HomeMy WebLinkAbout2011 CC RESO 2011-169 CDC•
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RESOLUTION NO. 2011 — 169
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING
THE CHAIRMAN TO EXECUTE A SUBORDINATION AGREEMENT
WITH AMALIA OCHOA ALLOWING A NEW MORTGAGE OF $76,100
TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO
A FIRST-TIME HOMEBUYER ASSISTANCE LOAN OF $17,358
ISSUED BY THE CDC ON A SINGLE -UNIT PROPERTY
LOCATED AT 915 OLIVE AVENUE IN NATIONAL CITY
WHEREAS, the Community Development Commission of the City of National
City ("CDC") made a loan of $17,358 ("CDC Loan") from HOME Investment Partnerships Act
funds to Amalia Ochoa ("Borrower") on October 19, 1995, to assist an eligible low-income family
in the purchase of a single-family located at 915 Olive Ave in National City; and
WHEREAS, the existing CDC Loan is an enforceable obligation entered into
before January 1, 2011; and
WHEREAS, the CDC Loan is fully deferred until 2028, as long as the residence
is occupied by the Borrower and the Borrower performs under all other Covenants and
Agreements contained in the Deed of Trust of the CDC Loan; and
WHEREAS, the Borrower is interested in refinancing the debt on the property
and has been approved for a new loan with Union Bank that requires the CDC to execute a
Subordination Agreement allowing the new loan to hold superior position to the CDC -issued
loan that will maintain second lien position on the property; and
WHEREAS, the purpose of the refinance inal ce is to allow the borrower ower to reduce the
interest rate paid on their current mortgage at 7.875% to approximately 4.5% with no cash
proceeds to the Borrower through the escrow tied to the refinance; and
WHEREAS, maintaining a second lien position pursuant to the borrower
refinancing to a lower interest rate without a cash -out acts to further preserve and secure the
City interest on the property.
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission of the City of National City hereby authorizes the Chairman to execute a
Subordination Agreement in favor of a new first trust deed with Union Bank, and to execute any
additional escrow documents required to comply with the terms and conditions of said
Subordination Agreement. Said Subordination Agreement is on file in the Office of the City Clerk.
PASSED and ADOPTED this 19th day of July, 2011.
orrison, Chairman
ATTEaT: :' ROVED AS TO FORM:
dia G.:ilva
CDC Gen; I Counsel
Passed and adopted by the Community Development Commission of the City of
National City, California, on July 19, 2011, by the following vote, to -wit:
Ayes: Commissioners Morrison, Natividad, Rios, Sotelo-Solis, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman, Community Development Commission
Secretary, Community Development Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2011-169 of the Community Development Commission of the City
of National City, California, passed and adopted on July 19, 2011.
Secretary, Community Development Commission
By:
Deputy