HomeMy WebLinkAboutResolution - 4984 - Agreement - LHFC - Federal Grant Funds, HOPE 3 Homeownership Program - 10_12_1995Resolution No. 4984
October 12, 1995
Item #18
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 an amendment to the Agreement with the
Lubbock Housing Finance Corporation (LHFC) dated May 13, 1993, to further facilitate the
utilization of federal grant funds under the HOPE 3 Homeownership Program by leveraging with
the HUD 203K Program. Said amendment 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 12th day of
ATTEST:
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etty 1R. Jbhnsony City Secretary
APPROVED AS TO CONTENT:
and`Gpknmunity Services
APPROVED AS TO FORM:
Linda L. Chamales, Assistant City Attorney
LLC:dp\ccdocs\Hope3.Res
October 3, 1995
October 1995.
Resolution No. 4984
October 12, 1995
Item # 18
AMENDMENT
THIS AMENDMENT, entered this 12th day of October , 1995, by and between
the CITY OF LUBBOCK (herein called "City") and LUBBOCK HOUSING FINANCE
CORPORATION (herein called "LHFC") amends the May 13, 1993, "AGREEMENT
BETWEEN CITY OF LUBBOCK AND LUBBOCK HOUSING FINANCE CORPORATION"
(herein called the "Agreement").
WHEREAS, the City and LHFC entered into an Agreement, May 13, 1993, to facilitate
utilization of federal grant funds under the Home Ownership of Single Family Homes (HOPE 3)
program and to further the common goal of providing decent housing at affordable prices for
low-income and moderate -income residents of the City of Lubbock; and
WHEREAS, the City Council of the City of Lubbock approved a third HOPE 3 Grant for
1995-96, in Resolution No. 4810, dated April 13, 1995; and
WHEREAS, the 1995-96 HOPE 3 Grant included rehabilitation of as many houses as
possible with loans insured by Federal Housing Administration mortgage insurance under
Section 203 (k) of the National Housing Act (herein called " HUD / FHA 203(k) Loans); and
WHEREAS, the HUD / FHA 203(k) loans are underwritten by Western National
Mortgage to leverage $307,800 in private funds with the HOPE 3 funds; and
WHEREAS, it is necessary for LHFC to execute documents to carry out the acquisition,
rehabilitation and disposition of the homes to which they hold title until the homes are
rehabilitated and marketed by City to approved HOPE 3 buyers; and
WHEREAS, under the Agreement, City Administers the Hope 3 Program;
NOW, THEREFORE, the City and LHFC amend their May 13, 1993, Agreement as follows:
Section I "Scope of Service" is amended to add part D to read:
"D. LHFC agrees to execute and deliver all documents necessary to carryout the
acquisition, rehabilitation and disposition of properties in the Hope 3 program and
to leverage Hope 3 funds with the HUD / FHA 203(k) Loan Program, including
but not limited to Notes, Deeds of Trust, FHA 203(k) Rehab Loan Agreements,
Homeowner/Contractor Agreements, Mechanic's Liens, and any other
documentation relating to loans insured by Federal Housing Administration
mortgage insurance under 203(k) of the National Housing Act."
II. Section I "Scope of Service" part C which begins "City agrees to administer the Hope 3
Program and perform the following tasks:" is amended by adding subparts 17, 18, and 19
to read:
"17. Using Hope 3 funds, City will pay all closing costs and any unfinished
rehabilitation costs in connection with closing HUD / FHA 203(k) rehabilitation
loans on properties for which LHFC holds title for the City's Hope 3 program.
18. HUD / FHA 203(k) loans can go up to 110% of the appraised values of the
properties (after improvements), but the Hope 3 owner, assuming the 203(k) loan
will not pay more than the appraised value, per Hope 3 guidelines.
a. If the appraised value is less than the balance due on the loan when a Hope
3 owner assumes the 203(k) loan, City will pay the difference between the
outstanding balance on the 203(k) loan and the appraised value (sales
price). The difference will be a grant out of Hope 3 program grant funds.
b. If the appraised value is more than the balance on the loan when a Hope 3
homeowner assumes the 203(k) loan, the City will take a second
mortgage. The second mortgage may cover closing costs, prepaid items
and/or equity (if any). Seller (LHFC) closing costs will be paid directly
out of Hope 3 grant funds.
19. The City will make all loan payments to Western National Bank in Amarillo from
Hope 3 funds until the 203(k) loans are assumed by qualified borrowers."
III. This Amendment to the Agreement shall be effective as of September 25, 1995.
IN WITNESS WHEREOF, the parties have executed this Amendment to the Agreement
this h day of October , 1995.
C FL B LUBBOCK HOUSING FINANCE
CORPORATION
AVID R. LANG ON, MA PRESIDEN of Directors
ATTEST:
Betty M. Johnson, Cit Secretary
APPROVED AS FOR�4-
Linda L. Chamales, Assistant City Attorney
APPROVED AS TO CONTENT:
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Doug G man, Managing Director
Health &Community Services