HomeMy WebLinkAboutPR 19991: RESCINDING RES #17-170, 1938 THOMAS BLVD. INTEROFFICE MEMORANDUM
HOUSING ASSISTANCE PROGRAMS
To: Brian McDougal, City Manager •
From: Beverly Freeman, Director of Housing and Neighborhood Revitalization 'No
Date: November 13, 2017
Re: P.R. 19991
Nature of Request:
The Housing Division recommends City Council approve Proposed Resolution No. 19991 authorizing
the City Manager to rescind the written agreement between a low and moderate income homeowner
and the City of Port Arthur for participation in the City's Owner Occupied Housing Assistance
Rehabilitation and Reconstruction Program.
Staff Analysis/Considerations:
The City of Port Arthur demolished and reconstructed a home at 1938 Thomas Boulevard, April 4,
2011. The construction cost was $65,925.65 with an affordability period of 15 years. The City of Port
Arthur foreclosed on the property located at 1938 Thomas Boulevard.
The HOME Program "Recapture Provisions", 24 Code of Federal Regulations Part 92.524(a)(5)(ii),
allows a subsequent low-income purchaser of a HOME-assisted unit to assume the HOME loan. The
recapture obligation entered into by the original buyer, permits the subsequent, eligible homebuyer
to assume only the balance remaining on the existing loan and affordability obligations if no
additional HOME assistance is provided to the subsequent buyer.
A low and moderate-income applicant had been identified, certified and was eligible to participate in
the Owner Occupied Housing Assistance Rehabilitation and Reconstruction Program as required by
the U.S. Department of Housing and Urban Development. Debra Robertson, subsequent, eligible
homeowner was going to assume and complete the affordability period of 9 years remaining on the
property located at 1938 Thomas Boulevard. The remaining loan balance is $40,850.23.
After all the paperwork had been finalized, Debra Robertson decided that in her current state of
health she would not be able to maintain the house and decided that the remaining 9 years of
affordability was too long of a period.
STAFFING/EMPLOYEE EFFECT:
Housing Administration staff will be responsible for administering the paperwork
Recommendations:
The Housing Division recommends City Council approve Proposed Resolution No. 19991 authorizing
the City Manager to rescind the written agreement between a low and moderate income homeowner
and the City of Port Arthur for participation in the City's Owner Occupied Housing Assistance
Rehabilitation and Reconstruction Program.
Budget Considerations:
N/A
P. R. 19991
11/13/17 BF/DF
RESOLUTION NUMBER
A RESOLUTION RESCINDING RESOLUTION NO. 17-170 IN ITS
ENTIRETY AS IT PERTAINS TO THE HOMEOWNER WRITTEN
AGREEMENT FOR THE ASSUMPTION OF THE PROPERTY
LOCATED AT 1938 THOMAS BOULEVARD, PORT ARTHUR,
TEXAS, THROUGH THE CITY'S HOMEBUYER'S ASSISTANCE
PROGRAM.
WHEREAS, pursuant to the Housing and Urban Development Act of 1974, the
Housing and Urban Development awards Annual Community Development Block Grant
(CDBG) Program funds and HOME Investment Partnership (HOME) Program funds to the City
of Port Arthur for the primary benefit of low and moderate income persons/families in
accordance with 24 Code of Federal Regulations Part 570 and Part 92; and
WHEREAS, the City Council, by its adoption of Resolution Number 16-061
(authorizing submission of the 2016 Action Plan) has obligated the City to provide owner
occupied rehabilitation and reconstruction housing assistance to low and moderate income
persons/families; and,
WHEREAS, Debra Robertson, a low and moderate income person, had been
certified as eligible to participate in the Owner Occupied Housing Assistance Rehabilitation
and Reconstruction Program as required by the U.S. Department of Housing and Urban
Development; and,
WHEREAS, as stated in the "Recapture Provisions" identified in 24 CFR 92.254
(a)(5)(ii) The City will recapture the remaining HOME loan and obligation entered into by
the original buyer; and,
WHEREAS, Debra Robertson WILL NOT assume ownership and complete the
remaining nine (9) years of the affordability period on the property located at
1938 Thomas Boulevard; and,
WHEREAS, Debra Roberson WILL NOT assume the remaining deferred
loan balance of Forty Thousand Eight Hundred Fifty Dollars & 23/100 ($40,850.23); and,
WHEREAS, the City Council deem it is appropriate to rescind Resolution No.
17-170 in its entirety.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PORT ARTHUR:
Section 1. THAT the facts and opinions in the preamble are true and
correct.
Section 2. THAT , Resolution #17-170 is hereby rescinded in its entirety.
Section 3. That a copy of the caption of this Resolution be spread upon
the minutes of the City Council.
READ, ADOPTED AND APPROVED this day of A.D., 2017 at
a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following
vote: AYES: MAYOR: ,
COUNCILMEMBERS: ,
NOES: .
DERRICK FREEMAN, MAYOR
ATTEST:
SHERRI BELLARD, CITY SECRETARY
APPROVED FOR FORM:
k./ rI41i.
VAL TIZ C 4"ATTO N'
APPROVED FO/ADMINISTRATION:
BRIAN MCDOUGAL, CITY MANAGER
BEVERLY FREEMAN, DIRECTOR OF
HOUSING AND NEIGHBORHOOD REVITALIZATION