HomeMy WebLinkAbout133-99 RESOLUTION•
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X Agenda Request
Contract Review
Grant Review
For the City Council Meeting of
STAFF REVIEW FORM RECEIVED
OCT 0 5 1999
CITY OF FAYETTEVILLE
CITU CLERK'S OFFICE
October 19th, 1999
From:
James Nicholson
Name
Community Development
Division
Admin Services
Department
ACTION REQUESTED:
Agenda Request. Approval of an Offer and Acceptance Contract to sell the property known as 21 E
4th Street to the designated eligible Affordable Homeownership Program applicant.
COST TO THE CITY:
(CDBG)
$54,000.00 (revenue) (HOME grant)
Cost of this request
2180.0918.4910.00 (CDBG)
2180.0918.4920.00 (HOME grant)
Account Number
970081
Project Number
$37,516 (revenue)
$25,997 (revenue)
Project Budget
$32,139 (revenue)
$42,325 (revenue)
Funds used to date
($10,951) hep<av< t;
Remaining Budget
►y�9
Program Income
Category/Project Name
Housing Services
Program Name
Community Development
Fund
BUDGET REVIEW
dgeted Item
Budget oordinator
Budget Adjustment Attached
Administrative Services Director
CONTRACT/GRANT/LEASE REVIEW:
Ac itni o -a9 -qq
ager Date
q -aa �q
Purchasing Manager Date
.,
raptor Agency:
/0-S47
nal Auditor
Date
ADA Coordinator
Date
STAFF RECOMMENDATION:
Staff requests approval of sales contract
D
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ivi ion ad
4$-.r —Il Wy - -- COC i ti.11
Date AdmiWSvcs Director Date
Department Director Date
Nth
Ma or Date
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Fayetteville City Council U _,
From: Kevin Crosson, Administrative Services Director llfi f,
Date: September 29, 1999 �I""
Re: Offer and Acceptance Contract - Community Development Division
This property sale is through the Community Development Homebuyer Program The program
purchases substandard housing in a targeted area of our city with Community Development
Block Grant (CDBG) funds, rehabilitates those homes using a special HOME Investment
Partnership Program grant, and offers them for sale to eligible program applicants.
The goals of the program are ambitious; revitalization and preservation of the neighborhood,
moving renters to home ownership, better utilization of the grant funds by "recycling" sale
proceeds back into the program Program income from these home sales is prorated between the
CDBG and HOME grant funds as a percentage of the amount expensed on the project from each
fund. The PI monies are then spent on the current HOME & CDBG projects.
Applicants to the program must meet our income limits. These limits are set by HUD and
represent 80% of the area median income adjusted for family size. A program buyer must also
apply for and be approved for a mortgage loan through a private lending institution just like any
potential home buyer.
In conjunction with the acquisition/rehabilitation project we offer a down payment and closing
costs assistance grant to assist the purchaser to qualify for financing and to reduce their cost at
closing to an affordable sum. The down payment and closing costs grant is also an incentive for
our program applicants to attend a home buyers education workshop, an eight hour class which is
hosted by an associate organization, Family Service Agency, a division of Consumer Credit
Counseling Service. The course is designed to prepare potential home buyers for their purchase.
Although the program participant will purchase the property for market value, these housing
units are subsidized with the city's entitlement grant dollars. The subsidy is necessary due to
high cost of land in the city and because rehab constuction costs are more expensive than new
construction In this case, the direct project costs are $74,778 while the appraised value of the
property is $54,000, a subsidy of just over $20,000. This subsidy amount correlates with our
Housing Rehab program for existing homeowners, however we can accomplish a much more
comprehensive rehab job, plus provide a home buying opportunity for a modest income person
or family
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City of Fayetteville, Arkansas
DEFERRED LOAN AGREEMENT
This agreement executed this 29th day of October, 1999 between the City of
Fayetteville, hereinafter called the City and Regina Eilerts, hereinafter called the
Grantee.
