HomeMy WebLinkAboutPR 18237: CITY MANAGER TO EXECUTE DEEDS OF TRUST FOR 4 HOMEOWNERS •
INTEROFFICE MEMORANDUM
HOUSING ASSISTANCE PROGRAMS
To: John A. Comeaux, P.E., Interim City Manager
From: Beverly Freeman, Acting Director of Housing and Neighborhood Revitalization
Date: March 11, 2014
Re: P.R. 18237
RECOMMENDATION:
The Housing Division recommends City Council adopt Proposed Resolution No. 18237 authorizing the
City Manager to execute the Deeds of Trust and Loan Agreements between the City and four (4)
Homeowners.
BACKGROUND:
The Department of Housing and Urban Development (HUD) annually awards Community
Development Block Grant (CDBG) and HOME Partnership Investment (HOME) funds to the City for
the primary benefit of low and moderate income persons /families. The City is obligated to provide
owner - occupied rehabilitation /reconstruction assistance to homeowners who are at 80% or below the
Area Median Income with unmet housing needs to eliminate health and safety hazards and preserve
and improve the community's housing stock.
The City of Port Arthur acts as an indirect agent pursuant to the CDBG and HOME Program
Guidelines.
BUDGETARY /FISCAL EFFECT:
N/A
STAFFING /EMPLOYEE EFFECT:
Housing Administration staff will be responsible for administering the contract.
SUMMARY:
The Housing Division recommends City Council adopt Proposed Resolution No. 18237 authorizing the
City Manager to execute the Deeds of Trust and Loan Agreements between the City and four (4)
Homeowners.
P. R. 18237
3/11/14 BF /DF
RESOLUTION NUMBER
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE THE DEEDS OF TRUST AND LOAN AGREEMENTS
BETWEEN THE CITY AND FOUR (4) HOMEOWNERS THAT ARE
CERTIFIED TO PARTICIPATE IN THE REHABILITATION AND
RECONSTRUCTION FEDERAL PROGRAM.
WHEREAS, the U.S. Department of Housing and Urban Development
annually awards Community Development Block Grant (CDBG) Program 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 92 and Part 570; and,
WHEREAS, the City Council, by its adoption of Resolution Number 13 -346
(authorizing submission of the 2013 Action Plan) has obligated itself to provide owner
occupied rehabilitation and reconstruction housing assistance to low and moderate income
persons /families; and,
WHEREAS, it is deemed in the best interest of the City of Port Arthur to
authorize the City Manager to execute the Deeds of Trust and Loan Agreements between
the City and four (4) homeowners for compliance measures, site preparation, and
reconstruction of the four (4) homes in substantially the same form as attached hereto as
Exhibit „ A ", "A -1 ", "B ", "B -1 ", "C ", "C -1 ", „ D ", "D -1 ".
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 the City Council hereby authorizes the City Manager to
execute the Deeds of Trust and Loan Agreements between the City and four (4)
homeowners for compliance measures, site preparation, and reconstruction of four (4)
homes in substantially the same form as attached hereto as Exhibit "A ", "A -1 ", "B ", "B -1 ",
"C", "C-1", "D", "D -1 ".
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 March, A.D., 2014 at a
Regular Meeting of the City Council of the City of Port Arthur, Texas by the following
vote: AYES:
MAYOR
COUNCILMEMBERS
NOES:
DELORIS "BOBBIE" PRINCE, MAYOR
ATTEST:
SHERRI BELLARD, CITY SECRETARY
APPROVED FOR FORM:
L / de .14∎
VAL TIZENO, CITY /A TTORNEY
APPROVED FOR ADMINISTRATION:
JOHN A. COMEAUX, P.E., INTERIM CITY MANAGER
BEVERLY FREEMAN "ACTI G DIRECTOR
OF HOUSING & NE % BORHOOD REVITALIZATION
APPROVED FOR AVAILABILITY OF FUNDS:
APLOISit(cita
DEBORAH ECHOLS, DIRECTOR OF FINANCE
EXHIBIT "A"
A Deferred Loan Agreement Between the
City of Port Arthur and Rosalene Ceprean for the Owner
Occupied Housing Assistance Rehabilitation and
Reconstruction Program
STATE OF TEXAS §
§
JEFFERSON COUNTY §
§ PROJECT NO: H14 -630
CITY OF PORT ARTHUR §
This Agreement is made and entered into by and between Rosalene Ceprean 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:
630 11th Street in Port Arthur, Texas, 77640;
being more particularly described by its legal description as follows: Lot 3
Block 38 , City of Port Arthur, 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 at Beaumont. (Also known as 630 llth Street)
The start date of the specified work will initiate within 10 days from the issuance of a notice to
proceed and approval of all insurance and bonding requirements as delineated in Section "G" of this
AGREEMENT AND CONTRACT, and furthermore, diligently pursue same until satisfactorily
completed on or before July 16, 2014, time being of the essence.
