Loading...
HomeMy WebLinkAbout~Master - Release of mortgage for 607 Meadow Place DO NOT WRITE IN THE SPACE ABOVE THIS LINE,RESERVED FOR RECORDER Prepared by:Diane Voss,Ames City Clerk,515 Clark,Ames,IA 50010 Phone:515/239-5105 RESOLUTION NO. 03-182 RESOLUTION APPROVING RELEASE OF SUBORDINATE MORTGAGE FOR 607 MEADOW PLACE IN CONNECTION WITH AMES/STORY COUNTY PARTNERSHIP AFFORDABLE HOUSING PROGRAM FOR THE CITY OF AMES WHEREAS, in October 2001, Sharilyn Sherman was a participant in the Ames/Story County Partnership(ASCP)Affordable Housing Program to assist low-and moderate-income,first-time home buyers purchase single family homes in eight participating cities in Story County; and, WHEREAS,the down payment assistance was given in the form of a second mortgage loan for 12 years; and, WHEREAS, in order for the second 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, there is a recapture provision that if the property is sold, transferred, or rented within a 10-year period, an additional payment would apply; and, WHEREAS,Ms.Sherman sold her property at 607 Meadow Place before the 10-year period has expired, and, therefore, must repay the City of Ames; and, WHEREAS, the property is being sold to a non-first-time home buyer for $81,900, and based on the program's criteria, Ms. Sherman needs to repay the ASCP $11,051.68 for the down payment assistance loan as well as $5,840 for the recapture provision for a total of$16,891.68 after she closes on the sale of the property; and, WHEREAS, all of the funds received will be placed back into the Housing Bank which will be used for continuation of the ASCP Affordable Housing Program; and, WHEREAS,in January 2003,Ms. Sherman asked the City Council to waive the entire recapture provision due to her loss of employment regardless of whether she was able to sell the property; and, WHEREAS, now that the property has sold, Ms. Sherman is requesting that the City Council reduce the recapture payment provision to 4%; and, WHEREAS, the Ames/Story County partners and City staff are recommending that the City Council not reduce or waive the recapture repayment because there are sufficient funds available to repay all of the amounts due to the ASCP; and, WHEREAS,staff is requesting that the Council authorize the release of contract and lien so that the recorded lien can be released after the City has received the entire pay-off amount. NOW, THEREFORE,BE IT RESOLVED by the City Council of the City of Ames, Iowa,that the Release of Subordinate Mortgage for property at 607 Meadow Place, Ames, Iowa, is hereby approved subject to receipt of the entire pay-off amount of$16,891.68. ADOPTED THIS 13`h day of May, 2003. Diane R. Voss, City Clerk Ted Tedesco, Mayor Introduced by: Goodhue Seconded by: Cross Voting aye: Cross, Goodhue, Hoffman, Mahayni, Vegge, Wirth Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 13t1i of May, 2003.