In consideration of the mutual covenants herein, the parties agree as follows:
1. That the City shall provide the Grantee a loan in the amount of Seventeen
Thousand, Five Hundred and Fifty Three Dollars, ($17,553.00), representing the subsidy
to the Grantee(s) for the rehabilitation and down payment assistance of the existing
residential structure located at 21 East 4th Street being more particularly
described as:
Lot Numbered Four (4) in Block Numbered Three (3) of Jennings
Addition to the City of Fayetteville, Arkansas, as per Plat of
said Addition on file in the office of the Circuit Clerk of
Washington County, Arkansas Parcel # 765-07021
2. Grantee certifies that he/she intends to occupy this property as his/her
principal residence.
3. If the residence described above is sold, transferred, rented or otherwise
conveyed within a Seven, (7) year period, a.k.a. the "affordability period", Grantee
agrees to repay the loan in a manner satisfactory to the City, less any credit accrued
as follows:
For each year the Grantee personally occupies the residence, the total Deferred
Loan amount specified above will be reduced by FOURTEEN. AND THREE TENTHS OF A
PERCENT (14.3%) of the original amount.
The proceeds of said sale or conveyance shall be applied as follows; the Grantee is
permitted to recover his or her initial investment, plus capital improvements made
subsequent to the original sale, and, the remaining proceeds shall be applied to
satisfying the terms of this agreement. In the event proceeds from said sale equal an
amount over and above the amount necessary to return the Grantee's investment and
satisfy the terms of this agreement, the additional amount shall be split between the
Grantee and the City as follows; Grantee 75%, City 25%.
4. If the residence described above is sold, transferred, or otherwise conveyed to
an income eligible household during the affordability period described in paragraph
3., the Grantee may at his or her option, and with permission in writing from the
City, transfer the mutual covenants and remaining term of the affordability period
plus (+) three (3) years, but no less than seven (7) years total, to the subsequent
buyer or transferee. Income eligible household is described as a household having a
combined adjusted gross annual income, as defined in the federal income tax IRS form
1040, at or below 80% of the area median income adjusted for family size.
5. In the event of default and non-payment of the balance due by Grantee, the City
shall have the power to offer the property at public sale to the highest bidder for
cash. Public notice of the time and place of said sale having first been given ten
(10) days in advance by advertising in a newspaper of general publication in the City
of Fayetteville, at which sale the City may bid and purchase as any third person might
do. The proceeds of said sale shall be applied, first, to the payment of all costs and
expenses attending said sale, and second, the Grantee is permitted to recover their
initial investment plus capital improvements made subsequent to the original sale,
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lastly, the remaining proceeds shall be applied to satisfying the terms of this
agreement.
During the term of this agreement the Grantee shall;
Insure all insurable property encumbered hereby against such hazards and
in such amounts and under such form of policies, as shall be acceptable
to the City for the term of this Agreement; the Grantee shall supply a
copy of a current Certificate of Insurance to the City once annually for
the term of this agreement as described in paragraph 3.
b. Protect the property from damage, deterioration, and waste including
hazardous waste and to make all replacements and repairs necessary to
keep the property in good physical condition;
c. Prevent the property from becoming encumbered by any lien or charge
having priority over the lien of this Agreement. This Agreement shall not
be subordinated to any subsequent lien, other than those which are
perfected in the original financing arrangement of the property. In the
event the Grantee(s) refinances the property, he/she agrees to repay the
Deferred Loan in full, less any credit accrued at the rate stipulated in
Paragraph 3.,of this agreement.
7. The failure of the City or Grantee to enforce any term or provision, or right
given in this agreement at the time of any default, shall not be a waiver to enforce
same at a later date.
8. The Grantee covenants and agrees that he/she will comply with all requirements
imposed by regulations of Title VI of the Civil Rights Act of 1964. Grantee agrees
not to discriminate upon the basis of race, color, religion, sex, or national origin
in the sale, lease, rental, use of or occupancy of the real property rehabilitated
with the assistance of this Loan.
9. Upon execution, this agreement will be filed with the Ex -Officio Recorder of
Washington County, Arkansas for the period specified in paragraph 3 of this Agreement,
and shall be considered to constitute a lien on the property with all rights and
privilges of said lien as set forth by applicable Arkansas State statutes and assigned
to the City as lien holder.