DISBURSEMENT OF FUNDS:
Pursuant to Resolution No. 14 -049, the City entered into an agreement with Rosalene Ceprean for the
reconstruction of a home located at 630 llth Street, Port Arthur, Texas 77640. These costs were
deemed eligible costs incurred under this contract in the amount of Ninety Six Thousand Seven
Hundred Forty Four Dollars and 45/100 ($96,744.45) in accordance with the requirements as
delineated in the HOME Program Regulations 24 Code of Federal Regulations Part 92, and 24 Code of
Federal Regulations Parts 85.36 and 85.37. 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 3 BLOCK 38, CITY OF PORT ARTHUR, 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 AT BEAUMONT. (ALSO KNOWN AS 630 11TH
STREET)
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 (HUD) 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) year 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 twelve (12) months following the date of final completion of the
rehabilitation, 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 2 — 5, 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 years 6 — 9, 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 years 10 — 13, 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 years 14 — 15, 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 2251 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 further agrees to cooperate with the Contractor in a reasonable manner so as
not to interfere with his performance under the Construction Contract, including, but not
limited to, the abandonment of limited areas of the property for reasonable period of time as
necessary for the satisfactory completion of the work required under the Construction Contract.
1.4 The Homeowner will make existing household utilities available to the Contractor without
charge. Such available utilities shall include 110 -volt electric power, gas, water, and local
telephone calls, if such utilities exist on the premises currently.
1.5 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:
1.6 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;
1.7 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;
1.8 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
1.9 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.
III. CREATION AND TRANSFER OF LIEN
3.1 To secure the prompt payment of the cost of the rehabilitation work, the Contractor's mechanic
and material -man' s lien is hereby granted and created for the benefit of the Contractor and the
City of Port Arthur upon the above - described real property, and all improvements, additions,
fixtures, and appurtenances now thereon or hereafter to be placed thereon in accordance with
this Agreement and the Construction Contract and as evidenced by the Housing Rehabilitation
and Reconstruction Lien signed by Homeowner and dated the February 24 , 2014 which by
this reference number is incorporated herein for all intents and purposes. In the event any
portion of the funding is not or cannot be lawfully secured by the lien given upon the herein
described property, it is agreed that any payment shall be applied first to the discharge of that
portion of the funds advanced which are not secured thereby.
3.2 The Homeowner hereby warrants and represents to the City that this Agreement is being
executed and delivered before the labor or materials for the erection and construction of
improvements have been furnished or delivered.
IV. APPOINTMENT OF HOMEOWNER'S REPRESENTATIVE
The Homeowner hereby appoints the City of Port Arthur's City Manager or his/her designee as
representative to make all decisions concerning the rehabilitation and/or demolition and
reconstruction of the property pursuant to the Construction Contract, including, but not limited to,
the following:
4.1 To prepare a Work Write -up Agreement with the Contractor specifying the work to be
performed pursuant to the City of Port Arthur's Homeowner Occupied Housing Assistance
Rehabilitation and Reconstruction Program;
4.2 To seek and obtain bids from contractors for the work specified in the Work Write -up
Agreement;
4.3 To review all bids received and select the responsible contractor deemed by the City of Port
Arthur to have presented the lowest bid;
4.4 To award, with approval of the City Council of the City of Port Arthur, a Construction
Contract for the repairs and rehabilitation to the above - described property;
4.5 To supervise the Contractor in carrying out the work specified in the Work Write -up
Agreement;
4.6 To make changes, additions and /or deletions to the Work Write -up Agreement as necessary to
carry out the intentions of the Work Write -up Agreement which are to repair and rehabilitate
the above - described property so that the structure meets the applicable codes of the City of Port
Arthur; and
4.7 To resolve all disputes arising between Homeowner and the Contractor in carrying out the
work specified in the Work Write -up Agreement.
V. CITY'S OBLIGATION
5.1 The City reserves the right to inspect the work of the Contractor, at a time chosen by the City.
5.2 The City reserves the right to approve cost, approve the work order and any subsequent
changes and to disburse funds for the remodeling, rehabilitation and demolition and
reconstruction of the premises as set forth above through the Homeowner Occupied Housing
Assistance Rehabilitation and Reconstruction Program of single - family, Homeowner - occupied
structures.
5.3 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.
VI. CONTRACTOR'S OBLIGATION
Contractor responsibilities include:
6.1 Rehabilitation, demolition and reconstruction work to follow work write up, and rehabilitation
standards, performance standards, construction specification, zoning ordinances, all applicable
local, Federal and State codes and ordinances;
6.2 To only make changes to the specified work with written approval from the City, through the
City Manager;
6.3 To be on the above stated scheduled and budget; and
6.4 To release liens.
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:
Rosalene Ceprean City of Port Arthur
3310 15th Attn: City Manager
Port Arthur, Texas 77642 P. O. Box 1089
Port Arthur, TX 77641
Telephone: 409.543.7188 Telephone: (409) 983 -8101
2" Telephone: 409.365.5358 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 (15 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 May 31, 2011,
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 Home 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
the 21 day of January, 2014, via Resolution No. 14 -030, and is incorporated herein by this reference
for all intent and purposes.
