Resolution 045A-2014RESOLUTION 045A- 2014
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE
COUNTY, FLORIDA AUTHORIZING THE EXECUTIVE DIRECTOR OF THE MONORE
COUNTY HOUSING AUTHORITY TO EXECUTE MORTGAGE SUBORDINATION
DOCUMENTS FOR THE COUNTY'S 2008 DISASTER RECOVERY AND THE 2010
SMALL CITIES CDBG AWARDS FOR THE PURPOSE OF ALLOWING THE
REFINANCING OF EXISTING FIRST MORTGAGE LOANS WHEN CERTAIN
CONDITIONS HAVE BEEN MET; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Monroe County Housing Authority is the County's Program
Administrator for the 2008 Disaster Recovery and the 2010 Small Cities CDBG programs with a
fiduciary responsibility to act in the best interest of Monroe County; and
WHEREAS, the Executive Director of the Monroe County Housing Authority has been
authorized to subordinate Monroe County SHIP loans since February 13, 2002 via BOCC
Resolution 078 -2002; and
WHEREAS, recipients of CDBG Disaster Recovery and 2010 Small Cities CDBG
housing rehabilitation or sewer connection loans are being required to pay off their loans due to
the time constraints for closing imposed by the lending; institutions; and
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA that:
The Monroe County Board of'Coaenty Commissioners hereby authorizes the Executive Director
of the Monroe County Housing authority to execute mortgage subordination
agreements in the form attached hereto as Exhibit A when the following
conditions are present:
(a) The proposed first mortgage loan has a rate or other terms that is an improvement in the
rate or terms of the existing first mortgage loan;
(b) The amount of the proposed f rst mortgage loan does not exceed the sum of the existing
mortgage loan payoff 'and reasonable closing costs as documented on a proposed HUD I
Settlement Statement, -
(c) The sum of the proposed f rst mortgage and the existing 2005 Disaster Recovery or 2010
Small Cities CDBG loan does not exceed 105'% of the value of the property as reflected
on a property appraisal;
(d) Or the first mortgagee loan is in default and has requested subordination of'the county's
position to implement a resolution of the default vMich , tivhen implemented would cure the
default.
PASSED AND ADOPTED by the Board of County Commissioners of
Monroe County, Florida at a regular meeting of said Board on the 19` day of February, 2014.
Mayor Sylvia Murphy Yes
Mayor Pro Tern Danny Kolhage Yes
Commissioner George Neugent Yes
Commissioner Heather Carruthers Yes
Commissioner David Rice Yes
BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA
BY: ¢�
Mayor Sylvia Murphy
N
S, O
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Approved as to legal sufficiency: rQ
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Date:
3
RESOLUTION NO. 078 -2002
A RESOLUTION AUTHORIZING THE MONROE COUNTY'S STATE
HOUSING INITIATIVES PARTNERSHIP (SHIP) ADMINISTRATOR
TO EXECUTE SHIP MORTGAGE SUBORDINATION DOCUMENTS
UNDER CERTAIN CONDITIONS FOR THE PURPOSE OF
ALLOWING THE REFINANCE OF EXISTING PRIMARY
MORTGAGE LOANS AT IMPROVED TERMS
WHEREAS, the Special Programs Office, Monroe County Housing Authority is the County's
program administrator for the State Housing Initiatives Partnership (SHIP) Program, with a fiduciary
responsibility to act in the best interest of Monroe County; and,
WHEREAS, the Director of the Special Programs Office is designated as Monroe County
SHIP Administrator; and,
WHEREAS, the Monroe County SHIP Program has made subordinate mortgage loans under
the First Time Homebuyers Program annually since 1994 resulting in over 177 mortgage loans; and,
WHEREAS, the Florida Housing Finance Corporation has adopted the criteria set forth below
when considering a subordination request from mortgage borrowers under the Corporation's HOME
Single Family Programs; and,
WHEREAS, presently the time required to secure a Mortgage Subordination of an existing
Monroe County SHIP mortgage is greater than time available to borrowers primary mortgage loan
commitment/rate lock; and,
WHEREAS, the current process for approval of SHIP Mortgage Subordination discourages
SHIP Mortgagees from trying to secure improved primary mortgage terms
NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners of
Monroe County Florida tat Monroe County hereby:
THE Monroe County SHIP Administrator is hereby authorized to execute Mortgage Subordination, in
the form attached hereto as Exhibit "A" of existing Monroe County SHIP mortgage loans when the
following conditions are present:
(a) The proposed primary mortgage loan has a rate or other terms that is an improvement in the rate or
terms of the existing primary mortgage loan.
(b) The amount of the proposed primary mortgage loan does not exceed the sum of the existing
mortgage loan payoff and the closing costs as documented on a proposed HUD -1 Settlement
Statement.
(c) The sum of the proposed primary mortgage and the existing SHIP mortgage loan does not exceed
105% of the value of the property as reflected on a property appraisal.
Page 1 of 2
Upon execution and recording of all such Mortgage Subordination shall be forwarded to and retained
by the Monroe County Clerk of Court.
