HomeMy WebLinkAboutA200 Staff ReportCITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY
COUNCIL AGENDA STATEMENT
MEETING DATE:
February 21, 2012
AGENDA ITEM NO.
ITEM TITLE:
Resolution of the Community Development Commission- Housing Authority of the City of National City
authorizing the Chairman to execute a Subordination Agreement with Ramon Rodriguez allowing a new
mortgage not -to -exceed $194,950 to be and remain a lien prior and superior to a First -Time Home Buyer
assistance loan of $27,250 on a single -unit property located at 2004 "B" Avenue in National City
PREPARED BY: Carlos Aguirre, Comm. Dev. Specialist I
PHONE: 619 336-4391
EXPLANATION:
DEPARTMENT: Ade Services
APPROVED BY
The Housing Authority of the Community Development Commission of the City of National City (CDC -HA) made a loan
for $27,250 from the HOME Investment Partnerships Fund to Ramon Rodriguez ("Borrower") on 10/4/2002 to assist
the eligible household in the purchase of single-family residence located at 2004 "B" Avenue in National City. The
CDC -HA loan is fully deferred for 30 years 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 -HA loan. The
Borrower is interested in refinancing the first lien on the property and has been approved for a new loan with JP
Morgan Chase Bank. The new lender is requiring that the CDC -HA execute a subordination agreement allowing the
new loan to hold superior position to the CDC -HA issued loan. The CDC -HA 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 to a fixed 4.00%
interest rate and there will be no cash proceeds to the Borrowers through the refinance. Staff has also satisfactorily
reviewed the preliminary title report, new loan terms, and closing statement. The Borrower is applying for a special
program to save their home from potential foreclosure. The program allows the Borrower to refinance without
sustaining a value that is more than the first loan. It is in the CDC-HA's best interest to subordinate and protect against
future loss to the CDC -HA due to foreclosure on the current loan. The CDC-HA's legal co}Jnsel will be provided the
new Deed of Trust to review before the Subordination Agreement is fully executed.
FINANCIAL STATEMENT:
ACCOUNT NO.
APPROVED:
APPROVED:
There is no immediate fiscal impact associated with this request. The CDC- Housing Authority is
strengthening its position to collect on the asset by subordinating to the new loan.
ENVIRONMENTAL REVIEW:
The subordination agreement is exempt from environmental review.
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
Finance
MIS
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. Draft Subordination Agreement between CDC -HA and Borrower