HomeMy WebLinkAbout05.M- Successor Agency RESOLUTION (ID #2623) DOC ID: 2623
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Conveyance of Property
From: Brandon Mims M/CC Meeting Date: 08/19/2013
Prepared by: Lisa Connor, (909) 663-1044
Dept: Successor Agency Ward(s): 5
Subject:
Resolution of the Mayor and Common Council of the City of San Bernardino Acting as the
Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino
Approving the Subordination of a Deed of Trust in Connection with a Refinancing of the Senior
Mortgage Relating to Real Property Located at 2474 Cheryle Court, San Bernardino, California.
(#2623)
Current Business Registration Certificate: Not Applicable
Financial Impact:
Account Budgeted Amount: <<Insert Amount>>
Account No. <<Insert Account No.»
Account Description: <<Insert Account Description
Balance as of: <<Insert Date>>
Balance after approval of this item: <<Insert Amount>>
Please note this balance does not indicate available funding. It does not include non-encumbered
reoccurring expenses or expenses incurred,but not yet processed.
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
October 17, 1994: Resolution 5409 adopted by the Community Development Commission
establishing the Mortgage Assistance Program-subsequently renamed Homebuyer's Assistance
Program.
January 9, 2012: Resolution 2012-12 adopted, confirming the City would serve as the Successor
Agency to the former Redevelopment Agency.
January 23, 2012: Resolution 2012-19 adopted, confirming the City would serve as the
Successor Housing Agency to the former Redevelopment Agency.
Background:
On October 17, 1994, the Community Development Commission of the City of San Bernardino
("Commission") approved Resolution 5409, establishing the Mortgage Assistance Program,
subsequently renamed Homebuyer's Assistance Program, which made available a limited
number of deferred payment (principal and interest) second mortgages, not-to-exceed ten percent
(10%) of the maximum permitted purchase price of$250,000. This Program was designed to
provide income-qualified families with down payment/closing cost monies necessary to secure
financing towards the purchase of single-family detached homes in the City and provided an
additional avenue for the former Redevelopment Agency of the City of San Bernardino
("Agency") to insure the availability of affordable housing to income-qualified home buyers in
the community.
Updated: 8/5/2013 by Linda Sutherland
'Packe ?g.279"°
2623
On January 9, 2012, the Mayor and Common Council adopted Resolution 2012-12 confirming
that the City of San Bernardino would serve as the "Successor Agency"to the former Agency, in
accordance with AB1X 26. On January 23, 2012, the Mayor and Common Council adopted
Resolution 2012-19 further confirming that the City would serve as the "Successor Housing
Agency" to the former Redevelopment Agency and perform the housing functions previously
performed by the Agency.
Pursuant to the requirements of state legislation providing for the dissolution and wind-down of
the former Agency, notice of the proposed resolutions have been provided to the California
Department of Finance, County Auditor-Controller, Office of the County Chief Executive
Officer, and the State Auditor-Controller.
Current Issue•
The property owner for the property located at 2474 Cheryle Court obtained assistance from the
Agency, and the property owner wishes to refinance their existing first mortgage to obtain a
lower interest rate and monthly payment. To proceed with the refinancing, the new lender and
title company require the Agency's deed of trust to be expressly subordinated to the new first
trust deed of trust. The property owner of the property listed above has submitted a
subordination request to Successor Housing Agency staff and the application has been
underwritten and approved. Presently, staff requests that the City Manager, or his/her designee,
be authorized to sign and cause to be recorded the respective subordination agreement and
associated documents which will allow the property owner to refinance their first mortgage.
City Attorney Review:
Supporting Documents:
Reso Subordination 2474 Cheryle Court (PDF)
Agreement Subordination 2474 Cheryle Court (PDF)
Updated: 8/5/2013 by Linda Sutherland "'
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1 RESOLUTION NO.
