88 Bernice.CONSTRUCTION LOAN AGREEMENT
( "Loan Agreement ")
NEIGHl3ORIIOOD STABILIZATION PROGRAM
Awarding Federal Agency: United States Department of. Housing and Urban
Development ( "IIU.D ")
T.DHCA Federal Award Number: 13- 08- DN -48- 0001.
Federal Award Year (Year of Award .from HUD to '1'Dl-ICA): 2008
TDIICA Award Year (Year of TM-WA Board Approval): 2009
`I'I -JIS Ncig ib rhood Stabilization Program ( "NSP ") CONS''RUC''ION LOAN AGREEMENT
dated this day of June, 2012 is made by and between the TEXAS I.)EPART1111NT OF
HOUSING NI) COMMUNITY AFFAIRS, a public and official agency of the State of Texas
( "Lender "), whose address is 221 E. 11 'h Street., P.O. Box 13941, Austin, Travis County, Texas
78711 -3941, and CITY OF IIUNTSVILLE, a political subdivision of the State of Texas
( "Borrower), whose address is 1212 Avenue M, Huntsville, Walker County, Texas 77340, in
connection with a loan in the original principal sum of $108,712.20, of which $15,000.00 is for
reimbursement of acquisition for the said Lot as described herein and $93,172.20 is for construction
costs.
GENERAL
RAL
Borrower is engaged in the business of construction, which includes rehabilitation and new
construction, under NSP and the sale of single - fancily residences on certain lot(s) located in Walker
County, Texas as described as iU lNG 0.240 of an acre of land, more or less, situated in the P.
GRAY LEAGUE, A -24, Walker County, Texas and being all of LOT TWENTY-SEVEN (27) of
THE MEADOW AT 1-IORSE CREEK, according to the map or plat thereof recorded in Volume 4,
Page 131 of the Plat Records, Walker County, Texas, said 0.240 being more particularly described
by metes and bounds on Exhibit "A" attached hereto and matte a part hereof. The Loan. that is the
subject: of this NSP Construction Loan Agreement is to be used by Borrower to finance the
acquisition and construction of a single- .family residence, in accordance with the Neighborhood
Stabilization Program Contract (as defined herein) for the sintic- family dwelling to be constructed
or rehabilitated, as those terms arc hereinafter defined.
ARTICL.l:. 1 - 'DI;FINITIONS
For purposes of this Loan Agreement, the J.ollowing terms shall have the respective
meanings assigned to them.
1.1 Advance. 'Tice terms "Advance" or "Advances" shall mean a disbursement by
Lender of any of the proceeds of the Note and/or the Borrower's Deposit (defined herein) based
on an interim inspection supported by appropriate documentation as to be determined by Lender
and as approved by Lender.
1.2 Affidavit of Borrower. The term "Affidavit of Borrower" shall mean a sworn
affidavit of Borrower (ancl such other parties as Lender may require) to the effect that all statements,
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invoices, bills, and other expenses incident to construction of Improvements incurred to a specified
date, whether or not specified in the Approved l3udget for such Improvements, have been paid in
full, except for (a) amounts retained pursuant to the Construction Contract, if applicable and (b)
items to be paid from the proceeds of an Advance then being requested or in another manner
satisfactory to Lender.
1.3 Application for Advance. The term "Application for Advance" shall mean a
written commercial draw request through the Lender's Housing Contract System, including all
supporting documentation r'equir'ed to correspond and substantiate the expense. Said application,
in the form attached hereto as Exhibit 13, (or on such other form furnished and approved by
Lender from time to tine) shall be completed by Borrower (and such other parties as Lender may
require) and submitted to Lender and if requested by Lender specifying by naive, current address,
and amount all parti.es to whom Borrower is obligated for labor, materials, or services supplied for
the construction of the improvements and alt other expenses incident to the Loan, and the
construction of the linprovelnents, whether or not specified in the Approved Budget, requesting an
Advance for the payment of such items, containing, if requested by .Lender, an Affidavit of
.t:3or'rower, accompanied by such schedules, affidavits, releases, waivers, statements, invoices, bills,
and other documents as Lender may reasonably request, including but not limited to an executed
Application and Certificate for Payment and an interim Construction Inspection Report (as those
terms as hereafter defined).
1.4 Application and Certificate for Payment. The term "Application and Certificate for
Payment" shall mean a written application in the form attached hereto as Exhibit C (or on such
other form furnished by Lender and approved by Lender from time to time) by Borrower submitted
to Lender to correspond with and substantiate each Application lo.r Advance.
1.5 Approved Budget. The terra "Approved Budget" shall be prepared by the Borrower
and include the following documents: Schedule of values and itemization of costs incurred, together
demonstrating a budget or a cost itemization, that specifies the cost by item of all labor, materials,
and services necessary for the construction of improvements for which the proceeds of a Note are to
be used in accordance with the Plans and all Governmental Requirements,
1.6 Architect. This term is not applicable to this agreement.
1.7 ip:rowea. The term "Borrower" shall mean CITY OF MINTSVII. LE, a
political subdivision of the State of'fexas.
1.8 Borrower's Deposit. The term "Borrower's Deposit" shall mean such cash stints as
Lender may deem necessary, from time to time until a Loan is paid in full, in addition to such Loan,
for the payment. of the costs of labor, materials, and services required for the construction of the
Improvements, other costs and expenses specified in the Approved Budget, and other costs and
expenses required to be paid in connection with the construction of the Improvements in accordance
with the Plans and any Governmental Requirements.
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1.9 Commencement Date. The term "Commencement Tate" shall mean the date as of
even date herewith.
1.111 Completion. When all of the following have been delivered to ].,ender: (i)
certificate of occupancy (or its equivalent) from the appropriate governmental authority having
jurisdiction over the Property, (ii) certificate of substantial completion from the Architect, it
applicable, or Inspecting Architect and (iii) an Affidavit and full release of liens in .recordable
form front the Contractor, if applicable and, upon request of Lender, any other contractors or
subcontractors who have performed work on, or furnished materials for, the Improvements, or
other documentation specified by Lender.
1.11 Completion Date. The term "Completion Date" shall mean the date the
Improvements are constructed or rehabilitated to compietion, but in no event later than August 1,
2012.
1.12 Construction Contracts: The terns "Construction Contracts" shall mean any and all
contracts and agreements, written or oral, between Borrower and the General Contractor, between
Borrower and any other original contractor, between any of the foregoing and any subcontractor and
between any of the .foregoing and any other person or entity relating in any way to the construction
of the Improvements, including, without limitation, the performing of labor or the furnishing of
standard or specifically .fabricated materials in connection therewith.
1.13 General Contractor or Contractor. The terns "General Contractor" or "Contractor"
shall mean City of Huntsville, a political subdivision of the State of Texas, or any other general
contractor engaged by .Borrower and approved in writing by Lender to construct the Improvements
thereof.
1.14 Debtor Relief Laws. The term "Debtor Relief Laws" shall mean any applicable
liquidation, conservatorship, bankruptcy, moratorium, rearrangement, insolvency, reorganization, or
similar laws affecting the rights or remedies of creditors generally, as in effect from tinge to time.
1.15 Deed of Trust, The term "Deed of Trust" shall mean an interim construction deed of
trust (with security agreement) of even date herewith executed by Borrower to 'Timothy K. Irvine,
Trustee for.Lender, securing the payment of the Note and conveying the Property.
Li 6 Event of.'Default. The terns "];vent of Defiault" shall mean the occurrence of any one
of the following:
(a) Any indebtedness evidenced, governed or secured by any of the Loan 'Instruments is
not paid when due, whether by acceleration or otherwise.
(b) Any covenant in this Loan Agreement or any of the other Loan Instruments, is not
fully and timely performed, or the occurrence of any default or event of default thereunder.
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(c) Any statement, representation or warranty in the i..oaIi Instruments, any Financial
Statements of any other writing delivered to Lender 111 connection with the Loan is .false, misleading
or err'onCOUS in any material respect.
(d) Failure of the construction of Improvements or any materials for which an Advance
has been requested to comply with the Plans, any Governmental .Requirements, or the requirements
of any contract purchaser of a lot(s) and Improvements, if applicable.
(c) Failure of Borrower to satisfy any condition specified herein as precedent to the
obligation of Lender to tnakc an Advance after an Application 'ibr Advance has been submitted by
Borrower to Lender.
(f) A reasonable determination by Lender that construction of the Improvements will
not be completed on or before the Coniplction Date.
(g) Borrower or any person obligated to pay any part of the indebtedness evidenced,
governed or secured by the Loan instruments:
(1) does not pay its debts as they become due or admits in writing its inability to
pay its debts or makes a general assignment for the benefit of creditors; or
(2) commences any case, proceeding or other action seeking reorganization,
arrangement, adjustment, liquidation, dissolution or composition of it or its debts under any Debtor
Relief Laws; or
(3) in any involuntary case, proceeding or other action commenced against it
which seeks to have an order for relief entered against it, as debtor, or seeks .reorganization,
arrangement, adjustment, liquidation, dissolution. or composition of it or its debts under any law
relating to bankruptcy, insolvency, reorganization or relief of debtors, (i) fails to obtain a dismissal
o.f such case, proceeding or other action within sixty (60) days of its commencement, or (ii) converts
the case from one chapter of the Federal Bankruptcy Code to another chapter, or (iii) is the subject
of an order for relief; or
(4) conceals, removes, or permits to be concealed or removed, any part of its
property, with intent to hinder, delay or defraud its creditors or any of them, or tnak.cs or suffers a
transfer of any Of its property which may be fraudulent under any bankruptcy, fraudulent
conveyance or similar law; or makes any transfer of its property to or for the benefit of a creditor at
a time when other creditors similarly situated have been paid; or suffers or permits, while insolvent,
any creditor to obtain a lien upon any of its property through legal proceedings which is not vacated
within sixty (60) days .from the date thereof; or
(5) has a trustee, receiver, custodian or other similar official appointed for or
take possession of all or any part of the .Property or any other of its property or has any court take
jurisdiction of any other of its property which continues for a period of sixty (60) days (except
where a shorter period is specified in the immediately following subparagraph (6)); or
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(6) fails to have discharged within a period of ten (10) days any attachment,
sequestration, or similar writ levied upon any property of such person; or
(7) fails to pay immediately any linal.lnoncy judgment against such person.
(h) The holder of any lien, security interest or assignment on a .Property institutes
foreclosure or other proceedings or takes other action 1hr the enforcement of its remedies
thereunder.
(i) 'Me liquidation, termination, dissolution, death, or legal incapacity of Borrower.
(j) Reasonable belief by Lender that the prospect of payment or performance of any
obligation under any o.f the Loan Instruments is impaired.
(k) The occurrence of any material adverse change in the financial condition of
Borrower.
(l) 1.)efault in the payment of any other indebtedness or delimit in the performance, of
any other obligation to Lender by Borrower.
(m) .Breach of the NSP C:olitract, as defined herein.
(n) Default under the NSP Contract.
1.17 Financial Statements. The term "Financial Statements" shall mean such balance
sheets, profit and loss statements, reconciliations of capital and surplus, changes in financial
condition, schedules of sources and uses of funds, operating statements with respect to Borrower,
pro fotnma schedules of sources and uses of funds for ensuing twelve -month periods, and other
financial information of .i3oixower as shall be required by Lender, from time to time, which
statements shall be certified as true and correct by the party submitting such statements or, if
required by Lender, shall be certified by an independent certified public accountant.
1.18 Fivaneing.Staten)ents. The term "Financing Statements" shall mean iUCC -1
financing statements of even date herewith.
1.19 Governmental Authority. The term "Governmental Authority" shall mean the
United States, the State of Texas, the county, the city, or any other political subdivision in which the
Property is located, aid any other political subdivision, agency, or instrumentality exercising
jurisdiction over Borrower or the Property.
1.20 Governmental Requirements. The term "Governmental Requirements" shall mean
all laws, ordinances, rules, and regulations of any Governmental Authority applicable to Borrower
or the .Property or the construction or development of .Improvements thereon, including, without
limitation, the following: the Civil Rights Act of 1964 (42 U.S.C. 2000(d); Executive Order
11063, as amended by Executive Order 12259; Executive Order 11246; Age Discrimination Act
of 1975 (42 U.S.C. 6101 et seq.); Iqual Credit Opportunity Act (15 U.S.C. 1691 et seq.); Fair
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Credit Reporting Act (15 U.S.C. 1681 et seq.); Fair Housing Act (42 U.S.C. 3601 et seq.); the
Americans with Disabilities Act of 1990 (Pl. 101-336); of the Rehabilitation Act of 1973 (29
U.S.C. 794) and implementing regulations (24 CFR Part 8); Architectural Barriers Act of 1968
(42 U.S.C. 4151 et seq.); Federal Drug Free Workplace Act of 1988 and the regulations
promulgated thereunder including, without limitation, 54 CFR Part 4956, Section 3 of the
Housing and Urban I.)evelop.ment Act of 1968; Executive Orders 11625, 12432 and 12138, as
amended; the Copeland "Anti - Kickback" Act (18 U.S.C. § 874 et seq.); the Davis -Bacon Act (40
U.S.C. § 276a et seq.); Sections 103 and 107 of the Work flours and Safety Standards Act. (40
U.S.C. § 327 et seq.); the Uniform Relocation Assistance and Real Property Acquisition Policies
Act (42 LJ.S.C. § 4201 et seq.); the Housing and Community Development Act. of 1974; the
National ' nvironmental Policy Act (42 U.S.C. § 4321 et seq.); 24 CFR Part 50, of the Housing
and Urban Development Act as applicable; and 24 CFR Part 58, 51, 52, and 55 of the (lousing
and Urban Development Act; ("NE PA"); the Lead-Based Paint Poisoning Prevention Act (42
U.S.C. § 4321 et seq.); ); Protection of Wetlands (Executive Order 11990, Mary 24, 1977);
Coastal Management Act (Sections 307 (e) and (d)); Safe Water Driving Act (42 U.S.C. 201,
300(0 and 21 U.S.C. 349); Protection of the Environment, Sole Source Aquifers (40 CFR 149);
Endangered Species Act. (50 CFR 402); Wild and Scenic Rivers Act (16 U.S.C. 1271 el seq. as
amended, particularly section 7(b) and (c)); Farmland Protection Policy Act (7 CFR 658);
Federal Actions to Address Environmental Justice in Minority Populations and Low Income
Populations (Executive Order 12898, February 11, 1994); Parts of Environmental R.evicw
Procedures for Entities Assuming HUD Environmental Responsibilities: No.ise Abatement and
Control (24 CFR 51B); Explosive and Flammable Operations (24 CFR 51C); 'Toxic Chemicals
and Radioactive Materials (24 CFR 58.5(a); Airport. Clear zones and Accident Potential Zones
(24 CFR51 1));thc State of Texas Senate Bill 1356; Title 8, and Chapter 92 of the Texas Property
Code; Solid Waste I:)isposal Act. 'TEX. HEALTH & SAFETY CODE Ann. Ch. 361;
Comprehensive Municipal Solid Waste Management, Resource Recovery, and Conservation Act.
TEX. I IEAi., t'1-1 & SAFETY CODE Ann. Ch 363; County Solid Waste Control Act. TEX..
111.AI; T1I & SAFETY CODl Ann. Ch 364; Texas Clean Air Act, TEX. HEALTH AND
SAFETY CODE Ann. Ch.; and Hazardous Communication Act, TEXAS 1.1TALI'I1: AND
SAFETY CODE Ann. Ch. 502; and such Governmental Requirements as may be from time to
time amended or superseded and all of their implementing regulations, as may be ain.e.nded.
1.21 Hazardous :Materials. The tern] "hazardous Materials" shall mean (a) any
"hazardous waste" as defined by the Resource Conservation and Recovery Act of 1976 (42 U.S.C.
Section 6901 et seq.), as amended from time to time, and regulations promulgated thereunder; (b)
any "hazardous substance" as defined by the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et seq.), as amended from time to
time, and regulations proinulgatecl thereunder; (c) asbestos; (d) polychlorinated biphenyls, whether
in the form of electrical transformers, fluorescent light fixtures with ballasts, cooling oils, or any
other device or Lorin; (e) underground storage tanks, whether empty, filled or partially tilled with
any substance; (1) airy substance the presence of which on a Property is prohibited by any
Governmental Requirements; and (g) any other substance which by any Governmental
Requirements requires special handling or notification of any federal, state or local governmental
entity in its collection, storage, treatment or disposal.
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1.22 I_Iazardous •--- Materials Contamination. The terns "Hazardous Materials
Contamination" shall mean any contamination (whether presently existing or hereafter occurring) of
any improvements, facilities, soil, groundwater, air or other cicmentS on Or of a Property by
Hazardous Materials, or the contamination of the buildings, facilities, soil, groundwater, air or other
elements on or of any other property as a result of Hazardous Materials at any time (whether before
or after the date ol'this Loan. Agreement) emanating from a Property.
1.23 Il iproveincnts. The terns "Improvements" shall inean the permanent residential
dwelling unit to be constructed or rehabilitated on the Lot(s) or on the vacant land that is currently
designated for residential use.
1.24 Inspecting Architects /Engineers. If applicable, the term "Inspecting
Architects /Engineers" shall mean such employees, representatives and agents of Lender or third
parties, who may, from time to time, conduct inspections of a Property or offer other services
related thereto, when applicable.
1.25 Insurance Policies. The term "Insurance Policies" shall mean:
(a) All -risk builder's risk insurance during the construction of the Improvements and up
to the sale of the Improvements, in an amount equal to 100% of the replacement cost of
Improvements, providing all -risk coverage on the .Improvements and materials stored on a Property
and elsewhere, and including the perils of collapse, damage resulting from error in design or faulty
workmanship or materials, water damage and, if requested by Lender, flood, earthquake, business
interruption, permission to occupy, interest costs and other risks;
(b) All -risk insurance after the completion of the construction of the improvements, as
determined by TDRA or Lender, in the amount of at least 100% of the replacement cost of such
Improvements or in such additional amounts as Lender may requite, providing all -risk coverage in
the Improvements, and, if requested by Lender, to include the perils of flood, earthquake, business
interruption and other risks;
(c)
Such other insurance as Lender may reasonably require.
