HomeMy WebLinkAboutR-96-0342J-96-312 9 6- 342
4/10/96 RESOLUTION NO.
A RESOLUTION, WITH ATTACHMENTS, AUTHORIZING THE
CITY MANAGER TO EXECUTE A SUBORDINATION
AGREEMENT, IN SUBSTANTIALLY THE FORM ATTACHED, IN
CONNECTION WITH THE PENDING REFINANCING OF MR.
ROGER A. SNELLS' RESIDENCE LOCATED AT 920 N.W. LOTH
AVENUE, MIAMI, FLORIDA; AUTHORIZING THE CITY
MANAGER TO SUBORDINATE THE CITY'S EXISTING SECOND
MORTGAGE (SINGLE FAMILY REHABILITATION LOAN
PROGRAM) IN THE AMOUNT OF APPROXIMATELY $15,000 TO A
NEW PRIVATE FINANCIAL INSTITUTION IN THE AMOUNT OF
APPROXIMATELY $48,000. IN CONNECTION WITH THE
AFOREMENTIONED TRANSACTION.
WHEREAS, the City of Miami, through the Community Development Block
Grant (CDBG) Program funded by the U.S. Department of Housing and Urban
Development, has implemented the CDBG Assisted Single Family Rehabilitation Loan
Program (The "Program") for its residents in order to improve and maintain the City's
existing housing stock; and
WHEREAS, through the Program, the City of Miami makes available
rehabilitation assistance in the form grant in an amount not to exceed $15,000 and
$35,000 in the form of a loan to individuals and families that are eligible under the
Program guidelines; and
WHEREAS, in June of 1994, Mr. Roger Alan Snell received a rehabilitation
grant in the amount of $15,000 under the City's CDBG Assisted Single Family
CITY COMMISSION
MEETING OF
A T T A C I VI E N T (5) MAY 2 3 1996
Resolution No.
CONTAINED 96- 342
Rehabilitation Loan Program in connection with the rehabilitation of his residence
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located at 920 N.W. 10th Avenue, Miami, Florida; and
WHEREAS, in March of 1996, Mr. Snell made a request to the City for the
subordination of its existing second mortgage (grant) in the amount of $15,000 to a new
first mortgage from a private financial institution in an amount of approximately $48,000,
in connection with the purchase of a much needed wheelchair adapted van to replace his
current ten (10) year old vehicle ; and
WHEREAS, in an effort to assist Mr. Snell with the aforementioned request, City
Commission ratification of the said resolution is required; and
WHEREAS, the City Administration recommends approval of the said action by
the City Commission;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE
CITY OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Resolution
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are hereby adopted by reference thereto and incorporated herein as if fully set forth in this
Section.
Section 2. The City Manager is hereby authorized to execute a subordination
agreement, in substantially the form attached, in connection with the pending refinancing
of Mr. Roger Alan Snell's residence located at 920 N.W. 10th Avenue, Miami, Florida.
Further authorizing the City Manager to subordinate the City's existing second
The herein authorization is further subject to compliance with all requirements that may be imposed by
the City Attorney, including but not limited to those prescribed by applicable City Charter and Code
provisions.
96 342
mortgage/grant in the amount of approximately $15,000 to a new first mortgage loan
from a private financial institution in an amount of approximately $48,000.
Section 3. This Resolution shall become effective immediately upon its
adoption.
PASSED AND ADOPTED this 23rd day of
ATTEST:
WALTEA. J. F AN,
Ma
1996.
P. CLARK, MAYOR
CITY CL
PREPARED AND APPROVED BY:
i
LINDA KELLY KEA SON,
ASSISTANT CITY ATTORNEY
APPROVED AS TO FORM AND CORRECTNESS:
A. QJ JO ,III
CITY ATTO Y
i
96- 342
Honorable Mayor and Members
TO : of the City Commission
FROM : Ces 1
City er
i
RECOMMENDATIDN:
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
DATE : PPh 15 199.E FILE :
SUBJECT : Resolution Authorizing Execution
of Subordination Agreement -
Roger A. Snell
REFERENCES:
City Commission Agenda
ENCLOSURES Item - April 25, 1996
It is respectfully recommended that the City Commission adopt the attached resolution
authorizing the City Manager to execute a subordination agreement, in substantially the form
attached, in connection with the pending refinancing proposal submitted to the City by Mr.
Roger A. Snell for his residence located at 920 N.W. 1 Oth Avenue, Miami, Florida.
The attached resolution authorizes the City Manager to subordinate the City's second mortgage
lien in the amount of $15,000 to a new first mortgage loan from a private financial institution in
the amount of approximately $48,000.
BACKGROUND:
NET recommends ratification of the attached resolution, authorizing the City Manager to execute
a subordination agreement, in connection with the pending refinancing proposal submitted to the
City by Mr. Roger A. Snell for his residence located at 920 N. W. 1 Oth Avenue, Miami, Florida.
Since 1980, the City of Miami, through the Community Development Block Grant (CDBG)
Program has administered the CDBG Assisted Single Family Rehabilitation Loan Program for its
residents in order to improve and maintain the City's existing housing stock. Through the
Program, the City makes available home improvement financial assistance to owner -occupants in
the form of a grant not to exceed $15,000 and/or a loan not to exceed $35,000 per dwelling unit,
to individuals and families that are eligible under the Program's guidelines.
