MEMORANDUM
Planning and Development Services Department
TO: David L. Corliss, City Manager
FROM: Margene K. Swarts, Assistant Director, Development Services
CC: Scott McCullough, Director, Planning and Development Services
DATE: June 10, 2009
The Community Development Division received a request for a Subordination Agreement for a lien the City holds for a loan recipient. The information regarding the request follows:
In 2008, Steven and Janice Sell, 1705 Bullene Avenue, participated in the Lawrence Community Housing Trust program with Tenants to Homeowners, Inc. In order to participate in the program, a lien agreement was required to protect the City’s interest in the property. The Sell’s wish to acquire an equity line of credit and the request is within the parameters of the TTH Housing Trust program. In order to do this, the City must subordinate its lien to the new loan with Capital Federal Bank. The City’s interest will be protected and staff recommends approval.
In 2002, Susan Bolton, 2015 Stratford Road, participated in the Comprehensive Housing Rehabilitation program. In order to participate in the program, she was required to sign a Mortgage and Mortgage Note to protect the City’s interest in the property. Ms. Bolton wishes to refinance her primary mortgage at a lower interest rate. In order to do this, the City must subordinate its lien to the new loan with Bank of America. The City’s interest will be protected and staff recommends approval.
The City Clerk will have the documents for the Mayor's signature. If you have further questions, please let me know.