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HomeMy WebLinkAbout2014 CON HA (Subordination Agreement) Mark & Isabel Brown - 101 E 9th StreetDOC# 2015-0208729 RECORDING REQUESTED BY: Stewart Title of California, Inc. WHEN RECORDED MAIL TO AND SEND TAX STATEMENTS TO: Community Development Commission -Housing Authority Attn: City Clerk 1243 National City Blvd. National City, Ca 91950 ORDER NO. 01180-149028 ESCROW NO. 01180-149028 APN: 556-472-29-00 II II II I II III 1 111 1 II I Apr 29, 2015 08:00 AM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $27.00 II SPACE ABOVE THIS LINE FOR RECORDERS USE SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT, THIS Agreement, made March 16, 2015, by Isabel Brown, owner of the land hereinafter described and hereinafter referred to as "Owner", and Community Development Commission of the City of National City, present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as "Beneficiary"; WITNESSETH THAT WHEREAS, Mark A. Brown and E. Isabel Brown, did execute a deed of trust, dated 05/29/2002, to Community Development Commission of the City of National City, as trustee covering: SEE EXHIBIT "A" ATTACHED HERETO to secure a note in the sum of 19,400.00, dated 05/29/2002, in favor of Community Development Commission of the City of National City, which deed of trust was recorded 05/31/2002, as Instrument No. 2002-0466155, in Book N/A, Page N/A, Official Records of said county; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of $160,000.00, dated t4- -9,tIS in favor of California Coast Credit Union, hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior to the lien or charge of the deed of trust first above mentioned; and WHEREAS, Lender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the deed of trust first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender; and WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner, and Beneficiary is willing that the deed of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned. NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows: File No.: 01180-149028 CA Subordination Agreement A Page 1 (1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein described, prior and superior to the lien or charge of the deed of trust above mentioned. (2) That Lender would not make its loan above described without this subordination agreement. (3) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the deed of trust first above mentioned to the hen or charge of the deed of trust in favor of Lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore specifically described, any prior agreement as to such subordination including, but not limited to, those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees and acknowledges that: (a) He consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan; (b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; (c) He intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the deed of trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above referred to and understands that in reliance upon, and in inconsideration of, this waiver, relinquishment and subordination, specific loans and advances are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (d) An endorsement has been placed upon the note secured by the deed of trust first above mentioned that said deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender above referred to. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN, A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND. IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. File No.: 01180-149028 CA Subordination Agreement A Page 2 BENEFICIARY: Community Development Commission -Housing APP Authoftty the City of National City ii Morrison, Chairman Clauacitu._Silva CDC -HA General Counsel A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which thls certificate Is attached and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego On before me Notary Public (here insert name and title of the officer) personally appeared who proved to me on the basis of satisfactory evidence to be the person(s), whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the Instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature OWNER Isabel Br wn A notary public or other officer completing this certificate verifies only the Identity of the Individual who signed the document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego Ong 41 r 3 - 1 5 before me 16-rr (Ai 1 Z,1 C-4C— Notary Public (here Insert name and title of the officer) personally appeared T-:.; ra B EA_ o-c` U(,) who proved to me on the basis of satisfactory evidence to be the person(s), whose name(s 1 a subscribed to the within instrument and acknowledged me that he hhey exectted the same in hiClherAheir authorized capacity(ies), and t at by his�ierftheir signatures) on -the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph Is true and correct. WITNESS my hand and Signature dal seal. File No.: 01180-149028 CA Subordination Agreement A (Seal) (Seal) KEVIN R. ZICK CoMM. # 2017525 NOTARY PUBLIC•CALIFORNIA in SAN DIEOO COUNTY � r;� MY COMM. E;iP. APR 30, 2017 "' A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego �kA On -' -p` 23r2O(S-before me, Angelita Marchante, Notary Public, personally appeared 'c2-e> (JLc,-r-el $ ale, who proved to me on the basis of satisfactory evidence to be the person(x) whose name(g) is/ape subscribed to the within instrument and acknowledged to me that he/spfe/thy executed the same in his/h f/thkir authorized capacity(ieS), and that by his/hef/thgif signature on the instrument the person(?), or the entity upon behalf of which the person(p'j acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ANGELITA MARCHANTE COMM. # 2046693 83 NOTARY PUBLIC.CALIFORNIA z SAN DIEGO COUNTY My Comm. Exp. October 25, 2017 (Seal) EXHIBIT "A" LEGAL DESCRIPTION Lot 1 inclusive, in the City of National City, County of San Diego, State of California, according to Map thereof No. 14245, filed in the Office of the County Recorder of San Diego County, July 6, 2001. Excepting therefrom all interest of the CDC in oil, gas, hydrocarbon substances and minerals of every kind and character Tying more than five hundred (500) feet below the surface, together with the right to drill into, through, and to use and occupy all parts of the site lying more than five hundred (500) feet below the surface thereof for any and all purposes incidental to the exploration for and production of oil, gas, hydrocarbon substances or minerals from said site or other lands, but without, however, any right to use either the surface of the site or any portion thereof within five hundred (500) feet or the surface for any purpose or purposes whatsoever, or to use the site in such a manner as to create a disturbance to the use or enjoyment of the site, as reserved in that certain Grant Deed recorded July 13, 2001, as File No. 2001-0485245 of Official Records. File No.: 01180-149028 CA Subordination Agreement A Page 4 RESOLUTION NO. 2014 — 24 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 9th 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, 29,14. Ron Morrison, Chairman ATTEST: APP ED � TO FORM: Leslie Deese, Secretary Cla J J' aci ."a Silva CDC Generi_. unsel Passed and adopted by the Community Development Commission — Housing Authority of the City of National City, California, on June 3, 2014 by the following vote, to -wit: Ayes: Boardmembers Cano, Morrison, Natividad, Rios, Sotelo-Solis. