HomeMy WebLinkAbout05.P- Approval of Subordination of a Deed of Trust - Refinancing Senior Mortage Relating to Real Property 5.P
RESOLUTION (ID # 4281) DOC ID: 4281 B
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Conveyance of Property
From: Lisa Connor M/CC Meeting Date: 02/16/2016
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 3180 West
Garfield Street, San Bernardino, California. (#4281)
Current Business Registration Certificate: Not Applicable
Financial Impact:
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
Home buyer's Assistance Program.
June 4, 2007, the Community Development Commission approved a programmatic
change in the Home buyer Assistance Program to increase the down payment
assistance for up to a maximum of 30% of the maximum purchase price of$250,000.
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 Home buyer'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.
On January 9, 2012, the Mayor and Common Council adopted Resolution 2012-12
Updated: 2/10/2016 by Linda Sutherland B I Packet Pg. 265
4281
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:
Each of the property owners for the properties located at 3180 Garfield Street obtained
assistance from the Agency, and each 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 lenders and title companies require the Agency's deeds of trust to
be expressly subordinated to the new first trust deed of trust. Each of the property
owners of the properties listed above have submitted a subordination request to
Successor Housing Agency staff and each application has been underwritten and
approved. Presently, staff requests that the City Manager, or his/her designated
person, be authorized to sign and cause to be recorded the respective subordination
agreements and associated documents which will allow the property owners to
refinance their first mortgages.
City Attorney Review:
Supporting Documents:
Reso Subordination 3180 Garfield St (DOCX)
Agmt Subordination Tan (DOCX)
Updated: 2/10/2016 by Linda Sutherland B Packet Pg. 266
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 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 MORTGAGE RELATING TO REAL PROPERTY LOCATED AT 3180 WEST
5 GARFIELD 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 as 0
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9 the Successor Agency to the Redevelopment Agency ("Agency") of the City of San BernardinoM
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10 ("Successor Agency") effective February 1, 2012, pursuant to AB1X 26 (The Redevelopment Agent o
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11 Dissolution Act); and
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12 WHEREAS,on January 23, 2012,the Council adopted Resolution No. 2012-19 providing for the
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13 City to serve as the Successor Housing Agency and perform the housing functions previously performed o
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14 by the Agency; and
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15 WHEREAS, pursuant to Health & Safety Code Section 34181(c) of AB1X26 the Oversigh
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Board is to direct the transfer of housing responsibilities, including all rights, powers, duties, obligations
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18 and assets,to the Successor Housing Agency; and c
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19 WHEREAS, pursuant to Health & Safety Code Section 34176(e)(1) of AB1484 the restriction M
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20 on the use of real property such as affordability covenants entered into by the Agency are considered a a
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21 housing asset; and o
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22 WHEREAS, a Deed of Trust affecting real property located at 3180 West Garfield Street, San o
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Bernardino, California ("Property") exists as of August 10, 2009, and recorded on August 31, 2009 a x
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Instrument Number 2009-0382317 in the Official Records of the County of San Bernardino ("Deed of E
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Trust"); and w
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WHEREAS,the terms of the Deed of Trust allow the Trustor to obtain the release of the security
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28 interest of the First Mortgage Lender in the Property for the purpose of a third-party lender whit
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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 which
3 owners (Jeffrey Tan)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 a N
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7 housing asset and/or housing function, and desires to authorize Successor Housing Agency staff to
transfer all rights and interest in the Deed of Trust to the City in its capacity as the Successor Housing
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10 WHEREAS, Successor Housing Agency staff desires to cause to be signed and recorded °
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11 subordination agreement for the purposes of causing the new third-party lender to have a security interes R
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in the Property senior to that of the Successor Housing Agency; and
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WHEREAS,the State of California Department of Finance,the County Auditor-Controller of the 0
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County of San Bernardino and the Office of the Chief Executive Officer of the County of San Bernardin
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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 COUNCILd
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18 OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY c
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19 OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, A M
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20 FOLLOWS:
21 Section 1. Pursuant to Health &Safety Code Section 34176, the Successor Housing Agency
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22 to the Redevelopment Agency of the City of San Bernardino does hereby find and determine that the 0
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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
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recorded with the San Bernardino County Recorder. a
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27 Section 2. This Resolution shall take effect from and after its date of adoption and the
28 expiration of five business days from its transmittal to the California Department of Finance.
