HomeMy WebLinkAboutPR 18223: REVISIONS TO THE CITY'S HOUSING ASSISTANCE PROGRAM GUIDELINES FOR HOMBUYER ACTIVITIES INTEROFFICE MEMORANDUM
HOUSING AND NEIGHBORHOOD REVITALIZATON
TO: John A. Comeaux, P.E., Interim City Manager
FROM: Beverly A. Freeman, Acting Director of Housing and Neighborhood
Revitalization -
DATE: April 23, 2014 )t
RE: P.R. 18223
RECOMMENDATION:
The Housing Division recommends the City Council adopt Proposed Resolution Number
18223 authorizing a revision to the City of Port Arthur's Housing Assistance Program
Guidelines for homebuyer activities.
BACKGROUND:
Community Development Block Grant (CDBG) Program funds and HOME Investment
Partnership (HOME) Program funds are allocated annually to the City by the U.S.
Department of Housing and Urban Development to provide a Homebuyer Assistance
Program in accordance with 24 Code of Federal Regulations Part 570 and Part 92.
The City Council by authorization of Resolution Number 13 -346 has obligated the City to
provide a Homebuyers Assistance Program to assist qualified homebuyers of the City with
the purchase of a new construction or existing home and with down payment and closing
costs associated with the purchase of a home.
The following summarizes revisions in the Housing Assistance New Construction &
Existing Home Purchase Program Guidelines as recommended by the U.S. Department of
Housing & Urban Development as recommended by the U.S. Department of Housing &
Urban Development:
HOUSING ASSISTANCE NEW CONSTRUCTION & EXISTING HOME PURCHASE
ACTIVITIES
• Once an applicant is denied assistance, the applicant is eligible to re -apply for
assistance thirty (30) days after the date of the written denial.
BUDGETARY /FISCAL EFFECT:
No effect
STAFFING /EMPLOYEE EFFECT:
No effect
SUMMARY:
The Housing Division recommends City Council adopt Proposed Resolution Number
18223 authorizing the revision to the City of Port Arthur's Housing Assistance Program
Guidelines for homebuyer activities.
P. R. # 18223
April 23, 2014 — BAF /DKF
RESOLUTION NUMBER
A RESOLUTION AUTHORIZING REVISIONS TO THE
CITY'S HOUSING ASSISTANCE PROGRAM GUIDELINES
FOR HOMEBUYER ACTIVITIES.
WHEREAS, pursuant to the Housing and Urban Development Act of 1974
the Housing and Urban Development awards annual Community Development Block
Grant and HOME 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
Parts 570 and 92; and,
WHEREAS, Community Development Block Grant (CDBG) Program funds
and HOME Investment Partnership (HOME) Program funds are allocated annually to the
City by the U. S. Department of Housing and Urban Development (HUD) to provide a
Homebuyers Assistance Programs in accordance with 24 Code of Federal Regulations
Part 570 and Part 92; and
WHEREAS, the City Council by authorization of Resolution Number 13 -346
has obligated the City to provide a Homebuyers Assistance Program to assist qualified
homebuyers of the City with the purchase of a new construction or existing home and
with down payment and closing costs associated with the purchase of a home; and,
WHEREAS, it is now deemed necessary to revise the previous Housing
Assistance Program Guidelines for homebuyer activities as recommended by HUD; and,
WHEREAS, the following summarizes the revision to the City's Housing
Assistance Homebuyers Program Guidelines:
• Once an applicant has been denied assistance, the applicant is eligible to re-
apply for assistance thirty (30) days after the date of the written denial.
WHEREAS, the revised guidelines are attached hereto in substantially the same
form as Exhibit "A ".
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 Manager is hereby authorized to implement the
revised Housing Assistance Programs, New Construction and Existing Home Purchase
Program Guidelines that are attached hereto in substantially the same form as
Exhibit "A ".
Section 3. THAT a copy of the caption of this Resolution be spread upon
the minutes of the City Council.
