MEMORANDUM

TO:                  Mike Wildgen, City Manager

THRU: Victor Torres, Director, Neighborhood Resources Department

FROM:            Margene K. Swarts, Community Development Manager

SUBJECT:     Mortgage Subordination Agreement

DATE:                        January 7, 2004

The Community Development Division received a request for a Subordination Agreement for a Mortgage the City holds for a loan recipient.  The information regarding the request follows:

In October, 2000 and July, 2001, George and Ardith Shove, 1618 E. 18^th St. Terr., participated in the Emergency and Comprehensive Rehabilitation Loan Program.  In order to participate in the program, they were required to sign a Mortgage and Mortgage Note to protect the City’s interest in the property.  The Shove’s wish to refinance the primary mortgage.  In order to do this, the City must subordinate its mortgage to the new loan with Capitol Federal Savings Bank.  The City’s interest will be protected and staff recommends that the City Commission approve this request.

The City Clerk will have the documents for the Mayor's signature.  If you have further questions, please let me know.