HomeMy WebLinkAboutCALIFORNIA, STATE OF - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT 6 (2) -2007
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CALHOME PROGRAM
REUSE ACCOUNT and LOAN SERVICING MONITORING AGREEMENT
Standard Agreement Number 06-CalHome-184
THIS MONITORING AGREEMENT (hereinafter the "Agreement"), dated December 4, 2007,
for reference purposes only, is made and entered into by and between the Department of Housing and
Community Development, a public agency of the State of California (the "Department"), and the City
of Santa Ana, a local public agency. (the "Recipient").
RECITALS
A. The Department and Recipient have entered into Standard Agreement No. 06-CalHome 184,
dated November 14,2007, (the "Standard Agreement"), whereby the Department has made a
conditional commitment of $600,000.00 (the "Commitment") from the Department's
CalHome Program (the "Program") to assist Recipient in the operation of an owner occupied
rehabilitation program. The Program is established by Chapter 6 (commencing with Section
50650 Part 2 of Division 31 of the Health and Safety Code, the "CalHome Statutes") and is
further governed by regulations issued by the Department as further described in the
Standard Agreement (the "Regulations").
B. In executing the Standard Agreement, Recipient has agreed to abide by the provisions of the
CalHome Statutes and the Regulations. The Regulations provide that all revenue generated
from use of CalHome funds, including loan repayments if any, are to be deposited into a local
reuse account and used as provided for in the Regulations and as described in a local Reuse
Account Plan approved by the Department. The Standard Agreement contains additional
requirements pertaining to the reuse account and plan, and specifically requires Recipient to
enter into this Agreement. The Department has reviewed and approved the Reuse Account
Plan and Loan Servicing Plan submitted to the Department and copies are attached. Any
changes to either of these plans must be submitted to the Department for review and approval
prior to implementation.
C. In executing the Standard Agreement, Recipient also has agreed to service loans made with
Program funds in accordance with a Loan-Servicing Plan approved by the Department.
D. The purpose of this Agreement is to set forth Recipient's obligations with respect to long-
term loan servicing and the administration of the local reuse account. A separate agreement
is necessary because Recipient's obligations for loan servicing and administration of its
local reuse account extend beyond the term of the Standard Agreement.
NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
I. Recipient's execution of this Agreement is given in further consideration for receipt of
the Commitment.
2. The term of this Agreement shall commence on the Date of the Standard Agreement
November 14, 2007, and remain in full force and effect for a period of twenty (20) years
unless terminated earlier by the Department.
MOnitoring Agreement (October 2007)
3. Recipient shall administer its local reuse account in conformance with the Reuse
Account Plan approved by the Department. The Reuse Account Plan approved by the
Department shall not be modified or amended except by the express written consent of
the Recipient and Department.
4. Recipient shall monitor and service loans made with CalHome funds or funds from the
local reuse account (hereinafter collectively refereed to as "CalHome loans") in
conformance with the loan servicing plan approved by the Department. The Loan
Servicing Plan approved by the department shall not be modified or amended except by
the express written consent of the Recipient and Department.
5. Recipient shall permit the Department, its employees, agents, or designees, upon
reasonable notice and at reasonable times, to enter Recipient's premises and inspect any
and all records pertaining to the local reuse account and Recipient's servicing of
CalHome loans. The Department may request any other information that it deems
necessary to monitor compliance with requirements set forth in this Agreement.
Recipient shall promptly provide such information.
6. Recipient shall file an annual report with the Department for the period July 1 through
June 30. This report shall be submitted no later than July 31 of each year. The report
shall provide information on the dollar amount of deposits to and withdrawals from the
local reuse account, and a description of the uses of funds withdrawn, including but not
limited to number and dollar amounts of loans made, expenses of providing homebuyer
education, and dollar amount of fees for loan servicing, loan processing or loan activity.
The annual report shall also provide information on Recipient's loan servicing activities
during the year including, but not limited to costs of loan servicing, loans in default,
remedial actions undertaken, foreclosures, and bankruptcies.