The all -.risk insurance policies referred to in this Section may include a reasonable deductible in an
ainoultt approved by Lender.
All Insurance Policies shall be issued on forms and by companies satisfactory to Lender. All -risk
Insurance Policies shall have loss trade payable to Lender as mortgagee together with a standard
mortgagee clause which provides Lender with at least fifteen (15) days prior notice of amendment
or cancellation.
Commercial General Liability shall have a provision giving Lender at least fifteen (15) days prior
notice of cancellation or material change of the coverage.
1.26 Interim Construction Inspection .Report. The term "Interim Construction Report"
shall mean a report (on a form provided by Lender and approved by I.,ender and is currently
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located on the Lender's electronic library, under NSP, under "Forms" sec:
http:// www. telhca .state.ix.us /nsp /forms.htna) and shall be completed by a third party inspector.
1.27 (..ender. The term "Lender" shall mean TEXAS DEPARTMENT OF HOUSING
AND COMMUNITY AFFAIRS, a public and official agency of the State of Texas.
1.28 ILoan. The term "Loan" shall mean the loan by Lender to :Borrower pursuant to this
Loan. Agreement in the amount of $108,712.20, on the terms and conditions set forth in the Note
and other Loan Instruments, from time to time during the period from the date of this Loan
Agreement up to Completion Date.
1.29 l..,oan Instruments. The term "Loan Instruments" shall mean the :t..,oan Agreement,
the 1)eecl of 'Trust, Note, Financing Statements, and such other instruments evidencing, securing, or
pertaining to the I..oaan as shall, from time to tinge, be executed and delivered by .Borrower or any
other party to Lender pursuant to this Loan Agreement.
1.30 Lot(s). The term "Lot(s)" shall mean that certain lot located in :Huntsville, Walker
County, ".texas, and more particularly described in Exhibit A attached hereto which has a property
address of:
88 Bernice Drive, Huntsville, Walker County, Texas 77320.
1.31 Neifhborh.00d Stabilization Program. The term shall mean "Neighborhood
Stabilization Program" (NSP) or (Program), as authorized by the (Housing and Economic Recovery
Act of 2008), as an adjunct to the Community Development .Block Grant Program. Housing and
Economic Recovery Act of 2008, Pub. L. 110 -289, 112 S'PA'T 2850).
1.32 Neighborhood Stabilization Contract. The terra "Neighborhood Stabilization
Contract," hereinafter "NSP Contract" shall mean the contract executed between Office of Rural
Affairs established within the Department of Agriculture, a public and official agency of the
State of Texas, formerly known as Texas Department of Rural Affairs, and Contractor (as stated
in the NSP Contract) with a unique contract number of 77099999126 and execrated to be
effective on September 1, 2009, in the original amount of $1,050,000.00 as transferred and
assigned to Lender by Assignment of Contract on August 30, 20.11, as amended and extended
and as may be further amended from time to time.
1.33 Note. The term "Note" shall mean a promissory note in the amount of $108,712.20
of even date herein executed by Borrower payable to Lender.
1.34 Notice of Invalidity of Oral Agrectnents. The term "Notice of Invalidity of Oral
Agreements" shall mean the notice executed by Borrower on even. date herein.
1.35 plans. The terra "Plans" shall mean an initial inspection, work write -up, estimate or
bid, or other work product as stated by (..,ender, which pertain to Said construction of Improvements
prepared or possessed by the Engineer or Architect, if applicable, or others for such Construction
with respect to the residence to be constructed or Rehabilitated by Borrower, approved by Lender,
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and all applicable (Governmental Authorities, If an Architect or .Engineer is included in the
construction or Rehabilitation, then any and all contracts and agreement, written or oral, between
the Architect or Engineer and the .Borrower, shall also be included in the Plans.
1.36 Rehabilitation; The term "Rehabilitation" includes activities as described in 24
CFR Section 570.202(b), but limited to improvement or modification of an existing; property
through. an alteration, addition, or enhancement including the demolition of an existing
residential property and the reconstruction (rebuilding of a structure on the same site in
substantially the same manner) of residential property.
1,37 Resolution Certificate. The terns "Resolution Certificate" shall mean a corporate
resolution in the form attached hereto as Exhibit F.
1.38 Property, The term "Property" shall mean the Lots(s), Improvement, all other
property, personal property or mixed and fixtures constituting the Mortgaged Property as described
in the i:)eed o l Trust.
1.39 Survey. The term "Survey" shall mean a current certified land title survey of the
Lot(s) satisfying the requirements of a Category IA Real Property Title Survey (Condition 11) as set
forth in the latest edition of the .Manual For Practice for Land Surveying in Texas and certified as
such by the surveyor and including such other certificate as Lender may require in a certificate
addressed to Borrower, Lender, and the Title Company, signed by the Surveyor and bearing the
current date and the Surveyor's registration number and seal, and/or a recorded plat or map of the
property, as required by Lender, which plat or map shall be approved and accepted by all
Governmental Authorities having jurisdiction of the property.
1.40 Title Company. The term "Title Company" shall mean the title company, approved
by Lender, issuing the Title Insurance.
1.41 Title Insurance. The term "Title Insurance" shall mean a loan title policy or
policies of insurance or loan title policy binder or binders on interim construction loan, as Lender
may require, in the amount of the Note described in the Deed of Trust, insuring or committing to
insure that such Dcecl of Trust constitutes a valid first and prior lien and subject only to those
exceptions and encumbrances which Lender may approve, issued_by the Title Company.
AR'1'1CI.1 2 - ADVANCES OF THE LOAN
2.1 Interest on the Loan. Interest on the Loan, at the rate specified. in the Note, shall be
computed on the unpaid principal balance which exists from time to time and shall be computed
with respect to each Advance only from the date of such Advance (as to the portion of each
Advance not constituting a portion of Borrower's Deposit).
2.2 Advances. New construction and reconstruction shall utilize the Draw Schedule
attached in Exhibit 113 -1 which includes a five (5) draw structure. Advances for the payment of
costs of labor, materials, and services supplied for the construction of the Improvements and the
other items shown in an Approved Budget shall be made by Lender, alter actual commencement of
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construction of improvements, for work actually done during the preceding period. Loan proceeds
advanced by Lender by iournal entry to pay interest required to be paid by Borrower pursuant to this
Loan Agreement shall Constitute actual Advances to Borrower. From time to title, .Borrower shall
strllmit an Application for Advance to Lender requesting an Advance for the payment of the
acquisition costs of the I..,ot, the interest on the Loan, the costs of labor, materials, and services
supplied for the construction of Improvements, and the marketing of the Property for sale, in
accordance with and as specified in the Approved Budget. Advances for payment of costs of
construction. of Improvements and the other items shown in an Approved Budget shall be limited to
the amounts shown in an Approved Budget and not exceed the aggregate of (a) the costs of labor,
materials, and services incorporated into the Improvements in a manner acceptable to Lender,
including reasonable indirect costs approved by Lender, less (b) all prior Advances for payment of
costs of labor, nmteI'ials, and services for the construction of the Improvements actually
incorporated into the Improvements. Each Application for Advance shall be submitted by Borrower
to Lender at .Least ten (10) business days prior to the date on which an Advance is desired by
Bonower (and each. statement lade in such application must be true and correct at the time the
requested .Advance is to be made).
The final Advance for Rehabilitation, new construction, and reconstruction, including all retainage,
will not be made until the date which is thirty -one (31) days after completion of construction and
until the Lender has received the following: (1) an affidavit of completion in a form approved by
the Department and attached as Exhibit 1) (2) evidence that all Governmental Requirements have
been satisfied, (3) evidence that no mechanic's or nraterialinan's lien or other encumbrance has been
filed and remains in effect against a Property, (4) final lien releases er waiver's by Contractor and all
subcontr'actor's, anaterialm an, and other parties who have supplied labor, materials, or services for
the Construction of Improvements, or who otherwise might be entitled 10 claim a contractual,
statutory, or constitutional lien against a Property in a form approved by Department and attached as
Exhibit F and (5) verification that the "Title Insurance will be in effect :for a minimum of six (6)
months after the final Advance.
2.3 Conditions to the First Advance, As a condition precedent to the first Advance
under the Note, Borrower must submit to Lender not later than fifteen (15) business days prior to
the anticipated date of the first Advance, a fully completed and executed Application for Advance
and must further satisfy the conditions required hereby and execute and deliver to, procure for and
deposit with, and pay to (.,ender and, if appropriate, record in the proper records with all filing and
recording -fees paid, the documents, certificates, and other items that are noted by (x) on Exhibit A-
1 attached hereto, together with such other documents, instruments, and certificates as Lender may
reasonably require. It is anticipated that the bor'r'ower will immediately request an advance for the
reimbursement of the acquisition costs for the Lot(s) securing the Note in the aggregate amount of
15,000.00.
2.4 Conditions to Subsequent Advances. As a condition precedent to each. subsequent
Advance under the Note other than the first Advance, in addition to all other requirements herein,
Borrower must satisfy the following requirements and, if required by Lender, deliver to Lender
evidence of such satisfaction:
(a) All conditions precedent to the first Advance shall have been satisfied;
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(b) No }:vent of Default shall exist;
(c) A .foundation survey, if required by Lender, shall have been furnished to Lender- at
final draw, showing no encroachment of the improvements on any boundary line, easement,
building setback line, or other restricted area;
(d) The representations and warranties made in this Loan Agreement shall be true and
correct on and as of the date of cach Advance, with the same effect as if made on that date;
(e) Borrower will procure and deliver to Lender, it required by }..ender, releases or
waivers of mechanics' liens and receipted bills showing payment of all parties who have
furnished materials or services or performed labor of any .kind in connection with the
construction of any of the Improvements; and
Title Insurance shall be in effect.
2.5 Reallocation of Approved Budget. Lender reserves the right to Make Advances
which are allocated to any of the designated items in an Approved Budget for such other
purposes or in such different proportions as Lender may, in their sole discretion, deem necessary
or advisable. Borrower may not reallocate items of cost. or change all Approved Budget without
the prior written consent of Lender.
2.6 No Waiver. No Advance shall constitute a waiver of any condition precedent to the
obligation. of Lender to make any further Advance or preclude Lender from thereafter declaring the
failure of Borrower to satisfy such condition precedent to be an Event of Default.
2.7 Conditions Precedent for the Benefit of Lender. All conditions precedent to the
obligation of Lender to slake any Advance are imposed hereby solely for the benefit of Lender, and
no other party may require Satlslactlon of any such condition precedent or be entitled to assume that
Lender will refuse to make any Advance in the absence of strict compliance with such conditions
precedent. All requirements antis }Loan Agreement may be waived by .}...ender, in whole or in part,
at any tulle.
2.8 llhOrtilrlat oil. Lender shall not be obligated to make, nor shall Borrower be entitled
to, any Advance until such time as Lender shall have received, to the extent requested by Lender,
subordination agreements from Architect when applicable, Contractor, when applicable, and all
other persons furnishing labor, materials, or services for the design or construction of
Improvements, subordinating to the provisions of a. Deed of Trust any lien, claim, or charge they
may have against 13orrower or a Property.
2.9 Title Insurance. 11' any of the Title Insurance consists of Loan Title Policy Binders
on Interim Construction Loan, alter expiration of the time periods specified in Section 2.2,
Borrower will replace such binders with a Loan Policy (or Policies) of Title Insurance, endorsed and
extended to cover the construction costs and acknowledge completion of construction of
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Improvements without any encroachment and in compliance with all applicable matters of public
record and (:Governmental Requirements, with no additional exception objectionable to Lender.
ARTICLI3 3 - REP.R] Si NTATIONS AND WARRANTIES OF BO.RROW.ER.
Borrower hereby represents and warrants as of the date of each Advance as .tbllows:
3.1 1J..n)ilicia! „StatCn1cffts. The Financial Statements are true, correct, and complete as of
the dates specified therein and fully and accurately present the .financial condition of Borrower as of
the dates specified. No material adverse change has occurred in the financial condition of Borrower
since the dates of the Financial Statements.
3.2 Sui#s,_Actions,l tc. 'There are no material actions, suits, or proceedings pending or
to the knowledge of. Borrower threatened in any court or before or by any Governmental Authority
against or affecting Borrower or the Property herein described, or involving the validity,
enforceability, or priority of any of the Loan Instruments, at law or in equity. The consummation of
the transactions contemplated hereby, and the performance of any of the terms and condition
hereof and of the other Loan .instruments, will. not result in a breach of, or constitute a default in,
any mortgage, deed of trust, lease, promissory note, loan agreement, credit agreement, partnership
agreement, or other agreement to which Borrower is a party or by which Borrower may be bound or
affected. Borrower is not in default of any order of any court or any requirement of any
(aovcrnmeinal Authority.
3.3 Valid and Binding Obligation. All of the Loan Instruments, and all other documents
referred to herein to which Borrower is a party, upon execution and delivery will Constitute valid
and binding obligation of Borrower, enlorecable in accordance with their terms except as limited
by Debtor .Relief Laws.
3.4 Title to the Property. Borrower holds full legal and equitable title to the Property
herein described, subject only to title exceptions set forth in the Title insurance.
3.5 Commencement of Construction. Prior to the recordation of the Deed of 'Trust
covering the Property herein described, no work of any .kind that would give rise to a lien having
priority over the Deed of Trust (including the destruction or removal of any existing improvements,
site work, clearing, grubbing, draining, or fencing of the Property herein described in such :Deed or
Trust), shall have comillenced or shall have been pertormcd on such Property, no equipment or
material shall have been delivered to or upon such .Property Ibr any purpose whatsoever, and no
contract (or memorandum or affidavit thereof) for the supplying of labor, .materials, or services for
the construction of the improvements shall have been recorded in the mechanic's lien or other
appropriate records in the county where such .Property is .located.
3.6 Disclosure. There is no fact that i3or'rower has not disclosed to Lender in writing
that could materially adversely affect the property, business or financial condition of Borrower or
the Property herein described.
3.7 Corttplippec wit} i snylroI]I1 entalEZ.e uir enttiz_NO I;Ia rcfous Materials.
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'!o the best of Borrowers knowledge:
(a) No 1 iazardous Materials are located on the Property herein described, released into
the environment, or deposited, discharged, placed or disposed of at, on, under or near such Property.
No portion of the Property herein described is being used or, to the knowledge of Borrower, has
been used at any previous time for the disposal, storage, trcatmenl, processing; or other handling of
Hazardous Materials nor is the Property affected by any Hazardous Materials Contamination.
(b) No Hazardous ardous Materials are located in the vicinity of the .Property herein described.
No property adjoining the Property herein described is being; EISCd, or has ever been used at any
previous time, for the disposal, storage, treatment, processing or other handling of Hazardous
Materials. No property adjoining the Property Herein described is affected by Hazardous Materials
Contamination.
(e) No investigation, adnlinistiative order, consent order, agreement, litigation or
settlement with respect to Hazardous Materials or Hazardous Materials Contamination is proposed,
threatened, anticipated or in existence with respect to the Property herein described. The Property
herein. described and its existing and prior uses comply and at all tines have complied with any
applicable Governmental Requirements relating to environmental matters or Hazardous Materials.
There is no condition on the 'Property herein described which is in violation of any applicable
[Governmental Requirements relating to Hazardous Materials, and Borrower has received no
communication from or on behalf of any Governmental Authority that any such condition exists.
The Property herein described is not currently on and, to Borrower's knowledge after diligent
investigation and inquiry, has never been on any federal or state "Superrund" or "Siiperlic tl" .list.
(d) No asbestos or asbestos - containing materials have been installed, used, incorporated
into, or disposed ol'on the Property herein described.
(c) No polychlorinated biphenyls or materials containing polychlorinated biphcnyls are
located on or in the Property herein described, in the form of electrical transformers, fluorescent
light fixtures with ballasts, cooling oils, or any other device or limn.
(� No underground storage tanks are located on the Property or, to the best of
Borrower's knowledge, were previously located on the Property herein described and subsequently
removed or filled.
(g) Except for studies, audits, and reports pertaining to the Property, if any, which have
been .made available to Lender, there have been no environmental investigations, studies, audits,
tests, reviews or other analyses conducted by or which are ill the possession of Borrower or
available to Borrower in relation to the Property herein described.
(h) All representations and warranties Contained in this Section 3.7 shall survive the
ecnlsulnlmltion of the transactions contemplated in this Loan Agreement.
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3,8 System Compliance. To the best of I3orrower's knowledge, atler due .inquiry, the
storm and sanitary sewer system, water system, all mechanical systems of the Property herein
described and other parts of the Improvements do (or when constructed will) comply with all
applicable environmental, pollution control and ecological laws, ordinances, rules and regulations,
and all Goverunlentat Authorities having jurisdiction of the .Property herein described have issued
all necessary permits, licenses or other authorizations for the construction, occupancy, operation,
and use of the Improvements (specifically including the named systems).
3.9 Utility Availability_. Subject only to payment of fees to be paid from an Approved
Budget, all utility and municipal services required for the Construction, occupancy and operation of
the Improvements, including, but not limited to, water supply, storm and sanitary sewer systems,
gas, decide and telephone facilities, are available for use and tap -on at the boundaries of the
Property herein described and will be available in sufficient amounts for the normal and intended
use of the .Improvements, and written. permission has been or will be obtained from the applicable
utility companies or municipalities to connect the Improvements into each of said services.