XIII. FIXTURES REMOVED DURING PROJECT
The Homeowner fully understands and agrees that all building materials, plumbing or electrical
fixtures that are removed by the Contractor and are not to be reinstalled in accordance with the Work
Write -up Agreement become the property of the Contractor, who may dispose of the property as he
may wish.
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 March, 2014, the date of execution by the
City Manager of the City of Port Arthur.
CITY: City of Port Arthur
John A. Comeaux, P.E., Interim City Manager
Date:
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Valecia Tizeno, City Attorney
HOMEOWNER:
Rosalene Ceprean, 630 11 Street
Date:
STATE OF TEXAS
JEFFERSON COUNTY §
CITY OF PORT ARTHUR §
Before me the undersigned notary public, on this day personally appeared Rosalene Ceprean,
HOMEOWNER, the owner of the structure to be rehabilitated, known to me (or proved to me on oath
through her current driver's 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 , 2014.
Notary Public in and for the State of Texas
Notary Printed Name
My commission expires:
EXHIBIT" A -1"
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, Rosalene Ceprean, 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 John A. Comeaux, P.E. (Interim 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 3 BLOCK 38, CITY OF PORT ARTHUR, 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 AT BEAUMONT. (ALSO KNOWN AS 630 11TH STREET)
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 Rosalene Ceprean and
City of Port Arthur (hereinafter "Beneficiary"), a copy of which is attached hereto as Exhibit "A ".
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 $96,926.45 dated , 2014 executed by
Rosalene Ceprean, 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 attorney's 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 Grantor shall 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 , 2014 .
Grantor
Rosalene Ceprean, 63011` Street
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
This instrument was acknowledged before me on this _ day of , 2014.
NOTARY PUBLIC, STATE OF TEXAS
PRINTED NAME OF NOTARY
MY COMMISSION EXPIRES:
AFTER RECORDING RETURN TO:
CITY OF PORT ARTHUR
Housing Division
P.O. Box 1089
Port Arthur, Texas 7764
Exhibit "B"
A Deferred Loan Agreement Between the
City of Port Arthur and Lawrence Lewis for the Owner
Occupied Housing Assistance Rehabilitation and
Reconstruction Program
STATE OF TEXAS §
JEFFERSON COUNTY §
§ PROJECT NO: H14 -3044
CITY OF PORT ARTHUR §
This Agreement is made and entered into by and between Lawrence Lewis 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:
3044 11 Street in Port Arthur, Texas, 77642;
being more particularly described by its legal description as follows:
Lot Two (2), Block Five Hundred Seventy -Two (572), Model Addition to the
City of Port Arthur, Jefferson County, Texas, as the same appears upon the map
or plat thereof on file and record in the Office of the County Clerk of Jefferson
County, Texas, at Beaumont.
The start date of the specified work will initiate within 10 days from the issuance of a notice to
proceed and approval of all insurance and bonding requirements as delineated in Section "G" of this
AGREEMENT AND CONTRACT, and furthermore, diligently pursue same until satisfactorily
completed on or before July 16, 2014 time being of the essence.
DISBURSEMENT OF FUNDS:
Pursuant to Resolution No. 14 -049, the City entered into an agreement with Lawrence Lewis for the
reconstruction of a home located at 3044 11 Street, Port Arthur, Texas 77642. These costs were
deemed eligible costs incurred under this contract in the amount of Ninety Six Thousand Nine
Hundred Twenty Six Dollars & 45/100 ($96,926.45) in accordance with the requirements as
delineated in the HOME Program Regulations 24 Code of Federal Regulations Part 92, and 24 Code of
Federal Regulations Parts 85.36 and 85.37. 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 Two (2), Block Five Hundred Seventy Two (572), Model Addition to the
City of Port Arthur, Jefferson County, Texas, as the same appears upon the map
or plat thereof on file and record in the Office of the County Clerk of Jefferson
County, Texas, at Beaumont. (Also known as 3044 11 Street)
which will be 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 (HUD) 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)
year 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 twelve (12) months following the date of final completion of the rehabilitation, 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 2 — 5, 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 years 6 — 9, 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 years 10 — 13, 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 years 14 — 15, 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 2251 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 further agrees to cooperate with the Contractor in a reasonable manner so as
not to interfere with his performance under the Construction Contract, including, but not
limited to, the abandonment of limited areas of the property for reasonable period of time as
necessary for the satisfactory completion of the work required under the Construction
Contract.
1.4 The Homeowner will make existing household utilities available to the Contractor without
charge. Such available utilities shall include 110 -volt electric power, gas, water and local
telephone calls, if such utilities exist on the premises currently.
1.5 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:
1.6 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;
1.7 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;
1.8 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
1.9 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.
