Loading...
HomeMy WebLinkAboutPR 23808: OWNER-OCCUPIED HOUSING ASSISTANCE REHABILITATION AND RECONSTRUCTION PROGRAM INTEROFFICE MEMORANDUM HOUSING ASSISTANCE PROGRAMS Date: June 7, 2024 To: Ron Burton, CPM, City Manager Mayor and City Council From: Beverly A. Freeman, Manager of Housing &Neighborhood Revitalization Re: P.R. No. 23808—Owner-Occupied Housing Assistance Rehabilitation and Reconstruction Program NATURE OF REQUEST: The Housing Division recommends the City Council approve Proposed Resolution No. 23808 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: Pursuant to Resolution 23-474, the City of Port Arthur constructed a home at 1401 Trinity Avenue for Mr. Wilbert Lennette for $160,190.00, with an affordability period of 15 years, with a deferred forgivable loan amount of$160,190.00. Mr. Wilbert Lennette 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. BUDGETARY/FISCAL EFFECT: N/A RECOMMENDATION: The Housing Division recommends the City Council approve Proposed Resoluiton No. 23808 authorizing the City Manager to 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. 23808 6/07/24 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 WILBERT LENNETTE 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, pursuant to Resolution 23-474, the City of Port Arthur constructed the home located at 1401 Trinity Avenue at a cost of$160,190.00 with an affordability period of 15 years; and WHEREAS,Mr. Wilbert Lennette has now been deemed certified and eligible to participate in the Owner Occupied Housing Assistance Rehabilitation and Reconstruction Program for the property located at 1401 Trinity Avenue, with an affordability period of fifteen (15) years with a deferred forgivable loan amount of$160,190.00. 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 Wilbert Lennette for the property located at 1401 Trinity Avenue, and execute a Special Warranty Deed with a Vendor's Lien, in substantially the same form as attached hereto as Exhibits "A." Section 3. THAT, Wilbert Lennette will execute the Deed of Trust and Deferred Loan Written Agreement in substantially the same form as attached hereto as"B" 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: A'eA"---444----FX4LCA--)4 [i► S M. BLACK, 1 RIM CITY ATTORNEY APPROVEDir ►\INISTRATION: \ RON BURTON - ' r, CITY MA - ER LJ 0- �/ BEVERLY FREEMA , HO SING AND NEIGHBORHOOD ITALIZATION MANAGER EXHIBIT "A" 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: Wilbert Lennette Grantee's Mailing Address(including County): 1401 Trinity Ave 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 One Hundred Sixty Thousand One Ninety & 00/100 ($160,190.00) 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): TR 11-A Replat of all of LT 11 of MERREN ADDITION No. 2 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 1401 Trinity Ave, 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, CPM,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: Wilbert Lennette ACKNOWLEDGEMENT STATE OF TEXAS § COUNTY OF JEFFERSON § BEFORE ME,THE UNDERSIGNED Notary Public,on this day personally appeared Wilbert Len nette 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 P 0 Box 1089 Attn: Housing Dept. Port Arthur,Texas 77641 EXHIBIT " B " 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, Wilbert Lennette, 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: Tract 11-A, Replat of all of Lot 11 Merren Addition No.2 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 1401 Trinity 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 Wilbert Lennette and City of Port Arthur(hereinafter"Beneficiary"),a copy of which is attached hereto as Exhibit "C". 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$160,190.00 dated , 2024, executed by Wilbert Lennette, 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 final 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 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 Wilbert Lennette THE STATE OF TEXAS § § COUNTY OF JEFFERSON § This instrument was acknowledged before me on this day of , 2024 by Wilbert Lennette. 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 Exhibit "C " Deferred Loan Agreement A Deferred Loan Written Agreement Between The City Of Port Arthur And Wilbert Lennette For The Owner Occupied Housing Assistance Rehabilitation And Reconstruction Program STATE OF TEXAS § JEFFERSON COUNTY § § PROJECT NO: 24-1401 CITY OF PORT ARTHUR § This Agreement is made and entered into by and between Wilbert Lennette 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: 1401 Trinity Ave in PortArthur, Texas 77642 being more particularly described by its legal description as follows: Tract 11-A. Replat of all of Lot 11 (11) of Merren Addition No.2, 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 1401 Trinity Ave.) DISBURSEMENT OF FUNDS: The City entered into an agreement with Wilbert Lennette for the purchase of a home located at 1401 Trinity Ave, Port Arthur, Texas 77642. Wilbert Lennette will assume the responsibility of the remaining Affordability Period on the Property located at 1401 Trinity Avenue which is fifteen (15) years. Wilbert Lennette will also have a remaining deferred loan balance of One Hundred Sixty Thousand One Ninety Dollars and 00/100. ($160,190.00) 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: Tract 11-A, Replat of All of Lot 11 (11 ) of Merren Addition No. 2, 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 1401 Trinity 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 fifteen (15) 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 fifteen (15) 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. 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: Wilbert Lennette City of PORT ARTHUR 1401 Trinity Avenue Attn: City Manager Port Arthur, Texas 77642 P. O. Box 1089 Telephone: (409) 540-7829 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 Fifteenth (15th) 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. 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 14th day of Augusts 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: Wilbert Lennette Date: STATE OF TEXAS § COUNTY OF JEFFERSON § Before me the undersigned notary public, on this day personally appeared Ron Burton, CITY MANAGER, 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: STATE OF TEXAS § COUNTY OF JEFFERSON § Before me the undersigned notary public, on this day personally appeared Wilbert Lennette, 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: AFTER RECORDING RETURN TO: CITY OF PORT ARTHUR Housing Division: Attn: Beverly Freeman P.O.Box 1089,Port Arthur,Texas 77641