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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 MORTGAGE RELATING TO REAL PROPERTY LOCATED AT 3180 WEST
4 GARFIELD STREET,SAN BERNARDINO, CALIFORNIA(#4281)
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an r
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Common Council of the City of San Bernardino at a meeting thereof, held o 2
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the day of ,2016,by the following vote,to wit:
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9 Council Members Ayes Nays Abstain Absent
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MARQUEZ
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BARRIOS
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VALDIVIA
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14 SHORETT
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15 NICKEL 04
16 JOHNSON y
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17 MULVIHILL
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Georgeann Hanna, City Clerk c
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The foregoing Resolution is hereby approved this day of ,2016. 5
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R. Carey Davis,Mayor 0
23 City of San Bernardino w
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Approved as to Form:
24 Gary D. Saenz, City Attorney
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By: w
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Pa6ket Pg:269
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: Jeffrey Tan
3180 West Garfield Street
San Bernardino,CA 92407 N
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SPACE ABOVE THIS LINE FOR RECORDERS USE. `-
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Form of
SUBORDINATION AGREEMENT M
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NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY o
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 16th day of February, 2016, by(Jeffrey Tan), Owner of the land hereinafter
described and hereinafter referred to as "Owner," and the City of San Bernardino, acting in its capacity as the o
Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino,present owner and holder =
of the Deed of Trust and Note;
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WITNESSETH :'
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WHEREAS, Owner(s) did on August 10, 2009, execute a Deed of Trust to California Title Company, a
California Corporation,as trustee,covering: _
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LEGAL DESCRIPTION: Lot 33, Tract No. 14604, as per Plat recorded in Book 293 of Maps, Pages 1 c
through 3,Records of said County. APN#0261-611-33-0000
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to secure a Note in the sum of$45,800 dated August 10,2009,in favor of the Redevelopment Agency of the City of U)
San Bernardino first hereinafter described and hereinafter referred to as 'Beneficiary", which Deed of Trust was
recorded August 31,2009,as Instrument No.2009-0382317,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 E
("Successor Beneficiary") pursuant to Mayor and Common Council Resolution No. 2012-19 dated January 23, _
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2012;
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WHEREAS, Owner has executed, or is about to execute, a Deed of Trust and Note in the sum of not to
exceed $179,000, dated , in favor of Wells Fargo Bank,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
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
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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 y
valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to P
induce Lender to make the loan above referred to,it is hereby declared,understood and agreed as follows: to
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1. That said Deed of Trust securing said Note in favor of Lender,and any renewals or extensions thereof, r-
shall unconditionally be and remain at all times a lien or charge on the property therein described,prior Ca
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and superior to the lien or charge or the Deed of Trust first above mentioned. c
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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 0
or charge of the Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor
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of the lender above referred to and shall supersede and cancel, but only insofar as would affect the c
priority between the Deeds of Trust hereinbefore specifically described,any prior agreement as to such ;a
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. U)
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Successor Beneficiary declares,agrees and acknowledges that:
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(a) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to,nor C14
has Lender represented that it will, see to the application of such proceeds by the person or persons to C
whom Lender disburses such proceeds and any application or use of such proceeds for purposes other H
than those provided for in such agreement or agreements shall not defeat the subordination herein C
made in whole or in part; 0
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(b) Successor Beneficiary intentionally and unconditionally waives,relinquishes and subordinates the lien Ta
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or charge of the Deed of Trust first above mentioned in favor of the lien or charge upon said land of 0
the Deed of Trust in favor of Lender above referred to and understands that in reliance upon, and in M
consideration of, this waiver, relinquishment and subordination specific loans and advances are being y
and will be make and,as part and parcel thereof,specific monetary and other obligations are being and a�
will be entered into which would not be made or entered into but for said reliance upon this waiver, Q
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 s
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. Q
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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
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City Manager Owner
City of San Bernardino y
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Owner `°
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(ALL SIGNATURES MUST BE ACKNOWLEDGED) 00
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IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, q
THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO.
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