HomeMy WebLinkAboutPR 23673: ANDREA PETRY, OCCUPIED HOUSING ASSISTANCE REHABILITATION AND RECONSTRUCTION PROGRAM INTEROFFICE MEMORANDUM
HOUSING ASSISTANCE PROGRAMS
Date: March 12, 2024
To: Ron Burton, CPM, City Manager
Mayor and City Council
From: Beverly A. Freeman, Manager of Housing&Neighborhood
Revitalization
RE: P.R. 23673
NATURE OF REQUEST:
The Housing Division recommends the City Council approve Proposed Resolution No. 23673 authorizing the
City Manager to enter into a Written Agreement with a low to moderate-income applicant for participation in
the City for Port Arthur's Owner-Occupied Housing Assistance Rehabilitation and Reconstruction Program and
execute a Special Warranty Deed with Vendor's Lien.
Staff Analysis/Considerations:
The City of Port Arthur reconstructed the home belonging to Ms. Helen Provost on June 20, 2016, at
$94,262.00, with an affordability period of 15 years. However, Ms. Provost passed away on December 21,
2018.The Property was foreclosed and recaptured by the City on August 6,2020.
In accordance with the "Recapture Provisions" 24 C.F.R. Part 92.524(a)(5)(ii), homes assisted with the HOME
Program permit a subsequent low-income purchaser of a HOME-assisted homeownership unit to assume the
HOME loan and recapture obligation entered into by original owner. The subsequent, eligible applicant can
only assume the balance of the HOME Program assistance's existing loan and affordability obligations.
Andrea Petry has been certified and is qualified to participate in the Owner-Occupied Housing Assistance
Rehabilitation and Reconstruction Program as required by the U.S. Department of Housing & Urban
Development. As the subsequent eligible applicant, Ms. Petry will be responsible for completing the
affordability period remaining on 1240 Peek Avenue, of eleven (11) years, with a deferred forgivable loan
amount of$69,126.00.
BUDGETARY/FISCAL EFFECT:
N/A
RECOMMENDATION:
The Housing Division recommends the City Council approve Proposed Resolution No. 23673 authorizing the
City Manager to enter into a Written Agreement with a low to moderate-income applicant for participation in
the City for Port Arthur's Owner-Occupied Housing Assistance Rehabilitation and Reconstruction Program and
execute a Special Warranty Deed with Vendor's Lien.
P. R. No 23673
3/12/24 MH/BF
RESOLUTION NUMBER
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER
INTO A DEFERRED LOAN WRITTEN AGREEMENT BETWEEN
THE CITY OF PORT ARTHUR AND ANDREA PETRY FOR
PARTICIPATION IN THE CITY OF PORT ARTHUR'S OWNER-
OCCUPIED HOUSING ASSISTANCE REHABILITATION AND
RECONSTRUCTION PROGRAM AND EXECUTE A SPECIAL
WARRANTY DEED WITH VENDOR'S LIEN
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 23-206 (authorizing
submission of the 2023 Action Plan) has obligated itself to provide owner occupied rehabilitation and
reconstruction housing assistance to low and moderate income persons/families; and
WHEREAS, on June 20, 2016 City of Port Arthur reconstructed the home at 1240 Peek
Avenue for Helen Provost, at a cost of$94,262.00 with an affordability period of 15 years; and
WHEREAS, due to Ms. Provost's passing on December 21, 2018, the property was foreclosed
and recaptured by the City in accordance with H.U.D. regulations on August 6, 2020; and
WHEREAS, Andrea Petry has now been deemed certified and eligible to participate in the
Owner Occupied Housing Assistance Rehabilitation and Reconstruction Program for the property
located at 1240 Peek Avenue; and
WHEREAS, pursuant to 24 CFR 92.254 (a)(5)(ii), as the subsequent, eligible applicant, Ms.
Andrea Petry will be responsible to complete the remaining affordability period of eleven (11) years
with a deferred forgivable loan amount of$69,126.00.
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 City Council hereby authorizes the City Manager to enter into a Deferred
Loan Written Agreement between the City of Port Arthur and Andrea Petry for the property located at 1240
Peek Avenue, and execute a Special Warranty Deed with a Vendor's Lien, in substantially the same form as
attached hereto as Exhibits"A"and"B".
Section 3. THAT Andrea Petry will execute the Deferred Loan Written Agreement and Deed
of Trust, in substantially the same form as attached hereto as "A" and"C".
