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Item D1 D.1 G BOARD OF COUNTY COMMISSIONERS County of Monroe Mayor Sylvia Murphy,District 5 The Florida Keys l'U � � Mayor Pro Tern Danny Kolhage,District 1 �pw° Michelle Coldiron,District 2 Heather Carruthers,District 3 David Rice,District 4 County Commission Meeting May 8, 2019 Agenda Item Number: D.1 Agenda Item Summary #5538 BULK ITEM: Yes DEPARTMENT: Social Services TIME APPROXIMATE: STAFF CONTACT: Sheryl Graham (305) 292-4510 N/A AGENDA ITEM WORDING: Approval of a Mortgage Subordination Agreement between the Monroe County State Housing Initiative Partnership (SHIP) Program and the US Department of Housing and Urban Development (HUD) in favor of A.H. of Monroe County, Inc., d/b/a Aids Help, Inc., in the amount of $200,00 for the rental rehabilitation of the property known as Seebol Place, 711 Catherine Street, Key West, Florida, 33040. ITEM BACKGROUND: Monroe County State Housing Initiative Partnership (SHIP)Program provided a SHIP Program Rental Rehabilitation Loan to Aids Help on 1/2/2009 in the amount of $200,000 for the rental rehabilitation of the property known as Seebol Place, 711 Catherine Street, Key West, Florida, 33040. The US Department of Housing and Urban Development (HUD) is willing to transfer their existing 1st lien in the amount of$200,201 from Marty's Place to Seebol Place provided that HUD obtains a 1st lien on the Seebol Place property and subordinating party (Monroe County) unconditionally supports the lien of its mortgage to the 1st first lien in favor of HUD. SHIP Rental Rehabilitation Note and Mortgage document 41736973, In Official Records Book 2407, at Page 244 of the Public Records of Monroe County, FL. PREVIOUS RELEVANT BOCC ACTION: N/A CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Recommend Approval DOCUMENTATION: SEEBOL PLACE FINANCIAL IMPACT: Packet Pg. 384 D.1 Effective Date: 5/8/2019 Expiration Date: N/A Total Dollar Value of Contract: $200,000 Total Cost to County: $0 Current Year Portion: $0 Budgeted: N/A Source of Funds: N/A CPI: N/A Indirect Costs: N/A Estimated Ongoing Costs Not Included in above dollar amounts: N/A Revenue Producing: NO, If yes, amount: N/A Grant: SHIP County Match: NO Insurance Required: N/A Additional Details: NO NO REVIEWED BY: Bob Shillinger Completed 05/01/2019 2:10 PM Budget and Finance Completed 05/01/2019 2:21 PM Kathy Peters Completed 05/01/2019 2:53 PM Board of County Commissioners Pending 05/08/2019 10:00 AM Packet Pg. 385 PREPARED BY/RETURN TO: Monroe Cmany SHIP Progrems C/o 411011roe C01611f V socialSenices 1100 sintopliorg Street Key West,rL 33040 MONROE COUNTY STATE HOUSING INTIATIVE PARTNERSHP PROGRAM(SHIP) MORTGAGE SUBORDINATION AGREEMENT A THIS AGREEMENT is made lins.130- day of APRIL,2019 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 U.S.Department of Housing and Urban Development,451 Th Street S.W., Washington,DC 20410,("Lender"),herein recite and declare that: 1. LENDER has made a mortgage loan(tile"Loan'I to:A.H.of Monroe County,Inc.,a Florida not for profit corporation,f/k/a Aids Help,Inc.,a Florida not for profit corporation ("Borrower")as evidenced by that certain Capital Advance Program Regulatory Agreement dated September 22, 1994 and Recorded September 22, 1994 in Official Records Book 1324,Page 0079 as E Public Records of Monroe County,originally encumbering those certain premises with a property address of 1512 Dennis Street,Key West,FL 33040 commonly known as MARTY'S PLACE.ADD CAPITAL ADVANCE MORTGAGE AND USE AGREEMENT Lender has approved the release of the Loan on MARTY'S PLACE,and transfer ofthe Loan to the real property located at7ll Catherine 0 Street,Key West,Florida 33040,commonly known as SEEBOL PLACE,which premises are situated in the COUNTY OF MONROE,FLORIDA,MORE fully described as follows: 0 ALL that certain lot,piece or parcel of land situated in the Cotaq-v of Monroe,City of Key West, State of lorida and contmonli,known cis SEEBOL PLACE,located at 711 Catherine Street.Key tilest,Florida,33040 and legally described as follows: LEGAL DESCRIPTION 0 �S Oil the Island of Key Brest and is pact of ract 12, according to Witt.A. Whitehead's Map of said Uj Island delineated in Februar),A.D. 1829,and is more particularly described as follows: 0 -J (L COMMENCING at a point on the southeasterly side afAinelia Street,which point is distant 213feer. -j 4 V2 inches Northeasier-Irfrom the corner afAfnelia Street and an alley,said corner being across 0 Amelia Srreer front the southerly corner ofthe Convert property,-thence run along the Southeasterl), Uj Uj side afilinelia Street in a Northeasterly direction a distance of7lfeet,I Vz inches;thence run at right U) angles in a southeasterl),direction 163 feet to Catherine Street,-then ran at right angles along Catherine Street in a Southwesterly direction 71 feet, V2 inches, thence run at right angles in a Northwesterly direction 163 to the point of Beginning. E 2. Borrower is transferring the Loan from MARTY'S PLACE to SEEBOL PLACE encumbering the Property with a first lien in the sum or$2041,201.00,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$200,000.00,dated JANUARY 22,2009,recorded on APRIL 3,2009 as document 1736973 in Official Records Book 2407 at Page 244 or the Public Records of Monroe County,Florida. 4. LENDER is willing to TRANSFER THE LOAN TO SEEBOL PLACE provided that LENDER obtains a first lien on the Properly 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[lie sum of One Dollar($1.00)and other good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged by Subordinating Party,and to induce LENDER to TRANSFER a loan to SEEBOL PLACEr,Subordinating Party hereby agrees with LENDER that the Mortgage securing the CAPITAL ADVANCE 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 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's Mortgage. Page-1- Packet Pg.386 D.1.a Subordinating Party further agrees that: I. Subordinating Party will not 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 maybe 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: U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AN:BRANCH CHIEF 400 WEST BAY STREE,STE 1015 JACKSONVILLE,FLORIDA 32092 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(together with"Future Advances"), shall be subject to the provisions ofthis Mortgage Subordination Agreement.The Mortgage securing the CAPITAL ADVANCE 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 lien 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 E successors and assigns. Subordinating Party waives notice of LENDER°s acceptance of this Agreement, q c 0 IN WITNESS WHEREOF,the undersigned has caused this instrument to be executed the day and year first above written. 0 MONROE COUNTY SHIP PROGRAM Subordinating Party Witnesses: v �.. 0 UJ By. ........ I Signature: SHERYL L.GRAHAM Print Name:MARLEE STECKLEY Monroe County SHIP Administrator a O o � to to State of Florida County of Monroe On this., ..;..._;_clay of APRIL,2019,before me,the undersigned,a Notary Public in and l`or said county, o personally appeared to me SHERYL L.GRAHAM,as Administrator of the Monroe County SHIP Program,and that the foregoing instrument was signed on behalf of said political subdivision of the State of Florida,and she C acknowledged the execution of said instrument to be the voluntary act and deed. Whness by hand and notary seal the day and year last above written. w pa ' sated NOTARY PU IC ' SEAL w 07l17 GG ROE OR D T R 8HIL11 R,JR. Page-2- Packet Pg.387