HomeMy WebLinkAbout05.P- Successor Agency RESOLUTION (ID #2868) DOC ID: 2868 A
CITY OF SAN BERNARDINO—REQUEST FOR COUNCIL ACTION
Conveyance of Property
From: Allen Parker M/CC Meeting Date: 01/21/2014
Prepared by: Lisa Connor, (909) 663-1044
Dept: Successor Agency Ward(s): I
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 1231 West 8Th Street, San Bernardino,
California. (#2868)
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: 1/13/2014 by Georgeann"Gigi"Hanna A P1Gk ', -
5.P
2868
1 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 1231 West 8th Street 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 2868 (PDF)
Agmt-Soliman 1231 W 8Th Street (DOCX)
s
i
Updated: 1/13/2014 by Georgeann"Gigi"Hanna A Packet Pg.229
S:P.a
1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
3 BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO TH
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING TH
4 SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A REFINANCING O
THE SENIOR MORTAGE RELATING TO REAL PROPERTY LOCATED AT 1231 WEST 8T
5 STREET,SAN BERNARDINO,CALIFORNIA
6
WHEREAS, on January 9, 2012, the Mayor and Common Council of the City of San Bernardin
7
8 ("Council") adopted Resolution No. 201242 confirming that the City of San Bernardino would serve as
9 the Successor Agency to the Redevelopment Agency ("Agency") of the City of San Bernardin
00
10 ("Successor Agency") effective February 1, 2012, pursuant to AB1X 26 (The Redevelopment Agency 3:
11 Dissolution Act);and "'
N
r
N
C
12 WHEREAS, on January 23, 2012,the Council adopted Resolution No. 2012-19 providing for the 2
co
13 City to serve as the Successor Housing Agency and perform the housing functions previously performed
14 by the Agency; and ~
a�
1-5 'c rn
WHEREAS,pursuant to Health&Safety Code Section 3418l(c)of ABIX26 the Oversight Boarc o
16 =
is to direct the transfer of housing responsibilities, including all rights, powers, duties, obligations an coo
17 00
assets,to the Successor Housing Agency;and
18 00 m
Go
WHEREAS,pursuant to Health&Safety Code Section 34176(e)(1)of AB 1484 the restrictions o `V
19 p
N
L
20 the use of real property such as affordability covenants entered into by the Agency are considered a
c
21 housing asset;and d
E
t
R
22 WHEREAS, a Deed of Trust affecting real property located at 1231 West 8"' Street, SanQ
23 Bernardino, California ("Property") exists as of August 30, 2004, and recorded on October 1, 2004 as
24
Instrument Number 2004-0717509 in the Official Records of the County of San Bernardino ("Deed o
25
Trust"); and
26
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
0
1
Packet Pg:230.=
{
i
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 whic
3 owners(Samuel A Soliman) request the subordination so that they can proceed on a refinance and a Ilea
4
lenders title policy can be provided to the new lender of the Property; and
5
6 WHEREAS, the Successor Housing Agency desires to confirm that the Deed of Trust is
housing asset and/or housing function, and desires to authorize Successor Housing Agency staff t
8 transfer all rights and interest in the Deed of Trust to the City in its capacity as the Successor Housin
Cn
9 Agency;and
00
10 WHEREAS, Successor Housing Agency staff desires to cause to be signed and recorded
M
N
11 subordination agreement for the purposes of causing the new third-party lender to have a security interes N
12 in the Property senior to that of the Successor Housing Agency;and
13 N
WHEREAS,the State of California Department of Finance,the County Auditor-Controller of theL
14 I-
County of San Bernardino and the Office of the Chief Executive Officer of the County of San Bernardino
15 y
have been property notified prior to the adoption of this Resolution.
16 =
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL O co
17 00
18 THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY OF THE
00
N
19 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO,AS FOLLOWS: N
L
20 Section 1. Pursuant to Health&Safety Code Section 34176,the Successor Housing Agency
d
21 to the Redevelopment Agency of the City of San Bernardino does hereby find and detennine that the
t
R
22 Deed of Trust is a housing asset and hereby authorizes the City Manager or his/her designee, to executeQ
23
the Subordination Agreement (attached and incorporated herein as Exhibit "A") and cause it to be
24
recorded with the San Bernardino County Recorder.
25
26 Section 2. This Resolution shall take effect from and after its date of adoption and the
27 expiration of five business days from its transmittal to the California Department of Finance.