READ, ADOPTED AND APPROVED this day of
A.D., 2014 at a Regular Meeting of the City Council of the City
of Port Arthur, Texas by the following vote: AYES:
MAYOR
COUNCILMEMBERS
NOES:
MAYOR
ATTEST:
SHERRI BELLARD,
CITY SECRETARY
APPROVED FOR FORM:
VALECIA 'IZE 1 •
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
JOHN A. COMEAUX, P.E.,
INTERIM CITY MANAGER
BEVERLY A. FREEMAN, ACTING DIRECTOR OF
HOUSING AND NEIGHBORHOOD REVITALIZATION
EXHIBIT "A"
CITY OF PORT ARTHUR
HOUSING AND NEIGHBORHOOD REVITALIZATION
HOUSING ASSISTANCE PROGRAMS
NEW CONSTRUCTION &
EXISTING HOME PURCHASE
PROGRAM GUIDELINES
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CITY OF PORT ARTHUR
HOUSING AND NEIGHBORHOOD REVITALIZATION
HOUSING ASSISTANCE PROGRAMS
NEW CONSTRUCTION & EXISTING HOME PURCHASE
PROGRAM GUIDELINES
PURPOSE
The overall objective is the development of viable communities by providing affordable
housing, promoting a suitable living environment and expanding economic opportunities,
primarily for low income persons and families in the City of Port Arthur.
In order to address the need for affordable housing, the City of Port Arthur established a New
Construction & Existing Home Purchase Program that is administered through the Housing and
Neighborhood Revitalization Department of the City of Port Arthur. The City of Port Arthur's
New Construction & Existing Home Purchase Programs are designed to provide direct financial
assistance primarily to low to moderate income persons. Through the utilization of Federal
and local funds, families will be given the opportunity to own a home of their own. The funds
are used to provide interim financing for construction and used to buy down mortgage interest
rates, pay closing costs and principle reduction. Participants must qualify for mortgage
financing through a lending institution, which utilizes standard underwriting procedures.
APPLICANT ELIGIBILITY REQUIREMENTS
To be eligible to receive homebuyer's assistance from the City of Port Arthur's New
Construction & Existing Home Purchase Program, applicants must meet the following
requirements:
1. Applicant(s) total projected annual gross household income must not exceed eighty
percent (80 %) of the current median income for the area, adjusted for family size, as
established by the U.S. Department of Housing and Urban Development (HUD).
2. Applicant(s) must not currently own a home.
Exceptions:
a. A single parent, defined as an individual who is legally separated or divorcing
from a spouse and has one or more minor children for whom the individual
has custody or joint custody, or who is pregnant at the time of application.
b. An individual or family whose principal residence during the twelve month
(12 month) period, prior to the purchase of a home using the City of Port
Arthur's Housing Assistance Program funds, is not affixed to a permanent
foundation, (i.e.: mobile home), in accordance with local or other applicable
codes and regulations.
c. An individual or family whose residence is not in compliance with local
building codes or other applicable codes, (i.e.: electrical wiring, plumbing,
extensive roof damage, damaged foundations), and the unit cannot be
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brought into compliance for less than the cost of building a permanent
structure.
d. An individual or family who desire to relocate to this community from a
different City, State or Country.
3. Applicant(s) must be a U.S. citizen or a permanent resident or possess a current work
authorization visa.
4. Permanent residents and individuals with work authorization visa must provide a copy
of both sides of their un- expired immigration documents from the Immigration and
Naturalization Services.
5. Applicant(s) must certify that he /she /they will occupy the unit as his /her /their primary
residence for the full term of the required period of affordability, as determined by the
amount of assistance received.
6. Applicant(s) must be able to obtain financing from a private or public lending source.
7. Applicant(s) may not have more than $2,500 plus three (3) month's gross income after
closing to qualify for down payment and closing costs assistance. Retirement funds in
IRS - recognized retirement accounts are excluded. (Disabled applicant(s) will be
evaluated on a case -by -case basis).
8. Applicant(s) requesting assistance must provide prior two (2) years income tax forms as
filed with the IRS, (a transcript is not acceptable). Completed forms retrieved from the
IRS will be accepted.
