HomeMy WebLinkAbout~Master - Approving Request to Subordinate Second Mortgage Lien for Property Located at 5453 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. 99-151
RESOLUTION APPROVING REQUEST TO SUBORDINATE
SECOND MORTGAGE LIEN FOR
PROPERTY LOCATED AT 5453 FROST DRIVE
FOR THE CITY OF AMES,IOWA
WHEREAS,in January 1995,Angela Masteller was a participant 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,she is requesting the City to subordinate its Phase III Affordable Housing second mortgage lien
on her single-family home at 5453 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$68,000;the City
Assessor's tax assessment value of the property is $87,000; 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 positions.
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 5453 Frost Drive is hereby approved.
ADOPTED THIS I Ith day of May, 1999.
Diane R. Voss, City Clerk Ted Tedesco, Mayor
Introduced by: Cross
Seconded by: Parks
Voting aye: Campbell, Cross, Hoffinan, Parks, Quirmbach, Wirth
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this I Ith day of May, 1999.