HomeMy WebLinkAbout04.J- Successor Agency 4.J.a
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Consent Calendar
City of Bari Bernardino
Request for Council Action
Date-, February 21, 2017
To: Honorable Mayor and City Council Members n
From. Mark Scott, City Manager
By: Lisa A Connor, Successor Agency
dub` t; Subordination of a Deed of Trust at 109 est 59th S t
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Recommendation
Adapt the Resolution of the Mayor and City Council of the City of Sari Bernardino, r2
California, acting as the Successor lousing Agency to the Redevelopment Agency of c
the City of San Bernardino approving the Subordination of a Deed of Trust in connection a
with a refinancing of the Senior Mortgage relating to real property located at 1994 West
gn Street, San Bernardino„ California.
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On October 17, 1994, the Community Development Commission of the City of San
Bernardino ("Commission") approved Resolution 5499; 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
payrnentdclosing cost monies necessary to secure financing towards the purchase of v
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 2
availability of affordable housing to income-qualified e ire buyers in the community,
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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, 2912, the Mayor and
Common Council adopted Resolution 2012-19 further confirming that the City would E
serve as the "Successor blousing Agency" to the former Redevelopment Agency and
perform the housing functions previously performed by the Agency.
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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 0-
the property owner to refinance their first mortgage,
Fiscal Impa
There is no Fiscal Impact to the City or Successor Agency.
Congluslon
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 0
Attachment 2 - Agreement, Subordination 1094 West 59th Street
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Ward: 4 C
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Synopsis of Previous Council Actions:
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October 17, 1994- Resolution 5409 adopted by the Community Development
Commission establishing the Mortgage Assistance Program-subsequentty
renamed Homebuyer Assistance Program.
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January 9, 2012: Resolution 2012-12 adopted, confirming the City would serve as
the Successor Agency to the former Redevelopment Agency. .2
January 23, 2012: Resolution 2012-19 adopted, confirming the City would serve
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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.
Packet Pg. 197
4.J.b
1 RESOLUTION NO.
2 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SA
3 BERNARDINO, CALIFORNIA, ACTING AS THE SUCCESSOR HOUSING AGENCY TO TH
REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING THEas
4 SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A REFINANCING O
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THE SENIOR MORTGAGE RELATING TO REAL PROPERTY LOCATED AT 1094 WEST
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5 59TH STREET, SAN BERNARDINO,CALIFORNIA F-
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WHEREAS, on January 9, 2012, the Mayor and City Council of the City of San Bernardino S
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California, ("Council") adopted Resolution No. 2012-12 confirming that the City of San Bernardin
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9 would serve as the Successor Agency to the Redevelopment Agency ("Agency") of the City of San
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10 Bernardino ("Successor Agency") effective February 1, 2012, pursuant to AB 1 X 26 (The Redevelopmen o
11 Agency Dissolution Act); and o
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12 WHEREAS, on January 23, 2012, the City Council adopted Resolution No. 2012-19 providingo
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for the City to serve as the Successor Housing Agency and perform the housing functions previously
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14 performed by the Agency; and q
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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, obligation
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and assets,to the Successor Housing Agency; and o
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19 WHEREAS, pursuant to Health & Safety Code Section 34176(e)(1) of AB1484 the restriction
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20 on the use of real property such as affordability covenants entered into by the Agency are considered
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21 housing asset; and =
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22 WHEREAS, a Deed of Trust affecting real property located at 1094 West 59th Street, San =
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23 Bernardino, California ("Property") exists as of March 10, 2008, and recorded on March 25, 2008, a 5
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Instrument Number 2008-0129629 in the Official Records of the County of San Bernardino ("Deed o
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Trust"); and c
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WHEREAS, the terms of the Deed of Trust allow the Trustor to obtain the release of the securitymac,
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28 interest of the First Mortgage Lender in the Property for the purpose of a third-party lender whicha
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4.J.b
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 (Maria Alcantar and Jacqueline Prado) request the subordination so that they can proceed on aw
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refinance and a clear 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 a w
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housing asset and/or housing function, and desires to authorize Successor Housing Agency staff t
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8 transfer all rights and interest in the Deed of Trust to the City in its capacity as the Successor Housingr
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g Agency; and 0
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10 WHEREAS, Successor Housing Agency staff desires to cause to be signed and recorded a o
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11 subordination agreement for the purposes of causing the new third-party lender to have a security interesto
12 in the Property senior to that of the Successor Housing Agency; and c
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NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL O
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THE CITY OF SAN BERNARDINO,CALIFORNIA,ACTING AS THE SUCCESSOR HOUSING 0
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AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, A
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FOLLOWS:
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18 Section 1. Pursuant to Health &Safety Code Section 34176,the Successor Housing Agency
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19 to the Redevelopment Agency of the City of San Bernardino does hereby find and determine that the
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20 Deed of Trust is a housing asset and hereby authorizes the City Manager or his/her designee, to execute
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21 the Subordination Agreement (attached and incorporated herein as Exhibit "A") and cause it to b s
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22 recorded with the San Bernardino County Recorder. c
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Section 2. This resolution shall take effect upon its adoption and execution in the manner as E
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required by the City Charter.