10. Upon satisfactory completion of all terms and conditions of this agreement by
the Grantee, or upon payment of any balance due; the Grantee shall be entitled to a
release and satisfaction by the City of the lien.
CITY OF FAYETTEVILLE
COMMUNITY DEVELOPMENT DIVISION COORDINATOR
GRANTEE(S)
SUBSCRIBED AND SWORN to before me, a Notary Public this day,
,1999
My Commission Expires:
Notary Public
REAL ESTATE CONTRACT
(Offer and Acceptance)
1.BUVER• Regina Eilerts
to the terms set forth herein, the following property. 't 1 East 4th S t
2. PROPERTY DESCRIPTION AND ADDRESS
Lot 4, Block 3, Jennings Addition Fayetteville
Washington County, Arkansas
54,000
September 22, 1999
19
, offers to buy, subject
3. PURCHASE PRICE: The Buyer will pay $
balance subject to the following conditions:
A. 91 NEW LOAN' ❑ Cony. )Fl FHA ❑ VA
B.
for the property at closing. The down payment shall be $
The Buyer's ability to obtain a loan to be secured by the property in an amount not less than $
% per annum.
Unless otherwise specified. all loan costs and prepaid items shall be paid by Buyer. If said loan is not available or is not closed, Buyer agrees to Pay for loan
costs incurred, including appraisal and credit report, unless failure to close is caused by Seller.
0 LOAN ASSUMPTION: The Buyer's ability to assume existing loan payable to
less than 30 years, with interest not to exceed -B%
52,650.00
1200.00* with the
Payable over a period of not
in the approx.
imate amount of $ currently payable at approximately $ per month, including 0 principal, 0 interest.
0 existing taxes, and 0 existing insurance. Payments on existing loan to be current at closing.
C. cOTHER• *Buyer will receive clown payment anti rLncing rncts accictanre
grant with vali_d cert_ificateiron Family Service Agency Homebuyer
educatLon cJa_ss_. 1/2 dawnoavment and all elig closing costs -to: $3500
4. APPLICATION FOR FINANCING: It applicable, Buyer agrees to make application for a new loan or loan assumption within 30 days from date of
this contract.
5. EARNEST MONEY: Buyer herewith tenders a check for $ 500.00 as earnest money, which shall apply on purchase price or closing costs if
this offer is accepted. This sum shall be deposited by Agent and if offer is not accepted or if title requirements are not fulfilled, it shall be promptly refunded to
Buyer. If, after acceptance, Buyer fails to fulfill his obligations, the earnest money shall become liquidated damages, WHICH FACT SHALL NOT PRECLUDE
SELLER OR AGENT FROM ASSERTING OTHER LEGAL RIGHTS WHICH THEY MAY HAVE BECAUSE OF SUCH BREACH.
6. CONVEYANCE: Conveyance shall be made to Buyer, or as directed by Buyer by general warranty deed. except it shall be subject to recorded restrictions and
easements, if any, which do not materially affect the value of the property. Unless expressly reserved herein. such conveyance shall include mineral rights
owned by seller.
7. ABSTRACT OR TITLE INSURANCE: The ownerls) of the above property, hereinafter called Seller, shall furnish, at Seller's cost, a complete abstract reflecting
merchantable title satisfactory to Buyer's attorney; however, Seller shall have an option to furnish Buyer, in place of abstract, a policy of title insurance in the
amount of the purchase price. and submission of an abstract shall not constitute a waiver of this option. It objections are made to title. Seller shall have a
reasonable time to meet the objections or to furnish title insurance.
8. PROBATIONS: Taxes and special assessments due on or before closing shall be paid by Seller. Any deposits on rental property are to be transferred to Buyer
at closing. Insurance, current general taxes and special assessments, rental payments, and any interest on assumed loans shall be prorated as of closing unless
otherwise specified herein.
