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HomeMy WebLinkAbout2013-199 1 RESOLUTION NO. 2013-199 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO TH 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING TH 4 SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A REFINANCING 0 THE SENIOR MORTAGE RELATING TO REAL PROPERTY LOCATED AT 2764 G STREET 5 SAN BERNARDINO,CALIFORNIA. 6 WHEREAS, on January 9, 2012, the Mayor and Common Council of the City of San Bernardino 7 ("Council") adopted Resolution No. 2012-12 confirming that the City of San Bernardino would serve a- 8 the Successor Agency to the Redevelopment Agency ("Agency") of the City of San Bernardino 9 10 ("Successor Agency") effective February 1, 2012, pursuant to AB I X 26 (The Redevelopment Agenc 11 Dissolution Act); and 12 WHEREAS, on January 23, 2012, the Council adopted Resolution No. 2012-19 providing for the 13 City to serve as the Successor Housing Agency and perform the housing functions previously performe. 14 by the Agency; and 15 WHEREAS, pursuant to Health &Safety Code Section 34181(c)of AB 1 X26 the Oversight Boar. 16 is to direct the transfer of housing responsibilities, including all rights, powers, duties, obligations an.! 17 assets,to the Successor Housing Agency; and 18 WHEREAS, pursuant to Health &Safety Code Section 34176(e)(1)of AB 1484 the restrictions of 19 20 the use of real property such as affordability covenants entered into by the Agency are considered . 21 housing asset; and 22 WHEREAS, a Deed of Trust affecting real property located at 2764 G Street, San Bernardino 23 California ("Property") exists as of January 18, 2009, and recorded on February 2, 2009 as Instrumen 24 Number 2009-0043996 in the Official Records of the County of San Bernardino("Deed of Trust"); and 25 WHEREAS, the terms of the Deed of Trust allow the Trustor to obtain the release of the securit 26 interest of the First Mortgage Lender in the Property for the purpose of a third-party lender whic 27 refinances the purchase money mortgage of the First Mortgage Lender; and 28 1 2013-199 1 WHEREAS, an escrow has been opened on the Property affected by the Deed of Trust on whic 2 owners (Dovie Robinson) request the subordination so that they can proceed on a refinance and a clea 3 lenders title policy can be provided to the new lender of the Property; and 4 WHEREAS, the Successor Housing Agency desires to confirm that the Deed of Trust is 5 housing asset and/or housing function, and desires to authorize Successor Housing Agency staff to 6 transfer all rights and interest in the Deed of Trust to the City in its capacity as the Successor Housin: 7 8 Agency; and 9 WHEREAS, Successor Housing Agency staff desires to cause to be signed and recorded . 10 subordination agreement for the purposes of causing the new third-party lender to have a security interesi 11 in the Property senior to that of the Successor Housing Agency; and 12 WHEREAS, the State of California Department of Finance, the County Auditor-Controller of the 13 County of San Bernardino and the Office of the Chief Executive Officer of the County of San Bernardino 14 have been property notified prior to the adoption of this Resolution. 15 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL 0 16 THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY OF TH 17 18 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: 19 Section 1. Pursuant to Health & Safely Code Section 34176, the Successor Housing Agenc 20 to the Redevelopment Agency of the City of San Bernardino does hereby find and determine that the 21 Deed of Trust is a housing asset and hereby authorizes the City Manager or his/her designee, to execut: 22 the Subordination Agreement (attached and incorporated herein as Exhibit "A") and cause it to b: 23 recorded with the San Bernardino County Recorder. 24 Section 2. This Resolution shall take effect from and after its date of adoption and the 25 expiration of five business days from its transmittal to the California Department of Finance. 26 /// 27 28 2 2013-199 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO TH 2 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING TH SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A REFINANCING 0 3 THE SENIOR MORTAGE RELATING TO REAL PROPERTY LOCATED AT 2764 G STREET 4 SAN BERNARDINO,CALIFORNIA. 5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an. 6 joint adjourned reg �e'tin thereof held o Common Council of the City of San Bernardino at a g 7 the 1st day of July , 2013, by the following vote,to wit: 8 9 Council Members Ayes Nays Abstain Absent 10 MARQUEZ X 11 JENKINS X 12 VALDIVIA X 13 14 SHORETT X 15 KELLEY X 16 JOHNSON X 17 MCCAMMACK X 18 A 19 eor eanni .nn., City CI r ��u- -- 20 The foregoing Resolution is hereby approved this day of July , 2013. 