PASSED AND ADOPTED, by the Board of County Commissioners of Monroe County, Florida at a
regular meeting of said Board on the 13th day of February 2002.
May or •
Mayor • • Tem Spe
BOARD OF CQ"TY COMMISSIONERS
OF MONROE TY, FLORIDA
Yes
Yes By.
Yes Charles "Sonny" McCoy, Mayor
Yes
Absent
:)LHA t�e' o ClOrk'
APPROVED AS TO FOW
Approved as to form and legal sufficiency A EGAL SUFFI
UZANN A. HUTTON
DATE L
'VIJ 'Jl1N000 30800
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PREPARED BY/RETURN TO:
Monroe CounlyDisaster Recoveryand
Small Cities CDBGPrograms
C/o Monroe County Housing Authority
1400 Kennedy Drive
Key West, FL 33040
EXHIBIT "A"
MONROE COUNTY DISASTER RECOVERY AND
SMALL CITIES CDBG PROGRAMS
MORTGAGE SUBORDINATION AGREEMENT
THIS AGREEMENT is made this day of , 2014, by MONROE COUNTY, FLORIDA a
political subdivision of the State of Florida, ( "Subordinating Party"), whose address is 1100 Simonton Street, Key
West, Florida 33040, and is being given to (NAME
AND ADDRESS OF NEW FIRST MORTGAGE LENDER) ( " Lender "), herein recite and declare that:
1. LENDER is making a mortgage loan (the "Loan ") to: , a
, ( "Borrower") in connection with the financing of certain premises
with a property address of , which
premises are situated in the COUNTY OF MONROE, FLORIDA, fully described as follows:
LEGAL DESCRIPTION
2. Borrower is refinancing the Property and is about to execute a Mortgage in the sum of
$ (AMOUNT OF NEW FIRST MORTGAGE), in favor of the LENDER.
3. Subordinating Party now owns or holds an interest as mortgagee of the property pursuant to the
provisions of that certain Mortgage Deed, in the original principal sum of $ , dated
, recorded on as document in
Official Records Book at Page of the Public Records of Monroe County,
Florida.
4. LENDER is willing to make such loan to Borrower provided that LENDER obtains a first lien on
the Property and Subordinating Party unconditionally subordinates the lien of its Mortgage to the
lien in favor of LENDER in the manner hereinafter described.
NOW, THEREFORE, in consideration of the sum of One Dollar ($1.00) and other good and valuable
consideration, the receipt and sufficiency of whichare hereby acknowledged by Subordinating Party, and to induce
LENDER to make a loan to Borrower, Subordinating Party hereby agrees with LENDER that the Mortgage securing
the Note in favor of LENDER, and any renewals, extensions or modifications of it, willbe and shall remain a lien on
the Property prior and superior to the lien in favor of Subordinating Party in the same manner as if LENDER's
Mortgage has been executed and recorded prior in time to the execution and recordation of the Subordinating Party§
Mortgage.
Subordinating Party further agrees that:
1. Subordinating Party will riot exercise any foreclosure rights with respect to the Property, will not
accept a deed in lieu of foreclosure, and will not exercise or enforce any right or remedy which
may be available to Subordinating Party with respect to the Property, without at least thirty (30)
days' prior written notice to LENDER. All such notices shall be sent to:
Page -1-
Name of first mortgage company
Address
2. Any future advance of funds or additional debt that may be secured by the Subordinating Party's
Mortgage including, without limitation, additional debt created by any shared appreciation or
negative amortization provisions of the Subordinating Party's Mortgage (togetherwith "Future
Advances "), shall be subject to the provisions of this Mortgage Subordination Agreement. The
Mortgage securing the Note in favor of LENDER and any renewals, extensions or modifications of
it, will be and shall remain a lien on the Property prior and superior to any liar for Future
Advances.
3. This Agreement is made under the laws of the State in which the Property is located. It cannot be
waived, changed, or terminated, except by a writing signed by both parties. This Agreement shall
be binding upon Subordinating Party and the heirs, representatives, successors and assigns of
Subordinating Party, and shall inure to the benefit of, and shall be enforceable by LENDER and its
successors and assigns. Subordinating Party waives notice of LENDER's acceptance of this
Agreement.
IN WITNESS WHEREOF, the undersigned has caused this instrument to be executed the day
and year first above written.
MONROE COUNTY DISASTER RECOVERY
OR SMALL CITIES CDBG PROGRAM
Subordinating Party
Witnesses:
By:
J. Manuel Castillo, Sr.
Print Name: Executive Director
State of Florida
County of Monroe
On this day of , 2014, before me, the undersigned, a Notary Public in and for said
county, personally appeared to me J. Manuel Castillo, Sr., Executive Director of the Monroe County Housing
Authority, and that the foregoing instrument was signed on behalf of saidpolitical subdivision of the State of Florida,
and he acknowledged the execution of said instrument to be the voluntaryact and deed.
Witness by hand and notary seal the day and year last above written.
NOTARY PUBLIC
SEAL
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