HomeMy WebLinkAboutSubordination µxntp
Consent Calendar
City of San Bernardino
lo. Request for Council Action
G'�D£D LN�S
Date: February 21, 2017
To: Honorable Mayor and City Council Members
From: Mark Scott, City Manager It 5
By: Lisa A Connor, Successor Agency
Subject: Subordination of a Deed of Trust at 1094 West 59th Street
Recommendation
Adopt the Resolution of the Mayor and City Council of the City of San Bernardino,
California, 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 1094 West
59t" Street, San Bernardino, California.
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 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 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.
Discussion
The property owner at 1094 West 59th Street obtained assistance from the Agency, and
the property owner wishes to refinance their existing first mortgage. 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 subordination agreement and associated documents which will allow
the property owner to refinance their first mortgage.
Fiscal Impact
There is no Fiscal Impact to the City or Successor Agency.
Conclusion
It is recommended that the Mayor and City Council, Acting as the Successor Housing
Agency, adopt the attached Resolution.
Attachments
Attachment 1 - Resolution, Subordination 1094 West 59th Street
Attachment 2 - Agreement, Subordination 1094 West 59th Street
Ward: 4
Synopsis of Previous Council Actions:
October 17, 1994: Resolution 5409 adopted by the Community Development
Commission establishing the Mortgage Assistance Program-subsequently
renamed Homebuyer 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.