Memorandum

City of Lawrence

Planning and Development Services

TO:	Diane Stoddard, Interim City Manager
FROM:	Danelle Dresslar, Community Development Manager, Planning and Development Services
CC:	Scott McCullough, Director, Planning and Development Services
DATE:	June 24, 2015
RE:	Mortgage Release

Background:

The following home is 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 a property sale to go through for a new owner or for the refinance of an existing mortgage loan. 

1) Betty Colbert is refinancing her mortgage for 307 Illinois Street.  The new first mortgage will be held by Capitol Federal Saving. 

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 307 Illinois Street, if appropriate.

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