RES 1999-0182 - Amend Res 1998-2769 for increase in debt subordination agmt for Floyd and Yolanda Brown i otANHA,Ark-4,
` p UA.,-`, .RECEIVE Law Department
alit„, �� �. Omaha/Douglas Civic Center
�ht/4j _4) ,. 1819 Famam Street,Suite 804
f-,wri.C1 +! �; 99 JAN 114 FT 1. � Omaha,Nebraska 68183-0804
(402)444-5115
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City of Omaha ' ; , p r,C rl A b r,4, Paul D.Kraft
Hal Daub,Mayor City Attorney
Honorable President
and Members of the City Council,
The attached resolution,prepared at the request of Councilmember Brown amends Resolution No.
2769 passed on October 6, 1998 granting approval and authorization of the Mayor to execute a debt
subordination agreement for Floyd and Yolanda Brown at 3519 Fowler Avenue in an amount not
to exceed$71,400.00. The reason for this amended resolution is to reflect the increase in appraised
value of the property located 3519 Fowler Avenue and to allow for the corresponding increase in the
amount to be refinanced.
Floyd and Yolanda Brown have a HCD Deferred Mortgage #1315 on property located at 3519
Fowler Avenue in the amount of$20,000.00 which was executed on September 4, 1992,and consists
of a second mortgage on the above property. The principal balance of the loan of Floyd and Yolanda
Brown will depreciate by 50% in the year 2002 in accordance with city Council Resolution#363.
Floyd and Yolanda Brown wish to pay off the depreciated balance of$10,000.00 in return for the
City to subordinate the$10,000.00 depreciated portion of its loan interest to a new loan in an amount
not to exceed the appraised value of the property.
The proposed agreement will subordinate the City's interest to a refinanced current amount not to
exceed the appraised value in return for payment of the sum of$10,000.00 the City of Omaha upon
loan closing of the refinancing arrangement. The subordination agreement further provides that if
the owners do not remain on the property for the requisite 10 years,the total amount of$20,000.00
becomes due less any amounts paid.
•
Your favorable consideration of the attached Resolution is hereby requested.
Sincerely,
•
Rosemarie B. Lee
Associate City Attorney
P:\LAW\8675.SKZ
_ REQUEST TO.LAW DEPARTMENT
FOR LAW DEPARTMENT USE ONLY
_ OG BOOK # b -ri 9
TO: Paul D. Kratz, City Att rn ATE ASSIGNED /-//
'I /(o ASSIGNED TO
DATE: January 11, 1999 ;. -A ANSWERED/SENT OUT
._._._..: , WITHDRAWN
REQUEST BEIN MADE BY: On Behalf of Councilmember Frank Brown
Warren , Council Staff Assistant 6298
(Name) (Department) (Phone)
TIME LINE (Due Date): January 26, 1999, Council Agenda
l 2 Wo 1 D J y f +�,-o . Date Recei a by T awep Dart ZS<ll t c
O 1.
REQUEST FOR: Amendment to Resolution #2769
(State Specifically What You Are Requesting)
DETAILS:. (Do Not State "See Attached")
On October 6, 1998, the City Council passed Resolution #2769, 7-0, a debt
subordination agreement with Floyd and Yolanda Brown, residing at 3519 Fowler.
At the time of coordination for this Resolution, the refinanced amount was listed as •
$71,400. However, by the time the appropriate documentation was finalized the
appraised value of the home exceeded this amount and is now appraised at
approximately $81,000.
After coordination and concurrence from the Planning Department, Councilmember
Frank Brown requests that the Law Department prepare an amendment to Resolution
#2769, so that the refinanced current amount reads "not to exceed the apprised
value", instead of$71,400. (See the marked attachment, page 3).
The Law Department shall coordinate as necessary with the Planning Department and
. City Clerk's Office and place this on the Council Agenda for January 26, 1999.
Associate City Attorney Rosemarie Lee is knowledgeable,about this subject.
