HomeMy WebLinkAbouta200MEETING DATE:
CITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION
COUNCIL AGENDA STATEMENT
July 19, 2011
AGENDA ITEM NO.
ITEM TITLE:
Resolution of the Community Development Commission of the City of National City authorizing its
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 Home Buyer assistance loan of $17,358 issued
by the CDC on a single -unit property located at 915 Olive Avenue in National City
PREPARED BY: Carlos Aguirre DEPARTMENT: Adminstrative Services
PHONE: 619 336-4391 APPROVED
EXPLANATION:
The CDC made a loan for $17,358 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
house located at 915 Olive in National City. The existing CDC loan is an enforceable obligation entered into
before June 29, 2011. 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. The Borrower is interested in refinancing the debt on the property and has been
approved for a new loan with Union Bank. The new lender is requiring that the CDC execute a subordination
agreement (Attachment No.1) allowing the new loan to hold superior position to the CDC -issued loan. The
CDC loan will maintain second lien position on the property. The purpose of the refinance is to allow the
borrower to reduce the interest rate paid on their current mortgage at 7.875% to approximately 4.5%. There
will be no cash proceeds to the Borrower through an escrow of the refinance transaction. The new combined
loan -to -value ratio will be 42% as substantiated by a current appraisal of the property at $225,000.
FINANCIAL STATEMENT: APPROVED: finance
ACCOUNT NO. APPROVED: MIS
There is no fiscal impact associated with this request.
ENVIRONMENTAL REVIEW:
The subordination agreement is exempt from environmental review.
ORDINANCE: INTRODUCTION: FINAL ADOPTION:
STAFF RECOMMENDATION:
Staff recommends the approval of the resolution to execute the subordination agreement.
BOARD / COMMISSION RECOMMENDATION:
There is no board or commission recommendation required for the subordination agreement.
ATTACHMENTS:
1. Subordination Agreement