HomeMy WebLinkAbout05.D- Subordination of Deed of Trust in Connection with a Refinancing of the Senior Mortgage Relating to Real Property RESOLUTION (ID #4333) DOC ID: 4333
CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION
Conveyance of Property
From: Brandon Mims M/CC Meeting Date: 03/07/2016
Prepared by: Brandon Mims, (909) 384-
5122
Dept: City Manager Ward(s): 6
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 2185
Roosevelt Avenue, San Bernardino, California. (#4333)
Current Business Registration Certificate: Not Applicable
Financial Impact:
Motion: Adopt the Resolution.
Synopsis of Previous Council Action:
On September 7, 1999, the Community Development Commission approved a
Neighborhood Initiative Program cooperative agreement between the Redevelopment
Agency (Agency) and the County of San Bernardino's Economic and Community
Development Agency.
On March 29, 2002, the County of San Bernardino awarded the Agency a sum of
$300,000 to be used under the NIP program for exterior beautification.
On June 3, 2002, the Mayor and Common Council authorized the execution of the
Agreement by and between the City and the Redevelopment Agency to implement the
Neighborhood Initiative 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 July 19, 2007, Jose I Armendariz participated in the Neighborhood Initiative Program
(NIP). This Program was designed to provide income-eligible homeowners with a grant
of up to $5,000 for exterior beautification to their homes. Applicants must occupy their
residence for a period of one year after which the grant amount is forgiven. As a
Updated: 2/23/2016 by Brandon Mims Pact 'g�37' `
4333
condition of the program, and acceptance of the grant funds, a residential covenant is
recorded against the property. This covenant establishes certain restrictions as to how
the property is to be maintained.
Current Issue:
The property owner for the property located at 2185 Roosevelt Avenue obtained a NIP
Grant 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 Residential Property
Maintenance Agreement Containing Covenants Affecting Real Property to be expressly
subordinated to the new first mortgage. 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 for 2185 Roosevelt Ave (DOCX)
02-16-16 Subordination Agmt Armendariz (DOCX)
187.
Updated: 2/23/2016 by Brandon Mims ,K
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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 218
5 ROOSEVELT AVENUE, SAN BERNARDINO,CALIFORNIA
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WHEREAS, on January 9, 2012,the Mayor and Common Council of the City of San Bernardinoa
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8 ("Council") adopted Resolution No. 2012-12 confirming that the City of San Bernardino would serve a c
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9 the Successor Agency to the Redevelopment Agency ("Agency") of the City of San Bernardino LO
10 ("Successor Agency") effective February 1, 2012, pursuant to AB1X 26 (The Redevelopment Agency N
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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
13 City to serve as the Successor Housing Agency and perform the housing functions previously performed
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14 by the Agency; and _°
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WHEREAS, pursuant to Health & Safety Code Section 34181(c) of AB1X26 the Oversigh M
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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
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19 WHEREAS, pursuant to Health & Safety Code Section 34176(e)(1) of AB1484 the restriction c
20 on the use of real property such as affordability covenants entered into by the Agency are considered a 00
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21 housing asset; and ,o
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22 WHEREAS, a Residential Property Maintenance Agreement affecting real property located a
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23 2185 Roosevelt Ave, San Bernardino, California("Property") exists as of July 19, 2007, and recorded o
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September 12, 2007 as Instrument Number 2007-0525070 in the Official Records of the County of San
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Bernardino and
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WHEREAS, the terms of the Residential Property Maintenance Agreement allow the Trustor to
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28 obtain the release of the security interest of the First Mortgage Lender in the Property for the purpose of
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1 third-party lender which 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(Jose I. Armendariz) request the subordination so that they can proceed on a refinance and a clea
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lenders 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 m
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housing asset and/or housing function, and desires to authorize Successor Housing Agency staff to d
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8 transfer all rights and interest in the Deed of Trust to the City in its capacity as the Successor Housin 0
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9 Agency; and
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10 WHEREAS, Successor Housing Agency staff desires to cause to be signed and recorded a U)
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11 subordination agreement for the purposes of causing the new third-party lender to have a security interes
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12 in the Property senior to that of the Successor Housing Agency; and L
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 Bernardin _
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have been properly notified prior to the adoption of this Resolution.
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17 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNC11 Q
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18 OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY
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19 OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, AS 0
20 FOLLOWS: °r°
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21 Section 1. Pursuant to Health &Safety Code Section 34176,the Successor Housing Agency 1°
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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 execute 0
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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.