~. In [he event of a breach or violation of the provisions of this Agreement, the
Department may give written notice to the Recipient thereof by certified mail or any
express delivery service with a delivery receipt addressed to the Recipient at the address
stated in this Agreement. If the breach or violation is not cured to the satisfaction of the
Department within the time period specified in the notice, which shall not be fewer than
30 days, the Department may declare a default and may seek legal remedies including
specific performance of this Agreement, declaratory, and/or injunctive relief, or other
remedies as may be available at law or equity.
8. Recipient agrees and acknowledges that failure to cure a violation to the satisfaction of
the Department within the time allotted shall constitute grounds for denial of eligibility
for future CalHome funding due to lack of organizational capacity, and shall constitute
grounds under any other program administered by the Department for making a
determination that the Recipient lacks the capacity to administer the program funds
being applied for.
9. In the event that the breach or violation involves charges to individual homebuyers in
excess of those permitted under the Standard Agreement or Regulations, the
Department may demand, and seek as an additional remedy, the return of such excess
charges to the affected households.
Monitoring Agreement (October 2007)
10. The remedies of the Department hereunder are cumulative, and the exercise of one or
more of such remedies shall not be deemed an election of remedies and shall not
preclude the exercise by the Department of any one or more of its other remedies.
In witness here fore, the parties hereby execute and enter into this CalHome Program Reuse Account
and Loan Servicing Monitoring Agreement as of the date set forth above and agree to be bound
hereby:
THE DEPARTMENT
Department of Housing and
Community Development,
a public a ency of he
State of a fo is ~~/J~
~!
By:
atrick McGuire
Program Manager
CalHome Program
P.O. Box 952054
Sacramento, CA 94252-2054
Attachments:
Loan Servicing Plan
Reuse Account Plan
RECIPIENT
City of Santa Ana
a local public agency
By: . /
ephen G. azding
Deputy City Manager for
Development Services
20 Civic Center Plaza, M-37
Santa Ana, CA 92701
APPROVE/D AS TO FOAM
T
~,~'~ L
" -' LISA E. STORCK
Assistant City Attorney
Monitoring Agreement (October 2D07)
CITY OF SANTA ANA
CALHOLVIE OWNER OCCUPIED REHABILITATION
REUSE ACCOUNT PLAN
All repayments of loan principal and any loan interest derived from loans funded through
the CalHome Owner Occupied Rehabilitation Loan Program will be deposited into the
City of Santa Ana CalHome Manufactured Housing Loan Program Account No.143-01-
5360. This account will insure that CalHome funds are separated from other funds, and
that no co-mingling of funds will occur. Any accrued interest earned on CalHome funds
will accrue to this account.
Maintenance of this account will enable the Division to use the City's computerized
accounting system. This system will assist the Division to make all required reports on
the use of CalHome Program funds. It will also ensure timely processing of payment or
other requests relating to these funds.
Funds deposited into this account will be used only for the following approved, eligible
uses of such funds:
1, Loans to individual homeowners as allowed pursuant to CalHome Program
requirements;
2. A CalHome activity delivery fee in accordance with with CalHome Program
requirements;
3. Up to 5% of funds deposited may be used towards the cost of loan servicing by
the Division or the cost of third-party loan servicing contracted by the Division.
CITY OF SANTA ANA
CALHOME OWNER OCCUPIED REHABILITATION
LOAN SERVICING PLAN
I. Introduction
The Housing and Neighborhood Development Division of the City of Santa Ana
will maintain loan servicing/managingcopabilities and procedures that meet all
requirements of the CalHome Program (the "Program"). All loan servicing
activities will be carried out by City staff or by AmeriNational Corporation acting
under contract to the City of Santa Ana. Servicing fees for work perforated by
AmeriNational will be paid for out of existing accounts.
II. Transfer of Loans from Underwriting to Loan Servicin
A. Underwriting will be carved out by AmenNanonal Corporation in
accordance with the requirements of the Program. Files will be organized
and maintained in accordance with the Division's existing procedures, and
will include, at a minimum, the following items:
I. Notice of completion of work executed by the owner and the
responsible Rehabilitation Construction Specialist;
2. Copy of a complete set of executed loan documents including the
loan agreement, registration form and promissory note;
3. Copy of escrow instructions and amendments, if applicable;
4. Certified copy of Settlement Statement from escrow;
5. Evidence of coverage for hazard, and if applicable, flood
insurance; and
6. All other underwriting documents.
B. The registration form and promissory note will be secured in the
Division's locked, fireproof file cabinet.
