MEMORANDUM

City of Lawrence

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:           May 3, 2012

RE:              Mortgage Release/Subordination Agreement

The following individuals participated in a Community Development Division loan program.  The mortgage provisions have been satisfied and the mortgage should be released.  

1) Scott Sponholtz, 3116 Creekwood, participated in the First Time Homebuyer Program in 2005.   

2) Harold and Esther Hase, 1536 Powers, participated in the Emergency Loan Program in 1990.

The Community Development Division received a request for a Subordination Agreement for a lien the City holds for a loan recipient.  The information regarding the request follows:

In 2003, Christopher Tosh, 1529 Harper, participated in the City’s First Time Homebuyer Loan 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. Tosh 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 Capitol federal Savings Bank.  The City’s interest will be protected and staff recommends approval.

The City Clerk will have these documents ready for the Mayor's signature.  If you have further questions, please let me know.