9. CLOSING: The closing date, which will be designated by Agent, is estimated to be on or about October 25, 1999
10. POSSESSION: Possession shall be delivered to Buyer:
A. d( Upon closing.
B. 0 After closing, but not later than days after closing. In this event, Seller agrees to pay at closing
$ per day from closing to date possesison is delivered and to leave this sum with Agent to be disbursed to the parties
entitled thereto on the date possession is delivered.
11. FIXTURES AND ATTACHED EQUIPMENT: Unless specifically excluded herein, all fixtures and attached equipment, if any, are included in the purchase
price. Such fixtures and attached equipment shall include, but not be limited to. the following; window air cond boners, carpeting, indoor and outdoor light
fixtures, window and door coverings, gas or electric grills, awnings. mail boxes, garage door openers and remote units. water softeners, propane and butane
tanks, antennas and any other REQUIREMENTS:
bolted, nailed, screwed, buried or otherwise attached to the real property in a permanent manner.
12. TERMITE CONTROL
A None.
B Purchase price to include a current termite control policy issued by licensed operator.
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C, Purchase price to include termite control policy and inspection report, as required by HUD. VA, or lender.
13. INSPECTIONS AND REPAIRS: Buyer certifies that Buyer has inspected the property and is not relying upon any warranties, representations or statements of
Agenty� or Seller as to age or condition of improvements, other than those specified herein. 13A and 138 do not apply to new previously unoccupied dwellings.
A. U1 Buyer accepts the property in its present condition, subject only to the following' none
B. 0 The following items, if any, shall be in normal working order at closing: dishwashers, disposals, trash compactors, ranges. exhaust fans, heating and air
cond'tio 'ng systems. plum 'ng system. electr'cal system and
Buyer shall have the right, at Buyer's expense. to inspect the above items prior to closing. If any of the above items are found not to be in normal working
order, Buyer may notify Seller in writing prior to closing. After notice as provided herein. Seller agrees to pay the cost of repair of any such items up to
but not exceeding $
If cost Of such repairs will exceed the above amount, and Seller refuses to pay the additional cost, Buyer may accept the property in its condition at closing
with credit on the purchase price in the above amount; or Buyer may declare this contract null and void.
If Buyer does not give notice of defects in writing prior to closing. all subsequent repairs shall be solely at Buyer's expense.
RISK OF LOSS: The risk of loss or damage to the property by fire or otllerr casualty occurring up to the time of closing is assumed by the Seller.
14.
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15. EXPIRATION OF OFFER: This Rifer expires f not accepted with n days fr m this date.
16. OTHER CONDITIONS Sale subject to Deferred Loan greement(attached)
Contract is contingent on approval by the Fayetteville City Council
If Council fails to approve, contract is null and void and buyer's
earnest money will be refunded to buyer.
1980 FTC Ruling
INSULATION: (All of the following information MUST YbeP inserted if this is a NEW home) Insulation
su KNE$S / will be installed as follows:TVALUE
TH
Exterior Walls
Interior Walls
Ceilings (In all areas)
WALLS for which above int or.
mation varies (such as special
insulation in bedroom)
The above information has been furnished by
he insulation manufacturer or home builder and is relied on by Seller and Agent.
THIS IS A LEGALLY BINDING CONTRACT WHEN SIGNED BY BOTH BUYER AND SELLER. IF NOT UNDERSTOOD, SEEK LEGAL ADVICE.
N/A N/A Aer.A. a_ &lin&
Broker Signature Buyer
Selling Agency
N/A
Selling Associate Signature
The above offer is accepted on
services rendered in securing said otter. If
divided equally between Seller and Agent
Buyer
19 I/We agree to pay the below named agent a fee of for professional
for any reason the earnest money provided for herein is forfeited by Buyer under the provisions hereof, same shall be
after payment of incurred expenses.