III. Impoun_ d Accounts
The Division does not anticipate the creation of impound accounts.
IV. Property Taxes Assessments Registration Fees. As Applicable
A. The Housing Division does not ant~ctpate making loans to mobile
homeowners who own the lot on which their home is located. Were it to
do so, it would establish and maintain an impound account for the
payment of property taxes through AmeriNational Corporation.
B. The Division will use the California Department of Housing and
Community Development's website to determine if owners are paying
registration fees in a timely manner. Owners who fail to do so will be
contacted by Division staff.
V. Hazard Insurance
A. The Division will require that the City be added as an additional
mortgagee for hazard and, if applicable flood insurance policies.
Page 1 of 3
B. To ensure that insurance requirements are satisfied for the term of the
loan, the Division will:
1. Utilize its existing trackinglticklersysrem for reviewing
insurance renewal notices;
2. Follow its existing procedure of funding insurance on behalf of
borrowers who fail to maintain such insurance, and adding the
cost of that insurance to the loan balance.
VI. Demands and Payoffs
A. In accordance with existing procedure and its contract with AmeriNational
Corporation, the Division will request that demand computations be done
by AmeriNational, but will review those computations for accuracy.
Demands will continue to be approved by the Division before transmittal
to the borrower.
B. The Division will continue to process reconveyances and lien releases in
accordance with City policy and existing procedures. The City will
maintain access to a notary public.
VII. Collection and Receipt of Payments
A. The Division will continue to follow existing procedures and the terms of
its contract with AmeriNational Corporation to collect and record
borrower payments of principal and interest.
B. The City of Santa Ana and AmeriNational Corporation have and will
maintain the necessary controls and separation of duties [o insure the
integrity of their accounting systems.
C. AmeriNational will continue to maintain a readily accessible tracking
system for the loans it services for the City of Santa Ana.
D. AmeriNational will continue to generate yearly statements and 1099s in an
accurate and timely manner.
E. The Division does not anticipate creation of impound accounts for
program borrowers. Should it do so, the Division would act through
AmeriNational to create and maintain such accounts.
F. The Division will create a separate reuse account within the City's
accounting system for payments made on CalHome Program loans. This
will enable the City to track, spend appropriately and report on these
funds.
VIII. Monitoring
The Division will use its existing database and monitoring procedures for the
owner-occupancy requirement of the Ca]Home Program.
IX. Credit Counseling
The Division will continue to follow existing procedure, and refer homeowners
who require such assistance to established credit counseling services.
Page 2 of 3
X. Defaults and Foreclosures
Should a default and/or foreclosure occur, the Division will follow the policy
adopted by the City Council at its meeting of June 1, 1992. That policy
authorizes the Executive Director of the Community Development Agency to take
any of the following actions to protect the City's interests:
a. Initiating foreclosure proceedings;
b. Bidding at a foreclosure sale in an amount sufficient to protect the
City's security interest;
c. Purchasing a senior note and deed of trust or other lien;
d. Acquiring property through foreclosure or deed in lieu of foreclosure.
The Executive Director may determine not to take any of the above actions when
in the Executive Director's opinion such actions would be financially infeasible or
would be counter-productive to the interests or objective of the City.
XI. Subordinations
In accordance with Section 119 of the CalHome Program Guidelines, the lien
securing payment of the program loan shall be subject only to liens,
encumbrances and other matters of record reviewed and approved by the Division
in the exercise of its responsibility for underwriting the loan. Refinancing of the
first mortgage loan, transfer of the property to another party, or assumption of the
first mortgage loan by another party will call the CalHome Program loan due and
payable.