III. CREATION AND TRANSFER OF LIEN
3.1 To secure the prompt payment of the cost of the rehabilitation work, the Contractor's mechanic
and material -man's lien is hereby granted and created for the benefit of the Contractor and the
City of Port Arthur upon the above - described real property, and all improvements, additions,
fixtures, and appurtenances now thereon or hereafter to be placed thereon in accordance with
this Agreement and the Construction Contract and as evidenced by the Housing Rehabilitation
and Reconstruction Lien signed by Homeowner and dated the 24th day of February, 2014,
which by this reference number is incorporated herein for all intents and purposes. In the event
any portion of the funding is not or cannot be lawfully secured by the lien given upon the
herein described property, it is agreed that any payment shall be applied first to the discharge
of that portion of the funds advanced which are not secured thereby.
3.2 The Homeowner hereby warrants and represents to the City that this Agreement is being
executed and delivered before the labor or materials for the erection and construction of
improvements have been furnished or delivered.
IV. APPOINTMENT OF HOMEOWNER'S REPRESENTATIVE
The Homeowner hereby appoints the City of Port Arthur's City Manager or his/her designee as
representative to make all decisions concerning the rehabilitation and/or demolition and
reconstruction of the property pursuant to the Construction Contract, including, but not limited to,
the following:
4.1 To prepare a Work Write -up Agreement with the Contractor specifying the work to be
performed pursuant to the City of Port Arthur's Homeowner Occupied Housing Assistance
Rehabilitation and Reconstruction Program;
4.2 To seek and obtain bids from contractors for the work specified in the Work Write -up
Agreement;
4.3 To review all bids received and select the responsible contractor deemed by the City of Port
Arthur to have presented the lowest bid;
4.4 To award, with approval of the City Council of the City of Port Arthur, a Construction
Contract for the repairs and rehabilitation to the above - described property;
4.5 To supervise the Contractor in carrying out the work specified in the Work Write -up
Agreement;
4.6 To make changes, additions and /or deletions to the Work Write -up Agreement as necessary to
carry out the intentions of the Work Write -up Agreement which are to repair and rehabilitate
the above - described property so that the structure meets the applicable codes of the City of Port
Arthur; and
4.7 To resolve all disputes arising between Homeowner and the Contractor in carrying out the
work specified in the Work Write -up Agreement.
V. CITY'S OBLIGATION
5.1 The City reserves the right to inspect the work of the Contractor, at a time chosen by the City.
5.2 The City reserves the right to approve cost, approve the work order and any subsequent
changes and to disburse funds for the remodeling, rehabilitation and demolition and
reconstruction of the premises as set forth above through the Homeowner Occupied Housing
Assistance Rehabilitation and Reconstruction Program of single - family, Homeowner - occupied
structures.
5.3 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.
VI. CONTRACTOR'S OBLIGATION
Contractor responsibilities include:
6.1 Rehabilitation, demolition and reconstruction work to follow work write up, and rehabilitation
standards, performance standards, construction specification, zoning ordinances, all applicable
local, Federal and State codes and ordinances;
6.2 To only make changes to the specified work with written approval from the City, through the
City Manager;
6.3 To be on the above stated scheduled and budget; and
6.4 To release liens.
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:
Lawrence Lewis City of Port Arthur
3044 11 Street Attn: City Manager
Port Arthur, Texas 77642 P. O. Box 1089
Port Arthur, TX 77641
Telephone: (214- 299 -0997 Son's #) Telephone: (409) 983 -8101
Fax: N/A 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 (15 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 1st day of August,
2011, 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 Home 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 the 21 day of January, 2014, via Resolution No. 14 -030 and is incorporated herein by this
reference for all intent and purposes.
XIII. FIXTURES REMOVED DURING PROJECT
The Homeowner fully understands and agrees that all building materials, plumbing or electrical
fixtures that are removed by the Contractor and are not to be reinstalled in accordance with the Work
Write -up Agreement become the property of the Contractor, who may dispose of the property as he
may wish.
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 , 2014, the date of execution
by the City Manager of the City of Port Arthur.
CITY: City of Port Arthur
John A. Comeaux, P.E., Interim City Manager
Date:
. ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Valecia Tizeno, City Attorney
HOMEOWNER:
Lawrence Lewis, 3044 11 Street
Date:
STATE OF TEXAS §
JEFFERSON COUNTY §
Before me the undersigned notary public, on this day personally appeared Lawrence Lewis
HOMEOWNER, the owner of the structure to be rehabilitated, known to me (or proved to me
through her current driver's 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 , 2014.
Notary Public in and for the State of Texas
EXHIBIT "B -1"
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 DRIVER'S
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, Lawrence Lewis, 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 John A. Comeaux, P.E., (Interim 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 Two (2), Block Five Hundred Seventy Two (572), Model
Addition to the City of Port Arthur, Jefferson County, Texas, as the same
appears upon the map or plat thereof on file and record in the Office of the
County Clerk of Jefferson County, Texas, at Beaumont. (known as 3044 11
Street)
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 Lawrence Lewis and
City of Port Arthur (hereinafter "Beneficiary "), a copy of which is attached hereto as Exhibit "A ".
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 $96,926.45 dated , 2014, executed by Lawrence
Lewis, 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 attorney's 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 Grantor shall 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 , 2014.