9. Applicant(s) may not receive cash back at closing.
10. Applicant's family size must be appropriate for the number of bedrooms in the
available unit. All dependents must have verifiable supporting documentation, (i.e.
birth certificate, social security card, and legal documentation of adoption or
guardianship, school records with matching address for children). Unborn children are
included.
11. Applicant(s) must successfully complete a minimum of eight (8) hours in a homebuyer's
counseling & training course by a HUD Certified Housing Counseling Agency.
12. Applicant(s) must provide proof of income; current and projected income will be used
to evaluate applicant's eligibility for assistance.
13. Applicant(s) must sign an authorization for release of information for verification of
employment, income and credit report.
14. While federal assistance (HOME or CDBG) cannot be provided to any applicant(s) with
a projected gross annual income above 80 percent of the area median income,
applicant(s) with a projected gross annual income at 81 to 120 percent may be eligible
to receive an interest free loan in the amount of $5,000 which may be used as subsidy
funding for down payment and closing costs assistance as identified in Resolution 02-
213; or, the funds may be utilized as a deferred grant to acquire land and perform site
preparations for new construction activities. Funding is provided through utilization of
the non federal funds. Funds are available at the discretion of the City Manager and or
his designees.
Applicant(s) meeting the criteria will be processed on a first come, first served basis, provided
the applicant has provided ALL of the required documents.
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No commitment is made or implied until the City of Port Arthur's Housing & Neighborhood
Revitalization Department has approved funding for each application.
Due to the funding limitations, no applicant should assume any commitment even when
applicant(s) must expend personal funds to meet application requirements.
Application Process
1. A funding availability notice shall be published in the media to alert additional
prospective applicants.
2. Interested applicants will be given an application form, requirement of verifications and
instructions for completion. The City's Housing & Neighborhood Revitalization
Department will explain the program requirements in detail at the time the application
is given to the applicants.
3. Upon receipt of a completed application, qualified applicants will be added to the
waiting list.
4. When an applicant reaches the top of the list, he /she will be contacted and required to
update all information on the application form, (federal regulations require applicants
information be updated every 6 to 12 months). If still eligible, applicants will be
required to complete a minimum of eight (8) hours in a Homebuyer's Education Course
sponsored by a HUD Certified Housing Counseling Agency. Upon successful completion
of the course, the applicants shall be directed to apply for a full mortgage approval.
Once qualified, the applicants will be encouraged to select a suitable and affordable
existing house or select a suitable home design for new construction, as applicable, and
submit an earnest money contract on the property, ($1,000.00 required for new
construction & $500 required for existing home purchase, unless otherwise designated
by the seller or representative of the property).
5. Applicant(s) falsifying or providing misleading information will be immediately
disqualified from participating in the programs.
DIRECT FINANCIAL ASSISTANCE
Eligible applicants earning 80 percent or less of the area median income may receive up to
$30,000.00 in direct financial assistance for new construction. This assistance will be limited to
applicants earning 80 percent of less of the area median income. This assistance shall not
exceed the difference between the maximum amount of a first mortgage from a private lender
and the selling price of the home plus closing costs.
When an existing house is purchased, eligible applicants may receive up to $10,500.00 in direct
financial assistance to be used for down payment and /or closing costs assistance. This
assistance will be limited to applicants earning 80 percent of less of the area median income.
This assistance will be used to fill the gap between the maximum amount of a first mortgage
from a private lender and the selling price of the home.
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LOAN APPLICATION PROCESS
1. Approval Process for Assistance
a. The signed earnest money contract, Homebuyers Certificate, required financial
information for the past two (2) years and two (2) current check stubs shall be
submitted to the Housing Administrator.
b. The Housing & Neighborhood Revitalization Staff will review the earnest money
contract and financial information; if applicant(s) are approved, a Commitment
Letter for the HOME or CDBG assistance will be issued.
c. The approved applicants will be given instructions to contact a financial
institution for a full mortgage loan approval.
