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R-99-04-22-10B1 - 4/22/1999RESOLUTION NO. R- 99- 04- 22 -10B1 WHEREAS, the City has previously applied to the U.S. Department of Housing and Urban Development ( "HUD ") for Community Development Block Grant Program funds for specific projects and activities identified in the Fiscal Year 1998 -1999 Action Plan, and WHEREAS, the Home Ownership Assistance Program (HOAP) is Project 3 of the Fiscal Year 1998 -1999 Action Plan, and provides qualified, first time homebuyers with non - interest bearing loans for down payment and /or closing costs, and WHEREAS, the City Council wishes to accept and approve the eligibility guidelines and criteria for the HOAP, Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the City Council hereby accepts and approves the eligibility guidelines and criteria for the City of Round Rock Home Ownership Assistance Program. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, and the Act. K:\ wpnOcs \RESOLUn \asoaaasi.wno /ecg ATTEST: RESOLVED this 22nd day of April, 99. E LAND, City Secretary 2 CHARLES CUL•E-PER, Mayor City of Round Rock, Texas City of Round Rock Home Ownership Assistance Program (HOAP) Family Size Maximum Household Income Family Size Maximum Household Income 1 31,000 5 47,850 2 35,450 6 51,400 3 39,900 7 54,950 4 44,300 8 58,500 City of Round Rock Home Ownership Assistance Program The Home Ownership Assistance Program (HOAP) provides to qualified, first time, income eligible homebuyers a non - interest bearing, forgivable, non - assumable loan to be used to assist with purchasing their first home. Program assistance can be used for down payment and /or closing costs not to exceed $5,000, subject to the following income limitations. Upon future sale, lease, or transfer of title of the purchased home, the applicant will repay the principle loan amount to the Program from the sale or lease proceeds accordingly: Sale or lease of home during the first 2 years Sale or lease of home in year 3 Sale or lease of home in year 4 Sale or lease of home in year 5 Sale or lease of home after 5 years 100% repayment 75% repayment 50% repayment 25% repayment Loan forgiven The loan will be secured by a lien placed on the home for the term of sixty months. Reimbursed loans become program income and will be used to assist future eligible first -time homebuyers. Persons interested in participating in this program can obtain a Home Ownership Assistance Program packet from our office: 4/22./99 City of Round Rock HOAR Office of Community Development 221 East Main Street Round Rock, Texas 78664 Online applicants can print out copies of the required forms; however, the forms must be submitted to the office for processing. The website address is: http://www.ci.round-rock.tx.us/planning At least one applicant "fair" will be held at a location to be announced to allow citizens to apply, at which time applications will be distributed. Applications will be accepted from the general public on a first -come, first -serve basis subject to the criteria stated below. To be eligible for assistance, the customer must agree to all program requirements and restrictions including, but is not limited to the following: 1. Applicants must be first -time homebuyers or have not owned a home in the last 3 years. page 2 Family Size Maximum Household Income Family Size Maximum Household Income 1 31,000 5 47,850 2 35,450 6 51,400 3 39,900 7 54,950 4 44,300 8 58,500 2. Applicants must demonstrate that their annual household income does not exceed the maximum household income levels listed below (see table below). 3. The property being purchased must be located inside the Round Rock city limits (Property in the extra- territorial jurisdiction (ETJ) is ineligible). 4. The property being purchased must have been constructed no sooner than twelve months prior to the date of the loan application and be a single family residence (house, townhouse or condominium only) and must be the applicant's primary place of residence. Duplexes and manufactured homes are not eligible for assistance. 5. The purchase price of the home cannot exceed 95% of the median sales price for like homes in the Round Rock area (currently, the limit is $113,810). 6. Former occupants of the property being purchased cannot have been displaced. A signed Buver /Seller Certification of Purchase will be required. 7. The property must be in a condition to meet minimum City of Round Rock building codes (an inspection may be required). For property located in the Flood Plain, Buyers must obtain Flood Insurance. 