MEMORANDUM

City of Lawrence

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:           October 5, 2011

RE:              Mortgage Release/Subordination Agreement

The following individuals participated in Community Development Division loan programs.  The mortgage provisions have been satisfied and the mortgage should be released.  

1) Delma Hepner, 1615 Rose Lane, participated in the Comprehensive Rehabilitation Loan Program in 1988.   

2) Mary Jo Spotts, 1901 Vermont, participated in the Comprehensive Rehabilitation Loan Program in 1985. 

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 1998, Jeanette Reiling, 1064 Home Circle, participated in the City’s First Time Homebuyer Loan 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. Reiling wishes to refinance the primary mortgage on the property and in order to do so the City must subordinate the lien to the new loan with CitiBank NA.  The City’s interest will be protected and staff recommends approval.

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