Section 4. 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., 2024 at a
Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES:
MAYOR
COUNCILMEMBERS
NOES:
THURMAN BARTIE,
MAYOR
ATTEST:
SHERRI BELLARD, CITY SECRETARY
APPROVED AS TO FORM:
Yy-
M. BLACK,
IN RIM CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
RON BURTON, CPM,
CITY MANAGER
BEVERLY FREEMAN, HOUSING AND
NEIGHBORHOOD REVITALIZATION MANAGER
EXHIBIT " A "
Deferred Loan Written Agreement
A Deferred Loan Written Agreement
Between The City Of Port Arthur And Andrea Petry
For The Owner Occupied Housing Assistance Rehabilitation
And Reconstruction Program
STATE OF TEXAS §
JEFFERSON COUNTY §
§ PROJECT NO: 24-1240
CITY OF PORT ARTHUR §
This Agreement is made and entered into by and between Andrea Petry of Port Arthur, Jefferson
County, Texas, (the Homeowner) and the City of Port Arthur, a municipal corporation located in
Jefferson County, Texas (the City). The current residence and the future residence ("Property") are
located at:
1240 Peek Avenue in PortArthur, Texas 77642 being more particularly
described by its legal description as follows: Lot Five (5) and Lot Six (6) Block
Two (2) of Belmont Heights, an addition to the City of Port Arthur, Texas, as
the same appears upon the map or plat therof, on file and of record in the Office
of County Clerk of Jefferson County, Texas. (Also known as 1240 Peek Ave.)
DISBURSEMENT OF FUNDS:
The City entered into an agreement with Andrea Petry for the purchase of a home located at 1240
Peek Avenue, Port Arthur, Texas 77640. Andrea Petry will assume the responsibility of the
remaining Affordability Period on the Property located at 1240 Peek Avenue which is eleven (11)
years. Andrea Petry will also have a remaining deferred loan balance of Sixty Nine Thousand One
Hundred Twenty Six Dollars and 00/100. ($69,126.00) in accordance with the requirements as
delineated in the HOME Guidelines and Regulations 24 Code of Federal Regulations Part 92. It is
expressly understood and agreed by the parties hereto that any right or remedy provided for in this
Section or in any other provision of this contract shall not preclude the exercise of any other right or
remedy under this contract or under any provision of law, nor shall any action taken in the exercise of
any right or remedy be deemed a waiver of any other rights or remedies. Failure to exercise any right
or remedy hereunder shall not constitute a waiver of the right to exercise that or any other right or
remedy at any time.
I. HOMEOWNER'S DUTIES AND RESPONSIBILITIES
In consideration of the remodeling and structural rehabilitation improvements more
specifically described as follows:
Lot Five (5) and Lot Six (6) Block Two (2) of Belmont Heights, an addition to
the City of Port Arthur, Jefferson County, Texas, as the same appears upon the
map or plat thereof, on file and of record in the Office of County Clerk of
Jefferson County, Texas. (Also known as 1240 Peek Avenue)
which will be improved at no cost to the Homeowner pursuant to means from award of HOME
Investment Partnership (HOME) Program funding to the City of Port Arthur, by the Department of
Housing and Urban Development (H.U.D.) from the City of Port Arthur, Homeowner hereby agree as
follows:
1.1 The Homeowner shall not transfer, assign, encumber or sell the home or an interest herein for a
period of eleven (11) years from the date of the final acceptance of all work required under the
Contract. Further, the Homeowner shall not sell, assign, encumber or transfer any of his/her
rights or obligations contained herein in whole or in part without the previous written consent of
the City. In the event that (I) the Homeowner sells, assigns, encumbers or transfers the Property
or (ii) the Homeowner dies prior to the expiration of the aforementioned eleven (11) years
period, the Homeowner hereby agrees and understands that his/her estate, whichever is
applicable, shall be liable to the City of Port Arthur for the amount of costs expended in the
rehabilitation based upon the following schedule in accordance with 24 Code of Federal
Regulations Part 92.254:
• If the Property is sold, assigned, transferred or encumbered or if the Homeowner
dies within the first nine (9) years one (1) month of the affordability period,
conveyance the Homeowner or his/her estate, as applicable, must repay one hundred
percent (100%) of the amount funded by the City of Port Arthur's HOME Program
in accordance with 24 Code of Federal Regulations Part 92 for the rehabilitation of
the home:
• If the Property is sold, assigned, transferred or encumbered or if the Homeowner
dies at any time during years eight (8) — seven (7) years and one (1) month of the
affordability period, the Homeowner or his/her estate, as applicable, are responsible
to reimburse eighty percent(80%) of the amount spent on the rehabilitation.
• If the Property is sold, assigned, transferred or encumbered or if the Homeowner
dies at any time during six(6)—five (5) years and one (1)month of the affordability
period, the Homeowner or his/her estate, as applicable, is responsible to reimburse
sixty percent(60%) of the amount spent on rehabilitation.
• If the Property is sold, assigned, transferred or encumbered or if the Homeowner
dies at any time during five (5) — four (4) years one (1) month of the affordability
period, the Homeowner or his/her estate, as applicable, is responsible to reimburse
forty percent(40%) of the amount spent on rehabilitation.