2. Application — Lending Institutions
a. Applicant(s) seeking conventional, FHA or VA financing must contact a lending
institution of their choice and submit application. Housing & Neighborhood
Revitalization Staff shall provide technical assistance.
b. A written application, signed by the applicants, accompanied by the required
fees for the appraisal and credit report, etc., including other information
required by lender, shall constitute an application.
c. The Housing & Neighborhood Revitalization will issue a down payment
assistance letter of commitment to applicants to be given to the lender showing
the amount of assistance the applicants qualify for.
d. The Housing & Neighborhood Revitalization shall respect the decision of the
lenders to approve or reject any loan.
3. Loan Approval
a. The completed written loan data is reviewed by the lender and the loan is
either:
i. Approved.
ii. Conditionally approved, subject to additional terms; or
iii. Rejected.
b. Once notification of loan approval is received, applicants are required to provide
a loan commitment from the lending institution. The Housing & Neighborhood
Revitalization will issue a HOME Agreement, Resale & Recapture Provisions to
be signed by the applicants. The HOME Agreement, Resale & Recapture
Provisions stipulates that the applicants must remain in the home for a minimal
of five (5) years for existing home purchase and a minimal of ten (10) years for
new construction, based on the amount of assistance received. In case the
property is sold or rented within the period of affordability, the balance of the
HOME or CDBG subsidy funds provided is prorated and payable in full to the City
of Port Arthur.
4. Preparation for Loan Closing
All loans will close at a local Title Company.
a. Title Check
i. Firm commitment of loan approval is made.
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ii. Commitment of Title, property survey, and an estimate of yearly tax
assessment are ordered from a local title company.
iii. The applicants are instructed to provide information regarding his
property insurance coverage to the title company. It is required that the
City of Port Arthur be named as an additional "Loss Payee" on the
insurance policy along with the first mortgage lender for the purpose of
securing the interest invested in the property.
b. Legal Document Preparation
i. The title company forwards the Commitment of Title, survey, tax and
insurance information to the lender.
ii. The lender reviews the documents and forwards them to an attorney for
preparation of the loan documents.
iii. The lender's closing instructions, legal documents from the attorney and
a down payment assistance check are sent to the title company for loan
closing. The City of Port Arthur reserves the right to review the closing
documents prior to releasing the down payment assistance funds.
iv. The title company reviews the documents, completes the requirements
and sets a date for closing.
c. Loan Closing
The borrowers and sellers sign the legal documents at the title company; the
loan proceeds are disbursed and the transaction is completed. The Housing
Assistance Staff will provide adequate assistance to the homebuyer through the
entire process. It is required that the City of Port Arthur receive a copy of the
first mortgage lender's note, deed of trust, the HUD 1 Settlement Statement and
final appraisal.
PRE - EXISTING ELIGIBLE PROPERTIES
Properties must be a single family, owner - occupied residence. All properties participating in
the program require inspections by a City Certified Housing Inspector. The properties must
meet locally adopted Property Standards, the States most current International Residential
and Building Codes, and all other applicable State & Local Codes, including Lead Base Paint
Regulations prior to the closing of the loan. Rehabilitation, if any, must be completed prior to
the closing of the loan. As part of the inspections process, the City will request a Lead Based
Paint and Termite Inspection, provided the potential homebuyer has a full mortgage approval.
The applicant(s) must sign Notification: Watch Out for Lead -Based Paint Poisoning. The
applicants must receive a copy of Protect Your Family from Lead In Your Home, EPA747 -K -99-
001.
An Environmental Review Report (ERR) must be prepared by the Housing & Neighborhood
Revitalization Department.
The applicants must deliver and Seller must sign a Notice to Real Property Owner /Seller. An
executed copy of this document must be provided to the City.
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INSPECTIONS
The Port Arthur's Housing & Neighborhood Revitalization Department requires all properties
to be inspected by a Certified Inspector or a representative or agent appointed by the Housing
& Neighborhood Revitalization Department to determine if the properties meet the
acceptable criteria according to the Locally Adopted Property Standards, the State's
International Residential Codes and all other applicable State & Local Codes. The City of Port
Arthur's Housing & Neighborhood Revitalization Department reserves the right to perform its
own inspection of any unit prior to settlement.
