RESOLUTION NO. ___
a Resolution of the Successor Agency OF THE COMMERCE COMMUNITY DEVELOPMENT COMMISSION APPROVING THE SUBORDINATION OF the regulatory agreement, deed of trust, and Promissory note previously entered between the Former Redevelopment Agency and Luis M. Mendez for the property located at 5812 Bartmus street IN THE CITY OF COMMERCE WHEREAS, on February 15, 2011, the Commerce Community Development Commission (“Commission”) performed a lottery to select four applicants to participate in the City’s First-Time Homebuyer Program during Fiscal Year 2010/2011. Luis M. Mendez were one of the four participants selected from a pool of 19 qualified applicants; and WHEREAS, the First-Time Homebuyer Program offered up to $150,000 towards a down payment for low to moderate-income persons interested in purchasing their principal residence in the City of Commerce, but were unable to secure sufficient down-payment to purchase a residence. As part of the program, payments on the loans were deferred for a period of 45 years and pardoned as long as the recipient homebuyer stayed on the property and did not sell or rent the residence. Program loans were evidenced by a promissory note secured by a second deed of trust; and WHEREAS, on April 12, 2011, a Regulatory Agreement and Deed of Trust Securing Promissory Note were executed between the Commission Luis M. Mendez to secure a Promissory Note dated April 22, 2011 in the amount of $114,930.72; and WHEREAS, recently, Luis M. Mendez, along with Fidelity National Title Company, the holder of the first loan contacted the City about their intent to refinance the current loan for the purpose of lowering their interest rate and without a “cash out” option. In order for Luis M. Mendez to refinance, they need the Commerce Community Development Commission to subordinate the Regulatory Agreement, Deed of Trust and Promissory Note recorded against the property; and WHEREAS, to subordinate a document simply means that the Regulatory Agreement and Deed of Trust Securing Promissory Note will change priority position in order to allow the new loan to be recorded against the property. This will allow Luis M. Mendez. to refinance the subject property to lower the interest rate, while retaining the provisions outlined in the Regulatory Agreement and Deed of Trust Securing Promissory Note. Therefore, the City’s Regulatory Agreement and Deed of Trust Securing Promissory Note will not be impacted with this action and will continue to run with the land until the 45 year period expires; and WHEREAS, staff recommends that the Successor Agency approve the subordination of the Regulatory Agreement, Deed of Trust and Promissory Note entered between the former Redevelopment Agency and Luis M. Mendez on April 12, 2011, in order for Luis M Mendez to be able to refinance the property located at 5812 Bartmus Street in the City of Commerce.
NOW, THEREFORE, THE SUCCESSOR AGENCY OF THE COMMERCE COMMUNITY DEVELOPMENT COMMISSION DOES RESOLVE AS FOLLOWS:
Section 1. Incorporation of Recitals
The above recitals are true and correct and are incorporated herein as if set forth in full.
Section 2. Approval
The Successor Agency to the Commerce Community Development Commission hereby APPROVES the subordination of the Regulatory Agreement, Deed of Trust, and Promissory Note between the former Redevelopment Agency and Daniel and Luis M Mendez for the property located at 5812 Bartmus Street in the City of Commerce.
Section 3. This Resolution shall take full force and effect immediately upon adoption.
PASSED, APPROVED AND ADOPTED this 25th day of January 2022. ________________________
Leonard Mendoza, Mayor
ATTEST:
_________________________
Lena Shumway, City Clerk
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