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HomeMy WebLinkAbout7584RESOLUTION NO. 7584 A RESOLUTION AMENDING THE VACANT LOT RECYCLE PROGRAM TO ASSIST LOW - AND - MODERATE -INCOME FIRST TIME HOMEBUYERS TO FINANCE AND CONSTRUCT SINGLE FAMILY HOMES AND REDEVELOP EXISTING NEIGHBORHOODS WHEREAS, there exists a shortage within the City of Pueblo of safe, decent and sanitary housing which is affordable to low and moderate income families; and WHEREAS, there also exists a shortage of affordable building sites within the City for the construction of new safe, decent and sanitary housing which is affordable to low and moderate income families; and WHEREAS, the provision of sufficient affordable decent, safe and sanitary housing for low and moderate income persons serves municipal and public purposes; and WHEREAS, certain vacant lots owned by the City may be surplus to the City's needs and could be transferred and used for construction of new housing for low and moderate income families; and WHEREAS, the transfer of City owned surplus property for construction of such housing serves primarily public purposes by providing an affordable supply of housing for low and moderate income families, by returning unproductive property back to the municipal tax base, and by preserving and enhancing existing neighborhoods; and WHEREAS, by Resolution No. 7521 of the City Council, passed and approved on December 12, 1994, the City established a Vacant Lot Recycle Program in order to serve the aforesaid public purposes; and WHEREAS, experience with the Program has demonstrated the need for minor Program modifications, including conveyance of vacant lots to licensed homebuilders in order that private sector financing of construction may be made more readily available for the benefit of low and moderate income families; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that: SECTION 1 The Vacant Lot Recycle Program established pursuant to Resolution No. 7521 is hereby reauthorized with modifications, and shall hereafter be conducted in accordance with the following procedures and requirements: A. The Department of Housing and Community Development of the City of Pueblo (hereinafter referred to as "the Department ") shall be responsible for the administration of the Vacant Lot Recycle Program (hereinafter referred to as "the Program ") in accordance with the terms and provisions of this Resolution. B. From time to time, the Department shall examine its own records and land inventory records of other City departments and prepare a detailed initial listing of vacant lots owned by the City which may be surplus to the City's needs. The Department shall perform appropriate title search and feasibility evaluation as to the properties identified on the initial list in order to determine which properties may be both surplus and suitable for construction of housing units for low and moderate income families, and shall identify only the suitable properties on a Screening List of Property for Vacant Lot Recycle Program (the "Screening List ") which shall contain all of the following information: (i) the complete legal description and common address of the property; (ii) a statement describing the manner by which the City acquired the property including the date of acquisition and cost of acquisition. (iii) a description of any nearby facilities owned or operated by the City, the names of all streets abutting the property, and identification of any utilities, drains or easements upon, across or adjacent to the property. (iv) any other information relating to the property which may be relevant to its reuse. -2- C. Upon completion of a Screening List, Department shall provide a copy of same to every other City department with a request that the Department be notified within 30 days if any of such other departments have reason to believe the property may have a present or future use or value to or for any City department, function, activity, project, easement or otherwise. In the event Department receives notice that a property may have some other possible use or value to the City, it shall remove that property from further consideration. The properties remaining on the Screening List after such review and removal process shall be listed on a Final Property List for Vacant Lot Recycle Program, and presented to City Council for approval. D. Persons interested in acquiring a lot under the Program shall submit an application therefore with the Department on forms prepared by the Department. Persons making application to participate in the program shall meet all of the following criteria and requirements: (i) Applicant must meet the income and asset guidelines and limitations to qualify as a low or moderate income household within the meaning of that phrase as defined in 24 CFR Part 570 and Section 8 of the Housing Act of 1937; provided, however, that a limited number of