• If the Property is sold, assigned transferred or encumbered or if the Homeowner dies
at any time during four (4) — three (3) years and one month of the affordability
period, the Homeowner or his/her estate, as applicable, is responsible to reimburse
thirty percent(30%) of the amount spent on rehabilitation.
• If the Property is sold, assigned transferred or encumbered or if the Homeowner dies
at any time during three (3) — two (2) years and one month of the affordability
period, the Homeowner or his/her estate, as applicable, is responsible to reimburse
twenty percent(20%) of the amount spent on rehabilitation.
Such amounts shall be due and owing on the date the Property is sold, assigned,
transferred or otherwise encumbered. Failure to remit the appropriate amount owed
to the City of Port Arthur in a timely manner shall result not only in interest
calculated in accordance with Chapter 2351 of the Texas Government Code, but also
in the Homeowner or his/her estate, as applicable, being obligated to pay court costs
and all attorneys' fees expended by the City in order to collect the amount owed to
the City.
1.2 The Homeowner agrees not to make side contracts or any other agreement for additional work
on the premises, unless the same is approved by the City of Port Arthur in writing and duly
incorporated into the City of Port Arthur's Standard Form of Agreement for the HOME
Program between Homeowner and Contractor applicable to the Property (as identified in the
Construction Contracts)prior to such work being performed.
1.3 The Homeowner hereby agrees that throughout the term of this contract and during all
warranty applicable to the work performed under this contract, the Homeowner shall take all
necessary precautions to ensure:
1.3.1 the Property is clear of debris so as not to constitute a public nuisance pursuant to Chapter 33
of the Code of Ordinances of the City of Port Arthur;
1.3.2 the Property remains clear of all junked and abandoned vehicles in accordance with Chapter 28
of the Code of Ordinances of the City of Port Arthur;
1.3.3 all buildings, other than residences, on the Property shall be secure in compliance with Chapter
33 of the Code of Ordinances of the City of Port Arthur; and
1.3.4 the Property is free of all objects or conditions that constitute a possible and probable medium
of transmission of disease to or between human beings in accordance with Chapter 15 of the
Code of Ordinances of the City of Port Arthur.
II. INDEMNITY
IN CONSIDERATION OF THE REMODELING AND
REHABILITATION IMPROVEMENTS OF THE HOMEOWNER'S
PROPERTY AS DESCRIBED HEREIN ABOVE, THE HOMEOWNER
AGREES TO AND SHALL INDEMNIFY, HOLD HARMLESS AND
DEFEND THE CITY, ITS OFFICER, AGENTS AND EMPLOYEES
FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES, DAMAGES,
CAUSES OF ACTION, SUITS AND LIABILITY OF ANY KIND,
INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS, AND
ATTORNEYS' FEES FOR INJURY TO OR DEATH OF ANY PERSON,
OR FOR DAMAGE TO ANY PROPERTY ARISING OUT OF OR IN
CONNECTION WITH THE WORK DONE BY THE CONTRACTOR
UNDER THE CONSTRUCTION CONTRACT, THE WORK AND/OR
SERVICES PERFORMED BY THE CITY IN ANY WAY CONCERNING
THE PROJECT AND/OR THE HOMEOWNER PARTICIPATION IN
THE CITY'S HOMEOWNER OCCUPIED HOUSING ASSISTANCE
REHABILITATION AND RECONSTRUCTION PROGRAM, WHEN
SUCH INJURIES, DEATH OR DAMAGES ARE CAUSED BY (I) THE
CITY'S SOLE NEGLIGENCE OR THE JOINT NEGLIGENCE OF THE
CITY AND ANY OTHER PERSON OR ENTITY AND/OR (II) THE
JOINT OR SOLE NEGLIGENCE OF THE HOMEOWNER. IT IS THE
EXPRESSED INTENTION OF THE PARTIES HERETO, BOTH THE
HOMEOWNER AND THE CITY, THAT THE INDEMNITY PROVIDED
IN THIS PARAGRAPH IS INDEMNITY BY HOMEOWNER TO
INDEMNIFY AND PROTECT THE CITY, ITS OFFICERS, AGENTS
AND/OR EMPLOYEES OF THE CONSEQUENCES OF (I) THE CITY'S
OWN NEGLIGENCE, WHETHER THAT NEGLIGENCE IS THE SOLE
OR CONCURRING CAUSE OF THE INJURY, DEATH OR DAMAGE
AND/OR (II) THE HOMEOWNER OWN NEGLIGENCE, WHETHER
THAT NEGLIGENCE IS THE SOLE OR CONCURRING CAUSE OF
THE INJURY, DEATH OR DAMAGE.
IN THE EVENT THAT ANY ACTION OR PROCEEDING IS BROUGHT AGAINST THE CITY BY
REASON OF ANY OF THE ABOVE, THE HOMEOWNER FURTHER AGREES AND COVENANTS
TO DEFEND THE ACTION OR PROCEEDING BY LEGAL COUNSEL ACCEPTABLE TO THE
CITY.
