HomeMy WebLinkAbout09-13-2001-11.14 - Resolution - 09/13/2001RESOLUTION NO. 9-13-2001-11.14
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLLEGE
STATION, TEXAS, APPROVING AN AMENDMENT TO THE OPTIONAL
RELOCATION PROGRAM GUIDELINES.
WHEREAS, the City Council of the City of College Station, Texas, has previously
established guidelines and criteria governing funding provided by the Community
Development Block Grant Program, the HOME Investment Partnership Grant Program
and other local, state, or federal funds, and providing for certain relocation payments and
assistance necessary to accomplish the voluntary relocation of eligible homeowners from
dilapidated structures into adequate, decent, safe, and sanitary dwellings; and
WHEREAS, the City Council of the City of College Station, Texas, desires to increase the
spending limits for such relocation payments and assistance previously established by
Section VII, Paragraph A, of the Optional Relocation Program Guidelines (approved June
2000) in recognition of increased construction costs associated with such voluntary
relocations; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLLEGE
STATION, TEXAS:
PART 1: That the City Council hereby agrees that the spending limits for the
Optional Relocation Program should be increased.
PART 2: That the City Council hereby approves an amendment to Section VII,
Paragraph A, of the Optional Relocation Program Guidelines as set forth in
"Exhibit A", attached hereto.
PART 3: That this resolution shall take effect immediately from and after its passage.
ADOPTED this 13th day of September, A.D. 2001.
ATTEST: APPROVED:
Cin
CONNIE HOOKS, City Secretary rcisLHANEY,LYNN Maya/
-Signed by/Joe Jackson
uthenticat� with Approvelt
City Attorney
RESOLUTION NO. 9-13-2001-11.14 Page 2
EXHIBIT "A"
Section VII, Paragraph A, of the Optional Relocation Program Guidelines are hereby
amended to read as follows:
"VII. FORMS OF ASSISTANCE AND ALLOWABLE EXPENSES
A. The primary form of assistance to be provided will be the use of CDBG /
HOME funds to pay for the cost of the replacement dwelling. The allowable
budget authority will not exceed Sixty Thousand and No/100 Dollars
($60,000.00) for the total replacement housing cost (excluding cost of
demolition, site preparation, temporary rehousing expenses, and other related
rehousing costs determined necessary by City staff)..
Homeowners with large families that qualify for 4 or more bedrooms based on
HUD's Section8 Occupancy Standards (as described at 24CFR 882.209(b)(2))
will be eligible for an allowed budget of Sixty-five Thousand and No/100
Dollars ($ 65,000.00).
An additional Three Thousand Five Hundred and No/100 Dollars ($3,500.00)
funding will be available for families with handicapped members to be used to
address special and accessibility needs. These funds are to be used only for
special handicap accommodations as determined feasible by Community
Development staff after examination and verification of the family's needs.
1. Projects fully financed by a deferred, forgivable loan will be limited to
applicants with less than eighty percent (80%) of the Bryan -College
Station MSA median family income.
2. A lien and a deferred, forgivable loan commensurate with the
construction cost (not including temporary relocation and demolition
costs), amortized using a monthly rate based on the number of months
in a ten (10) year lien period, will be placed on all replacement
dwellings. The loan will be forgiven at this rate over the ten (10) year
lien period. If the house is sold or transferred before the lien period
expires, the homeowner gets credit for every month spent in the house.
The credit is subtracted from the total loan amount, which is then owed
and due to the Community Development Program and received and
used thereof as program income.
3. The City of College Station will be in the first lien position on all
replacement housing. However, in situations where first lien position
is not feasible, the City will accept a lower lien position subject to the
review and approval of the Community Development Administrator
and their immediate supervisor. The lien will not be forgiven until the
following conditions are met:
a. the homeowner must reside in the unit for a period not less than
ten (10) years; and
P.•IGROUPIAGEN-CALICouncil agendaslComplete12001101091311015 ORP Program108-15-01 Resolution - CD ORP.doc
RESOLUTION NO. 9-13-2001-11.14 Page 3
b. the property must be maintained to meet City code
requirements; and
c. mortgage payments must be met on a timely basis; and
d. homeowner must provide annual documentation of adequate
homeowner's insurance, including casualty and fire coverage,
and the City must be listed on the Certificate of Insurance to be
notified in case of policy cancellation; and
e. homeowner must provide annual documentation demonstrating
that property taxes (and/or applicable payment plans) are
current.
4. If the owner dies during the lien period or is not medically able to
occupy the structure, the controlling or surviving family members may
occupy the property regardless of income status.
5. Program intent is to maintain owner -occupancy in these properties. In
the event of a sale or transfer of ownership during the ten (10) year
period, the following conditions must apply to avoid default:
a. The owner must sell or offer the assumption of the loan to a
low/moderate income family for their homestead and approved
by the Community Development Office; and
b. The owner shall give the city a first right of refusal to purchase
the ownership interest in the property from the homeowner for
the amount specified in a firm contract between the homeowner
and a prospective buyer. The city shall have 10 business days
after receiving notice of the firm contract to decide whether to
exercise its right and 60 calendar days to complete closing of
the property.
If within this ten (10) year period the homeowner defaults, the loan will
be called due in full and foreclosure proceedings may be initiated. The
City will make every effort to work with the homeowner to avoid
foreclosure and will examine each situation on a case by case basis.
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