HomeMy WebLinkAboutResolution - 4239 - Grant Application - HUD - HOPE 3 Homeownership Program - 08_26_1993Resolution No. 4239
August 26, 1993
Item #38
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 year 1993 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 $572,200 from:
1. The donation of City owned houses totalling $332,720; and
2. The carry-over match from the 1992 HOPE Program in the
amount of $154,280.
3. Community Development Block Grant 5% Cash Match of
$85,200.
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
ATTEST:
�tty o n n, City Secretary
APPROVED AS TO CONTENT:
a�__dy Ogle ety
DevelopmerffAdministrator
APPROVED AS TO FORM:
. snotts, jr., i ri a i Attbney
LLC:dw/agenda-D1/H0PE3.res
rev. August 18, 1993
OMB Approval No. 034e-o043
AF PLIC;A 1 1UN rVH
r DAn wlwrmo
Apy,cant Id.nittren
FEDERAL ASSISTANCE
9-1-93
N/A
1. TVP1 OF SUWISSCOL
3, DATE RECEIVED SY STATE
State Application wonlrlter
/lodcatan Plwapplrulgn
N/A
p (;orlstrtfClron p Conotructmon
4. DATE RECErVEO SY FEDERAL AOENtY
FeOeraf Identrl,ar
N/A
fdOnJ",.GnT1.lK101 D F+onLa+st+tclwn
S. &PP1 rAN`T INFOAIUATIOVII
Legal Noma:
Orparxzal*nal Unit.
City of Lubbock
Housing &-Community Development Dept.
Adorooa (give city. county. state, and Zip code).
Name and telep►+one nvmbe, of the cartoon to be contacted on martens #nwvv"
P. 0. Box 2000
this app,utton (give "a code)
1625 -lath St.
Mr. Juan A. Reyes
Lubbock; TX 79457
(806) 767-2294
f
L E'NOLOVIER IDEWTVICJITION MUkS R MINI:
1. TYPE OF APPLICAMI: tenter ApproOnale letter in DO+)
=I 1 1 1 j
A Slate H Vndepenoont School Dist
7 t 5— 0 0 5 9 0
B Can,, I Slate Controlled InatrWlrbn of Hgtw Later"
C IAuntctpal J PrMte L►rwwnsfly
L 1VPE OF APPIL CAT101t
D Townsfvp K. Indian Trot
IR New ❑ Continuation ❑ Revision
E Interstate L. Indvtdwt
F Intenmuntcrpal 4 Profit Orparnzatfcn
p Revision. enter apotoprfale lettir(s) in bodes) p p
G Special Disliecl N Oth« (Specify)
A Increase Award B Decease Award C Increase Duralton
D Dwcreatw Duration Otter (specity):
s. NAME OF FEDERAL AOENCY:
Department of Housing & Urban Development
DOMESTIC 1 4
1S uSi G 4To
11. DESCRIPTIVE TITLE OF APPLICAM S PROJECT:
i ANCE NUM EK. e
The City of Lubbock HOPE 3 Homeownership Program will
TIME.
increase homeownership opportunities for persons of
HOPE 3 Program
low to moderate income. Federally repossessed and vacant
houses will be purchased and sold to potential htxne-
12. ARL S AFFECTED SY PROJECT (c)bei. count,eS. slates. erc.):
owners at affordable prices. Houses will be donated
by the City for use in the Program.
City of Lubbock
12 PROPOSED PROJECT
14. CONGRESSIONAL 04STRICTS OF
Stan Dale
E.ndfnp Dale
a Ap 4.iinl b Protect
June 1994
May 1997
19th 19th
IS. ESTIMATED FUNDING
It. IS APPLICATION SUIJECT TO REVIEW SY STATE EXECUTIVE ORDER 12212 PROCESS?
a YES THIS PREAPPLICAT1ON.APPLICATION WAS MADE AVAILABLE TO THE
a Feomaf
: .00
1,710,000
STATE EXECUTIVE ORDER 12372 PROCESS FOR REVIEW ON
DATE
b Applicant
i •00
c State
t .00
b NO. OK PROGRAM IS NOT COVERED By E O 12372
OR PROGRAIA KAS NOT BEEN SELECTED BY STATE FOR REVIEW
d Lout
1 487,000 .00
e d+wr
= .00
85,200
f Prowarn Irnconr
S .00
11. it THE A►PUCANT OCLINOUEWT ON ANY FEDERAL DEST7
L-ias M 'Yes.' attach on "analron. No
a TOTAL
s .00
2,282,200
19. TO THE IIEST OF MY RNOWLEDOE AND IIELIEF. ALL DATA IN THIS AP►LICATIONAPREAP►LICATION ARE TRUE AND CORRECT, THE DOCUMENT HAS SEEN DULY
AVTHORt2EO SY THE GOVERN c THE A►►MANT AND THE APPLICANT WILL COMPLY WITH THE ATTACHED ASSURANCES IF THE ASSISTANCE is AWARDED
a Typed Nanne of Aulhottzed Rwproswntatrve
b Trite
c Tetaphone nvntbe,
David R. Langston
6 Srpnatufs of Autrortztld Repr nt ^
e Date Srpned
08/26/93
errbyl lrpnf NOt Utacte
APPROVED AS ill CONMi rr :
Sandy Ogletrfe, 11 t ing & C.D. Adnun.
fenoa,d am 424 f cv a•B..
APPROVED AS TO FORM: p,escrtbee by OV-3 A•IC?
Linda Chamales, Asst. City Attorney
INSTRUCTIONS FOR THE SF 424
This is a standard form used by applicants as a required facesheet for pre applications 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: Entry: Item: Entry:
* 1. Self-explanatory. 12. List only the largest political entities affected
2. Date application submitted to Federal agency (or (e.g., State, counties, cities).
Stattif applicable) & applicant's control number
13. Self-explanatory.
(if applicable).
3. State use only (if applicable).
4. if this application is to continue or revise an
existing award, enter present Federal identifier
number. If for a new project, leave blank.
5. Legal name of applicant, name of primary
organizational unit which will undertake the
assistance activity, complete address of the
applicant, and name and telephone number of the
person to contact on matters related to this
application.
6. Enter Employer Identification Number (EII\) as
assigned by the Internal Revenue Service.
7. Enter the appropriate letter in the space
provided.
* S. 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 liability from an existing
obligation.
9. Name of Federal agency from which assistance is
being requested with this application.
*10. Use the Catalog of Federal Domestic Assistance
number and title of the program under which
assistance is requested.
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.
14. List the applicant's Congressional District and
any District(s) affected by the program or project.
15. Amount requested or to be contributed during
the first funding/budget period by each
contributor. Value of in -kind contributions
should be included on appropriate lines as
applicable. If the action will result in a dollar
change to an existing award, indicate only the
amount of the change. For decreases, enclose the
amounts in parentheses. If both basic and
supplemental amounts are included, show
breakdown on an attached sheet. For multiple
program funding, use totals and show breakdown
using same categories as item 1 S.
* 16. Applicants should contact the State Single Point
of Contact (SPOC) for Federal Executive Order
12372 to determine whether the application is
subject to the State intergovernmental review
process.
17. This question applies to the applicant organi-
zation, not the person who signs as the
authorized representative. Categories of debt
include delinquent audit disallowances, loans
and taxes.
18. To be signed by the authorized representative of
the applicant. A copy of the governing body's
authorization for you to sign this application as
ofricial representative must be on file in the
applicant's office. (Certain Federal agencies may
require that this authorization be submitted as
part of the application.)
* NOTE: Items pre —completed by HUD and not requiring applicant response are marked
above With an asterisk.
SF 424 (REV 4.881 Bach
Table of Contents
Applicant Name: city of Lubbock
(Insert appropriate page number in blanks below)
Page: 1 Standard Form 424
2 Table of Contents
3 Applicant Certifications
4 Certification of Consistency with the CHAS
S Certification Concerning the Use of Federal Funds for Lobbying
6-12
Exhibit 1:
General Information
13-21
Exhibit 2:
Applicant Information
22-26
Exhibit 3:
Unit Information
27-32
Exhibit 4:
Homebuyer Information
33
Exhibit 5:
Program Schedule
34
Exhibit 6:
Program Budget
35-38
Exhibit 6A:
Budget Line Item Descriptions
39-40
Exhibit 7:
Evidence of Match Contributions
41-43
Exhibit 8:
Plan for Use of Sale and Resale Proceeds/Additional Resale Restrictions
44 49
Exhibit 9:
Evidence of Public/Private Support
0
Exhibit 10:
Minority and Women -Owned Business Enterprises
Page form HUD-400" (7/93)
(1) Taking appropriate personnel action against such
an employee, up to and including termination, consistent
with the requirements of the Rehabilitation Act of 1973, as
amended; or
(2) ReWmgsuchwVioyeetoparbcpatesatisfactonlyin
a drug abuse assistance or rehabilitation program approved for
such purposes by a Federal, State, or local health, law
enforcement, or other appropriate agency;
g. Making a good faith effort to continue to maintain
a drug -free workplace through implementation of paragraphs
a., b., c., d., e„ 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 carved out by employees in
several departments or offices, more than one location
may need 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 the specific grant have been expended.
Print or
10. The applicant and its principals (a) are not presently
debarred, suspended, proposed for debarment, declared
inefigible, or invokintanly excluded from covered transactions
(see 24 CFR 24,110) by any Federal department or
agency, (b) have not within a three-year period preceding
this application been convicted of or had a civil judgment
rendered against them for commission of embezzlement,
theft, forgery, bribery, falsification ordestruction of records,
making false statement 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 offenses enumerated in
(b) of this certification; and (d) have not within a three year
period preceding this application had one or more public
transactions (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
attach an explanation behind this page.