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V. CITY'S OBLIGATION
5.1 The Homeowner understands that funds hereunder are from the United States Department of
Housing and Urban Development and are for the purpose of aiding persons of low to moderate
income in having, safe, decent, sanitary and affordable housing. The Homeowner understands
and agrees that he/she is subject to all provisions and regulations of the United States
Department of Housing and Urban Development in accordance to 24 Code of Federal
Regulations Part 92, Part 570 and 24 Code of Federal Regulations Parts 85.36 and 85.37
pertaining to expenditures of funds for this purpose.
VII.AMENDMENTS
This Contract represents the entire agreement of the parties hereto and may only be amended or
supplemented by mutual agreement of the parties hereto in writing.
VIII.VENUE AND CHOICE OF LAW
This Contract shall be performable in Port Arthur, Jefferson County, Texas. This Contract shall be
governed by and construed in accordance with the laws of the State of Texas.
IX.NOTICE
All notices required to be given hereunder shall be given in writing by tele-copier, overnight, or
facsimile transmission, certified or registered mail or by hand delivery at the respective addresses of
the parties set forth herein or at such other address as may be designated in writing by either party.
Notice given by mail shall be deemed given three (3) days after the date of mailing thereof to the
following address, as appropriate:
HOMEOWNER: CITY:
Andrea Petry City of PORT ARTHUR
1240 Peek Avenue Attn: City Manager
Port Arthur, Texas 77640 P. O. Box 1089
Telephone: (409) 250-0501 Port Arthur, TX 77641
Fax: N/A Telephone: (409) 983-8101
Fax: (409) 983-6743
X. TERM
Unless sooner terminated in accordance with the applicable provisions hereof, or extended by mutual
agreement approved by the City, the terms of this Contract shall be from the date hereof until the
expiration of the Eleventh (lath) year after final completion of the Project; however, it is expressly
understood and agreed that the provisions of Article II hereof shall survive the termination of this
Agreement and shall not expire. Other Project-related claims or disputes will be included in the terms
of Additional Services.
ar
XI. CORRECTNESS OF INFORMATION SUBMITTED IN ELIGIBILITY APPLICATION
Homeowner covenants and represents to the City that the Homeowner has examined the eligibility
requirements of the City's Homeowner Occupied Housing Assistance Rehabilitation and
Reconstruction Program that is designed in accordance with and based upon 24 Code of Federal
Regulations Part 92 and Part 570, and has submitted his/her application dated the 18th day of August.
2023 which by this reference is incorporated herein for all intents and purposes, for participation in
such program after certifying that all of the information so submitted is true and correct. It is expressly
understood and agreed among the parties hereto that should it be determined at any time by the City
that the application of the Homeowner contains incorrect or incomplete information, the Homeowner
shall be disqualified from the program and shall be required to repay the City for all expenses incurred
in accordance with 24 Code of Federal Regulations Part 92, 570 and 24 Code of Federal Regulations
Part 85.36 and 85.37 as a result of the work on the Project.
XII. GUIDELINES INCORPORATED BY REFERENCE
The Homeowner agrees to abide by all of the terms and conditions contained in the City of Port
Arthur's Homeowner Occupied Housing Assistance Rehabilitation and Reconstruction Program
Guidelines for Homeowners which was adopted by the City Council in accordance with 24 Code of
Federal Regulations Part 92, 570 and 24 Code of Federal Regulations Parts 85.36 and 85.37 on June
2019, via Resolution No. 19-277, and is incorporated herein by this reference—for all intent and
purposes.
XIV. ADDITIONAL TERMS
14.1 The Homeowner and the City expressly agree and understand that this Agreement shall
not create a partnership or joint venture between the Homeowner and the City.
14.2 Time is of the essence in this contract.
14.3 Notwithstanding anything to the contrary contained in this Agreement,the Homeowner and the
City hereby agree that no claim or dispute between the Homeowner and the City arising out of
or relating to this Agreement shall be decided by any arbitration proceeding including, without
limitation, any proceeding under the Federal Arbitration Act (9 U.S.C. Section 1 - 14), or any
applicable State arbitration statue, including, but not limited to, the Texas General Arbitration
Act, provided that in the event that the City is subjected to an arbitration proceeding
notwithstanding this provision, the Homeowner consents to be joined in the arbitration
proceeding if the Homeowner's presence is required or requested by the City of complete relief
to be recorded in the arbitration proceeding.
14.4 Failure of either party hereto to insist on the strict performance of any of the agreements
contained herein or to exercise any rights or remedies accruing thereunder upon default or
failure of performance shall not be considered a waiver of the right to insist on and to enforce
by an appropriate remedy, strict compliance with any other obligation hereunder to exercise
any right or remedy occurring as a result of any future default or failure of performance.