21 22 1`. -_ 'atric J. Morris, . • o' 23 San Bernardino Approved as to Form: 24 JAMES F. PENMAN, City Attorney 25 / By: ./ . 26 27 28 3 2013-199 When recorded mail to: City of San Bernardino,acting as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino 300 North D Street San Bernardino,CA 92418 Owner Name: Dovie Robinson 2764 North G Street San Bernardino,CA 92405 SPACE ABOVE THIS LINE FOR RECORDERS USE. Form of SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. This AGREEMENT, made this 1st day of July, 2013, by Dovie Robinson, Owner of the land hereinafter described and hereinafter referred to as "Owner," and the City of San Bernardino, acting in its capacity as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino, present owner and holder of the Deed of Trust and Note; WITNESSETH WHEREAS, Owner(s) did execute a Deed of Trust, dated January 18, 2009 of the Redevelopment Agency of the City of San Bernardino, as trustee,covering: LEGAL DESCRIPTION: Lot 5, Shandin Place, Tract No. 1744, in the City of San Bernardino, County of San Bernardino, State of California, as per map recorded in Book 29 of maps,page 1,records of said county Assessor's Parcel Number(s): 0149-102-23-0000 to secure a Note in the sum of$38,000.00 dated January 18, 2009 in favor of the Redevelopment Agency of the City of San Bernardino first hereinafter described and hereinafter referred to as "Beneficiary", which Deed of Trust was recorded February 2,2009,as Instrument No. 2009-0043996,Official Records of said county; WHEREAS, all rights and obligations of the Beneficiary have since been transferred to the City of San Bernardino as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino ("Successor Beneficiary") pursuant to Mayor and Common Council Resolution No. 2012-19 dated January 23, 2012; WHEREAS, Owner has executed, or is about to execute, a Deed of Trust and Note in the sum of$151,000, dated , in favor of Mountain West Financial Corporation hereinafter referred to as "Lender," payable with interest and upon the terms and conditions described therein, which Deed of Trust is to be recorded concurrently herewith;and 2013-199 WHEREAS,it is a condition precedent to obtaining said loan that said Deed of Trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land herein before described, prior and superior to the lien or charge of the Deed of Trust first above mentioned;and WHEREAS, lender is willing to make said loan provided the Deed of Trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the Deed of Trust first above mentioned and provided that Successor Beneficiary will specifically and unconditionally subordinate the lien or charge of the Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor of Lender; and WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Successor Beneficiary is willing that the Deed of Trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the Deed of Trust first above mentioned. NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared,understood and agreed as follows: 1. That said Deed of Trust securing said Note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein described,prior and superior to the lien or charge or the Deed of Trust first above mentioned. 2. That Lender would not make its loan above described without this Subordination Agreement. 3. That this Agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor of the lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the Deeds of Trust hereinbefore specifically described, any prior agreement as to such subordination including,but not limited to,those provisions, if any,contained in the Deed of Trust first above mentioned, which provide for the subordination of the lien or charge thereof to another Deed or Deeds of Trust or to another mortgage or mortgages. Successor Beneficiary declares,agrees and acknowledges that: (a) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; (b) Successor Beneficiary intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the Deed of Trust first above mentioned in favor of the lien or charge upon said land of the Deed of Trust in favor of Lender above referred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be make and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (c) An endorsement has been placed upon the Note secured by the Deed of Trust first above mentioned that said Deed of Trust has by this instrument been subordinated to the lien or charge of the Deed of Trust in favor or Lender above referred to. 2013-199 NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND. City of San Bernardino, acting as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino Allen Parker, City Manager Owner City of San Bernardino Owner (ALL SIGNATURES MUST BE ACKNOWLEDGED) IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO.