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HomeMy WebLinkAbout6909RESOLUTION NO. 6 9 0 9 A RESOLUTION AMENDING AN AGREEMENT FOR THE PUEBLO URBAN HOMESTEAD HOUSING PROGRAM BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION AND COLUMBIA SAVINGS, A FEDERAL SAVINGS AND LOAN ASSOCIATION WHICH WILL ALLOW THE CITY TO RECEIVE $127,489 FOR THE PUEBLO URBAN HOMESTEAD PROGRAM BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO THAT: SECTION 1. The Pueblo Urban Homestead Program Subsidy Agreement previously passed by City Council by Resolution 6804 is hereby amended with the new agreement between Columbia Federal Savings and Loan Association and the City of Pueblo. This Agreement having been approved by the City Attorney and incorporated herein, is hereby approved. The City Manager of Pueblo is authorized and directed to execute the amended Agreement for and on behalf of the City and the City Clerk is directed to affix the seal of the City thereto and attest the same. INTRODUCED: Ap r i 1 13 ,1992 JOHN CALIFANO ATTEST: City erk Council Person APPROVED: Id fa�tz� Presid nt of Coun it March 19, 1992 Mr. Bob Jaber Department of Housing and Community Development P.O. Box 1427 Pueblo, CO 81002 -1427 RE: Pueblo Urban Homestead Program (PUHP) Dear Bob: Enclosed pursuant to our recent conversations is a copy of the fully executed and exhibited Pueblo Urban Homestead Program Subsidy Agreement. I apologize for the inconvenience due to the delay in getting this to you. Please note that I have inserted a replacement page 2 which correctly references the Exhibits and adds utilities to the quotient of determining housing expense. A replacement page 6 has also been attached which is the correct Exhibit 2. The form of loan application and the Subsidy Amount Calculation form as have been added as Exhibit 3. The chart of eligible incomes has been added as Exhibit 4, and the form of required report is now attached as Exhibit 5. Pursuant to paragraph numbered 5 of the Subsidy Agreement, reports of closed loans should be submitted to Columbia by the 15th of each month for loans closed in the proceeding month. Let me know if you have any questions on what information is needed. Lastly, attached is a suggested form of instruction letter which gives Columbia authorization to disburse AHP funds to Universal Lending as the City's agent. Please Feel free to edit this document, however, any edits should not change the general nature of providing authorization to Columbia for funds disbursement. Please provide this letter as soon as possible. Keep up the good work. It's a pleasure to be a participant in the PUHP and have the opportunity to work with you and the City of Pueblo. Very truly yours, COLUMBIA SAVINGS, a F _: eral Savings r� Jo Ellen avidson Vice President and Loan Association Enc .Columbia Savings / 5850 South Ulster Circle East / Englewood, Colorado 80111 / 303 -773 -3444 PUEBLO URBAN HOMESTEAD PROGRAM SUBSIDY AGREEMENT THIS AGREEMENT is made and entered into this 27th day of January , 1992, by and between the CITY OF PUEBLO ( "City "), and COLUMBIA SAVINGS, A FEDERAL SAVINGS AND LOAN ASSOCIATION ( "Columbia "). DECLARATIONS WHEREAS, the Federal Home Loan Bank "FHLB ") has implemented an Affordable Housing pursuant to the authority granted by the United in the Federal Home Loan Bank Act (12 U.S.C. § regulations of the Federal Housing Finance Board 960) ; and of Topeka (the Program ( "AHP ") States Congress L430[j]) and the (12 C.F.R. Part WHEREAS, Columbia submitted an application for subsidy funding to the FHLB in connection with the FHLB's AHP, which application was signed on April 15, 1991, and thereafter approved by the FHLB (the "Application "). A copy of the Application is attached hereto as Exhibit 1 and made a part hereof by this reference; and WHEREAS, FHLB approved subsidy funding pursuant to the Application in the amount of One Hundred Twenty -Seven Thousand Four Hundred Eighty -Nine and no /100 Dollars ($127,489.00); and WHEREAS, the City intends to use certain City funds and other available funds to remove vacant and boarded up properties from the Pueblo housing stock by finding eligible homeowners to rehabilitate such properties and to live in and maintain them; and WHEREAS, the City and Columbia desire to implement a Pueblo Urban Homestead Program (the "PUHP ") utilizing the direct subsidy to be received from the FHLB (the "Subsidy ") pursuant to the terms, conditions and procedures imposed by the authorizing legislation, the regulations and the FHLB. NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein, the parties agree as follows: 1. Compliance with Plan City and Columbia agree to utilize the Subsidy in accordance with the specific terms set forth in the Application. 