HomeMy WebLinkAboutA200 Staff ReportMEETING DATE:
CITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION
COUNCIL AGENDA STATEMENT
January24 , 2012
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 Barbara J. Mellor allowing a new mortgage not -to -
exceed $150,000 to be and remain a lien prior and superior to a First -Time Home Buyer assistance loan
of $18,926 issued by the CDC on a townhome unit located at 109 E. 9th Street in National City
PREPARED BY: Carlos Aguirre, Comm. Dev. Specialist II
PHONE: 619 336-4391
EXPLANATION:
DEPARTMENT: . minstrative Services
APPROVED BY:
The CDC made a loan for $18,926 from the Low -Moderate Housing Fund to Barbara J. Mellor (the "Owner")
and Jason H. Mellor (together as "Borrowers") on May 29, 2002 to assist the eligible household in the
purchase of a new townhome located at 109 E. 9th St. in National City. The CDC loan is fully deferred until
May 30, 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. The Borrowers are
interested in refinancing the current debt on the property and have been approved for a new loan with Wells
Fargo Bank. The new lender is requiring that the CDC execute a subordination agreement 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 Borrowers to reduce the interest rate paid to a
fixed rate of 3.875% and there will be no cash proceeds to the Borrowers through the refinance. Staff has
also satisfactorily reviewed the a property valuation report, preliminary title report, new loan note terms, and
closing statement.
FINANCIAL STATEMENT:
ACCOUNT NO.
APPROVED:
APPROVED:
Finance
MIS
There is no fiscal impact associated with this request. The existing CDC loan is an "enforceable obligation"
entered into before January 1, 2011.
ENVIRONMENTAL REVIEW:
The subordination agreement is exempt from environmental review.
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Staff recommends the adoption of a 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 between CDC and Owner
2. Draft Deed of Trust for the loan with Wells Fargo Bank