R-01-01-25-10A1 - 1/25/2001 RESOLUTION NO. R-01-01-25-10A1
WHEREAS, the City of Round Rock Home Ownership Assistance Program
(HOAP) is funded by Community Development Block Grant funds, 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
amended eligibility guidelines for the HOAP as found in the City of
Round Rock Home Ownership Assistance Program 2000-2001, a copy of which
is attached hereto and incorporated herein, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the City Council hereby accepts and approves the amended
eligibility guidelines for the City of Round Rock Home Ownership
Assistance Program, a copy of which is attached hereto and
incorporated herein.
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 .
RESOLVED this 25th day of Jan 001 .
v
RO T A. STLUKA, JR. Mayor
ATTEST: City of Round Rock, Texas
J E LAND, City Secretary
K:\WPDOCS\RESOLUTI\R10125A1.WPD/eC
City of Round Rock
Home Ownership Assistance Program
Program Year 2000 —2001
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 one-half of the down payment and eligible closing
costs up to and not to exceed $5,000 on an as needed basis. The applicant will not be permitted to
receive a reimbursement or cash back at closing.
Upon future sale, lease, or transfer of title of the purchased home, the applicant will repay the principal loan
amount to the Program from the sale or lease proceeds accordingly:
Sale or lease of home during the first 2 years 100% repayment
Sale or lease of home in year 3 75% repayment
Sale or lease of home in year 4 50% repayment
Sale or lease of home in year 5 25% repayment
Sale or lease of home after 5 years 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:
Office of Community Development
221 East Main Street, Ste. 316
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
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 lien holder on
the property. In the event the homeowner leases or sells the home, or defaults on the first mortgage during
this period, the loan shall be repaid 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.
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 down payment assistance will contain the Equal
Housing Opportunity logo and wording.
Revised 12123/00 City of Round Rock HOAP page 1
City of Round Rock
Home Ownership Assistance Program
Program Year 2000 —2001
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.
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 in the program guidelines.
Revised 12123/00 City of Round Rock HOAP page 2
City of Round Rock
Home Ownership Assistance Program Guidelines
Program Year 2000-2001
All funds must be applied toward the transaction. The applicant will not be permitted to receive a
reimbursement or cash back at closing. To be eligible for assistance, the applicant 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. (Displaced
single parent who deeded their share of homestead to an ex-spouse in a divorce settlement is
considered a first time buyer.)
2. Applicants must be income eligible. Total gross household income cannot exceed 80% of median
family income. See current maximum income levels listed below.
Family Size Maximum Household Family Size Maximum Household
Income Income
1 33,000 5 50,900
2 37,700 6 54,650
3 42,400 7 58,450
4 T 47,100 8 62,200
3. The property must be within the Round Rock city limits. Property in the extra-territorial jurisdiction
(ETJ) is ineligible. Municipal Utility Districts(MUDs)are not within the city limits.
4. The property being purchased must be a resale property, at least one year old at 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. For conventional loan only, the property must pass a HUD Housing Quality Standards
Inspection (HQS), performed by a certified HQS inspector prior to closing. This inspection
looks at health, safety, and security at their minimum standards and does not serve in lieu of
a structural inspection. All noted deficiencies must be repaired, and the same licensed
inspector must make a follow up inspection.
6. Property must meet regulations regarding Lead Base Paint(Prior to 1978)and no displacement of
exiting tenant.
7. The purchase price of the home cannot exceed 95%of the median sales price for like homes in the
Round Rock area ($133,000)with the current median being $140,000.
8. The applicant must be 18 years or older. If separated, an applicant is ineligible until the divorce is
final.
9. Former occupants of the property being purchased cannot have been displaced. A signed
Buyer/Seller Certification of Purchase will be required.
10. The total household liquid assets are limited to a verifiable total not to exceed $5,000 in checking,
savings, stocks, bonds, or mutual funds and total unimproved real estate assets limited to $10,000
in real estate property at the time the application is submitted. Retirement accounts are exempt.
11. The property being purchased must be the applicants' primary place of residence.
12. The applicant must qualify for a first lien mortgage loan from a recognized private lender.
13. The first lien loan must be a fully amortized loan for up to 30 years with an interest rate that does not
exceed the prevailing market rates for conforming loans.
14. Adjustable Rate Mortgages (ARMS), Balloon Payments,Wraparounds, Graduated Mortgage,
Negative Amortization or other non-traditional financing is NOT allowed under this Program. Buy
downs are permitted but cannot exceed the prevailing market interest rate at maturity.