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4.J.b
1 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SA
BERNARDINO, CALIFORNIA, ACTING AS THE SUCCESSOR HOUSING AGENCY TO TH
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 1094 WESTw
4 59TH STREET,SAN BERNARDINO,CALIFORNIA
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I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and Ciq LO
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Council of the City of San Bernardino at a meeting thereof, held on the 3:
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day of , 2017, by the following vote,to wit:
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Council Members Ayes Nays Abstain Absent 3
10 p
MARQUEZ -a
11 ami
BARRIOS
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VALDIVIA =
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14 SHORETT
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15 NICKEL
16 RICHARD
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17 MULVIHILL Y
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Georgeann Hanna, City Clerk
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The foregoing Resolution is hereby approved this day of , 2017. �
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R. Carey Davis, Mayor 0
23 City of San Bernardino c
Approved as to Form: a
24 Gary D. Saenz, City Attorney `0
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By: c
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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
Satz Bernardino"CA 92401 �
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Owner Nairne. Maria Alcantar/Jacqueline Prad ami
1094 West 59th Street �
San Bernardino,CA 92407 �
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SPACE ABOVE TRIS UNE FOR ItiECC#RDER;S USE,
Fonnof
SUBORDINATION AGREEMENT
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NOTICE: THIS SUBORDINATION AGRI E ENT RESULTS IN YOUR SECURITY
INTEREST" IN THE PROPERTY BECOMING SUBJECT TO AND QE LOVER o
PRIORITY THAN THE LIED OF SOME OTHER, OR LATER SECURITY o
INSTRUMENT. �
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This AGREEMENT,made this 21st day of fthr_uary.2017,by(Maria Alcantar and Jac eline Prado),Owner �
of the land hereinafter described and hereinafter referred to as"Owner,"and the City of Sate Bernardino,acting in its �
capacity as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino, present 0
owner and holder of the Deed of Trust and Note; �
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WITNESSETH cC°o
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WHEREAS, Owner(s)did on aLcb 10 .1 8,execute a Deed of Trust to Fidelity National l°tle,a California N
Corporation,as trustee,covering:
LEGAL DESCRIPTION: The land herein after referred to is situated in the City of Satz Bernardino,County ¢i
of San Bernardino. State of California,and is described as follows: �
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LOT 246 OF TRACT NO. 13554-6, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN
BERNARDIsNO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 238, PAGES 51 THROUGH
54, INCLUSIVE, CJI MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APNs Q
0265-321-77-0-000 r-
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to secure a Note in the sum of$14,POO dated March 10,2008 in favor of the Redevelopment Agency of the City of c
Sara Bernardino first hereinafter described and hereinafter referred to as "Beneficiary"`, which Deed of Trust was a
recorded Mmc-h 25 008,as Instrument No.2008-0129629,Official Records of said county; 0
in
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 Compton Council Resolution No. 2012-19 dated January 23, E
2012;
WHEREAS, towner has executed, or is about to execrate, a Deed of Trust and Note in the sum of not to `r
exceed.$199,7L];Q ,dated , in favor of Blu Point Mortgne, a DBA of Roval Pacific
Funding Cort" hereinafter referred to as "Leader," payable with interest and upon the temps and conditions
described therein,which Beed 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
WHEREAS, tender 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
as
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WHERFAS, it is to the mutual benefit of the panics 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 4)
charge upon said land which is unconditionally prior and superior to the lien or charge of the Deed of Trust rust
above mentioned. 0)
NOW, TIJEREFORE, 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:
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1. That said Deed of Trust securing said Note in favor of Lender,and any renewals or extensions thereof, V
shall unconditionally be and remain at all times a lien or charge on die property therein described,prior 4)
and superior to the Lien or charge or the Deed of Trust first above mentioned.
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I That Lender would riot make its loan above described without this Subordination Agreement. 0
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3, That this Agreement shall be the whole and only agreement with regard to the subordination of the lien
or charge sal'tht Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor
of the tender above referred to and shall supersede and cancel, but only insofar as would affect the 0
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 to
Deeds of Trust or to another mortgage or mortgages. 00
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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
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whom Lender disburses such proceeds and any application or use of such proceeds for purposes other 4)
than those provided for in such agreement or agreements shall not defeat the subordination herein E
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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 .2
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 0
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 E
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.
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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 Bemardino,acting as the Successor Housing Agency
to the Redevelopment Agency of the City of San Bernardino C0
Mark—Scott,-'City--M-"a—nager Owner Q
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City of San Bernardino
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6—,�vnc—rea
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(ALL SIGNATURES MUST BE ACKNOWLEDGED) F-
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IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, 4)
THE PARTIES CONSULT WITH THEIR A17ORNEYS WITH RESPECT THERETO. 13
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