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Home My WebLink AboutO-2002-2600 . .' ORDINANCE NO. 2002-~'JDD AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE AND SOUTHEAST TEXAS HOUSING, FOR ADMINISTERING THE HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM FOR THE CITY OF LA PORTE, TEXAS; APPROPRIATING $17,500.00 TO FUND SAID CONTRACT; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The Acting City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. City Council appropriates the sum of $17,500.00, from the General Fund, Account Number 15-9892-859-1100, to fund said contract. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. ORDINANCE NO. 2002-1ea.JL . PAGE 2 Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, thisCJflb day of December, 2002. CITY OF LA PORTE BY:~~~,~~ orman L. Malone Mayor ATTEST: a, Martha A. Gillett City Secretary e e 604 W. Fairmont Parkway, La Porte, TX 77571 Phone: (281) 471-5020 /Fax (281) 842-1868 www.ci.la-Dorte.lx.us CITY OF LA PORTE SINGLE-FAMILY NEW CONSTRUCTION & DOWN PAYMENT AND CLOSING COSTS ASSISTANCE PROGRAMS Letter of Agreement for Professional Services Background The City of La Porte received grant funds, made available by the Harris County Office of Housing and Economic Development (OHED), from the U.S. Department of Housing & Urban Development (HUD) through the Home Investment Partnership (HOME) Program. These funds will be available to construct new single-family housing. Th~se funds will also provide assistance to home buyers in the form of down payment and closing costs for 11 newly constructed single-family units in La Porte's Northside neighborhood. Southeast Texas Housing Finance Corporation (SETH) will provide professional administrative services associated with this grant on behalf of the City. Their responsibilities are described in the "Scope of Services" section below. In addition, program details are included as an attachment to this document. Scone of Services The proposed scope of services is as follows: 1. Preparation of Program Guidelines and Materials: · SETH shall prepare program guidelines within the parameters of HOME program regulations. · SETH shall prepare all necessary forms and form letters. · SETH shall submit guidelines and materials to the City of La Porte for approval prior to implementation of the program. 2. Marketing of the Program: · At the request of the City of La Porte, SETH shall market availability of the program through various media sources, including, but not limited to: television, print media, radio, and PSA's. All sources (both English and Spanish) should be utilized. · SETH shall prepare brochures and/or fact sheets regarding the program and its parameters for prospective participants, lending institutions, etc. in both English and Spanish. 3. Referral of Participants: . Applicants for the program shall be obtained through referrals from a participating lending institution, the City of La Porte, and other sources, including Sheila Frye & Associates through a contract with the City of La Porte. Applicants may contact SETH directly for assistance. . SETH shall inform the applicants of the basic program eligibility requirements and procedures. . Ifneeded, the applicant shall be informed of the participating lending institutions to obtain a mortgage application and Letter of Referral and/or to the Homebuyer Counseling/Education Program. r~p:oitJ;\f i.\' ~~.~ ~.:.. e e 4. Intake: · SETH shall have applicant fill out intake application if not completed by Sheila Frye & Associates during pre-screening & pre-qualification. · SETH shall obtain all pertinent information regarding the proposed property, including but not limited to: A. Dates: application, homebuyer education, referral B. Purchase property address with zip code C. Census track number for both current and property addresses D. Sales price as indicated on the sales contract E. Loan amount, interest rate, loan terms, and estimated payment F. Number of bedrooms G. Appraised value, if available H. Lender name, contact, and phone number I. Title company, name, contact, and phone number. S. Income Eligibility Verification: · Using the Section 8 Program and/or HOME definition for annual (gross) income, verify the applicant's anticipated income. Income verification is valid for a six-month period following receipt of information. If the loan is not closed within six months, income must be re-verified. · Applicants who owe debts to the City of La Porte shall be deemed ineligible. 6. Environmental Review: · SETH shall perform an abbreviated environmental review of the property for the following items: . A. Model Energy Code B. Flood Disaster Protection Act C. Runway Clear Zones and Clear Zones D. Coastal Barriers Resources Act 7. Property Appraisal: · An appraisal of the property by a qualified third-party. The appraised property value must be equal to or less than the published FHA 203(b) mortgage limits adjusted for size and type of housing or by the limits imposed by HOME program regulations or Harris County OBED or the City of La Porte. 8. Assistance Determination: · SETH shall review applicant's affordable payment. · SETH shall review estimated amount of down payment and closing costs. · SETH shall determine amount of home buyer program assistance and homebuyer's participation. 9. Inspection: · SETH shall conduct inspection of the proposed property utilizing, at a minimum, the Section 8 HQS Inspection Report form or other standards as requested by the City of La Porte. · Should the property fail inspection; a re-inspection must be made after deficiencies are corrected. 10. Loan Documents: · SETH shall prepare a Deed of Trust and Assignment of Lien, which includes the Loan Recapture Provisions and subordinates to the prime lender. · SETH shall maintain copies of all loan documents in the participant's file. 11. Loan Closing: · SETH shall prepare final determination of down payment and closing costs, including amount of home buyer program assistance and the homebuyer's share. · SETH shall inform all parties of the financial settlement. · SETH shall submit all pertinent information to the City of La Porte as required to prepare the "project set up" and "completion" reports in IDIS and request for funding. e e 12. Files: · SETH shall prepare and review file for completeness to ensure all necessary documentation is included. Within 90 days of completion of the program, the files will be delivered to the City of La Porte. · Records shall be maintained for a period of 5 years after the Period of Affordability. Should the SETH and/or the City of La Porte terminate or end any agreements to administer the Homebuyers Program, all files shall become the property of the City of La Porte. Compensation Compensation for the above mentioned will occur upon a drawdown schedule mutually agreed upon by the City of La Porte and SETH. This work shall not exceed seventeen thousand five hundred dollars ($17,500) without prior authorization from the City. In addition, a status report and invoices shall be submitted monthly. Executing this agreement signifies that all parties agree and understand the terms and responsibilities expressed in this document, the scope of services, and the program description. This also means that SETH will operate the Single- Family New Construction program and Down payment assistance/Closing Costs program in accordance with all applicable rules and regulations of the Department of Housing and Urban Development (BUD), the County, and the City. Entire Agreement This instrument contains the entire Agreement between the parties related to the rights herein granted and obligations herein assumed. Any oral or written representations or notifications concerning this instrument shall be of no force or effect excepting a subsequent modification in writing signed by both parties hereto. The headings herein are for convenience only and shall have no significance in the interpretation hereof. Severability If any section, sentence, phrase, clause, or any part of any section, sentence, phrase, or clause, of this Agreement shall, for any reason, not be legally or factually valid, such invalidity shall not affect the remaining portions of this Agreement. Effective Date This agreement shall be in effect from and after its passage and approval. eting City Manager orte, Texas )i~~ o e v~ '-//-3-0;;'" Ron Williams, Executive Director ate Southeast Texas Housing Finance Corp. ATTEST: Lj}J~~ 1~-1-o'). Date e e CITY OF LA PORTE SINGLE-FAMILY NEW CONSTRUCTION & DOWN PAYMENT AND CLOSING COSTS ASSISTANCE PROGRAMS Drawdown Schedule Activity Compensation Start Up Costs Marketing Preparation of Program Guidelines and Materials $6,500 First Home Closing $1,000 Second Home Closing $1,000 Third Home Closing $1,000 Forth Home Closing $1,000 Fifth Home Closing $1,000 Sixth Home Closing $1,000 Seventh Home Closing $1,000 Eight Home Closing $1,000 Ninth Home Closing $1,000 Tenth Home Closing $1,000 Eleventh Home Closing $1,000 TOTAL $17,500