HomeMy WebLinkAbout05.Q- Successor Agency 5.Q
RESOLUTION (ID # 3420) DOC ID: 3420
.., CITY OF SAN BERNARDINO —REQUEST FOR COUNCIL ACTION
Conveyance of Property
.r`
From: Lisa Connor M/CC Meeting Date: 08/18/2014
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 2667 Irvington Avenue, San Bernardino,
California. (#3420)
Current Business Registration Certificate: Not Applicable
Financial Impact:
Account Budgeted Amount: «Inert 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.
June 4, 2007, the Community Development Commission approved a programmatic change in the
Homebuyer Assistance Program to increase the down payment assistance for up to a maximum of
30%of the maximum purchase price of$250,000.
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. 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
Updated: 8/11/2014 b Jolen E ri Packet Pg. 260
I P Y
a E.G der
5.Q
3420
Bernardino ("Agency")to ensure the availability of affordable housing to income-qualified home
buyers in the community.
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 2667 Irvington Avenue 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:
This Item Has Been Reviewed and Approved as to Form by the City Attorney's Office. JEG
Supporting Documents:
Reso Subordination 2667 Irvington Ave (DOCX)
Subordination Agmt-2667 Irvington Ave (DOCX)
I
Updated: 8/11/2014 b Jolena E.Grider Packet Pg. 261
P Y
5.Q.a
1 RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA
BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE
3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING THE
CU
4 SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A REFINANCING OF
THE SENIOR MORTGAGE RELATING TO REAL PROPERTY LOCATED AT 266
5 IRVINGTON AVENUE, SAN BERNARDINO,CALIFORNIA
u�
6
WHEREAS, on January 9,2012,the Mayor and Common Council of the City of San Bernardino
7 '
Q
("Council") adopted Resolution No. 2012-12 confirming that the City of San Bernardino would serve as
8 0
9 the Successor Agency to the Redevelopment Agency ("Agency") of the City of San Bernardin
to ("Successor Agency") effective February 1, 2012, pursuant to AB1X 26 (The Redevelopment Agency
cv
11 Dissolution Act); and
O
12 WHEREAS, on January 23,2012,the Council adopted Resolution No. 2012-19 providing for th
_
13 City to serve as the Successor Housing Agency and perform the housing functions previously performed
14 by the Agency; and U_—,
15 0
WHEREAS, pursuant to Health & Safety Code Section 34181(c) of AB 1 X26 the Oversigh
16 N
Board is to direct the transfer of housing responsibilities, including all rights, powers, duties, obligationsM
17
W
and assets,to the Successor Housing Agency; and '
18 Q
_
19 WHEREAS, pursuant to Health & Safety Code Section 34176(e)(1) of AB1484 the restriction as
20 on the use of real property such as affordability covenants entered into by the Agency are considered
co
21 housing asset; and N
_
O
22 WHEREAS, a Deed of Trust affecting real property located at 2667 Irvington Avenue, Sana
_
23
Bernardino, California ("Property") exists as of June 19, 2008, and recorded on July 16, 2008 a o
.Q
24 n
Instrument Number 2008-0323074 in the Official Records of the County of San Bernardino ("Deed o 0
25 aNi
Trust"); and
26 c
WHEREAS, the terms of the Deed of Trust allow the Trustor to obtain the release of the security E
27
U
28 interest of the First Mortgage Lender in the Property for the purpose of a third-party lender whichQ
1
Packet Pg. 262
S.Q.a
(low 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 which
E
3 owners (Juan C. and Maria L. Hernandez) request the subordination so that they can proceed on a 41
CU
c
4
refinance and a clear lenders title policy can be provided to the new lender of the Property; and o
WHEREAS, the Successor Housing Agency desires to confirm that the Deed of Trust is a Cn
6
housing asset and/or housing function, and desires to authorize Successor Housing Agency staff to
7 Q
8 transfer all rights and interest in the Deed of Trust to the City in its capacity as the Successor Housingo
a�
c
9 Agency; and
r-
10 WHEREAS, Successor Housing Agency staff desires to cause to be signed and recorded N
e
11 subordination agreement for the purposes of causing the new third-party lender to have a security interesl c
0
12 in the Property senior to that of the Successor Housing Agency; and N
c
13 WHEREAS,the State of California Department of Finance,the County Auditor-Controller of the
County of San Bernardino and the Office of the Chief Executive Officer of the County of San Bernardino U)
15 0
have been properly notified prior to the adoption of this Resolution.
16 0
N
17 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCILM
w
18 OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCYQ
c
0
19 OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, A
20 FOLLOWS:
ti
cfl
21 Section 1. Pursuant to Health &Safety Code Section 34176,the Successor Housing Agency =
0
22 to the Redevelopment Agency of the City of San Bernardino does hereby find and determine that the
23
Deed of Trust is a housing asset and hereby authorizes the City Manager or his/her designee, to execute $°
24 )
the Subordination Agreement (attached and incorporated herein as Exhibit "A") and cause it to be 0
25 CD
recorded with the San Bernardino County Recorder.
