HomeMy WebLinkAboutResolution - 2002-R0118 - Federal Home Loan Bank Grant Fund Application - 03/28/2002Resolution No. 2002-RO118
Prepared b'y: Legal Department March 28, 2002
For: City Council Meeting of March 28, 2002 Item No. 31
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 to sign an
application for Federal Home Loan Bank Grant funds in partnership with the Member
Bank, American State Bank, for the Mike Fowler and Melba Richards Homeowner
Assistance Program. 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 City
Council.
Passed by the City Council this 28th day of March , 2002.
WINDY - Y -SITTO"AYOR
ATTEST:
Reb cca Garza, City Secretary
APPROVED AS TO CONTENT:
ALS:gs/Fed Home Loan Bank Grant.res
ccdocs/March 18, 2002
No Text
Resolution No. 2002-RO118
AFFORDABLE HOUSING PROGRAM
2002 AHP Application
Revised: 1/2002
AFFORDABLE HOUSING PROGRAM
III. Member Information —II
Institution Name: AMERICAN STATE BANK
FHFB ID #14039
Contact Person: Vicki McKinney
Title: Assistant Vice President Compliance Officer
Address: 1401 Ave. Q.
City: Lubbock
State: Texas
Zip Code: 79401
Phone # 806-767-7223
Fax # 806-747-5843
E -Mail: vickymCaD-asbonline.com
II. Sponsor Information
Organization Name: City of Lubbock Community Development Dept
Contact Person: Nancy Haney
Title: C. D. Manacer
Address: P. O. Box 2000
City: Lubbock
State: Texas
Zip Code: 79457
Phone #775-806-2300
Fax # 806-775-3281
E -Mail: nhaneyCa)_mail.ci.lubbock.tx.us
Revised: 112002 2
Federal Home Loan Bank of Dallas
II III. Type and Use of Grant II
A. What will the AHP funds be used for? Be specific:
The funds will be used within the city limits of Lubbock, Texas to
assist eligible low-income homeowners with emergency repairs, handicap accessibility items,
and energy efficiency items. In addition, 20% of the funds will be used to assist First -Time
Homebuyers with down payment and closing cost assistance.
Specific eligible items of repair will include roofing, insulation, energy efficient heating and air
conditioning, windows and doors, hot water heaters, sewer lines, water lines, serious
electrical, plumbing and heating repairs, installation of ramps, handicap accessible showers,
commodes, widening of doors and lowering of cabinets and light switches for wheelchair
accessibility, other necessary accessible items as may be needed for various types of
disabilities and extermination for termite, rodent and insect infestation.
B. Are you requesting a direct grant? YES [X ] NO [ ]
If Yes, How much money are you applying for? $_500,000
C. Are you requesting a subsidized advance (loan)? YES [ ] NO [ X ]
If Yes, what is the amount of the advance? $ N/A
What advance term are you requesting? N/A
What advance rate does your project require in order to cash flow? N/A
What is the current market rate that the member institution would be charging? NIA
For a subsidized advance, the amount of any award will be based on the present values of the
difference in rates between the member's market rate and the rate necessary for the viability of the
Revised: 1/2002 3
I I IV. Pro_! ect Readiness —1I
Start date of project: July, 2002
Date all work completed and units occupied: July, 2003
Anticipated date AHP funds will be first drawn: September, 2002
Anticipated date AHP funds will be fully utilized: Likely to draw down funds and complete
within three years, although the goal will be to complete and totally draw funds within 12 to 18
months.
P eaeral dome Loan Bank of Dallas
Affordable Housing Program
V. Project Information
Project Name:
The Mike Fowler and Melba Richard's Homeowner Assistance Program (FRHAP)
(In memory of two Board Members who passed away this last year and were advocates for the low
income and affordable housing.)
