MEMORANDUM
Planning and Development Services Department
TO: David L. Corliss, City Manager
FROM: Margene K. Swarts, Assistant Director, Development Services
CC: Scott McCullough, Director, Planning and Development Services
DATE: February 1, 2011
RE: Subordination Agreement
The Community Development Division received requests for Subordination Agreements for liens the City holds for loan recipients. The information regarding the requests follow:
In 1994 and 1995, Russell and Carol Beeson, 507 Louisiana, participated in the City’s Emergency Loan Program and the Comprehensive Housing Rehabilitation Program. In order to participate in the programs, they were required to sign a mortgage and mortgage note to protect the City’s interest in the property. The Beeson’s wish to refinance the primary mortgage on the property and in order to do so the City must subordinate the liens to the new loan with Midwest Regional Credit Union. The City’s interest will be protected and staff recommends approval.
In 1999, Bill Rich, 1512 E. 13th Street, participated in the City’s First Time Homebuyer Program. In order to participate in the program, he was required to sign a mortgage and mortgage note to protect the City’s interest in the property. Mr. Rich wishes to refinance the primary mortgage on the property and in order to do so the City must subordinate the lien to the new loan with U.S. Bank National Association. The City’s interest will be protected and staff recommends approval.
The City Clerk will have the documents for the Mayor's signature. If you have further questions, please let me know.