are required to submit the certification below from the official responsible for submitting
the Consolidated Plan / CHAS on behalf of the State or local government(s) in whose jurisdiction(s)
the program is located.
I certify that the proposed activides/projects in the application are consistent with the jurisdiction's current,
approved Comprehensive Housing Affordability Strategy (CHAS) or Consolidated Plan.
(Type or clearly print the following information:)
Applicant Name: City of Lubbock
Project Name: HOPE 3
Location of the Project
Name of the
Federal Program
to which the applicant
is applying:
City of Lubbock
HOPE 3 Pnw=
Name of
Certifying Jurisdictim: City of Lubbock
Certifying Official
of the Jurisdiction
Name: David R. Langston
Signatu
Nonprofit applicant and applicants for programs which will be located on reservation of an Indian tribe,
Guam, the Virgin Islands, American Samoa, or the Northern Mariana Islands are not required to include
a Consolidated Plan / CHAS certification with this application
Application for Federal Please place at front of applIcatlon before submisslon.
Assistance OMB Approval No. 034&0043
2. Date Submitted Applicant Identifler
April 1, 1995 } N/A
1. Type of Submission: i 3. Date Received by State State Application Idenafier
Applicstlon Preappilcatlon ( N/A
Construction Construction 14. Date Received by Federal Agency Federal identifier
)M Non -Construction (-1 Non-Constrwtion I N/A
S. Applicant Information
Legal Name Organizational Unit
City of Lubbock
Housing Rehab. Section
Address (give aty, county. State, and zip code): Name, telephone number, and facsimile number of the person to be contacted on matters
invotvmg nes apoicanw (give area codes)
P. 0. Box 2000 Mr. Juan A. Reyes
1625 13th Street
Lubbock, TX 79457 (806) 767-2294
FAX Number:
8. Employer Identification Number (EIM: ! 7. Type of Applicant: (enter appropriate letter in box) C
7 5— 6 1 0 1 0 1 0 5 9 1 0 A. State H. Independent Sdwd Dist
S. County
I. Stara Controlled Institution of Higher Learning
8. Type of Application:
C. Municipal
J. Private University
® New 0 Continuation F1 Revision
f 0. Township
K. Irnd(irn Tribe
E. Interstate
L IndKidual
If Revision, enter appropriate Iettier(s) in box(es):
F. InWfmuruapal
M. Profit Organization
G. Special District
N. Other:
A. Increase Award B. Decrease Award C. Increase Duration
Private Non-profit (SOl(c)) or
D. Decrease Duration other (specify):
Public Agency / Private Non-profit
i 9. Name of Federal Agency:
U.S. Department of Housing and Urban Development
10. Catalog of Federal Domestic Assistance Number. 111. Descriptive Title of Applicant's Project: The City of Lubbock HOPE 3
1 4 2 4 Q lHorneownership Program will increase hatteawnership oppor—
T"e:HOPE 3 Program tunities for persons of law to moderate incom. Federally
repossessed and vacant houses will be purchased and sold
1with the help of 203 K to potential homeowners at afford—
t2. Ands Affected by Projed (cities, counties, States, etc.): i
able prices. Mouses will be donated by the City of
City of Lubbock,Lubbock for this program.
13. Proposed project: 14. Congressional Moulds of -
Start Date Ending Date , s. Applicant b. Project
Oct. 1995 Se t. 1995 i 19
15. Estimated FwWing: 16. I. Application Subpct to Review by State Executtvs Order 12372 Prowess?
a. Yes This preappticatorvapplicatan was made available to the
a. Federal ti 1,000,000 .00 State Executive Order 12372 Process for review on:
IL Applicant
c Sims
Date:
b. No ® Program is not covered by E.O. 12372
or 0 Program has not been selected by State for mvlew.
17. is the Appdcant Iiallnquert on Any Federal Debt?
d. Local :stlft
;r i:: ..: ::, • Yes If 'Yes,' explam below or attach an explarution No
e. Other
f. Program Income
9-
. To the best oljny im?wl lief, all data in this application/pwapplication are we and correct, the document has been duly
thodzed by tW Aventingof 1K avv1icant_and—tfi—e3ij)pficant will comply with the attached assurances if the assistance is awarded.
a z Repre rative b. Title c. Telephone Number
Da 'd R ton r 806-767-2009
d. siprtan{e of �utfmriz�Rep earn ,jrr. ( _ • April Signed
13, 1995
Previous Edrdard Not Usable v
Authorized for Local Reproduction
APPROVED AS COMM: Doug Goodman
Managing Director
ge 84 knm SF-t24 (4192)
Pa
Prescribed by OMB Chufar A-102
APPROVED AS TO FORM:
/ Lin Chamales
Asst. City Attorney
kWructions for the SF-424
This is a standard form used by applicants as a required
fa=heet for preapplications and applications submitted for
Federal assistance. It will be used by Federal agencies to obtain
applicant certification that States which have established a
review and comment procedure in response to executive Order
12372 and have selected the program to be included in their
process, have been given an opportunity to review the
applicant's submission.
Item 1.Self-explanatory.
Item 2. Date application submitted to Federal agency (or State
if applicable) and applicant's control number (if appli-
cable).
Item 3.State use only (if applicable).
Item 4.If this application is to continue or revise an existing
award. enter present Federal identifier number. If for
a new project, leave blank.
Item 5.Legal name of applicant, name of primary organiza-
tional unit which will undertake the assistance activ-
ity, complete address of the applicant, and name and
telephone number and facsimile number of the person
to contact on matters related to this application.
Item 6.Enter Employer Identification Number (EIN) as as-
signed by the Internal Revenue Service.
Item 7.Enter the appropriate letter in the space provided.
Item 8.Check appropriate box and enter appropriate letter(s)
in the space(s) provided:
• "New" means a new assistance award.
• "Continuation" means an extension for an additional
funding budget period for a project with a projected
completion date.
• "Revision" means any ' change in the Federal
Government's financial obligation or contingent ti-
abdity from an existing obligation.
Item 9.Name of Federal agency from which assistance is
being requested with this application.
Item 10. Use the Catalog of Federal Domestic Assistance
number and title of the program under which assis-
tance is requested.
Item 11. Enter a brief descriptive title of the project. If more
than one program is involved, you should append an
explanation on a separate sheet. If appropriate (e.g.,
construction or real property projects), attach a map
showing project location. For preapplications, use a
separate sheet to provide a summary description of this
project.
Item 12. List the local jurisdiction(s) to be served by the
project.
Item 13. Self-explanatory.
Item 14. List the applicant's Congressional District and any
Districts) affected by the program or project.
Item 15. Not applicable.
Item 16. Applicants should contact the State Single Point of
Contact (S POC) for Federal Executive Order 12372 to
determine whether the application is subject to the
State intergovernmental review process.
Item 17. This question applies to the applicant organization.
not the person who signs as the authorized representa-
tive. Categories of debt include delinquent audit disal-
lowances, loans and taxes.
Item 18. To be signed by the authorized representative of the
applicant. A copy of the governing body's authoriza-
tion for you to sign this application as official represen-
tative must be on file in the applicant's office. (Certain
Federal agenc ies may requ ire that this authorization be
submitted as part of the application-)
P vkxn Edutiom Not Usable roan SF4424 (4a4
Auduidaod for Local Reproduction Pmsaibed by OMB Circular A-102