Item M2
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
March
Meeting Date:
j116, 2005
Division:
Monroe County Housing Authority
Bulk Item: Yes X
No
Department: Special Programs Office
AGENDA ITEM WORDING: A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF MONROE COUNTY, FLORIDA PROVIDING FOR A SUBORDINATION
OF MORTGAGE FOR PROPERTY ENCUMBERED BY A MORTGAGE TO MONROE COUNTY
IN CONJUNCTION WITH TIIE MONROE COUNTY STATE HOUSING INITIATIVES
PARTNERSHIP (SHIP) PROGRAM.
ITEM BACKGROUND: The Monroe County SHIP Program provided funding in the amount of
$50.000 for the rehabilitation to 5 of 7 units of affordable rental property located at 3918 Gulfview
Avenue. Marathon. In consideration of SHIP funding, the property is subject to a mortgage to Monroe
County in the amount of $50.000. The property is subject to affordability restrictions contained in the
mortgage. The Owner requests a Subordination of Mortgage in order to refinance the existing primary
mortgage and borrow against the additional equity in the property in the amount of $20.000 for the
purposes of completing improvements to the remaining and currently uninhabitable two previously
unimproved affordable units. These units would be occupied as affordable rentals and subject to the
conditions oftbe existing Monroe County mortgage.
PREVIOUS RELEVANT BOCC ACTION: N/A
CONTRACT/AGREEMENT CHANGES: N/A
STAFF RECOMMENDATION: Approval. Note: The proposed CLTV after additional private
financing would be 800,/0. This is the maximum allowable under industry norms and SHIP mortgage in
second/subordinate position. Mitigating this risk would be addition of two additional affordable rental
units.
TOTAL COST:
$-0-
BUDGETED: Yes
No X
COST TO COUNTY:
$-0-
SOURCE OF FUNDS:
N/A
REVENUE PRODUCING: Yes No ~
APPROVED BY: County Attny. ~ OMB/P 1
DIVISION DIRECTOR APPROVAL:
AMOUNT PER: Month Year
Risk Management _
J anu I Castillo, Sr., Executive Director
Monroe County Housing Authority
DOCUMENTATION:
Included ~ To Follow
Not Required _
DIsposmON:
AGENDA ITEM #
RESOLUTION
- 2005
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF MONROE
COUNTY, FLORIDA PROVIDING FOR A SUBORDINATION OF MORTGAGE FOR
PROPERTY ENCUMBERED BY A MORTGAGE TO MONROE COUNTY IN
CONJUNCTION WITH THE MONROE COUNTY STATE HOUSING INITIATIVES
PARTNERSHIP (SHIP) PROGRAM.
WHEREAS, Monroe County State Housing Initiatives Partnership Program contributed funding in the
amount of $50,000 for rehabilitation offive (5) of seven (7) rental apartments located at 3918 Overseas
Highway, Marathon, Florida, and;
WHEREAS, in consideration of said funding Monroe County placed a subordinate (2nd position)
mortgage lien on the property containing affordability restrictions for a term offifteen (15) years subject
to a forgiveness of principal at the rate of 15% annually, and;
WHEREAS, the owner now desires to refinance the existing primary mortgage, borrowing additional
funds in the amount of $20,000 for the purpose of rehabilitating the remaining two (2) unoccupied and
uninhabitable rental units on the subject property, and;
WHEREAS, upon review of an appraisal and proposed primary mortgage terms, the combined loan to
value after refinance of the primary mortgage will result in a combine loan to value of 800.10, which is
within but at the maximum amount allowable under lending industry nonns,
WHEREAS, the results of approval of the applicants request, is expected to be the creation of two
additional habitable rental units subject to the affordability restrictions contained witmn the existing
SHIP mortgage.
NOW, THEREFORE, BE IT RESOLVED, by the Board of County Commissioners of Monroe County,
Florida, that the County hereby:
Hereby authorizes the County Administrator to execute a Subordination of Mortgage,
attached hereto as "Exhibit A ".
PASSED AND ADOPTED, by the Board of County Commissioners of Monroe County, Florida at a
regular meeting on said Board on the _ day of , A.D., 2005
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
Mayor Spehar
Mayor Pro Tem Nelson
Comissioner Neugent
Commissioner McCoy
Commissioner Rice
By:
Mayor Spehar
SEAL
ATTEST:
Date: 2(' V es-
AGREEMENT TO SUBORDINATE WAN
day of
2005 between MONROE
THIS AGREEMENT made this
COUNTY herein referred to as "Lienholder," having its principal office at Monroe County Courthouse,
500 Whitehead Street, Key West, FL 33040, and HOME FEDERAL BANK OF HOLLYWOOD,
herein referred to as "Lender", a 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 Sheria Sawyer, Irving Sawyer and
Delores Sawyer, herein referred to as "Owner," in the amount of FU.rV
mOUSAND DOLLARS AND NO CENTS ($50,000.00), dated the 1st day of
December 2001 and recorded the 21 st day of December 1995 in Official Records
Book 1747 Page 1922 upon the property hereinafter described,
Lot 13 of Block 5, Resubdivision of part of Block 2 and all of Block 5 of Marathon Beach,
a subdivision of part of Government Lot 3, Section 10, Township 66 South, of Range 32
East, according to the plat thereof as recorded in Plat Book 2 at Page 21, of the Public
record of Me
Which has the street address of 3913 Gulfside Avenue. Marathon. Florida 33050
Page 10f2
Subordination- SawyerlHome Federal
IN WITNESS WHEREOF, the parties have executed this agreement at Monroe County, State of
Florida, the day and year first above written.
WITNESSES
MONROE COUNTY
By:
Witness Signature
Printed Name:
Witness Signature
Printed Name:
ZAN E A. TO
ASSISTANT ~N7tl}ORNEY
Data ~ '7 :>
STAtE OF FLORIDA COUNTY OF MONROE I
I HEREBY CERTIFY that on this day of , 20_ before me, an officer duly qualified to take
acknowledgments, personally appeared . to me
known to be the personls described in and who executed the foregoing instrument and acknowledged before me that beIthey
executed the same. Driver Licensels shown as identification.
SEAL
NOTARY PUBLIC SIGNATURE
Printed Name of Notary
Commission No.:
My Commission Expires:
HOME FEDERAL BANK OF HOLYWOOD
Witness Signature
Printed Name:
By:
Title:
Witness Signature
Printed Name:
STATE OF FLORIDA COUNTY OF MONROE
I HEREBY CERTIFY that on this day of 20_ before me, an officer duly qualified to take
acknowledgments, personally appeared , to me
known to be the personls described in and who executed the foregoing instrument and acknowledged before me that helthey
executed the same. Driver Licensels shown as identification.
SEAL
NOTARY PUBLIC SIGNATURE
Printed Name of Notary
Conunission No.:
My Commission Expires:
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