Page 3 of 3
RE:' Sr:r1F
AGREEt•;ENT
P.:,... y F
TfiIS AGREEt4ENT, made and entered into this _ ~'---- da o`
,~ ~1~: 1494, by and between UNITED STATES ESCROW,
fornia Corporation, ("U.S.E.°) and the CITY OF SANTP. ANA, a
a Cal~-
municipal corporation of the State of California ("City°)•'
WITt1F.SSETH
Recitals:
p,• City is undertaking certain activities in furtherance of
its housing programs.
g, City desires to engage the consulting services of U.S.E./
to provide residential loan processing, underwriting, loan
servicing, and to render other assistance and services in
connection wit:: City housing activities. rovide such
C U_S,E. represents that it is qualified to p
services to City.
hrIEREFORE, in consideration of their mutual and respective
promises, and subject to the terms and conditions hereinafter set
forth, the parties hereto do hereby agree as follows:
1, REPRESENTATIVES AND NOTICE the
A, For purposes of implementing this Agreement,
representative of the City shall be the Executive Direcdesi Hated
enc of the City and her ,g
Community Development Ag Y
representatives (the "Director"). Except as may be otherwise
act on
stated hereinafter, the Director shall have the authority
behalf of the City in carrying out the terms of this Agreement.
1
B Any notice or instrument required to be given or
delivered to either party to this Agreement may be delivered by
personal delivery or by depositing the same in the United States
mai'_, postage prepaid, addressed to:
If to the City: Executive Director ency
Community Redevelopment Ag
City of Santa Ana M_14
20 Civic Center Plaza
Santa Ana, CA 92701
• U.S. Escrow
if to U.S.E.: 6121 E. Florence
Downey, CA 90240
Notice of a change of address shall be delivered in the same manner
as any other notice provided herein. Notice by mail shall be
effective three days after mailing by the above-described
procedure.
2. SCOPE OF SERVICES OF U.S.E.. loan
U.S.E. agrees to render consultation, loan processing,
underwriting, and loan servicing as necessary to the implementation
of the housing programs of the City in the form and to the extent
specified by the Director, when and as needed by the City. More
specifically, U.S.E. agrees to perform, at its own cost and expense
except for the compensation specified in this Agreement, the
services specified in Exhibit 1, attached hereto and incorporated
herein.
3, TIME OF PERFORMANCE.
All services to be performed by U.S.E. shall commence when and
as directed by the City and shall be completed within a mutually
2
satisfactor}~ time schedule as appropriate for the required task.
Services shall be on an "as-needed" basis upon specific request
issued by the City•
q, COM?ENSATION. to
(a) Except as may otherwise be provided pursuant
subsection (c) of this section, City agre°°-s to pay and U.S.E•
agrees to accept compensation based on the schedule provided in
Exhibit 1. The fee schedule may be revised fror.. time to time by
U.S.E. upon 30 days advance written notice to the Director,
provided the fees shall not exceed U.S.E.'s prevailing rates to
other public clients.
(b) Subject to Section 5 of this Agreement, U.S.E. shall, nom
mere than once each month, submit an invoice for work performed by
U.S.E. and not yet paid for by City. Each such invoice shall be
accompanied by a detailed statement of the work performed. Each
Proper invoice shall be paid by City within thirty (30) days of
invoice date.
(c) U.S.E. and the Director may, by letter agreement signed
by both, modify any of the terms of subsections (a) through (b) of
this Agreement with regard to any specified task or tasks to be
performed by U.S.E. Such modifications may include, but are not
limited to, the establishment of a fixed fee or a maximum amount of
compensation to be paid for any such tasks.
5, DRAW-DOWN ACCOUNT ursuant to
With regard to any City loan processed by U.S.E. p
this Agreement which provides for the City to receive a fee from
3
the loan proceeds, U.S.E. shall, instead of remitting the amount of
such fee to the City, retain the same in a draw-down account.
Como_ensation due to U.S.E. with regard to such loan shall be drawn
by U.S.E. from said account to the extent funds are available
therein; provid=_d, however, that no funds shal~i be so withdrawn
without the written approval of the Director as co the amount due
to U.S.E., which approval shall not be unreasonably withheld. Upon
the completion of the funding of the subject load, the balance, if
any, in the draw-down account shall be remitted by U.S.E. to the
City.