11. The applicant shall comply with all applicable program
requirements described in the HOPE 3 regulations.
(7 7`- , „ I 08/26/93
Page I -__V tom HUD-400" (7/93)
Applicant Certifications
(Submit a signed copy of this form with the application)
Assurances and certifications are hereby provided that:
1. The applicant will comply with the requirements of the
Flood Disaster Protection Act of 1973 (42 U.S.C. 4001-4128)
and the Coastal Barrier Resources Act (16 U.S.C. 3601).
2. The applicant assures that it will comply with the
environmental laws and authorities at 24 CFR 50.4 and will
01 supply HUD with information necessary for it to perform
any necessary environmental review of each property;
(ii) carryout mitigating measures required by HUD or select
alternate eligible property; and (iii) not acquire or otherwise
carry out any program activities with respect to any eligible
property until HUD approval is received.
3. The applicant will comply with the requirements of the
Fair Housing Act (42 U.S.C. 3601-19) and implementing
regulations at 24 CFR Part 100, Part 109, and Part 110;
Executive Order 11063 (Equal Opportunity in Housing)
and implementing regulations at 24 CFR Part 107; and Tdle
VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d)
(Nondiscrimination in Federally Assisted Programs) and
implementing regulations issued at 24 C FR Part 1, and will
affirmatively further fair housing.
Indian tubes and Indian Housing Authorities (IHAs) will
comply with the requirements of the Indian Civil Rights Act
(25 U.S.C.1301 et seq.) when applicable. This Ad applies
to tubes when they exercise their powers of self-government
and is applicable in all cases when an IHA has been
established by exercise of such powers. In the case of
Indian tribes and IHAs, the applicant will comply with the
requirements of the Indian Self -Determination and Education
Assistance Ad (see 25 U.S.C. 450e(b); 55 FR 24752-53 and
24755 (June 18,1990), revising 24 CFR 905.165(a) and
(b) and 905.360).
4. The applicant will comply with the Age Discrimination
Act of 1975 (42 U.S.C. 6101-07) and in-piement'ng regulations
at 24 CFR Part 146, which prohibit discrimination because of
age in programs and activities receiving Federal financial
assistance.
S. The applicant will comply with Section 504 of the
Rehabilitation Ad of 1973 (29 U.S.C. 794), as amended,
and with implementing regulations at 24 C FR Part 8, which
prohibit discrimination based on handicap in Federally -
assisted and conducted programs and activities.
6. The applicant will comply with Sedan 3 of the Housing
and Urban Development Ad of 1968 (12 U.S.C. 1701u)
(Employment Opportunities for Lower Income Persons in
Connection With Assisted Projects), and with implementing
regulations at 24 CFR Part 135.
7. The applicant will comply with the requirements of
Executive Order 11246 (Equal Employment Opportunity)
and the regulations issued under the Order at 41 CFR
Chapter 60.
8. The applicant will comply with Executive Orders 11625,
12432, and 12138, which state that program participants
shall take affirmative action to encourage participation by
minority- and women -owned business enterprises.
9. The applicant will provide drug -free workplaces in
accordance with the Drug -Free Workplace Act of 1988
(41 U.S.C. 701) by:
a. Publishing a statement notifying employees that
the unlawful manufacture, distribution, dispensing,
possession, or use of a controlled substance is prohibited
in the grantee's workplace and specifying the actions that
will be taken against employees for violation of such
prohibition;
b. Establishing an ongoing drug -free awareness
program to inform employees about:
(1) The dangers of drug abuse in the workplace;
(2) The grantee's 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 errpbyees
for drug abuse violations occurring in the waiptace.
c. Making a 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 has
designated a central point for the receipt of such notices.
Notice shall include the identification numbers) of each
affected grant;
f. Taking one of the following actions within 30
calendar days of receiving notice under subparagraph d. (2),
with respect to any employee who is so convicted:
Page form HUD-40ON (7/93)
CERTIFICATION
The City of Lubbock, Texas certifies that the proposed activities
for HOPE 3 are consistent with its Comprehensive Housing
Affordability Strategy (CHAS) now being submitted to the U. S.
Department of Housing & Redevelopment (HUD) for approval.
ATTEST:
C�"-
gettyU Yohnsdn
City Secretary
August 26, 1993
DATE
4
Certification Concerning Use of Federal Funds for Lobbying
(Note: This certification is not required from Indian Tribes or Indian Housing Authorities.)
I onsen name of person who apes below) David R. Langston , authorized official of
onsen name of feed applicant) the City of L u b o c k
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,
oran employee of a Memberof Congress in connection with this grant, the undersigned shall complete and submit Standard
Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.
(3) The undersigned shall require that the language of this certification be included in the award documents for all
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 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 not more than $100,000 for each such failure.
Applicant's Chief Executive Officer
(or auft►orized representative): N_ v i d R. Lns t o n
Ma
Signature
Date V August 26, 1993
Page form HUD40086 (7H3)
Certification of Consistency with the
Comprehensive Housing Affordability Strategy (CHAS)
(Note: This certification is not required from Indian Tribes, Indian Housing Authorities (IHAs), orthe Insular Areas of Guam,
the U.S. Virgin Islands, American Samoa and the Northern Mariana Islands proposing a program in areas under their
jurisdiction that do not require a CHAS or abbreviated CHAS.)
The applicant must provide a certification signed by the public official responsible for submitting the CHAS, or his or her
authorized representative, of each unit of general local government or, if applicable, State within which the program is
located stating that the proposed activities are consistent with the full or abbreviated CHAS for the jurisdiction(s) in which
the proposed program will be located, as further described below. This certification should be attached following the
Applicant Certifications.
Instructions for Obtaining a CHAS Certification (Refer to the NOFA for a more detailed description of requirements)
1. The certification must be obtained from the unit of general local government if the program will be located in a unit of
general local government that a) is required to have a full CHAS; or b) is authorized to use an abbreviated CHAS and is
applying forthe same program as the applicant pursuant to the same NOFA (and therefore has or will have an abbreviated
CHAS for the fiscal year for that program).
2. If the program will not be located in a unit of general local government described in paragraph 1 above, the certification
may be obtained from the State or, if the program will be located in a unit of general local government authorized to use
an abbreviated CHAS, from the unit of general local government if it is willing to prepare such an abbreviated CHAS.
3. The certification of consistency shall be made with respect to the jurisdiction's full CHAS that contains an annual plan
for the same Federal fiscal year in which the application is due. A jurisdiction's certification that an application is consistent
with its abbreviated CHAS means that the required contents of the abbreviated CHAS for the same fiscal year cover the
program for which the application is submitted.
Recommended form of certification:
1. The applicant should submit the following certification if it is proposing a program in a jurisdiction(s)
that is (a) required to submit a CHAS or an abbreviated CHAS or (b) not required to submit a CHAS
or an abbreviated CHAS but has done so in order to apply to HUD for funds under one or more
programs subject to CHAS requirements, and In either case, the CHAS or an abbreviated CHAS
has been approved by HUD:
Note: Applicants should consult the NOFA for limited circumstances under which the
following certification may apply:
2. (a) The applicant should submit the following certification if it is proposing a program in a
jurisdiction(s) that is not required to submit a CHAS or an abbreviated CHAS but has done so in
order to apply to HU D for funds under one or more programs subject to CHAS requirements and the
CHAS or an abbreviated CHAS has been submitted to, but not yet approved by, HUD:
(b) Applicants submitting the form of certification described in item 2.(a) must submit the following
certification to HUD as soon as HUD approves the CHAS or abbreviated CHAS referenced in (a)
above, but prior to the HOPE 3 grant approval:
Page form HUD40086 (7/93)
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
OMB Approval No 25% 0128 (exp 05/31/96)
Application for
HOPE 3 Implementation Grant
form HUD-40086 (7/93)
HOPE for Homeownership of Single Family Homes Program (HOPE 3)
Implementation Grant
Acknowledgement of Application Receipt
To Be Completed by the Applicant:
Provide applicant name and address in the box below in order for HUD to acknowledge receipt of the application by the
application deadline:
City of Lubbock
Housing & Community Development Dept.
P. 0. Box 2000
Lubbock, TX 79457
To Be completed by HUD:
Your application was received by the appropriate HUD Office by the application deadline and will be considered
for funding. In accordance with Section 103 of the Department of Housing and Urban Development Reform Act
of 1989, no information will be released by HUD regarding the relative standing of any application until funding
announcements are made.
Your application was not received by HUD by the application deadline; therefore, your application will not receive
further consideration in this funding round. Your application is enclosed.
M.
(Please refer to fis program number in any hither correspondence with HUD about this grant application.)
Number
Page C� form HUD-40WG (7/93)
Exhibit 1: General Information
A. Summary. Attach no more than a 3 page executive summary of the homeownership program being proposed. The
description should include the following information:
o the jurisdiction(s) in which the program is proposed,
o the proposed amount of HOPE 3 grant, local match, other contributions, and total program cost,
o the major activities being proposed,
o basic information on the program design (who will acquire and/or rehabilitate eligible properties, how homebuyer
purchases will be financed, etc.),
o the number of homebuyers expected to be directly assisted with HOPE 3 grant and local match funds, and
o the number of additional homebuyers expected to be assisted through the use of sale and resale proceeds, 0 any.
B. Program Neighborhoods. Attach the following materials:
o an 8vz x 11" map(s) indicating the boundaries of the neighborhood(s) in which the program is proposed,
o a list of census tracts included in each neighborhood, and
o a fist of the postal zip codes for each neighborhood.
