Administrative
Report
H.7., File # 24-0971 Meeting Date: 6/18/2024
To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, INTERIM COMMUNITY SERVICES DIRECTOR TITLE
APPROVE THE SUBSTITUTION OF TRUSTEE AND FULL RECONVEYANCE OF THE RENTAL REHABILITATION PROGRAM LOAN LIEN THAT IS IN PLACE ON 2415 GRANT AVE, REDONDO BEACH, CA 90278
EXECUTIVE SUMMARY
The proposed action provides for the substitution of trustee and full reconveyance of the rental rehabilitation loan lien that is in place on 2415 Grant Avenue. As part of the Deferred Loan Program Agreement, the City recorded a lien on the property until the home repair loan was repaid. On May 23, 2024, the City received a cashier’s check, drawn by JP Morgan Chase Bank, in the amount of $10,000 to pay the outstanding Deferred Payment Loan, Instrument No. 87-1359831, note in full.
BACKGROUND
The owner of 2415 Grant Avenue, John E. and Sharon A. Rosenbrock, received a $10,000 loan on August 13, 1987, for housing rehabilitation work. This loan was made possible through the City’s Deferred Payment Loan Program which 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 annual interest rate was zero percent. The Deferred Payment Loan resulted in a lien on the property that was to be removed from the property title once the loan was paid in full.
On May 23, 2024, co-borrower John A. Rosenbrock paid the $10,000 loan in full with a cashier’s check made out to the City of Redondo Beach, as instructed by the Housing Division. The payment represents a full reconveyance of the loan lien in place on 2415 Grant Avenue. Following recording of the lien removal by the Los Angeles County Registrar-Recorder/County Clerk, no further action will be required
COORDINATION
The Substitution of Trustee and Full Reconveyance Agreement has been approved by the City Attorney’s Office.
FISCAL IMPACT
There is no fiscal impact associated with this item. The loan has been paid in full.
APPROVED BY:
H.7., File # 24-0971 Meeting Date: 6/18/2024
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - Substitution of Trustee and Full Reconveyance Agreement · Deferred Payment Loan Program Contract, August 13, 1987 · Check - Voided Cashier’s Check