3.10 Interstate land Sales Full Disclosure Act. Borrower's development of the Property
herein described and the sale or lease of such Property by Borrower are exempt from the registration
and reporting requirements of the Interstate Land Sales Full Disclosure Act, 15 II.S.C. § 1701, et
seq., and the regulations promulgate thereunder. Any sale of the Property herein described by
Borrower shall be in full compliance with the Interstate (,and Sales Full .Disclosure Act and the
regulations promulgated thereunder.
3.11 Inducement to Lender. The representations and warranties contained in the Loan
Instruments are made by Borrower as an inducement to Lender to make a Loan and Borrower
understands that Lender is relying on such representations and warranties and that such
representations and warranties shall survive any (a) bankruptcy proceedings involving Borrower or
the Property herein described, of (b) foreclosure of the Deed of Trust or (c) conveyance of title to
such Property in lieu of foreckosure of'the Decd of Trust. Acceptance of each Advance constitutes
reaffirmation, as of the date of such acceptance, of the representations and warranties of Borrower
in the Loan Instruments, on which (.ender shall rely in making such Advance,
3.12 NPI)l S Permit. If applicable, Borrower has timely Obtained a National Pollutant
Discharge .Elimination System Permit ( "NPDES Permit ") or has filed a Notice of Intent to be
covered by an applicable NPII S Permit in connection with the Property herein described and has
otherwise complied with all filing and other applicable requirements of the Water Quality Act of
1987 (33 U.S.C. § 1251 et seq.) (the "Water Quality Act ") and regulations promulgated thereunder.
AR'f1CI..E 4 - COVENANTS AND AGREEMENTS MENTS OF BORROWER
Borrower hereby covenants and agrees as follows:
4.1 Compliance with Governmental R_equii_ements. .Borrower Shall timely comply with
all Governmental Requirements and deliver to (..,ender evidence thereof Borrower assumes full
responsibility for the compliance of the Plans and the Property with all Governmental Requirements
and with sound building and engineering practices, and, notwithstanding any approvals by (.,ender,
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Lender shall have no obligation or responsibility whatsoever for the Plans or any other matter
incident to the Property or the construction of.11ilproveinentS. Immediately upon .Borrower's receipt
of any notice from a Governmental Authority of noncompliance with any Governmental
Requirements, Borrower shall provide Lender with written notice thereof.
Any Rehabilitation of a foreclosed upon home or residential property under NSP shall be to the
extent necessary to comply with applicable, laws, cocks, and other requirements related to
housing safety, quality, and habitability, in order to sell, rent, or redevelop such hones and
properties. Rehabilitation may include improvements to increase the energy efficiency or
conservation of such homes and properties or provide a renewable energy source or sources for
such homes and properties. (.Housing and economic .Recovery Act Section 2301 (d)(2) of 2008.)
"17he eligibility of renewable energy equipment 011 existing structures shall be determined by the
Beneficiary.
'lousing that is constructed or Rehabilitated with NSP funds must meet all applicable local
codes, rehabilitation standards, ordinances, and zoning ordinances at the time of completion. In
the absence of a local code for new construction or Rehabilitation, the housing must meet the
most current International Building Code. In addition, all NSP funded housing must meet the
Texas .Minimum Construction Standards, as published in the 'texas NSP Program Guidelines.
NSP assisted new construction or Rehabilitation will comply with 1Ii.1D Program lead -based
paint requirements including lead screening in housing built before 1978 in accordance with 24
CFR Part 92.355 and 24 CFR Part 35, subparts A, 13, J, K, M, and R. Multifamily housing
assisted with NSP funds must meet the accessibility requirements at 24 CFR. part 8, which
implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Section 794) and covered
multifamily dwellings, as defined at 24 CFR 100.201, and the design and construction
requirements at 24 CM. 100.205, which implement the Fair Housing Act (42 U.S.C. 3601 - 3619).
Finally, .NSI' assisted housing must meet Energy Efficiency Standards in accordance with
Section 2306.187 of the Texas Government Cocle. Section 2306.514 of the "Texas Government
Code must be applied when single f:anlily hones are to be constructed.
4.2 CotlstlilCtion_of,the I,tnprovetiJgtlts. On or after the Commencement Date as herein
defined, Borrower shall commence construction of the Improvements herein described and the
construction of the Improvements shall be prosecuted with diligence and continuity, in a good and
workmanlike manner, and in accordance with sound building and engineering practices, all
applicable Governmental Requirements as described in Section 4.1 above and the Plans.
4.3 Correction of t)c#ccts..Borrower, at its cost, shall correct or cause to be corrected (a)
any material defect in the Improvements, (b) any material departure in the construction of the
Improvements from the Plans or Governmental Requirements, or (c) any encroachment by any part
of the Improvements, or any structure located on the Property, on any easement, property line, or
restricted area, or any encroachment by any such structure on any building line.
4.4 Storage of Materials. Borrower shall cause all materials supplied fir, or intended to
be utilized. in, the construction of the Improvements, but not affixed to or incorporated into the
Improvements or the Property, to be stored on the Property or at such other location as may be
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approved by I.,ender in writing, with adequate safeguards, as required by (.,ender, to prevent loss,
theft, damage, or commingling with other materials or projects.
4.5 Inspection of the Property. Borrower shall permit Lender, any Governmental
Authority, and their agents and representatives to enter upon the Property and any location where
materials intended to be utilized in the Constralciion of the Improvements are stored, for the purpose
of inspection of the Property and such materials at all reasonable times.
4.6 Notices by Governmental Authority, Casualty, Condemnation. Borrower shall
timely comply with and promptly furnish to (.,ender true and complete copies of any notice or claim
by any Governmental Authority pertaining to a Property. Borrower shall promptly notify Lender of
any fire or other casualty or any notice of taking or eminent domain action or proceeding affecting a
Property, or the threat of any such action or proceeding of which Borrower becomes aware.
4.7 Special /1eColllit, If requested by Lender, .Borrower shall maintain a special account
at a bank or savings and loan association selected by Borrower and reasonably satisfactory to
Lender, into which all Advances (but no other funds), and excluding direct disbursements made by
Lender pursuant to Section 4.9 hereof, shall be deposited by Borrower, and against which checks
shall be drawn only for the payment of (a) costs of labor, materials, and services supplied for the
construction of the Improvements specified in each Approved Budget and (b) other costs and
expenses incident to the Loan and the construction. of the Improvements specified in an Approved
Budget.
4.8 Application of Advances. Borrower shall disburse all Advances for payment of
costs and expenses specified in an Approved Budget, and for no other purpose.
4.9 Direct Disbursement and Application by_Lender. In accordance with and subject to
the Agreement (defined herein), Lender shall have the right, but not the obligation, to disburse and
directly apply the proceeds of any Advance to the satisfaction of any of 13ot-rower's obligations
hereunder or under any of the other Loan Instruments. Any Advance by Lender for such purpose,
except Borrower's .Deposit, shall be part of a Loan and shall be secured by the Loan Instruments.
lorrower hereby aattthorizes lender to hold, use, disburse, and apply a Loan and the Borrower's
Deposit for payment of costs of construction of the Improvements, expenses incident to a Loan and
the Property, and the payment. or performance of any obligation of Borrower hereunder Or under any
of the other Loan Instruments. Borrower hereby assigns and pledges the proceeds of each Loan and
the Borrower's :Deposit to Lender for such purposes. Lender may advance and incur such expenses
as Lender deems necessary for the completion of construction of the Improvements and to preserve
a Property, and any other security for a I.,oan, and such expenses, even though in excess of the
amount oI a Loan, shall be secured by the Loan Instruments and payable to Lender. Lender may
disburse any portion of any Advance at any time, and from time to time, to persons other than
Borrower for the purposes specified in this Section 4.9 irrespective of the provisions of Section 2.3
hereof, and the amount of Advances to which Borrower shall thereafter be entitled shall be
correspondingly .reduced.
4.10 Costs and Expenses.
by this Loan Agreement, including,
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Borrower shall pay when due all costs and expenses required
without limitation, (a) all taxes and assessments applicable to
City al ltrtntsvitle\lntcrim Construction Loan Agreement
each Property, (b) all fees ti)r filing or recording the Loan Instruments, (c) all fees and commissions
lawfully due to brokers, salesmen, and agents in connection with a Loan, or a Property, (d) all fees
and expenses of counsel to .Lender, (e) all title insurance and title examination charges, including
premiums for the Title Insurance, (f) all survey costs and expenses, including cost of a Survey, (g)
all premiums for Insurance Policies, and (h) all other- costs and expenses payable to third patties
incurred by .Lender in connection with the consuinination of the transactions contemplated by this
Loan Agreement.
4.11 Addi.tiPPO 1) (2cuplcnts. Borrower shall execute and deliver to Lender, from time to
time as requested by Lender, such other documents as shall reasonably be necessary to provide the
rights and remedies to Lender granted or provided for by the Loan Instruments.
4.12 Inspection of Books and Records. Borrower- shall permit Lender to examine and
copy the books and records of Borrower pertaining to a Loan and a Property, and all contracts,
statements, invoices, bills and claims for labor, materials, and services Supplied for the Construction
of the Improvements.
4.13 No Liability of ,ender_. Lender shall have no liability, obligation, or responsibility
whatsoever with respect to the construction of Improvements except to advance the Loan and the
Borrower's Deposit pursuant to this Loan Agreement. Lender shall not be obligated to inspect a
Property or the construction of Improvements, nor be liable or responsible for any defect in a
Property or Improvements by reason of inspecting same, nor be liable for the performance or cletintlt
of row er , he 'Inspecting Engineers, Architects when applicable, General COitl [otor ,
when
applicable, Contractor, or any other party, or for any Failure to construct, complete, protect or insure
Improvements, or for the payment of costs of labor, materials, or services supplied for the
construction of the Improvements, or for the performance of any obligation of Borrower
whatsoever. Nothing, including without limitation any Advance or acceptance of any document or
instrument, shall be construed as a representation or warranty, express or implied, to any party by
Lender.
4.14 No Conditional Sale Contracts. Without the prior written consent of Lender, no
materials, equipment, or fixtures shall be supplied, purchased, or installed for the construction or
operation of 'Improvements pursuant to security agreements, conditional sale contracts, lease
agreements, or other arrangements or understandings whereby a security interest or title is retained
by any party or the right is reserved or accrues to any party to remove or repossess any materials,
equipment, or fixtures intended to be utilized in the construction or operation of the Improvements.
4.15 1)efe»sc of_Actions. Lender may (but shall not be obligated to) commence, appeal'
in, or defend any action or proceeding purporting to affect a Loan, a Property, or the respective
rights and obligations of Lender acid Borrower pursuant to this I..oan Agreement. Lender may (but
shall not be obligated to) pay all necessary expenses, including attorneys' fees and expenses
incurred in connection with such proceedings or actions, which Borrower agrees to repay to Lender
upon demand,
4.16 Prohibition on Assignment Of Bor'rower's Interest. Borrower shall not assign or
encumber any interest of Borrower hereunder without the prior written consent of Lender.
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4.17 Payment of Claims. .Borrower shall promptly pay or cause to be paid when due all
costs and expenses incurred in connection with each Property and the construction of:Improvements
thereon, and Borrower shall keep each Property fine and clear of any lien, charge, or claim other
than the encumbrances of the Deed of Trust covering such Property and other liens approved in
writing by Lender. Notwithstanding anything to the contrary contained in this Loan Agreement,
Borrower (a) may contest the validity or amount of any claim, of any contractor, consultant,
architect, or other person providing labor, materials, or services with respect to a Property, (b) may
contest any tax or special assessments levied by any Governmental Authority, and (c) may contest
the enforcement of or compliance with any (Governmental Requirements, and such contest on the
part of I:3orrower shall not be a default hereunder and shall not release Lender .Iroin its obligations to
make Advances hereunder; provided, however, that during the pendency of any such contest
Borrower shall furnish to Lender and Title Company an indemnity bond with corporate surety
satisfactory to Lender, Lender and 'Title Company or other security acceptable to them in an amount
equal. to the amount being, contested plus a reasonable additional sum to cover possible costs,
interest, and penalties, and provided further that Borrower shall pay any amount adjudged by a court
of competent jurisdiction to be due, with all costs, interest, and penalties thereon, before such
judgment becomes a lien on such Property.
4.18 Restrictions and Annexation. .Borrower shall not impose any restrictive covenants,
casements or other encumbrances upon a Property, execute or file any subdivision plat affecting a
Property, or consent to the annexation ofa Property to any city without the prior written consent of
Lender.
4.19 Tax Receipts. Subject to the provisions of Section 4.18 hereof, Borrower shall
furnish Lender with receipts. or tax statements marked "Paid" or, if required by Lender, copies of tax
statements accompanied by copies of .Borrower's checks issued in payment of such taxes to
evidence the payment of all taxes levied on the Property on or before the date such taxes become
delinquent.
4.20 Reporting; by Borrower - NSP Subrecipient Activity Report. Until all NSP
obligation requirements are met, the NS:I' Subrceipient Activity Report shall be submitted
monthly. Thereafter, the NSP Subreeipient Activity :Report shall be submitted quarterly. The
Beneficiary shall determine whether all NSP obligation requirements have been met and may
amend this rule from time to time or as needed.
4.21 Notice of Litigation (l<iims,_atrci financial. Change. Borrower shall promptly
infonn Lender of (a) any litigation against Iorrower or affecting a Property, which, if determined
adversely, might have a material ad.verse effect upon the financial condition of Borrower or upon
such Property, or might cause an Event of Default, (b) any claim or controversy which might
become the subject of such litigation, and (c) any material adverse change in the financial condition
of Borrower.
4.22 Hold Harmless. Borrower shall defend, at its own cost and expense, and hold
Lender harmless froth, any proceeding or claim in any way relating to a Property or Loan
Insirtiinents executed in connection with a Loan. All costs and expenses incurred by Lender in
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protecting their interests hereunder, including all court costs and attorneys' fees and expenses, shall
be borne by Borrower. The provisions of this Section shall survive the payment in roll of each Loan
and all other indebtedness secured by each Dced of Trust and the release of such Deed of'1 `rust as to
events occurring and causes of action arising before such payment and release.
4.23 Hazardous Materials; Indemnification.
cation.
(a) Borrower agrees (i) that Borrower shall not receive, store, dispose or release any
Hazardous Materials on or to a Property or transport any Hazardous M.aterials, to or from a Property
or permit the existence of any Hazardous Materials Contamination; (ii) to give written notice to
Lender immediately upon Borrower's acquiring knowledge of the presence of any Hazardous
Materials on a Property or of the transport of any Hazardous Materials to or from a Property or the
existence of any .Hazardous Materials Contamination, with a full description thereof; (iii) to
promptly, at Borrower's sole cost and expense, comply with any Governmental Requirements
requiring the removal, treatment or disposal of' such Hazardous .Materials or Iazardous Materials
Contamination and provide (_,ender with satisfactory evidence of such compliance; (iv) to provide
Lender, within thirty (30) days after demand by .Lender,. with a bond, letter of credit or similar
financial assurance evidencing to Lender's satisfaction that the necessary hinds are available to pay
the cost of removing, treating and disposing of such Hazardous Materials or Hazardous Materials
Contamination and discharging any assessments which may be established on a Property as a result
thereof; and (v) to insure that all leases, licenses, and agreements of any kind now or hereafter
executed which permit any party to occupy, possess or use in any way a Property or any part
thereof, whether written or oral, .include an express prohibition on the disposal or discharge of any
hazardous Materials at or affecting a Property, and a provision that failure to comply with such
prohibition shall expressly constitute a default under any such agreement.
(b) Borrower shall not cause or suffer any liens to be recorded against a Property as a
consequence of, or in any way related to, the presence, remcdiation or disposal of Hazardous
Materials in or about. such Property, including any state, federal or local so- called "Super.f:und" lien
relating to such matters.
(c) Borrower shall at all times retain any and all liabilities arising from the presence,
handling, treatment, storage, transportation, removal or disposal of Hazardous Materials on a
Property. Regardless of whether any Event of Default shall have occurred and be continuing or any
remedies in respect of a Property are exercised by (...ender, Borrower shall to the extent authorized
by law and subject to funds legally available for the purpose defend, indemnify and hold harmless
Lender and any trustee named in the Deed of Trust covering such Property (and any successor to
such trustee) from and against any and all liabilities (including strict liability), suits, actions, claims,
demands, penalties, damages (including, without limitation, lost profits, consequential damages,
interest, penalties, fines and monetary sanctions), losses, costs and expenses (including, without
limitation, attorneys' fees and expenses, and remedial costs) (the foregoing are hereinafter
collectively referred to as "Liabilities ") which may now or in the future (whether before or alter the
cuhnination of the transactions contemplated by this .Loan Agreement) be incurred or suffered by
Gender or the trustee named in the .l.)eed of Trust (or any successor to such trustee) by reason of,
resulting from, in connection with or arising in any manner whatsoever out of the breach of any
warranty or covenant or the inaccuracy of any representation of Borrower contained or referred to In
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this Section or Section 3.7 of this Loan Agreement and the Iced of 'Trust of which may be asserted
as a direct or indirect result of the presence on or under, or escape, seepage, leakage, spillage,
discharge, emission, or release from a Property of any Hazardous Materials or any Hazardous
Materials Contamination or arise out of or result from the environmental condition of the Property
or the applicability of any Governmental IRequirements relating to Hazardous Materials, whether or
not occasioned) Wholly or in part by any condition, accident of event caused by Borrower. Such
l..iabilit.ies shall include, without limitation: (i) injury or death to any person; (ii) damage to or loss
of the use of any property; (iii) the cost of any demolition and rebuilding of any improvements now
or hereafter situated on the Property or adjacent. property, and the cost of repair or remediation Of
any such improvements; (iv) any lawsuit brought, good :faith settlement reached, or governmental
order relating to the presence, disposal, release or threatened release of any Hazardous Materials on,
from or under the Property; (v) the imposition of any lien on the Property arising froth the activity
of Borrower or Borrower's predecessors in interest on the Property or from the existence of
Hazardous Materials or Hazardous Materials Contamination upon the Property; and (vi) the cost of
any activity required by an Governmental Authority.
