Item U1
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: January 15,2003
Division: Monroe County Housing Authority
Bulk Item: Yes X
No
Department:
AGENDA ITEM WORDING: A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA AUTHORIZING THE MONROE COUNTY
STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM ADMINISTRATOR TO
EXECUTE A SUBORDINATION AGREEMENT ON BEHALF OF FIRST TIME HOMEBUYERS
JOSE AND JULIETTE TORRES, 16H MIRIAM STREET, STOCK ISLAND, IN ORDER TO
REFINANCE THE EXISTING PRIMARY MORTGAGE AT IMPORVED TERMS.
ITEM BACKGROUND: The applicants constructed a home on Stock Island in 2001-2002 with the
benefit of Monroe county ship program funds. The property is subject to a no interest deferred payment
subordinate second mortgage to Monroe County in the amount of $20,000.00. Unanticipated cost in
construction and finishing the project have left the applicants in difficult financial position which would
be alleviated by refinance of the existing primary mortgage without increased risk to the County's
secured mortgage position.
PREVIOUS RELEVANT BOCC ACTION:
None
CONTRACT/AGREEMENT CHANGES:
None
STAFF RECOMMENDATION:
Approval. Approval based upon review of proposed mortgage loan terms, settlement statement,
loan/debt ratios and property appraisal. 80% combined LTV with $1,656 improved cash flow.
TOTAL COST:
COST TO COUNTY:
$-0-
$-0-
BUDGETED: Yes No
SOURCE OF FUNDS: N/A
REVENUE PRODUCING: Yes
No X
AMOUNT PER: Month
APPROVED BY:
Year
Risk Management_
DIVISION DIRECTOR APPROV AL:
anuel Castillo, Executive Director
Monroe County Housing Authority (SHIP Administrator)
DOCUMENTATION:
Included
To Follow
Not Required_
AGENDA ITEM # -'IL
DISPOSITION:
RESOLUTION
- 2003
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY,
FLORIDA AUTHORIZING THE MONROE COUNTY STATE HOUSING INITIATIVES
PARTNERSHIP (SHIP) PROGRAM ADMINISTRATOR TO EXECUTE A SUBORDINATION
AGREEMENT ON BEHALF OF FIRST TIME HOMEBUYERS JOSE AND JULIETTE TORRES,
16H MIRIAM STREET, STOCK ISLAND, IN ORDER TO REFINANCE THE EXISTING PRIMARY
MORTGAGE AT IMPORVED TERMS.
WHEREAS, Monroe County provided Jose and Juliette Torres, 16H Miriam Street, Stock Island, a no
interest, deferred payment subordinate mortgage loan in the amount of $20,000.00 under the Monroe
County State Housing Initiatives Partnership (SHIP), First Time Homebuyers Program, for the purpose
of constructing a owner-occupied, single family home, and;
WHEREAS, the costs of construction improvements and finishes exceeded the initial estimates,
requiring additional debt and causing the applicants to request a restructuring of the existing primary
mortgage and a subordination of the existing SHIP loan to the new primary lender, and;
WHEREAS, the proposed primary mortgage loan provides terms favorable to the borrower (improved
rate and cash flow), and;
WHEREAS, sufficient equity exists (80% CL TV) and the proposed loan meets standard industry
underwriting criteria (DR%) to sufficiently continue to protect Monroe County's secured mortgage
position.
NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners of Monroe County,
Florida, that the County hereby:
Authorizing the Monroe County State Housing Initiatives Partnership (SHIP), Administrator to execute
a subordination agreement, which is attached hereto as "Exhibit A, "on behalf offirst time homebuyers
Jose and Juliette Torres, 16H Miriam Street, Stock Island, in order to refinance the existing primary
mortgage.
PASSED AND ADOPTED, by the Board of County Commissioners of Monroe County, Florida at a
regular meeting of said Board on the _ day of , A.D., 2002
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
Mayor Spehar
Commissioner Nelson
Commissioner Nugent
Commissioner Reich
Commissioner Rice
By:
Mayor/Chairman Spehar
SEAL
ATTEST:
Approved as to form and legal sufficiency:
Date:
Page 1 of 1
F;)(.~I SIT A
AGREEMENT TO SUBORDINATE LOAN
THIS AGREEMENT made this day of 200_ between MONROE COUNTY,
herein referred to as "Lienholder," having its principal office at Monroe County Courthouse, 500 Whitehead
Street, Key West, FL 33040, and Independent Mortgage and Finance (IMF), herein referred to as
"Lender," a Banking Corporation organized under the laws of the State of Florida.
THE PARTIES STIPULATE AND RECITE THAT:
A. By reason of that Mortgage given by Lienholder to Jose L. Torres and Juliette B. Torres, a
married couple, hereinafter referred to as "Owner," in the amount of TWENTY THOUSAND DOLLARS
AND NO CENTS ($20,000.00) dated the 30th day of March 2002 and recorded the 17th day of May 2002 in
Official Records Book 1785 Page 1109 upon the property hereinafter described,
Lot 16, Block 14, UNCOLN GARDENS #2
Which has the street address of H-16 Miriam Street, Key West, FL 33040
B. Owner desires to negotiate a loan from Lender, and Lienholder acknowledges that such loan is
in his best interest.
C. Lender is willing to loan money to Owner if Lienholder will subordinate his present lien
against the above-described property of Owner.
FOR THE REASONS SET FORTH ABOVE AND IN CONSIDERATION OF THE MUTUAL
COVENANTS AND PROMISES OF THE PARTIES HERETO, LIENHOLDER AND LENDER AGREE AS
FOLLOWS:
The lien of Lienholder against the above-described property of Owner shall be subordinate to the claim
of Lender under the Mortgage Deed (security agreement) executed by Owner, dated the _ day of
2002 and recorded on the day of 2002 in O.R. Book , Page _
, of the Public Records of Monroe County, Florida. Future loans made by Lender to Owner shall
not be subordinate to the claims of Lienholder.
Lienholder shall assign to Lender all sums presently due to Lienholder from Owner until the above-
described loan of Lender is paid in full. Lienholder shall execute such additional assignments as Lender may
require to give effect to this agreement.
IN WITNESS WHEREOF, the parties have executed this agreement at Monroe County, State of
Florida, the day and year first above written.
Page 1 of2
Lienholder Initials
Lender Initials
MONROE COUNTY
Witness Signature
Printed Name:
Witness Signature
Printed Name:
By:
J. Manuel Castillo, SHIP Administrator
STATE OF FLORIDA
COUNTY OF MONROE
The foregoing instrument was acknowledged before me this day of 2002 by _
who is personally known to me or who produced
as identification and who did not take an oath.
SEAL
NOTARY PUBLIC SIGNATURE
Printed Name of Notary:
Commission No.:
My Commission Expires:
Independent Mortgage and Finance (IMP)
Witness Signature
Printed Name:
By:
Title:
Witness Signature
Printed Name:
STATE OF FLORIDA
COUNTY OF MONROE
The foregoing instrument was acknowledged before me this day of 2002 by_
who is personally known to me or who produced
as identification and who did not take an oath.
SEAL
NOTARY PUBLIC SIGNATURE
Printed Name of Notary:
Commission No.:
My Commission Expires:
Page 2 of 2