14.5 Should any of the provisions contained in any of the Contract Documents as defined in the
Construction Agreement be in conflict or inconsistent with each other, such conflict or
inconsistency shall be construed in favor of the City. Furthermore, both parties expressly agree
that the City, acting through the City Manager or the City Manager's appointee, shall be the
sole and final decision-maker should any conflict arise hereunder.
14.6 In the event of any ambiguity in any of the terms of this contract, such ambiguity shall not be
construed for or against any party hereto on the basis that such party did or did not author the
same.
14.7 All parties agree that should any provision of this Agreement be determined to be invalid or
unenforceable, such determination shall not affect any other term of this Agreement, which
shall continue in full force and effect. All parties share responsibility for approving changes to
work write up, and approving additional cost.
14.8 The persons executing this Agreement on behalf of the parties hereby represent that such
persons have full authority to execute this Agreement and to bind the party he/she represents.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple
copies, each of which shall be deemed to be an original, but all of which shall constitute but
one and the same Agreement on the day of , 2024, the date of execution by
the City Manager of the City of Port Arthur.
CITY: City of Port Arthur
Ron Burton, CPM, City Manager
APPROVED AS TO FORM:
James M. Black, Interim City Attorney
Applicant:
Andrea Petry
Date:
STATE OF TEXAS §
COUNTY OF JEFFERSON §
Before me the undersigned notary public, on this day personally appeared Andrea Petry,
HOMEOWNER, known to me (or proved to me on oath through her current drivers license
{description of identification card or other document issued by federal government or any state
government that contains this photograph and signature of the knowledging person} to be the person
whose name is subscribed to the foregoing instrument and acknowledged to me that he/she executed
the same for the purposes and consideration therein expressed.
SUBSCRIBED AND SWORN before me this day of , 2024.
Notary Public in and for the State of Texas
My commission expires:
Exhibit "B" :
Special Warranty Deed With Vendor's Lien
SPECIAL WARRANTY DEED WITH VENDOR'S LIEN
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU
MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM
ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE
IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY
NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
Date: ,2024
Grantor: City of Port Arthur
Grantors Mailing Address:
P.O.Box 1089
Port Arthur,Texas 77641
Jefferson County
Grantee: Andrea Petry
Grantee's Mailing Address(including County):
1240 Peek Avenue
Port Arthur,Texas 77642
Jefferson County
CONSIDERATION: For and in consideration of the sum of ten and No/100 dollars ($10.00) and other goods
and valuable consideration and a Deferred Loan Agreement executed on ,2024 that is in
the principal amount of Sixty Nine Thousand One Hundred Twenty Six Dollars & 00/100 ($69,126.00) and
the completion of the remaining affordability period and terms as delineated in the Deferred Loan Agreement
and if executed by Grantee, payable to the order of the City of Port Arthur, a body corporate and public under
the laws of the State of Texas, acting herein by and through its duly authorized officer. The note is secured by a
vendor's lien retained in favor of the City of Port Arthur, in this deed and by a deed of trust of even date from
Grantee to the City of Port Arthur,Trustee.
PROPERTY (including any improvement): Lots Five (5) and Six (6), Block Two (2) of Belmont Heights, an
addition to the City of Port Arthur, Jefferson County, Texas, as the same appears upon the map or plat thereof,
on file and of record in the Office of County Clerk of Jefferson County, Texas. (Also known as 1240 Peek
Avenue,Port Arthur,Texas)
RESERVATIONS FROM AND EXCEPTIONS TO CONVEYANCE AND WARRANTY: This conveyance is
made expressly subject to all easements, rights-of-way, restrictions, covenants, rights of reversion and
conditions as denoted and all exceptions reservations, and conveyances of minerals and/or royalties oil and gas
and/ or mineral leases, affecting the above described Property, and to all zoning laws, ordinances, rules and
regulations of municipal and/ or other governmental authorities, but only to extent that same are in force and
effect and relate to the above described Property. This conveyance is also made subject to all state and federal
laws and regulations, if any,affecting said Property though they may be unrecorded.
Grantor,for the consideration and subject to the reservation from any exceptions to conveyance and warranty,
grants sells and conveys to Grantee the Property, together with all and singular the rights and appurtenances
thereto in any wise belonging, to have and hold it to Grantee, Grantee's Heirs, executors, administrators,
successors, or assigns forever. Grantor binds Grantor and Grantor's Heirs, executors, administrators, and
successors to warrant and forever defend all and singular the Property to Grantee and Grantee's heirs, executors,
administrators, successors, and assigns, against every person whomsoever lawfully claiming or to claim the
same or any part there except as to the reservations from and exceptions to conveyance and warranty, when the
claim is by,through,or under Grantor,but not otherwise.
