Memorandum

City of Lawrence

Planning and Development Services

TO:	David L. Corliss, City Manager
FROM:	Danelle Dresslar, Community Development Manager, Planning and Development Services
CC:	Scott McCullough, Director, Planning and Development Services
DATE:	July 29, 2014
RE:	Mortgage Subordination

Background:

The following homes are included in the Lawrence Community Housing Trust program administered by Tenants to Homeowners.  Under the resale requirements for the Lawrence Community Housing Trust, the lien held by the City must be subordinated in order for the property sale to go through for the new owner. 

1) Adam Linville is purchasing 302 Alabama Street.  The first mortgage will be held by Truity Credit Union. 

2) Morgan Seaman and Pilar D’Asto are purchasing 1233 Laura.  The first mortgage will be held by Truity Credit Union.

The Lawrence Community Housing Trust (LCHT) separates ownership of the house from ownership of the land the house sits on.  Tenants to Homeowners and the City will have continued interest in the land under the new owners.  The LCHT ensures permanent affordability for the homes.

Staff Recommendation:

The City’s interest will be protected and staff recommends approval. 

Action:

Approval of the mortgage Subordination Agreement for 302 Alabama Street, if appropriate.

Approval of the mortgage Subordination Agreement for 1233 Laura, if appropriate.

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