6, INDEI~L*rIFICATION
U.S.E. agrees to indemnify and hold harmless the City and its
officers and employees, from and against any and all loss or
damage, and from any and all suits, actions and claims filed or
brought by any person or persons, arising out of the negligent acts
or omissions of U.S.E. or of its subcontractors or of the officers,
agents, employees of U.S.E. or of its subcontractors in the
performance of this Agreement.
7, INSURANCE
With respect to performance of work under this agreement,
U.S.E. shall maintain and shall require its subcontractors, if any,
to maintain insurance as described below:
(1) Workers' compensation insurance with statutory limits,
and employer's liability insurance with limits of not
less than $1,000,000 per accident.
(2) Commercial general liability insurance, or equivalent
a
form, with a combined single limit of not less than
$1,000,000 per occurrence. If such insurance contains a
general aggregate limit, such limit shall apply
separately to each project U.S.E. Performs for City.
Such insurance shall (a) name the City of Santa Ana and
its officers and employees as additional insureds; and
(b) be primary with respect to insurance or self-
insurance programs maintained by the City, and (c)
contain standard separation of insureds provisions.
U.S.E. shall (a) furnish properly executed certificates of
insurance to the Director prior to commencement of work under this
Agreement, which certificates shall clearly evidence all coverages
required above and provide that such insurance shall not be
materially changed or terminated except on 30 days' prior written
notice to the City; and (b) maintain such insurance from the time
work first commences until completion of the work under this
Agreement; and (c) replace such certificates for policies exairing
prior to completion of work under this Agreement.
The Director may waive or reduce the requirements of this
section if and to the extent the Director determines them to be
unreasonably burdensome to the U.S.E. and not necessary for the
protection of the City.
g, TERMINATION OF AGREEMENT
This Agreement may be terminated by the Director upon written
notice of termination to U.S.E. In such event, U.S.E. shall be
entitled to receive and the City shall pay U.S.E. compensation for
5
all services performed by U.S.E. prior to U.S.E. 's receipt of such
notice of termination. As a condition of such payment, the
Director may require U.S.E. to deliver to the city all work product
completed as of such date, and in such case such work product shall
be the property of the City, and U.S.E. consents to the City's use
thereof for such purposes as the city deems appropriate.
9. MISCELLANEOUS PROVISIONS.
A. U.S.E. covenants that it presently has no interest, and
shall not have any interest, direct or indirect, 'which would
conflict in any manner with the performance of services required
hereunder.
B. By signing this Agreement, U.S.E. certifies that it does
not discriminate in hiring on the basis of race, color, creed,
religion sex, age, marital status, national origin, ancestry,
physical handicap or medical conditions.
C. U.S.E. shall not assign or transfer any interest in this
Agreement, whether by assignment or novation, without the prior
written consent of the Director; provided, however, that claims for
money due or to become due from the city under this Agreement may
be assigned to a bank, trust company or other financial
institution, or to a trustee in bankruptcy, without such approval.
Notice of any such assignment or transfer shall be promptly
furnished to the Director.
D. U.S.E. agrees that U.S.E. is an independent contractor
and not an employee of the City and all U.S.E.'s personnel shall be
employees or subcontractors of U. S. E. and not emp loyees of the
6
city. U.S.E. shall pay all salaries and wages, employer's social
security taxes, unemployment insurance and similar taxes relating
to employees and shall be responsible for all applicable
withholding taxes.
E. U. S. E. shall not subcontract any of the se::-vices required
hereunder without written approval of the Director.
F. U.S.E. reserves the right to effect changes in form or
name, including, but not limited to changes f::-om individual
proprietorship, partnership or corporation to any other such form
of organization, and likewise reserves the right to add, substitute
or delete stockholders, partners, associates and employees. This
Agreement shall continue in effect with regard to D.S.E. under its
new form or name without the necessity of any amendment to this
Agreement..
The Director shall be promptly notified of any such
change in form or name.
G. Nothing in this Agreement shall be construed to limit the
city's ability to have any of the services which are the subject of
this Agreement performed by city personnel or by other consultants
retained by the city.
H. The invalidity in whole or in part ot any provlslon of
this Agreement shall not void or affect the validity of any other
provision of this Agreement.