C. Neighborhood Characteristics. Attach a description of the racial and ethnic characteristics of the residents of the
neighborhood(s) in which the program is proposed. (Section 572.405(f))
D. Desegregation Statement. Attach the following information:
1. Provide a statement as to whether or not a desegregation order, agreement, or plan that applies to the applicant
is in effect or known to the applicant to be under consideration.
2. If such an order, agreement, or plan is in effect, or known to the applicant to be under consideration, attach a
statement that includes each of the following:
(a) state whether or not the applicant is in violation of the order, agreement, or plan,
(b) describe the circumstances of the violations, and
(c) describe any potential impact the proposed homeownership program may have on implementing the existing
or pending order, agreement, or plan.
Page C� forth HUD-400M (7,93)
EXHIBIT I
GENERAL INFORMATION
A. Summary
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 80% of the median. Special preference and
consideration will be given to applicants currently residing in public
housing who meet the underwriting criteria for the HOPE 3 Program as
prescribed in the regulations. Even though the City of Lubbock's program
does not anticipate displacement, should it occur, displaced homeowners
who meet the program underwriting criteria will also be given first
preference. In addition, second preference will be given otherwise
qualified eligible families who have completed participation in an
economic self-sufficiency program.
The program will provide mortgage and interest subsidies if needed, in
order to make the housing affordable and to comply with the provisions
on affordability in the regulations. The number of homebuyers to be
assisted will be thirty-six, twenty-nine financed through HOPE 3, one
from RTC and six units which are being donated by the City for use in
the HOPE 3 Homeownership program. The program jurisdiction will be the
City of Lubbock and it will be carried out City wide.
The majority of the City of Lubbock HOPE 3 program would consist of the
purchase and resale of houses to qualified applicants. The houses under
this component will be sold as -is. The rehabilitation of the property
will be done by the eligible buyer utilizing partial funding for the
rehabilitation out of the HOPE 3 grant and the City's existing CDBG
Below Market Rate Interest Loan /No Interest Deferred Payment
Rehabilitation Loan. All health and safety repairs would have to be
completed prior to move -in. If approved, the HOPE 3 Homeownership
Program will be advertised in the Lubbock Avalanche Journal (a newspaper
of local circulation) as well local minority newspapers. The program
criteria for homebuyer selection will be announced as well as dates for
pre -homeownership counseling and training classes. Applications will be
taken on a first -come first -served basis.
Six houses will be donated by the City for use in the program. These
houses were acquired with City funds for the expansion of Indiana Avenue
from 34th to 50th Streets. The houses will be moved from the right-of-
way to affordable housing neighborhoods in the city and rehabilitated
for resale. The six houses to be donated by the City will be rehabbed
after setting them on a lot with HOPE 3 funds.
The proposal is to assist thirty-six families with closing costs, the
estimate of which is $30,000.00. Replacement reserves have been
budgeted at $40,000.00, Counselling and Training at $10,000.00, and
Recipient Training at $7,000.00, Homebuyer Outreach and Selection at
$6,400.00, Property Management and Holding Costs at $25,000.00.
The HOPE 3 sale of properties component will assist thirty families and
the estimated cost for 29 houses with one being donated will be
approximately $870,000.00 or $30,000.00 a piece.
All thirty-six houses in the program will receive a participation from
HOPE 3 funds for rehabilitation and the amount budgeted for
rehabilitation is $550,000.00.
It is also anticipated that to complete these program activities the
City of Lubbock would need 1 Rehabilitation Coordinator, 1 Loan
Processor, 1 Loan Officer, and 4 Rehabilitation Housing Inspectors. As
described in the plan for use of sale and resale proceeds, the number of
additional homebuyers expected to be assisted through the use of sale
and resale proceeds would be three (annually).
As shown in the attached chart, 1.3 % of the City of Lubbock population
is Asian/Indian, 22% is Hispanic, 8.7% is African American and 68% is
Anglo. The total population of Lubbock is 186,206.
2
HOPE III TARGET AREA (CITY WIDE)
CITY OF LUBBOCK
CENSUS TRACTS
104,01
I
1 PARTIAL •
I
I
2.01 etur srptwr
7
I
102 I-----
4.05 ursuw�srJ `z"sr, � PARTIAL w �
5 EAswtisr
104.02 4.04 4.02 4.03
I
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NORTH
r•2
1990 Ethnic Breakdown
by Percentage
`r-
O C'
Total Population - 186.206
Asian/Indian
10
Pafl1C"
22
African American
;3
0
SHALLOWATER
79363
REESE
FORCE BASE
79489
C
POSTAL ZIP CODE MAP
LUBBOCK, TEXAS
NEW DEAL
79350
URSUUNE ST a
72415 z
<
z
70418
4TH ST c1f, _
79410 79401
19TH ST 1
34TH ST
> 79407 , 79411 or
< 79412
,,�aF`�� 79414 19413 `
289 LOOP EVEN 3S
289 LOOP (ODD)
WOUFORTH
98TH ST 79424 cc 79423
79382 0 114TH ST
79403
c
19TH ST
79403
P:LJ
1DALOU
79329
$LATON
79384
11
D. Desegregation Statement.
The City of Lubbock is not under a desegregation order or agreement or
plan.
12
Exhibit 2: Applicant Information
A. Applicant Identification.
Attach the followN information:
1. Identify the lead applicant who will have legal responsibility as the recipient and will execute the grant agreement.
2. "a lead applicant Is applying in cooperation with any other en1hy(ies), identify the other entdy(ies). (A public agency is required
to identify a private nonprofit organization as a cooperating entity.)
3. Any lead applicant who has identified a cooperating entity in Item A-2 above (including any public agency that is the lead
applicant) must attach a copy of the executed Memorandum of Agreement (MOA) describing the roles each entity will have
in implementing the program.
B. Qualifications and Experience of Applicant. (kxlude experience of any 000peratiN entity(res) identified in Item A-2 above.)
Attach the following information:
1. Provide evidence of the administrative capability of the applicant to develop and carry out the proposed homeownership
program in a reasonable time and in a successful manner. Include in this discussion the past experience of the lead applicant
and the cooperating entity(les), if any, in acquisition, rehabilitation, counseling and training, and/or managing homeownership
programs or other affordable housing programs, as it relates to each participant's role in the proposed homeownership
program. (Section 572.320(a)(2))
2. Provide evidence of the capability of the applicant to handle financial resources including any prior relevant financial
management experience. (Section 572.320(a)(1))
3. Describe any unresolved serious problems orany outstanding audit findings involving the applicant (including anycooperating
entity(ies)) and describe how these problems or findings are being resolved. (Section 572.320(a)(2))
4. Submit the auditor's summary of a certified independent audit report covering the lead applicant's activities prepared within
the last 2 years, it available. If none is available, provide a certification from a certified public accountant who has examined
the current internal management controls or is establishing those systems for a new entity.
S. If the applicant was the recipient of, or cooperating entity in, a FY 1992 HOPE 3 Planning or Implementation Grant, describe
the extent of progress that has been made in carrying out the program. Specifically include:
(a) the percentage of grant funds expended as of the date of this application;
(b) for Implementation grantees, the percentage of units to be used in the program (see Exhibit 3 of the FY 1992 HOPE 3
application) that have actually been acquired, rehabilitated, and/or sold (or put under lease/sale contract) to homebuyers;
and
(c) an explanation of any problems encountered, how they were (are) being dealt with, and how the problems can be
expected to affect the program being proposed in this application.
C. Private Nonprofit Organizations Only. Private nonprofit organizations either applying as the lead applicant or participating
as the designated cooperating entity in a program in which a public agency is the lead applicant must attach the following
information:
1. alist of all board members (including names and titles) identifying those members who are private individuals acting in a private
capacity (as defined in Sedan 572.5 - private nonprofit organizations);
2. evidence of the IRS ruling providing tax exempt status under Section 501(c) of the IRS Code of 1986, as amended. (If the
applicant is a private nonprofit organization organized in the Commonwealth of Puerto Rico, submit a letter from the Treasury
Department of the Commonwealth of Puerto Rico evidencing that the organization has tax exempt status under Puerto Rico
law.)
3. a certification signed by an authorized representative of the organization in the following format that the organization has
a voluntary Board of Directors:
D. Cooperative Associations Only. Cooperative associations must 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.
Page form HUD-4000 (7/93)
EXHIBIT 2
APPLICANT INFORMATION
A. Applicant Identification
The City of Lubbock Housing and Community Development Staff will
administer the HOPE 3 Homeownership Program, and Lubbock Habitat for
Humanity Inc. will perform as the non-profit.
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 six years of existence, Lubbock Habitat for
Humanity has completed six houses and sold them to working poor Lubbock
families. Four of the six houses were new construction and the other two
were major rehabilitation projects. The houses are generally small
(1,000 to 1,200 square feet) and have no frills, but the quality of
construction is high. The six 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, a half-time executive director, was hired in January, 1992. On
the most recently completed house, 159 different volunteers worked at
least one shift. Financial support of the work comes from individuals,
churches, civic groups and grants. Currently Lubbock Habitat for
Humanity has 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.
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 the Habitat hopes to make for the up -building of communities
for years to come.
The administrative staff that will carry out the HOPE 3 Homeownership
Program will be one and the same as the Housing and Community
Development Staff of the City of Lubbock. There will be an
14
Administrator, a Rehabilitation Coordinator, four Housing Inspectors,
one Loan Officer and one Loan Processor.