Project Type:
–X—Single Family Ownership
Multi -Family Ownership (condo, mutual housing, co-operative housing)
Single Family Rental
Multi -Family Rental
Project Location, including physical address: Scattered Sites
Congressional District: 19th and 13th Districts
County: Lubbock
Census Tract: City Wide - See attached maps
** If the project provides social services along with housing, separate pro formas are required. (See
required documents)
VI. Proiect
Provide a thorough description of the project. Include as much information as you need to allow the
Bank to "see" your project. If you have pictures of your project, please provide. Use this space to
address any unusual or creative features of your proposal. Attach additional pages if necessary.
The Community Development Department currently administers several housing repair
programs to assist low to moderate -income households. If successful in receiving this grant, the
C. D. Dept. will target all the funds to rehabilitate owner -occupied homes with 20% of the
funding/units set aside to assist first time homebuyers. All funds will be for eligible applicants
whose incomes are at or below 50% of Median Income as defined by HUD.
The AHP project will be used to expand existing programs and to allow more households in
dire need of repairs to be assisted, thus providing decent, safe, sanitary, barrier free and energy
Revised: 1/2002
efficient housing to more low-income homeowners. Each year as programs are administered,
there is always more need for assistance in the'community than there is money available.
These funds will be used in conjunction with the following programs administered by this
department in order to expand these programs to more low-income families and individuals in
need:
Emergency Repair Program: This program is a grant to assist homeowners with emergency
and severe housing situations that would be considered an eminent threat to health and safety.
Conditions include: waterlines, sewer lines/private water disposal, gas lines, water heaters,
heaters, air conditioners, electrical systems and other health and safety issues as may be
referred by the Housing Inspector or other City Departments.
Barrier Free Program: This program is a grant designed to assist homeowners that are disabled
or have someone living in the household on a permanent basis that is disabled in resolving
problems which restrict mobility within single-family structures. Eligible repairs include
building/installing wheelchair ramps, grab bars, accessible showers, handicap toilets,
sinks/faucets, widening of doors, lowering of cabinets, light switches and other required
accessible items which may be deemed necessary for various types of disabilities.
Homeowner's Exterior/Energy Efficient Loan Program (IIEELP): This program is a loan
which is part forgivable and part payback based on a sliding scale of income according to
family size to assist with roofing, windows, doors, heating, air conditioning, insulation and other
energy efficiency items.
Section 108 Program: This is a loan program from HUD and is required to be paid back 100%
to HUD with interest. This program will be new and will be administered citywide as a 100%
payback loan to homeowners since the C.D. Department is required to pay it back to HUD. The
AHP grant would be used as a grant to the homeowners in conjunction with this loan to offset
the 100% payback requirement. This would allow more low-income homeowners to participate
in the program by making it more affordable to the applicant. The Section 108 loan will be
used for total rehab to minor rehab of homes and to make homes energy efficient.
Down Payment and Closing Cost Assistance Program — this program will be a grant to assist
first time homebuyers to achieve the American Dream of owning a home. The C. D. Dept. has
administered Down Payment and Closing Cost Assistance Programs in the past and already has
guidelines in place to implement this program. 20% of the funds/units will be used for down
payment and closing cost assistance. This program will be 100% AHP Grant funded if
approved.
The AHP Grant will provide funding and /or leveraging for all the above-mentioned programs
or in some cases will be used as a stand-alone grant for the same purposes as mentioned above.
The AHP Grant portion will only be eligible to applicants at or below 50% of median and a
forgivable lien will be placed on the property as required by the AHP Grant.
Revised: 1/2002 c
CAPACITY
The C. D. Department has the capacity to operate this program, including Housing Staff,
program guidelines, paperwork, and legal documents already in place and the experience to
administer this program. The Housing staff consists of twelve full-time and two part-time staff
members. They include a Field Services Coordinator, one Senior Building Construction
Specialist, four Housing Inspectors, three Rehab Loan Specialists, one Real Estate Specialist,
one Administrative Assistant, one Office Assistant, and two part-time clerks.
