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:           July 18, 2005

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

1) Leah D’Ercole, 2218 Breckenridge Drive, participated in the HOOT Loan Program in 2002.

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 requests follows:

In May, 2000, Sandra Sloop and Enrique Penaloza, 2539 Ridge 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.  Ms. Sloop and Mr. Penaloza wish to refinance the first mortgage at a lower interest rate.  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 these documents ready for the Mayor's signature.  If you have further questions, please let me know.