8. Applicant must participate and complete Credit and Homeownership Counseling. A complete application package must be submitted to: The complete application package consists of: 4/22/99 City of Round Rock HOAP Office of Community Development: Att'n: HOAP Administrator 221 East Main Street Round Rock, TX 78664 • Application Checklist • receipted sales contract • copy of the lender's uniform residential loan application • copy of the Good Faith Estimate • copy of the last four paycheck stubs • copy of last three years' tax returns • copy of the Lead Based Paint Poisoning Prevention Notice for homes constructed before 1979 • original BUYER/SELLER CERTIFICATION OF PURCHASE signed by both buyer and seller. • original Certification Affidavit • verification of homeownership counseling prior to closing page 3 A letter of commitment (LOC) for the down payment assistance funds will be issued to the mortgage lender upon acceptance of the application package. This LOC will remain effective for a term of 30 days. One thirty (30) day extension may be requested. If the loan cannot be finalized in sixty (60) days, the LOC will be terminated. An applicant may reapply no sooner than 30 days after the letter of commitment has expired. The HOAP Administrator will review the applications and make an initial determination regarding the eligibility of the applicants. Applications meeting the program requirements will be referred to the independent HOAP Advisory Committee for review. Once approved, the City of Round Rock and applicant will enter into a loan agreement which stipulates the responsibilities of each party. Applicants not eligible to participate in the program will be notified in writing of the reason(s) his/her application did not qualify. The decision made by the Office of Community Development will be considered final. Loan Terms The loan shall be a non - interest bearing, forgivable, non - assumable loan. The loan shall be for a period of 60 months. The City of Round Rock shall be identified as a lienholder on the property for a period of five years. In the event the homeowner leases or sells the home, or defaults on the first mortgage during this period, the loan shall be repaid with interest according to the schedule identified in the loan agreement. If the homeowner still owns and resides in the property at the end of sixty months and has not defaulted on any terms set forth, the loan shall be forgiven and the lien removed. For more program information call 218 -5416 Fair Housing Information The Round Rock Homeownership Assistance Program will adhere to all fair housing requirements as detailed in the Fair Housing and Equal Opportunity Act, and the Americans with Disabilities Act. Applicants will be screened without regard to race, color, religion, sex, physical handicaps, familial status, national origin or age. All marketing for potential applicants for the downpayment assistance will contain the Equal Housing Opportunity logo and wording. To meet the needs of our bilingual community, project communication such as initial outreach and application intake for applicants will be in both English and Spanish. In all outreach efforts, the criteria for applicants will be detailed so as to maximize the efficiency of the application process. The following community outreach vehicles will be used: newspaper advertisements; newspaper articles; flyers posted or distributed around the community in places such as the Round Rock Public Library, the Round Rock Housing Authority, and social service agencies that serve low - income populations. 4/22199 City of Round Rock HOAP page 4 Buyer /Seller Certification of Purchase Date: Property Being Sold: Buyers Intent To Purchase I (Buyer) am a private individual interested in purchasing the property located at the above identified address. Please note that I will be applying for federal funds provided under the Down Payment Assistance Program, funded through the City of Round Rock. Although, federal funds may be involved in this transaction, you (Seller) understand that I do not have authority nor will I attempt to use the threat of eminent domain if we cannot reach a mutual agreement on the sale of the property. I understand approval of this certification by all parties is a condition to receiving City of Round Rock Down Payment Assistance. Sellers Certification Of Conditions I (Seller) am the owner of the above identified property and am voluntarily selling the property of my own free will. I certify that the last occupant of the property was not displaced in order to place the property for sale therefore, no displacement has occurred. I understand you (Buyer) will not evoke the threat of eminent domain and therefore I am not eligible for assistance under the Uniform Relocation and Real Property Acquisition Policies Act of 1970, as amended. In addition, I recognize the right of the Buyer to withdraw from the escrow contract with no penalty if the Buyer is not approved for this assistance. I (Seller) certify the property meets one of the following conditions (check one): ( ) ( ) ( ) ( ) Currently is or last occupied by myself before I placed it on the market to sell Had a previous tenant who moved out voluntarily when their lease expired or was evicted for due cause before the property was placed on the market Is being sold to the current tenant Is real estate owned by this institution