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:	July 10, 2015
RE:	Subordination of Mortgages

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

1. Alex and Amber Hansen are purchasing 2527 Ryan Court.  The new first mortgage will be held by Truity Credit Union.

2. Tricia Klein is purchasing 1705 Bullene Street.  The new 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:

Authorize the Mayor to sign Subordination Agreements for Alex and Amber Hansen, 2527 Ryan Court and Tricia Klein, 1705 Bullene Street.

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