HomeMy WebLinkAbout2016-213 1 RESOLUTION NO.2016-213
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 156
5 COULSTON ST#19,SAN BERNARDINO, CALIFORNIA
6
WHEREAS,on January 9, 2012,the Mayor and Common Council of the City of San Bernardin
7
("Council") adopted Resolution No. 2012-12 confirming that the City of San Bernardino would serve a
8
9 the Successor Agency to the Redevelopment Agency ("Agency") of the City of San Bernardin
10 ("Successor Agency") effective February 1, 2012, pursuant to AB 1 X 26 (The Redevelopment Agency
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 performed
14 by the Agency; and
15
WHEREAS, pursuant to Health & Safety Code Section 34181(c) of AB 1 X26 the Oversigh
16
Board is to direct the transfer of housing responsibilities, including all rights, powers, duties, obligation
17
and assets,to the Successor Housing Agency; and
18
19 WHEREAS, pursuant to Health & Safety Code Section 34176(e)(1) of AB 1484 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 1565 Coulston Street, #19, San
23 Bernardino, California ("Property") exists as of October 5, 2007, and recorded on October 18, 2007, a
24
Instrument Number 2007-0587500 in the Official Records of the County of San Bernardino ("Deed o
25
Trust"); and
26
WHEREAS,the terms of the Deed of Trust allow the Trustor to obtain the release of the security
27
28 interest of the First Mortgage Lender in the Property for the purpose of a third-party lender whic
1
I 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 (Jack and Paula Whiteside) request the subordination so that they can proceed on a refinance an
4
a clear 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
housing asset and/or housing function, and desires to authorize Successor Housing Agency staff t
7
8 transfer all rights and interest in the Deed of Trust to the City in its capacity as the Successor Housing
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 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCI
14
OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY
15
OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, A
16
17 FOLLOWS:
18 Section 1. Pursuant to Health & Safety Code Section 34176, the Successor Housing Agency
19 to the Redevelopment Agency of the City of San Bernardino does hereby find and determine that the
20 Deed of Trust is a housing asset and hereby authorizes the City Manager or his/her designee, to execute
21 the Subordination Agreement (attached and incorporated herein as Exhibit "A") and cause it to be
22 recorded with the San Bernardino County Recorder.
23
Section 2. This resolution shall take effect upon its adoption and execution in the manner as
24
required by the City Charter.
25
////
26
27 ////
28
2
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 156
4 COULSTON ST#19,SAN BERNARDINO,CALIFORNIA
5
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an
6
Common Council of the City of San Bernardino at a joint adjourned regular meeting thereof, held on the
7
10`h day of October,2016, by the following vote,to wit:
8
9 Council Members Ayes Nays Abstain Absent
10
MARQUEZ X
11
BARRIOS X
12
VALDIVIA X
13
14 SHORETT X
15 NICKEL X
16 RICHARD x
17 MULVIHILL X
18 � f
19 c.._.-
Georgeann J: nna, CMC, City Clerk
20
21 The foregoing Resolution is hereby approved this A day cal October, 2
22 C✓
23 R. Carey Davis, ayor
City of San Be ardino
24 Approved as to Form:
Gary D. Saenz, City Attorney
25
26 By,:-\
27
28
3
2016-213
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: Jack&Paula Whiteside
1565 Coulston St,#19
San Bernardino,CA 92408
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 3rd day of October, 2016,by(Jack and Paula Whiteside), 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 on October 5, 2007, execute a Deed of Trust to Lawyers Title Company, a
California Corporation,as trustee,covering:
LEGAL DESCRIPTION: The land herein after referred to is situated in the City of San Bernardino, County
of San Bernardino, State of California,and is described as follows:
Lot 19 of Tract No. 10297-1, in the City of San Bernardino,County of San Bernardino, State of California, as
per map recorded in Book 156, Page(s) 95 through 97 inclusive of Maps, in the Office of the County Recorder of
said County(APN#0281-321-19-0000).
to secure a Note in the sum of$39,000 dated October 5, 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
recorded October 18,2007, as Instrument No.2007-0587500,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 not to
exceed$91,000, dated , in favor 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
1
2016-213
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.
2
2016-213
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
Mark Scott,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.
3