HomeMy WebLinkAboutResolutionRESOLUTION NO. 2013 —
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 HOUSING
REHABILITATION ASSISTANCE LOAN ON A SINGLE -UNIT
PROPERTY LOCATED IN NATIONAL CITY
WHEREAS, 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 "Property"); and
WHEREAS, the City is owed an outstanding balance of approximately $33,424;
and
WHEREAS, the Borrower is interested in refinancing the debt on the property
and has been approved for a new loan with Bank of America (the "Lender") that requires the
City to execute a Subordination Agreement allowing the new loan to hold superior position to
the City Loan to maintain second lien position on the Property; and
WHEREAS, the purpose of the refinance is to allow the Borrower to reduce the
interest rate to 4.5% and use loan proceeds to pay off unsecured debt to lower monthly debt
payments; and
WHEREAS, maintaining a second lien position pursuant to the Borrower
refinancing to lower the interest rate while consolidating and lowering total monthly debt
payments further preserves and secures the City's interest in the Property.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the City Manager to execute a Subordination Agreement in
favor of a new First Trust Deed with Bank of America as beneficiary. After being recorded by the
County of San Diego, said Subordination Agreement will be on file in the office of the City Clerk.
PASSED and ADOPTED this 17th day of December, 2013.
Ron Morrison, Mayor
ATTEST: APPROVED AS TO FORM:
Michael R. Dalla, City Clerk Claudia Gacitua Silva
City Attorney