HomeMy WebLinkAbout2014-336 1 RESOLUTION NO. 2014-336
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 T
4 SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A REFINANCING 0
THE SENIOR MORTGAGE RELATING TO REAL PROPERTY LOCATED AT 267 EAS
5 49TH STREET, SAN BERNARDINO,CALIFORNIA.
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WHEREAS, on January 9, 2012, the Mayor and Common Council of the City of San Bernardino
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("Council") adopted Resolution No. 2012-12 confirming that the City of San Bernardino would serve a-
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the Successor Agency to the Redevelopment Agency ("Agency") of the City of San Bernardino
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10 ("Successor Agency") effective February 1, 2012, pursuant to AB1X 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.l
14 by the Agency; and
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WHEREAS, pursuant to Health & Safety Code Section 34181(c) of AB1X26 the Oversight
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Board is to direct the transfer of housing responsibilities, including all rights, powers, duties, obligation-
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and assets, to the Successor Housing Agency; and
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19 WHEREAS, pursuant to Health & Safety Code Section 34176(e)(1) of AB1484 the restriction-
20 on 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 267 East 49th Street, Sa
23 Bernardino, California ("Property") exists as of November 6, 2008, and recorded on November 17, 200:
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as Instrument Number 2008-0500439 in the Official Records of the County of San Bernardino ("Deed o
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Trust"); and
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WHEREAS, the terms of the Deed of Trust allow the Trustor to obtain the release of the securi
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interest of the First Mortgage Lender in the Property for the purpose of a third-party lender whic
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2014-336
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 (Faith Ellis)request the subordination so that they can proceed on a refinance and a clear lender,
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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 .
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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
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9 Agency; and
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
12 in the Property senior to that of the Successor Housing Agency; and
13 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 Bernardino
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have been properly notified prior to the adoption of this Resolution.
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NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCI
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18 OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENC
19 OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, A•
2 o FOLLOWS:
21 SECTION 1. Pursuant to Health & Safety Code Section 34176, the Successor Housing Agenc
22 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 execut:
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the Subordination Agreement (attached and incorporated herein as Exhibit "A") and cause it to b
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recorded with the San Bernardino County Recorder.
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SECTION 2. This Resolution shall take effect from and after its date of adoption and the
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28 expiration of five business days from its transmittal to the California Depai lnient of Finance.
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2014-336
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 T I
SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A REFINANCING 0
3 THE SENIOR MORTGAGE RELATING TO REAL PROPERTY LOCATED AT 267 EAS
4 49TH STREET, SAN BERNARDINO, CALIFORNIA.
5
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an.
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Common Council of the City of San Bernardino at a joint regular meeting thereof, held on the 2nd day o i
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September, 2014,by the following vote, to wit:
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9 Council Members Ayes Nays Abstain Absent
10 X
MARQUEZ
11
BARRIOS X
12
VALDIVIA X
13
14 SHORETT X
15 NICKEL x
16 JOHNSON X
17 MULVIHILL X
18 J19
Georgeann .nna, City
rr N
20 The foregoing Resolution is hereby approved this c 1 day . September 4.
21
22
R. Carey Davis, ■ ayor
23 City of San Be -ardino
Approved as to Form:
24 Gary D. Saenz, City Attorney
25 By: MI`,- ' A ',
26
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2014-336
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 92418
Owner Name: Faith Ellis
267 East 49th Street
San Bernardino,CA 92404
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 2nd day of September, 2014, by(Faith Ellis), 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 November 6, 2008 to Fidelity National Title, as
trustee, covering:
LEGAL DESCRIPTION: Lot 5, Block 19 of Tract No. 1834, in the City of San Bernardino, County of San
Bernardino, State of California, as per Map recorded in Book 26, Page(s) 52, of Maps, in the Office of the
County Recorder of Said County
Assessor's Parcel Number(s): 0154-126-25-0-000
to secure a Note in the sum of$66,000 dated November 6, 2008 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 November 17, 2008 as Instrument No. 2008-0500439,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$150,115,
dated , in favor of Nationstar Mortgage LLC., dba Greenlight Loans, 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
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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
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.
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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
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.
2014-336
EXHIBIT A
LEGAL DESCRIPTION
Real property in the City of San Bernardino,County of San Bernardino, State of California,is described as follows:
LOT 5, BLOCK 19 OF TRACT NO. 1834, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN
BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 26, PAGE(S) 52, OF MAPS,
IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
APN: 0154-126-25-0-000