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HomeMy WebLinkAbout74-99 RESOLUTIONGALE of &(qui, +- r • • RESOLUTION NO 74-99 • A RESOLUTION APPROVING THE OFFER AND ACCEPTANCE AGREEMENT ENTERED INTO WITH HILDA BOUNDS TO ALLOW THE COMMUNITY DEVELOPMENT HOMEBUYER PROGRAM TO PURCHASE PROPERTY FOR THE REHABILITATION OF AN EXISTING RESIDENTIAL STRUCTURE LOCATED AT 1034 SOUTH WASHINGTON AVENUE IN THE AMOUNT OF $5147389. $515, 000 _ i-ujo l -.1v,) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS• Section 1 That the City Council hereby approves the Offer and Acceptance Agreement entered into with Hilda Bounds to allow the Community Development Homebuyer Program to purchase property for the rehabilitation of an existing residential structure located at 1034 South Washington Avenue in the amount of $58,500. A copy of the agreement is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 15l day of June , 1999. ATTEST: 0 t „ • • att.. fUy�a4t ache r Woodruff, City C APPROVED. ��Q�� By Fred Hanna, Mayor REAL ESTATE CONTRACT (Offer and Acceptance) Hilda Bounds 1. BUYER • May 11 to the terms 2. PROPERTY set for h herein, the following property. DESCRIPTION AND ADDRESS- 1034 South Washington Lots 19,20,17 1.8 R1nrk 1., GLenwnnd Park 19 99 of tars to buy, subject Additihn, Fayottevile Single family resident tai 1200'00* 3. PURCHASE PRICE: The Buyer will pay $ 58.000.00 for the property at closing. The down payment shall bo $ with the balanceysubject to the following conditions: A. d NEW LOAN: 0 Conv. Ya FHA 0 VA The Buyer's ability to obtain a loan to be secured by the property in an amount not less than S less than 30 D years. with interest not to exceed - 7% % 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. B. 0 LOAN ASSUMPTION: The Buyer's ability to assume existing loan payable to in the approx- 53,500.00 payable over a period of not imate amount of $ currently payable at approximately $ 0 existing taxes. and 0 existing insurance. Payments on existing loan to be current at closing. * buyer's dnwnpRymment of g120_o does mat include Dawn oayment and Closing costs Assistance Grant Grant will Day 1/2 down payment and 100% of eligible clostog casts u_o to a total of 83500 C. H OTHER Per month, including 0 principal. 0 interest, 4. APPLICATION FOR FINANCING: If applicable, Buyer agrees to make application for a new loan or loan assumption within this contract. 5. EARNEST MONEY: Buyer herewith tenders a check for $ R5nn 30 days from date of as earnest money, which shall apply on purchase price or closing' costs if this otter 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 hermit. such conveyance shall include mineral rights owned by seller. 7. ABSTRACT OR TITLE INSURANCE: The owner(S) 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. If objections are made to title, Seller shall have a reasonable time to meet the objections or to furnish title insurance. 8. PRORATIONS: 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 June 30, 1999 10. POSSESSION: Possession shall be delivered to Buyer: A. >U eon closing. B. 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 data 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 conditioners. 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 items bolted, nailed, screwed, buried or otherwise attached to the real property in a permanent manner. 12. TERMITE CONTROL REQUIREMENTS: A None. 8 X Purchase price to include a currant termite control policy issued by licensed operator. C Purchase price t0 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 Agent or Seller as to age or condition of improvements, other than those specified herein. 13A and 13B do not apply to new previously unoccupied dwellings. A. KJ Buyer accepts the property in its present condition, subject only to the following' n n n P 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 co dt n'ng systems, plumbing system, electrical 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 Sellar in writing prior to closing. Atter 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 detects in writing prior to closing, all subsequent repairs shall be solely at Buyer's expense. 