HomeMy WebLinkAbouta200 staff report- Brown SubordinationCITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY
COUNCIL AGENDA STATEMENT
MEETING DATE:
:June 3, 2014
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
$165,000 to be and remain a lien prior and superior to a home purchase assistance loan on a single -unit
property located in National City.
PREPARED BY: Carlos Aguirre, Comm. Dev. Manager*
PHONE: i619 336-4391
EXPLANATION.
The Community Development Commission -Housing Authority of the City of National City (CDC -HA) made
a loan for $19,400 from the Community Development Block Grant Program to Mark A. Brown and E. Isabel Brown
on 5/29/2002 to assist in the purchase of a single-family residence located at 101 E. 9' Street in National City. The
CDC -HA loan is an installment loan with an outstanding balance of $19,400.00. E. Isabel Brown ("Borrower") is
interested in refinancing the first mortgage loan on the property and has been approved for a new loan with
California Coast Credit Union ("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 reduce the interest rate paid to a fixed rate of 4.625% and there
will be no cash proceeds to Borrower 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 with the Deed of Trust for the new first mortgage and
final Subordination Agreement to review and approve before the Subordination Agreement is executed by the CDC -
HA.
DEPARTMENT: Fusing, Grants, & Asset
ag� ent
APPROV
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:
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