LAND ACQUISITION AND SITE PREPARATION
Land will be acquired and provided to applicant(s) earning 80 percent or less of the area
median income. The cost of land and site preparation will be charged to the applicant(s).
Applicant(s) earning between 81 and 120 percent of the area median income can qualify to
receive funds for new construction activities in the form of a $5,000 / 10 -year / 0% interest
loan to assist with down payment and /or closing costs, as identified in Resolution 02 -213; or,
the $5,000 may be provided as a grant and may be used to buy lots from the City to construct
housing thereon. Funds are provided through utilization of non - federal funds. Funds are
available at the discretion of the City Manager or his designees.
MINIMUM /MAXIMUM HOME PROGRAM SUBSIDY AMOUNTS
The required minimum HOME Investment is $1,000 per unit; the maximum HOME Program per
unit subsidy (Section 221(d) (3) (ii) of the National Housing Act) is published and provided
annually by the U.S. Department of Housing & Urban Development.
The maximum value of a newly constructed unit cannot exceed the maximum allowed under
Section 203b of the National Housing Act.
The property must appraise for at least 100 percent or more of the sales price.
LOAN TERMS
Terms should be fixed where payments are affordable, based on the income per household.
The City of Port Arthur's Housing Assistance Division reserves the right to deny assistance to
those receiving extraordinarily high interest rates (11% and above). Applicants receiving such
rates will be recommended for further debt counseling.
GIFTS
Gifts can be used for down payment and closing cost assistance, if the donor is a family
member or a nonprofit organization with lending institutions permission.
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CREDIT HISTORY AND CREDIT REPORTS
A residential mortgage credit report or an in file credit report from an independent credit
reporting agency that meets the Program's or local lending institution's guidelines is required.
The Housing Assistance Division and the lenders should develop a credit history for borrowers
who normally do not use credit (establish nontraditional credit). Credit history may be
developed by verifications from utility companies, current and previous landlords, and other
sources of credit or services where the borrower was or is required to meet regular financial
obligations. The Housing Division shall review the credit history and credit reports, however,
derogatory ratings will not necessarily cause a negative response.
CLOSING COST AND /OR PRE - SETTLEMENT COSTS
Eligible applicants will receive direct financial assistance for closing costs and /or pre -paid
items. This assistance will be provided to the title company or other approved closing agent(s)
at the loan closing. No funds will be provided directly to the buyers.
MORTGAGE INSTRUMENTS
An attorney representing a local title company must draw up all closing papers. Current Fannie
Mae /Freddie Mac uniform instruments may be used. The city will provide the soft second
documents.
TITLE /HAZARD /FLOOD INSURANCE
Required on all loans. The minimum required amount of coverage must be sufficient to cover
all secured debt.
APPRAISALS
Required on all loans.
SURVEYS
Required on all loans.
HOMEBUYER EDUCATION
Borrowers must participate in a homebuyer's education program. Participation in the training
program will be documented in the loan file by a copy of the certificate issued by the training
agency.
BORROWER'S INCOME
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The borrower's projected annual gross household income, adjusted for family size cannot be
greater than 80 percent of the area median income as published by the U.S. Department of
Housing and Urban Development (HUD). Staff and lenders must verify all sources of income
for two full consecutive years in order to determine adequacy and continuance. All other
forms of employment will be reviewed upon a case -by -case basis.
Verification of alimony or child support income for qualifying purposes is not restricted to
divorce decrees or separation agreements. Other forms of verification are acceptable as long
as they verify the amount received, and can demonstrate two years of past history and the
continuation of income.
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PROGRAM SPECIFIC REQUIREMENTS
Recapture Provision
Homes acquired with HOME program funds have to satisfy the affordability requirements for a
time no less than the applicable period as indicated the table that follows, beginning after a
project has been completed.
During the affordability period, the following rules related to the buyers investment and the
HOME program funds are applicable:
• The dwelling acquired with the HOME subsidy will be the principal residence of the
participant and will not be rented or used for other purposes.
• The participant will not engage the property to obtain a mortgage, gift, sell or
exchange the property without the written consent of the Municipality of the City of
Port Arthur, Texas.