applicants, not to exceed in number 15% of all Program participants, may be deemed qualified to participate in the Program notwithstanding that such applicants do not meet the low or moderate income household definitions of 24 CFR Part 570 and Section 8, provided such applicants meet all other Program criteria and requirements and household income does not exceed 115% of median household income for the Pueblo SMSA. (ii) Applicant shall intend to construct a new home upon the vacant lot to be occupied as his sole and only place of residence. (iii) Housing to be constructed shall comply with the Uniform Housing Code and -3- Uniform Building Code as adopted and amended by the City and shall meet all other applicable code requirements imposed by law or regulation. (iv) Applicant shall demonstrate compliance with all other loan or grant requirements applicable to construction or financing of the proposed new dwelling. (v) Applicant shall furnish a detailed estimate of costs of construction on forms acceptable to Department. (vi) Applicant shall timely provide to City and lenders all required credit information, income verification, construction loan verification, relevant economic and employment information, authorizations for release of confidential financial information, and household information concerning family size, family income and employment for all members of the applicant's family. (vii) Applicant shall furnish sufficient evidence of financial ability to repay any funds necessary for construction financing and permanent mortgage loan. (viii) Applicant must be a first time homeowner. E. The Department shall review and evaluate each application on a case -by -case basis to determine whether Applicant meets or will be able to meet all program criteria and has proposed a feasible construction project. Priority among applicants shall be determined on a first - come - first- served basis based upon the date when a fully completed application has been evaluated and determined to meet or be able to meet program criteria. F. The Department shall approve an application for vacant lot under the Program upon compliance with all of the following: (i) The application is a completed qualified application with the earliest me qualification date and the Applicant is ready to proceed with construction loan closing; (ii) Applicant has received firm commitments for financing required for construction. (iii) Applicant has entered into a written contract, on forms satisfactory to the Department, with a person or entity qualified to perform and complete the work and furnish the materials necessary to construct the home, contingent only upon transfer of the vacant lot and closing of the construction loan; (iv) The contract referred to in subparagraph (iii) above must require construction to comply with all applicable City building codes, and after construction the residence will comply with HUD's Housing Quality Standards set forth at 24 CFR 882.109. (v) Applicant has not previously received assistance under the Program. G. Conveyance of lots shall be made by form of deed approved by the City Attorney and executed on behalf of the City by the President of City Council and the City Clerk. H. In addition to the foregoing, Department shall be authorized to undertake a pilot project pursuant to which Vacant Lots approved by City Council for disposition under the Program may be conveyed to private homebuilders upon the following conditions: (i) A participating licensed homebuilder shall file plans and specifications acceptable to the Department for a single family home not exceeding 1200 square feet of finished dwelling space to be built upon the lot, agrees to commence construction of such residence in accordance with said plans and specifications within 60 days of conveyance of the lot to said homebuilder, and furnishes proof of financial ability to complete such construction in the manner otherwise required by paragraphs D(iv), D(v) and F(ii) above. -5- (ii) A participating homebuilder shall agree that upon completion of construction, such residence will be sold only to a person meeting the qualifications of an Applicant under this Program, for a purchase price not exceeding an amount deemed affordable for qualified program applicants by Department. (iii) A participating homebuilder's obligations hereunder shall be secured by a deed of trust, in form acceptable to the City Attorney, which deed of trust shall be recorded and constitute a lien against the lot conveyed to homebuilder. Department is authorized to subordinate said lien to a deed of trust or other mortgage instrument securing a construction loan to homebuilder in an amount not exceeding 95% of the purchase price established under subparagraph (ii) above. Upon fulfillment of all of homebuilder's program obligations and conveyance of the completed residence to a qualified buyer, City shall release its