15. 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.
16. Applicant must participate and complete Credit and Homeownership Counseling.
17. Certificate of Eligibility will be issued upon completion of all requested forms, documents,
and satisfactory property inspection.
Revised 12123/00 City of Round Rock HOAP page 3
City of Round Rock
HOAP Program Guidelines
Program Year 2000-2001
How to Apply:
1. The applicant must enter into a sales contract to purchase their first home, and
2. The applicant must have applied for a mortgage loan from a lending institution (Owner financing is
not eligible), and
3. The applicant must submit a completed current application,which includes the attached Application
Checklist and all listed documents, to the HOAP Administrator. Incomplete applications will not
be considered.
4. The eligible applicant will be issued a Certificate of Eligibility. The Lender must complete and
return the final approval, the appraisal, and the Document and Check Request Form with
Schedules "A". `B'; and"C"to the Office of Community Development a minimum of 10
working days prior to setting the date of closing,in order to timely process and obtain the loan
documents and check. Checks are released on Friday afternoons after 3:00 p.m. only.
5. The Certificate of Eligibility 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 Certificate of
Eligibility will be terminated. An applicant may reapply no sooner than 30 days after the
Certificate of Eligibility has expired.
6. The HOAP Program Administrator must review and approve the final HUD-1 closing statements
prior to funding. All funds must be applied toward the transaction. The applicant is not
permitted to receive a reimbursement or cash back at the time of closing.
7. Request for downpayment assistance after closing is not eligible.
For more information on the City of Round Rock
Homeownership Assistance Program (HOAP), please call
Mona Ryan,Community Development Coordinator at 218-5416, 8 a.m. to 5 p.m. or
Pam Porter, HOAP Program Assistant, 341-3320, 8:00 a.m. to Noon
Fax 218-7097
Or Write:
Homeownership Assistance Program (HOAP
221 East Main Street, Ste. 316
Round Rock,TX 78664
The City of Round Rock is committed to compliance with the Americans with Disabilities Act (ADA and
Section 504 of the Rehabilitation Act of 1973, as amended.) Reasonable modifications and equal access to
communications will be provided upon request. This publication is available in alt4ernative formats. Please
call 499-3100 (voice)or Relay Texas at 499-3102 or 1-800-0735-2989(TDD)for assistance. For sign
language interpreter, please call the Department of Human Resources at 218-5490 at least 4-5 days in
advance.
The City of Round Rock does not discriminate on the basis of disability in the admission or access to or
treatment or employment in their programs and activities. Hassan Farhat has been designated as the City's
Section 504/ADA Coordinator. His office is located at 221 East Main Street, 2"d Floor. If you have any
questions or complaints regarding your Section 504/ADA rights, please call the Section 504/ADA
Coordinator at 218-5643 (voice).
Revised 12123100 City of Round Rock HOAP page 4
City of Round Rock
HOAP Application Checklist
Program Year 2000-2001
* * DO NOT FAX COMPLETE APPLICATION
Applicant Name:
Property Address: Zip Code:
Lending Institution
Contact Person: Phone: Fax:
e-mail:
Real Estate Agent: Phone: Fax:
e-mail:
The complete application package must contain all the required information and documentation
requested before the application will be considered. All applications will be date stamped and
processed on a first-come first-serve basis. Incomplete application packages will be cancelled
after five (5) days.
_1. The original Application/Certification Affidavit (all blanks must be filled in)
• Address, Name, Age, Relationship, Gross Monthly Income (Regular, Overtime,
Bonuses, Commissions, fees, tips, and other compensation for personal services).
• Signed by applicant and co-applicant (on-purchasing spouse or man/woman in
common law must sign this affidavit.)
• Demographic information.
_2. The original BUYER/SELLER CERTIFICATION OF PURCHASE. Complete all blanks.
• Date, Address, and Amount
• Check property condition
• Must be signed by Buyer, Co-Buyer, Seller, and Co-Seller
_3. Copy of Certificate of Completion approved Homeownership Course.
• Certificate must be submitted with application to be considered.
• Homeownership course given by Lending institutions must be pre-approved by this
program.
_4. NOTICE: If home was built prior to 1978, prospective homeowners must receive the
HUD/EPA/CPSC pamphlet"Protect Your Family from Lead in Your Home"or an EPA
approved alternative; and, a disclosure form noting any known presence of lead-based
paint. [24 CFR 35.1010 (b); 24 CFR 35.130]
Revised 12123/00 City of Round Rock HOAP page 5
_5. A copy of the Good Faith Estimate executed by the LOAN OFFICER and BUYER specific
to the property being purchased. Identify the required down payment amount and type of
loan.)
