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HomeMy WebLinkAbout2025-124 - T& T Community Properties, LLC, Neighborhood National Bank - Subordination of the HOME Investment Partnerships Program Loan for 138 Norton Avenue to Refinance the PropertyRESOLUTION NO. 2025 - 124 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AUTHORIZING THE CITY MANAGER OR THEIR DESIGNEE TO EXECUTE A SUBORDINATION AGREEMENT WITH T & T COMMUNITY PROPERTIES LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AND NEIGHBORHOOD NATIONAL BANK, SUBORDINATING THE DEED OF TRUST THAT SECURES THE CITY'S HOME INVESTMENT PARTNERSHIPS LOAN FOR $717,500 ON EIGHT RESTRICTED RENTAL UNITS LOCATED AT 138 NORTON AVENUE IN NATIONAL CITY. WHEREAS, T & T Community Properties, LLC, a California limited liability company, ("Borrower") is the owner of an 8-unit multifamily rental housing project ("Property") located at 138 Norton Avenue in National City; and WHEREAS, in 2011, the City of National City made a loan for $717,500 from the HOME Investment Partnerships ("HOME") Program restricting the eight units to between 30-60% of the Area Median Income ("AMI") to assist in the substantial rehabilitation of the Property which was secured with a Deed of Trust ("City Deed of Trust"); and WHEREAS, Borrower desires to refinance existing debt of approximately $403,700 on the Property through a new mortgage and cover the closing costs with the not -to -exceed principal amount of $417,000 from Neighborhood National Bank ("Lender"); and WHEREAS, in order to provide the new loan, the Lender requires the subordination of the City Deed of Trust to the Lender's Deed of Trust. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1: That the City Council hereby authorizes the City Manager or his designee to execute a Subordination Agreement with T & T Community Properties, LLC and Neighborhood National Bank, and any other Escrow related documents as necessary. Section 2: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. PASSED and ADOPTED this 16th day of S ber 2025. n Morrison, Mayor ATTEST: Shelle hapel, MMC, City Clerk APPROVED AS TO FORM: 2144 .1 d P, 0 4/� — Barry J. S , City Attorney Passed and adopted by the City Council of the City of National City, California, on September 16, 2025 by the following vote, to -wit: Ayes: Molina, Rodriguez, Yamane, Bush, Morrison Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California Shelley Chapel City Clerk of the City of National City, California BY: - /' Shelley pel, MMC, City Clerk