14. RISK OF LOSS: The risk of loss or damage to the property by fire or other casualty occurring up to the time of closing is assumed by the Seller. 15. EXPIRATION OF OFFER: This offer expires if not accepted within i 0 days from this date. 16. OTHER CONDITIONS' Sale subiect to Deferred Loan agreement Contract is soitting ti Dnapproval b,y the Fayetteville City Council If council fails to a4.pravP this cojitract is null and void- and buyer's earnest mnn_ey will ha returned., (attached) 1980 FTC Ruling INSULATION: (All of the following information MUST be inserted if this is a NEW home) Insulation is / will be installed as follows: TYPE THICKNESS R -VALUE Exterior Walls Interior Walls Ceilings (In all areas) WALLS for which above infor- mation varies (such as special insulation in bedroom) The above information has been furnished by the insulation manufacturer or home builder and is relied on by Seller and Agent. THIS ISA LEGALLY BINDING CONTRACT WHEN SIGNED BY BOTH BUYER AND SELLER. IF NOT UNDER yS TO 9 D, SEEK LEGAL ADVICE. Selling Agency N/A N/A Selling Associate Signature N/A Broker Signature uyer Buyer The above offer is accepted on 19 1. We agree to pay the below named agent a fee of for professional services rendered in securing said offer. 11 for any reason the earnest money provided for herein i5 forfeited by Buyer nder the provisions hereof, same shall be divided equally between Seller and Agent atter payment of incurred expenses. N/A N/A Listing Agency N/A Listing Associate Broker Signature Sall Seller 1 STAFF REVIEW FORM X Agenda Request X Contract Review Grant Review For the City Council Meeting of 06/01/99 Mgt t.� 0 F IT From. Jan Simco Community Development Name Division Admin Services Department ACTION REQUESTED: Approve offer and acceptance contract, Homebuyer program property sale- 1034 S Washington COST TO THE CITY: 72,363 expended on rehab 3,500 estimated down payment assistance (58,000)estimated sale proceeds $178,748 Cost of this request 2180.4940 Account Number 98089 Project Number Project Budget $40,691 Funds used to date $138,057 Remaining Budget Homebuyer Program Category/Project Name Housing Services Program Name Community Development Fund BUDGET REVIEW: • Budgeted Item Budget Coor inator Budget Adjustment Attached Administrative Services Director CONTRACT/GRANT/LEASE REVIEW: Purchasing Manager Date Grantor Agency: Internal Auditor Date ADA Coordinator Date STAFF RECOMMENDATION: Staff requests approval of contract Division Head Date Admin Svcs Director Date Department Director Date Mayor Date es FAYETTEVI LLE THE CITY OF FAYETTEVIIIE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Staff review Committee, Council Members From: James Nicholson, Community Development Representativ Thru: Jan Simco, Community Development Coordinator Date: May 17, 1999 Re: Affordable Homebuyer Program This property sale is through the Community Development Homebuyer Program. This 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 qualified 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, and we hope to encourage a cooperative effort between city government and private agencies, non -profits, Realtors, tradespeople and lenders, and thereby encourage a higher visibility and broader participation to the important issue of affordable housing. 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. • REAL ESTATE CONTRACT (Offer and Acceptance) 1. BUYER- Hilda Bounds May 11 is 99 ,no mthetermssethorMnerMitthroperty 2 PROPERTY DESCRIPTION AND ADDRESS' 1034 Smith Wachi ngtnn Lots 19 20,37 19 flack 1 Glenwood Park A4ditinn, Single family residential B. PURCHASE PRICE: Tn. Bunt' will pay 5 58 000.00 for ma a cps tv at om,ng. Tna pawn payment hullo. 