Grantor
Lawrence Lewis, 3044 11 Street
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
This instrument was acknowledged before me on this day of , 2014.
NOTARY PUBLIC, STATE OF TEXAS
PRINTED NAME OF NOTARY
MY COMMISSION EXPIRES:
AFTER RECORDING RETURN TO:
CITY OF PORT ARTHUR
Housing Department
P.O. Box 1089
Port Arthur, Texas 77641
Exhibit "C"
A Deferred Loan Agreement Between the
City of Port Arthur and Willie & Leola Cheatham for the
Owner Occupied Housing Assistance Rehabilitation and
Reconstruction Program
STATE OF TEXAS §
JEFFERSON COUNTY § PROJECT NO: H14 -500
CITY OF PORT ARTHUR §
This Agreement is made and entered into by and between Willie & Leola Cheatham 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:
500 E. 13 Street in Port Arthur, Texas, 77640;
Lot Six (6) Block Five Hundred Nine (509) , City of Port Arthur, Jefferson
County, Texas, according to the map or plat of said City of Port Arthur of
record in the office of the County Clerk of Jefferson County, Texas. (Also
known as 500 E. 13 Street)
The start date of the specified work will initiate within 10 days from the issuance of a notice to
proceed and approval of all insurance and bonding requirements as delineated in Section "G" of this
AGREEMENT AND CONTRACT, and furthermore, diligently pursue same until satisfactorily
completed on or before July 16, 2014 time being of the essence.
DISBURSEMENT OF FUNDS:
Pursuant to Resolution No. 14 -049, the City entered into an agreement with Willie & Leola
Cheatham for the reconstruction of a home located at 500 E. 13 Street, Port Arthur, Texas 77640.
These costs were deemed eligible costs incurred under this contract in the amount of One Hundred
One Thousand Eight Hundred Eighty Six Dollars & 08/100 ($101,886.08) in accordance with the
requirements as delineated in the HOME Program Regulations 24 Code of Federal Regulations Part
92, and 24 Code of Federal Regulations Parts 85.36 and 85.37. 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 Six (6) Block Five Hundred Nine (509) , City of Port Arthur, Jefferson County,
Texas, according to the map or plat of said City of Port Arthur of record in the office
of the County Clerk of Jefferson County, Texas. (Also known as 500 E. 13 Street)
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 (HUD) 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) year
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 twelve (12) months following the date of final completion of the
rehabilitation, 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 2 — 5, 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 years 6 — 9, 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 years 10 — 13, 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 years 14 — 15, 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 2251 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 further agrees to cooperate with the Contractor in a reasonable manner so as
not to interfere with his performance under the Construction Contract, including, but not limited
to, the abandonment of limited areas of the property for reasonable period of time as necessary
for the satisfactory completion of the work required under the Construction Contract.
1.4 The Homeowner will make existing household utilities available to the Contractor without
charge. Such available utilities shall include 110 -volt electric power, gas, water and local
telephone calls, if such utilities exist on the premises currently.
1.5 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:
1.6 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;
1.7 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;
1.8 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
1.9 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.
III. CREATION AND TRANSFER OF LIEN
3.1 To secure the prompt payment of the cost of the rehabilitation work, the Contractor's mechanic
and material -man's lien is hereby granted and created for the benefit of the Contractor and the
City of Port Arthur upon the above - described real property, and all improvements, additions,
fixtures, and appurtenances now thereon or hereafter to be placed thereon in accordance with
this Agreement and the Construction Contract and as evidenced by the Housing Rehabilitation
and Reconstruction Lien signed by Homeowner and dated the 24th of February, 2014, which
by this reference number is incorporated herein for all intents and purposes. In the event any
portion of the funding is not or cannot be lawfully secured by the lien given upon the herein
described property, it is agreed that any payment shall be applied first to the discharge of that
portion of the funds advanced which are not secured thereby.
3.2 The Homeowner hereby warrants and represents to the City that this Agreement is being
executed and delivered before the labor or materials for the erection and construction of
improvements have been furnished or delivered.
IV. APPOINTMENT OF HOMEOWNER'S REPRESENTATIVE
The Homeowner hereby appoints the City of Port Arthur's City Manager or his/her designee as
representative to make all decisions concerning the rehabilitation and /or demolition and
reconstruction of the property pursuant to the Construction Contract, including, but not limited to,
the following:
4.1 To prepare a Work Write -up Agreement with the Contractor specifying the work to be
performed pursuant to the City of Port Arthur's Homeowner Occupied Housing Assistance
Rehabilitation and Reconstruction Program;
4.2 To seek and obtain bids from contractors for the work specified in the Work Write -up
Agreement;
4.3 To review all bids received and select the responsible contractor deemed by the City of Port
Arthur to have presented the lowest bid;
4.4 To award, with approval of the City Council of the City of Port Arthur, a Construction
Contract for the repairs and rehabilitation to the above - described property;
4.5 To supervise the Contractor in carrying out the work specified in the Work Write -up
Agreement;
4.6 To make changes, additions and /or deletions to the Work Write -up Agreement as necessary to
carry out the intentions of the Work Write -up Agreement which are to repair and rehabilitate
the above - described property so that the structure meets the applicable codes of the City of Port
Arthur; and
4.7 To resolve all disputes arising between Homeowner and the Contractor in carrying out the
work specified in the Work Write -up Agreement.
