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HomeMy WebLinkAbout~Master - Request to Subordinate Second Mortgage Lien for Propery located at 5422 Norris Street 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. 99-042 RESOLUTION APPROVING REQUEST TO SUBORDINATE SECOND MORTGAGE LIEN FOR PROPERTY LOCATED AT 5422 NORRIS STREET FOR THE CITY OF AMES,IOWA WHEREAS, in November 1998, Coreen E. and Joe R. Lawrence 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 that the City subordinate its Phase III Affordable Housing second mortgage lien on their single-family home at 5422 Norris Street,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$55,000;the City Assessor's tax assessment value of the property is $81,900; 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$60,000; 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 5422 Norris Street is hereby approved. ADOPTED THIS 9th day of February, 1999. /�,/ , 1"'R --4 f Diane R. Voss, City Clerk Ted Tedesco, Mayor Introduced by: Hoffman Seconded by: Cross Voting aye: Cross,Hoffman, Parks, Quirmbach,Wirth Voting nay: None Absent: Campbell Resolution declared adopted and signed by the Mayor this 9th day of February, 1999.