HomeMy WebLinkAbout~Master - Request to Subordinate Second Mortgage Lien for Property Located at 5421 Frost Drive DO NOT WRITE IN THE SPACE ABOVE THIS LINE,RESERVED FOR RECORDER
Prepared by:Diane R.Voss,Ames City Clerk,515 Clark,Ames,IA 50010 Phone:515/239-5105
RESOLUTION NO. 99-010
RESOLUTION APPROVING REQUEST TO SUBORDINATE
SECOND MORTGAGE LIEN FOR
PROPERTY LOCATED AT 5421 FROST DRIVE
FOR THE CITY OF AMES,IOWA
WHEREAS, in March 1995, Jamie and Julie Lenz were participants in the City's Phase III Affordable
Housing Program to help low-and moderate-income first-time home buyers purchase newly constructed single-family
homes in the Bentwood Subdivision; and,
WHEREAS,they are requesting the City to subordinate its Phase III Affordable Housing second mortgage
lien on their single-family home at 5421 Frost Drive,Ames,Iowa; and,
WHEREAS,in order for the City's mortgage to be secure,the value of the property must be equal to or greater
than all outstanding debts so that all debts can be repaid in the event of a sale or default on a mortgage; and,
WHEREAS,the City's second mortgage lien would require the home buyers to repay the City the greater of
8%of the selling price or assessed value if the property is sold,transferred,abandoned,or rented within the first seven
years; and,
WHEREAS,the bank financing the property has approved a mortgage loan in the amount of$94,400;the City
Assessor's tax assessment value of the property is $106,700; the City's exposure on its mortgage in the event of a
default is zero; and,
WHEREAS,the property was purchased under the program for$76,100; and,
WHEREAS, City Staff recommends that the City subordinate its lien position.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,that the request
to subordinate the City's second mortgage lien for property located at 5421 Frost Drive is hereby approved.
ADOPTED THIS 12th day of January, 1999.
Diane R. Voss, City Clerk Ted Tedesco, Mayor
Introduced by: Quirmbach
Seconded by: Wirth
Voting aye: Campbell, Cross, Hoffinan, Quirmbach, Wirth
Voting nay: None Absent: Parks
Resolution declared adopted and signed by the Mayor this 12th day of January, 1999.