In addition, the C. D. Department Administrative Section consists of ten full-time staff
members. They include the CD Manager, one Account Analyst, one Bookkeeper, one Loan
Servicing Specialist, one CD Contract Coordinator, one Sr. Program Specialists, three Program
Specialists, and one Administrative Assistant. Also, two interns are on board in the
department at this time.
The Housing Staff will market the programs, take all program applications, verify eligibility,
inspect the homes initially to prepare the work write-ups, bid the work, award the contracts to
eligible and approved independent contractors, hold loan closings and proceed the work to
begin, inspect the work during and at completion by doing a final inspection, have final
completion documents signed by homeowner and contractor including "All Bills Paid
Affidavit" and "Subs Releases" from contractors, approve invoices for payment, process
payments and maintain in-house files as well as provide all required paperwork to the Member
Bank and the FHLB. A Report will be set up to track all AHP Grant Funds along with direct
benefit client's name, client's address, client's income, % of median, number in household,
amount of grant, contractor's name, if rehab case, mortgage company's name, if for down
payment and closing cost assistance and any other necessary information.
Revised: 1/2002
Federal Home Loan Bank of Dallas
Affordable Housing Program
VII. Project Cost Information
A. What is the total cost of this project? $3,975,000
B. How does this cost compare to other housing developments in your area?
This is a scattered site project to assist low-income applicants in rehabilitating owner
occupied housing and with Down Payment and Closing Cost assistance to purchase single
family homes. The $3,975,000 consists of CDBG and Section 108 Loan funds from HUD, if the
108 Loan is approved, and will allow us to assist an estimated 120 to 170 families depending
on which in house program applicants apply for and are qualified to receive. Some programs
have higher amounts of assistance than others do.
The $500,000 AHP funds will be used to leverage the other programs or in some cases as a
stand-alone grant; thus allowing an additional 105 low-income households to be assisted.
Without the AHP funds some households will not qualify for the existing programs the
Department has in place due to loan underwriting and payback ability. For grant programs
many applicants will be denied due to a lack of funding. The AHP funds would help those
that would otherwise be turned down.
The $500,000 amount of AHP Grant requested is the maximum allowed due to the fact that the
Department always has many more applications than it is able to approve each year for every
program that it administers. The $5,000 per case is an average that was determined that
would best meet the needs in order to leverage each program and to help more low-income
households and individuals.
Comparably, with the exception of the Down Payment and Closing Cost Assistance Program,
no other organizations offer the same type of programs administered by our department. For
the Down Payment and Closing Cost Assistance Program, the eligible costs will be $4,000 per
case.
C. How did you determine the amount of AHP funds to apply for?
The Community Development Department administers several housing programs each year
with Community Development Block Grant and Home Entitlement Funds.
Because of the population in Lubbock and the need in the Community based on waiting lists
and yearly carry-over of people who need assistance, the justification and need is there to
apply for the maximum amount allowed under the FHLB AHP.
The Barrier Free Program to carry out assistance for handicap accessible type items for
example, at the end of September 2000, when our funding year ended, there were 31 people on
the list waiting to be assisted. This year, September, 2001, eleven disabled individuals were
carried over. At an average of $8,350 per case, this is approximately $92,000 short this year
and $258,850 last year of the need for assistance within our fiscal year. FHLB funds would
help reach the disabled in our community, which would otherwise not be helped.
For the Emergency Repair Program, staff stops taking names after funds are depleted. Funds
for assistance is usually depleted in April of each year with the exception of a small set aside
for elderly or handicap that need air conditioning assistance during the hot summer months.
This means that very low income families needing emergency assistance with water lines, gas
lines, hot water heaters, and other serious electrical or plumbing problems go without
assistance until the program is funded again October of each year. AHP funds would help fill
the gap by providing funds for Emergency Repairs year around. This program was funded
$50,000 less this year than last out of CDBG due to other demands on the CDBG Funds.