28
2
Packeit Pg.231
5.P.a
1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA
BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE
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 1231 WEST 8T
4 STREET,SAN BERNARDINO,CALIFORNIA(#2868)
5
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an
6
7 Common Council of the City of San Bernardino at a meeting thereof, held o.
8 the day of , 2014,by the following vote, to wit:
9
Council Members Ayes
Nays Abstain ~
Absent 00
10 'S
MARQUEZ
M
11
JENKINS w
12 0
.2
13 VALDIVIA N
�a
c
14 SHORETT
as
5 VACANT y
0
16 JOHNSON
x
00
W
17 MULVIHILL N
18 00
co
w
N
19 0
N
20 Georgeann Hanna,City Clerk
The foregoing Resolution is hereby approved this day of ,2014. m
21 E
U
22
r
Patrick J. Morris, Mayor a
23 Approved as to Form: City of San Bernardino
24 Gary D. Saenz,
City Attorney
25
26 By
27
t 28
1
3
packet pg 232
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
Owner Name: Samuel A Soliman N
1231 West 8`h Street
San Bernardino,CA 92411
SPACE ABOVE THIS LINE FOR RECORDERS USE. cl
N
r
Form of c
SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY a
INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY
INSTRUMENT. o
This AGREEMENT, made this 21st day of January, 2013, by (Samuel A. Soliman), Owner of the land co
hereinafter described and hereinafter referred to as"Owner,"and the City of San Bernardino,acting in its capacity as W
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; y
m
L
WITNESSETH to
h
WHEREAS,Owner(s)did on August 30,2004,execute a Deed of Trust to First American Title Company, as °O
trustee,covering:
M
LEGAL DESCRIPTION: That portion of Block 18 of Rancho San Bernardino, in the City of San
Bernardino, County of San Bernardino, State of California, as per Plat recorded in Book 7 of Maps Page 2,
Records of Said County,described as follows: Beginning at a point 30 feet South and 488.33 feet east of the E
northwest corner of Lot 9 Block 18; thence South 142.54 feet; thence East 44.39 feet; thence North 142.54 �o
feet;thence West 44.39 feet to the point of beginning.
E
rn
Assessor's Parcel Number(s): 0139-291-10-0-000 Q
a:
c
to secure a Note in the sum of$168,800 dated August 30,2004 in favor of the Redevelopment Agency of the City of E
San Bernardino first hereinafter described and hereinafter referred to as "Beneficiary", which Deed of Trust was
recorded October 1,2004,as Instrument No.2004-0717509,Official Records of said county;
Q
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$146,698,
dated in favor of Nationastar Mortgage, LLC, hereinafter referred to as "Lender,"
Packet Pg,233
payable with interest and upon the terms and conditions described therein, which Deed of Trust is to be recorded
concurrently herewith;and
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
H
WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and 00
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 N
above mentioned.
C
NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other 0
valuable consideration,the receipt and sufficiency of which consideration is hereby acknowledged, and in order to U
induce Lender to make the loan above referred to,it is hereby declared,understood and agreed as follows: _
c�
L
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 C
and superior to the lien or charge or the Deed of Trust first above mentioned. �
0
z
2. That Lender would not make its loan above described without this Subordination Agreement.
00
3. That this Agreement shall be the whole and only agreement with regard to the subordination of the lien 0
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 w
priority between the Deeds of Trust hereinbefore specifically described,any prior agreement as to such N
subordination including,but not limited to,those provisions,if any,contained in the Deed of Trust first M
above mentioned,which provide for the subordination of the lien or charge thereof to another Deed or 00
Deeds of Trust or to another mortgage or mortgages. 3:
M
Successor Beneficiary declares,agrees and acknowledges that: N
c
(a) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to,nor t°
E
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 cn
than those provided for in such agreement or agreements shall not defeat the subordination herein E
made in whole or in part;
Q
(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 E
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 r
and will be make and,as part and parcel thereof,specific monetary and other obligations are being and Q
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.
Packet Pg.234
5.P.b
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
h
Allen Parker,City Manager Owner 00
City of San Bernardino
T
M
N
r
Owner
0
(ALL SIGNATURES MUST BE ACKNOWLEDGED)
N
C
R
L
IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, ~
a�
THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO.
.y
7
O
2
00
to
00
O
L
V!
co
r
M
N
r
C
t4
E
.O
N
E
Q
C
d
E
U
R
w+
Q
Packet Pg. 235