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CITY COMMISSION AGENDA ITEM |
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Department: |
Community Development (PDS) |
Commission Meeting Date: 10/02/2018 |
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Staff Contact: |
Danelle Walters, Community Development Manager |
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Recommendations/Options/Action Requested: |
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Authorize the Mayor to sign a Release of Mortgage for Gabriel T. Gutierrez, 306 Clayton Court. |
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Executive Summary: |
Gabriel T. Gutierrez, 306 Clayton Court, participated in the Homeowners Out of Tenants (HOOT) Program in 2004 and the CDBG Emergency Loan Program in 2013. The house has sold, resulting in loan payoffs being returned to the City.
Based on the Emergency Loan and HOOT program processes, a mortgage was placed on the property. The balance of the mortgages becomes due when the property is no longer owner-occupied. The balance remaining from 2004 ($17,000.15) on the HOOT loan and the Emergency Loan ($1,600) were combined in 2013 into one mortgage totaling $18,600.15. That mortgage was filed on was 10/06/2013. There were no monthly payments required on the loan at that time.
On March 22, 2016 the City executed a Mortgage Modification agreement due to the discovery that Mr. Gutierrez no longer was the owner occupant of 306 Clayton Court. The Mortgage Modification was in the amount of $18,600.15 and was filed on 03/01/2016. The modification outlined that monthly payments in the amount of $330 would be paid until 3/21/19 with a balloon payment of the remaining balance due after. Because the home sold and payoff has been received by the City, the payments were stopped after the August 2018 payment cycle. The remaining balance of the loan after the August payment cycle was $9,385.15.
CDD staff received this payment in full on 9/17/18. The entire amount received will be recirculated in the CDBG and HOME programs to be used by eligible low-income homeowners.
Staff has verified that the mortgage provisions have been satisfied and the mortgage(s) should be released.
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Strategic Plan Critical Success Factor |
Safe, Healthy, and Welcoming Neighborhoods
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Fiscal Impact (Amount/Source): |
The fiscal impact to the City is $___0_____.
This is a CDBG Mortgage Note repayment that the City places back into the CDBG and HOME program for future allocation and use. |
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Attachments: |
None. |
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(for CMO use only) |
☐TM ☒DS ☐CT ☐BM |