ORDINANCE authorizing and approving an amendment to Ordinance No. 2019-265 to eliminate the 5-Year Recorded Deed of Trust requirement for individual homeowner assistance greater than $20,000.00 up to and including $40,000.00 and to eliminate the 10-Year Recorded Deed of Trust requirement for individual homeowner assistance greater than $40,000 up to and including $80,000 under the City of Houston’s Hurricane Harvey Homeowner Assistance Program (“HoAP”); approving a 3-Year Compliance Period evidenced by an Unsecured Forgivable Promissory Note and enforced by a Forgivable Loan Agreement for individual homeowner assistance greater than $20,000.00 up to and including $80,000; approving the forms of Forgivable Loan Agreement and of the respective Unsecured Promissory Note for individual homeowner assistance greater than $20,000.00 up to and including $80,000, attached to this ordinance, to be executed by the City of Houston, Texas, and each eligible HoAP participant

The Housing and Community Development Department (HCDD) recommends an ordinance to approve changes to the lien requirements on assistance through the Homeowner Assistance Program (HoAP).  HCDD has received approval from the General Land Office (GLO) for changes to the lien requirements on assistance through the Homeowner Assistance Program (HoAP).  For assistance up to $80,000.00, no lien will be placed on the property.

This lien modification is designed to ensure Houstonians receive the assistance needed to recover from Harvey, without concerns about potential financial burden placed on their property.

Assistance will be provided in the form of a grant, a zero-interest unsecured forgivable loan, or a zero-interest secured forgivable loan as follows:

·         For assistance that is $20,000.00 or less, it will be considered a Grant Award.

·         For assistance $20,001.00 to $80,000.00, there will be a three (3) year unsecured compliance period.

·         For assistance $80,001.00 and up, there will be a 20-year compliance period secured by a lien.

Fiscal Note:

No Fiscal Note is required on grant items. 

This item was reviewed by the Housing and Community Affairs Committee on October 15, 2019.

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Tom McCasland, Director

6-27-2018 (O) 2018-518

1-2-2019 (O) 2019-10

Roxanne Lawson

(832) 394-6307