• The Municipality will inspect the property to assure that the participant is in
compliance with these requirements during the affordability period of the property.
• The non - compliance with the terms and condition mentioned in this provision will
obligate the participant to reimburse the total amount of the subsidy to the
Municipality.
• The affordability period of the property will be as follows:
Homeownership Assistance per Unit Affordability Period (Years)
Amount up to $30,000 10
Amount of $10,500 5
If the participant sells the property within the affordability periods and net proceeds are
sufficient to repay HOME Program Funds invested and homeowner investment, the
Municipality will recover the full amount of HOME investment only. The participant will
recover any amount for investments and apply the following formula for distribution of surplus
net proceeds.
Sale during affordability period Recapture amount of Share of net proceeds Down
Down Payment & Closing Payment & Closing Costs
Costs subsidy funds only Subsidy funds only
1— 5 years 100 % 75 %
6 —10 years 50 % 50 %
If the participant sells the property within any of the affordability periods, but net proceeds
are insufficient to repay HOME and homeowner investment, the Municipality will allow the
participant to recover its whole investment before recapturing HOME investments.
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Other requirements shall apply:
• The participants will pay up to $5,000 to cover the cost of legal service in case of
breaches of any of the terms and condition of this provision.
• The participant will allow that the HOME subsidy constitute a second mortgage to their
property.
• Specific documentation required to calculate HOME and net proceeds.
o Housing Unit Sale Price (Settlement Statement)
o Homeowner Investments — evidence of down payment, closing costs, payments
to principal, and any other capital investment to improve the housing unit
(original Settlement statement and Capital Expenditures Receipts.
o Once the documentation is presented, the Municipality will determine the
amount of the recapture on a case -by -case basis.
In addition to the recapture restrictions to be incorporated in the deed of sale and promissory
note, other provisions will be established to guarantee that the units remain affordable for
subsequent homebuyers. These provisions include the following considerations:
• A provision restricting refinancing and subsequent mortgages of the property, without
the written consent of the Municipality. Refinancing will be limited to capital
improvements without equity return. This restriction is necessary, as refinancing with
cash return will have the effect of reducing the profit at resale thus violating the
purpose of resale / recapture provisions. In addition, a higher monthly payment after
refinancing could represent a risk of foreclosure due to income adjustments.
• A requirement that the property will be used as the principal residence of the
homebuyer(s) will not be leased, converted, sold, donated, and permuted to other such
use without written consent of the Municipality.
The indebtedness evidence by the Note, and any other financial obligation which may
hereafter be imposed on borrower by the Lender, is subordinate to the indebtedness evidence
by a note payable to a senior lender ( "Senior Lien Holder "), which note is secured by a first
deed of trust (the "First Deed of Trust ") dated of even date therewith encumbering certain real
property located in Port Arthur, Texas (the "Property ").
In the implementation of the Homeownership Program, the Department will comply and will
require recipients to comply with the provisions of 24 CFR 92.217, Income targeting
Homeownership and 24 CFR 92.254, Qualifications as affordable housing.
Summary
The goals of our programs are to provide decent, safe and sanitary and affordable housing and
provide homeownership opportunities for low to moderate - income families and individuals.
Providing false or misleading information during the application process will be automatic
grounds for dis- qualification to participate in the Housing Programs. Once an applicant has
been denied assistance, the applicant is eligible to re -apply for assistance thirty (30) days after
the date of the written denial.
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GRIEVANCE PROCEDURE
City of Port Arthur Housing Assistance Programs
Should any applicant or participant of services from the Housing Assistance Division wish to file
a grievance against the City of Port Arthur pertaining to services received or applied for, they
may do so by the following procedure:
1) The person(s) filing the grievance may either verbally or in writing request an
appointment with the Housing Programs Administrator to present the complaint. At this
informal stage of the resolution process, the complaint may be presented either in written
form or verbally. It is the Division's intent to respond to and resolve the complaint as
practically & quickly as possible. A response to the complaint should be made no later than 10
working days from the date of receipt.