I. This Agreement shall be governed by and construed in
accordance with the laws of the state of california.
J. This Agreement supersedes any and all other agreements
either oral or in writing between the parties hereto with respect
7
to the services set forth in Section 2 of this Agreement and
contains all the covenants and agreements between the parties with
respect thereto. Each party to this Agreement acknowledges ~hat no
representation, inducements, promises or agreements, orally or
oLherwise, have been made by any party, or anyone acting on behalf
of any party, with respect to such services, which are not embodied
herein, and that no amendment hereto shall be effective unless set
forth in writing, approved by the governing board of the city, and
signed by both the City and V.S.E.
IN WITNESS lo.'HEREOF the parties hereto have executed this
Agreement the date and year first above written.
l-.TTEST:
CITY OF SANTA ANA
by
D~~
Mayor
C. Guy /
the council,
APPROVED AS TO FORM:
8~
Edward . 0 er
city Attorney
TATES ESCROW
VIP.
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COMPENSATION
united States Escrow respectfully submits the follo,^'il1g fees for
the Agency's consideration:
A. j:.,OAN AND REB."TE GENERAL INFORMATION AND SCREE:NING
Applicant screening:
$20.00 to $45.00
explanat.ion of
questionnaire, and
negotiated by USE
done.
per questionnaire (includes phone
programs and complete screen
mailing of applications). Fee to be
and city, based on final work to be
Application Intake and Completion:
$75.00 per completed application (includes compiling and
completing application and borrower support
documentation) .
For a file in which a preliminary Risk Analysis (PAA) is
performed but which is not approved for loan processing: a
fee of $145.00.
B. SINGLE FN{ILY LOAN PROCESSING
For each lo"n for which processing and underwriting are
performed: $285.00 plus outside costs.
Loan Cancellation Fee: one half of fee plus outside costs if
loan is cancelled after delivery of Preliminary Risk Analysis
to Agency. Total fee plus outside costs is charged if loan
is cancelled after delivery of full uncerwriting analysis to
Agency.
*Outside costs include, but are not limited to, title, credit,
and appraisal. These costs are passed through from outside
vendors and are subject to marketplace incr'eases.
C. MULTI-FAMILY, COMMERCIAL. AND ECONOMIC DEVELOPMENT LOAN
PROCESSING AND UNDERWRITING
Employed Individual or
Married couple/Sole
Proprietor $400 plus outside costs*
corporation $450 plus outside costs*
partnership $650 plus outside costs*
Limited Partnership $1000 plus outside costs*
Loan Cancellation Fee: one half of fee plus outside costs if
loan is cancelled after delivery of Preliminary Risk Analysis
to Ag8ncy. Total fee plus outside costs is charged if loan
is cancelled after d~livery of full underwriting analysis.
*Outside costs include, but are not limited to, title, credit,
and appraisal. These costs are passed through from outside
vendors and are subject to marketplace increases.
D. LOAN DOCUMENT PREPARATION
For each project for which documents are prepared:
plus outside costs including, but not limited to,
credit, and recording fees.
$135.00
title,
For each project for which title and credit reports have been
supplied by U.S. Escrow, but which is thereafter cancelled
without performance of loan document preparation: a
cancellation fee of $37.50 plus outside costs for title and
credit reports.
For each project for which documents have been supplied by
U.S. Escrow, but which is thereafter cancelled without
performance of disbursement services: a cancellation fee of
$75.00 plus outside costs for title and credit reports.
A fee of $15.00 will be charged to Agency for each separate
document to be redrawn due to actions by the Agency.
E. CONSTRUCTION FUNDS DISBURSEMENT SERVICES
For each project for which escrow disbursement services are
performed: $75.00 plus recording fees.
For each project for which escrow disbursement services are
performed that require from 2 to a maximum of 4 deposits, a
fee of S125.00 plus $25.00 per each de?osit beyond the
original deposit and project opening.
USE shall charge an additional fee of $50.00 for any project
requ~r~ng this service whose total project amount is less than
$100,000.
F. GRANT DISBURSEMENT ESCROW
For each project which involves disbursement of grant escrows:
$90.00 per nine transactions.
