LULAC: The Continuing Saga 5th in the Series - Hacienda Deed of Trust - Bank The Editor - This is the

5th in the Series on the LULAC Hacienda Apartment property that was sold by Margaret Moran, Oscar Moran and Manuel Escobar to Walter Martinez. The file that you can read below is the Deed of Trust on the Hacienda property held by Capital One National Bank on a loan made to the Hacienda Senior Housing LP (a Walter Martinez created organization), which is managed by the Hacienda Senior Housing GP, LLC (a Walter Martinez created organization), which itself is managed by the San Antonio Community Development Council (which itself was organized by Walter Martinez and Manuel Escobar), the San Antonio Community Development Council, Inc., currently managed by a Board of Directors consisting of Henry Rodriguez, President, Walter Martinez, Vice-President and Secretary, Alan Radel and hector Garcia as Members, for which Manuel Escobar serves as Agent for Service. The selling of the LULAC Hacienda property consists of a fraud ridden transaction. The legal link between LULAC and Walter Martinez' organizations, the LP, the GP and the Inc. is Manuel Escobar. An attorney cannot serve two masters, i.e., two clients, at the same time or within a reasonable same time. This conflict Manuel Escobar was paid $15,000.00 out funds that were to be credited to LULAC in the closing, the assumption here being that LULAC paid Manuel Escobar $15,000.00 for the work that Manuel Escobar did for Walter Martinez by getting Walter

Martinez to become the owner of the LULAC Hacienda property for pennies on the dollar. William Bonilla received $150,000.00 in the closing for legal work. The big question for LULAC'ers and for the LULAC National Board is what did William Bonilla do in the transaction to get paid $150,000.00. The money is money to buy peace among hard headed LULAC National Board leaders and Bonilla. There is no record of legal work that Bonilla performed for the $150,000.00. The Hacienda property was conveyed by Margaret Moran to Walter Martinez' organizations on November 30, 2012. The title company has a closing statement with a settlement date of December 11, 2012 and disbursement date of December 11, 2012. The Deed of Trust that is exhibited below has a signature date of December 11, 2012. There is no LULAC resolution prior to the date of the conveyance authorizing the conveyance. An agreement to sell the Hacienda property to Walter Martinez' organizations was entered into between Walter Martinez and Margaret Moran, acting for LULAC, on December 1, 2011. There is no LULAC resolution that authorized Margaret Moran to enter into that agreement to sell the Hacienda property prior to December 1, 2011. The Hacienda property had a redevelopment value of $10,075,613.00 when presented to the City Council of Corpus Christi in the fall of 2012. HUD's projected flat rental value had the project at $11,913,120.00 in rents over a 20 year period. On the day that Margaret Moran signed the Special Warranty Deed in favor of Walter Martinez' organizations, the

LULAC property had in its financial coffers a $500,000 grant from the City of Corpus; $946,919.00 of tax credits from the Texas Department of Housing and Community Development, that had a loan leverage potential of $7,000,000.00 to $10,000,000.00; a commitment from HUD for Section 8 funding worth 70% of the rental value of the Hacienda property to run from August 1, 2012 to July 31, 2032, i.e., a commitment to provide rental assistance in the amount of $8,339,184.00, plus additional financial support from adjustments to be made during the 20 year commitment period; and the $6,780,000.00 loan from Bank One, the loan that had been cooking in the oven for over 6 months prior to November 30, 2012 when Margaret Moran conveyed the property to Walter Martinez' organizations and was executed on December 11, 2012, 11 days after Margaret Moran signed over the property. Deed of Trust Capital One National Bank