V. CITY'S OBLIGATION
5.1 The City reserves the right to inspect the work of the Contractor, at a time chosen by the City.
5.2 The City reserves the right to approve cost, approve the work order and any subsequent
changes and to disburse funds for the remodeling, rehabilitation and demolition and
reconstruction of the premises as set forth above through the Homeowner Occupied Housing
Assistance Rehabilitation and Reconstruction Program of single - family, Homeowner - occupied
structures.
5.3 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 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.
VI. CONTRACTOR'S OBLIGATION
Contractor responsibilities include:
6.1 Rehabilitation, demolition and reconstruction work to follow work write up, and rehabilitation
standards, performance standards, construction specification, zoning ordinances, all applicable
local, Federal and State codes and ordinances;
6.2 To only make changes to the specified work with written approval from the City, through the
City Manager;
6.3 To be on the above stated scheduled and budget; and
6.4 To release liens.
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:
Willie & Leola Cheatham City of PORT ARTHUR
500 E. 13 Street Attn: City Manager
Port Arthur, Texas 77640 P. O. Box 1089
Port Arthur, TX 77641
Telephone (409) 433 -3364 Telephone: (409) 983 -8101
Fax: N/A 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 (15 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 have 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 7 day of
February, 2011, 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 Home 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 the 21st day of January, 2014, via Resolution No. 14 -030, and is incorporated herein by this
reference for all intent and purposes.
XIII. FIXTURES REMOVED DURING PROJECT
The Homeowner fully understands and agrees that all building materials, plumbing or electrical
fixtures that are removed by the Contractor and are not to be reinstalled in accordance with the Work
Write -up Agreement become the property of the Contractor, who may dispose of the property as he
may wish.
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 consent 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 , 2014, the date of execution by
the City Manager of the City of Port Arthur.
CITY: City of Port Arthur
John A. Comeaux, P.E., Interim City Manager
Date:
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Valecia Tizeno, City Attorney
HOMEOWNERS:
Willie Cheatham, 500 E. 11 Street
Date:
Leola Cheatham, 500 E. 11 Street
Date:
STATE OF TEXAS §
JEFFERSON COUNTY §
CITY OF PORT ARTHUR §
Before me the undersigned notary public, on this day personally appeared Willie & Leola
Cheatham, HOMEOWNER, the owner of the structure to be rehabilitated, known to me (or proved to
me on oath through her current driver's 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 , 2014.
Notary Public in and for the State of Texas
Notary Printed Name
My commission expires:
Exhibit "C-1"
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 DRIVER'S
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, Willie & Leola Cheatham, 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 John A. Comeaux,P.E., (Interim 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 Six (6) Block Five Hundred Nine (509) ,City of Port Arthur, Jefferson County,
Texas, according to the map or plat of said City of Port Arthur of record in the office of the County Clerk
of Jefferson County, Texas. (Also known as 500 E. 13 Street)
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 Willie & Leola
Cheatham and City of Port Arthur (hereinafter "Beneficiary "). a copy of which is attached hereto as Exhibit
" A 7
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 $101,886.08 dated , 2014 executed by Willie
& Leola Cheatham 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 attorney's 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 Grantor shall 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 , 2014.
Grantor
Willie Cheatham, 500 E. 11 Street
Leola Cheatham, 500 E. 11 Street
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
This instrument was acknowledged before me on this day of , 2014.
NOTARY PUBLIC, STATE OF TEXAS
PRINTED NAME OF NOTARY
MY COMMISSION EXPIRES:
AFTER RECORDING RETURN TO:
CITY OF PORT ARTHUR
Housing Division
P.O. Box 1089
Port Arthur, Texas 77641
Exhibit "D"
A Deferred Loan Agreement Between the
City of Port Arthur and John T. Anderson, Jr. and Barbara
Anderson for the Owner Occupied Housing Assistance
Rehabilitation and Reconstruction Program
STATE OF TEXAS §
JEFFERSON COUNTY § PROJECT NO: H14 -3101
CITY OF PORT ARTHUR §
This Agreement is made and entered into by and between John T. Anderson, Jr. and wife, Barbara
Anderson Port Arthur, Jefferson County, Texas, (the Homeowners) 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:
3101 Grand Avenue in Port Arthur, Texas, 77642;
Lot Twenty (20), Block Four (4), Park Place 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 at Beaumont.
The start date of the specified work will initiate within 10 days from the issuance of a notice to
proceed and approval of all insurance and bonding requirements as delineated in Section "G" of this
AGREEMENT AND CONTRACT, and furthermore, diligently pursue same until satisfactorily
completed on or before July 16, 2014, time being of the essence.
