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:                        April 21, 2004

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

In March, 1985, Larry and Barbara Miller, 1325 E. 16^th St., participated in the 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 Miller’s wish to refinance their primary mortgage.  In order to do this, the City must subordinate its mortgage to the new loan with Capitol Federal Savings.  The City’s interest will be protected and staff recommends that the City Commission approve this request.

In July, 2001, Alejandro and Waldina Sabillon, 1005 Parkview Rd., 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 Sabillon’s wish to refinance their primary mortgage.  In order to do this, the City must subordinate its mortgage to the new loan with Capitol Federal Savings. 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.