G.
CASH MANAGEMENT SERVICES
RENTAL REHABILITATION SECTION 17
For projects requiring Rental Rehabilitation services: a fee
of 1/2 of 1% of the total amount escrowed with a minimum fee
of $250.00 and a maximum fee of $1,000.00.
H. CASH MANAGEHENT SERVICES - HOHE PROGRAH
SERVICE LEVELS
LEVEL 1:
A fee of 1/2 of 1% of the total project amount with
a minimum fee of $225.00. USE does not supply HOME
Program Management Reports.
LEVEL 2:
a)
All funds deposited at opening of individual
project escrow except HOME Treasury: a fee of
3/4 of 1% of the total project amount with a
minimum fee of $225.00.
b) All funds deposited at opening of individual
project escrOW except HOME Treasury and Q.D.g
other federal funding source: a fee of 1% of
the total project amount with a minimum fee of
$250.00.
c) All funds deposited at opening of individual
project escrow except HOME Treasury and ~
other federal funding sources: a fee of 1-
1/4% of the total project amount with a minimuw
fee of $275.00.
LEVEL 3:
a)
Fixed ranking of funding sources with each
source used until exhausted: a fee of 1-1/4%
of the total project amount with a minimum fee
of $325.00.
b) Fixed percentage of multiple funding sources
used throughout each project: a fee of 1-1/2%
of the total project amount with a minimum fee
of $350.00.
c) On demand, check by ..,heck, a. .fee of 1-3/4% of
the total project amount with a minimum fee of
$375.00.
Tenant-Based Rental Assistance in which project tenants are
to receive monthly payment subsidy checks: a fee of $150.00
for projects with 1-4 units plus a fee of $12.00 per check
issued. For projects in .which there are more than 4 units
recei ving tenant-based rental assistance, a fee of $250.00
plus $10.00 per check issued.
For maintenance of HOME direct depository account, a fee of
$84.00 per month will be charged.
For re-issuing of checks/stoP payment of checks due to actions
of the city or payee, a fee of $25.00 [JerC::!1Cck will be
charged.
Discounts on large scale projects for Levels 2 chrough 4:
a) For project amounts between $100,000 and $250,000:
a 30% discount applied on the standard rate on the
amount over $100,000.
b) For project amounts between $250,000 and $500,000:
a 40% discount applied on the standaes rate on the
amount over $250,000.
c) For projects over $500,000: a 50% discount applied
on the standard rate on the amount over $500,000.
I .
LOAN PORTFOLIO MANAGEMENT
shall choose 1 of 2 0
1) Amortized: One time loan set-up fee of $25.00 per loan
plus 1/24 of 1% per month of original principal loan
amount per month with a minimum fee of $6.75 and maximum
fee of $15.25. Impounding of taxes and insurance is
included with service at no additional cost except for
one time ta~ service fee of $55.00. Monitoring of taxes
and insurance is included with service at no additional
cost except a one time tax service fee of $55.00.
2) A one time set-up fee of $25.00 per loan plus J/8 of 1%
of the City's total current portfolio principal balance
with no minimum or maximum rate per loan.
J. LOAN FORBEARANCE SERVICES
A one time charge of $150.00 for each loan for which USE
provides forbearance services.
K. FORECLOSURE
A one time charge of $150.00 to transfer note ownership and
prepare documents to commence foreclosure proceedings and to
manage the foreclosure process on behalf of the Agency.
In addition to the above foreclosure service fee, USE shall
be reimbursed for other costs incurred in the foreclosure
process such as, but not limited to, conventional legal fees,
sheriffs' deposits, bankruptcy closing costs, fees set by law,
etc. These fees will be accurately quoted on a case-by-caSe
basis upon request by the Agency and they will be within all
applicable statutory limits.
No cash deposit will be required from the Agency at the time
foreclosure proceedings are instituted, pursuant to an
executed agreement. However, USE's fee for services rendered,
and its costs and other charges will be due and payable, by
the Borrower upon reinstatement (or full payment of any Deed
of Trust or Mortgage under foreclosure), pursuant to an
agreement; or payable by the Agency at the time of publication
of any Notice of Trustee's Sale of the real property
encumbered by said Deed of Trust or Mortgage; or payable by
the Agency five (5) months from the date foreclosure
proceedings are instituted in connection with such Deed of
Trust or Mortgage, whichever event shall sooner occ~r.
