The Mayor’s Office of Recovery seek approval of an ordinance approving and authorizing a form for a Forgivable Loan Agreement, First Lien Deed of Trust, Second Lien Deed of Trust, and Promissory Note to be used for home-owners participating in the Fifth Ward Voluntary Relocation Program (FWVRP).
On July 13, 2023, Mayor Sylvester Turner created a Strike Team to begin work on a program to help relocate residents living over the creosote plume adjacent to the Union Pacific Railyard. On September 27, 2023, City Council approved funding in the amount of $5 million to assist with the relocation of certain residents who voluntarily seek to relocate away from the plume. The FWVRP seeks to provide a relocation plan for eligible homeowners and tenants who voluntarily wish to participate. The FWVRP includes options for acquisition of new residences at fair market value and relocation assistance for homeowners and to help find a comparable replacement rental dwelling for tenants. Relocation assistance will include advisory services, replacement housing payments, buyout of existing leases, relocation assistance for tenants, and moving expenses. The primary eligibility requirement is that residents must have permanently resided in the Relocation Zone prior to July 1, 2023.
Through the FWVRP, the City may provide forgivable downpayment assistance loans to relocating homeowners who choose to purchase a home. Loans will be forgiven after three years upon completion of the purchase of the home and will include a loan agreement, promissory note, and deed of trust to be executed by the Mayor at each closing without further action of Council. The form of deed of trust includes restrictions prohibiting the sale of the property without City approval prior to forgiveness of the loan.
Fiscal Note:
No significant Fiscal Operating impact is anticipated as a result of this project.
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Stephen Costello, Chief
Mayor’s Office of Recovery