(d) The covenants and agreements contained in this Section shall survive the
consummation of the transactions contemplated by this Loan Agreement.
4,24 Notice to Proceed. Borrower inilst receive a Notice to Proceed from Lender prior to
the start of any construction activities and/or prior to disbursements of, funding for Eligible Costs.
Texas Neighborhood Stabilization Program ( "NSI' ") developments with eight (8) or more units are
required to meet Davis Bacon Prevailing Wage Regulations and submit required documents prior to
the issuance of the Notice to Proceed. At a ailinimum, a labor Standard Officer ('I'17.I-ICA Form
6.02) iilust be submitted to Lender to receive authorization for acquisition disbursement. If
construction of Improvements will begin within ten (10) days fi'oni the date hereof, Borrower must
have complied with the Lender's established Notice to Proceed policy and procedures prior to the
execution of this Agreement.
4.25 ],cad- ]'3rased Paint. Borrower shall CilSure that the Lot(s) and hnpt'ovcnients meet
the lead- basal paint requirements set forth in 24 CFR .Part 35 Subparts A, 13, J, K, M, and R, as
app 1 i.cable.
4.26 Accessibility. Borrower shall ensure that the Improvements meet the accessibility
requirements applicable to the Lot(s) and Inlpmverllcnts set forth in 24 CFR Part 8, which
implements Section 504 of the Rehabilitation Act of 1973 (29 USC Section 794), and the design
and construction requirements set forth in 24 CFR Section 100.205, which implements the Fair
blousing Act (42 C.1SC Sections 3601- 3619).
4.27 Federal ])rug Free Workplace Act. Borrower shall comply with the Federal Drug
Free Workplace Act of 1988 and the regulations promulgated thereunder including, without
limitation, 54 CFR Part 4956.
4,28 Non - procurement, Debarment and Suspension. Borrower shall comply with non-
procurement, debarment and suspension standards set forth in 2 CFR Part 180, Subpart C, as
required by 2 CFR Part 2424 and shall not employ, award a contract to, or fund any person that
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has been debarred, suspended, proposed .for debarment or placed on ineligibility status by BUD
or the Department. Borrower shall post any notice of procurement and job opportunities related
to this Agreement on the Department's wcbsite on the workintexas.com websitc.
4.29 National Flood Protection Act. Thc Lot(s) and hnprovement :s will be constructed
in compliance with elevation requirements that meet or exceed those in the (SAP, the National Flood
Protection Act, HUD 24 CFR Part 55, and any local requirements.
4.30 Byrd Amendment: Prohibition for Influencing Federal Entities. To the best of
Borrower's knowledge, 13orrower has complied with all restrictions, certifications and disclosure
requirements contained in the Byrd amendment to the fiscal 1990 appropriations measures for
the United States Department of the Interior (P1.. 101 -121) and any guidelines and rules issued
by any federal entity in connection therewith, if applicable.
ARTICLE 5 - RIGI'I'I'S AND REMEDIES S OF LENDER
5.1 Rights of Lender. Upon the occurrence of an Event of Default, Lender shall have
the right, in addition to any other right or remedy of Lender, but not the obligation, in its own name
or in the name of Borrower, to enter into possession of each Property; to perform all work .necessary
to complete the construction of Improvements substantially in accordance with the Plans and
Governtnental Requirements; and to employ watchmen and other safeguards to protect such
Property. To the extent authorized. by law, Borrower hereby appoints Lender as the attorney -in -fact
of Borrower, with full power of substitution, and in the name of Borrower, if Lender elects to do so,
upon the occurrence of an Event of Default, to (a) use such sums as are necessary, including any
proceeds of the Loan and the Borrower's Deposit, make such changes or corrections in the Plans,
and employ such architects, engineers, and contractors as may be required for the purpose of
completing the construction of the Improvements substantially in accordance with the Plans and
Governmental Requirelnenls, (b) execute all applications and certificates on Borrower's behalf
which niay be required for completion of construction of the Improvements, (c) do every act with
respect to the construction of the Improvements which Borrower may do, and (d) prosecute or
defend any action or proceeding incident to the Property. The power of attorney granted hereby is a
power coupled with an interest and irrevocable. Lender shall have no obligation to undertake any of
the foregoing actions, and, if bender should clo so, it shall have no liability to l3orrower fi)r the
sufficiency or adequacy of any such actions taken by Lender.
5.2 Cessation of Advances. Upon the occurrence of an Event of Default, the obligation
of Lender to disburse the Loan and the Borrower's Deposit and all other obligations of Lender
hereunder shall, at Lender's option, immediately terminate, unless and until reinstated by Lender in
writing.
5.3 Acceleration. Upon the occurrence of an Event of Default, Lender may, at its
option, declare the I.,oan irnmediatcly due and payable without notice of any kind (unless notice is
required by applicable law).
5.4 Funds of Lender. Any funds of Lender used .for any purpose referred t0 in this
Article 5 shall constitute Advances secured by the Loan instruments and shall bear interest at the
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mite specified in. the Note executed in connection with the Loan .for which funds are used to be
applicable after default thereunder.
5.5 No Waiver or Exhaustion. No waiver by Lender of any of i.ts rights or remedies
hereunder, in the other Loan Instruments, or otherwise, shall be considered a waiver of any other or
subsequent right or remedy of Lender; no delay or omission in the exercise or enforcement by
Lender of any rights or remedies shall ever be construed as a waiver of any right or remedy of
Lender; and no exercise or enforcement of any such rights or remedies shall ever be held to exhaust
any right or remedy of Lender.
5.6 Role of Lender. Any term or condition hereof, or of any of the Loan Instruments to
the contrary notwithstanding, Lender shall not have, and by its execution and acceptance of this
Loan Agreement hereby expressly disclanns, any obligation or responsibility for the management,
conduct or operation of the business and affairs of Borrower, and any terra or condition hereof, or of
any of the Loan Instruments, permitting Lender to disburse funds, whether from the proceeds of the
Loan, the Borrower's Deposit, or otherwise, or to take or refrain from taking any action with respect
to the Borrower, the Property or any other collateral for repayment of the Loan, shall deem to be
solely to permit Lender to audit and review the (management, operation and conduct of the business
and affairs of Borrower, and to maintain and preserve the security given by Borrower to Lender for
each. Loan and may not be relied upon by any other person. Further, Lender shall not have, has not
assumed and by its execution and acceptance of this Loan Agreement hereby expressly disclaims
any liability or responsibility for the payment or performance of any indebtedness or obligation of
Borrower, and no term or condition hereof, or of any of the Loan Instruments, shall be construed
otherwise.
Borrower hereby expressly acknowledges that no term or condition hereof, or of any of the
Loan l)ocuInents, shall be construed s0 as to deem the relationship between Borrower and (.,ender to
be other than that of Borrower and Lender, and .Borrower shall at all times represent that the
relationship between 13orrower and Lender is solely that of Borrower and Lender. Borrower hereby
indemnifies and agrees to hold Lender harmless from and against any cost, expense or liability
incurred or suffered by Lender as a result of any assertion or claim of any obligation or
responsibility of Lender for the management, operation and conduct of the business and affairs of
Borrower or as a result of any assertion or claim of any liability or responsibility of lender :for the
payment ar performance of any indebtedness or obligation of Borrower.
ARTICLE 6 - GENERAL TERMS AND CONDITIONS
6.1 Notices. All notices, demands, requests, approvals and other communications
required or permitted hereunder shall be in writing and shall be deemed to have been given when
deposited in a regularly maintained mail receptacle of the United States Postal Service, postage
prepaid, certified, return .receipt requested, addressed to Borrower, Lender, as the case may be, at
the respective addresses set forth on the first page of this Loan Agreement and Section 1.40 ol.'this
Loan Agreement as applicable, or such other address as Borrower, Lender may froth time to time
designate by written notice to the other as herein required. Notice given in any other manner shall
be deemed effective only Wand when received by the party notified.
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6.2 Entire Agreement and Modifications. The Loan Instruments constitute the entire
understanding and agreement between the undersigned with respect to the transactions arising in
connection with each Loan and supersede all prior written or oral understandings and agreements
between the undersigned in connection therewith. No provision of :this Loan Agreement or the
other Loan Instruments may be modified, waived, or terminated except by instrumcnt in writing
executed by the party against Whoa) a modification, lcation, waiver, or termination is sought to be enf.oreed.
6.3 Sevet'obility. In case any of the provisions of this Loan Agreement shall for any
reason be held to be invalid, illegal, or unenforceable, such invalidity, illegality, or unenforceability
shall not af'f'ect any other provision hereof, and this Loan Agreement shall be construed as if such
invalid, illegal, or unenforceable provision had never been contained herein.
6.4 Election of Remedies. Lender shall have all of the rights and remedies granted in
the I..oan Instruments and available at law or in equity, and these same rights and remedies shall be
cumulative and may be pursued separately, successively, or concurrently against Borrower or the
Property or any part thereof, at the sole discretion of Lender. The exercise or failure to exercise any
of the same shall not constitute a waiver or release thereof or of any other right or remedy, and the
same shall. be nonexclusive.
6.5 Form and Substance. All documents, certificates, insurance policies, and other items
required under this Loan Agreement to be executed and /or delivered to Lender shall be in form and
substance satis.finetory to Lender.
6,6 Limitation on Interest. All agrecm.ents between Borrower and Lender, whether now
existing or hereafter arising and whether written or oral, are hereby expressly limited so that in no
contingency or event whatsoever, whether by reason of acceleration of the maturity of the Loan , or
otherwise, shall the amount paid, or agreed to be paid to Lender for the use, forbeamce, or
detention of the money to be loaned hereunder or otherwise or for the payment or performance of
any covenant or obligation contained herein or in any Note, Deed of Trust or in any other Loan
Instruments, exceed the maximum amount permissible under applicable law. If from any
circumstance whatsoever, fulfillment of any provision hereof or of any such .Note, iced of MIA or
other :Loan Instruments, at the time performance of such provision shall be due, shall involve
transcending the limit of validity prescribed by applicable law, then ipso facto, the obligation to be
fulfilled shall be reduced to the limit of such validity, and if from any circumstance the Lender shall
ever receive as interest or otherwise an amount which would exceed the highest lawful rate, such
amount which would be excessive interest shall be applied to the reduction of the principal amount
owing on account of the Loan or on account of any caller principal indebtedness of the Borrower to
the Lender, and not to the payment of interest, or if such excessive interest exceeds the unpaid
balance of principal hereof and such other indebtedness, such excess shall be refunded to the
Bon-ower. All sums paid or agreed to be paid to the Lender for the use, .forbearance or detention of
the indebtedness of the Borrower to the Lender shall, to the extent permitted by applicable law, be
amortized, prorated, allocated and spread throughout the full term of such indebtedness until
payment in full so that the actual rate of interest on account of such indebtedness is uniform
throughout the term thereof The term "applicable law" as used herein means (1) the law pertaining
to maximum rates of interest that is now in c feet and (2) any law that comes into effect at any time
in the future allowing a higher maximum interest rate than the law now in effect. The terms and
'falditt\Lo ut Does \NSPlltedevelopmcnt11 2612 City of Iluntsvillellaterim Construction Loan Agreement
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provisions of this Section will control and supersede every other provision of all agreements
between Borrower and )_,ender.
6,7 No 'Third Party Beneficiary. This Loan Agreement is for the sole benefit of Lender
and Borrower and is not Tar the benefit of any third party.
6.8 l3o1rower in Control. In no event shall Lender's rights and interests under the Loan
Instruments be construed to give )..,ender the right to, or be deemed to indicate that Lender is in
control of the business, management or property of Borrower or has power over the daily
management functions and operating decisions made by .Borrower,
6.9 Number and Gender. Whenever used herein, the singular number shall include the
plural and the plural the singular, and the use of any gender shall be applicable to all genders. The
duties, covenants, obligations, and warranties o.f l3orrowcr in this I.,oan Agreement shall be,joint and
several obligations ot'Borrower and of each Borrower if more than one.
6.10 Captions. '1'ho captions, headings, and arrangements used in this Loan Agreement
are for Convenience only and do not in any way affect, limit, amplify, or modify the terms and
provisions hereof.
6.11 Applicable Law. This loan agreement and the loan instruments shall be governed by
and construed in accordance with the laws of the State of Texas and the laws of the United States
applicable to transactions within such state.
6.12 INi:DI MNI'1:'Y. TO THE EXTENT AUTHORIZED BY LAW, AND SUBJECT TO
1'I.JNDS LEGALLY AVAILABLE FOR THAT PtIRI.'OSE, BORROWER 1-II R1 BY
LX1'R1SS.LY ACKNOWI,1:sD(1IS AND RECO(:iN121S ITS 1 J SPONSII3II.,1'1 Y FOR AND
AGREES TO INDI:'sMNIFY AND HOLD I..1 NDI:;R AND 1'l'S SUCCESSORS AND ASSIGNS
ABSOLUTELY 11A.RMI.,ISS FROM AND AGAINST ALL COSTS, EXPENSES, LIABILITIES,
LOSS, DAMAGE OR OBLIGATIONS INCURRED BY OR IMPOSED UPON LENDER OR Ti'S
SUCCESSORS AND ASSIGNS IN CONNECTK)N WI I -1 THE ASSERTION OF (A) ANY
CLAIM FOR BROKERAGE, , AGENCY OR F.INDER.'S 14FS FOR COMMISSIONS IN
CONNECTION WI'1'.FI THE LOAN; OR (I3) ANY CLAIM FOR ATTORNEYS', APPRAISAL,
TITLE INSURANCE, INSPECTION OR OTHER FEES, COSTS AND EXPENSES INCURRED
IN CONNECTION W.ITII THE NI00TIA`1'ION, C1.OS.lNCr, ADMINISTRATION,
COT.,I.,1 C :710N OR RI ::FINANCING OF THE LOAN, WI-IICH. ARISE BY, THROUGH OR ON
BEHALF OF "I'Fll:' BORROWER OR ANY AGENT OR RIs:PRFiSI N'I'A'.TIVL OF BORROWI:sR,
WI'l'I- IOU'1' IN'11:;N.DINC '10 1.IM.l'1' THE REMEDIES S AVAILABI..i: '1'0 L13NDI R WI`1'11
RI:?SPE,C'1, .1.'O THE 1iNFORCI'sMi N1 OF 1`.1'5 INDEMNIFICATION RIGHTS AS STAT1 1)
HEREIN OR AS STATED IN ANY LOAN .INS1'R:UMI:N'I', IN '1'111: EVENT ANY CI...A.IM OR
DEMAND IS MADE OR ANY OTHER FACT COMES TO ".1'111; A'VI'I NI' ION OF I,1 ND:I R IN
CONNECTION WI`1'11, RI; 1., A` 1'1NC:i OR P.I::;R':1AINING 'TO, OR ARISING OU1' OF '1'111:
1'.RANSAC:'T`IONS CON1'1 MPI.,A1'1?,1) •3Y "17.IIS AGREhMl N'1', WIIICI:i 1.,I N1)1;R.
RFASONAI3l..,Y BELIEVES S MICX.I1'1' INVOLVE OR LEAI) `10 ,BOMB LIABILITY 01:
I..1:;NDER, BORROWER 51-IAI,1, IMMEDIATELY UPON RECEIPT OF Wlt.l`1-`11-?N
NO`111 ICATION OF ANY SU( 11 CLAIM OR DEMAND, ASSUME; IN FUI.,1, '1'111:;
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PERSONAL RESPONSIBILITY FOR AND THE DEFENSE OF ANY SLJCII CLAIM OR
DEMAND AND PAY IN C ONNLC "I1ON "1 IIi: U W.If11 ANY LOSS, DAMAGE,
DEFICIENCY, I,1A131L:f'1'Y OR OL31.,IGA"I`ION. IN 'FFIE ENF,NT OF COURT AULION IN
CONNIsC::1'ION WITH ANY SUC1I CLAIM OR D.1'MANI), THE I30:RROWI R
ASSUME; IN .FU11., THE RESPONSIBILITY FOR `1'LIL 1)11 NSE OF ANY SUCII ACTION
AND S %TALI., .IMMLD.IA"i'.I?1,Y SATISFY AND DISCHARGE ANY FINAL DE,CREE OR
JUDGMENT RLN1.)1:'sRI 1:) "1'111;RI IN. "I'lll; 1..,13NDI R SIIAI.1 HAVE, THE RIGHT 1'O JOIN
I'1.1I? BORROWER AS A PARTY DEFENDANT IN ANY 1.13GAL ACTION BROUGHT
AGAINST I'1', AND THE BORROWER HEREBY CONSENTS TO THE 1 N'1'RY OF AN
ORDER MAKING IT A PARTY DEFENDANT TO ANY SUCH ACTION.
6.13 Survival of Covenants. The covenants hereof shall survive the execution and
delivery of the Loan Instruments, It is agreed that the terms hereof and the terms of the Loan
Instruments shall be cumulative and all such terms shall be construed in a manner that the sarne are
not inconsistent; provided, however, if a conflict arises, the terms of this Loan Agreement shall
control.
Lender.
6.14 Assigtmient. Borrower may assign this Contract only upon written consent of
ARTICLE 7 - SPECIAL PROVISIONS
7.1 Continuing Liability. Borrower agrees to develop, construct and complete all of the
improvements pursuant to the Plans and to the satisfaction of all Governmental Authorities. If
Borrower does not complete the Improvements or if the construction thereof is not satisfactory to
Governmental Authorities having jurisdiction thereon, .Lender shall have the option to complete the
Improvements to the satisfaction of the Governmental Authorities. If Lender elects to construct and
complete the Improvements or take such other action as may be necessary to obtain the approval of
the Governmental Authorities for the construction of the Improvements, Borrower promises to pay
to Lender, in addition to any other amounts which may be owing under any of the Loan
Instruments, all SUMS expended by Lender to co.tnplete the Improvements to the satisfaction of the
Governmental Authorities, and such amounts owing to Lender shall be payable on demand and shall
bear interest at the rates provided in the Note secured by the Property on which such Improvements
have been completed by Lender.