Grantee acknowledges that Grantor has not made and does not make any representations as to the physical
condition of the Property, or any other matter affecting or related to the Property(other than warranties of title,
as provided and limited herein). As a material part of the consideration for this deed, Grantee expressly agrees
that to the maximum extent permitted by law, the Property is conveyed "as is" and "with all faults", and
Grantor expressly disclaims, and Grantee acknowledges and accepts that Grantor has disclaims, any and all
representations, warranties, or guaranties of any kind, oral or written, express or implied (except as to title, as
herein provided and limited)concerning the Property, including,without limitation,the profitability, suitability,
or fitness for a particular purpose of the Property. Grantee acknowledges and stipulates that Grantee is not
relying on any representation, statement, or other assertions of the City with respect to the condition of the
Property,but is relying on Grantee's examination of the Property.
Executed on the ,day of ,A.D.,2024.
GRANTOR,City of Port Arthur
By:
Ron Burton,CPM,
City Manager
ACKNOWLEDGEMENT
STATE OF TEXAS §
COUNTY OF JEFFERSON §
BEFORE ME,THE UNDERSIGNED Notary Public,on this day personally appeared Ron Burton,
City Manager,known to me to be the person whose name is subscribed to the foregoing instrument.
GIVEN UNDER MY HAND AND SEAL OF OFFICE,this the day of ,2024.
Notary Public, State of Texas
AGREED TO AND ACCEPTED ON this the day of , 2024.
GRANTEE:
By:
Andrea Petry
ACKNOWLEDGEMENT
STATE OF TEXAS §
COUNTY OF JEFFERSON §
BEFORE ME,THE UNDERSIGNED Notary Public, on this day personally appeared Andrea Petry
known to me to be the person whose name is subscribed to the foregoing instrument.
GIVEN UNDER MY HAND AND SEAL OF OFFICE,this the day of , 2024.
Notary Public, State of Texas
Return to: City of Port Arthur
PO Box 1089
Attn:Housing Dept.
Port Arthur,Texas 77641
EXHIBIT "C "
Deed of Trust
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON,YOU MAY REMOVE OR
STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED
FOR RECORD IN THE PUBLIC RECORDS:YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVERS
LICENSE NUMBER.
DEED OF TRUST
CITY OF PORT ARTHUR OWNER OCCUPIED HOUSING
REHABILITATION AND RECONSTRUCTION PROGRAM
DEFERRED LOAN AGREEMENT
THE STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF JEFFERSON §
THAT, Andrea Petry, hereinafter referred to as "Grantor" for the purpose of securing the Deferred
Payment Loan hereinafter described, and in consideration of the sum of Ten Dollars($10.00)to us in hand paid
by the Trustee hereinafter named, the receipt of which is hereby acknowledged, and for the further
consideration of the used, purposes and trusts hereinafter set forth, have granted, sold and conveyed, and by
these presents do grant, sell and convey unto Ron Burton, (City Manager) Trustee, whose address is P.O.
Box 1089, Port Arthur, Jefferson County, Texas 77741, and his substitutes or successors, the following
described Property,to-wit:
Legal description: Lot Five (5) and Lot Six(6) Block Two (2) of Belmont Heights, an addition to the City of
Port Arthur, Jefferson County, Texas, as the same appears upon the map or plat thereof, on file and of record in
the Office of County Clerk of Jefferson County,Texas.(Also known as 1240 Peek Avenue)
The conveyance evidenced by this instrument is made subject to any and all easements, restrictions,
covenants,conditions and reservations of record, if any,applicable to all or any portion of the Property.
TO HAVE AND TO HOLD the above described Property, together with the rights, privileges and
appurtenances thereto belonging unto the said Trustee and to his substitutes or successors forever. And Grantor
does hereby bind Grantors heirs, executors, administrators and assigns to warrant and forever defend the said
premises unto the said Trustee, his substitute or successors and assigns forever, against the claim, or claims, of
all persons claiming or to claim the same or any part thereof.
This conveyance, however, is made in Trust to secure the performance of the obligations of Grantor
herein, Grantors successors, assigns, heirs, devisees, administrators and executors, as set forth in Deferred
Payment Loan (hereinafter "the Agreement") dated of even date herewith between Andrea Petry and at
of Port Arthur(hereinafter"Beneficiary"),a copy of which is attached hereto as Exhibit "B".
The lien hereof and any and all liens securing the Agreement secured hereby shall be and remain
subordinate to the liens, as renewed, extended, re-amortized, or otherwise adjusted from time to time, securing
that certain note in the original principal amount of$69,126.00 dated ,2024, executed by
Andrea Petry, payable to the order of City of Port Arthur, and filed for record under County Clerk of the
Official Public Records of Real Property of Jefferson County,Texas.
Should Grantor do and perform all of the covenants and agreements herein contained and comply with
all terms of the Agreement,then this conveyance shall become null and void and of no further force and effect,
and shall be released at the expense of Grantor, by the holder thereof, hereinafter called "Beneficiary" (whether
one or more).
GRANTOR COVENANTS AND AGREES AS FOLLOWS:
To notify Beneficiary of change of address.