5 1200.00' ',velem m m• IObow,n0 n b��5a ',velemn A '£• NEW LOAN: 0 Cons 11 FHA 0 vA 53 , 500.00 TTn• Bur• ability t0 cocain a roan fo o• rcund or m ry in an amount not un than $ Denote over onetime of not r a see •orobe ,•.....• 30 eerie _......•.•.. �_.... erre_. 7% ......._.._ Oil 100 V Or CI FayPttrvile Unuu otherwise sDacibad, all n Deena& it a 0410 by Buyer. aid 10 H not •O,leol• Or Is not 'insect, Buyer owns m Pay Icor Man inn a0Pta ill a di caprin. unless•M1,l r Moss a causes Oy Seiler B. 01 LOAN ASSUMPTION' T 8 n , t v *mouth o in to 001 •. of $ v Pavaole a •oproxnm $ par month, ,n'iudong 0 prinnpal, 0 'num! K- amm .arsine ora ono 0 .aHsing mutons. Payments *currently loan to ea current,ng. c.6 OTHER. * boyar's dnwnpayment of Q2111 does not Include Down payment and Closing costs Assistance Grant Grant will oav 1/2 down payment and 100% of eligible clos_inn costs un to a total of S3500 A, APPLICATION FOR FINANCING: 11 aoolic.ou, euvo agree% to male apobuben for • naw loan or man assumption within 30 days born on• el Mi. contract. S. EARNEST MONEY: buyer herewith lenders a Check ler $ c s n n• tn m pries cn 11 apply an ourchll• pr• er closing tent Inl1 eller a C.0I.d. This sun mall oe 0.00411.0 by Agent and 11 Otter It not CC•plw 0111 title r.guiremwll Ma net fulfilled, 0 shall be Of mplly fe unatl Io Buyer. It, IIV, actplanc•, Buster Inst to lulnll nil eoeaalonl, 111 y mill b•Com• Iqulaa.d damao•t, WHICH FACT SHALL NOT PRECLUDE SELLER 00 AOENr FROM ASSERTINO OTHER LEGAL RIGHTS WHICH THEY MAY HAVE BECAUSE OF 'UCH BREACH. 0. CONVEYANCE: Con a Mtn n made 10 Buyer. p • duetted by Ouster by panel w 41o. extent ,1 shall be lubl•tl m regarded r moons dna 11 •ny, wmcn 00 00! maurially enact th• value al the property. Unless emirn.Iynr.a,ved h.revi, such conreynd. Shell includeemlnual '19011 ▪ eiy au•r. ]. ABSTRACTOR TITLE INSURANCE: To. .'II) of the est strove O,OV•,Iv. n lee Selzer, man furnish, at Seller's cost, • ego rai•ctlng net t Ir IHlac tory to Buv.11 • 'allal •11.11 n mon Buyer. m OIC• of abllr•e I • policy of title I e e I• P amount el the tputch. price, and • nope however, inVCt Shall 001 cenlpluY a wurerl of top Option. If abl•clgnl me supe 10 Utl•, Salbr hall hen reasonable OONC I,Ons Ore to banish title e. PRORATIONS:IT•a Te •osis a • du• on 00 151110/11 cloun9 01.11 be pus by 5Cle r, Any eaoouls on•mals shall v a O be tram/erred Closing m Buyer o mcinema. Insurance. •m an•..1 •v.•. x00 specie oas.m.env, renes p•vm.n 1, dna env 101 1.11 on asurl.o lean. shall be p,orasw as of ab mg u sol •wla specified no.n. O. CLOSING'Tn g 115 9 e0 A0 •a n r 1 Juno 30, 1899 10. POSSESSION: Possession shall be delivered to Buyer: A, m /Upon Co•ing. B. o Al . 9 0 1 Is 0 1 r I 9 1 h S I 9 1 O v I0' 9 s d y f I 9 d 0 0 1 ad e co th th Anent to b• O,ceurYe m m• parties entitled thereto on th• date posseepon 11 d•er•r•d. 11. FIXTURES ANO ATTACHED EQUIPMENT: Unless .p.cific•Ily •t luded herein, an fixture. .00 atlabw equipment, if any, • ndiva•d i • purchase Orme. Such futures • had equipment .11.11 include. d 1 be 1 ,hq 1 • following: window • On0iYOMrs, carpeting, rl end outdoor Bons fissures, window .nen doerec ,ng.. w. o raiment grills.. ^ngs. m•rel 00t•. Ong. a and i, .often.., propene and butane t•nks. • and env other . belled, nailed, .crawta, mnl.d or Om.rw,C attached 10 me r.& progeny in permm.nt mann•,. 12. TERMITE CONTROL REQUIREMENTS: None. Purchase Oric• to include • cutr•nt tome• control policy •uw by licensed operator. C. Y Purchase price l0 include termite control policy and inu•cliOn ,•port. a. requited by HUD. VA, or lender, 13. INSPECTIONS ANO REPAIRS: Bun, tonnes 01.1 Suver n.• mm•ned the Pronerty and is mol relying upon any wananlio, r•proenutions or suvm•nts o1 Agent or Sauer as to •g• or condition Of ,morovem•nu. comer than mole o•cil,•a herein. uA end na do not •poly IO new previously unoccupied dwellings, A. Buy p h 'y t t d' 01 y h 1 n 9' none B. 0 The following hams. 11 env. mall 0• in normal working order at dialing: dithwnnos, ditDOsals, trash committer., ranges. vnrvst lana, mating and au p1 b' O . I 1 y a Buyer mall hay.rignn at Buvar'. a nmact ma •best• ,t ms moor o closing. 