REIMBURSEMENT OF FUNDS:
Pursuant to Resolution No. 14 -049, the City entered into an agreement with John T. Anderson, Jr.
and wife, Barbara Anderson for the reconstruction of a home located at 3101 Grand Avenue, Port
Arthur, Texas 77640. These costs were deemed eligible costs incurred under this contract in the
amount of Ninety Five Thousand Four Hundred Fifty Five Dollars and 20/100 ($95,455.20) in
accordance with the requirements as delineated in the HOME Program Regulations 24 Code of
Federal Regulations Part 92, and 24 Code of Federal Regulations Parts 85.36 and 85.37. 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 Twenty (20), Block Four (4), Park Place 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 at
Beaumont. (Also KNOWN AS 3101 Grand Avenue, PORT ARTHUR,
TEXAS 77642.)
which will be improved at no cost to the Homeowners 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 (HUD) from the City of Port Arthur, Homeowners hereby agree as
follows:
1.1 The Homeowners 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 Homeowners shall not sell, assign, encumber or transfer any of their
rights or obligations contained herein in whole or in part without the previous written consent of
the City. In the event that (I) the Homeowners sell, assign, encumber or transfer the property or
(ii) the Homeowners die prior to the expiration of the aforementioned fifteen (15) year period,
the Homeowners hereby agree and understand that they or their estates, 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 Homeowners
die within the first twelve (12) months following the date of final completion of the
rehabilitation, the Homeowners or their estates, 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 Homeowners
die at any time during years 2 — 5, the Homeowners or their estates, 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 Homeowners
die at any time during years 6 — 9, the Homeowners or their estates, as applicable,
are responsible to reimburse sixty percent (60 %) of the amount spent on
rehabilitation.
• If the property is sold, assigned, transferred or encumbered or if the Homeowners
die at any time during years 10 — 13, the Homeowners or their estates, as applicable,
are responsible to reimburse forty percent (40 %) of the amount spent on
rehabilitation.
• If the property is sold, assigned transferred or encumbered or if the Homeowners die
at any time during years 14 — 15, the Homeowners or their estates, as applicable, are
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 2251 of the Texas Government Code, but also
in the Homeowners or the their estates, 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 Homeowners agree 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 Homeowners and Contractor applicable to
the property (as identified in the Construction Contracts) prior to such work being
performed.
1.3 The Homeowners further agree to cooperate with the Contractor in a reasonable manner so as
not to interfere with his performance under the Construction Contract, including, but not
limited to, the abandonment of limited areas of the property for reasonable period of time as
necessary for the satisfactory completion of the work required under the Construction Contract.
1.4 The Homeowners will make existing household utilities available to the Contractor without
charge. Such available utilities shall include 110 -volt electric power, gas, water and local
telephone calls, if such utilities exist on the premises currently.
1.5 The Homeowners hereby agree that throughout the term of this contract and during all
warranty applicable to the work performed under this contract, the Homeowners shall take all
necessary precautions to ensure:
1.6 Chapter 33 of the Code of Ordinances of the City of Port Arthur;
1.7 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;
1.8 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
1.9 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 HEREINABOVE, 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 HOMEOWNERS FURTHER AGREE AND COVENANT
TO DEFEND THE ACTION OR PROCEEDING BY LEGAL COUNSEL ACCEPTABLE TO THE
CITY.
III. CREATION AND TRANSFER OF LIEN
3.1 To secure the prompt payment of the cost of the rehabilitation work, the Contractor's mechanic
and material -man's lien is hereby granted and created for the benefit of the Contractor and the
City of Port Arthur upon the above - described real property, and all improvements, additions,
fixtures, and appurtenances now thereon or hereafter to be placed thereon in accordance with
this Agreement and the Construction Contract and as evidenced by the Housing Rehabilitation
and Reconstruction Lien signed by Homeowners and dated the 24 day of February ,2014,
which by this reference number is incorporated herein for all intents and purposes. In the event
any portion of the funding is not or cannot be lawfully secured by the lien given upon the
herein described property, it is agreed that any payment shall be applied first to the discharge
of that portion of the funds advanced which are not secured thereby.
3.2 The Homeowners hereby warrant and represent to the City that this Agreement is being
executed and delivered before the labor or materials for the erection and construction of
improvements have been furnished or delivered.
IV. APPOINTMENT OF HOMEOWNER'S REPRESENTATIVE
The Homeowners hereby appoint the City of Port Arthur's City Manager or his designee as their
representative to make all decisions concerning the rehabilitation and /or demolition and
reconstruction of the property pursuant to the Construction Contract, including, but not limited to,
the following:
4.1 To prepare a Work Write -up Agreement with the Contractor specifying the work to be
performed pursuant to the City of Port Arthur's Homeowner Occupied Housing Assistance
Rehabilitation and Reconstruction Program;
4.2 To seek and obtain bids from contractors for the work specified in the Work Write -up
Agreement;
4.3 To review all bids received and select the responsible contractor deemed by the City of Port
Arthur to have presented the lowest bid;
4.4 To award, with approval of the City Council of the City of Port Arthur, a Construction
Contract for the repairs and rehabilitation to the above - described property;
4.5 To supervise the Contractor in carrying out the work specified in the Work Write -up
Agreement;
4.6 To make changes, additions and /or deletions to the Work Write -up Agreement as necessary to
carry out the intentions of the Work Write -up Agreement which are to repair and rehabilitate
the above - described property so that the structure meets the applicable codes of the City of Port
Arthur; and
4.7 To resolve all disputes arising between Homeowners and the Contractor in carrying out the
work specified in the Work Write -up Agreement.
