Administrative
Report
H.16., File # 23-6705 Meeting Date: 9/5/2023
To: MAYOR AND CITY COUNCIL
From: CAMERON HARDING, COMMUNITY SERVICES DIRECTOR
TITLE
APPROVE THE SUBSTITUTION OF TRUSTEE AND FULL RECONVEYANCE OF THE REHABILITATION LOAN LIEN THAT IS IN PLACE ON 2501 CURTIS AVE, REDONDO BEACH, CA 90278
EXECUTIVE SUMMARY
The proposed action provides for the substitution of trustee and full reconveyance of the rehabilitation loan lien that is in place on 2501 Curtis Avenue, Redondo Beach, CA 90278. As part of the Deferred Loan Program agreement, the City of Redondo Beach recorded a lien on the property until the home repair loan was repaid. On August 24, 2023 the City received a cashier’s check, drawn by Bank of the West, in the amount of $27,000 (twenty-seven thousand dollars) to pay the outstanding Deferred Payment Loan, Instrument No. 83-1500027, note in full.
BACKGROUND
The owner of 2501 Curtis Avenue, Redondo Beach, CA. 90278, Redondo Beach, CA 90278, Gloria Anne Spence, received a $15,000 (fifteen thousand dollar) loan on December 7, 1983 for housing rehabilitation work. This loan was made possible through a past City program, referred to as the Deferred Payment Loan Program, that provided low interest home improvement loans for qualifying low-income Redondo Beach homeowners. The loan could be used to pay for roofing repairs, plumbing and electrical work and bathroom remodeling. In this case the interest rate was 8% per year for ten years with the maximum amount of interest not to exceed $12,000 if repaid at any time after the tenth year. The Deferred Payment Loan resulted in a lien on the property that would be removed from the property title once the loan was paid in full. As instructed by the Housing Department, on August 24, 2023, Herbert J. Spence, Successor Trustee of the Gloria A. Spence Family Trust, paid the loan in full with a cashier’s check made out to the City of Redondo Beach in the amount of $27,000 (principle loan plus maximum amount of interest). The payment represents a full reconveyance of the Rehabilitation Loan Lien in place on 2501 Curtis Avenue, Redondo Beach, CA 90278 and no further action will be required following recording of the lien removal by the Los Angeles County Registrar-Recorder/County Clerk.
COORDINATION
The Substitution of Trustee and Full Reconveyance Agreement has been approved by the City Attorney’s Office.
H.16., File # 23-6705 Meeting Date: 9/5/2023
FISCAL IMPACT
None
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - Substitution of Trustee and Full Reconveyance Agreement · Deferred Payment Loan Program Contract
· Copy Cashier’s Check