11 any Of m• above item. era mune not 10 be m b normal warny Order. Buyer ay notify Salter m writing prior to swain. Altar notice al provided herein, Seiler agrees t0 pay ma Cott of raoair of any Such ,nmt w o but not •Cseding 5 If con of such repairs will exceed the mom• amount. and Seller nota ID Pay the additional Cost. Buyer m.y accent th• properly In its Condition et closing with credit on the purchase grid• in the above amount: 01 Sweet may e an s Contract null d void. If iv Bun, doe. nOt give notice of dalau in writing prior o closing. • sueaooant repairs mall ba tolely 51 Buy., . •mer. . 19. RISK OF LOSS: The risk of loss or damage to the prOperty by lin Or Omer Casualty Occurring up tO Ina oma of closing is • inn.] by the Sadler. 15. EXPIRATION OF OFFER: Thi. offm ..Pira• it not •Cd•pvd within 711 d y II m hit oay. 18. OTHER CONDITIONS' Sale subject to Deferred Loan agreement (attached) Contract is contingent onannrnval by the Fayetteville City rnunril If council fails to annrnve this c ntract is null and void and buyer's earnest money will he returned 1980 FTC Ruling INSULATION: (All of Ina following ,nlormatibn MUST be munw if this it a NEW homal Insulation 11 / TYPE THICKNESS ill be installed as follow.' R•vALUE Ea citric.. Walls I mole, WIIs Ceilings nn all WALLS for which above into,- . vu special insulation bedroom, o, The mime information nal bean furnished bs 1 • ,nubllon m• utattu,e, Or nem• builder and ,s ,u,q on by Seller •110 Agent. THIS 15 A LEGALLY BINDING CONTRACT WHEN SIGNED BY BOTH BUYER AND SELLER. IF NOT UNDER TO 0, SEEK LEGAL ADVICE. Seining N/A S ing Agency ban r Signature N/A N/A ,ening A..ocule Signature auve, Omer T 11 1 1 p 10 I W g 0 111 0 d g n 01 CU of • and•red said of ler. 11 t0 • nil u/F4160r vided for nvn for /F4160 Buyer undo tn• provisions hereof, Immo Marl or 01.10.0 00%.1,11Vllr bel*0 1urrng 5•110, and Agerii alter p.Yrnml 01 „marred ••ows.. N/A N/A Loup Agvoy N/A Lirurru A„oci•m wok 5ranetu•• Seiler 5.11.r City of Fayetteville, Arkansas DEFERRED LOAN AGREEMENT This agreement executed this 30th day of June, 1999 between the City of Fayetteville, hereinafter called the City and Hilda Bounds, 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 Forteen Thousand, Nine Hundred and Ninety Nine Dollars, ($14,999.00), representing the subsidy to the Grantee(s) for the rehabilitation of the existing residential structure located at 1Q34 S Washington Avenue being more particularly described as: Lots 19, 20, 37, and 38, Block 3, Glenwood Park Addition, Fayetteville, Arkansas as per Plat on file in the office of the Circuit Clerk and Ex-Offcio Recorder of Washington County, Arkansas 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, aka 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, below 80% of the area median income and 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, lastly, the remaining proceeds shall be applied to satisfying the terms of this agreement. 6 During the term of this agreement the Grantee shall; a. 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 CITY OF FAYETTEVILLE COMMUNITY DEVELOPMENT DIVISION HOME BUYER ASSISTANCE WORK SHEET These figures are estimates at this time NAME ADDRESS Hilda Bounds 1034 South Washington Fayetteville, AR 72701 PURCHASE INFORMATION Purchase Price Closing Costs Total Due from Buyer Earnest money Amount of New Loan Buyer cash at close Total CDBG GRANT INFORMATION Down Payment (50%) Total Closing Costs Less Prepaids Total Eligible Costs TOTAL GRANT AMOUNT $58,000.00 1,500.00 59, 500.00 500.00 54,800.00 700.00 56,000.00 $2,900.00 $1,500.00 ($250.00) $4,150.00 > $3,500.00 I certify that the person or persons listed above meet the eligibility requirements to participate in the Home Buyer Assistance Program. Community Development Coordinator Date