26 c
a�
Section 2. This Resolution shall take effect from and after its date of adoption and the s
27 V
28 expiration of five business days from its transmittal to the California Department of Finance. Q
2
Packet Pg. 263
S.Q.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
SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A REFINANCING O
3 THE SENIOR MORTGAGE RELATING TO REAL PROPERTY LOCATED AT 266
4 IRVINGTON AVENUE, SAN BERNARDINO,CALIFORNIA =_
O
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an en
6 m
Common Council of the City of San Bernardino at a meeting thereof, held on
7 >
the day of ,2014,by the following vote,to wit:
8 0
c
9 Council Members Ayes Nays Abstain Absent
10 CCo
MARQUEZ C"
e
11 N
BARRIOS
12 u
13 VALDIVIA
L
14 SHORETT
C .N
15 NICKEL 0
16 JOHNSON N
rr
17 MULVIHILL .�
18 Q
0
19 rn
Georgeann Hanna, City Clerk S
20 it
The foregoing Resolution is hereby approved this day of 2014.
21 N
C
O
22
R. Carey Davis,Mayor c
23 City of San Bernardino
Approved as to Form: 0
24 Gary D. Saenz, City Attorney
O
25
By:
26 c
m
E
27
U
28 Q
3
Packet Pg. 264
5.4.b
When recorded mail to:
City of San Bernardino,acting in its
capacity as the Successor Housing Agency
to the Redevelopment Agency of o
the City of San Bernardino =
300 North D Street
San Bernardino,CA 92418 O
U)
a>
Owner Name: Juan and Maria Hernandez
c
2667 Irvington Avenue >
San Bernardino,CA 92407 <
c
0
SPACE ABOVE THIS LINE FOR RECORDERS USE.
:
Form of o
SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY
INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER o
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY
c
INSTRUMENT. F-
This AGREEMENT,made this 18th day of August,2014,by(Juan C and Maria L Hernandez), Owner of the
land hereinafter described and hereinafter referred to as "Owner," and the City of San Bernardino, acting in its o
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; N
v
WITNESSETH
as
WHEREAS,Owner(s) did execute a Deed of Trust,dated June 19,2008 to Fidelity National Title,as trustee,
c
covering: p
c
LEGAL DESCRIPTION: Lot 3 of Tract No. 10186, in the City of San Bernardino, County of San
Bernardino, State of California, as per Map on file in Book 147, Page(s) 83 and 84, in the Office of the
County Recorder of San Bernardino County
to
N
Assessor's Parcel Number(s):0261-24-137-0000
to secure a Note in the sum of$67,770 dated June 19, 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 July 16,2008 as Instrument No.2008-0323074,Official Records of said county;
WHEREAS, all rights and obligations of the Beneficiary have since been transferred to the City of San O
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;
E
WHEREAS, Owner has executed, or is about to execute, a Deed of Trust and Note in the sum of$154,650, v
dated ,in favor of Bank of America,N.A.,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
Packet Pg. 265
5.Q.b
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
0
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 �o
charge of the Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor of Lender;and
Co
d
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 d
above mentioned. c o
a�
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:
co
N
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. v 0
2. That Lender would not make its loan above described without this Subordination Agreement.
a
r
3. That this Agreement shall be the whole and only agreement with regard to the subordination of the lien IM
or charge of the Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor N
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 M
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.
m
Successor Beneficiary declares,agrees and acknowledges that: Q
C
0
(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 L
than those provided for in such agreement or agreements shall not defeat the subordination herein
to
made in whole or in part; to
m
N
(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 Q
the Deed of Trust in favor of Lender above referred to and understands that in reliance upon, and in o
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 =
will be entered into which would not be made or entered into but for said reliance upon this waiver, o
relinquishment and subordination;and
(c) An endorsement has been placed upon the Note secured by the Deed of Trust first above mentioned c
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.
U
f6
Q
Packet Pg. 266
5.Q.b
4
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 C
OF THE LAND.
L
City of San Bernardino,acting as the Successor Housing Agency to the 0
Redevelopment Agency of the City of San Bernardino
N
(D
c
d
Allen Parker,City Manager Owner
City of San Bernardino
Owner
(ALL SIGNATURES MUST BE ACKNOWLEDGED) N
0
c
O
IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT,
THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. N
c
L
H
c
N
O
N
M
Q
C
O
.r
C
.y
L
ti
co
N
e
E
Q
O
R
C
L
O
3
N
C
N
L
V
Packet Pg. 267
EXHIBIT A
LEGAL DESCRIPTION
c
2
Real property in the City of San Bernardino,County of San Bernardino, State of California,described as follows: _
a
L
LOT 13 OF TRACT NO. 15228, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, O
STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 316, PAGES 15 THROUGH 16 OF MAPS, z
RECORDS OF SAID COUNTY.
EXCEPTING THEREFROM ALL OIL, GAS, OTHER HYDROCARBONS AND KINDRED SUBSTANCES >
LYING BELOW A DEPTH OF 500 FEET, BUT WITHOUT THE RIGHT OF SURFACE ENTRY, AS Q
CONVEYED TO NATIONAL RESOURCES EQUITY CORPORATION,A CALIFORNIA CORPORATION,BY o
DEED RECORDED OCTOBER 20, 1969,IN BOOK 7323,PAGE 356,OFFICIAL RECORDS.
APN: 0261-721-13-0-000
r.
ca
N
N
_
O
V
R
V1
_
«f
LLL
r
w
_
T�
Y/` 2
Q
N
M
N
Q
_
O
_
L
t-
t0
N
.S
Ci
Q
ccto
_
E
L
O
Woe
_
u
Packet Pg. 268