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2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA
3 BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING THE
4 SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A REFINANCING O
THE SENIOR MORTAGE RELATING TO REAL PROPERTY LOCATED AT 2474 CHERYL
5 COURT,SAN BERNARDINO,CALIFORNIA(#2623) o
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WHEREAS, on January 9, 2012,the Mayor and Common Council of the City of San Bernardin
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8 ("Council") adopted Resolution No. 2012-12 confirming that the City of San Bernardino would serve a
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9 the Successor Agency to the Redevelopment Agency ("Agency") of the City of San Bemardin
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i o ("Successor Agency") effective February 1, 2012, pursuant to AB 1 X 26 (The Redevelopment Agenc
11 Dissolution Act); and R
12 WHEREAS,on January 23,2012, the Council adopted Resolution No. 2012-19 providing for th 9
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13 City to serve as the Successor Housing Agency and.perfonn the housing functions previously performed x°
14 by the Agency;and
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WHEREAS,pursuant to Health&Safety Code Section 34181(c)of AB 1X26 the Oversight Boar 3
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is to direct the transfer of housing responsibilities, including all rights, powers, duties, obligations an d
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18 assets,to the Successor Housing Agency;and v
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19 WHEREAS,pursuant to Health &Safety Code Section 34176(e)(1)of AB 1484 the restrictions o N
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20 the use of real property such as affordability covenants entered into by the Agency are considered a °
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21 housing asset; and
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22 WHEREAS, a Deed of Trust affecting real property located at 2474 Cheryle Court, San in
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Bernardino, California ("Property") exists as of June 19, 2008, and recorded on June 27, 2008 as
24 Instrument Number 2008-0294231 in. the Official Records of the County of San Bernardino ("Deed o
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Trust");and w
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27 WHEREAS, the terms of the Deed of Trust allow the Trustor to obtain the release of the security
28 interest of the First Mortgage Lender in the Property for the purpose of a third-party lender which
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1 refinances the purchase money mortgage of the First Mortgage Lender;and
2 WHEREAS, an escrow has been opened on the Property affected by the Deed of Trust on whit
3 owners(Kyle Westbrook and Michelle Westbrook)request the subordination so that they can proceed on
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a refinance and a clear lenders title policy can be provided to the new lender of the Property;and
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WHEREAS, the Successor Housing Agency desires to confirm that the Deed of Trust is a U
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housing asset and/or housing function, and desires to authorize Successor Housing Agency staff to
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transfer all rights and interest in the Deed of Trust to the City in its capacity as the Successor Housin 1-
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10 WHEREAS, Successor Housing Agency staff desires to cause to be signed and recorded
11 subordination agreement for the purposes of causing the new third-party lender to have a security interes
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12 in the Property senior to that of the Successor Housing Agency;and c
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WHEREAS,the State of California Department of Finance, the County Auditor-Controller of the
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County of San Bernardino and the Office of the Chief Executive Officer of the County of San Bernardin N
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have been property notified prior to the adoption of this Resolution. 0
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17 NOW,THEREFORE,BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL ,
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18 OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCYv
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19 OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, AS N
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20 FOLLOWS:
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Section 1. Pursuant to Health&Safety Code Section 34176,the Successor Housing Agent `0
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to the Redevelopment Agency of the City of San Bernardino does hereby find and determine that the
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Deed of Trust is a housing asset and hereby authorizes the City Manager or his/her designee, to execute
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the Subordination Agreement (attached and incorporated herein as Exhibit "A") and cause it to be E
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recorded with the San Bernardino County Recorder. w
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27 Section 2. This Resolution shall take effect from and after its date of adoption and th
28 expiration of five business days from its transmittal to the California Department of Finance.