7.2 Sales to NSP Eligible Household Requirement. It is the intent of Lender and
Borrower that 100% of the funds made available under NSP are to be used to meet the low and
moderate income requirement established in the (Housing and Economic Recovery Act Section
2301 (1 }(3)(A) (i.) and (ii) of 2008.) The low and moderate income requirement includes individuals
and families whose incomes clo not exceed 120% of area median income as defined therein.
Such individuals and families will be considered an Eligible Household, as determined by
Lender as stated herein and in accordance with any other corresponding provision of federal law
or provisions of succeeding laws as may be amended from time to time. The determination of
whether a purchaser is an Eligible Household shall be made by Lender, in their sole absolute
discretion.
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7.3 Counterparts. This Loan Agreement and any amendments hereto may be executed in
several counterparts, each of which shall be deemed to be an original copy, and all of which
together shall constitute one agreement binding on all parties hereto, notwithstanding that all the
parties shall not have signed the stone counterpart.
7.4 NSP Contract and Agreement. Each term and provision of this Construction
Loan Agreement is expressly subject to the terms and condition of the Neighborhood
Stabilization Program Contract Number 77099999126 ( "NSI' Contract ") executed between
Office of Rural AfThirs established within the Department of Agriculture, a public and official
agency of the State of Texas, formerly known as 'Texas Department of Rural Affairs, and
Borrower herein, dated to be effective September 1, 2009 in the original principal sum of
$1,050,000.00, as transferred and assigned to Lender by Assignment of Contract on August. 30,
2011., as amended and extended and as may be further amended from time to dine. The lot or
lots securing this loan must be improved with a single family dwelling completed in good and
workmanlike manner and sold to an Eligible I-louschold who will maintain the affordability
period for rental or homeownership in accordance with the NSP. The terms of the NSP Contract
shall govern over any conflicting provision hereof.
TIIIS WRITTEN CONSTRUCTION LOAN AGREEMENT, AND ANY OTHER
WRITTFN AGREEMENTS SIGNED CONTEMPORANEOUSLY WI'111 'I'IIE SIGNING
IIEREOIt REPRESENT T.IIE FINAL AGREEMENT BETWEEN '1'IIE PARTIES AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF I'RI.OR, CONTEMPORANEOUS
OR SUBSEQUENT ORAL AGREEMENTS OF THE PAR'T'IES. TC:1.ERE ARE NO
UNWRITTEN N ORAL AG.lt1{;I <',MI N'.1'S BETWEEN '11III,, PAR'1 [ES.
EXECUTED CUI'f i.) AND DELIVERED as of the date first recited.
LENDER:
TEXAS I).E1'ARTMENT OF 11OUSING AND
COMMUNITY AFI1' IRS, a public and official
agency of the 'tate 0 /'exits
By:
Name: _._. IL.. jity K. ul 1 /fir
Its: Duly authorized officer or representative
•
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BORROWER:
CITY OF IIUNTSVIL LE, a political subdivision
of the State of Texas
By:
Name: Mac Woodward
Its: Mayor
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EXHIBITS
A LEGAL DESCRIPTION (2 pages)
A -1 - CONDITIONS TO FIRST ADVANCE::;
13 — APPLICATION FOR ADVANCE FOR RECONSTRUCTION AND NEW
CONSTRUCTION ("APPLICATION FOR. ADVANCE ")
I3 -1- DRAW SCIIEDUI.,E, FOR RECONSTRUCTION ANI.) NEW CONSTRUCTION
( "DRAW SCHEDULE)
C APPLICATION AND CERTIFICATE E FOR PAYMENT
I) AFFIDAVIT OF COMPLEXION
I:: -- WAIVER AND SUBORDINATION OF MECHANIC'S LIEN CLAIMS
F RI SOI.,U'1'ION CERTIFICATE
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EXHIBIT A -- LEGAL DESCRIPTION
MUTES AN0 aOUNas DESCRIPTION of
tot 27 of The Meadow at Roles Creek 8ubd ivlsio>,, HobtevlUe, Texas
Being a 0.240 of to sue (10,474 moue leer) trot Mimi tooted in the Pleasant Gray Louguo, Abstract
24, Walker County, Texan and being aU of Lot 27 of Tin Meadow at Ilona Creak Subdlvitlon,
rh-orded k Velsmo 4, Page I31 of Ilse Plat Records of Walker County, Teuu (P.1.. W.C.T.); said 0.240
of an acre *fiend b41ng morepaslrulirly dose abed by macs and bounds as follows:
BEGINNING at a fouad 5f94neit Ire ,od In the oolsting easterly right of way line of Ilunko Drive (50`
R.O.W.) of sotool under Volume 4, Page 131 of said Pia Raoorde, bolas the sog0iwesterly tomer of. said
tot 21, sense bring the twnhwisterly comae of Lot 26 of sold Tho Meadow it Itorce Creole Subdivision;
Tf Ii;14C£, North 03.43'32" Weil,* discoing' of 87.16 feet, along tha ax$lin8 etttuly right of wty line
of Berake Drive, being the westerly line of sold Lot 27, passing et 44.93 Roe a found 5/8•Inoh iron rod
and continuing fo a sat X" col la count* at the nodhwasleety comer of sat Lot 27, beteg the
eoolhwasterly comer of Lo12$ of said The Meadow at Norte (leak Sebd Ivlsloa;
TIIItNC£, Math 06016'21" Rant, a Callous of 120,00 fat, along the oodhaly lino of Kid Lot 27,
baha8 the eoalhaly lbw of said Lot 26 to a sa 54-Inch Imo rod with "OS" tap at the natheaslerly confer
of told Lei 27, bekr4l}m southeasterlyeoraer ofto Id Lot 28;
THENCE, South 03•43'32" Eta, a.dideate of 67.20 feat, along tha easterly lino of said Lot 27 to the
sourbesuvly oornarof said Lot 22, betas the rnrthem icily corner tad Lot 24;
TI1ENC£, &alb 86°1020" %Vat, a digitate of 120.00 feet, Wong ilia soothteiy litre of said Lot 23,
bolos the noatO sly line Mead La 26 to iha Po1nt of (testa ales tad edslehilag 0.240 of an urn (10,474
'Koine feet) of tend,
itorhoofal Cootrot W bared on holding Cloy of Huntsville Monument' No. 7574 (grid toordinire of
North - 10,262 415.31 & Rats- 3,602,009.473) sod 7575 (grid toordlnalo of North u. 10,262,526,24 &
Oast. 3,401,711.255). asulaga described ue deleted 10 the Texas Cwvdinete Syatora of 1983, Central
Zone. DIstentet shown ue US Survey Peet to "P1o1d.Holz.oaiay" oohs end mu, be converted lo "GRID"
unils, by muldptying by a combined Kale Weir of 0.99981. During ea also related to the tubdfvWon
piai of The Meadow al Hone each subdivision of record undo Volu,ae 4, Page 131 of said Plat
Records,
Plat of sv40 date acnompauks Ibis desvrtptioo.
Prepared byr
Qeosoluttoue, LLC
21814 Rudd. Road.
Sprla g, Tease
Tal, 291- 681.9766
Soh No, 12-249403
EXHIJ lT "Ae
PAGE. l
T: \klIdlLoan Do es\NSPlited eveIopntent112612 City of 1)urntsvillellutcritn Conslt=lion 1,ovt Agreement
Redcvelolnncnt _v4_.2012022'7.doc
Page 29 of 59
roBtio WNtyvoirItiCti stile our
fare Rotro3��
tee' Pomro Pot* TAtt
WAllia
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' h1lxvra CAMAY.
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03SI4. STCRN I1.15b18t1
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ms MMA DOW AT
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VOt.4, r0, 131
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sae, 0.2 "W 120.00
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SURVEYOM3 cnrrteATE
1 haoby emir to Tn. City Of Non,ISA•s that 1Ht sonay.eb
mast P1 14 Raven/ 01) ewmyt.led on Fetwryy ,, 1811
Inel Ij.ls ao.ne 1ar.etly ttorounts t !0417 fount et Af
tfoo of rorwyy ono fhet Ufs troetee(n(J tarok/
su4atontlMT tonfnml to 14. aurhnl user Sochly of
PrelftrIon4E Sahotat S1o+Jadt nor 41.0e4..11rna E41
Coidooey ID. CondA■on R S:rnay.
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CMnmumrnl.
AwH7glo IH Control II bvt., on nateho dry of 1Mtt..F•t mowenenl.
3.OJ2.0071., 3 d 7375 (orlt owCtrato of North - zet1.
a tot. 3,eas,Ta0.1s5). flo,^,ayt •4.,- .4 or* feot.dpo 2 }70.44
Cee.arot. Eysltm Of 1P0.$. CerNer zlr... ok,,,tao eno., N.
ar.ey Foot L y , l' yw4 Stoalo on 1. cr4 my as earvarlot ious
V14). Unit* by merIE,(Kq by a tt.'.1 ld .rs(t rota a nAv9tb,
Rtorltoe bee% rat* m.lehor Mr rbdStt'pn Ffot of Ths NHdoo et
of Wok., tth '1.4"f6 ,nter V...me A Pops 131 of M. Plot R.ca4,
Cbv 1r 7.aof•
3. SWae twice. IotG..h.-,n ha.on as Voted an 11athtm,Ikot
bt.ra env to not n (.4.aty 4Ples.nt the FwrilhnU oreerery of
the bbvndyy trOtn.Ate.RTATKOL
e. A d.1c.y144 41 11111 4411 O(( 40nt.h N.s Vol.
LOT 27 OF THE
MEADOW AT HORSE C1REEK
SUBDIVISION OF THE PLEASANT
GRAY LtAGIJE, A -24
In[ WALKER COUNTY, TEXAS
Solutions,LLC
F1001e Pods. Reny ���_.
Phon,rib1 O4( ..97L6oferTJRO
281- 601 -9119
LSV tr., •0 Et o.,. , Vac��,to N/A _ ' ,,.r30 3Mt.y. -. n As ..
+..5 .. k�io067il4htl .•.- R A
•1':1ldtrl\Loan 1:. ?ocs \NS1'1ltedeveloprnent1t2612 City of 1luntsvillellntcrim Consiruction 1 .oan Agreement
ttc dcvclop ncnt...,v4 - 20120227.doc
Page 30 of 59
EXI-JIBI`1' A -1
CONDITIONS TO .ItIRS'I' ADVANCE
(x) 1. The original, executed Note
(x) 2. Certified copy of the executed Deed of Trust
(x) 3. Approved Budget
(x) 4. The Title fisurance Policy
(x) 5. The Plans and Final draft of Construction Contracts
(x) 6. The Survey
(x) 7. Financing Statements (Form tICC -I) with .respect to the security interest granted in
the 1..,oan Instruments, together with evidence of the priority of the .respective security interests
perfected thereby
(x) 8. Intentionally omitted
(x) 9. Building permit and all other permits required by the Governmental Requirements
with respect to the construetion and development of the Property, if applicable
(x) 10. Evidence that all applicable zoning ordinances or restrictive covenants affecting the
Property permit the use for which the Property is intended and have been or will be complied with.
(x) 11. Evidence of the Property's compliance with the requirements of all applicable
"environmental protection" laws, rules, and regulations, whether'edleral, state, or municipal
(x) 12. Evidence that all of the streets providing access to the Property either have been
dedicated to public Use or established by private casement; duly recorded in the records of the
County in which the .Property is located, and have been fully installed and accepted by
Governmental. Authority, that all costs and expenses of the installation and acceptance thereof have
been paid in frill, and that there are no restrictions on the use and employment of such streets that
adversely affect, limit, or impair Borrower's ability to develop and construct the Property or operate
the Property for the purposes and in the manner represented to Lender
(x) 13. Evidence of the availability of all utilities to the Property, including specifically, but
without limitation, gas, electricity, sewer, and water services
(x) 14. Evidence that all necessary action on the pint of Borrower has been taken with
respect to the execution and delivery of this Loan Agreement and the consummation of the
"F; \kIk1\I.oan aloes \NSPUtcdevelopnicnl \12612 City of Iii svillc \Interim Construction loam Agreement
Redevelopment, .v4,..20 120227.doc,
Page 31 of 59
transaction contemplated hereby, so that this Loan Agreement and all Loan Instruments to be
executed ind delivered by or on behalf of Borrower will be valid and binding upon Borrower or the
person or entity executing and delivering such document; specifically the Loan .Instruments have
been duly authorized, executed and recorded or filed in accordance with applicable Governmental
Requirements and original counterparts thereof delivered to Lender, all belore the commencement
of construction of the Improvements, the placing of any materials or supplies on the Lots(s), the
execution or .recording of any Construction Contracts (written or oral) for any of the same or the
performance of any other act which could .rise to a lien claim equal or superior to the liens and
security interests created by the Loan Instruments.
(x) 15. 'the insurance Policies or Certificates of such Insurance Policies
(x) 16. Application Ibr Advance
(x) 17. Application and Certificate for .Payment
(x) 18. Certified resolutions of the board of directors of Borrower authorizing such
corporation to execute the I..oall instruments and perform its obligations thereunder
(x.) 19. 'Tax or assessment certificates or other similar evidence of payment from all
appropriate bodies or entities which have taxing or assessing authority over any of the Property,
staling that all taxes and assessments are current
'1':Ud1d \1oan 1. )ocs \NSl'1[Leilevclapment112G12 City oIIhmisvilleltntcrim Construction Loan Agreement
Redcvcloproont_ _vd. _20120227.dnc
Page 32of59
Date:
EXIIIIU'I' 8
APPLICATION FOR ADVANCE FOR RECONSTRUCTION AND NEW
CONSTRUCTION "APPLICATION FOR ADVANCE"
Department: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
( "'1'DI:1CA "), a public and official agency of the State of Texas
Draw Request No.
Itetnization. of Items
Permissible per Draw
Schedule
Requested Advance: $
(less retainagc) $
Amount to be Funded: $
BORROWER: CITY 01+ HUN I'SVILLE, a political subdivision of the State of Texas
PROJECT: Acquisition and construction of one (1) single family dwelling out property located in
Huntsville, Walker County, Texas more specifically described as
WING 0.240 of an acre of land, more or less, situated in the P. GR.AY LEAGUE,
A -24, Walker County, Texas and being all of LOT TWENTY-SEVEN (27) of
TIII: MEADOW AT HORSE CREEK, according to the reap or plat thereof
recorded in Volume 4, Page 131 of the Plat Records, Walker County, Texas, said
0.240 being more particularly described by metes and bounds on Exhibit "A"
attached hereto and made a part hereof.
88 Bernice Drive, Huntsville, Walker County, "Texas 77320
1. This application and the items accompanying this application (which are incorporated herein
for all purposes) are delivered pursuant to the Construction Loan Agreement dated
2012 between TDIIGA and Borrower (the "Loan Agreement "), each of the
defined terms in the Loan Agreement has the same meaning when used herein or in the attachments
unless indicated otherwise. Borrower hereby certifies to `I'.DIICA that this application is true and
•f :Udkl\IA»in i)oes\NSP \RecleveIopment1126 2 City of I Wino illc\Intcriin ('onslr•nction 1.oan Agreement
Redcvclopmcnt....v1. 20 2t1227.doc
Page 33 of 59
correct in all respects and that this application and every item incorporated herein are genuine; and
I3orrower agrees that `I'L)l ICA may rely upon same in making the requested advances.
2. Borrower hereby requests to draw the principal amount of ._.............. ........ ................ . - - - -.. and
00 /100 Dollars ($ ) (the "Requested Advance ") less .10% required in the
amount of $_. _ __._..__...__._..._...._.__._._ ( "Retainage "), for the total of and /l 00
Dollars ($ )( "Amount to be Funded ") from TDIICA during the normal business
hours, which when drawn will cause the balance remaining to be drawn on the 1...oan to
—.................................._............ .....__.._... .................. and 00/100 Dollars ( ) an amount which does not
exceed the ramified sutra. There is no minimum dollar amount per draw.
3. On the date hereof, and at the time the Amount to be Funded is to be made, (a) the
representations and warranties made in the Loan Agreement and /or certificates delivered pursuant
thereto are and will be true and correct iia all material respects, (b) no Default or Event of Default
has or will have occurred and is or will be continuing, and (c) Borrower has performed all acts
required in the loan Instruments to have been previously performed by Borrower.
4. All proceeds of all previous Advances have been, and the proceeds of the Amount to be
I.'uncled will be spent only t.'or Approved Costs and only 1br the purposes specified in all
Applications for Advance, and accompanying items, heretofore or herewith to TDIICA.
5. The SUM of (a) the balance o.f the sums to be advanced by TDI[CA under the Loan
Agreement plus, (b) all other fiords of Borrower available therefore and set aside in a manner which
'1'l.)I-ICA has indicated is satisfactory to it, will enable Borrower to complete the construction -of the
Project in substantial accordance with the Plans.
6. All obligations .for labor, materials, and other costs heretofore incurred by or on behalf of
Borrower in connection with the construction of the Project and included (a) in any previous
Advance have been paid, and (b) in the Requested Advance will be promptly paid upon
d.isbursemen.t of the Amount to be Funded under said Requested Advance. Absolute ownership of
all materials, equipment, fixtures and other property heretofore incorporated in the construction of
the Project or otherwise installed therein or on the Real Property and paid .for by Borrower with the
process of a previous Advance or otherwise is vested in Borrower, free and clear of all rights therein
of others except 'ti)11CA or other persons holding rights under any Permitted Encumbrance.
