City of Lawrence

Neighborhood Resources Department

MEMORANDUM

TO:              Mike Wildgen, City Manager

THRU:                   Victor Torres, Director, Neighborhood Resources

FROM:         Margene K. Swarts, Community Development Manager

DATE:           March 22, 2005

The following individuals participated in a Community Development Division loan program.  Payment of the loan has been received so the Mortgage needs to be released. 

1) Jean Knight, 2726 Ponderosa, participated in the HOOT Loan Program in 1998.

2) Mary Gray, 1236 New York, participated in the Emergency Loan Program in 1999. 

3) Marcia Miller, 725 Ohio, participated in the Emergency Loan Program in 1997.

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 October, 2000, Lenny and Kimberly DeFazio, 1602 Irving Court, 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 DeFazio’s wish to establish a secondary line of credit.  In order to do this, the City must subordinate its mortgage to the new loan with Central National Bank.

In January, 1999, Jill Jevens, 1301 Prospect, participated in the HOOT Loan Program.  In order to participate in the program, she was required to sign a Mortgage and Mortgage Note to protect the City’s interest in the property.  Ms. Jevens wishes to establish a secondary line of credit.  In order to do this, the City must subordinate its mortgage to the new loan with US Bancorp.

The City’s interest will be protected and staff recommends that the City Commission approve this request. 

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