2. Regulations City and Columbia agree to be bound by the Federal Home Loan Bank Act (12 U.S.C. §1430[j]) and the KECcas0110 regulation of the federal Housing Finance Board (12 C.F.R. Part 960), as amended from time to time. 3. Maximum Subsidy The amount that each participating household ( "Participant ") will have to pay for their monthly housing cost will be no less than 28% of their gross monthly income (the "Maximum Subsidy "). Monthly housing costs, for purposes herein, will be calculated by adding the monthly principal and interest payments together with the monthly required tax, insurance, mortgage insurance premium and utilities, as set forth on Exhibit 2 attached hereto and incorporated herein by this reference. The total of these amounts must equal not less than 28% of the participating household's gross monthly income (the "Minimum Required Payment "). Prior to each loan closing, City will provide to Columbia documentation showing that the Maximum Subsidy requirement has been met with respect to the Participant whose loan is being closed. Completion and submittal of the form attached as Exhibit 2 , which is incorporated herein by this reference, will be deemed satisfactory evidence of compliance. 4. Monitoring An eligible "Participant" shall mean a family which meets all of the qualifying requirements for the homeownership program adopted by the administering entities pursuant to the PUHP. Prior to Columbia providing Subsidy funds for any closing, City will provide to Columbia documentation showing the income of the household and a chart showing the maximum allowable income based on 80% of median family income adjusted by household size. Such documentation must include, but is not limited to, a copy of the Participant's signed FHA 203K loan application. The subsidy loan application shall be substantially in the form and content of attached Exhibit 3 , which is incorporated herein by this reference. The chart showing maximum allowable income shall be provided concurrently with the loan application, and must be substantially in the form and content of attached Exhibit 4 , which is made a part hereof by this reference. 5. Reporting City will provide Columbia with a report which lists each recipient of AHP funds. The report format is located at attached Exhibit 5 which is made a part hereof by this reference, and lists the name, address, income, family size, whether the family is very low income (with income less than 50% of metro area median income adjusted by family size) or low and moderate income (with income between 50% to 80% of metro area median income adjusted by family size), total cost of the house, the source and amount of all funds utilized for acquisition, rehabilitation, and permanent financing. These forms will be provided to Columbia by the 15th of the month, for all loans closed during the preceding month, until the Subsidy is depleted or the program is closed out, whichever occurs first. - 2 - At least annually following loan closing, City will conduct a physical inspection of the security property, and review each loan for continued Participant compliance with the provisions of the PUHP. City will provide documentation certifying as to the completion of such review and inspection and PUHP compliance by updating the report attached as Exhibit 5 to include date of the inspection and the compliance review. 