• Loan - FHA, Conventional, VA, etc.
• Interest rate must not exceed the prevailing market rates for conforming loans. Sub-
prime mortgages are not eligible.
• Down payment, cash portion of the sales price payable by buyer at closing, must be
typed or written in the Good Faith Estimate (GFE).
• Good Faith Estimate must be signed by the Loan Officer.
• Property address must be specified on the GFE.
• Less Credits (POC)—Specify on the GFE items already paid by buyer, amount paid by
seller, gift or Lender's contribution.
_6. A copy of the Lenders Uniform Loan Application executed by Loan Officer.
• Submit a complete application with type of loan, amortization type, interest rate, and
fixed loan rate and signed by Loan Officer and Applicants.
_7. A copy of the fully executed Sales Contract.
• Sales Contract—Signature from Buyer and Seller. Contract MUST BE legible.
_8. Checking and/or Savings Account— Copies of the most current statements for all working
members of household.
• If Checking or savings account statements show a balance exceeding the amount
permitted by this program, the application will be denied.
• Must provide checking and savings account information on all working household
members or a signed statement if applicable.
_9. Copies of last four (4) paycheck stubs for all working members of the household.
• Must be the last four pay periods.
• If applicable, copy of recorded final Divorce Decree
_10. Signed copies of last three (3)years Income Tax Returns for all working members (W-2
forms are not sufficient.
• If a couple filed separately, tax returns must be provideed for each working member of
the household.
• Income Tax Returns filed electronically provide a print out from IRS.
_11. Housing Quality Standard Inspection Agreement. (Conventional loans only)
_12. Copy of Valuation Conditions Report and Clearance from Appraiser(For all FHA and VA
loans).
Revised 12123/00 City of Round Rock HOAP page 6
City of Round Rock
Housing Quality Standards Inspection Agreement
Program Year 2000-2001
For Conventional Loans Only
As an applicant for the City of Round Rock, Home Ownership Assistance Program (HOAP) hereby
agree to and understands the following:
1. A Housing Quality Standards (HQS) Inspection defined by the Department of Housing and
Urban Development (HUD) is required of each property purchased under the Down
Payment Assistance Program for Homeownership Assistance Program (HOAP). This
inspection will be performed by a HQS certified Inspector.
2. This inspection is a requirement of HUD and in no way should serve in lieu of a structural
inspection of the property. The City of Round Rock encourages the Buyer / Purchaser to
obtain a separate inspection or Report that addresses the structural integrity of the
property.
3. 1 understand that all repairs identified as necessary through the HQS Inspection must be
completed before the date of closing, as a condition of participation in this program. The
repairs may be undertaken through agreements with the seller, or through other means
determined to be acceptable in consultation with the City of Round Rock.
Follow up inspections will be required to assure that necessary repairs identified in the initial HQS
inspection are completed satisfactorily.
Purchased Property:
Applicant Signature Date
Revised 12123100 City of Round Rock HOAP page 7
Buyer/Seller Certification of Purchase
HOAP Down Payment Assistance Program
Program Year 2000 —2001
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
(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.
(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:
WARNING: Title 18, Section 10001 of the U.S. code states that a person is guilty of a felony for
knowingly and willingly making false or fraudulent statements to any department of the United
States Government.
Revised 12/23/00 City of Round Rock HOAP page 8
Certification/Application Affidavit
HOAP Down Payment Assistance Program
Program Year 2000 —2001
Submit affidavit with original signatures to this program
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 am (or,we are) purchasing is not a duplex or mobile home;
2. The house I am (or,we are)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 am (or, we are)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:
Name Age Relationship Gross Mo. Income
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
RACE/NATIONAL ORIGIN: RACE/NATIONAL ORIGIN:
American Indian American Indian
Afro-American Afro-American
Anglo Anglo
Asian Asian
Hispanic Hispanic
Other Other
Male Female Male Female
DISABLED DISABLED
Yes No Yes No Yes No Yes No
WARNING: Title 18,Section 10001 of the U.S. code states that a person is guilty of a felony for
knowingly and willingly making false or fraudulent statements to any department of the United
States Government.