B. Qualification and Experience of Applicant
The Administrative Staff of the Housing and Community Development
Department of the City has extensive experience in handling financial
resources. For example, the staff has administered a Housing
Rehabilitation Program for almost twenty years. Grants, as well as
below market interest rate loans, have been made. Also, the Housing and
C.D. staff has been an active participant in the HUD Section 312 Loan
Program, having participated in it for almost fifteen years. The City
has administered three years of Urban Homestead and has successfully
acquired and disposed of 34 properties with no defaults in that period.
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 loans and local lending
institutions make the loans and the homebuilders are committed to
building affordable housing (between $28,000 and $35,000) in virtually
untried low income areas of the city.
The Financial Control Procedures involve at the minimum four cross
checks when funds are requested and distributed. A Rehabilitation
Inspector normally initiates a Request for Payment and the
Rehabilitation Coordinator reviews and checks the request. The
Rehabilitation Coordinator submits the request to the Housing and C.D.
Bookkeeping section and the Bookkeeper reviews and checks the request
before passing it to the Administrator for approval. The Administrator
reviews and checks the request and it is sent to the Purchasing
Department for payment. The Purchasing Department reviews and checks the
request and cuts a check that goes back to the Bookkeeping Section. The
Bookkeeper checks the check for accuracy and records the check and the
inspector that initiated the request receives the check and signs for
receipt of the check.
The Housing and C.D. Staff administers two separate Homeownership
programs currently. The Joint Venture for Affordable Housing Program is
a new construction program that 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 our 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 us 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 contractors and they
shop for the best deal they can get. Once a builder and lot is
determined, the family is provided with their Mortgage Profile File that
15
HOPE HOMEOWNERSHIP PROGRAM
CITY OF LUBBOCK/LUBBOCK HABITAT FOR HUMANITY, INC.
MEMORANDUM OF AGREEMENT
Organizational Structure:
Housing & Community Development
Administrator Sandy Ogletree
Lubbock Habitat for Humanity, Inc. Dr. Pennington Vann
Responsibilities of Lubbock -Habitat -for Humanity, Inc.
Lubbock Habitat for Humanity, Inc. shall conduct a total of two (2) pre-
purchase counseling and training sessions for homebuyers and homeowners under
the HOPE 3 Homeownership Program, Phase I. Under Phase II of the HOPE 3
Homeownership Program, Lubbock Habitat for Humanity, Inc. shall be responsible
for a second set of two (2) pre -purchase counselling and training sessions.
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 and general rights and responsibilities of a
homeowner. Responsibilities include marketing the training sessions, keeping
attendance records and distribution of materials associated with HOPE 3
applications.
Responsibilities of the Housing & Community Development Department of the City
of Lubbock:
It shall be the responsibility of the Housing & Community Development
Department 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 agreed upon after the funding of the HOPE 3 Program application by the
Housing & Community Development Department of the City of Lubbock and Lubbock
Habitat for Humanity, Inc.
an y et a r. Pennington n
Housing & Communi y Development Acting Executivre Director
Administrator Lubbock Habitat for Humanity, Inc.
16
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 58 new
Affordable Houses have been built. This program has generated over $3
Million in new construction activity.
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. This first
group of homesteaders are two years away from receiving unconditional
ownership to their properties.
In order to insure that the Homesteaders have every advantage of
becoming successful homeowners, a series of Homeownership Nurturing
Classes are set up which we feel are very beneficial to new homeowners.
All Homesteaders are required to attend 4 of 1 two-hour classes. This
year's Nurturing Classes will include: 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 an FY 1992 HOPE 3
Implementation Grant. The total amount of the grant was $1,000,000.00
and 70% of these grant funds have been expended to date.
The City's Housing and Community Development Department facilitated the
homebuyer's direct purchase of 8 properties from HUD/FHA without the
City first acquiring the unit. Twenty-three (23) properties have been
acquired utilizing HOPE 3 grant funds and ten (10) properties have been
acquired by the City and donated for use in the 1992 HOPE 3 program. A
total of forty-one (41) properties have been made available through the
efforts of the HOPE 3 program. Of these, eight (8) have been sold to the
applicant and are being occupied by the applicant, the remaining thirty-
three (33) are under contract to the applicants and ten (10) of those
are currently being rehabbed.
Environmental and legal document problems were encountered during the
first year of the program, but it is our firm belief that those problems
have now been resolved and this HOPE program should flow even smoother.
C. Private Non -Profit Organization
17
LUBBOCK HABITAT FOR HUMANITY
2615 19TH STREET
P.O. BOX 209
LUBBOCK, TEXAS 79408
NAME ADDRESS POSITION
Ulrich Goebel 5717 71 st Street (424) President
JoAnn Greenhill 5702 1st Street (416) Secretary
Jim Hill P.O. Box 93287 (493)
Jim Machos
John Malone
Ann McGlynn
Dan Moore
Frank Phillips
Eddie Richardson
Penny Vann
Ted Zobeck
5424 78th (424)
3417 40th (413)
2817 22nd (410)
3610 38ths Street (413)
8709 Salem Ave.(424)
510 E. 23rd Street (404)
3809 57th Street (413)
8003 Wayne Ave. (424)
[NOTE: the position of Treasurer is currently open]
Vice President
Lubbock Habitat for Humanity, Inc. certifies that the members of the 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, or other entity.
W. Pennington Vann
W.. Pennington VanKj
Interim Executive Director Date
18
MABITAT
R HUMANITY
Affiliate President
Lubbock HFH
Box 209
Lubbock, TX 79408
Dear Affiliate President:
bulking houses in po&Kxship with God's people in
October 9, 1987
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 normally 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,
AI, " t ),
Robert T. Mayo
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19
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ComperotNr
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
20
an Kual opportunity employer
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&LlY brand
REPORT ON SUPPLEMENTARY INFORMATION -
SCHEDULE OF FEDERAL FINANCIAL ASSISTANCE
INDEPENDENT AUDITOR'S REPORT
The Honorable David R. Langston
Mayor of Lubbock
Members of City Council
City of Lubbock, Texas
We have audited the general purpose financial statements of the City of Lubbock, Texas,
for the year ended September 30, 1992, and have issued our report thereon dated December
310 1992. These general purpose financial statements are the responsibility of the City of
Lubbock, Texas management. Our responsibility is to express an opinion on these general
purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the general purpose financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the general purpose financial statements. An audit also includes assessing the
overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
Our audit was made for the purpose of forming an opinion on the general purpose financial
' statements of the City of Lubbock, Texas, taken as a whole. The accompanying schedules
of federal financial assistance, Community Service Block Grant Contract #612048, Energy
Crisis Intervention Program Contract #592048, Weatherization Assistance for Low -Income
Persons Contract #562048 and the Emergency Homeless Contract #661048, are presented
for purposes of additional analysis and are not a required part of the general purpose
' financial statements. The information in these schedules has been subjected to the auditing
procedures applied in the audit of the general purpose financial statements and, in our
opinion, is fairly presented in all material respects in relation to the general purpose
financial statements taken as a whole.
December 31, 1992
Lubbock, Texas
21
A.
EXHIBIT 4
HOMEBUYER INFORMATION
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 80% 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 13 will be female 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 10 White, 12 Black and 14 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 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 or disability. Specific steps to inform potential
applicants about the program are 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
Counseling and Training. 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 Housing
& C.D. Department 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 Meeting 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:
B.
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 Housing b C.D. Department with a paid
receipt for documentation for the files.
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 5 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 36 homes available for
selection by eligible homeowners with an estimated 14 alternates
being approved for a total of 50 families and individuals in the
Program. Considering some will be single parent households, it is
projected that the classes will train 75 to 85 individuals.
C.
3. The classes will be offered the first Tuesday of every month form
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 Habitat
for Humanity.
Financing for Homebuyer's Purchase
a. The average fair market value of the property at the time of sale
to the buyer will average $29,000.
b. The average sale price will be $26,100.
C. The average downpayment will be 3% of the purchase price, or
$783.00. 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 $26,100.
However, if necessary to keep the HOPE 3 homebuyers debt -to -
housing expense ratio within the 30% guideline, a HOPE 3 soft
second Promissory Note could be utilized.
e. The HOPE 3 properties will be rehabilitated in most cases through
the City of Lubbock's Housing b Community Development Department's
Residential Rehabilitation program. The average rehab cost will
be $20,000. The source of the loans will be through the Lubbock
Housing Finance Corporation with the City of Lubbock's Housing 3
Community Development Department administering and servicing the
loan.
f. Since the most it is intended to pay for a property is $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
utilized. Since the average cost of a property is projected at
$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.
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.
The Replacement Reserve will also be available for homeowners to tap
into, if necessary, for any major repairs which they may not be able to
afford.
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 City
of Lubbock staff will ensure that the homeowners are aware of these
exemptions.
Exhibit 5: Program Schedule
WW Nfllieet•nae. Provide tit ad*" for irlpienwsMMtg tit• proposed horneowrt•nhlp Program. Including ale Proposed major a ivitles (e.g., sogtriskion, rehabilitation. sale of property
to eNpCis �tami 'y � ; al HU D'� .�iaaitlon of�tlret pr Mom« in which n a�laq•ru�P for
each
needed s ai �iu�d� are plann•db begin andto be completed. Propartfes must bs tran:trnd
erring ownership Int•rests (which Inckidss execution of a Wass purdes•
agreernarM), submN a request and OWkation with this exhibit. (Section 572.115 (a)). AN actMW must be completed within a 48 month timeframe unless the applicant JUSOWs a WVW period
(of up to 12 addItimal months) and HUD spproves the request. (Section 572.210(@)
Use Time Line to kKflcate start (S) quarter and fb*h (i7 quarter of each major ectIvity
1 Year 2 Year 3 Year 4 Yefif S
ActW*y 10 20 1 30 40 1 10 20 1 30 40 1 10 20 1 30 40 1 10 20 1 30 40 1Cx 2Q' : 30.
