NSP PROPERTY PURCHASE AUTHORIZATIONS NEIGHBORHOOD STABILIZATION PROGRAM 1734 SELDON AVE. & 342 N. TORNILLO ST.

NEIGHBORHOOD STABILIZATION PROGRAM CITY IS A SUB-RECEIPIENT UNDER A GRANT FROM THE STATE OF NEW MEXICO STARTED IN LATE 2009, TO PURCHASE VACANT, ABANDONED OR FORECLOSED PROPERTIES CITY’S ALLOCATION TOTALED $1,500,000 CITY PARTNERS: TIERRA DEL SOL HOUSING CORPORATION CREATE HOMEOWNERSHIP OPPORTUNITIES LA CASA, INC. CREATE AFFORDABLE RENTAL OPPORTUNITIES

1734 SELDON AVE. CLASSIFIED AS VACANT PROPERTY LOCATED WITHIN COUNCIL DISTRICT 3 WILL BE PROVIDED TO TIERRA DEL SOL HOUSE CONDITION: AVAILABLE FOR SALE, AND IS EMPTY RELATIVELY NEW REMODEL THROUGHOUT THE HOME (NEW KITCHEN, UPDATED BATH AND FLOORING) REQUIRES WEATHERIZATION (NEW HEATING AND COOLING SYSTEM, INSULATION, AND NEW WINDOWS)

CHANGES TO PURCHASE AGREEMENT ORIGINAL PURCHASE OFFER: $128, 500 WAS SUBJECT TO NOT EXCEEDING APPRAISAL PRICE TERMITE INSPECTION ON THE PROPERTY AND WAS TREATED FOR THE EVIDENCE OF TERMITES (SELLER PROVIDED) APPRAISAL: $125,100 REVISED OFFER SUBMITTED BY THE CITY AND ACCEPTED BY THE SELLERS UPDATED RESOLUTION (I.E. SUBSTITUTE RESOLUTION) CORRECTS THE NEW PURCHASE PRICE IN THE TITLE ADDITIONAL INFORMATION RELATED TO THE ADDENDUMS ADDED TO EXHIBIT “A” IF APPROVED, ALLOWS FOR THE TRANSFER TO TIERRA DEL SOL THIS WEEK

342 N. TORNILLO ST. CLASSIFIED AS VACANT PROPERTY LOCATED WITHIN COUNCIL DISTRICT 1 WILL BE PROVIDED TO TIERRA DEL SOL HOUSE CONDITION: AVAILABLE FOR SALE, AND IS EMPTY SUBSTANTIAL REMODEL, INCLUDING PRESERVATION OF HISTORIC VALUE REMODEL PLANS APPROVED BY STATE HISTORIC PRESERVATION OFFICE

PURCHASE CONDITIONS PURCHASE OFFER: $19,200 APPRAISAL WAS FOR THE LAND ONLY, NOT THE HOUSE DUE TO ITS CONDITION MUST RESTORE THE HOME TO ITS HISTORIC SIGNIFICANCE, CANNOT BE DEMOLISHED FULL PROPERTY APPRAISAL WAS $70,000 (+/-) REHABILITATION EXPENSES = $80,000 (SEE FINANCING BELOW) SEPARATE LOT CREATED & EASTSIDE COMMUNITY CENTER HOUSE IS OWNED BY SERVICES FOR SENIORS, INC. ALSO THE OWNERS OF THE EASTSIDE COMMUNITY CENTER, UNDER LEASE TO THE CITY FOR OPERATIONS OF SENIOR PROGRAMS WILL SUBDIVIDE THE PARCEL TO PROVIDE ADDITIONAL PARKING TO THE EAST OF THE HOME FOR USE WITH EAST SIDE

FINANCING FINANCING SERVICES FOR SENIORS WILL LOAN THE SALE PROCEEDS TO TIERRA DEL SOL FOR A PORTION OF THE CONSTRUCTION COSTS WILL BE PROVIDED TO THE HOME OWNER AS A DEFERRED PAYMENT LOAN (2ND POSITION MORTGAGE) HAS BEEN APPROVED BY THE STATE OF NEW MEXICO & HUD TIERRA DEL SOL WILL TAKE OUT A CONSTRUCTION LOAN REHAB WORK EXCEEDS THE STATE IMPOSED $50,000 CONSTRUCTION LIMIT HOMEOWNER – PERMANENT FINANCING: FIRST MORTGAGE – TAKES OUT THE CONSTRUCTION LOAN SECOND MORTGAGE – SERVICES FOR SENIORS (DUE ON SALE) THIRD MORTGAGE – CITY’S NSP (UP TO THE AMOUNT OF THE APPRAISAL) IF APPROVED, ALLOWS FOR THE TRANSFER TO TIERRA DEL SOL THIS WEEK

FINANCING SCHEME DESCRIPTION EXAMPLE ONLY FINAL APPRAISAL $110,000 1ST CONVENTIONAL LOAN $35,000 2ND DEFERRED LOAN TO SERVICES FOR SENIORS -$19,200 3RD CITY NSP (AMOUNT INVESTED UP TO APPRAISAL) -$55,800 BALANCE $0

COUNCIL OPTIONS SELDON TORNILLO SUBSTITUTE THE AMENDED RESOLUTION AND EXHIBIT “A” VOTE YES VOTE NO MODIFY OR POSTPONE TORNILLO VOTE: YES NO