Momark Development, L.L.C.

We received the complaint from Ms***We respectfully disagree with the assertions in Ms***'s complaintMs***'s complaint is also dated August 28, She also signed a release of earnest money, copy enclosed, dated August 28, As stated in the enclosed release, Bianca has
terminated her contract and agreed to the disbursement of her earnest money to Westgate Momark LLCTo further explain our position, we are working with Homebase, a non-profit affordable housing organization that prequalifies buyers for a City-subsidized programWe are working to provide housing in Westgate Grove, a community of homes being built by Westgate Momark LLC, just off Westgate Boulevard just south of Cameron Loop and north of Davis LaneThe program requires the buyer to pre-quality for a mortgage, then sign a contract that will deliver a home to that buyerOn average, that home will be anywhere from $30,to $70,below market for homes in that areaWestgate Momark works to serve Homebase clients to deliver the homesThe purchase contract clearly states that home closings will occur once the home is completedThere is no closing date (other than closing after the certificate of occupancy is obtained)Because of the unique nature of these homes - only being sold to buyers earning 80% median family income (of the Austin area), we do not start any process until we have a Homebase client that has signed a purchase contract and provided a pre-approval letter from a mortgage lenderOnce that happens, we start the process to obtain a building permitThat process takes three to eight weeks at the cityWe then build the home, which takes to days, depending on a variety of factorsIn this case, several issues added to the time table: First, there were city issued relating to design interpretation (actually, changes in interpretation) that required mid-stream design and construction changesDelays resulted due to the change in City interpretation of the codeSecond, we had the wettest May on record, which slowed construction. The median home prices in this area sell for between $and $per square foot, meaning that Ms*** was getting a home from $40,to over $70,under market pricingEven though we had incurred additional costs due to these issues, we expected to honor the terms of the purchase agreement where the buyer was obligated to purchase the home upon completion (and certificate of occupancy) of the home.The buyer was unwilling to closePursuant to the purchase contract, we had the right to retain the earnest moneyThis earnest money does not compensate us for the additional costs associated with the additional interest carry, and a second set of marketing and selling expenses, however, that is the stipulated compensation if the buyer does not close.We are very sorry that Ms*** was not willing close and accept the value provided to her through the efforts of the City (subsidizing this price), the efforts of Homebase working to set up this benefit for Austin residents (over five years of time) and our efforts in planning, obtaining approvals and building this home for her (over five years of work).We wish her the best