P urchase Houses
Phase
P
4
Donated (louses
L
I'hase i
A
Ha: ebuye r Sani nos rs
I J
Counseling, Training
_
Phase i
I'I
Application Process
C,
Phase 1
Far.uly Selection
P
Phase 1
R
Maint./Sale of Properties
E
Rehab. Properties
P
Phase i
Purchase }louses
k
Phase 11
A
Doitatea Houses
T
Phase 11
I
J1a,iebuyer Seminars
0
Counseling h Training
Phase iI
I.
Application Process
P'nase 11
F-mai ly Selection
Phase 11
Maint./Sale of Properties
Rehab. Properties
Phase Ii
Pepe L
ronn Mf0400N (7lt13)
Exhibit 6: Program Budget
Complete the table below. (See Section 572.215 and 572.220)
Uses of Funds
(A)
HOPE 3 Funds
000's
(9)
Cash Matching
Contributions
000's
(C)
In -Kind Macrlvnp
Contributions
000's
(D)
tither Funds or
Contrlotrtions
000's
(E)
Total Program
000'3
1. Aoquisition by Applicant or Donation
of Eigible Properties to Applicant
$
870,000
$
$
487,000
$
$
1,357,000I
2_ Closing Costs on Properties at the time of
Acquisition by Applicant
S
$
$
S
$
3_ Fnartoial
(a) Interest Rals Reductions
$
$
$
$
i
Assistance b
Down P Assistance
$
$
$
$
$
for
c Costs
i 30,000
$
$
S
S 30 000
andrar
d Other •
$
$
$
$
$
Rehabiftatiort
4. Rehabilitation by Applicant of Eligible
Properties
$
550,000
$
$
$
$
550,000
5, Architectural 3 Engineering Work
$
$
$
$
$
6. Relocation of Residents of Eligible
Properties who Elect to Move
$
$
$
S
$
7. Temporary Relocation of Homebuyers
During Rehabiliftbon
$
$
$
$
$
8. Legal Fees (excluding dosing costs)
$
$
$
$
$
9. Replaosment Reserve
$ 40,000
$
$
$
i
40,000
10_ Homebuyer outreach and Selection
$ 6,400
$
$
$
$ 6,400
11. Couxtseling li Training of Homebuyers
$ 10,000
$
$
$
$
10,000
12_ Property Management and Holding Costs
$ 25,000
$
$
$
$ 25,000
13. Recipient Training
S 7,000
$
$
$
s 7,000
14_ Economic Development (sum of Col. A+ B
+ C plus amount received under plar"
grant cannot exceed $250,000)
$
$
$
$
$
IS.Olher Acdvilies Requiring HUD Approval
$
$
i
$
16.
(a) Waived, foregone or deterred taxas,
fees, and other charges
$
(b) On -site and o8-Ale nlraslrucuxe
$ 1,538,400
$
S
S
S
S
$ 487,000
s
o v
(c) Sweat equity
s
Donated makedais and
s
(e) other in-wnd mall ng con ebitkxhs
17. Activities funded from other sources not
included above (non -HOPE and non maldhthg )
$
$
$
18. Sub%AW (Unes 1 Urough 17)
$
$ 2,025,400
19. Administrable Cosh (Arse 19 A+ B+ C must
not exceed 15% of line 2oA; sum of line 19 B
+ C must riot exceed 7% of One 20A)
$
171,600
$
85,200
$
$
$
256, 800
20. Total Program Costs: (Sum of lines 18 + 19)
(Sum of Inm 2D8 + C must equal or exceed
33% of line 20 A)
$
1, 710)000
$
85,200
$
487,000
$
$
2,282,200
Exhibit 6A: Budget Line Item Descriptions
A. Description of Budget Entries
Attach a brief description of each activity line item shown on the Prog, am Budget in which an entry has been made (Exhibit 6, lines
1 through 17 and line 19) using the following procedures:
Describe each entry in each activity line item sequentially. Start with line 1, Column A and move across to line 1. Column D. Then
proceed to line 2, Column A and move across to line 2, Column D, and continue down the budget in that order.
When describing each entry sequentially, present the following information relative to each Column with an entry:
Column A: the specific uses of the HOPE 3 grant funds and how the amount was calculated.
ColumnB: the specific source (s) and the specific use(s) of any cash match contributions and the basis for the amount identified.
Column C: the specific in -kind contribution(s) being made and the basis for the value identified.
Column D: the specific source(s) and uses) of any other contributions.
Example:
Line 1: Column A: $600,000 in HOPE 3 grant funds will be used to purchase 15 properties from the FHA
and/or VA_ Requested amount is based on a review of recent appraisals of comparable units in the
neighborhoods proposed for the program which indicate an average price of $40,000 per unit.
Line 1: Column B: The City of xxxxx is contributing $200,000 in cash from the city's General Fund for use
in purchasing 5 additional properties from the FHA and/or the RTC. The basis for this amount is the city
council's resolution number xxxxxx committing this amount of contribution. (See Exhibit 7)
Line 1: Column C: The County of XXXX is donating 5 single-family properties to the program with a total
value of approximately $150,000. This value is based on the County's certification of average appraised
values of $30,000 per property using comparable properties to those that will be donated. (See Exhibit 7)
B. Special Instructions for Certain Entries
1. If an entry is made on Exhibit 6, line 6, Relocation of Residents of Eligible Properties who Elect to Move or line 7, Temporary
Relocation of Homebuyers During Rehabilitation, include in the description of the line item the following specific information:
a. the approximate number of families and individuals who are expected to choose to move,
b. the number of families and individuals who will be temporarily relocated during rehabilitation,
C. the estimated costs,
d. the source of funding, and
e. the organization that will carry out the relocation if different than the applicant.
2. If an entry is made in Exhibit 6, line 9, Replacement Reserve, include in the description of the line item, the following specific
information:
a. how will the reserve be used,
b. why is such a reserve necessary (See Section 572.125(b)),
c. demonstrate that the amount proposed for the reserve is reasonable, and
d. identity the entity that will administer the reserve at time of program closeout.
3. Ilan entry is made on Exhibit 6, line 14, Economic Development, include in the description of the line item the following specific
information: (Section 572.215(n))
a. the number of homebuyers estimated to be assisted,
b. the duration of the activity,
c. the approximate number of hours of training to be provided, and
d. the type of training to be provided, and the providers, if known.
4. If an entryis made on Exhibit 6, line 15, Other Activities Requiring HUD Approval, include in the description of each proposed
'other' activity a justification explaining why each other activity is necessary for the proposed homeownership program. HUD
will consider and approve or disapprove this activity during the application review period. (Section 572.215(p))
5. If an entry is made on Exhibit 6, line 16(e), Other In -Kind Matching Contributions, include the following information in the
description of each proposed "other" contribution:
a. an explanation of how the contribution will be used for an eligible HOPE 3 activity, and
b. a justification for the value of the contribution.
HUD will consider and approve or disapprove this contribution during the application review period. (Section 572.220(b)(8))
NOTE-. Applicants should carefully check for Internal consistency of all Information shown or described In Exhlblts 6 and
6A with all other exhibits, especially Exhibits 1, 3, and 7.
EXHIBIT 6A
BUDGET LINE ITEM DESCRIPTIONS
A. Description of Budget Entries
Line 1: Column A: $870,000.00 in HOPE 3 grant funds will be used
to purchase 29 houses from the FHA and/or VA.
The requested amount is based on the average
price of a three bedroom which as been set at
$30,000.00. The average price paid last year for
a three bedroom was $29,000.00.
Line 1: Column C: $487,000.00 in in -kind match contributions is
based on the fact that last year the City of
Lubbock over matched its grant by $154,280.00.
This amount was determined by taking appraised
value paid by the City on the ten houses donated
for use in the HOPE 3 program last year. In
addition, the City of Lubbock again this year is
donating residential property who's recent
appraised fair market value $332,729.00. The sum
of these two amounts is $487,000.00 (rounded
off).
Line 3: Column A: $30,000.00 of grant funds for homebuyer closing
costs is computed on the basis that 29 homes are
anticipated to be purchased utilizing HOPE 3
funds and the City will escrow taxes and
insurance. The average cost per house to cover
these expenses is $1,034.00. The average cost
for three months of escrowed taxes is $270.00,
and a homeowners insurance cost of $764.00 per
house is included (the resultant $30,000.00
figure is rounded off to the nearest hundred).
Line 4: Column A: $550,000.00 of rehabilitation costs are included
in the HOPE grant. This figure is made up of
$10,000.00 allotted for rehabilitation per house
for 30 houses and $41,666.66 for the six houses
to be donated by the City for use in the
program. The amount in the budget for these six
houses includes moving the houses to a new lot,
preparing the lot to have the house set on it,
roughing in all plumbing for the house and
completely rehabing the house once set. The
resultant amount was rounded upward to the
nearest hundred.
