Memorandum

City of Lawrence

Planning and Development Services

TO:	Thomas M. Markus,  City Manager
FROM:	Danelle Dresslar, Community Development Manager, Planning and Development Services
CC:	Scott McCullough, Director, Planning and Development Services
DATE:	April 27, 2016
RE:	Mortgage Release

Background:

The following individual(s) participated in a Community Development Division loan program. 

1) David and Julia Atwood, 216 Alabama Street, participated in the Homeowners Out of Tenants (HOOT) program in 2005.

Based on the program the individual(s) participated in, a mortgage was placed on the property.  The balance is due when the property is no longer owner-occupied, however occasionally circumstances arise where the City is asked to release the mortgage so the home can be purchased by Tenants to Homeowners and placed in the Lawrence Community Housing Trust (LCHT), thus keeping the property permanently affordable.  Staff has determined the best course of action on this loan, due to the owner’s current circumstances, is to release this mortgage, allowing Tenants to Homeowners to purchase the property.  This release will allow the home to be converted to the LCHT and will allow for housing opportunities to low-income renters.

Staff Recommendation:

The mortgage amount due can be waived in the interest of affordable housing and the mortgage(s) should be released.

Action:

Authorize the Mayor to sign the Release of Mortgage for David and Julia Atwood, 216 Alabama Street.

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