Item C07U
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: 8/20/2008 - _._ Division: OMB
Bulk ltem: Yes xx No __-,. Staff Contact Person: Tina Boan
AGENDA ITEM WORDING:
Approval of a Resolution authorizing the write-off of CDBG mortgage not satisfied due to bankruptcy.
ITEM BACKGROUND:
On February 4, 1988 the County executed a CDBG mortgage and promissory note in the amount of
$286,000 with Amedeo DeSanctis, Delton Leigh and Victoria Leigh secured by property at Lot 7,
Block 1, Marathon Beach Subdivision, Monroe County, Florida. The mortgage and note were
subordinate to a $330,593 mortgage to Marine Bank. The debtors also executed a mortgage and
promissory note to HUD. In 1989, Economy Builders acquired a construction lien against the debtors
and the debtors went into bankruptcy subsequent to the entry of the construction lien. The bankruptcy
proceedings concluded in the early 1990's which leaves a current balance of $248,153.11. The only
asset which remained at the conclusion of the bankruptcy was a decrepit trailer for which the trustee of
the bankrupt assets obtained court approval to abandon. The accounts need to be cleared of this
uncollectible account in order for the books to more accurately reflect the County's fiscal status.
PREVIOUS RELEVANT BOCC ACTION:
5/21/08 BOCC and staff discussed existing mortgages held by the County which are not satisfied due to
bankruptcy and/or foreclosure considering the increasing number of bankruptcy and foreclosure cases in
the housing market.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATIONS:
Approval.
TOTAL COST: $286,000 Mortgage Note - Unpaid BUDGETED: Yes No xx
Write -Off Amount
COST TO COUNTY: $286,000 Unpaid to Country SOURCE OF FUNDS:
REVENUE PRODUCING: Yes _ No xx AMOUNT PER MONTH Year
APPROVED BY: County Atty sing Risk Management _
DOCUMENTATION: Included Not Required
DISPOSITION: AGENDA ITEM #
Revised 2/05
RESOLUTION NO. -2008
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA, AUTHORIZING WRITE-OFF
OF CDBG MORTGAGE NOT SATISFIED DUE TO BANKRUPTCY.
WHEREAS, on February 4, 1988, the Board of County Commissioners of Monroe
County (County), Florida, executed a CDBG mortgage and promissory note in the amount of
$286,000 with Amedeo DeSanctis, Delton Leigh, and Victoria Leigh, secured by property at Lot
7, Block 1, Marathon Beach Subdivision, Monroe County, Florida; and
WHEREAS, the mortgage and note were subordinate to a $330,593 mortgage to Marine
Bank; and
WHEREAS, the debtors also executed a mortgage and promissory note to HUD; and
WHEREAS, Economy Builders acquired a construction lien against the debtors in 1989;
and
WHEREAS, the debtors went into bankruptcy subsequent to the entry of the construction
lien; and
WHEREAS, the bankruptcy proceedings concluded in the early 1990's which leaves a
current balance of $248,153.11; and
WHEREAS, the only asset which remained at the conclusion of the bankruptcy was a
decrepit trailer for which the trustee of the bankrupt assets obtained court approval to abandon;
and
WHEREAS, the accounts need to be cleared of this uncollectible account in order for the
books to more accurately reflect the County's fiscal status;
NOW THEREFORE BE IT RESOLVED by the Board of County Commissioners of Monroe
County, Florida that:
Section 1. The $248,153,11 balance of the CDBG mortgage between DeSanctis, Leigh
and Leigh and the County is hereby recognized as uncollectible with no further remedies possible.
Section 2. The Clerk is hereby authorized to make such adjustments to the book of
accounts as is necessary to effect a write-off the outstanding debt.
DeSanctis Leigh Write -OFF
Section 3, This resolution shall be effective on August 20, 2008.
PASSED AND ADOPTED by the Board of County Commissioners of Monroe County,
Florida, at a regular meeting of said Board held on the 20th day of August, AD, 2008.
Mayor Mario DiGennaro
Mayor Pro Tern Charles "Sonny" McCoy
Commissioner Sylvia Murphy
Commissioner George Neugent
Commissioner Dixie Spehar
{SEAL}
Attest: DANNY L. KOLHAGE, Clerk
Deputy Clerk
303E COUNTY
PROVED AS i
SE -ANNE
coUN
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
Mayor Mario Di Gennaro
DeSanctis Leigh Write -OFF 2
County Commission
RESOLUTION NO. 111 -1988
A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE
LOAN AGREEMENTS AND ACCEPTANCE OF MORTGAGES
WITH RESPECT TO CDBG LOANS FOR THE REHA-
BILITATION OF LOW INCOME HOUSING AT THE ROCK
IN MARATHON.