IL
Line 9: Column A: Replacement reserve has been budgeted at
$40,000.00. The Replacement Reserve account will
be used when a determination is made that a HOPE
3 homeowner has suffered damage or loss of any
major system, i.e. sewer line, water line,
electrical, water heater, heat and air etc. in
his/her house and the homeowner is unable to
afford the repairs. We have instituted a HOPE 3
Homeowner Mentor Program where a staff person is
assigned as a mentor to each HOPE 3 home
recipient, the recommendation for the use of
Replacement Reserve Funds will originate with
the family's assigned mentor. The need for this
Replacement Reserve account directly relates to
the financial status of the type of families we
are serving under HOPE. The average median
income of the families served under our 1992
HOPE program was 55% It is very difficult for
families in this income range to do costly
periodic maintenance on their different house
systems. Most of the properties put in the HOPE
program are between 35 to 40 years old and while
they will be rehabilitated, some repairs will
need to be done yearly, this fund is needed for
these repairs. If it is recognized that a HOPE
homeowner is in need of incurring substantial
repair costs and that this might put their
ability to maintain their monthly mortgage
payment, the family Mentor would recommend the
Replacement Reserve Fund be used instead. The
City's Replacement Reserve preserves the
integrity of the programs Long Term
Affordability.
Line 10: Column A: Homebuyer outreach budgeted at $6,400.00 will be
used for newspaper and radio advertisement
announcing the availability of the program.
Line 11: Column A: Counselling and Training of Homebuyers has been
budgeted at $10,000.00. This money will be used
by the participating non-profit for educational
materials, printing, etc. to facilitate a
minimum of eight (8) Counselling and Training
Sessions.
Line 12: Column A: Property management and Holding Costs have been
budgeted at $25,000.00. This would include
temporary insurance on the properties prior to
deeding and repairs and maintenance. An average
of $694.00 for 36 properties has been included.
37
Line 13: Column A: Recipient Training is budgeted at $7,000.00.
This includes travel for HUD training by the
recipient and the non-profit staff as well as
travel for training sought from other local
Jurisdictions implementing HOPE programs.
Line 19: Column A: The City of Lubbock is budgeting 10% or
$171,600.00 for administration, this line cannot
exceed 15%.
Line 19: Column B: The City of Lubbock is using $85,200.00 or 5%
Community Development Block Grant under
administration for match.
Exhibit 7: Evidence of Match Contributions
Attach documentation, as described below, which supports all match contributions shown on Exhibit 6 and described in
Exhibit 6A (except line 19: Administrative Costs -- see below).
A. Firm Match Commitments (except line 19)
All cash contributions shown in Exhibit 6, Column B and all real property contributions shown in Exhibit 6,
Column C, line 1, must be supported by evidence of the firm commitment by the donor of the cash and/or real
property. A firm commitment for either cash or real property contributions is defined as a commitment subject only
to HUD approval of the Implementation Grant and other conditions deemed necessary by HUD. (See NOFA.
Section II, C(8)(i))
B. Evidence of Other Match Commitments (except line 19)
All match commitments not described in Item A above and not included on line 19, must be supported by evidence
from the donor. Such evidence might include a resolution of the goveming body of the public agency or nonprofit
organization, a letter of commitment from the donor specifying the nature, quantity, and value of the contribution,
or similar evidence.
C. Special Instructions for Certain Contributions
1. Financial Assistance to Homebuyers (Column B, line 3): lender commitments to provide below market
interest rate (EMIR) mortgages should be valued in accordance with Section 572.220 (b)(1)(iv) at the discount rate
prescribed by HUD in the application packet and supported by a firm commitment from the lender(s) to provide
EMIR mortgages for HOPE 3 purchasers. Present Value calculations should be calculated according to the
Guidance Sheet in this application packet.
2. Donated Professional Services (Column C, lines 5, 8,11, and 13): Provide a commitment fromthe provider
of contributed professional services including the total number of hours being contributed multiplied by an hourly
rate based on the fair market value of the services (see Section 572.220 (b)(6)).
3. Waived or Deferred Taxes, Fees, or Other Charges (Column C, line 16(a)): Provide a commitment from
the entity waiving or forgiving taxes, fees, or other charges (e.g., governmental entity, lender).
4. Infrastructure Improvements (Column C, line 16(b)): Provide a commitment from the entity that will
undertake the infrastructure improvements, or that has completed the improvements no earlier than 12 months
prior to the deadline date set by HUD in the NOFA for application submission. Infrastructure improvements
expectedto benefit both HOPE 3 and non -HOPE 3 properties should be valued on a pro rata basis using an estimate
of anticipated benefit to HOPE 3 properties (see Section 572.220 (b)(5)).
5. Sweat Equity (Column C, line 16(c)): Provide a commitment from the applicant that the specified amount of
sweat equity will be provided. Include the total number of hours to be contributed muf ipilied by the $109mr rate
prescribed by the program regulations (Section 572.220(b)(6)).
6. Donated Materials and Supplies (Column C, line 16(d)): Provide a commitment from the donor of materials
and/or supplies that is based on the fair market value of the donation.
7. Administrative Costs (Column B & C, line 19): No evidence of cash contributions or in -kind contributions
related to administrative costs or services is required pursuant to Section 572.220(b)(2)(ii).
DRAFT
EXHIBIT 7
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 year 1993 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 $487,000 from:
1. The donation of City owned houses totalling $332,720; and
2. The carry-over match from the 1992 HOPE Program in the
amount of $154,280.
THAT said application is attached herewith and shall be spread
upon the minutes of the Council and shall constitute and be a part of
this Resolution as if fully copied herein in detail.
Passed by the City Council this day of , 1993.
ATTEST:
Betty Johnson
City Secretary
APPROVED AS TO CONTENT:
Sandy Ogletree, Housing & Coiim'unity
Development Administrator
APPROVED AS TO FORM:
Linda Chamales, Assistant
City Attorney
40
Exhibit 8: Plan for Use of Sale and Resale Proceeds
Additional Resale Restrictions
A. Attach a Plan for the Use of Sale and Resale Proceeds with the following components, as applicable:
1. An estimate of the amount of sale proceeds that are expected to be received by applicants who sell properties under
the program to the initial homebuyers (not applicable to programs designed to only financially facilitate the direct
purchase of properties by homebuyers from eligible sources).
2. An estimate of the amount of resale proceeds that homeowners may not retain upon sale of their property to a
subsequent homebuyer and which must be returned to the applicant (to be shared by the applicant and HUD). In
estimating resale proceeds that may not be retained by the homeowner, note that:
(a) All homebuyers who sell their property during the first six (6) years after purchase are restricted from receiving
any undue profit (See Section 572.130 (c) for computation of the proceeds retained by the homeowner).
(b) All homebuyers who are required to execute a promissory note and who sell their property during the first
twenty (20) years after purchase are restricted from receiving the full amount of the promissory note (Section
572.130 (d)).
(c) If the applicant proposes, and HUD approves, additional resale restrictions beyond those required by the
program regulations, further restrictions on proceeds the homeowner may retain upon resale may apply (see below).
3. A proposed budget and a description of the proposed use, by activity, for the total amount estimated by combining
items 1. and 2. above. All proposed uses must be for activities listed in Section 572.135 (a) and (b). If the applicant
wishes to propose to HUD other activities beyond those listed in the program regulations, describe the proposed
activities in detail. Note: The proposed budget and use of these funds must be consistent with all requirements
of Section 572.135(c).
4. Identification of the entity and its contact person by title, address, and phone number who will be responsible for
ensuring that:
(a) all sale and resale proceeds are collected,
(b) all sale and resale proceeds are used for approved purposes after grant closeout, and
(c) all amounts due HUD are promptly paid.
B. If an applicant has identified in its Plan for Use of Sale and Resale Proceeds the use of all or a portion of those proceeds
to create additional homeownership opportunities, provide the estimated total number of additional units expected to
be assisted (do not include any units already identified to be assisted with gram or match funds as shown in Exhibill 3).
Number of additional homeownership opportunities: 'three (3 )
C. Additional Resale Restrictions: If the applicant wishes to propose any additional resale restrictions for HUD approval
beyond those already required by HOPE 3 Program regulations, attach a description of the specific restrictions being
proposed and justify why they are necessary.
Note: HUD will not approve additional restrictions that it determines will substantially limit the ability of
homeowners to realize financial appreciation in the value of their homes. (Section 572.130 (e))
EXHIBIT 8
PLAN FOR USE OF SALE AND RESALE PROCEEDS ADDITIONAL RESALE RESTRICTIONS
The Plan of the City of Lubbock for the use of sales proceeds to eligible
families and amount families may not retain upon resale is simply to reinvest
those proceeds in the purchase of additional eligible housing resources to
continue providing affordable homeownership opportunities to those in need of
housing. Any other program income will likely be so invested.
The estimated amount of sale proceeds expected is $1,437,523.20 for 36 houses
at a three percent interest rate for 20 years. The estimated average sales
price of a house is $30,000.
The City of Lubbock does not anticipate any resale proceeds. Our past
experience in the Urban Homesteading program has shown us that families who
are afforded homeownership opportunities are very stable. Out of the 34 homes
we have awarded in the Urban Homesteading Program, no houses have turned over
either to foreclosure or resale. We are very hopeful that this trend will
continue.
A Sales Proceeds Plan has been developed as follows:
1. Sales proceeds will be carefully tracked to clearly distinguish
these funds from other types of program funds.
2. Assuming a twelve month period for 36 properties sales at an
average monthly payment of $166.38, the estimate of property sale
proceeds would be $71,876.16.
The total estimated and uncommitted sales proceeds would be $71,876.16. These
or any such proceeds will be spent to purchase additional houses.
The estimated number of additional units expected to be assisted with sale
proceeds within a 12 month period is approximately three (3).
