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HomeMy WebLinkAbout2012-272 1 RESOLUTION NO. 2012-272 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE 3 CITY OF SAN BERNARDINO SERVING IN ITS CAPACITY AS THE 4 SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING THE 5 TERMINATION AND FULL RECONVEYANCE OF A RESTRICTIVE COVENANT AND DEED OF TRUST RELATING TO REAL PROPERTY 6 LOCATED AT 218 EAST TEMPLE STREET, SAN BERNARDINO, CALIFORNIA 7 8 WHEREAS, on January 9, 2012, the Mayor and Common Council of the City of 9 San Bernardino ("Council") adopted Resolution No. 2012-12 confirming that the City of 10 San Bernardino would serve as the "Successor Agency" to the Redevelopment Agency of the 11 Cityof San Bernardino ("Agency") effective February 1, 2012, pursuant to AB1X 26 (The 12 Redevelopment Agency Dissolution Act); and 13 WHEREAS, on January 23, 2012, the Council adopted Resolution No. 2012-19 confirming that the City would serve as the"Successor Housing Agency"to the former Agency and perform the 14 housing functions previously performed by the Agency; and 15 WHEREAS, pursuant to Health & Safety Code Section 34181(c), added by AB1X 26, the 16 Oversight Board for the Successor Agency ("Oversight Board") is required to direct the transfer of 17 the former Agency's housing assets and functions to the Successor Housing Agency; and 18 WHEREAS, pursuant to Health & Safety Code Section 34176(e)(1), added by AB1484, 19 deeds of trust and restrictions on the use of real property such as affordability covenants benefiting the Agency are considered"housing assets;"and 20 WHEREAS, the Agency provided a down payment assistance loan ("Loan")to the purchaser 21 ("Homeowner") of real property located at 218 East Temple Street, San Bernardino, California 22 ("Property") in the amount of$7,400; and 23 WHEREAS, the Loan was evidenced by a Promissory Note dated January 15, 1999 ("Note") 24 and secured by a Deed of Trust, executed by the Homeowner on January 15, 1999, and recorded 25 against the Property in the Official Records of the County of San Bernardino on February 3, 1999 as Instrument Number 19990043155 ("Deed of Trust"); and 26 WHEREAS, in connection with the Loan, on January 15, 1999, the Homeowner executed 27 certain covenants containing affordability, maintenance and other restrictions and recorded such 28 1 2012-272 1 covenants against the Property in the Official Records of the County of San Bernardino on February 2 3, 1999 as Instrument Number 19990043156 ("Covenants"); and WHEREAS, the provisions in the Covenants restricting the sale and occupancy of the 3 Property to low income households expired by their terms ten (10) years following the date of 4 delivery of title and possession of the Property to the Homeowner, specifically, February 3, 1999; 5 therefore, such affordability restrictions are no longer in effect; and 6 WHEREAS, the Note provides that all principal and interest owing on the Loan is forgiven 7 ten (10) years following the date of delivery of title and possession of the Property to the 8 Homeowner, specifically, February 3, 1999; and WHEREAS, the Homebuyer has requested that the Successor Housing Agency confirm that 9 the Loan has been forgiven, reconvey the Deed of Trust, and terminate the Covenants, and 10 WHEREAS, the Oversight Board adopted a resolution (Resolution SBOB/2012-07)pursuant 11 to which it confirmed that the Covenant and Deed of Trust are housing assets and authorized 12 Successor Agency staff to transfer all rights and interests in the Covenant and Deed of Trust to the 13 City in its capacity as the Successor Housing Agency; and 14 WHEREAS, the State of California Department of Finance, the State of California Controller's Office, the County Auditor-Controller of the County of San Bernardino and the Office 15 of the Chief Executive Officer of the County of San Bernardino were each properly notified prior to 16 the adoption of Oversight Board Resolution SBOB/2012-07. 17 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL 18 SERVING AS THE SUCCESSOR HOUSING AGENCY, AS FOLLOWS: 19 Section 1. Pursuant to Health & Safety Code Sections 34176(e) and 34181(c), the 20 Oversight Board found and determined that the Covenant and Deed of Trust are "housing assets" as 21 defined in Section 34176(e) and directed Successor Agency staff to transfer the Deed of Trust and the Covenant to the City in its capacity as the Successor Housing Agency. 22 Section 2. The Mayor and Common Council hereby approve the termination and full 23 reconveyance of the following instruments: (1) the Deed of Trust as described as Instrument 24 Number 19990043155 in the Official Records of the County of San Bernardino; and (2) the 25 Covenant as described as Instrument Number 19990043156 in the Official Records of the County of 26 San Bernardino. 27 Section 3. The City Manager, or designee, is hereby directed to effectuate the execution of a request for reconveyance of the Deed of Trust and termination of the Covenants and to cause 28 2 I 2012-272 1 such instruments to be recorded against the Property in the Official Records of the County of San Bernardino. 2 Section 4. This Resolution shall take effect from and after its date of adoption by this 3 Council. 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 i 2012-272 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE 2 CITY OF SAN BERNARDINO SERVING IN ITS CAPACITY AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT 3 AGENCY OF THE CITY OF SAN BERNARDINO APPROVING THE TERMINATION AND FULL RECONVEYANCE OF A RESTRICTIVE 4 COVENANT AND DEED OF TRUST RELATING TO REAL PROPERTY 5 LOCATED AT 218 EAST TEMPLE STREET, SAN BERNARDINO, CALIFORNIA 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 7 Common Council of the City of San Bernardino at a Joint regular meeting thereof, held on the 8 19th 9 day of November 2012, by the following vote,to wit: 10 Council Members: Ayes Nays Abstain Absent 11 MARQUEZ x 12 JENKINS 13 VALDIVIA x 14 SHORETT x 15 KELLEY x 16 JOHNSON x 17 MCCAMMACK x 18 19 George Mn Hanna, City Clerk,� 20 The foregoing Resolution is hereby a pp roved this Ti aA day of November > 2012. 21 22 Pa is . Morris, a 23 City an Bernardino 24 25 Approved as to Form: JAMES F. PENMAN, 26 City Attorney 27 28 By. c�.l 4