lien. (iv) Department shall develop and implement such administrative procedures as it deems appropriate for the pilot project so as to further the goals of Program, comply in all other respects with the applicable requirements of the Program, and afford interested homebuilders a fair and equal opportunity to compete for participation in the pilot program. SECTION 2 The Department is hereby authorized and empowered to take all actions required or necessary to implement the Program in accordance with the requirements set forth in this Resolution. INTRODUCED: MAPCH 27 , 1995 By AL GUIUM Councilperson W ATTEST: Cit§ Clerk APPROVED: President of City Council J:\ CITY \HOUSING \VCNTLOTS\RESAMEND.WPD / City of Pueblo OFFICE OF THE CITY ATTORNEY 127 Thatcher Building PUEBLO, COLORADO 81003 MEMORANDUM TO: Tony Berumen, Director of Housing and Community Development FROM: Thomas J. Florczak, Assistant City Attorney 1� DATE: April 13, 1995 RE: Vacant Lot Recycle Program - Deed, Homebuilder Participation Agreement and Deed of Trust for 2101 W. 13th Street, Pueblo In accordance with your memorandum to me dated April 10, 1995, the information provided therewith, and our subsequent telephone conversations, I have prepared and enclose herewith a form of quit claim deed and other instruments for the referenced property. In preparing the deed, we have relied entirely upon the legal description furnished by your office without independent verification regarding the accuracy or completeness of the legal description and common address. Therefore, should you have any doubt regarding the accuracy or completeness of this legal description or common address, please do not use this deed without contacting me. Before execution and delivery of the deed, you should also ensure that: (a) the proposed transferees have satisfied (or will satisfy) all of the requirements set forth in Paragraphs D(iv), D(v), F(ii), and H of Section 1 of Council Resolution No. 7584, and (b) the deed is fully completed with the date and all required signatures. I have also enclosed for your use a draft Homebuilder Participation Agreement ( "Agreement ") and Deed of Trust (to be executed by the Homebuilder) in accordance with the requirements of paragraph H(iii) of Section 1 of Resolution No. 7584. Please review these instruments carefully and contact me if you have any questions or desire any revisions thereto. If your department uses these documents, the Agreement and Deed of Trust should be carefully completed with all applicable blanks filled in, and should be recorded immediately after recording of the quit claim deed. Please contact me if I can be of any further assistance with respect to this matter. TJF/jp Enclosure (Drew /Hawkins VLR) QUIT CLAIM DEED THIS DEED, made this day of , 1995 between City of Pueblo, a Municipal Corporation, of the first part, and Drew Construction, Inc., a Colorado corporation, of the second part, WITNESSETH, That the said party of the first part, for and in consideration of the sum of Ten Dollars ($10.00) to the said party of the first part in hand paid by the said party of the second part, the receipt whereof is hereby confessed and acknowledged, hath remised, released, sold, conveyed and QUIT CLAIMED, and by these presents doth remise, release, sell, convey and QUIT CLAIM unto the said party of the second part, its successors and assigns forever, all of the right, title, interest, claim and demand which the said party of the first part hath in and to the following described real property situate, lying and being in the County of Pueblo and State of Colorado, to wit: Lots 39 and 40, Block 16, Adee, Chamberlin & Wiley's Subdivision, Second Filing, also known as street and number: 2101 W. 13th Street, Pueblo, Colorado. TO HAVE AND TO HOLD the same, together with all and singular the appurtenances and privileges thereunto belonging, or in anywise thereunto appertaining, and all the estate, right, title, interest and claim whatsoever, of the said party of the first part, either in law or equity, to the only proper use, benefit and behoof of said part of the second part, his heirs and assigns forever. Grantee takes said right, title and interest of said party of the first part subject to all liens, encroachments, leases and environmental conditions, including both those of record and those not of record. IN WITNESS WHEREOF, The said party of the first part hath caused its corporate name to be hereunto subscribed by the President of the City Council of Pueblo, and its corporate seal to be hereunto affixed, attested by its City Clerk, the day and year first above written. ATTEST: CITY OF PUEBLO, A MUNICIPAL CORPORATION V/z 1- 4 By 1` rian Mead, City Cler President of the City Council [SEAL] COUNTY OF PUEBLO ) ) ss. STATE OF COLORADO ) The foregoing instrument was acknowledged before this day of 1995 by as President of City Council and Marian Mead, City Clerk.