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I RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAIN
BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO TH
2 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING THE
3 SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A REFINANCING O
THE SENIOR MORTAGE RELATING TO REAL PROPERTY LOCATED AT 2474 CHERYL
4 COURT,SAN BERNARDINO,CALIFORNIA(42623)
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and v
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Common Council of the City of San Bernardino at a meeting thereof, held on
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the day of ,2013,by the following vote,to wit: ti
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Council Members Ayes Nays Abstain Absent 0
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MARQUEZ N
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JENKINS E-
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VALDIVIA
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14 SHORETT
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15 KELLEY
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16 JOHNSON 0
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17 MCCAMMACK
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Georgeann Hanna,City Clerk o
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The foregoing Resolution is hereby approved this day of ,2013. c
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Patrick J. Morris,Mayor 0
23 City of San Bernardino U)
Approved as to Form: x
24 James F.Penman,
City Attorney
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26 By: !/
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When recorded mail to:
City of San Bernardino,acting in its
capacity as the Successor Housing Agency
to the Redevelopment Agency of
the City of San Bernardino
300 North D Street
San Bernardino,CA 92401 O
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Owner Name: Kyle&Michelle Westbrook
2474 Cheryle Court v
San Bernardino,CA 92407 v
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SPACE ABOVE THIS LINE FOR RECORDERS USE. N
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Form of
SUBORDINATION AGREEMENT N
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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 o
INSTRUMENT. _
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This AGREEMENT, made this 19th day of August, 2013, by (Kyle Westbrook and Michelle Westbrook),
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; U
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WITNESSETH
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WHEREAS,Owner(s)did on June 19,2008,execute a Deed of Trust to Ticor Title,as trustee,covering: U
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LEGAL DESCRIPTION: All that Real Property situated in the City of San Bernardino, County of San N
Bernardino, State of California, described as: Lot 24, of Tract 13355, as per Map recorded in Book 191, C
Page(s)79 and 80 in the Office of the County Recorder of said County. .2
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Assessor's Parcel Number(s):0261-411-24-0-000 2
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to secure a Note in the sum of$69,000 dated June 19, 2008 in favor of the Redevelopment Agency of the City of j
San Bernardino first hereinafter described and hereinafter referred to as "Beneficiary", which Deed of Trust was =
recorded June 27,2008,as Instrument No.2008-0294231,Official Records of said county;
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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 Q
("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$148,014, cvo
dated ,in favor of Nations Direct Mortgage,LLC, hereinafter referred to as"Lender," Q
payable with interest and upon the terms and conditions described therein, which Deed of Trust is to be recorded
concurrently herewith;and
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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 0
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WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and L+
Successor Beneficiary is willing that the Deed of Trust securing the same shall,when recorded, constitute a lien or 0
charge upon said land which is unconditionally prior and superior to the lien or charge of the Deed of Trust first V
above mentioned. ti
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NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other y
valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to c
induce Lender to make the loan above referred to,it is hereby declared,understood and agreed as follows:
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1. That said Deed of Trust securing said Note in favor of Lender,and any renewals or extensions thereof, C
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. _
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2. That Lender would not make its loan above described without this Subordination Agreement.
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3. That this Agreement shall be the whole and only agreement with regard to the subordination of the lien M
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
s 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 0
above mentioned,which provide for the subordination of the lien or charge thereof to another Deed or U
Deeds of Trust or to another mortgage or mortgages.
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Successor Beneficiary declares,agrees and acknowledges that: U
(a) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to,nor N
has Lender represented that it will, see to the application of such proceeds by the person or persons to 0
whom Lender disburses such proceeds and any application or use of such proceeds for purposes other 0
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than those provided for in such agreement or agreements shall not defeat the subordination herein c
made in whole or in part; =a
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(b) Successor Beneficiary intentionally and unconditionally waives,relinquishes and subordinates the lien N
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 d
consideration of, this waiver, relinquishment and subordination specific loans and advances are being m
and will be make and,as part and parcel thereof,specific monetary and other obligations are being and L
will be entered into which would not be made or entered into but for said reliance upon this waiver,
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relinquishment and subordination;and
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(c) An endorsement has been placed upon the Note secured by the Deed of Trust first above mentioned t
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.
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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
r OF THE LAND.
City of San Bernardino,acting as the Successor Housing Agency to the O
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Redevelopment Agency of the City of San Bernardino m
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Allen Parker,City Manager Owner
City of San Bernardino N
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(ALL SIGNATURES MUST BE ACKNOWLEDGED) _
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IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, N
THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. o
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