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:	November 18, 2014
RE:	Mortgage Subordination

Background:

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

1) John F. Kelley and Lynn L. Kelley, 927 Lawrence Avenue, participated in the Furnace Loan Program in 2012.

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. and Mrs. Kelley wish to refinance a primary mortgage on the property.  In order to do so the City must subordinate the lien to the loan with Bank of America Home Loans. 

Staff Recommendation:

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

Action:

Authorize the Mayor to sign a Subordination Agreement for John F. Kelley and Lynn L. Kelley, 927 Lawrence Avenue.

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