Revised: 1/2002
The Homeowner's Exterior/Energy Efficient Loan Program is anew program that began
October of this year. $150,000 in funds is available to assist approximately 15 families with
exterior repairs and heating and energy efficiency type items. With the high energy costs of
gas this past year that affects heating and electrical, utility bills have risen greatly. Because
of high utility costs last year, funds had to be found to help people pay their utility bills
through the winter months. This program is designed to reduce some of the high utility cost
for the low-income homeowner. The intakes for this program were opened on October 1St'
The list has already been closed with 60 owners on the list. Staff is asking people to check
back to see if additional funds will be available pending approval/disapproval of this grant
application. The FHLB funds would help to bridge this gap.
The Section 108 Loan will be to assist people with a 100% payback loan for eligible repairs
from minor to major rehab type needs eligible. It is a 100% payback loan because this is a
loan from HUD and it is required to be paid back to HUD at 100% plus interest. This grant
would help people below 50% of median by leveraging the 108 Loan with a grant, thus
lowering the required payment for the low-income homeowner. FHLB funds would fill this
gap -
Down Payment and Closing Cost Assistance is a program to assist people in becoming first
time homebuyers. There is always more need than funding availability. People who own a
home that is substandard beyond repair need this type of assistance to help them get into a
decent, safe and sanitary home. Under our federal regulations, if people live in a substandard
home, they can still be considered a first time homebuyer. Two people in the last week have
applied for housing programs that need this type of assistance. This program would
hopefully help people in these dire need situations move to better quality housing as well as
others in rental situations. The Member Bank is also waiving all credit report fees in
conjunction with applications to them for this program.
Also, with lead base paint regulations, less money is being allocated for Down Payment and
Closing Costs to go for lower -price range house purchases. This year, the CDBG funds
allocated for Down Payment and Closing Cost assistance are for new construction only
because of the lead base paint regulation. This hurts the lower income families because most
people in the 50% and lower income category can only afford the lower price range homes
that are on the market, not newly constructed homes. $75,000 is all that was funded for Down
Payment and Closing Cost assistance out of CDBG Funds for FY 01-02. This will limit the
number of low-income families that can be assisted this year to transition from rental housing
to being homeowners. The FHLB Grant would help to fill this gap.
Federal Home Loan Bank of Dallas
Affordable Housing Program
Discuss how you determined the need for the housing outlined in your proposal
The City of Lubbock Consolidated Plan for 2000-2003 indicates there is a need for affordable
housing in all income categories at of below 80% of median. The Plan also states that there is
inadequate federal funding available to adequately serve both renter and owner housing issues.
Owner -occupied affordable housing is a high priority in the Consolidated Plan. By increasing
homeownership opportunities for the purchase of a home or by assisting homeowners with
rehabilitation opportunities, neighborhoods in decline, due to the age of housing and the income
level of its residents, begin to see an upward turn in the appearance of their neighborhood. It
has a ripple effect in the areas as other residents begin to take pride in their property and
Revised: 1/2002
participate in available programs. The last step of this process occurs when private businesses
come into the area to take over where federal funds have left off.
This Department has administered various Housing Programs since the inception of CDBG in
1974. There has always been more need than funding availability for the types of programs
mentioned in our proposal. The programs outlined in the proposal are the standard yearly
programs that continue to need funding each year to help the very low-income households in
the community with the most dire housing needs.
IX. Fair Ho
Projects that receive AHP funds must demonstrate how they will promote fair housing.
A. Provide a statement indicating that the project will abide by the Fair Housing Act.
The City of Lubbock Community Development Department complies with the Fair Housing
Act, which prohibits discrimination based on race or color, national origin, religion, sex,
familial status and handicap.
B. Provide evidence of affirmative marketing to promote fair housing. Examples could include special
market targeting and outreach, alternative media advertising, social service agency referrals, or other
similar efforts. Attach a marketing plan, if available.