In June of 1994, Mr. Roger A. Snell received a home improvement grant in the amount of
$15,000 under the City's CDBG Assisted Single Family Rehabilitation Loan Program in
connection with the rehabilitation of his personal residence located at 920 N.W. IOth Avenue,
Miami, Florida. Under the Program, all grant recipients are required to maintain the property as
their principal place of residence for a period of not less than five (5) years from the date of the
GG^^ 96- 342
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Honorable Mayor and a
Members of the City Commission
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closing. The Program further allows for the forgiveness of $3,000 each year that the property
owner adheres to this requirement. In essence, the $15,000 in CDBG Program funds made
available to Mr. Snell in June of 1994 to renovate his personal residence will be totally forgiven
by the City in June of 1999 should he adhere to the Program's requirements. In the event the
property owner does not comply with this provision, the owner is required to repay the amount
provided by the City at an interest rate as stated in writing at the time of closing.
On March 7, 1996, Mr. Snell made a written request to the City to request the subordination of
the City's second mortgage (grant) in the amount of $15,000 to a new first mortgage from Prime
Mortgage Investors, Inc. in the amount of approximately $48,000.00. Currently, Prime
Mortgage Investors, Inc. holds a first mortgage on the property in the amount of approximately
$31,814.00. Mr. Snell is a quadriplegic and is seeking to refinance his personal residence in
order to use the cash equity to purchase a much needed wheelchair adapted van to replace his
current vehicle which is ten (10) years old.
In an attempt to assist Mr. Snell in enhancing his quality of life, City Commission ratification of
the attached resolution is recommended.
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SUBORDINATION AGREEMENT
THIS SUBORDINATION AGREEMENT, is made and entered into as of this _8th_
day of _ arch_, 1996,_by THE CITY OF MIAMI, a Florida municipal corporation (the
"City") and _Prime Mortgage Investor, Inc.,, a local corporation (the "Lender").
WITNESSETI._I:
WHEREAS, on, _June 8. 1994, ,Roger Alan Snellexecuted a mortgage in favor
of the City of Miami acting by and through the Director of the Department of Development of
NET/Housing Conservation filed under Clerk's File No. ____94R329977_ and recorded on
;July 8, 1994_ in Official Records Book _J6432_ Page _QL2_1_ of the Public Records of
Dade County, Florida, (hereinafter referred to as the "City's Mortgage") encumbering the
following described property:
Lot 18. South of Country Club addition, according to the Plat thereof, as recorded in Plat Book 8,
of Page 72 of the Public Records of Dade County, Florida
together with the improvements and fixtures thereon, and such other property as is specified
therein, hereinafter collectively referred to as the ("Subject Property"); and
WHEREAS, _Roger Alan Snell_ has executed another mortgage for the benefit of
Prime Mortgage Investors, Inc., a local Corporation (hereinafter referred to as the ("Lender")
located at 351 Minorca Avenue, Coral Gables_, Florida 33134, which also encumbers the
Subject Property (hereinafter referred to as the Lender's Mortgage); and
WHEREAS, the Lender will not close transaction nor make disbursements thereunder,
unless and until the Lender's Mortgage has priority over the City's Mortgage;
NOW THEREFORE, in consideration of the premises and in order to induce the Lender
to execute the Lender's Mortgage and make disbursement thereunder, the parties, hereby
covenant and agree as follows:
1. That the City is the present owner and holder of the City's Mortgage and that the City
has not assigned or in any way hypothecated, encumbered or transferred the City's Mortgage or
the promissory note or notes secured pursuant thereto to any whatsoever.
2. That the City's Mortgage, and any other right, title, interest, claim, lien or security
ivi�rt�a�;e.
3. That this Subordination Agreement is only to the extent of __Fortv�__oeis�ht th isatA_
and 00/100 dollars ($_48.000.00_), and any monies paid to Lender's Mortgage beyond that
amount shall be payable to the City for reduction of any amounts owed pursuant to the City's
Mortgage.
4. That, except for the limitation set forth in paragraph three (3) above, this
Subordination is a complete subordination in all respects, any provision contained in the City's
Mortgage to the contrary notwithstanding, and the Lender shall in no way be obligated to, and
shall in no way be affected by or governed by any provisions of City's Mortgage.
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IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed
by the respective officers thereunto duly authorized this day of , 19_.
Signed, sealed and delivered
in the presence of:
Witness
Witness
Witness
Witness
Approved as to form and
correctness:
A. Quinn Jones, III
City Attorney
CITY OF MIAMI, a municipal
corporation of the state of Florida. {
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CESAR H. ODIO, City Manager
A TTF.CT
I
STATE OF Florida )
) SS.
COUNTY OF Dade )
The foregoing instrument was acknowledge before me this day of
by Cesar H. Odio and Walter Foeman, as City Manager and City Clerk, respectively, of the City
of Miami who are personally known to me or who have produced
as identification and who did (did not) take an oath.
Notary Public, State of Florida