which was vacant before a contract of sale was accepted Buyers /Sellers Acceptance And Authorization Of Intent To Purchase As witnessed by our signatures below, the Buyer and Seller of the above identified property, do acknowledge and accept the conditions as set forth in this certification document. We attest to the accuracy of the statements provided. We agree that the sale price offer of $ has been determined as the fair market value of the subject property, based on the unforced willingness of the Seller to sell and the unforced willingness of the Buyer to buy the subject property at the price so indicated. Buyer: Co -Buyer Date: Seller: Co- Seller Date: 4/22199 City of Round Rock HOAP page 5 Name Age Relationship Gross Mo. Income $ $ $ $ $ $ $ $ Certification Affidavit I (We) hereby submit the information contained in the attached Uniform Residential Loan Application, tax returns, and other furnished documents to be considered for the Round Rock Home Ownership Down Payment Assistance Program. Under penalty of law, I certify the home being purchased is located at Round Rock, Texas and the information contained in all required and signed program related documents being submitted is true and correct. I further certify that: 1. The house I (we) am purchasing is not a duplex or manufactured home; 2. The house I (we) am purchasing is located within the Round Rock city limits; 3. Neither I nor the Co- Applicant have owned a home in the last 3 years; 4. The house I (we) am purchasing will be my (our) primary place of residence for five years; and 5. The following is a list of all persons who will be occupying the home after closing: The undersigned agrees to release whatever information the State Attorney General determines to be publicly available. The undersigned agrees to allow the City and/or its designee, financial institutions, and other appropriate institutions to share information contained in this or their file for the purpose of Down Payment Assistance eligibility and related business. I understand that any discrepancy or omissions later found may disqualify me. If such a discrepancy or omission is discovered after closing, I understand that any financial assistance provided by the City of Round Rock may become due and payable. Applicant Date Co- Applicant Date 4/22/99 City of Round Rock HOAP page 6 Application Checklist Name: Property Address: Lending Institution: Contact Person: Phone: Real Estate Agent: Phone: A complete applications package must contain all the required information and documentation requested before the application will be considered. All applications will be time and date stamped and processed on a first come first serve basis. Copies of last 3 years Income Tax Returns (W2's are not sufficient) Last 4 paycheck stubs for all working members of the household. A copy of the completed Uniform Residential Loan application _ A copy of the Good Faith Estimate executed by the loan officer specific to the property being purchased (the required down payment amount must be identified on the Good Faith Estimate) A copy of the fully executed Sales Contract The original signed Buyer /Seller Certification of Purchase The original signed Certification Affidavit Signed Lead Based Paint Poisoning Prevention Notice Affidavit of home ownership counseling The Down Payment Assistance Administrator will issue a Conditional Letter of Approval to the mortgage lender after the applicant has been determined eligible to participate in the Program. 4/22/99 City of Round Rock HOAP page 7 Counseling Affidavit Applicant Name: Property Address: Lending Institution: Counseling Agency: Type of counseling provided: Pre Purchase Post Purchase Credit/Budget Counseling Agency Type of counseling provided: Agency signature: Life Works Consumer Credit Counseling Service 1221 West Ben White, Office No. 108A Austin, TX 78704 Phone: 512-447 -0711 Fax: 512444 -2025 Type of Counseling: pre - purchase Legal Aid of Central Texas 205 West 9' Street, Suite 200 Austin, TX 78701 Phone: 800 -369 -9270 Fax: 512-476-3940 Type of Counseling: pre - purchase, default Pre Purchase Post Purchase Credit/Budget , post - purchase, default, budget/credit Date: Date: Date: Date: Date: Date: Date: HUD approved Counseling agencies that provide free counseling services: Acorn Housing Corporation(*) 2132 Alpine Street Austin, TX 78704 Phone: 512 -444 -1207 Fax: 512 -444 -1315 Type of Counseling: pre - purchase, default, foreclosure ('J not HUD approved, but affiliate of one of the HUD funded National Intermediaries 4/22199 City of Round Rock HOAP page 8 Date: April 19, 1999 Subject: City Council Meeting - April 22, 1999 Item: 10.B.1. Consider a resolution adopting the eligibility guidelines and criteria for the City of Round Rock Home Ownership Assistance Program (HOAP). HOAP is Project 3 of the FY 1998 -99 Action Plan and is being funded with Community Development Block Grant (CDBG) monies. Staff Resource Person: Joe Vining, Planning Director.