HomeMy WebLinkAboutResolutionRESOLUTION NO. 2014 —
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
WHEREAS, the Community Development Commission — Housing Authority of
the City of National City ("CDC -HA") made a loan for $19,400 to Mark A. Brown and E. Isabel
Brown on May 29, 2002 to assist in the purchase a single -unit property located at 101 East 9'h
Street in National City (the "Property"); and
WHEREAS, the CDC -HA loan has an outstanding balance of $19,400; and
WHEREAS, E. Isabel Brown ("Borrower) is interested in refinancing the debt on
the property and has been approved for a new loan with California Coast Credit Union
("Lender") that requires the CDC -HA to execute a Subordination Agreement allowing the new
loan to hold superior position to the CDC -HA loan; and
WHEREAS, Mark A. Brown, formerly married to E. Isabel Brown, is granting his
full interest in title to the Property to E. Isabel Brown before the close of Escrow and will not be a
borrower included on the new mortgage; and
WHEREAS, the purpose of the refinance is to allow the Borrower to reduce the
interest rate to 4.625% with no cash proceeds to the Borrower through the Escrow tied to the
refinance; and
WHEREAS, maintaining a second lien position pursuant to the Borrower
refinancing to a lower interest rate without cash -out acts to further preserve and secure the
CDC -HA interest in the Property.
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission — Housing Authority of the City of National City hereby authorizes the Chairman to
execute a Subordination Agreement in favor of a new First Trust Deed with California Coast
Credit Union as the 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 3rd day of June, 2014.
Ron Morrison, Chairman
ATTEST: APPROVED AS TO FORM:
Leslie Deese, Secretary Claudia Gacitua Silva
CDC General Counsel