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HomeMy WebLinkAbout05.K- Deed of Trust - Refinancing the Senior Mortgage Relating to Real Property 5.K RESOLUTION (ID # 4246) DOC ID: 4246 B CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Conveyance of Property From: Lisa Connor M/CC Meeting Date: 01/19/2016 Prepared by: Lisa Connor, (909) 663- 1044 Dept: Successor Agency Ward(s): 7 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 1555 East Lynwood Drive, San Bernardino, California. (#4246) 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 Homebuyer's Assistance Program. 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. 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. On January 9, 2012, the Mayor and Common Council adopted Resolution 2012-12 Updated: 1/12/2016 by Georgeann "Gigi" Hanna B I Packet Pg. 271 5.K . 4246 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 1555 East Lynwood Drive 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 designee, 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 1555 Lynwood (DOCX) Agmt Subordination Siegel(DOCX) Q Updated: 1/12/2016 by Georgeann "Gigi" Hanna B Packet Po,272 1 RESOLUTION NO. 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 MORTGAGE RELATING TO REAL PROPERTY LOCATED AT 1555 EAST 5 LYNWOOD DR,SAN BERNARDINO,CALIFORNIA 6 0 WHEREAS, on January 9, 2012,the Mayor and Common Council of the City of San Bernardino 0 7 = ("Council") adopted Resolution No. 2012-12 confirming that the City of San Bernardino would serve as 8 Ln 9 the Successor Agency to the Redevelopment Agency ("Agency") of the City of San Bernardino r N 10 ("Successor Agency") effective February 1, 2012, pursuant to ABIX 26 (The Redevelopment Agency c 11 Dissolution Act); and N C R L 12 WHEREAS,on January 23,2012,the Council adopted Resolution No. 2012-19 providing for th E' a� S 13 City to serve as the Successor Housing Agency and perform the housing functions previously performed M 0 14 by the Agency; and to 14 15 WHEREAS, pursuant to Health & Safety Code Section 34181(c) of ABIX26 the Oversight 16 0 0 Board is to direct the transfer of housing responsibilities, including all rights, powers, duties, obligations 0 17 = 18 and assets,to the Successor Housing Agency; and Ln Lo 19 WHEREAS, pursuant to Health & Safety Code Section 34176(e)(1) of AB1484 the restriction 0 20 on the use of real property such as affordability covenants entered into by the Agency are considered c �a 21 housing asset; and 0 22 WHEREAS, a Deed of Trust affecting real property located at 1555 East Lynwood Drive, San o W d 23 Bernardino, California("Property") exists as of December 5, 2008, and recorded on February 6, 2009, as c 24 m Instrument Number 2009-0053748 in the Official Records of the County of San Bernardino ("Deed of E s 25 ca Trust"); and 26 Q 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 1 Packet Pg. 273 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 (Renee L. Siegel) request the subordination so that they can proceed on a refinance and a cleat 4 lenders title policy can be provided to the new lender of the Property; and 5 >+ WHEREAS, the Successor Housing Agency desires to confirm that the Deed of Trust is 6 0 7 housing asset and/or housing function, and desires to authorize Successor Housing Agency staff to 0 c e transfer all rights and interest in the Deed of Trust to the City in its capacity as the Successor Housing _j 9 Agency; and 17 U) 10 WHEREAS, Successor Housing Agency staff desires to cause to be signed and recorded o 11 subordination agreement for the purposes of causing the new third-party lender to have a security interest L 12 in the Property senior to that of the Successor Housing Agency; and c 13 N WHEREAS,the State of California Department of Finance,the County Auditor-Controller of the 0 14 = County of San Bernardino and the Office of the Chief Executive Officer of the County of San Bernardino 0 15 have been properly notified prior to the adoption of this Resolution. 16 0 0 17 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCI 18 OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY,J U) 19 OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, A r_ 0 20 FOLLOWS: =a L 21 Section 1. Pursuant to Health &Safety Code Section 34176,the Successor Housing Agency �° 22 Cl) to the Redevelopment Agency of the City of San Bernardino does hereby find and determine that the 0 m 23 W Deed of Trust is a housing asset and hereby authorizes the City Manager or his/her designee, to execute c 24 d the Subordination Agreement (attached and incorporated herein as Exhibit "A") and cause it to be 25 U r 26 recorded with the San Bernardino County Recorder. a 27 Section 2. This Resolution shall take effect from and after its date of adoption and the 02, expiration of five business days from its transmittal to the California Department of Finance. 