V. CITY'S OBLIGATION
5.1 The City reserves the right to inspect the work of the Contractor, at a time chosen by the City.
5.2 The City reserves the right to approve cost, approve the work order and any subsequent
changes and to disburse funds for the remodeling, rehabilitation and demolition and
reconstruction of the premises as set forth above through the Homeowner Occupied Housing
Assistance Rehabilitation and Reconstruction Program of single- family, Homeowner - occupied
structures.
5.3 The Homeowners understand 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 Homeowners understand
and agree that they are 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.
VI. CONTRACTOR'S OBLIGATION
Contractor responsibilities include:
6.1 Rehabilitation, demolition and reconstruction work to follow work write up, and rehabilitation
standards, performance standards, construction specification, zoning ordinances, all applicable
local, Federal and State codes and ordinances;
6.2 To only make changes to the specified work with written approval from the City, through the
City Manager;
6.3 To be on the above stated scheduled and budget; and
6.4 To release liens.
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:
John T. Anderson, Jr. and wife City of Port Arthur
Barbara Anderson Attn: City Manager
3101 Grand Avenue P. O. Box 1089
Port Arthur, Texas 77642 Port Arthur, TX 77641
Telephone: (409)549 -0542 Telephone: (409) 983 -8101
Fax: N/A 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 (15 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
Homeowners covenant and represent to the City that the Homeowners have 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 have submitted their application dated the 28 of June, 2011,
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 Homeowners contains incorrect or incomplete information, the Homeowners
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 Homeowners agree 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 Home 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 the 21st day of January, 2014 via Resolution No. 14 -030, and is incorporated herein by this
reference for all intent and purposes.
XIII. FIXTURES REMOVED DURING PROJECT
The Homeowners fully understand and agree that all building materials, plumbing or electrical fixtures
that are removed by the Contractor and are not to be reinstalled in accordance with the Work Write -up
Agreement become the property of the Contractor, who may dispose of the property as he may wish.
XIV. ADDITIONAL TERMS
14.1 The Homeowners 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 Homeowners and
the City hereby agree that no claim or dispute between the Homeowners 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 consent to be joined in the
arbitration proceeding if the Homeowners 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 , 2014, the date of execution by the City Manager
of the City of Port Arthur.
CITY: City of Port Arthur
John A. Comeaux, P.E., Interim City Manager
Date:
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Valecia Tizeno, City Attorney
HOMEOWNER: John T. Anderson, Jr.
John T. Anderson, Jr., 3101 Grand Avenue
Date:
HOMEOWNER: Barbara Anderson
Barbara Anderson, 3101 Grand Avenue
Date:
STATE OF TEXAS §
JEFFERSON COUNTY §
Before me the undersigned notary public, on this day personally appeared John T. Anderson,
Jr., HOMEOWNER, the owner of the structure to be rehabilitated, known to me through her current
driver's 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 , 2014.
Notary Public in and for the State of Texas
STATE OF TEXAS §
JEFFERSON COUNTY §
Before me the undersigned notary public, on this day personally appeared Barbara Anderson,
HOMEOWNER, the owner of the structure to be rehabilitated, known to me (or proved to me through
his current driver's 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 2014.
Notary Public in and for the State of Texas
Exhibit "D -1"
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE
ORSTRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED
FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S
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, John T. Anderson, Jr., and wife, Barbara Anderson, hereinafter referred to as "Grantors"
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 John A. Comeaux, P.E.,
(Interim 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 Twenty (20) Block Four (4), Park Place 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 the County Clerk of Jefferson County, Texas at Beaumont (also known as 3101 Grand 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 John T. Anderson, Jr.
and wife, Barbara Anderson and City of Port Arthur (hereinafter "Beneficiary"), a copy of which is attached
hereto as Exhibit "A ".
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 $95,455.20 dated , 2014, executed by John
T. Anderson, Jr. and wife, Barbara Anderson, 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 attorney 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 Grantor shall 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 , 2014.
Grantors
John T. Anderson, Jr., 3101 Grand Avenue
Barbara Anderson, 3101 Grand Avenue
THE STATE OF TEXAS §
COUNTY OF JEFFERSON §
This instrument was acknowledged before me on this day of , 2014.
NOTARY PUBLIC, STATE OF TEXAS
MY COMMISSION EXPIRES:
AFTER RECORDING RETURN TO:
CITY OF PORT ARTHUR
Housing Division
P.O. Box 1089
Port Arthur, Texas 77641