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									                               CITY OF FILLMORE
                                  CENTRAL PARK PLAZA
                                    250 Central Avenue

                                         .
                              Fillmore, California 93015-1907
                           (805) 524-3701 FAX (805) 524-5707




TO:          Mayor and City Council

DATE:        August 14,2012                                 f
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THROUGH: Yvonne Quiring, City Manager                  iJ

FROM:                                          A,
             Glenda D. Jay, Finance ~ i r e c t o r

                                                           n
SUBJECT: Approval of the Refinance and ~ u b d r d a t i o Agreement for
         351 Glen Way; and Authorize the City Manager, or her
         designee, to take all necessary actions relating to the
         execution and recordation of the Subordination Agreement.


SUMMARY:

Staff reviewed the request for the refinance of the current loan and a
subordination agreement for 351 Glen Way. After review of the information
submitted by the mortgage broker, staff is recommending to the City Council that
they approve the request to refinance the current loan and a subordination
agreement.

RECOMMENDATION:

Approve the Refinance and Subordination Agreement for 351 Glen Way and
Authorize the City Manager, or her designee, to take all necessary actions
relating to the execution and recordation of the Subordination Agreement.

BACKGROUND:

On January 29,2009, the Redevelopment Agency approved a loan to Kevin and
Angelica Richardson of $28,586 to assist with the purchase of the house at 351
Glen Way. The Richardson's have requested to refinance their existing loan to
lower their interest payment. Attached is a worksheet that shows the information
regarding the original loan and the proposed refinance.

Although the Richardson's new loan would increase principal by $1,093.63 it
lowers their interest rate from 5.75 percent fixed to 3.75 percent fixed and
reduces their monthly payment by approximately $293.21. The loan continues to
be a 30 year loan.
Approval of the Refinance and Subordination Agreement for 351 Glen Way
August 14,2012
Page 2 of 2


The City became the Successor Agency for Redevelopment Agency Housing
functions on February 1, 2012. This loan is considered an asset of the
Redevelopment Agency which was transferred to the City.

FISCAL IMPACT:

There is no fiscal impact at this time. If the property is sold or transferred within
twenty-seven years, the loan will be repaid.



Attachment 1: Richardson Loan Review Worksheet
                                             CITY O F FILLMORE SUCCESSOR AGENCY


                                                       Date of Meeting: August 14; 2012

                 Borrower:      Richardson, Kevin &Angelica                   Property Address:      3 5 1 Glen Way, Fillmore, CA 93015




NARRATIVE: Proposed savings of $293.21 on Principal, Interest & MIP monthly payment. The new loan is an FHA Streamline refinoncing and it
does not require an appraisal. If no sale or transfer of the property within thirty (30) years of the original loan date (01/29/09), the note shall be
automatically and completely forgiven (01/29/2039).

								
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