INFORMATION ATTACHED: YES X NO NONE AVAILABLE
rm
c: Councilmembers, City Clerk, Lou D'Ercole, Bob Peters, Brinker Harding,
Council Staff
•
' &4ae- , 1 42-
DEBT SUBORDINATION AGREEMENT
WHEREAS, Floyd and Yolanda Brown (hereinafter referred to as "Borrowers") are now
or hereafter may be indebted to Commercial Federal Mortgage Corporation, (hereinafter referred to
as the "Bank") on account of a loan in the amount of Forty-four Thousand Six Hundred Fifty and
00/100 Dollars ($44,650.00) which indebtedness was incurred, in part, for the purpose of
acquiring property located at 3519 Fowler Avenue, Omaha, Nebraska and legally described as:
Lot 40, Monmouth Park 1st Replat, an Addition to the City of Omaha,
as surveyed, platted and recorded in Douglas County, Nebraska; and,
WHEREAS, the Borrowers' above-described indebtedness to the Bank is secured by a
Deed of Trust, which security interest was perfected on September 4, 1992, upon the filing of
same with the Douglas County Register of Deeds, same being recorded on September 9, 1992, in
Book 3867 at Page 611; and,
WHEREAS, the Borrowers are also-indebted to the City of Omaha(hereinafter referred to
as "City") by virtue of a Homebuyer Program Deferred Loan made in the sum of Twenty
Thousand Dollars ($20,000.00), which indebtedness was incurred for the purposes of partially
financing acquisition of the above-described property; and,
WHEREAS, the Borrowers' above-described indebtedness to the City is secured by a
Mortgage, which security interest was perfected on September 4, 1992,upon the filing of same
with the Douglas County Register of Deeds, same being recorded on September 14, 1992, in Book
3869 at Page 655; and,
WHEREAS, National City Corporation (hereinafter referred to as "Lender") is willing to
make a loan sufficient to refinance the balance of the first mortgage/deed of trust,plus consolidate
other debts, in a total amount not to exceed Eighty-one Thousand One Hundred Three Dollars
($81,103.00), including reasonable closing costs, the proceeds of which loan to be used solely for
the aforementioned purposes; and,
WHEREAS, the Lender was unwilling to make the above-described loan unless same
could be secured by a"first" mortgage/deed of trust; and,
WHEREAS, as authorized on October 6, 1998 by City Council Resolution No.2769,
subsequently amended by Resoultion No. 182, approved on January 26, 1999, the City is willing
to subordinate its position as a secured creditor to that of the Lender.
NOW, THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Lender and the
City do hereby agree that the lien acquired by the Lender by virtue of a mortgage/deed of trust
executed in its favor by the Borrowers to secure the above-referenced indebtedness shall be
deemed a first and prior lien upon the above-described property, which lien shall be superior to the
previously acquired lien of the City (as hereinabove described), as if the mortgage/deed of trust
executed in favor of the Lender had been filed with and duly recorded by the Register of Deeds at
some time prior to that of the City, further, that the City's lien shall therefore be deemed a second
lien upon said property,being subject and subordinate to that of the Lender.
IN WITNESS WHEREOF, the parties have executed this Debt Subordination Agreement
as of the date indicated below.
ATTEST: CITY OF s MAHA, A Municipal Corporation
CLERK AyfOR OF THE CITY OF OMAHA
STATE OF NEBRASKA )
) ss.
COUNTY OF DOUGLAS )
c ,
On this day of r e)/r t R7'y 19 .before me the undersigned,
a Notary Public in and for said County, personally came f , D v46 h1./tZp `i L,fy O9'<,' -
who executed the above document, and acknowledged the execution thereof to be their voluntary
act and deed as such officer and the voluntary act and deed of the City of Omaha, a Municipal
Corporation.
In testimony whereof I have hereunto set my hand and affixed by Notary Seal at Omaha in
Douglas County, on the day and date last above written.
GENERAL NOTARY-Slate of Nebraska
BRINKER HARDING
My Comm.Exp.Aug.31,2000 - NOTARY PUBLIC
My Commission expires : a , ��
o
NATIONAL CITY CORPORATION
By
WITNESS Title
Date
STATE OF NEBRASKA )
) ss.
COUNTY OF DOUGLAS )
On this day of , 19 before me the undersigned,
a Notary Public in and for said County,personally came
to me known to be the person named in and who executed the foregoing instrument, and
acknowledged that he/she executed the same as his/her voluntary act and deed.
In testimony whereof I have hereunto set my hand and affixed by Notary Seal at Omaha in
Douglas County, on the day and date last above written.
NOTARY PUBLIC
My Commission expires
AP VED AS TO FORM:
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ASS TANT CITY ATTORNEY
c-2sA CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr 19
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS, the City Council passed Resolution No. 2769, on October 6, 1998,
which granted approval and authorization of the Mayor to execute a debt subordination agreement
for Floyd and Yolanda Brown at 3519 Fowler Avenue in an amount not to exceed $71,400.00; and,
WHEREAS, since the passage of Resolution No. 2769 and the preparation of the
documents necessary to finalize this debt subordination agreement the appraised value of the
property located at 3519 Fowler has increased in value; and,
WHEREAS, it is in the best interest of the City to allow for the approval and
authorization of the Mayor to execute a debt subordination agreement for Floyd and Yolanda Brown
at 3519 Fowler Avenue in an amount not to exceed the appraised value of the property; and,
WHEREAS, the Planning Department concurs in the increase in the amount of the
debt subordination agreement to an amount not to exceed the appraised value of the property; and,
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OMAHA:
THAT,Resolution No. 2769, adopted October 6, 1998, is hereby amended to allow
for an increase in the amount of the debt subordination agreement for Floyd and Yolanda Brown,
3519 Fowler Avenue,to an amount not to exceed the appraised value of the property.
APPROVED AS TO F• ' :
///, 9'?
ASSISTANT CITY ATTORNEY DATE
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By.... ..... 4141/54-giti(4,,,t,
Councilmember
Adopted JA, 1......4. 1999 .
City Clerk
Approved...
ACTING Mayor
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