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:	October 9, 2014
RE:	Mortgage Subordination

Background:

The following individuals participated in a Community Development Division loan program. 

1) Clayton McHenry, 936 Pennsylvania, participated in the Comprehensive Rehabilitation Program in 2011.

In order to participate in the program, they were required to sign a mortgage and mortgage note to protect the City’s interest in the property.  Mr. McHenry wishes to finance a primary mortgage on the property.  In order to do so the City must subordinate the lien to the loan with Capitol Federal Savings. 

Staff Recommendation:

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

Action:

Approval of the mortgage Subordination Agreement for Clayton McHenry, 936 Pennsylvania, if appropriate.

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