Neither Borrower, nor any agent of Borrower, has been served with any notice, written or oral, that
a lien will be claimed for any amount unpaid for materials delivered, labor performed, or services
provided in connection with the construction of' all or any portion of' the Project, other than those
bonded against. pursuant to the Loan Agreement, a complete description of which, Wally, is set birth
on a schedule annexed hereto; and, to the best of the undersigned's knowledge, no basis exists or the
filing or any other .mechanic's liens with respect to all or any part of the Real Property for the
Project.
'r_Vdkill..oan J) cs \NSY \Kcdcvelopmenl112612 City or lluntsvillellntcrim Construction Loan Agreement
ttedevelopmen4.v4 20120227.doc
Page 34 of 59
BORROWER:
CITY OF HUN`1SV11.,LE, a political subdivision
of the State of Texas
By:
Name: Mac Woodward
Title: Mayor
'i :lldliili..oan Does \NSP \ Redeye! optiter1IU 2612 City of 1 iunlsvillc\lnterint Construction Loan Agreement
Redevelopment__v4 20I20227.iloc
liage 35 of 59
MESS AND 11051NDR fYaSCRIMION of
lot 27 of The Meadow it Horse Creek Subd ivttloa, CIvo tavllle, Texas
Doing a 0,240 of an sue (10,474 Kano foes) tract of land located In the Pleasant Croy League, Abtirect
24, Walker County, 'rotas and being ell of lot 27 of 'Cho Meadow al lima Creak Subdivision, as
recorded In Volonse 4, Page 131 of the Plat R000rds of Walker County, Texts (P.1t.W,C.T.); told 0,240
of en atn of land being more pxttkul telydasetibed Valetas and hoped : 4, follows:
1JEGWNt4INO at i toted 518 -inch Imo rod lathe existing ea surly right of lacy lino of 11 onto Drive (50'
R,O,W,) of record under VV lams 4, raga 131 of old Plat Recordi, befog the southwesterly comet of told
Lot 27, sane being the nOtthwestorly saner of Lot 26 of safd-Rw Mudow it }torso Creole Subdivision;
f11ENCE, North 03'43'12" West, a dis lour a 06710 feet, along the existing eaatesiy right of way line
of Demise Driv►, &hog tae weuulyy line of old Lot 27, pissing at 44.93 tcei a found Sf8•k are ire° rot
sad cooltaaing to tut "X" cal to concrete at Ito aotthwestaly on of sold Lot 27, being thus
sootlswvosioIy corner of Lot 24 druid The hfeadow a1 Nona C7teis Subdlvlslon;
771Kt(CE, North 06°16'18' Slut, ■ dtslanca of 510,00 feet, along the northerly lira of Bald Lot 21,
being the southerly Sao of old Lot 28 to 0 art 518 -l0gs iron rod with "OS" Gip al the northeasterly comer
of geld Lot 27, being the southeasterlycomu of said lot 21;
TLI11NCE, Soul!: 03 °43'32" East, a dktan<e of 87.28 feat, along tits euially lino of said Lot 27 to the
southeasterly owner ofsaId Lot 27, being tho northeasterly comer *fold Lot 26;
TUTENCE, South 86416'28" Wert, a durance of 110.00 &et, gong the southerly Hoe of said Lot 27,
being the northerly lion of said Lot 2610 the Polak of lkglnctay aad containing 0.240 of en left (10,474
square tsi) of land.
iforieoula) Control is broad oat holding City of Huntsville Momentous No. 7574 (grid coordinate of
Nosh " 10,262,488.31 eh Past- 3,002.009.473) end 7175 (grid coordinate of Noah - 10,267,526,24 &
auto 3,801,780,255), Bearings doseribed are Mated to I11. Togo Coord{natta System of 1901, Central
Zone, Oh tenses shown aro US SsuYey Pent ii "Pfeld,}(ortxoatd" units and may be outvoted to "Oklp"
milts . by multiplying by a combined scale factor of 0.99986. Basting are also related to the sutdivtston
Plat ot'ibs Meadow it Horse Creak tubdtvldon of record under Volum. 4, Page 131 of gird Plot
ieewlda.
Piet ofiven data soronpanks this desutptioo.
Prepared by,
Geollotullons, LLC
15014 B made Road.
kprlmg,Towt•
Tel, 285.6814766
Job No, 12.20.003
EXHI Heft "A"
N
PAGE_ /
'1' :1IdId\I inn Does \NSP1 €tedcvc)oim ent1126I2 City of Iiuntsvillel €ntcrii i (:'i ii0lritctiem Loan Agrcetnert
Redevelopment
Page 36 or 59
• ',two 400hrm raN slave our
f4te l.OPOLE @ 'Mt
TrAt[A ;Odd —P— PD.tR tiNCS ' 16
0 MA1fR V1 VE "'I/'^- a' WOO f(NLE SCALE: 1' r 30'
+ AGE N11144,41 OA.W.C.7. troZ1YC r harYe4
*SAWN $.044.RV 4V51iRi 0 P.k•V•C.T. CNatCW. Puou REGOAOS
OSSIar S1OR4 1WMO4A •M.RR £Qt, T, 1Yte&S
TC1(PyOIK P(0!$7K P•,Q7f,C.%. PIAi RCCCStDY Va]REk
cou>rlr, rflc�s
po, LOT 218
N0810'2
'e 2o.Ob'
d/d
toT
IlY1'31
tin27
THU MEADOW AT
V01.4, i,o.7)t
P.RW�0:7
1.0f24
FANIVEl008 CERFFK.AIE
1I, .by t SO! 14' Yne 01y .1 I#JAI.'.Fi. Inel IN. m nay ye
t a4M pw 4iwpy 1. 2012
Mal Vde 44.40 epstetly tits II %ha feel. rtont at Wt
'Goo 7 tssreyY cod INA Ude pfefeodanN t.n5tf
uDNOntbtr toolp foO to WI cofriot Totes 6otloly of
Prertos:mei &W ; Cit Slon t044 4nd St.t41°4114o kr
talt4py 1B• Conn :y, a Ssnty.
P V. Chrvt
Yn 3937
NOiE$ 14My aa4
1, 144 CpnadtMrel.
Pe•feeoned
etlytal th4
0411,
c
21.
20.303 1
ber4tt of a Tlut
a. Herhonlol domed t4 toted as .ydry ON/ of 7oraf•l+t Na+uatnft
Na 7374 (944 teutNle of NpIh . 10,287.03 -31 4 toot.
310740O173) ee4 7375 (ods «utinote of North . 10,287.574.24
R Cula 3.501,760.1353. Boodnyt 64144.t4 ate teeth/ la 1he Tua
Coordi.aN $ n..* of 1443. CM401 Zone. 0tabn.M MO..l pc 03
St Noy feel ke 'fwd I4leontot- 4.41. end Most 11 tonwtN l4
'GR4' .Nit bo mWttP11409 by a emt0.ed ecal4 We, a7 0.8145a.
at.4i,, ber'e 41.4 meleha• 14 1441403n FIJI of 111., 1ft44or 01
tfc.tl f .o Of 'Itptl 4541. Ve1y4e4 4. Pope 131 of 04 KM Record.
of *dtar CWMy, Tiatr.
+74ro fc91#4a Wont Mwn haraot trt bold on enolhtrwolcN
e- bP:t44 Ind d4 Olt .....ttply rtyrn.1 0. poedkn rJ anrocy of
'et ■e4nd;ry 401U111(N7Ali4fi.
4. A dest.4p1:an el test dolt octo41p1Rftt V•4 peel,
[4c +dSro,h �ytl D:ItanC�eili
N3F14 0" 0t: 1f41' —
,N2b1oO86 -�74Y._•
LOT 27 OF THE
MF..ADAW AT HORSE CREEK.
SUBDIVISION OF THE PLEASANT
GRAY LEAGUE, A -24
IN WALKER COUNTY, TEXAS
Solut;ions,LLC]
X113614 04d 1h Rood �....
Phonctaf-ibl 0734 �2rt72l /s$1_ana
Am*.
s1- 244 -403
4..
tr NIA_ 1434
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q.Z4000311401%; N A
T;1Irtkllf.oan 1.)ocs \NSP\Rcdevelopmcnt112612 City of 1luntsvillc11nterinr Construction Load Agreement
Redevelop m en(.,.,.v 4,. 20120227.doc
Page 37of59
:14
gqi
to 14
414
p4
EXHIBIT I.3 -1
DRAW SCHEDULE FOR RECONSTRUCTION AND NEW CONSTRUCTION
LTJ AW S(:JJ.32UI;I'�
Date: >
LENDER: TEXAS DEPARTMENT OF IIOUSING AND COMMUNI'T'Y AFFAIRS
( "i 1)I :ICA "), a public and official ieial agency of the State of" Texas.
BORROWER: CITY OF HUNTSVILLE, a political subdivision of the State of Texas
PROJECT: Acquisition and reconstruction or new construction of one (1.) single family dwelling
on property located in Huntsville, Walker County, Texas more specifically described as
BONG 0.240 of an acre of land, more or less, situated in the P. GRAY LEAGUE,
A -24, Walker County, Texas and being all of LOT 'I'W1:. N`l'Y- SEVEN (27) of
'i'I-IE MEADOW AT HORS13, CR.REK, according to the map or plat thereof
recorded in Volume 4, Page 131 of the Plat Records, Walker County, Texas, said
0,240 being more particularly described by metes and bounds on Exhibit "A'
attached hereto and made a part hereof.
88 Bernice Drive, Huntsville, Walker County, "Texas 77320
LOAN NUMBER: 770999912612
Borrower hereby requests the below itemized funds from Lender to I3orrower to pay for the listed
items permissible per draw, all of which are part of the reconstruction or new construction project at
the above referenced Property. Each draw request is hereby limited to pay for only the items listed
hereunder. Borrower shall use
'f:Udlct \Loan l.)acs\NSl' \Redevclopment\I2612 City o1linnfsvitle\lntcrim C onslrnetion loan Agreement
ltcdevelopment__v4... 20 E 20227.doc
Page 38 of'59
1)raw
number
..si
Frst(1) 1)raw
Second(2)Draw
Third(3) Draw
Fourth(l)Draw
fth(5) Draw
Final Draw
Items eligible for payment per specific draw
Acquisition of property (closing' costs paid at closing;
predevelopment cost reimbursement; initial builder soft costs
Site preparation; underground utilities to.property; slab;
Framing; rough carpentry; exterior walls sheathed; roof; rough
plumbing; electrical; 14VAC
—
Doors; windows; drywall installed; taped; float and finish;
exterior siding; stone; and brick
Paint interior and exterior; interior trini, cabinets; countertops;
plumbing; electrical; and FIVAC trim; 1-1.VAC equipment
installed; house cleanins; appliances; landscapin&
Driveway; parking; project close-out; retainage; release
retainage after successful inspection and occupancy permits
issued
1A1(11(11Loao Does\NSINtedevelopment112612 ty of Ilunisville\Interi in Construction 1.oan Agreememt
Redevelopment.. y4.....20120227.doe
Page 39 of 59
Dollar
amount
requested (to
be filled in by
Borrower)
i
Las 27 dill* M'eedowA*11tonaCra1 ubdivlsion,lh kvlligTexas
Being a 4.249 of se acre (10,474 aquaro feet) tract of lend roared k tbo I'ko a t Cray League, Abl lnat
24, Walker County. Toxas and being *11 of Lot 27 of'ihe Meadow at None Creak Subdivision, u
recorded in Volume 4, Page 131 oftho Plat kacards of Walker County, Toxes (P.R.W.C.TJ; said 0.240
arm acre of land Ming snare particularly described by galas and bounds so (Shaw
DED 1NNINix al a Could A-inch hurt toil In Ma existing eastuly tight of wax lino of Damica Drive (39'
R.O,W.) of rocorJ undo( Valuma 4, Pap 131 *fetid Plat Rotordb !wing the southwesterly corner of.said
Lot 27, same being the nonhwaslaly comer of Lot 26 ofsaid Ito Meadow at Horse Greek Subdivision;
THENCE, North 03043'33" West,* distance oft7,28 Ceef, along Iha exIsling vutuiy right of way Zino
of Bain /se Mire, being the westerly line of aid Cot 27, posing at 40.93 feet a found 5!8.lrsch iron rod
sad conlinutng to a set "X" cut 14 cassorato at the northwateely coma; of sold Lot 27, bolus the
southwesterly oomero f Lot 21of said Tbo Meadow at lions Creak Subdivision;
'CSIP,NCE, North 8646'2$'. Enel, • dimmer, of 130.00 fat, along the northerly lino at sold Lot 27,
being 11u southerly lino of w1d to 211 to a at 5f8dads bun rod with "CS" cop al thonoRlea ietty corder
of raid Cot 27, being the southeasterly comet of add Lot 28;
INIENCE, South 03• 13'32" Ulf, a. albums of 17.28 feel, along Iita sanely Una of solo L0127 w 1110
aoutheosteely corner of said Lot 27, betas the northeasterly comet ofaald lot 26;
THENCE, soul! 86'16'2&' Welt, a distance of 119.0010 ;1, along ilia southerly lino of told Lot 27,
sbeing quare tlfkw cl) ssonof herllandy . I1ne of said 1.14 26 to the Pella of VeVeetog and emisiuln3 0.240 of an acre (10,474
florlenatal Control is bated on holding City of ltuulsvilla Monuments No. 7174 (grit 000rdbnata of
North - 10,262,415.31 & Past- 3,1102,009,474 sal "MS (grid 000rdlnato of North - 19,262,526.24 &
Past• 3,401,780.73S). Bearings described ore rtlated le She Texas Coordlnata Syelem of 1913, Central
Pone. i5istencte shown aro V3 Stuvay Feet in "Plotd}larirou o1' units and may be eunveritd to "CRJtr
ours, by multiplying by a combined role Dolor of 0.999111, Dearing are also stated to the subdivision
plat of The tdeadow at Norco Creek subdivision o£ record under Volwne 4, Page 131 of aid Plot
Records.
Pitt of oven data accompanies 11111 dcsealpi14
Prep end bp
Ceogolvllarta, LLC
21114 Budd' 1tooJ.
Hurl mg, Texas
Ta1.2$I- 681.9766
Job tin. l2'249.003
EXUi.j3T-l' "Atr'1
'I':11dkdlLoan 1 )ocs \NSI'lltedevclopinent112612 City of I luntsvillc'lI ;terim Construction Lotto Agr'ecmettl.
Itcdevc1o13nrcnt v4._ 20120227.cdoc
Page 40 of 59
WOO 110404006Yi04
fltef ..
rat 7'0401 POLE
of WMPR V(lC4
Qi k.1F(R volt
- fwt ,MX.an
*IMAM $4411000Y IW1e0U
•PS4r $TORO WAWA(
T(l(Fet04 PIOCSr,t
1.01('24
furl OW
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PO41R &1I (S
4' 4,00o
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O RR.w.C.r. O171ctLL COtMIY POOUC R(COROS
v4tKtR , 1 Z4*
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LOT 30
4101x30
7/F•N
Y�YIt
Y0Fr6 Cell1 CATS
o h.eeby codify to fit Cli d 44 Ilonkt4e 4144 Vt. won
mode on Iht prcvnd D ea4pl.04 a. rebrvery 1, x2011
MO Oh 6.VSp to oo.07 Iq.te.n4o the 04a14 44411 it lee
4004 of
eri PP4 Met VA. ewtes ti y )i IcrP N4Oi Pr ...4)w* 5undvr ono S$w ooltoii or 0
Celsomy 1q, Cond(ta+ R Sonny.
R.P,I•S. Vo. Sop
• }6.."'30 r,_4 60
sip
®r. tone
r o
SCAIE: 1' - 70'
N9B16' -'E 7 0.00'
-- 0. 40 Acres
(10,474 sq. ft.)
t7NMPf0vF0 LOT
wry
1 2H(fMBAI owAT
HORBB c3UWX
I
VOL 70,737
P.RtY.C.T. t
semi 0.28".$9 - 120,00'
r-
i
RO• OKto IlodNe H N 444.4.q r 01444 4 4I +6'11'2 ' Z3,rr' 31.044• X40724'(' 0.+1' C3 ,,1271 e' 50.00' 66.�ir' pII6Y�1S_•.
%1C:O M covey Pet pt. WOW d rtll p( IN. 40444 of • RRe
Comapmrnt,
1. 174'apn1d Cotfd 1. 4ei.I M ed49- tlly et lionl »tis 44.444444
Xo- ,774 4444 tp rrnolr of Korth • (0.244,461.71 44 Coll.
3.607.007 -123) t'4 7676 (pfd cwr(6w4 of Npih .-10.264570.2+
k tool. 7,501,7601611 tton44, 44.04.4 eft Now to Os te'u
tocro+wl4 73,lwn 411246 CwVM root. Oilanl$, 4•44 444 05
Sorry rptl N K.fp l..'It44tw' or04 444 rear 4e 44.44401 to
.hits ►r m.fl4444p 4y • e4•b4ed .cote toper c( 04614A
t.oegis bs.r. Rno nItkhoo 161 644d'.41:4 Not of 744 114644. of
Roe :. Goon of record .MU Vdwn. 4, Pays 134 of Um Pitt Retard.
of 1414., CO.M7, 1444 .
3 344'4'4 144 0404 I4PO4, .hw,n 4•-0n 044 60344 , 40040440410.1
N4 .4..444 44 441 0.5y .e0ret.'4 (4p po.ilPnd aeco .coot, of
Y UYER147104i.
+4. 44444010n 41 sw4 date ouyop4Mq N0 ego.
LOT 27 OF THE
MEADOW AT HORSE CREEK
SUE3DIVISION OF THE PLEASANT
GRAY LEAGUE, A -24
IN WALKER COUNTY, TCKAS
Solutions,LLC
2�5:�5814 4.d4. Rood
Mtet•.161 661 4' rc.ac 373_0
i -9766 r40m%- 66.4111
>W lr
ma, SVC Or 01/12 4.