The City of Lubbock C. D. Department does extensive marketing to promote the programs it
administers as well as to promote Fair Housing. The Community Development Department
houses the Fair Housing Officers for the City of Lubbock. Also, as required by HUD, the C. D.
Department is responsible for doing the Impediments to Fair Housing Analysis periodically to
assess the impediments in Lubbock.
The C. D. Department has developed its own Fair Housing Brochure. Fair Housing is listed on
the CD Web Site. Staff also holds and/or attends several housing fairs each year to promote
its programs and fair housing. The fair housing logo is used on all brochures. The Fair
Housing statement is a part of the City's monthly newsletter and is included in the Grantee
Performance Video that is produced by the City every other year. The C. D. Department also
participates in the Housing Consortium and an annual Dream Tour to encourage private
developers to build "Affordable Housing" in low-income neighborhoods. Fair Housing is
promoted at this activity as well.
Federal Home Loan Bank of Dallas
Affordable Housing Program
X. For Ownership Projects (See required documents list)
How will the AHP grant benefit the homeowner?
This project is designed to be a direct benefit to the low-income homeowners by assisting
with rehabilitation costs to repair their existing home and by providing down payment and
closing costs to first time homebuyers.
Revised: 1/2002
The quality of life for many low-income homeowners who normally would not have access to
funds to help purchase a home or to rehabilitate a home to provide decent, safe and sanitary
housing will be afforded that opportunity through this grant.
XI. For Rental Projects (See required documents list)
How will the AHP grant benefit the tenants?
N/A
Federal Home Loan Bank of Dallas
11X11. Application Scoring Criteria II
The AHP application is scored based on a 100 point scale. See the AHP Application Instructions for
details of the scoring model.
XII.1 Donated Property Points Available: 5
Does your project involve any donated property (land or dwelling units)? YES [ ] NO (X)
If yes, please provide the details of the transaction. Was any money paid for the property? Include the
value of the donation and how many lots or dwelling units were contributed. Also, discuss who
donated the property and when. If the donation has not yet occurred, but has been committed,
provide a commitment letter.
XII.2 Non -Profit Sponsorship Points Available: 8
All sponsors must play an important role in the project. However, only eligible non-profit groups
qualify for points.
Describe the role the sponsor will have in this project. Indicate if your organization is a CHDO or
TDHE. Be specific and include a discussion on all aspects of the sponsor's involvement. Discuss
your qualifications as it relates to affordable housing. Describe your organization's capacity to carry
out its project responsibilities. Provide a copy of the 501(c)3, TDHE, and CHDO as evidence of
participation.
The City of Lubbock is a non-profit organization per IRS ruling and a political subdivision of
the state.
Revised: 1/2002 10
Federal Home Loan Bank of Dallas
XIL3 Targeting: Groups Impacted Points Available: 25
Number of units in this project: 105
Number of Very Low Income (at or below 50% median): 105
Number of Low Income Units (between 51 - 60% median):
Number of Moderate Income Units (between 61 - 80% median):
Number of Units Above 80% Median:
Number of Units - Single Family Ownership: 105
Number of Units - Single Family Rental:
Number of Units - Multi -Family Ownership:
Number of Units- Multi -Family Rental:
Homeless Units: N/A
Single Room Occupancy (SRO) Units:
Special Needs Units: 5
Elderly Units: 20
Family Units (3 or more bedrooms): 20
Rehab Units: 80
Commercial Units:
XII.4 Homeless Housing Points Available: 5
Points are awarded for projects that will create transitional housing for homeless households, or will
provide at least 20% of their units for homeless households. (See application instructions for
definition of homeless).
Does your project target the homeless population? YES [ ] NO [ X ]
If yes, describe how your project meets this criteria.
N/A
Revised: 1/2002 11
Federal Home Loan Bank of Dallas
XII.5
Please check any of the empowerment categories listed below that apply to your project.