N/A N/A
Listing Agency
N/A
Listing Associate
Broker Signature Seller
Seller
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ACQUISITION REHASH PROJECT /2 21 Fast 4th
Project t 97081 HOME Project #0021700051
SCHEDULE CF EXPENDITURES
AS OF 29 -Sep -99
Check Date Caavgbm Total C000 COBG Inds HOME
04)159 Esmnt money 200.00 20000
04/29/9 Purchase property 28,828,58 25,8/00.58
05309 PannigtoMni.l yard work 63.90 63.90
061959 Gregg's excavating 650.03
0012/9 Hue & Company -ACM army 500,00
State em* 020.00
06/129 Pennington - noMi9 3101 3194
03009 Mea Builders Insuac Prog. 77.53 77.53
06/25/9 Pennington • mooing 31.94 3194
07/09/9 Homo Bu des Insured Prog. 8207 82.07
07/109 Pennington - nwwMO 31.94 31.94
07/239 Petty Cas ROM6mae 15.07 15.07
08/01/9 Sunray 6ervkes 1,260,00
08/119 Pennington -mowing 31.94 3104
08/269 Tnn-prepaid 9347 93.47
00/28/9 Johnny On 0a Spot 63.64
099319 Pennington - mowing 31.94 31.04
09/01/9 Sunray Services 519.75 519.75
09/1219 Cameron Ashley - docrs/MndOwe 101359
09/18/04 NatIMI Hens Cenlen 54.38
09/15/97 Ozark Restoration 14030.00
09'1530 Ozark RMetetion- rataatage (1,400.00)
00/1697 Photok 15.07
09/2597 Ozark Restoration 1118000
092597 One% Raatcneon • retainage (1,118.00)
0913097 Home BuM.ii Insurance - ttWe 4,15) (41.15)
099097 SWEPCO 8.95 8.95
1093/97 Patty Cask Reimburse 3804
100097 Petry Cash Reirtursoyhotoa 13.83
10/1397 PPmhgtc - mewing 63.90
1003/97 Natianal Hems Centers 48.34
10/13107 Stony Servba 620.00 820.00
10/14/97 Pett Clan Reimburse -photos 22.53
10/1797 Nalonat Horne Centers 507.12
10/2497 NMbal Hone Centers 22903
1012497 Johnny On the Spct 63.16
10124/97 SWEPCO - Electric 11.30 11.30
10/2797 Poly Cash Raimtum-photon 20.34 20.
119397 Ozark Rnloq.lbn 9,99170
1130007 OE V t Restoration - releb9e (999.17)
12/1597 Ozark RaetmdiI atone rating 3017.17
1100197 Mike Pemiglm Homme Rapala' 600.00
11/10197 PeiJnilm - mw.n9 13061 131.61
11/1097 Notional Home Centers 0283.63
11/18/97 National Home Conlan 830.21
A /1497 Sunray Sarvke 301.75 301.75
11/2197 SWEPCO - Electric 17.87 17.67
129197 Wed Ten Service 600.00 00000
120197 Cry of Fayette -4e - water 17.11 17.11
12/08/97 Manses Western Gee 19.6 19.85
12/3197 Petty Cash 23.12 23.12
129197 City of FeyettnO. • water 1231 12.31
ot submitted 1007 Project Staff Cosa 1751.00
01/0398 SWEPCO - Eleskk ee8 9.6
01/1298 Arkansas Western Gas 35.23 35.23
0196/95 SWEPCO - Elac0lc 10.75 10.75
029298 City of FeyettevSe - weer 25.04 25.64
029090 Arkansas Waster Gal 30.64 30.64
02/23/98 SWEPCO Elate 10.26 10.26
033096 Cly of Feyenev6e-water 25.64 25.64
030998 Arkansas Western Gas 24.07 24.07
03/2790 SWEPCO - Electric 9.6 e03
03/3090 Reel Estate Consul Appraisal 300.00 30000
04/0290 Mans's Western Gas 22.43 2243
04/2298 BMnra Liven Care 20.66 26,6
04/2398 Pennkwton Ham 3nNcas 3000 30.00
04/24/98 SWEPCO - Electric 7.00 7.6
05/15/98 Ask Western Gal 830 8.30
05/27/98 SWEPCO - Electric 7.87 7.87
69190 Pennington Mea S.Mo.s 806 90.00
6/0598 Art Western Gas 168 16
