HomeMy WebLinkAboutCouncil Agenda StatementCITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY
COUNCIL AGENDA STATEMENT
MEETING DATE: March 19, 2013.
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 allowing a new mortgage not -to -exceed
$65,000 to be and remain a lien prior and superior to a housing rehabilitation assistance loan on a single -
unit property located in National City
PREPARED BY: Carlos Aguirre, Comm. Dev. Specialist 10(DEPARTMENT: Hou nd Grants lit
PHONE: 619 336-4391' APPROVED
EXPLANATION:
The Community Development Commission -Housing Authority of the City of National City (CDC -HA) made
a loan for $25,000 from the Community Development Block Grant Program to Javier and Irma Garcia
("Borrower") on 6/24/1999 to assist the Borrower in the rehabilitation of a single-family residence located at 519
"I" Ave in National City. The CDC -HA loan is an installment loan with an outstanding balance of $2,481.64. The
Borrower is interested in refinancing the first mortgage loan on the property and has been approved for a new
loan with Chase Bank ("Lender").
The Lender is requiring that the CDC -HA execute the attached 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 rate
of 3.5% and there will be no cash proceeds to the Borrowers through the refinance. Staff has satisfactorily
reviewed the combined loan -to -value, preliminary title report, new loan terms, and good faith estimate that outline
the closing costs of the transaction. The CDC-HA's legal counsel will be provided the new Deed of Trust and final
Subordination Agreement to review and approve before the Subordination Agreement is executed by the CDC -
HA.
FINANCIAL STATEMENT: APPROVED: t-11j��_Finance
ACCOUNT NO. APPROVED: MIS
There is no fiscal impact associated with this request.
ENVIRONMENTAL REVIEW:
Entering into 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. Draft Subordination Agreement between the CDC -HA and the Borrower