WHEREAS, the Board of County Commissioners of Monroe County,
Florida, has previously authorized the acceptance of a grant from
the Department of Community Affairs to provide low interest loans
to developers to rehabilitate low income housing at the Rock in
Marathon; and
WHEREAS, the Commission has further authorized the hiring of
an administrator to administer the grant, to -wit Paul Wick; and
WHEREAS, two loan agreements have been negotiated on behalf
of the County to Delton Leigh and Associates and Clinton LeBaron
and Associates for the purpose of lending money procured from
CDBG to provide for refurbishing and rehabilitating of low income
housing at the Rock; now, therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA, as follows:
That the Board of County Commissioners of Monroe 4unty,
Florida does hereby authorize the Mayor to execute the loan
agreements attached hereto for the above -stated purposes.
PASSED AND ADOPTED by the Board of County Commissioners,of
Monroe County, Florida, at a regular meeting of said hoard held
on the _� day of - NU_kl-, , A.D. , 1988.
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
&'i"
Mayor/ airman
(SEAL)
Attest: DANNY L_ SOLHAGE, Clerk
gPPR0 TCS Fti fJ
A ND L FFIC6� Cy.
er c or
Auamajs Office
THIS AGREEMENT made this day of , A.D.,
1988, between MONROE COUNTY, a political subdivision of the State
of Florida, hereinafter called LENDER, and DELTON LEIGH and
VICTORIA LEIGH, his wife, and AMEDEO DE SANCTIS, hereinafter
called BORROWERS; which term shall include the heir, successors,
assigns, and personal representatives of the respective parties
wherever and whenever applicable,
W I T N E S S E T H:
1. That the LENDER agrees to lend and the BORROWERS agree
to borrow the sum of Two Hundred Eighty-six Thousand
($286,000.00) Dollars upon the terms and conditions as hereinaf-
ter set forth.
2. That the loan shall be for a period of Fifteen (15)
years, payable in 180 monthly installments and bearing interest
at Three (3%) percent per annum.
3. The loan shall be secured by a second mortgage on the
following described property, subordinated only to a first
mortgage in favor of the Marine Bank of Monroe County in the
amount Three Hundred Thirty Thousand Five Hundred Ninety-three
($330,593.00) Dollars:
Lot 7, Block 1, Marathon Beach Subdivision,
according to the plat thereof recorded in
Plat Book 2, page 16, of the Public Records
of Monroe County, Florida.
4. The BORROWERS shall at their expense furnish to the
LENDER a mortgagee title insurance policy certifying that the
mortgage made hereunder is a valid second lien against the
property superior in dignity to all other liens save the first
mortgage hereinbefore mentioned. BORROWERS further agree to pay
all taxes, recording fees or other charges imposed by lawful
authority as a consequence of this mortgage.
S. The Parties agree that the funds to be loaned hereunder
shall be used exclusively for improving and rehabilitating the
structures located on the subject property and for no other
purpose.
6. The Parties agree that the funds shall be disbursed to
the BORROWERS in accordance with the draw schedule attached
hereto and that all required practices and procedures of the
Florida Mechanics Lien law with respect to affidavits and notices
shall be followed by the BORROWERS and their contractor.
7. During the life of the mortgage to be given pursuant to
this Agreement, the BORROWERS agree to keep the property avail-
able as "Affordable Housing" as that term is defined in the
Monroe County Comprehensive Land Use Plan and Land Development
Regulations, especially Section 9-306.
8. The BORROWERS further agree to keep the rentals within
the limits prescribed by said Plan and to increase them only in
accordance with such permission as the LENDER may grant.
9. The funding for this loan is provided for from a
Community Development Block Grant. The BORROWERS agree to follow
all Federal, State and County regulations concerning such pro-
grams and to execute any and all documents and affidavits which
may be required in connection therewith now or in the future in
order to ensure compliance with said Plans.
10. The obligation to maintain the subject property as
"Affordable Housing" shall continue and shall run with the land
during the fifteen (15) year term of this mortgage. In the event
the property is sold or involuntary transfer of any sort takes
place the BORROWERS agree that nevertheless the obligation to
maintain the property as "Affordable Housing" shall continue
until the term of the mortgage is complete. in the event that
the mortgage or any condition thereof is breached by the BORROW-
ERS or their successors in interest in that event all impact fees
previously waived shall immediately become due and payable and
the mortgage may at the option of the LENDER become due and
payable in a like manner.
11. The BORROWERS agree that they will annually furnish to
the LENDER an affidavit certifying that all tenants currently
occupying units on the mortgaged property qualify under the
2
"Affordable Housing" standards of the County and shall catalogue
the amount collected as rent from each such tenant.
(SEAT,)
Attest:
Clerk
witnesses
RL/ j eh
BOARD OF COUNTY COMMISSIO:
OF MONROE COUNTY, FLORIDA
By �'' /•
ayor rman
3
Ara �L
j."r '!c'i.C3:
CY _