[ ] Employment
[ ] Education
[ X ] Training
[ X ] Homebuyer, Homeownership, or Tenant Counseling
[ ] Daycare Services
[ ] Resident Involvement in the Creation or Operation of the Project
[ ] Other(describe):
For each category checked above, provide detailed information about the empowering activity, how
the grant recipients will benefit, and the extent or scope of the activities. Discuss who will be providing
the services and whether the activities are already committed. Also discuss whether
homeowner/tenant participation will be mandatory.
Trainina
The training we will be doing will be mandatory and is as follows:
Educating our homeowners in home maintenance is a vital part of our programs. Once a case
is completed, our Housing Inspection staff informs our homeowners of energy -efficiency tips
and routine maintenance items that will prolong the repairs on their home. The inspectors
actually go into the home and demonstrate the items listed below.
K.W. Poore and Associates, Inc. publishes a book called "Home Maintenance" that is given to
the homeowner for an easy -to -read manual on simple instructions regarding:
For Maintenance
■ Heating and air conditioning tips
■ Changing the furnace filter
■ Troubleshooting
■ Energy conservation
■ Thermostat setting
■ Weatherization
■ Seasonal checklists
■ Cleaning (interior and exterior)
■ Show homeowners the location of shut off valves at commodes, kitchen sinks and on the
hot water heater.
■ Breaker box location and operation
*We are awaiting copies of these booklets to be translated into Spanish.
Homebuyer, Homeownership, or Tenant Counseling
Regarding homebuyer/home repair counseling, the homeowners assisted by our housing
programs are provided with mandatory budgeting education, credit history repair assistance
(for loan applicants) at the initial interview.
Revised: 1/2002 12
The intake loan specialist is responsible for the underwriting of each application. During a
one-on-one interview, a Loan Specialist will do budgeting and go over credit repair
information, if needed to qualify for a loan. All homeowner's will be given an easy -to -
understand book* by K.W. Poore and Associates, Inc. (January, 97) entitled "Housekeeping"
have simple instructions on items such as:
For Budgeting and Housekeeping
■ Household finances
• Budgeting
• Credit importance and repair
• Major appliance purchases
• Homeowner's insurance
■ Checklists for
• Routine, seasonal and annual housekeeping
• Family budget plan
*We are awaiting copies of these booklets to be translated into Spanish.
Revised: 1/2002 13
Federal Home Loan Bank of Dallas
Hiiuruauie itiousing rro ram
XIL6 First District Priority Points Available: 10
A. Is your project located in a rural community with a population less than 25,000?
YES [ ] NO (X)
Community:
Population:
For projects located in multiple areas, provide populations and numbers of units in each community.
B. Will grant recipients be first time homebuyers? YES [ X ] NO [ ]
How many? 20% - AT LEAST 25 + UNITS
XII.7 Second District Priority Points Available: 8
A. Is the member institution making a loan to the project? YES [ ] NO [ X ]
Provide details:
B. Is the member waiving any fees? YES [ X ] NO [ ]
Provide details:
American State Bank, the Member Bank, will be waiving all credit reporting fees.
C. Are all units targeted to special needs households?
Provide details of the special needs population you are serving:
Revised: 1/2002 14
YES [ ] NO [ X ]
Federal Home Loan Bank of Dallas
A AY'____7_1-1_ rr____!__ _ T.... .......
11 XII.8 Effective Use of AHP Funds Points Available: 20 11
Total Number of AHP Assisted Units: 105
AHP Grant per Unit: $5,000 Rehab = 80 Units
$4.000 — Down Pmt. & Closing Costs =25 Units
JJX11-9 Community Stability Points Available: 9 A
A. Will there be any displacement of current residents at any time during this project?
YES [ ] NO [ X ]
If yes, please explain and discuss any resettlement plans.
N/A
B. Does this project involve the renovation of abandoned or vacant buildings?
YES [ ] NO [ X ]
If Yes, will the renovations meet or exceed local, state, or national building codes?