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Chairman, Housing Authority Secretary, Housing Authority By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2014-24 of the Community Development Commission — Housing Authority of the City of National City, California, passed and adopted on June 3, 2014. Secretary, Housing Authority By: Deputy c ao- 0 CITY OF NATIONAL CITY, CALIFORNIA ' ti o y . % - 3 COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY COUNCIL AGENDA STATEMENT 1EETING DATE: June 3, 2014 AGENDA ITEM NO.18 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: 619 336-4391 EXPLANATION: DEPARTMENT: Fusing, Grants, & Asset a\ages ent APPROV 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. 9th 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 .ransaction. 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. 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 !, �� vc� L, No. aa\y-ay Draft Subordination Agreement Attachment No. 1 RECORDING REQUESTED BY: Stewart Title of California, Inc. WHEN RECORDED MAIL TO AND SEND TAX STATEMENTS TO: Stewart Title of California, Inc. 7676 Hazard Center Drive Suite 1400 San Diego, CA 92108 ORDER NO. 01180-93880 ESCROW NO. 01180-93880 APN: 556-472-29-00 SPACE ABOVE THIS LINE FOR RECORDERS USE SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. THIS Agreement, made 05/08/2014, by Isabel Brown, owner of the land hereinafter described and hereinafter referred to as "Owner", and Community Development Commission of the City of National City, present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as "Beneficiary"; WITNESSETH THAT WHEREAS, Mark A. Brown and E. Isabel Brown, did execute a deed of trust, dated 05/29/2002, to Community Development Commission of the City of National City, as trustee covering: SEE EXHIBIT "A" ATTACHED HERETO to secure a note in the sum of $19,400.00, dated 05/29/2002, in favor of Community Development Commission of the City of National City, which deed of trust was recorded 05/31/2002, as Instrument No. 2002-0466155, Official Records of said county; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of $165,000.00, dated , in favor of California Coast Credit Union, hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior to the lien or charge of the deed of trust first above mentioned; and WHEREAS, Lender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the deed of trust first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender; and WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary is willing that the deed of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned. NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable .441110* File No.: 01180-93880 CA Subordination Agreement A Draft Subordination Agreement Attachment No. 1 consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows: (1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein described, prior and superior to the lien or charge of the deed of trust above mentioned. (2) That Lender would not make its loan above described without this subordination agreement. (3) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore specifically described, any prior agreement as to such subordination including, but not limited to, those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees and acknowledges that: (a) He consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan; (b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; (c) He intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the deed of trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above referred to and understands that in reliance upon, and in inconsideration of, this waiver, relinquishment and subordination, specific loans and advances are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (d) An endorsement has been placed upon the note secured by the deed of trust first above mentioned that said deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender above referred to. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN, A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND. IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. File No.: 01180-93880 CA Subordination Agreement A Draft Subordination Agreement BENEFICIARY: Community Development Commission of the City of National City Authorized Signer (Print Name) Authorized Signer (Sign name) State of California County of San Diego On before me Notary Public (here insert name and title of the officer) personally appeared who proved to me on the basis of satisfactory evidence to be the person(s), whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature OWNER: Isabel Brown State of California County of San Diego On before me Notary Public (here insert name and title of the officer) personally appeared who proved to me on the basis of satisfactory evidence to be the person(s), whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature iftispe File No.: 01180-93880 CA Subordination Agreement A (Seal) (Seal) Attachment No. 1 Draft Subordination Agreement Attachment No. 1 EXHIBIT "A" LEGAL DESCRIPTION Lot 1 inclusive, in the City of National City, County of San Diego, State of California, according to Map thereof No. 14245, filed in the Office of the County Recorder of San Diego County, July 6, 2001. Excepting therefrom all interest of the CDC in oil, gas, hydrocarbon substances and minerals of every kind and character lying more than five hundred (500) feet below the surface, together with the right to drill into, through, and to use and occupy all parts of the site lying more than five hundred (500) feet below the surface thereof for any and all purposes incidental to the exploration for and production of oil, gas, hydrocarbon substances or minerals from said site or other lands, but without, however, any right to use either the surface of the site or any portion t hereof within five hundred (500) feet or the surface for any purpose or purposes whatsoever, or to use the site in such a manner as to create a disturbance to the use or enjoyment of the site, as reserved in that certain Grant Deed recorded July 13, 2001, as Instrument No. 2001-0485245, of Official Records. File No.: 01180-93880 CA Subordination Agreement A RESOLUTION 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 9th 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