693.18 SWEPCO -Ekdh 11.97 11.97
079898 Pennington Home Santee 60.00 60.00
07/0998 Arkansas Western Gs. 7.00 16
07/24/90 SWEPCO - Electric 1/.04 17.94
07/30/98 Homs Buaers Insuan Prog. 77.52 7752
001798 SWEPCO - Eodh 16 16
091798 Pennington Home Services 60.00 60.6
06/2190 SWEPCO • Electric 35.90 356
09.9390 Pennington - mowing wry 00.00 BJ.6
00004/99 M Wedem Gas 7.68 7.6
09/2498 SWEPCO - Elec,e 17.92 17.92
109690 Pennington- mow yard 45.00 45.6
1095/98 M W.Mnn Gas 160 T,6
10/26/98 SWEPCO 24.90 24.90
10/3198 Pxnagbn- rmw yard 90,6 93.00
119599 M Western Ges 7.60 7.68
11/1399 Pennlglcn- mow yard 006 90.6
1112398 piopeM taws 308.07 305.07
11/23/98 previous sellers tan (1 eeww) (9347) (93.47)
11/30/98 SWEPCO 11.00 11.00
120498 Ask Western Gas 160 16
12/3190 SWEPCO 479 8.79
12/3198 M Western Gas 26.76 28.76
01/29/99 SWEPCO 12.00 12.06
020519 M Western Ges 33.49 33.49
02/2009 SWEPCO 9.07 9.07
03/0599 MWeMam Gas 21.30 21.30
03/26199 SWEPCO 945 9.45
04/0999 M Western Gas 31.18 31.18
0493/09 SWEPCO 7.82 7.82
052199 SWEPCO 7.74 7.74
05124/99 SWEPCO 20.6 20.69
07/0290 M Western Gas ASM 7.04
07/23199 SWEPCO 23.61 23.81
08/054129 M Western Gas 7.21 7.21
088/999 SWEPCO 42.79 42.79
090399 M Western Gas 7.21 7.21
09/24/99 SWEPCO 30.91 30.91
09/23939 Wash Crary Prop taa 420.6 420.6
at aubmed 199890 project stall coats 0 6
ot subnVddnnpayment 8 closing asst 3,56.00 3.566
820.00
6364
1,013.59
14,000.00
(1,400 00)
1507
11,180.00
(1,118.00)
6390
1998 expos
1.557.30
TOTAL EXPENDITURES
REMAINING BUDGET
Dims Project Coll
RECAP
TOM COBS funds expanses',
Total HOME Mks expensed:
Proceeds from u8/: estimated
Reimbursable to CDBG: ntirwed
Reimbursable to HOME: e&Ymed
13.63
48.34
507.12
22943
6.16
9,991 70
(999.17)
3,517.17
3283.63
830.21
W
82,1629 29178.78 7,3216 45.599.83
74,77861
HOME Drawdowns- 14961.21
Progmm Income used 30639 62
45,599.83
% al Pry
% of Pro,
28,048.47
4446
55.54
Funding Sauces
29,17878 COBG
7027.68 Incised coats
45'li'5559933 HOME
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• RESOLUTION NO 133-99
A RESOLUTION APPROVING AN OFFER AND ACCEPTANCE
CONTRACT WITH REGINA EILERTS, FOR PROPERTY
LOCATED AT 21 EAST 4TH STREET, IN THE AMOUNT OF
$54,000.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1 That the City Council hereby approves an Offer and Acceptance Contract with
Regina Eilerts, in the amount of $54,000, for property located at 21 East 4th Street, as more fully
set forth as follows:
Lot Numbered Four (4) in Block Numbered Three (3) of Jennings
Addition to the City of Fayetteville, Arkansas, as per Plat of said
Addition on file in the office of the Circuit Clerk of Washington
County, Arkansas;
and authorizes the Mayor and City Clerk to execute said contract. A copy of the contract is attached
hereto marked Exhibit "A" and made a part hereof.
PASSED AND APPROVED this 19'" day of October , 1999.
APPROVE ^ /�
By A /
F ed Hanna, Mayor
FAYEIte
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