HomeMy WebLinkAbout2012 CC RESO 2012-29 CDCRESOLUTION 2012 — 29
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY ("CDC") AUTHORIZING
THE CHAIRMAN TO EXECUTE A SUBORDINATION AGREEMENT
WITH BARBARA J. MELLOR AND JASON H. MELLOR ALLOWING
A NEW MORTGAGE NOT -TO -EXCEED S150.000 TO BE AND
REMAIN A LIEN PRIOR AND SUPERIOR TO A FIRST-TIME
HOMEBUYER ASSISTANCE LOAN OF $18,926 ISSUED BY THE CDC
ON A TOWNHOME UNIT LOCATED AT 109 EAST 9TH STREET
WHEREAS, the Community Development Commission of the City of National
City ("CDC") made a loan of $18,926 ("CDC Loan") issued from the Low Moderate Income Fund
to Barbara J. Mellor and Jason H. Mellor ("Borrowers") on May 29, 2002, to assist an eligible
household in the purchase of a townhome unit located at 109 East 9th Street, National City,
California (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 2032, 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 Wells Fargo Home Mortgage ("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 3.875% 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 with Barbara J. Mellor and Jason H. Mellor in favor of a new First
Trust Deed with Wells Fargo Home Mortgage 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 24th day of January, 122..
n Morrison, Chairman
ATTEFORM:
ua Sil
Couny
Passed and adopted by the Community Development Commission of the City of
National City, California, on January 24, 2012, 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, Conirrio ' sevelopment Commission
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2012-29 of the Community Development Commission of the City of
National City, California, passed and adopted on January 24, 2012.
Secretary, Community Development Commission
By:
Deputy