HomeMy WebLinkAbout8-26-2004-11.09 - Resolution - 08/26/2004RESOLUTION NO. 8-26-2004-11.09
RESOLUTION OF THE CIT~ COUNCIL OF THE CITY OF COLLEGE STATION,
TE2G~S, AMENDING THE OPTIONAL RELOCATION PROGKAM
GUIDELINES.
WHEREAS, the C~t3. Councd of the Cm of College Stauon, Texas, adopted the Opnonal
Relocauon Program Gmdelmes to prowde for relocaUon payments and assxstance necessary to
accomphsh the volumary relocanon of ehg~ble homeowne~:s from dilapidated structures into
adequate, decent, safe, and samtary dwellings, and
WHEREAS, since the adopuon of the Opuonal Relocauon Gmdelmes, construcnon costs
assocmted w~th such ~oluntarv relocauons have increased beyond the maxmaum budget allowed
by the gmdehnes; now, therefore,
BE IT RESOLVED BY THE crI'Y COUNCIL OF THE CI'IW OF COLLEGE STATION,
TEXAS
PART 1'
That the C~tv Councd herebs approves and adopts the Amendment to Secuon
VII (A) of the Opnonal Relocanon Program Gtudelmes as set forth tn "ExhtNt
A", attached hereto.
PART 2' That thas resolunon shall take effect mamechately from and after its passage
ADOPTED tbas 26'~' day of A_.u_g.~, A D 2004.
A'I'FEST.
CONNIE HOOKS, Cn), Secretary
APPROVED
RON SILVIA, Mayor
APPROVED.
Cra' Attorney
RESOLUTION NO. 8-26-2004- I 1.09 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
The primary form of ass~stanee to be provided will be the use of CDBG / HOME
funds to pay for the cost of the replacement dwelhng. The allowable budget authority
shall not exceed Sixty Five Thousand and No/100 Dollars ¢$65,000 00~ for the hard
construction costs of the replacement dwelling. Since each ORP project ns unique in
preparation, size and duration, additional costs will be required to carry a project from
commencement to completion. These additional costs include demoliuon of the
existing dilapidated dwelhng and out buildings, temporary rehousing expenses and
other related project delivery & administrative costs. These related costs shall only be
eligible as allowed by HUD program regulations and statutes.
Large households that qualify for a replacement dwelling with more than three (3)
bedrooms, as mandated by the City's bnildmg code occupancy reqmrements, may be
eligible for an addiuonal Five Thousand and No/100 Dollars l$5.000.00), per
bedroom, in hard construction costs.
Households with handicapped or special needs members may quahfy to receive an
additional Thee Thousand Five Hundred and No/100 Dollars ($3,500.00), in hard
construction costs, to address accessibility and / or special needs. These funds are to
be used only for special accommodations as determined feasible by Community
Development housing staffafter examinauon and verificatmn of the household needs.
Projects are financed by a zero percent (0%) deferred, forgivable loan, and wdl
be limited to applicants with total household income at or below eighty percent
(80%~ of the Bryan-College Station MSA median income hmits.
A lien, commensurate with the deferred, forgivable loan value for the hard
eonstructmn and demolition costs, amorl~zed using a monthly rate based on the
ntunber of months in a ten-year hen permd 020 months), shall be placed on
the replacement dwelhng. The loan will be forgiven at this rate over the ten
(101 year lien period If the dwelling is sold, transferred or rented before the
hen period expires, the homeowner gets c~lit for every month spent residing
in the duelling. The credit is subtracted from the total loan amount, which ~s
then owed and due to the Commumty Development Program and received and
used thereof as program income
The City of College Station shall hold first lien position on the replacement
dwelling for the durauon of the hen period However, in situauons where first
hen posit~on ~s not feasible, the City may accept a lower lien position subject to
the review and approval of the Community Development Administrator and
their ~mmedmte supervisor. The lien shall not be forgiven untd the following
conditions are met
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.RESOLUTION NO. 8-26-2004-11.09 Page
a the homeowner must reside in the unit for a period not less than ten
years: and
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, with the City listed on the
Certificate of Insurance to be noti fled m case of policy cancellation: and
e homeowner must provide annual documentation demonstrating that
property taxes (and/or applicable payment plans) are current.
If the owner expa'es during the hen period, or ts not me&cally able to occupy the
structure, the controlling or survtvmg household / fanuly member(s) ma) occupy
the property, regardless of income slams
5
Program intent is 1o maintain owner-occupancy in these properties. In the
event of a sale, transfer of ownership or renting of the property during the ten
(1 O) 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 household for their homestead and approved by the Commumty
Development Office; and
b
The owner shall g~ve the city a first right of refusal to purchase the
ownership interest in the property flora the homeowner for the amount
specified in a firm contract between the homeowner and a prospective
buyer. The city shall have 10 business days alter 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 m~tiated The City
will make every effort to work with the homeowner to avoid foreclosure
and will examine each situauon on a case by case basts
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