— 444 __V.....—
e.. R/A l'. ff
Moe >..a,,_. ---- 0,444.,
12 - 21$••006 122`1311Oµ0 y/ F...,.,..
'1':lidldll.oait 1:)ocx1NSPUtedevelopment112(12 City of 1lnntsvillellntcrim Construction loan Agreement
RcdevclopI1 cnt_v4_20120227.tloe
Pag ■1t or 59
EXHIBIT C
APPLICATION AND CI!',.R'I'IFI(.',VfE FOR PAYMENT
Draw No.
Borrower: CITY OF 1-1UNTSVI.LLE, a political subdivision o'f'the State of Texas
Address: 1212 Avenue Ivt, .H.untsville, Walker County, Texas 77340
Project: Acquisition and construction of one (1) single family dwellings in the City of
Huntsville, Walker County, Texas, BEING 0.240 of an acre of land, more or less,
situated in the P. GRAY LEAGUE, A -24, Walker County, Texas and being all of
LOT TWENTY-SEVEN N (27) of '1'111? MEADOW AT HORSE CREEK,
according to the map or plat thereof recorded in Volume 4, Page 131 of the Plat
Records, Walker County, Texas, said 0.240 being more particularly described. by
metes and bounds on Exhibit "A" attached hereto and made a part hereof, with a.
property address of:
88 Bernice Drive, Huntsville, Wacker County, 'Texas 77320.
BORROWER'S APPLICA'T'ION FOR PAYMENT
A.. Original Construction Loan Amount
(Original Note amount minus
Acquisition costs) $93,172.20
13. Total Amount Drawn to Date $
C. Total Retainage Held to Date $
D. Current Balance Funded (A -B) $
I,. Amount of Current Request $_ __.,._....._.._._..
F. l..css Required Retainage $
G. Amount to be Funded This Draw (1 -F)
1.1. Remaining .Balance [A- (B +()] $
The undersigned 1.3orrower certifies that to the best of the Borrower's knowledge, information
and belief, the work covered in this application for payment has been, or will be, completed in
accordance with the Loan Approval, Security .Documents and the Loan Agreement; that all
amounts to have been, or will be, paid by the Borrower for work for which previous certificates
for payment were issued and payments received from the Owner; that current payments received
horn the Department will be utilized in accordance with the Loan Approval and Loan
Agreement, Security Documents and the Construction 1.,oati Agreement; and that the current
draw is now due.
I':\Idid11.oan r)ocs1NSP1 ltcdevelopmcnl112(12 City of 1Iunlsvillellnterim Construction loan Agreement
Rcdevclopmetit .v4l_ 20120227.doe
Page '12 of 59
BORIROWER:
CITY OF HUNTSVILI.,E, a political subdivision
of the State of Texas
By:
Name: Mac Woodward
Title: May__oi'._._ ..................
Date:
ACICNOWI..EDGE.MENT OF RECEIPT
TEXAS DEPARTMENT OF HOUSING
AND COMMUNITY AFFAIRS, a public and
official agency of the State of Texas
By:
Name:
.its:
Date:
' A1(11d1Lo €ut 1 >ocs1NSP\Rcdevclopntentll2612 City of 1 k ntsvillc\1nterint Construction Loan Agreement
Redeve lopmet t i..._v4.2(1120227. d oc
Page 43 of 59
ROUNDS DUCRIPTION of
1,ot27ofTk fdaES M adowAatI ma. Crook Subdivision, ito tool fle,Te[eo
tieing o 0.240 of an wit (10,474 Nuns Rol) trot of Sand fe,4rtd in the Pleasant Gray Lugo, Abstract
24, Wilkes County, T4xa1 and betns all of 144 27 of The Meadow a 'foal Crack Sob:evilion, or
recorded In Volume 4, Page 131 of the Plot Roc rdo of Walter County, Teat (P,R.W,C,T,); sold 0.240
of in sere of land be Ins mere pmnkvhrly dose tibed by mob* and bouodt is follows:
11&CINN11,10 *1 a 'bond 318 -lath iron rod In eta existing ensterty sight otwoy tine of Danko 1)rivo (50'
Lot 7 )suit bo of g silo odhwestaiy comet of Lot 6of otdd Tho Mtadaw et oat tr:o Gaol Subdtvis of sad
TI1E110E, North 03 °43'31" West, a distance of 87,73 feet, along Iho existing arsterly ri8ht of way IBne,
of Munite Drive, bah'sihe wastuly lino af'14 La 27, passing of 44.93 Rea it found Sli•inch Iron sod
sad cooilnute8 ion sec "7C' cut t1 conWxco at the northwaterty aonmr of sold Lot 27, being the
southwesterly yowler of Lot 28 of uld The hfcadow Al ROM Croak Subdivision;
'l'HErlcE, North evisw ]Fear, ns'teim,* of 120.00 foot, odor% lho rwsthr 13' 11,ie of asld Lot 27,
t.oing Ile southerly 1101 of said Lot 38 15- n ll Iron rod with "GS" sop al the notthrosterly corner
of sold Lot 27, befog the sattkcastrriy comer ofuld tort 21; .
TOWN CI;, SOW b03 °43'32" Root, Rdll thou 0f81. 28 fool, olongtheoule /1y line of told Lai 37 toth4
couthea duly comers f sold Lot 27, being the northeastoily tomer of said Lot 26;
Tf7ENCE, South 8696'29" Wdt, n dittonce of 120,00 feet, along the southerly Ilne of said L*I 27,
being ilia nonherly line of said Lot 26 lo the Pabst of Btsglealug and eontsinhtg 0.240 of on sero (10,474
ignore feat) of Hand.
1(ori outal Coitrol k basal on bolding City of Floulsville Moitlmoots No, 7574 (grid eoordhnaro of
North w 10,262083.71 & Rest 3,501,009,473) sod 7573 (grid coordln4te of North 4 10,262,S16.24 &
[fasl� 3,801,780,219. 9out2g1 &tallied aro relued to the Tara Cooedinuo 5yaiem of 1983, Central
2ono. Glsioncto shown are GS Survey peat In "P7eld.7iestloetsl" unlit and may be converted la "ORID"
units, by n14114 14 by a eotoMned stole lttclar of 0.99988. Muting are olio retorted to Ow sold 'Mon
pplet of The Meadow at norm Creek sobdlvl,iai of record undo Volume 4, Page 130 of Bald Plat
Recor,lo.
Plat (gown ds10 suompenks 1hts desorlpitoo.
Pup good bye
GaoSelutlons, LLC
25814 Dudde Road.
8pring, i'4aa,
Tel, 281481.9766
Job Ne.11.249.002
EXHX3z'"Aa'
PAGE .
"f:\Idld \Loan Docs \NNNS.P\Red eve lop nlent \12612 City of I Itlntsvillc \Inleriin (instruction I.oan Agreement
Redcvcloptnent_. _v4... 2012O221.doe
Page 41 of 59
1.ot27Ar'fneMHad AatNomCCrkSubd[Aden H hUNll ;Taxes
Doing a 0.240 of as au (10,474 are feet) kid orlsnd la;atW la 12e Pleasant Gray League, Abstrta
24, (corded bi v Dime Texas 8a 1+ 1 of all t or of va�BCarCou ty, srexai (P,lt W,,C.T.k aId o 240
clan acre of land being most Psrtkuharly dewribed by meta And bounds N follows;
IIEOJNNUNt4 AI* (b .4 3/1.1ncb trod rod In 164 existing snster17 right of way Ens of Danko Drive (30'
1.0.ltt.) of record under Volume 4, Page 131 of said Plat Records, being Um southwesterly coolo of spit/
Lot 27, same bcteg the northwesterly comer oi'I.ot 2b ofesld The Meadow at Ilorse Crook Subdivision;
THENCE, North 03 943'32" Weet, a dielenss of 4/.11 tier, a1gAg the exhsliag easterly right of way lino
or Boothe Drive, bang the v.esleriy line of seed Lot 27, pasting st 44.93 hat R found S /9•Jnch Iron 1o4
And continuing t0 r tat "y(" cat 10 eraser* at the aorthwaetaly cone£ of said Lot 27, being tits
southwesterly cornet of Lot 21 ols.Jd The Mudaw at Ilona Creek Subdivision;
THENCE, North 86161,4+ Zest, a dfrraac+, 01 120,00 fat, aodg the northerly line of said Lot 27,
being the toothed, Hos dealt' Cot 28 roe set 3/11-inch iron rod whit "GS" cap at the nodbeaa Icily corder
of saki Lot 27, being Ills soudttwteoy oorneroful4 Lot 21; '
TIISNCE, South 03'43'32' Ruiz, . dptante of 17.28 fat, eons tits easterly lino of said Lot 27 to tits
towhee , terlycen tor ofsaid Lot 27, being the nortttes,tesryto erolseldLot26;
Ts1ENCE, South 86 1'16'39" Wad, a dlNauce o1220.00 ftef. along tba sowhtrly Iins of Bald Lot 37,
Wing the northerly line of sold Lot 29 lo 8a Point ofhlsgInalug sod oontsining 0.240 of an sere 00,474
square fee i) of taro}.
Horizontal Control b based at holding City of Huntsville Monuments No. 7574 (grid coord1n rt of
North 10,262,491,31 & hits. )302,009,473) and 7555 (04 eoordlaate of North e, 10,762,526.24 &
Pas. 3,101,710.253). Scollop described ore related to she Tome Coordinate System of 1913, Centro)
Zoos. Distances shown are US Surrey For la'Tiaid Mamma" units sod may be convened to "GRID"
units by multlplylog by a colubh cd sole sltctor of 0.9999$. Bearing ore also rohkd to the subdivision
plot of The Meadow as Horse Ceek subdivision of record under Volums 4, Psge 132 of sold Plat
Record..
Pitt olsson date aorompaoks Ibis desowlptioo,
Prepared bye
Geo&Indent, t,1.0
23414 Budd +, NgAJ.
Sprlog,Tons
U1,281441.9766
Job NO. 12449.003
1 XHY 1T "Ar'
PAGE) oij
I':11dltlll.oau I)ocs \t`SP \RCdevclopment112612 City of flu itsvillc\Interint Construction Loan Agreement
Rcdevelopment._v4...20120227.d ec
Pit"e 55 of 59
. E_EGENp
—fQIJ W H NuTii oott
ort N07t0)
re' roods PO(C
W FA1FR y004 ^ °R--
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`¢- f1Ri M1Ntay1 D.R.W.C.T.
Ashowl Soi. r --j f olds r 0 P.R.W.C.7.
*SIM S70,9u 1aJ.V1Ol6
El ID LPl•mar nom,. o•R•4f.0.Y,
(ma
TR[C
(OAER WAS
4' WOO &UY.O
0214 RCC0R02 Kµ((R
CWH1Y, (Vat
Of TICFI P00t( R(COROS
7fAUYR C01R0Y. TEXAS
PLAT RC0120S votAtft
WI NN. "WAS
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R�y
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ate' Lam
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00,4,4 eq i1.}
ONIMPROVE0 LOT
1401' 27
Tfit MNJIt)(7W AT
HO)tSI CREEK
VOi. 4• Tf :.1St
A. e6r.CT.
tors ''oirnis = sirti ix m = anCrrri
581714'22•.1 120,00'Yti
erns
efil F70FrlS cERTw3CATE
s M+Wy 4.r10y to trio City of ftrntm4ro (Rot Wt wooly on Ito 0,00114 old 0.1.1101140 en F■Lroy 1, 9012
IOC Ott dr,YO9 a rptL1tl (h. f000ts (Ond N. I( of moray col (hO( (Pro P•f.ratanot 110.10 s eoLrloniW> uroomo
fo the dxerfnt 7,ses See%17 of
/rehsinalo1 5Were., Montkr40 Tnd S1, dp•0ytku:d foe o
C,l.3o y (0 CMiile7n R SoMy.
R.o.I.S. Ns, 5937
1• Ns lwrry •ea 90Notn d
Oanmllrc 10.
iar24
1
1
CUM Oi8'NIiYTO T 50.0' ,,,21,0•3` . -Ur` A (odu. A, 9 e1T.0v 9Y
n9
ofol
3E,2t_60W`27N0C ^ 7.0_ 7p741 -" t•
oily 1 Sao k000r4 of o rut
iketOO(eo Cvtld H bated On Peen? t71y of sI rr.ta.fAR 3,0r, r.,a/r
Re.
),O74 (444 so0d'reto of Nam+. 10,247.444,31 ri Cofto
1802.001,473) oral 7415 (orfo cco inelo of North. oo 10,207.794.24
0 (0,1. 7.401,780.255). Ot0r84t 4,11,2.4 bet rYoltd to Int Ns.
C9oe01nalt S1oTrro 4f 1543, CRAW,' root. 4/..10141. Maam Wt US
SW..y f••1 F Yore l431h>,11o1•.xOl and saay 01 r,nvened I
•ut•' volt by R•hhO by 0 coma/ONO S(, toolor of 0.44088,
t.r(lts An•. 41 so motth(1 thy stroll/14% Vol of 11.0 II o4Or e(
If.rsli Cr... 01 'arced under V01.000 4. Nos 131 at t1,. 9fe( Rrardf
of sr'dkfr CWnly. (1.17.
+0.w•
04(101 told. shorn hsv401 011 pond moylen4(ce1 bti •r .,4 do oeaa•ocollo repdran
peltand et.rmcy of
1hr 0h0n0.0+y NWM1i itA1:Gt
4. A (1414,1,01 hit •t art., est. etedlt0,11.1 (1,j pRL
LOT 27 OF THE
MEADOW AT HORSE CREEK
SUBDIVISION OF THE PLEASANT
GRAY. LEAGUE, A -24
IN WALKER COUNTY, TEXAS_
SoIutjo11s,LLC1
23014 6 old. RcO4 �..�-
0804,,21} k j 4. T., , 77380
8 47(4 Tea;7Rl -SST -97)4
1':IldkiU..oan I)ocsINSPIRcdcvclopinent\i2612 City of I lutrisvillelltttl rim Construction loan Agreement
Redevclopmen(.,_vd 2ft120227.doc
Page 56 of 59
EXIllBIT I+
RESOLUTION C.KRT1 FICATE
1, the undersigned, Officer of City of Huntsville, a political subdivision of the State of Texas (the
"City "), hereby certify that I have custody of the Resolution No. 2012 -21 of City of Huntsville,
and any authorized to execute and deliver this certificate on behalf of the City, hold the office
designated by the undersigned naive below, and further certify to the following:
1. Attached hereto as Addendum 1 is a full, true and correct copy of
the Resolution duly adopted by the City Council of the and approved by the
mayor of the City, passed at a meeting of said City, duly and legally called in
conformity with the Resolution and in accordance with applicable laws held on
the 7th day of May, 2012, a quorum thereof being present and. voting unanimously
for the adoption of said Resolution and that said Resolution No. 2012 -21 amends
Resolution No. 2009 -04 passed and approved on April 7, 2009 also attached
hereto and Resolution No. 2012-21 is in full force and effect as of the date of this
certification.
2. 'fhe Resolution No. 2012 -21 attached hereto as Addendum 1 has
not been amended, modified or rescinded and is in f ill force and effect on the date
hereof.
3. There is no .provision of the corporate records, charter, bylaws, or
articles of incorporation of the City limiting the above - described Resolution, and
said Resolution is in conformity with the provisions of the City Council.
4. The following persons have been appointed by the City Council to
the position set forth opposite each person's respective name and are qualified to
act in such capacities:
Mayor
City Manager
Interim City Manager
Mac Woodward
i :11dld1l.oau 1.)ocs111SP1Kcdcvelopmentll2612 City a iiuulsvillcllntcrinr Construction Agreement
Itedcvclopuient. _v4.. 20120227.doc
Page 57 of 59
EXECUTED this clay of 20 t 2.
TIIE STATE OF TEXAS
COUNTY OF
C "1i'Y OF IIUN'1',SVII_,I_,E, a political subdivision
of the State of Texas
By:
Nainc:
l`itle;:
This instrument was acknowledged before me on this _..._...... day of 2012,
by , ....,........, of City ol'Huntsville, i1 political subdivision of the State;
of Texas, acting on behalf of said political subdivision and in the capacity stated herein.
(Seal)
Notary Public, State of Texas
1'aldldll..aaa 17ocs1NSP\Redove1opnicnt112612 City o1' 1luntsvitlelfntcrim Construction Loan Agreciticnt
lecdevclopment.. v4..2012O227.doc
['age 58 of 59
ADDENDUM I.
RESOLU'T'IONS
"I':Udld\I.oan J:)ocsINSPULedovclopmen11I2612 City of E Iturtsvilicllnterir ; r Construction loan Agreement
Redevelopment v4 20120227.doc
Paige 59 of 59
RESOLUTION NO. 201.2-21
A RESOLU'T'ION OF. THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,
REPLACING THE CITY'S EXECUTIVE OFFICER AND AUTHORIZED REPRESENTATIVE IN
ALL MATTERS PERTAINING TO THE CITY'S PARTICIPATION IN THE NEIGHBORHOOD
STABILIZATION GRANT PROGRAM.
WHEREAS blight is a problem for Huntsville as is affordable housing for low -
income residents. This award will allow for the removal of blighted structures and
provide new homes For low - income residents; and
WHEREAS • it was necessary and in the best interest of the City to apply for funding
under the 2009 Neighborhood Stabilization Grant Program.
NOW, THEREFORE, be it resolved by the City Council of the City of Huntsville,
Texas, that;
SECTION 1: The City Council amends Resolution 2009 -04 Section 5 to replace.City
Manager Bill I3aine as the Chief Executive Officer and Authorized Representative and
granting this authority to the Mayor, City Manager and /or Interim City Manager.
PASSED AND APPROVED this 7th day of May 2012.