That Grantor is lawfully seized of said Property, and has the right to convey the same; that said
Property is free from all liens and encumbrances, except as herein provided.
To protect the title from possession of said Property and to pay when due all taxes and assessments now
existing or hereafter levied or assesses upon said Property, to the interest therein created by this Deed of Trust,
and to preserve and maintain the lien hereby created as a first and prior lien on said Property including any
improvements hereafter made a part of the realty.
To keep the improvements on said Property in good repair and condition, and not to permit or commit
any waste thereof;to keep said buildings occupied so as not to impair the insurance carried thereon.
To maintain a standard mortgage clause in insurance policy that has a one (1) per cent deductible;to
insure and keep insured all improvements now or hereafter created upon said Property against loss or damage
by fire and windstorm, and flood at any time the Property is in a flood hazard area, and any other hazard or
hazards as may be reasonably required from time to time by Beneficiary during the term of the Agreement
hereby secured, to the extent required by Beneficiary, or to the extent of the full insurable value of said
improvements, whichever is lesser, in such form and with such insurance company or companies as may be
approved by Beneficiary and to deliver to Beneficiary the policies of such insurance having attached to said
policies such mortgage indemnity clause as Beneficiary shall direct; to deliver renewals of such policies to
Beneficiary at least ten (15) days before any such insurance policies shall expire; and any proceeds which
Beneficiary may receive under any such policy or policies, may be applied by Beneficiary, to comply with the
terms of the Agreement in such manner as Beneficiary may elect, or Beneficiary may permit Grantor to use said
proceeds to repair or replace all improvements damaged or destroyed and covered by said policy.
In the event Grantor shall fail to keep the improvements on the Property hereby conveyed in good
repair and condition, or to pay promptly when due all taxes and assessments, as aforesaid,to preserve the prior
lien of this Deed of Trust on said Property, or to keep the buildings and improvements insured, as aforesaid,
then Beneficiary; may make such repairs, pay such taxes and assessments, purchase any tax title thereon,
remove any prior liens, and to prosecute or defend any suits in relations to the preservation of the prior lien of
this Deed of Trust on said Property, or insure and keep insured the improvements thereon in an amount not to
exceed that above stipulated; that any sums which may be so paid out by Beneficiary and all sums paid for
insurance premiums, as aforesaid, including the costs,expenses and attorneys fees paid in any suit affecting said
Property when necessary to protect the lien hereof shall be paid by Grantor to Beneficiary upon demand, at such
place as may be designated in writing by Beneficiary, shall be deemed a part of the Agreement hereby secured
and recoverable as such in all respects. Any application or insurance proceeds under this Agreement shall be
subject and subordinate to the terms of the first lien Deed of Trust.
In the event on default in the performance of the Agreement hereby secured, in accordance with the
terms thereof or of a breach of any of the covenants herein contained to be performed by Grantor, or in the
event Grantor fails to pay any sums due or to become due on any indebtedness secured by prior liens on the
property herein conveyed, or fails in the performance of any conditions, agreements or covenants contained in
the prior lien security instrument, then and in any such events Beneficiary may elect, Grantor hereby expressly
waiving presentment and demand,to declare default on the performance of the Agreement;thereupon, or at any
time thereafter, it shall be the duty of the Trustee, or his successor or substitute as hereafter provided, at the
request of Beneficiary (which request is hereby conclusively presumed), to enforce this trust; and after
advertising the time, place and terms of the sale of the above described and conveyed property, then subject to
the lien hereof, and mailing and filing notices, as required by Section 51.002, Texas Property Code, as then
amended and otherwise complying with that statute, the Trustee shall sell the above described property, then
subject to the lien hereof, at public auction in accordance with such notices on the first Tuesday in any month
between the hours of ten o'clock A.M. and four o'clock P.M. to the highest bidder for cash, selling all of the
property as an entirety or in such parcels as the Trustee acting may elect, and make due conveyance to the
Purchaser or Purchasers, with general warranty binding Grantor, Grantors executors, administrators, heirs,
successors an assigns; and out of the money arising from such sale, the Trustee acting shall pay first, all the
expenses of advertising the sale and making the conveyance, including a commission of five percent (5%) to
Trustee, and then to Beneficiary the full amount due under the Agreement, attorney's fees and other charges due
and unpaid under said Agreement secured hereby, rendering the balance of the sales price, if any, to Grantor,
Grantor's heirs, executors,administrators, successors or assigns;and the recitals in the conveyance to Purchaser
or Purchasers shall be full and conclusive evidence of the truth of the matter therein stated, and all prerequisites
to said sale shall be presumed to have been performed, and such sale and conveyance shall be conclusive
against Grantor, Grantor's heirs,executors,administrators, successors or assigns.