L. DEFERRED LOAN COLLECTION SERVICES
Deferred: One time charge of $60.00 per loan for the life of
the loan.
Deferred with monitoring of taxes and insurance:
charge of $105.00 per loan for the life of the loan
time t~x service fee of $55.00.
One time
plus a one
Deferred with monitoring of taxes, insurance, and title: One
time charge of $125.00 per loan for the life of the loan plus
a one time tax service and title protection fee of $54.00.
Deferred with impounding of taxes and insurance:
cha~ge of $60.00 plus a one time tax service fee
plus $6.50 per month per loan.
One time
of $55.00
USE will charge a fee of $10.00 for each tickler notification.
USE will charge a flat fee of $8.50 per payment for receiving
occasional payments on deferred loans.
M. LOAN INCOME REVIEW AND SITE VISIT
a)
b)
c)
Income Recertification:
Property condition Profile:
Affidavit of owr.er
$100.00 per file
$ 65.00 per file
$ 40.00 per file
N. COMPUTER LINKAGE PACKAGE
Monthly maintenance fee of $120.00 per month plus $.65/rninute;
minimum of ] minutes per access.
, .
\
O.
DAVIS-BACON WAGE COMPLIANCE MONITORING
For each project, a fee of 1/2 of 1% of the to::al project
amount with a minimum fee of $2,350.00 Fee will be invoiced
in the following manner: at the beginning oE construction,
1/2 of Eee; at construction midway point, remaining 1/2 of
fee. Invoices payable upon receipt. Fee may also be added
to projects as a soft cost and deducted from escrow, at the
Agency's dissretion.
Employee site interviews are for monthly site Jisics up to the
following ma~imums:
a. for a p~oject $0 - $149,999, a maximum of G months
b. for a project $150,000 - $649,999, a ma~imum of 12
months
c. for projects $650,000 and over, a maximum of 18
17lonths
Each addi tiona 1 inspection, if requested, wi 11 be $ 200.00
each.
The fee stated is for standard disbursement projects.
Projects involving section 17 Rental Rehab, section 312, or
HOME funds wi 11 require the additional cash management service
fee which should be added to the stated Davis-Bacon fee.
For technical consultation services,
hour.
I/SD -
a fee of $100.00 per
P.
TECHNICAL CONSULTATION
Q. MORTGAGE ASSISTANCE APPLICATION UNDERWRITING
1) Underwri tinq Agency direct deferred loans (per loan):
$285.00.
Loan cancellation fees will be 1/2 of the above fees pluS
outside costs if loan is cancelled prior to delivery of
full underwriting analysis to Agency.
2) Loan Document preparation: $150.00 pluS outside costs.
Cancellation fees: $37.50 if outside services are
ordered without the preparation of loan documents; $75.00
if loan documents are prepared and loan is cancelled.
R. REAL PROPERTY ESCROW
for neal property escrow services: S200. 00 [l'2r side plus
S2.00 per thousand per side of escrow.
S. PROGRAH PERfORHANCE S\JM11bB1ES
S50.00 to SlOO.OO per report, dependinc; 0:., requirements of
Age;ocy.
T. 1_IONITORH1G SERVICES (All fees quoted are "per occurrence")
1) 11ulti-family Mortgage Revenue Bond, LlilTC, '1'1, and HOI.IE
Rental projects)
a) SerV ice Level One:
S50.00 per project plus $25.00 per loW income unit.
b) service Level 'f'oIO - complete HOME l-\oni toring:
$175.00 per project plus $50.00 per loW income unit.
c) provide on-site Inspection (minimum 20 projects):
$$45.00 per loW income unit.
2) Deferred Loan Monitoring services
a)
b)
c)
Income Recertification:
Property condition Profile:
Affidavit of owner
$125.00 per file
$ 40.00 pee file
$ 35.00 per file
* * * * * *