The person responsible for insuring that the all sale and resale proceeds are
collected, used for approved purposes after grant closeout, and amounts due
HUD are repaid is:
Juan Antonio Reyes (Tony)
Rehabilitation & Redevelopment Coordinator
1625 13th Street, Room 107
Lubbock, Texas 79401
(806) 767-2294
42
BUDGET
Sale Proceeds $71,876.16
Purchase 3 Homes at $23,958.72 each
Resale Proceeds -0-
Total $71,876.16
Exhibit 9: Evidence of Public/Private Support
A. Attach any evidence of State or bcal government commitment to specifically support the proposed program. Such
commitments might include direct financial assistance, donation of properties, infrastructure improvements, supportive
services, or other tangbl � assistance.
B. Attach any evidence of private sector and/or nonprofit organization commitment to specifically support the proposed
program. Commitments from such groups as lenders, churches, neighborhood or community organizations,
professional organizations or others which might include financial assistance, supportive services, donation of labor
or materials, or other tangible assistance should be included.
Note: General letters of support which do not commit to providing specific tangible services or other
contributions are of minimal value In the rating of the application.
Exhibit 10: Minority and Women -owned Business Enterprises
A. Attach a description of the extent to which the applicant has used either Minority Business Enterprises (MBEs) or
Women -owned Business Enterprises (WBEs) in the past (Sections 572.320 (e) and 405(d)).
B. Attach a description of any specific affirmative steps the applicant will take to ensure that MBEs and/or WBEs have
an equal opportunity to compete and obtain contracts under the proposed program. Note: Indian Tribes or IHAs should
attach a description of the applicant's commitment to promote the use of minority business enterprises and women -
owned businesses consistent with, but not in derogation, of the Indian Setf-Determination and Education Assistance
Act.
EXHIBIT 9
EVIDENCE OF PUBLIC/PRIVATE SUPPORT
The City of Lubbock will support the HOPE 3 Homeownership Program
by providing services that are key to the success of the Program.
In addition, the City will provide the funds necessary to carry
out all appropriate property management activities.
In addition, local community based organizations have lent their
support to the Program. The Local League of United Latin
American Citizens, Catholic Family Services, Guadalupe Economic
Services, Inc. and the American G.I. Forum are all familiar with
the endeavors of the City in putting together this application
and they are very supportive of our efforts.
45
**** WEST TEXAS ****
HISPANIC NEWS
(906) 747.3467 P. O. BOX 24 LUBBOCK TEXAS 79409
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 Minority -Owned Business"
1W713th Stroet
Lubbock, Texas 7Q401
506-7 47-5Q51
DATE: July 28, 1993
P.O. Box 24
Lubbock, Texas 79408
Fax 806-747-3524
TO: U.S. Department of Housing and Urban Development
Office of Community Planning & Development
FROM: 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
47
' the 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:
(806) 762-3612
Your weekly community
newspaper with YOU,
the 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,
i16"Oeichar sod n
Co -Publisher
EPR:cf
48
Page 4, Southwest Digest, Thursday, July 29, 1993
Southwest Digest Supports
Hope 3 Implementation Grant
The Southwest Digest strongly supports the City of Lubbock-%
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 envroo-
ments for families. Clearly, there is a need for such a program in
our community.
The City of Lubbock has been instrurnental in several endeav-
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 service
announcements on Hope 3 program before its inception and
during the program.
Our newspaper considers this a worthwhile project to support
and hopes the U. S. Department of Housing and Urban Develop-
ment will look favorably at funding this needed project. One in
which we truly support! - f
49
EXHIBIT 10
MINORITY AND WOMEN -OWNED BUSINESS ENTERPRISES
The City of Lubbock has Affirmative Fair Contracting Policies in
effect and has continually done a better than average job of uti-
lizing Minority Business Enterprises and Women -Owned Businesses.
In the Housing and Community Development Rehabilitation and
Affordable Housing Redevelopment Programs and HOPE 3, 58 percent
of the contractors are Minority Business Enterprises.
Of the contractors, two enterprises are women owned. One of the
two is a minority business which specializes in handicap work,
which is an asset to our program.
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 one million dollars 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 Enterprise have an equal opportunity to compete and
obtain contracts under the proposed program by advertising in
various minority papers, discuss opportunities with contractors
not already approved, and recruit through word of mouth. The
City of Lubbock television station will produce a segment re-
questing contractors to apply to be approved for the HOPE 3
program and other programs.
50
Exhibit 4: Homebuyer Information
A. Plan for Selection of Eligible Families.
Attach a plan describing how the applicant will identify and select eligible families to participate in the program. The plan must include
the following specific components:
1. a description of the general composition of potential eligible families who may participate in the program (including residents
of occupied properties selected for use under the program) including family size and income, racial, ethnic, and gender
characteristics (Section 572.405(f));
2. an affirmative fair housing marketing strategy that includes: (not applicable to Indian Tribes or IHAs)
(a) identification of fan -lies in the housing market area who are least likely to apply for the program without special outreach; and
(b) a description of the outreach methods appropriate to these groups. (Section 572.405(e));
3. specif ic steps the applicant will use to inform potential applicants about the homeownership program andto solicit applications
from eligible families (Section 572.110(a)(1));
4. procedures for ensuring that families are creditworthy and have financial capacity to handle the anticipated costs of
homeownership (Section 572.110(a)(2));
5, equitable procedures for selection of eligible families (Section 572.110(a)(1)) Including provisions that ensure the
requirements regarding preference for selection are adhered to (Section 572.110(b)); and
6. procedures that ensure families owing tenant contributions due under a HUD housing assistance program resolve any
deficiency prior to participating In the proposed program (Section 572.110(a)(2)).
B. Homebuyer Counseling and Training Plan.
Attach the applicant's counseling and training plan for selected homebuyers (and their alternates) (Section 572.110(c)(3)).
The plan must include:
1. a description of the topics to be covered;
2. the number of homebuyers expected to be counseled and/or trained;
3, the schedule for providing counseling and/or training; and,
4. the provider of the services, if known.
Note: Counseling and training Is only eligible when provided to homebuyers and their alternates selected to purchase units under the program
C. Financing for Homebuyer's Purchase.
1. Attach a description of the proposed financing arrangement to be used for atypical homebuyers purchase and, if
applicable, rehabilitation of a unit. Include each of the following items in your discussion:
a. the average fair market value of the property at the time of sale to the homebuyer;
b. the average sale price to the homebuyer;
c. the average amount and source of the downpayment, if applicable;
d. the average amount and source of anyfirst, second, and additional mortgages for acquisition of the unit, as applicable;
e. the average amount and source of financing for rehabilitation of the unit by the homebuyer, if applicable; and
f. the average amount of the HOPE 3 promissory note, if applicable, with an explanation of how the proposed amount was
derived.
The HOPE 3 promissory note is required if the homebuyer receives substantial financial assistance or subsidy (in excess
of $4,000) from a recipient for purchase and/or rehabilitation that would result in an undue profit to the family if it were
to sell the unit at the beginning of the 7th year of homeownership. Financial assistance or subsidy includes discounted
purchase price, downpayment assistance, and rehabilitation or purchase money grants or loans that are not repayable
on an amortizing basis. (Section 572.130 (d))
Page 27 form HUD-40066 QW)
2. Have any firm commitments for financing all or part of the homebuyer's purchase or rehabilitation expenses been provided
to the applicant by specific lenders? C0 Yes C-23 No Financing will be done in—house.
If "Yes,' describe source, amount, and type of any firm mortgage or other financing commitments. (Note: Financingcommitnenis
are not required at time of program appkation.)
Source Amount Type (m b mongape, ret►abiialon ban ea.)
A
3. For programs proposing to utilize FHA insurance, identify the entity, if any, that is designated to provide a second mortgage
to the homebuyer for purchase of the unit. (Section 572.105(a)(2))
N/A
4. Provide below a typical example of a homebuyer's anticipated monthly expenditures for principal, interest, taxes, and
insurance to acquire an eligible unit under this program. (Include principal and interest on a rehabilitation loan ifthehomebuyer
will be required to finance the rehabilitation.)
1. Monthly Payment by Homebuyer for PITI (Do not include dosing costs unless included in amortized payment)
a. Principal
$ 79.50
b.Interest
$ 65.25
c. Taxes
$ 58.00
d.Insurance
$ 42.00
e. Tota1(PITI)
$ 244.75
2. Average adjusted monthly home"er income:
(not to exceed 80% of median income)
$ 1 ,000,00
3. Divide monthly PIT] (item to) by adjusted
monthly homebuyer income (item 2):
(Note: PITI identified in Item to must be r less
Ow 200% but not more than 30 % of Line:
24 %
$244.75
+ 43.63 Rehab
$288.38 = P & I
29% of Ad j . Gross
w/Rehab P & I
F.ra le is of a family of 4 at 35% of Median paying $26,100 for mortgage and 151. of
$20,000 Rehab in a BMR Loan.
5. Lease -Purchase: (If applicable) If applicant proposes to enter into an interim lease -purchase agreement on any or all of the
properties to be used in the program, attach a description of the specific terms of the lease -purchase agreements. (See definition
of lease -purchase In Section 572.5, and see Section 572.115(a). Note that the term of the lease period may not exceed two years
unless a longer period (of up to 12 additional months) is justified by the applicant and approved by HUD.)
N/A
D. Continued Affordability Plan.
Attach the applicant's plan demonstrating reasonable efforts to ensure the continued affordability by the homebuyers of their
properties3he plan should include a discussion of the following: (a) condominium and cooperative fees, if applicable; (b) utility costs
and maintenance of the property after the homebuyers purchase, and (c) if energy conservation improvements are to be provided,
a description of these improvements. (Section 572.120(b))
Page form HUD-40086 (7193)
ATTACHMENT
EXHIBIT 3 — PART A
HUD Homes.
