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CITY COMMISSION AGENDA ITEM |
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Department: |
Community Development (PDS) |
Commission Meeting Date: 11/20/2018 |
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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 Lien for the Lawrence Community Housing Trust property at 1108 Connecticut Street.
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Executive Summary: |
1108 Connecticut Street is a Lawrence Community Housing Trust property. This property is being refinanced by the current owner.
Based on the Lawrence Community Housing Trust (LCHT) agreement, a Lien was placed on the land on 10/3/2005 to preserve a required ten year HUD Period of Affordability. As properties are resold/refinanced in the LCHT the lender requires a release of the original lien on the land so the home can be resold by the Lawrence Community Housing Trust to an income-eligible buyer, or refinanced by the current occupant. If there is a new HUD-mandated Period of Affordability or remaining time on the current Period of Affordability a Deed Restriction is placed on the property to define the mandated affordability expectations. The HUD-mandated period of affordability with this property expired on 1/24/2016. Because the Period of Affordability has passed, the current recorded lien “shall cease to have any force or effect after that time.” Staff does not secure a second Period of Affordability for a refinance if the original Period of Affordability has passed. The LCHT continues to enforce permanent affordability on all their projects by their land lease requirements.
Staff is recommending the non-enforceable lien be released because the HUD-mandated Period of Affordability has passed and the ownership is remaining the same.
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Strategic Plan Critical Success Factor |
Safe, Healthy, and Welcoming Neighborhoods
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Fiscal Impact (Amount/Source): |
There is no fiscal impact to the City. |
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Attachments: |
None. |
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(for CMO use only) |
☐TM ☒DS ☐CT ☐BM |