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:                        February 10, 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 June, 2001, Jeremy and Kelly Brakenhoff, 2704 Ann Ct., participated in the HOOT 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 Brakenhoff’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.