HomeMy WebLinkAbout2011 CC RESO 2011-202 CDCRESOLUTION NO. 2011 — 202
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY ("CDC") AUTHORIZING
THE CHAIRMAN TO EXECUTE A SUBORDINATION AGREEMENT
WITH MIGUEL S. HERNANDEZ AND ALICIA B. HERNANDEZ
ALLOWING A NEW MORTGAGE NOT -TO -EXCEED $196,000
TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO
A FIRST-TIME HOMEBUYER ASSISTANCE LOAN OF $25,000
ISSUED BY THE CDC ON A SINGLE -UNIT PROPERTY
LOCATED AT 1334 TECOLOTE COURT IN NATIONAL CITY
WHEREAS, the Community Development Commission of the City of National
City ("CDC") made a loan of $25,000 ("CDC Loan") issued from the Low Moderate Income Fund
to Miguel S. Hernandez and Alicia B. Hernandez ("Borrowers") on October 10, 1996, to assist
an eligible household in the purchase of a single-family house located at 1334 Tecolote Court n
National City (the "Property"); 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 2029, as long as the residence
is occupied by the Borrowers and the Borrowers perform under all other Covenants and
Agreements contained in the Deed of Trust of the CDC Loan; and
WHEREAS, the Borrowers are interested in refinancing the debt on the property
and have been approved for a new loan with San Diego County Credit Union ("Lender") that
requires the CDC to execute a Subordination Agreement allowing the new loan to hold superior
position to the CDC Loan that will maintain second lien position on the Property; and
WHEREAS, the purpose of the refinance is to allow the Borrowers to reduce the
interest rate paid on their current mortgage to 4.0% with no cash proceeds to the Borrowers
through the escrow tied to the refinance; and
WHEREAS, maintaining a second lien position pursuant to the Borrowers
refinancing to a lower interest rate without cash -out acts to further preserve and secure the CDC
interest in the Property.
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission of the City of National City hereby authorizes its Chairman to execute a
Subordination Agreement in favor of a new First Trust Deed with San Diego County Credit
Union as beneficiary. After being recorded by the County of San Diego, said Subordination
Agreement will be on file in the office of the City Clerk.
PASSED and ADOPTED this 6th day of Septemb 2011.
on Morrison, Chairman
'•PROVED • . TO FORM:
'Li ,1
''dia Gaiii Silva
CDC Gener�unsel
Passed and adopted by the Community Development Commission of the City of
National City, California, on September 6, 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, opment Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2011-202 of the Community Development Commission of the City
of National City, California, passed and adopted on September 6, 2011.
Secretary, Community Development Commission
By:
Deputy