2) Should the response by the Housing Programs Administrator not be satisfactory to the
person(s) bringing the complaint, an appeal may be made directly to the Director of Housing &
Neighborhood Revitalization /Director of Development Services. At this stage of the resolution
process, the request for appeal and the complaint itself should be submitted in writing. The
complaint should fully describe the nature of the problem and contain all pertinent
information that may aid in understanding the scope of the problem. The Director of Housing
& Neighborhood Revitalization /Director of Development Services has option of meeting with
the person(s) involved before reaching a decision. A response to the complaint should be
made as expeditiously as practical, but no later than 10 working days from the date of receipt
of all written information provided or requested.
3) Should the response by the Director of Housing & Neighborhood Revitalization /Director
of Development Services not be satisfactory to the person(s) bringing the complaint, an appeal
may be made directly to the City Manager requesting review of the decision. The request for
appeal and review should be in writing. A response to the complaint should be made within
twenty (20) working days from receipt of the request for appeal to the City Manager.
The following list identifies the names, addresses, and telephone numbers of the persons to
contact to file a grievance:
Beverly A. Freeman, Housing Programs Administrator Ron Burton
Acting Director of Housing & Director of Development Services
Neighborhood Revitalization 3rd Floor, Room 336
2 Floor, Annex Room 203 444 4 th Street
444 4 th Street Port Arthur, Texas 77640
Port Arthur, Texas 77640 (409) 983 -8101
(409) 983 -8259
John A. Comeaux,
City Manager
4 th Floor, Room 410
444 4 th Street
Port Arthur, Texas 77640
(409) 983 -8135
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I (We), the undersigned, have read and understand the grievance procedure described
above which is to be used for the purpose of resolving any complaint relating to the
Housing Assistance Programs of the City of Port Arthur.
Applicant Date Co- applicant Date
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City of Port Arthur
Housing & Neighborhood Revitalization Department
REFUND POLICY
Homebuyer Fees:
$1,000 Housing Deposit (earnest money) — New Construction- Only if the City of Port Arthur is
constructing the home.
Existing Home Purchase — Please bring a copy of earnest money receipt after earnest money
have been submitted to the title company.
4 If a homebuyer cannot get an approval for a mortgage loan by a lending institution,
the homebuyer will receive a full refund of his or her housing deposit.
4 If the homebuyer get an approval for a mortgage loan by a lending institution and
the homebuyer changes his or her mind, the homebuyer will receive a refund of
90% of the housing deposit.
4 If homebuyer is rejected for loan or assistance due to falsification of information on
his or her application and has paid a housing deposit, the homebuyer will receive a
refund of 90% of the housing deposit.
4 Once the homebuyer signs an earnest money contract he or she will receive a 50%
refund of the housing deposit. The housing deposit is recorded as earnest money
when recorded at Title Company along with earnest money contract.
This refund policy does not cover any fees paid directly to lending institutions.
Normally, fees to lending institutions are nonrefundable.
Enhancement and Upgrade Escrow Funds:
Funds placed in escrow for enhancements and / or upgrades are nonrefundable once
construction has begun. If homebuyer changes mind prior to initiation of construction,
homebuyer will receive all but $100.00 of escrowed funds.
I have read, understand and accept the above terms:
Signed:
Applicant
Co- Applicant
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ACKNOWLEDGEMENT:
All homeowners, potential homebuyers and /or tenants should
receive a copy of the City Of Port Arthur's Housing &
Neighborhood Revitalization Programs Guidelines for the
Homebuyers Assistance Program and /or the Owner Occupied
Housing Assistance Rehabilitation and Reconstruction Program,
which contain information regarding the program rules and Federal
Regulations in accordance with 24 Code of Federal Regulations
Part 92 and 570.
and acknowledge
(Print Your Name) (Print Your Name)
I have received, read and understand the City of Port Arthur's
Homebuyers Assistance New Construction and Existing Home
Purchase Program Guidelines and /or the Owner Occupied
Housing Assistance Rehabilitation and Reconstruction Program
Guidelines.
Applicant
Co- Applicant
Date
1 5 REVISED APRIL 2014
OPPORTI.MITY