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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 D:a
° 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE
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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 218
4 ROOSEVELT AVENUE, SAN BERNARDINO,CALIFORNIA
5 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by th
Mayor and Common Council of the City of San Bernardino at a meeting
6 thereof,held on the day of ,2016,by the following vote,to wit: Q
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8 Council Members Ayes Nays Abstain Absent �°
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9 MARQUEZ N
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BARRIOS
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VALDIVIA N
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SHORETT F-
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15 RICHARD
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16 MULVIHILL
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18 Georgeann Hanna, City Clerk y
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19 The foregoing Resolution is hereby approved this day of ,2016. ce
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21 R. Carey Davis,Mayor
22 City of San Bernardino m
Approved as to Form:
23 Gary D. Saenz,City Attorney
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By:
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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 Q
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Owner Name: Jose I.Armendariz
2185 Roosevelt Avenue o
San Bernardino,CA 92411 X
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SPACE ABOVE THIS LINE FOR RECORDERS USE. N
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Form of 0
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SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY
INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER a,
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY N
INSTRUMENT. o
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This AGREEMENT, made this 7t' day of March, 2016, by (Jose I. Armendariz), Owner of the land M
hereinafter described and hereinafter referred to as"Owner,"and the City of San Bernardino,acting in its capacity as ">
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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; L
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WITNESSETH y
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WHEREAS, Owner(s) did on July 19, 2007, execute a Deed of Trust to California Title Company, a Q
California Corporation,as trustee,covering: E
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LEGAL DESCRIPTION: See Exhibit A c
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to secure a Note in the sum of N/A dated July 19, 2007, 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 `a
recorded September 12,2007 as Instrument No.2007-0525070,Official Records of said county; o
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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; c
WHEREAS, Owner has executed, or is about to execute, a Deed of Trust and Note in the sum of not to
exceed$213,000.00, dated , in favor of Wells Fargo Bank,N.A., hereinafter referred E
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
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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.
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NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other N
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:
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1. That said Deed of Trust securing said Note in favor of Lender,and any renewals or extensions thereof, N
shall unconditionally be and remain at all times a lien or charge on the property therein described,prior w
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. N
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3. That this Agreement shall be the whole and only agreement with regard to the subordination of the lien 2
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 N
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: N
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(a) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to,nor m
has Lender represented that it will, see to the application of such proceeds by the person or persons to E
whom Lender disburses such proceeds and any application or use of such proceeds for purposes other Q
than those provided for in such agreement or agreements shall not defeat the subordination herein —
made in whole or in part; Q
(b) Successor Beneficiary intentionally and unconditionally waives,relinquishes and subordinates the lien o
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 :a
consideration of,this waiver, relinquishment and subordination specific loans and advances are being p
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, N
relinquishment and subordination;and �O
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(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. m
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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 Q
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Mark Scott,City Manager Owner 0
City of San Bernardino W
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Owner '
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(ALL SIGNATURES MUST BE ACKNOWLEDGED)
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IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, 1=
THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. a>
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All dmtcmWn trail prqxrtysituatoti in the CITY OF SAN I)MNARDINO,County of SAN w
BERNARDINO,State of CALIFORNIA,demibcd as follows: N
PORTIONS OF LOTS 25 AND 23 OF POPE TALBOT AND PIERCE ADDITION,IN THE CITY OF c
SAN BERNARDINO,COUNTY OF SAN BERNARDINO,STATE?OF CALIFORNIA.AS PER
PLAT RECORDED IN BOOK I I OF MAPS,PAGE 28,RECORDS OF SAID COUNTY, cva
DESCRIBED AS FOLLOWS-
COMMENCIN, G AT THE SOUTHEAST CORNER.OF LOT 97 OF TRACT 2353 AS PER PLAT �
RWORD IN BOOK 33 OF MAPS,PAGES 66 AND 67,RECORDS OF SAID COUNTY, at
TUENCE ALONG THE SOUTHERLY EXTENSION OF THE BAST LINE OF SAID LOT 97,S Ir �
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03'30"E60 FEET TO THE SOUTH LINE OF ROOSEVELT AVENUE;THENCE N$9°19'30-l �
210.06 FEET TO THE NORTHWF,ST CORN F?R 0 LOT 112 OF SAID CT THEN CE S 00 03' _
00"6 329.80 FE9r TO THE SOUTT(W=CORNER OF SAID LOT 112,THENCE S RV 19'30"W ..
28.70 FEET MORE OR LESS TO A POW 2401 FEET MEASUR- AT RIGHT ANGLES M
NOR1I4WES LY THE SOL�`T14WWE:RLY LINE OF SAID POP13 TALBOT AND �
PIERCE ADOMON,THENCE N 450 02'00"W 545.17 FEET TO A POW WHICH IS S N9° 49'
30"W 204.03 FEET FROM THE POINT OF BEGINNING;THENCE N 89°19'30"E 2003 FEET N
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TO THE POINT OF BEGINNING. �
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EXCEPTING THEREFROM THAT PORTION OF LAND DESCRIBED IN A DOCUMENT �
RECORDED MARCH 13,1947 IN BOOK 1982,PAGE 265 OF OFFICIAL RECORDS of SAID E
COUNTY. r
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Assessor Pored No(s).: 0269-121-0!34-000 �
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