Revised 12123/00 City of Round Rock HOAP page 9
Counseling Affidavit
Program Year 2000 —2001
Applicant Name:
Property Address:
Lending Institution:
Counseling Agency:
Type of counseling provided: Pre Purchase Date:
Post Purchase Date:
Credit/Budget Date:
Counseling Agency
Type of counseling provided: Pre Purchase Date:
Post Purchase Date:
Credit/Budget Date:
Agency signature: Date:
HUD approved Counseling agencies that provide counseling services:
Life Works
Consumer Credit Counseling Service
1221 West Ben White,Office No. 108A
Austin,TX 78704
Phone: 512-447-0711
Fax: 512-444-2025
Type of Counseling: pre-purchase,post-purchase,default,budget1credit
Legal Aid of Central Texas Acorn Housing Corporation(')
205 West 9`"Street,Suite 200 2132 Alpine Street
Austin,TX 78701 Austin,TX 78704
Phone: 800-369-9270 Phone: 512-444-1207
Fax: 512-476-3940 Fax: 512-444-1315
Type of Counseling: pre-purchase,default Type of Counseling: pre-purchase,default,foreclosure
(')not HUD approved,but affiliate of one of the HUD funded
National Intermediaries
Revised 12123/00 City of Round Rock HOAP page 10
Counseling Agencies in Austin
Acorn Housing Corporation Austin Tenant's Council
213 Alpine Street 1619 East Cesar Chavez
Austin, TX 78704 Austin, TX 78702
512-444-1207 512-474-7006
512-444-1315 fax 512-474-0197 fax
Type of Counseling: Pre-purchase, Type of Counseling: Rental
Default/Foreclosure
Legal Aid of Central Texas Lifeworks
205 West gth Street, Suite 200 1221 W. Ben White Blvd., Suite
800-369-9270 108A
512-476-3950 fax Austin, TX 78704-6888
Type of Counseling: Pre-purchase, 512-447-0711
Rental„Default/foreclosure 512-444-2025 fax
Type of Counseling: Consumer
Credit Counseling
Central Texas Homeward Bound Texas Department of Housing and
4631 Airport Blvd., Suite 127 Community Affairs (TDHCA)
Austin„ TX 78751 507 Sabine, Suite 900
512-459-6636 Austin, TX 78711-3974
512-453-8966 fax 512-475-1207
Type of Counseling: Pre-purchase 512-475-3992 fax
Type of Counseling:
Default/foreclosure, Rental, Pre-
purchase
NAACP Community Development
Resource Center
2209 Rosewood Ave.
Austin, TX 78702
512-477-5541
512-477-9820
Type of Counseling: pre-purchase
Revised 12123/00 City of Round Rock HOAP page 11
City of Round Rock
HOAP Application Processing
Program Year 2000-2001
HOAP application processing time Properly completed application received by Office of
Community Development HOAP program.
Incomplete application will not be processed.
I '
Up to 5 working days for City to: Determine eligibility.
Issue Certification of Eligibility.
Request the following:
1. Appraisal and written confirmation of Loan Approval;
2. Completed Document and Check Request Form with
Schedule A, B, and C.
Response time—Applicant's Appraisal, Written confirmation of loan approval,
Lender Schedules A, B, and C, and completed Document and
Check Request Form received by HOAP Administration
Request for Deed of Trust, Real Estate Lien Note, and
Down Payment Assistance check
Ten Working Days Required HOAP check and closing documents received
Final HUD —1 Settlement Statement must be approved
by HOAP Administration prior to releasing HOAP check
and documents
NOTE: CASH BACK TO BORROWER NOT
PERMITTED!
Revised 12123/00 City of Round Rock HOAP page 12
DATE: January 19, 2001
SUBJECT: City Council Meeting—January 25, 2001
ITEM: I O.A.1. Consider a resolution amending the guidelines and criteria for the
City of Round Rock Home Ownership Assistance Program
(HOAP). The down payment assistance program is funded by
Community Development Block Grant money. The program
guidelines have been amended for clarification of application
requirements.
Resource: Joe Vining, Planning Director
Mona Ryan, Community Development Coordinator
History: The original guidelines and criteria for the down payment assistance program
were adopted by the Council on April 22, 1999. R-99-04-22-1 OB 1 is attached.
Funding:
Cost: $100,000
Source of funds: Community Development Block Grant
Outside Resources: US Department of Housing and Urban Development
Impact: Amendments include:
• An increase in the maximum sales price of a home from $113,925 to
$133,000;
• Increased maximum household income limits;
• Clarification of allowable financing
• Additional document requirements for determining eligibility.
Benefit: The down payment assistance program provides a financial resource to income
eligible low and moderate income families in Round Rock who need help with
down payment and closing costs associated new home purchases.
Public Comment: Not required
Sponsor: Community Development Department