6. Recapture In the event of default by the Participant during the five year period following the closing of the loan, City shall make best efforts to locate another low and moderate income household to move into and assume the loans on any house that has been subsidized under the PUHP program. If the City is unable to find another low or moderate income family, any funds obtained from the sale of the property to a non - qualifying family over and above the senior debt on the property and direct expenses of marketing the property will be utilized by the City in connection with the PUHP program and the City shall promptly provide Columbia notice of the same. If the City is unable to utilize such funds in connection with the PUHP program, the funds shall be paid to Columbia. 7. Notice During the five year period following loan closing, City will provide written notification to Columbia of any event of default not cured by the Participant during the applicable cure period. 8. Draws City will notify Columbia three (3) business days in advance of each closing of the amount of Subsidy funds required for closing. At such time, City will provide to Columbia the Maximum Subsidy documentation specified under paragraph number 3 above. Upon review and approval of said documentation, Columbia will wire transfer funds to City, or an authorized closing agent, at least the day before the closing. City will subsequently provide evidence satisfactory to Columbia that the Subsidy funds were paid out at the closing, and that a junior lien for benefit of the City has been executed in the amount of the Subsidy, together with a copy of the executed (1) settlement statements, (2) promissory note in the subsidy amount, and (3) deed of trust for benefit of the City. follows: 9. Administration City will provide services as (a) Market the program; houses; (b) Submit offers to HUD for the - 3 - purchase of above; (c) Provide reports to Columbia as described (d) Undertake an annual inspection of the property to make sure that it is in good condition and that the recipient of the Subsidy is still occupying the home; (e) Make best efforts to replace any households that move or are evicted during the first five years with another qualifying household; and (f) Provide an in -house counseling session to each Participant showing them how to maintain their home. "City" CITY OF PUEBLO January 22, 1992 Date By: RU Lewis A. Quigley, City Manager "Columbia" COLUMBIA SAVINGS, A FEDERAL SAVINGS AND LOAN ASSOCIATION January 27, 1992 ByA Ellen Davidson Date Its: rest dent ATTEST: I BY CI CLERK - 4 - EXHIBIT 1 PUEBLO URBAN HOMESTEAD PROGRAM APPLICATION (Application approved by FHLB) I EXHIBIT I Presenting Pueblo Urban Homestead Program A Financial Package for Low-Income Homeownership Application to: Federal Home Loan Bank of Topeka Affordable Housing Program Prepared by City of Pueblo, Colorado Department of Housing and Community Development WYNTRTT 7 MAXIMUM SUBSIDY CALCULATIONS FORM NAME: ADDRESS: PRINCIPAL AND INTEREST PAYMENT INSURANCE TAXES* UTILITIES M I P TOTAL HOUSING COSTS GROSS MONTHLY INCOME TOTAL HOUSING COSTS AS A PERCENT OF GROSS MONTHLY INCOME (MINIMUM OF 28% REQUIRED) EXHIBIT 3 PUHP LOAN APPLICATION Preliminary application submitted by Participant and Formal Application taken by Universal Lending Corporation - 7 - it FF, - apPLtEp� I Qwvennan:0 `7LFHA .OR I ,� V A U S. Il 1nt 1 1.1 Mt y. last. 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Af2skon Nvu-tv 0 - P10 1 -4.dil ----_---.-~�~ / ATTACHMENT TO EXHIBIT 3 PUEBLO URBAN HOMESTEAD PROGRAM (Subsidy Amount Calculation) PURCHASER: PROPERTY ADDRESS: CLOSING DATE: Total Acquisition Closing Cost Discounts Prepaids TOTAL Less Paid by Purchaser Mortgage Amount SUBSIDY REQUIRED Subsidy from Columbia Subsidy from City Calculated by: EXHIBIT 4 Pueblo Urban Homestead Program Table of Maximum Allowable Income VERY -LOW INCOME PARTICI 50% of Median Income Size Family Size Maximum Income 1 $ 9,650 2 11,050 3 12,400 4 13,800 5 14,900 6 16,000 7 17,100 8 18,200 LOW INCOME PARTICIPANTS 80% of Median Income By Fami y Size Family Size Maximum Income 1 $15,450 2 17,630 3 19,850 4 22,100 5 23,850 6 25,600 7 27,400 8 29,150 NAME EXHIBIT 5 PUEBLO URBAN HOMESTEAD PROGRAM MONTHLY REPORT ADDRESS INCOME FAMILY VERY LOW LOW /MOD AHP CITY HOUSE SIZE INCOME INCOME FUNDS FUNDS COST CHFA CLOSING FUNDS DATE