2 Packet Pg:274 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 1555 EAST 4 LYNWOOD DRIVE,SAN BERNARDINO,CALIFORNIA(# ) 5 �. I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an co 6 Common Council of the City of San Bernardino at a meeting thereof, held o 0 7 the day of ,2016,by the following vote,to wit: 8 LO to LO 9 Council Members Ayes Nays Abstain Absent 10 0 MARQUEZ 11 to BARRIOS L 12 1- VALDIVIA 13 y 3 14 SHORETT =° cc V 15 NICKEL v N 16 JOHNSON 0 0 3 17 MULVIHILL J 18 Ln LO 19 = Georgeann Hanna,City Clerk 0 20 co c The foregoing Resolution is hereby approved this day of 12016. 21 0 22 co R. Carey Davis,Mayor v°, 23 City of San Bernardino Approved as to Form: 24 Gary D. Saenz,City Attorney d E .c 25 By: w 26 Q 27 28 3 Packbt Pg:275 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: Renee Siegel M 1555 East Lynwood Drive San Bernardino,CA 92404 0 3 SPACE ABOVE THIS LINE FOR RECORDERS USE. A J Form of Ln SUBORDINATION AGREEMENT r NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER y PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. a� _ This AGREEMENT, made this 4th day of January, 2016, by(Renee Siegel), 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; CD v N WITNESSETH m a� WHEREAS, Owner(s) did on December 5, 2008, execute a Deed of Trust to California Title Company, a 0 California Corporation,as trustee,covering: N _ 0 LEGAL DESCRIPTION: The land referred to herein below is situated in the City of San Bernardino,County of San Bernardino, State of California, and is described as follows: Lot 1 of Tract No. 17793, as shown by map on file in Book 332,Pages 86 through 89 of map,records of San Bernardino County,California. `0 3 to secure a Note in the sum of$90,000 dated December 5,2008,in favor of the Redevelopment Agency of the City N r of San Bernardino first hereinafter described and hereinafter referred to as 'Beneficiary", which Deed of Trust was E recorded February 6,2009,as Instrument No.2009-0053748,Official Records of said county; a) a WHEREAS, all rights and obligations of the Beneficiary have since been transferred to the City of San a=i 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, 2012; 'a w Q WHEREAS, Owner has executed, or is about to execute, a Deed of Trust and Note in the sum of not to exceed $188,200, dated , in favor of Greenlight Loans, a division of Nationstar Mortgage LLC, 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 1 Packet Pg.276 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. R 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 0 induce Lender to make the loan above referred to,it is hereby declared,understood and agreed as follows: 3 C 1. That said Deed of Trust securing said Note in favor of Lender,and any renewals or extensions thereof, —i shall unconditionally be and remain at all times a lien or charge on the property therein described,prior LO and superior to the lien or charge or the Deed of Trust first above mentioned. t- N 2. That Lender would not make its loan above described without this Subordination Agreement. o 3. That this Agreement shall be the whole and only agreement with regard to the subordination of the lien M N or charge of the Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor C R 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 y above mentioned,which provide for the subordination of the lien or charge thereof to another Deed or 0 Deeds of Trust or to another mortgage or mortgages. _ co Successor Beneficiary declares,agrees and acknowledges that: N (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 m whom Lender disburses such proceeds and any application or use of such proceeds for purposes other vi than those provided for in such agreement or agreements shall not defeat the subordination herein C 0 made in whole or in part; c (b) Successor Beneficiary intentionally and unconditionally waives,relinquishes and subordinates the lien C 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 t i 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 a will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination;and c m E (c) An endorsement has been placed upon the Note secured by the Deed of Trust first above mentioned M 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 C 2 Packet ow 277 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 co Interim City Manager Owner City of San Bernardino 0 3 c Owner J LO LO (ALL SIGNATURES MUST BE ACKNOWLEDGED) N O IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. N L S N M O to 14 N d _d N r- 0 w C L O Cn E a E s ca w Q 3 Packet 0 g.278!