TIME CITY OF HUNTSVILLE
w
Mac Woodw. 'd, Mayo
ATTEST:
oodward, City Sect- try
APPItSVIM 'STO FORM:
(4111/
Ori ;V* cjhueider, City Attorney
RESOLUTION NO.2009 -04
•A RESOLUTION OF THE CITY C OUNCIL OF THE " CITY OF HUNTSVILLE, TEXAS,
AUTHORIZING THE SUBMISSION OF A: NEIGHBORHOOD STABILIZATION PROGRAM
(NSF) -GRANT APPLICATION TO THE TEXAS DEPARTMENT OF .COMMUNITY AND
HOUSING AFFAIRS (MICA) FOR THE - HUNTSVILLE NEIGHBORHOOD
STABILIZATION PROJECT;.AND AUTHORIZING THE CITY MANAGER TO ACT AS THE
.CITY'S EXECUTIVE •OFFIGER AND AUTHORIZED REPRESENTATIVE IN ALL
MATTERS PERTAINING TO THE CITY'S :PARTICIPATION IN THE NEIGHBORHOOD
STABILIZATION-GRANT PROGRAM.
WHEREAS Blight is a problem for Huntsville as is affordable housing for low - .income residents. This
award will allow for the removal of blighted structures and provide new homes for low-
income•residents; and -
WHEREAS It is necessary and in the best interest of the City to apply for funding under the 2009
Neighborhood Stabilization Grant.Erograin.
NOW, THEREFORE, bait resolved .by the City Council of•tlie City of :Huntsville, Texas, that:
Section 1: An application is hereby authorized to be filed on behalf of the- City and be placed in
competition for funding under the.Neighbovhood Stabilization Grant Program,
Section 2: The application will be for $1,000,000 of grant fiends to implement the •Neighborhood
Stabilization Proj ect.
Section 3: It is understood that the NSP :is a-reimbursement program.
Section 4: The Mayor and City Council °strongly•support this application to address:the blight -removal
and low - income housing production for the city and residents of Huntsville.
Section 5: The City Council directs.and.designates the City 'Manager, Bill X3aine, as the City's Chief
Executive Officer and Authorized Representative to act in all matters in connection with this application
and the City's participation in the Neigl ;borliood Stabilization Grant.Progxam.
PASSED AND A-PPROVED•this 7tIrday of April, 20.09. -
• ATTEST:
fit hanie i , Gity Secretary
'_f1Ni0 Jsr)iiiti -.
•
APPROVED AS TO FORM:
SA -elder, Interim City Attorney
L:I•IONTSVILLE, TEXAS
•J. Turner, Mayor
EXiJIBl'1' 1)
AFFIDAVIT 01? COMPLETION
For reconstruction, new construction, and Rehabilitation
Property Code § 53.106
'I.'[IE S'['A'.['E OF TEXAS
COUNTY OF WALKER
§
Owner: CITY OF HUNTSVILLE, a political subdivision of the State of Texas
Owner's Address: 1212 Avenue M, Huntsville, Walker County, 'Texas 77340
Contractor: CITY OF 'HUNTSVILLE, a political subdivision of the State of Texas
Contractor's Address: 1212 Avenue M, Huntsville, Walker County, Texas 77340
1.cndcr: TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS,
a public and official agency of the State of Texas
Lender's Address: 221 E. 11th Street, P.O. Box i.3941, Austin, Texas 78711 -3941
Loan: Evidenced by a Promissory Note payable to Lender dated 2012,
in the original principal sum of ;1:1.08,712.20.
The Loan is secured by the Interim Construction Deed of Trust recorded in (he Real Property
Records of Walker County, "Texas.
Legal Description of Lot(s): BEING 0.240 of an acre of land, more or less, situated in the 1'.
GRAY LEA.GU1 , A -24, Walker County, Texas and being all of LO`t" TWENTY -S1 V1 N (27) of
THE MEADOW AT HORSE CREEK, according to the map or plat thereof recorded in Volume
4, Page 131 of the Plat Records, Walker County, Texas, said 0.240 being more particularly
described by metes and bounds on Exhibit "A" attached hereto and made a part hereof; which has
the street address of:
88 Bernice Drive, Huntsville, Walker County, Texas 77320
Improvements: Acquisition and Construction of a single - family residence and related
improvements on the l..,ot(s) described above.
The persons or entities signing this affidavit have been duly sworn. Under oath, they swear
the following information is true:
1. Description of Transaction. Owner borrowed money from Lender to construct the
Improvements. Owner and Lender have executed a Construction Loan Agreement in
T:Ildld11.onn I :)ocsINSP\I2cilevclopment112612 City oflluntsvillc \Interim (::onstruction !man Agreement
1Zerlevclopmcnt_v4 2O120227.dnc
Page 16 o159
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1 ha40y may 10 744 City 01 Irxnlas44 Val this aunty .Ss
'nndt on 110 crowd and ean941e1 011 7eb■very 1, 3017
1no1 1f.le too/'no son*elly fovet nta 04 fools Found al 04
Coot of caw,/ ad 1001 4014 p70fH11M4i toe**
L.lonnpoy eonlaonf D Ue awenl 14741 4404014 of
Preille4400 $46•4yrwao S I.ndar4r 000 Syrglkal'vit for o
Cn 1.70x4 15. Coed:113n 9 Sonyy.
ph M. Che.14
0.P,1.0. 11.. 5977
�• rwlx {7>r f<� C.112-.
_
00,474 0.240 q ft.}
UNIMPROVED LOT
LOW
TNIMOAAOWAT
I 71on4.. citEgic
VOI.t x0.131
1 Y.RIV.CT,
saermt'28"IY 120.00' . _ _
r
L T76
WAVE
f No. Odto RedArs RIC IN thad 9�e 64.-0 Oi.lance
01 s5'n137t 23.04' 51,03 Ifrai 9aC 26.41'
C2 5347''-10' 50.07 30.31' N28'I(04 [4 27.94'_
NOTES
0. 11444 icy •ot pa•f.'Io.4 010,011 Iv benefit of o 744tle
7. ltaita•lot Conl/d 44 04444 on nud4y ply 4019,0114%, Yan..y14n1a
Ni- 7374 (y,a 4401deal. ea Nalh • l0.147,444.31 00 9e04
3.502009.4731 and 7578 (444
r< 41014inol4 of Nang +• 10,711.37634 14114 35ounix.m3. w 'Voted
to 004 la,ta
C.0.C. 444 Ststsm 41 1063. CenV44 Zeno. 5410ne4, Yoe., of 0S
70.43 1441 0. 0104. legstenbr «Os end Mar b4 seheenloef fa
'00141 enil. 9y nonf1Asl1:n9 ay o eanb40 4 aaef4 l4ue el 1000905.
5ewwa• 441s aloe ma1UA., lh4 wbd1M43. Nit of 1444 Usesed .0
Bono Cie* o1 read 40dt, V0(441 4, Po-a* 131 al 004 Plot 01147,4[
of
*nog Covely, Ttaat.
3. 4w'r kolo., 14194 .ho.a h4roon ors road an oolhler0(4*01
deodee 004 40 4.00 nsn1laiy '41114401 IN paflland Paearw of
tat 4Wneety 11010.0(111A7Q 7
A 4•106 404. al 0114 doll o.C49panfr1 V 4a 401.1,
LOT 27 oFTHE
MEADOW AT HORSE CREEK
SUBDIVISION OF THE PLEASANT
GRAY LEAGUE, A -24
IN WALKER COUNTY, TEXAS
Solutions, LLCJ
23514 Dodds 0414
iue 27300
401411:371.. al -oru (4:261- 61 -9774
04•14 1 WC • av 7//' 1 07 rr4
GSM VIC ,40 11fA 1'�lp
13- 149 - 3 1$719003116703 IIfA
'f:11d1d11.oan 1)ocs1NSP \Rcdcvelopnlent112612 City of l-luntsvillellnterim Construction loan Agreement
Redevelopment,. 4.,.20120227.doc
Page 45 of 59
connection with the 1_.oan. Lender would not have made the Loan without Owner's
agreement to sign this Affidavit. The signatures on this Afii.davit are genuine and the
persons or entities named have authority to sign this Affidavit.
2. i)ate of Completion Owner and Contractor state that the Improvements were
completed according to the plans and specifications (as and if modified) on
. For purposes of this Affidavit, "completion" means the
actual completion of the work, including any extras or change orders reasonably required or
contemplated under the original plans, other than warranty or repair work.
3. Notice. ANY SUBCONTRACTOR OR OTHER LIEN CLAIMANT MAY NOT
HAVE A 1.,1.1 N ON Ri:?:i'Ai.NI:;1) FUNDS UNLESS '1']:11: CLAIMANT .1<11..,1:'S AN
AFFIDAVIT CLAIMING A LIEN NO LATER THAN '1'1'1[: 30`11"1 1.)AY AFTER '1'111:;
1.)AI'E OF COMPLETION.
4. Contractor's and Owner's Statement as to Debts or Liens (Property Code § 53.085).
Contractor and Owner state that all of the funds that Lender has advanced under the
Construction Loan Agreement before the date of this Affidavit have been used to pay for the
labor and materials which have created the Improvements. Contractor and Owner state that
there are 00 disputes with, or debts owed to, any mechanics, lnaterialman, of subcontractors
for the labor or materials furnished. There are no security interests or liens encumbering the
Lot(s) other than those created in favor of Lender. Contractor and Owner have not received
notice that any lien claimant has filed or intends to file a lien against the Lot(s). The only
exceptions to this paragraph are:
Existing Creditor or Licnholder
Approximate Amount
1.
2.
3.
$
5. Owner's Statement as to Other Notices. Owner states that he or she has received a
written request to receive a copy of an affidavit of completion from the following persons
who have furnished labor or materials l:or the Lot(s), and from no other persons:
.Persons Requesting Copy of'Affidavit of Conmpletion:
6. Funds Disbursed. All of the fiends available under the l..oan to .improve the Lot(s)
have been disbursed by Lender to Contractor except for the retainage which is being
withheld according to the Texas :Property Code. The amount of the retainage is defined in
the Construction I..oan Agreement.
7. Retainage. The retainage will be disbursed according to the following conditions. If
the Lot(s) is located within the jurisdiction or a governmental entity which has authority to
'I': \idldlLoan is)ocs\NSPlItedevelopme"t \12612 City of 1Iuntsvillelhiterim Construction Loam Agreement
Kcdwclopmcnt _,v4_..21)120227.doc
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issue a Certificate of Occupancy, or other similar certificate, then the retainage will he
disbursed thirty -one days after the following events: (i) completion of the improvements
and acceptance by Lender; (1i) a Certificate of Occupancy, or other similar certificate, has
been issued; (iii) this Affidavit has been signed; (iv) this Affidavit has been filed in the Real
Property Records of the county where the Lot(s) is located; and (v) Owner and Contractor
have complied with all of the provisions of the Construction .I..oan Agreement. If the Lot(s)
is not located within the jurisdiction of a governmental entity which has authority to issue a
Certificate of Occupancy, or other similar certificate, then the retainage will be disbursed
thirty -one days after the following events: (i) completion of the Improvements and
acceptance by Lender; (ii) this Affidavit has been signed; (iii) this Affidavit has been filed in
the Real Property Records of the county where the Lot(s) is located; and (iv) Owner and
Contractor have complied with all of the provisions of the Construction Loan Agreement.
Notwithstanding any statement in this paragraph to the contrary, the retainage will not. be
disbursed if any liens have been filed against the Lot(s) in the Real Property .Records of the
county where the f..,ot(s) is located. if Owner elects not to retain funds for thirty days,
(.)wner shall do so at the sole risk of Owner.
8. Release. Owner and Contractor have made a final. inspection of the Lot(s) and
hereby release and forever discharge Lender from any and all claims and actions which the
Owner or Contractor have or may have arising from or based upon (1) the Loan or (2) the
construction of the Improvements now located on the Lot(s) or (3) any express or implied
warranties relating to the Improvements, including any implied warranties of
merchantability, habitability or fitness for a particular purpose.
9. Bankruptcy, is no pending bankruptcy proceeding naming Contractor or
Owner as a party. Neither Contractor nor Owner has made any assignment for the benefit of
creditors. Owner and Contractor acknowledge that bankruptcy of the persons or entities that
sign this Affidavit will not discharge any liability owed to Lender which arises out of false
statements made in this Affidavit.
10. Liability for _False Statements. ()wner and Contractor will be .liable to Lender and
other persons relying on this Affidavit for (i) payment of any debts or liens not disclosed in
this Afticlavit, and (ii) attorney's fees and expenses incurred to enforce the liability described
in
(i).
1 1. Signatures. If Contractor is a partnership, joint venture, or corporation, then the
person signing this Affidavit on behalf of Contractor is signing both in his or her individual
capacity and as partner, venturer, or officer o.f.'Contractor.
This Affidavit is being filed in compliance with Property Code section 53.106.
'1:ltd1d\1,oan i) ocs \NSP'1tt.edeve1opme,tl112612 City of 1iuntxville \Interim ConsUucfion loan Agreement
Redevelopment_ v4.20120227.doc
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EXECUTED CUJ'l'I.. i) on this day of , 2012.
THE STATE 01< TEXAS
COUNTY OF
OWNER AND CONTRACTOR:
CITY OF I IUNTSVILLI, a political subdivision
of the State of Texas
By:
Name: Mac Woodward
Title: Mayor
SWORN TO, SUBSCRIBED AND ACKNOWLEDGED before me on this _____......._ day of
_..._._> 2012, by Mac Woodward, Mayor of CITY OF .t1.UNTSVILLE, a
political subdivision of the State of Texas, acting on behalf of' said corporation and in the
capacity herein stated.
(Seal)
Notary Public - State of Texas
'f: \idldll,oan i .ToesANSP\tterlevcIopment112612 City of 1l uitsvill6intcrim Construction Loan Agreement
Redevelopment.. y4 _20120227.doe
Page '19 of 59
lot 77 of The METES dow norm Creek Su' dlvitiou, IYAk iiiaTexas
(Ming a 012100f en sue (10,474 srw.ro feat) tract Wood located to rho Pleasant Clay League, AbsiraQ
24, rded Hr Valurna Page 131 auto Plot Records of Walker County, al
Tui !form P Crook . yid 0.240
Of as ►cro ofland being mare potkvfariy dotorlbod by coda and toads u MiMwe:
1.1XG1Nlit140 at a foundS/ g. 1nehltuarodInIkeMltti ngeasterlyrly ,btoftveylinoofDanfcoDrire(S0'
SAW) of record undo( 'Alum 4, Pogo 131 of sold Pig Accords, being the southwestorly coma/ of said
Lot 27, servo Wog the non1iwestoriy cornet of Lot 26 of card /ha Meadow it Norte (toyok SubdIviston;
of llamcar North 03V1P Nye, being the wdete y 1Ina amid of Lot 27, patting it iho 44 931 (u round 3 right /8..inc1ttko trod
sod conitnuing Co t set "11" out In morel* et the noelbtvauerly on of laid I.ot 27, being the
1oaihwastetly confer of Lot 26 of laid The Meadow at Rorie Creak Subdivision;
'1'ftBNCE, North 86'J6'18v Euf, a Caton co of 120.00Ibei, along the nartheety lino of Laid Lot 17.
being the aouhedy Ilse of Laid Lot 30 to 1 «et $4414 11= iron rod with "QS" Cap al !hanottheastady editor
of said Lot 17, being site sootheastuty cometofuld Lot 20;
T1173NCE, South 014311" Slat, a dktaeea of 67.28 feel, along Itte oo l,dy Una of sold Lot 27 to the
southeauarty corner of said Lot 27, Doing the northeasterly coma/ of saki Lot 26;
THSNC1, South 86916'16" Walla distance of 12000 foot, along tho southerly iina of sold Lot 27.
hying the mainly !loo ofaald LM 16 lo tho Petal of Betlutiog and emlafning 0.240 of an acre (10.474
sgu era fret) ofland.
Horton laI Control is based on holding City of llunisvilla Monomsnta No. 7574 (grid coordinate of
North - 10,262 415.31 be Batt- 3,107,009.475) and 7575 (gild coordlaaio of North e. 10,262,126.24 &
P..asI. 3,t01,10.0.21S), Swings desrrlltcd arc Waled io tha Teem Coo/drnere Syetaq of 1963, Canal
Zone. Ulstanoct shams ere US Survey Foot In' Plena Hod of ll" unita and may be convened to' ORI U"
units. by multiplying by a toinbhted mole factor of 0.99901. Sealing eta Also related 10 tho subdivialon
pear of 'fie Meadow U gorse Creek subdivklon of record tutelar Volume 4, Page 131 of mid Plot
Records.
Piet ofevrn data atcompeoles ibis des,+.riptioo.
Prepared byr
GeeSolutlona, (,I,c
256 1411udJe 17oad.
Spring, Tama
To /. 201.49I.9766
Job No. 12. 249.003
EXHI IT "A"
PAGE.
T:1Idkd \1..o;m 17ocs1NSY \Retlevelopmcn(112612 City of 1-luntsvillcl1nterim Construction Loan Agt•cemcnl
1Ztxdevclopnlent.,v4. 20120227.doc
Page 50 of 59
TAX NOTICE TO BUYER
It is your responsibility under Texas Law to RENDER your
newly - purchased property to the proper taxing authorities.
Therefore, when you receive your recorded Deed from Walker
County Title Company, you should contact the appropriate
taxing entity and render your property immediately.
FOR er Coun * ro t ertie
o s erties
Contact:
Walker County Appraisal District
P. O. Box 1798
Huntsville, Texas 77342 -1798
Phone: 936 -295 -0
Buyer
Date
FOR San Jacinto County
Contact:
San Jacinto County Appraisal District
P. O. Box 1170
Coldspring, Texas 77331
Phone: 936 - 653 -1450
Buyer
Date