Tbesmut Move.
A HUD Hone could be your arurtest
move. We can opts the door to the home
" watt at the price you can afford
Contact your weal real estate
ul 99 profeadoaal for more details.
SUBJECT TO AVARLABU Y
MO tt" TUE SDAY JUIY 20, 1993
FW Ma OfTfkS FOR OEM WOCCUPANIS RECIM BY 1:30 PM WRl BE
OPENED M PA DMY
DMNMUSTWA
BID DM ATK)N DATE: DAILY 1:30 PM
BID OPEW-4G DATE: DAILY 2..00 PM
LUBBOCK
1803 E 1ST PL 494-109783-203 3/1 N $13,330 •/"'
1520 24T}1 PL 494.179676-703 2/2 N $31,5W '�•'•
3812 25TH PL 494-159860-721 3/1 N =29,A50 61—
6412 28TH ST 49A-108098-203 2/ 1.5 N $23,2W a/•'•
BD DMAT10N DATE FOR ALL OTHERS: WNW, JUIY 26,1993 4:45 PM
BD OPENNG DAIS FOR ALI OPIERS: AEESDAY, JUIY 27,1993 MW
[
ADOWS FHA CAR No. fPI/tit ►Ittci com
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3/2
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$23,000
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(906 743-727
23
EXHIBIT 3
UNIT INFORMATION
PART B - REHABILITATION STANDARDS
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 &
exterior painting, window replacement, weatherization, roof
replacement, installation of new floor covering, countertops,
sinks, bathtubs, commodes, light fixtures and appliances, etc.
3. HOUSING QUALITY STANDARDS PLAN
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 as to health
and safety. In addition, selected properties will have
passed all fire and habitability inspections. Steps will be
taken to correct all health 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 Community Development 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 CDBG Barrier Free Living
Program.
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
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 and Community Development
Department 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.
EXHIBIT 3 - UNIT INFORMATION
PART D - APPLICANTS ESTIMATED AVERAGE PER UNIT
ACQUISITION/REHABILITATION COSTS
2. Summary of the assumptions used to compute average applicant
acquisition and rehabilitation costs.
The acquisition information is based on the HOPE 3, Year 1
Programs acquisition costs.
Average Acquisition Costs:
1 Bedrooms - We do not anticipate purchasing any 1 bedroom
houses, the availability is not there and while we do not
eliminate individuals from the HOPE 3 Program, we feel the funds
are better spent on properties that would serve more than a 1 to 2
member household, not only now but from a resale standpoint, also.
25
2 Bedrooms - Under HOPE 3, Year 1, we purchased 4 two -bedroom
houses at an average cost of $20,738 - rounded to $21,000.
3 Bedrooms - Under HOPE 3, Year 1, we purchased 18 three -bedroom
houses at an average cost of $28,909, rounded to $29,000.
4 Bedrooms - Under HOPE 3, Year 1, we purchased 1 four -bedroom
house at a cost of $31,100. We do not anticipate many four
bedroom properties being available, but if so, the estimated cost
of purchase should be about the same.
5 Bedrooms - We do not anticipate purchasing any 5 bedroom
properties because the availability of 5 bedrooms is limited to
non-existent. However, if one became available we would not
anticipate paying more than $33,500.
Average Rehabilitation Costs:
To date, we have rehabilitated 5 3-bedrooms homes under the HOPE
3, Year 1 Program. These rehabs have averaged $21,000. This
figure is being used for the average rehab costs for 3 bedroom
properties and as a base rehab cost to compute the average rehab
cost for two, four and five bedroom properties. Assuming that two
bedroom homes will usually be smaller square footage wise, and
four and five bedroom homes will usually be larger square footage
wise than the three bedroom properties, 10% was added or
subtracted for each additional or fewer bedrooms from the base 3
bedroom rehab cost to arrive at the average rehab cost for 2, 4
and 5 bedroom homes.
Exhibit 3: Unit 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.
1.(a)Estimate the total number of HOPE 3 eligible units available for purchase or donation in the
area(s) selected for thl"rogram or available for direct purchase by the homebuyer with
assistance from the applicant. 1 36
(b)Attach 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.).
2. Complete the following table by providing the approximate number of units estimated to be actually used in the
homeownership program from each source listed below. The applicant must propose to use at least 10 units from an eligible
source (or a combination of eligible sources) in the homeownership program. (Section 572.100(a)) Do not Include units
to be purchased using sale or resale proceeds. (An estimate of the number of such units is requested separately in Erbil 8.)
..:Number
.. :.Purchased
to.:
directty
by Homebuyer*
Federal Governmant
MEN
Biel
Federal9. Other
-_
..:l (derris
3.Subtotal @erns
.
•
14.Total0:
.
•
Number of units where applicant will facilitate the homebuyees direct purchase from an eligible source and applicant will not first acquire the unit
" For rousing units owned or held by PHAs or IHAs, only units that were not assisted under the Federal Housing Ad of 1937 are eligible for use in the HOPE 3 Program.
3. Complete the following table by estimating the
number of vacartt and occupied units to be used
In the homeownership program
units
%
Vacant
36
lOCP/o
Occupied
Total
36
100%
4. Complete the following table by estimating the number dunks
to be used in the program that will be kx:aded in the following
types of properties:
1-unit properties 36
2-unit properties
3-unft properties
4-unft properties
Multi-unft condominium properties
Total number of units 36
(This total should equal total shown in Box 14 (D) above.)
Page 22 forth HUD-40ON (V93)
5.(a)lf two -to -four unit properties will be used in the program, is the applicant proposing that any of these properties will contain
rental units after sale to the homebuyer? C] Yes L:31 No ® NA
(b)K ""Yes;" attach a request for an exception that addresses all of the requirements included in Section 572.115(c).
B. Rehabilitation Standards. Attach the following information:
1. State If the applicant will contract for partial/total rehabilitation of the unit prior to sale to the homebuyer or the homebuyer
will purchase the unit first and be responsible for contracting for the rehabilitation. If no rehabilitation of the units will be
required, so state.
2. Describe the type of improvements to be made to, or amenities to be provided for, the units. If none, so state.
3. Describe the applicant's Housing Quality Standards Plan to ensure:
(a) that each unit will, prior to transfer of an ownership interest or execution of a lease -purchase agreement with an eligible
homebuyer, be free from anydefects posing an imminent threat to life, health, or safety of residents andthat the property
has passed recent fire and other applicable safety inspections conducted by appropriate local officials; and
(b) that within two years of transfer to an eligible family, each unit will meet local housing code standards or the housing
quality standards established by HUD for the Section 8 Certificate program, whichever is higher, and all other Federal
requirements including lead based paint and accessibility for persons with disabilities. (Section 572.100 (d) and (e)).
Note: All applicants must submit a housing quality standards plan whether or not units will require rehabilitation.
4. If a sweat equity component is included in the proposed program, provide a plan for managing the provision of sweat equity
by homebuyers, including:
(a) a description of the anticipated scope of the work,
(b) a schedule for completion,
(c) how homebuyers (and others donating labor in connection with sweat equity activities) will be trained ii necessary,
(d) who will supervise the work, i.e, a licensed general contractor, and
(e) a contingency plan if the sweat equity is not fully provided or the schedule is not met.
C. Property Management Entity. If any entity other than the applicant will manage the units prior to transfer to homebuyers, identify
and describe the entity. The management of properties will be done in-house.
D. Applicant's Estimated Average Per Untt Acqulsition/Rehabllhatlon Costs.
1. If the applicant will initially acquire or donate eligible units to the program, complete the following table: (Applicants proposing
only direct homebuyer purchase of units from eligible sources may skip to Section E.)
Applicant Cost
1 Bedroom
2 Bedrooms
3 Bedrooms
4 Bedrooms
5 Bedrooms
Average acquisition cost
$ N/A
$ 21,000
$29,000
$31,000
$33,500
Average rehabilitation cost
$ N/A
$ 18,900
$21,000
$23,100
$25,200
Total Average Applicant Cost *
$ N/A
$ 39,900
$ 50,000
$54, loo
$58, 700
* Note: If total estimated average acquisition plus rehabilitation cost per unit exceeds applicable Section 203(b) limits, all costs
above the Section 203(b) limits must be from sources other than HOPE 3 grant funds or local match contributions.
2. Attach a summary of the assumptions used to compute the average applicant acquisition and rehabilitation costs shown
above.
E. Type of Ownership.
1. Identify the type(s) of ownership Interest(s) that homebuyer(s) will acquire under the proposed program (Le,, fee simple
ownership [including condominum units], cooperative ownership, or other forms). Fee Simple
Note: Forms of ownership other than fee simple and cooperative must be justified in an attachment for approval by HUD. (Section 572.115(b))
2.(a)ls the applicant proposing to convertthe form of ownership of any unit that would be acquired (or donated) under the program
to another form of ownership at the time of transfer to the homebuyer (e.g., conversion from fee simple to cooperative
ownership)? C:a Yes ® No
(b)K"Yes," attach a description of specifically what is proposed. N/A
F. Rental Housing Impact.
1. Will more than 10 percent of the affordable single-family rental housing units in the market area be eliminated as a result
of the homeownership program? 0 Yes Mil No
2. K "Yes," attach documentation on why such elimination does not appreciably reduce the rental housing units in the market
area. If the applicant does not have this information available, contact the Economic and Market Analysis staff in the
appropriate HUD Office for assistance. N/A
0T
form HUD-40ON (7193)