In the event a foreclosure hereunder should be commenced by the Trustee, or his substitute or
successor, Beneficiary may at any time before the sale of said Property direct the said Trustee to abandon the
sale, and may then institute suit for performance of said agreement, and for the foreclosure of this Deed of Trust
Lien; it is further agreed that if Beneficiary should institute a suit for the enforcement thereof, and a foreclosure
of this Deed of Trust Lien, that Beneficiary may at any time before the entry of a fmal judgment in said suit
dismiss the same, and require the Trustee, Trustee's substitute or successor to sell the Property in accordance
with the provisions of this Deed of Trust or fulfill all rights or responsibilities of the Trustee.
In the event of a foreclosure or deed in lieu of foreclosure of the first lien deed of trust, any provisions
herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate
income households or otherwise restricting the Grantor's ability to sell the Property shall have no effect on
subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than
the Grantor or a related entity of the Grantor), receiving title to the Property through a foreclosure or deed in
lieu of foreclosure of the first lien deed of trust shall receive title to the Property free and clear from such
restrictions.
Beneficiary, if Beneficiary is the highest bidder, shall have the right to purchase at any sale of the
Property,and to have the amount for which such Property is sold credited on the Agreement.
Beneficiary in any event is hereby authorized to appoint a substitute trustee,to act instead of the Trustee
named herein without other formality than the designation in writing of a substitute or successor trustee; and the
authority hereby conferred shall extend to the appointment of other successor or substitute trustees successively
until the Agreement hereby secured has been fully satisfied, or until said Property is sold hereunder, and each
substitute trustee shall succeed to all of the rights and power of the original trustee named herein.
Beneficiary may apply any proceeds received under the insurance policy either to reduce the note or to
repair or replace damaged or destroyed improvements covered by the policy. If the Property is grantor's primary
residence and beneficiary reasonably determines that repairs to the improvements are economically feasible,
beneficiary will make the insurance proceeds available to grantor for repairs. Notwithstanding the terms of the
Note to the contrary, and unless applicable law prohibits, all payments received by beneficiary from grantor
with respect to the Note or this deed of trust may, at beneficiary's discretion,be applied first to amounts payable
under this deed of trust and then to amounts due and payable to beneficiary with respect to the Note, to be
applied to late charges,principal,or interest in the order beneficiary in its discretion determines.
In the event any sale is made of the above-described Property, or any portion hereof, under the terms of
this Deed of Trust, Grantor,Grantor's heirs,executors, administrators, successors and/or assigns, shall forthwith
upon the making of such sale surrender and deliver possession of the Property so sold to the Purchaser at such
Fr
sale, and in the event of their failure to do so they shall thereupon from and after making such sale be and
continue as tenants at sufferance of such Purchaser, and in the event of their failure to surrender possession of
said Property upon demand, the Purchaser, Purchaser's Heirs or assigns, shall be entitled to institute and
maintain an action for forcible detainer of said Property in the Justice of the Peace Court in the Justice Precinct
in which such Property,or any part thereof, is situated.
Nothing herein or in said Agreement shall ever entitle Beneficiary, upon the arising of any contingency
whatsoever, to receive or collect interest in excess of the highest rate allowed by the laws of the State of Texas
on any money obligation hereunder and in no event shall Grantor be obligated to pay interest thereon in excess
of such rate.
This Deed of Trust shall be binding upon and inure to the benefit of not only said parties respectively
but also their respective heirs,executors, administrators grantees, successors or assigns.
Should Grantor transfer, assign, convey, hypothecate or otherwise encumber the Property described
herein, or any interest therein, either legal or equitable, without the prior written consent of Beneficiary, such
transfer, hypothecation or encumbrance, without Beneficiary's prior written consent, shall be an element of
default hereunder and shall enable Beneficiary to exercise any and all remedies herein. As a condition to such
consent, however, Beneficiary shall have the right to approve any assignee or purchaser of any interest in the
Property herein described.
Grantor shall provide to Beneficiary, on or before January 31 of each year during the term of the
Agreement secured hereby, written evidence that all as valorem taxes and other assessments against the
Property have been paid in full.
The funds due Beneficiary under the terms of the Agreement represent a repayment for funds advanced
by Beneficiary as part of the purchase price of the Property and Grantor hereby confirms Beneficiary shall also
be secured by an equitable vendor's lien on the Property to the extent that such funds were used as purchase
money. Any such vendor's lien shall be second and inferior to the lien of
NONE ,together with all renewals, extensions, and modifications thereof, as such NONE Lien is
previously described herein.
EXECUTED this day of , 2024.
Grantor
Andrea Petry
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
This instrument was acknowledged before me on this_day of ,2024 by Andrea Petry.
NOTARY PUBLIC, STATE OF TEXAS
PRINTED NAME OF NOTARY
MY COMMISSION EXPIRES:
AFTER RECORDING RETURN TO:
CITY OF PORT ARTHUR
Housing Division
Attn:Beverly Freeman
P.O.Box 1089
Port Arthur,Texas 77641