HomeMy WebLinkAbouta200 staff reportCITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE
December 17, 2013
AGENDA ITEM NO.
ITEM TITLE
Resolution of the City Council of the City of National City authorizing the City Manager to execute a
Subordination Agreement allowing a new mortgage not -to -exceed $120,000 to be and remain a lien prior
and superior to a housing rehabilitation assistance loan on a single -unit property located in National City
Housing, Grants, &
PREPARED BY:Carlos Aguirre, Community Dev. Manage : DEPARTMENT Asset Management
PHONE 619 336-4391 APPROVED BY:
EXPLANATION.
The City of National City (City) made a loan for $32,835 from the HOME Investment Partnership Program
to Joseph J. Rader (`Borrower') on October 17, 2011 to assist the Borrower with the rehabilitation of an owner
occupied single-family residence located at 2407 "J" Avenue in National City. The City is owed an outstanding
balance of $33,424. The Borrower is interested in refinancing the first mortgage loan on the property and has been
approved for a new loan with Bank of America ("Lender").
The Lender is requiring that the City execute the attached subordination agreement allowing the new loan
to hold superior position to the City issued loan. The City 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 4.5% and to
consolidate unsecured debts with loan proceeds thereby lowering total monthly debt payments. Staff has
satisfactorily reviewed the combined loan -to -value, preliminary title report, new loan terms, and good faith estimate
and draft settlement statement that outline the closing costs of the transaction.
FINANCIAL STATEMENT: APPROVED:
ACCOUNT NO. APPROVED:
There is no fiscal impact associated with this request.
ENVIRONMENTAL REVIEW
Entering into the subordination agreement is exempt from environmental review.
ORDINANCE: INTRODUCTION:
ANAL 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 the City and the Borrower