The Housing and Community Development (HCD) Department recommends Council approval of an Ordinance authorizing and adopting amendments and revisions to the Harvey Homeowner Assistance Program (HoAP) Legal Documents in accordance with the State of Texas Action Plan for Disaster Recovery: Amendment 10 (APA -10) Hurricane Harvey - Round 1.
The amendments and revisions to HoAP legal documents will be made to the City’s forgivable loan agreement, promissory note, and deed of trust, as applicable. The documents will reflect that the compliance period for any reconstruction or rehabilitation will have a three-year unsecured compliance period. The City-managed reconstruction home compliance period changes from a 20- year lien to no lien with a three-year unsecured compliance period. The compliance period for City-managed rehabilitated homes changes from a 5- or 10-year compliance period to a three-year unsecured compliance period.
Legal documents include a newly implemented restrictive covenant which will be filed in the Official Public Records of Harris County, Texas. The restrictive covenant states that the homeowner must hold simple title to the property and occupy, establish and use the property as the owner’s primary residence during the compliance period. The compliance period change is retroactive for all HoAP participants that sign an amended contract.
The revisions do not require an increase or decrease of funds or reallocation of any funding.
The HoAP legal documents are being presented in a separate City Council action.
No fiscal note is required on grant items.
This item was reviewed by the Housing and Community Affairs Committee on October 18, 2022.
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Keith W. Bynam, Director