N/A YES [ ] NO [ ]
C. Does your project meet housing needs identified with any local community revitalization initiatives
or plans?
YES [ X ] NO [ ]
If yes, provide the name and date of the plan.
The Consolidated Plan for the City of Lubbock for 2000=2003
D. Please describe how your project promotes community revitalization. Describe the area the
project is located in, and what other initiatives have or will occur to revitalize the area.
The proiect promotes community revitalization by providing funding sources to low-income
applicants who would not otherwise be able to obtain funds to rehabilitate their homes,•
therefore improving housing stock and the community as a whole The Down Payment and
Closing Cost Assistance will help renters become owners who will be counseled and trained by
our staff to take pride in and to maintain their home thus improving the neighborhoods they
live in. The recipients, once homeowners can also apply for rehab funds if needed to improve
the home.
Communitv revitalization is also achieved because economic development occurs by supplying
11obs to the contractors and the sale of goods for material suppliers Rehabbed properties and
Revised: 1/2002 15
by low and extremely low-income families. The need for rehab and making homes handicap
accessible is a high priority in the consolidated plan
Down Payment and Closing Cost Assistance is also a high priority in the Consolidated Plan
With rental costs for a two bedroom averaging $540 per month and three bedrooms averaging
$737 per month, most lower income families could afford to buy a home for the monthly
amount they could be paying in rent The main barrier to purchasing many times is the up
front costs to pay for the down payment and closing costs Therefore 20% of our application
includes funds to help at least 20 families become homeowners
The area will include the City Limits of Lubbock
Revised: 112002 16
Federal Home Loan Bank of Dallas
Affordable Housing Program
XIII. Disclosure
Does the member have any past or present financial or ownership interest in any portion of this
project?
YES [ ] NO [ X ]
Have funds for this project been requested from any other Federal Home Loan Bank?
YES [ ] NO [ X ]
If Yes, provide the name of the bank and the amount requested:
Name: N/A
Amount: $ N/A
II XIV. Long Term Retention 11
Legally recorded documents that insure the long term retention of all units assisted with AHP funds
are a requirement of the Affordable Housing Program. Owner -occupied housing must be retained as
affordable for 5 years, and rental housing must be maintained as affordable for 15 years. if your
project is approved, the Bank will work with applicants and sponsors to insure that the appropriate
regulatory language is used.
All member institutions and project sponsors are required to maintain records demonstrating the use
of AHP funds, and, in the case of rental projects, information concerning the ongoing operations of
projects through the end of the 15 year retention period. Projects will be monitored by the Federal
Home Loan Bank of Dallas to insure program and application compliance.
Member institutions and sponsors are required to file periodic status reports about the pro]ect.
1 XVII.
By signing below, member institution and sponsor certify that any proceeds of the direct grant and/or
subsidized advance, which will not be, or cease to be, used for the purpose approved by the Federal
Home Loan Bank of Dallas and the Federal Housing Finance Board will be recaptured and the
unused or improperly used funds will be returned to the Federal Home „Loan Bank of Dallas.
II XVIII. Certifications 11
Member institution and sponsor certify that the information in the application is correct and that the
grant received for this project will only be used for the purposes listed in the application. Any changes
regarding the terms and conditions outlined in this application must be provided to the Bank in writing,
and approved by the Bank prior to implementation.
Revised: 1/2002 17
Federal Home Loan Bank of Dallas
Auoraanle Housing Program
XIX. Signatures
Member Institution: AMERICAN STATE BANK
Authorized Signer's Name: Michael Epps
Title: Executive Vice President/Accounting
Signature: M L(_ ,,
Sponsor: CITY OF LUBBOCK COMMUNITY DEVELOPMENT DEPARTMENT
Authorized Signer's Name: Windy Sitton
Title: Mayor
�
Signature:
yl 1t,a1:
REBECCA GARZA, City Secreta
Revised: 1/2002 18