HomeMy WebLinkAboutReso 97-76 - Approving Modification of teh Loan Terms for the Borland Home Rental Contract to Assure Rent Affordability Requirements Associated with the Federal Home Investment Partnership Program � 1 � •
RESOLUTION NO. 97-�
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING MODIFICATION OF THE
LOAN TERMS FOR THE BORLAND HOME RENTAL CONTRACT TO ASSURE RENT AFFORDABILITY
REQUIREMENTS ASSOCIATED WITH THE FEDERAL HOME INVESTMENT PARTNERSHIPS PROGRAM.
WHEREAS, the City of Redding has previously amended revision of the loan terms for the HOME
Rental Program by City Council resolution No. 96-83; and
WHEREAS, the City Council deems it to be in the best interest of the citizens of the City of Redding
to modify loan terms for the Borland HOME Rental Contract as set forth in Attachment "B," the Modification
of Promissory Note Secured by Deed of Trust attached hereto; and
WHEREAS, it has been determined that this action assures rent affordability and maintains compliance
with HOME Program regulations; and
NOW, THEREFORE, BE IT RESOLVED that this modification of the loan terms for the Borland HOME
Rental Contract, as evidenced hereto as Attachment "B" is hereby approved and adopted.
I HEREBY CERTIFY that the foregoing resolution was introduced and read at a regular meeting of the
City Council of the City of Redding on the 6th day of May 1997, and was duly adopted at said meeting by
the following vote:
AYES: COUNCIL MEMBERS: R. Anderson, Kehoe, McGeorge, Murray and P. Anderson
' NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
��iL«.Lcv �L�i��l B�
PATRICIA A. ANDERSON, Mayor
ATTEST: City of Redding
CONNIE STROHM�4YER, ity Clerk ,
FORM APP VED:
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W. LEONARD WINGA ty Attorney skm/bor:Rp5-6C.RS0 �v
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ATTACHMENT "B"
CITY BUSINESS - NO FEE
Section 6103 of the Government Code of
the State of Califomia
RECORDING REQUESTED BY:
CITY OF REDDING
RETURN TO:
City of Redding - Housing Rehabilitation
760 Parkview Avenue
Redding, California 96001-3396
Finance Department #8807-10
MODIFICATION OF PROMISSORY NOTE SECURED BY DEED OF TRUST
It is hereby understood and agreed to by and between the undersigned parties that the
Promissory Note in the original amount of 5216,039.00, dated April 3, 1995, and executed
by HAROLD E. BORLAND and CARROLL R. BORLAND, as Trustor, in favor of CITY OF
REDDING, as Beneficiary, and secured by a Deed of Trust of even date therewith which
recorded on April 19, 1995, in BOOK 3280 of Official Records at PAGE 146, et seq., in Shasta
County, State of Ca�ifornia, IS HEREBY MODIFIED IN THE FOLLOWING PARTICULARS ONLY:
The actual loan amount expended was One Hundred Ninety-Eight Thousand, Eight Hundred
Twenty-Seven Dollars and Sixty-Four Cents (5198,827.64), and the remaining balance of
Seventeen Thousand, Two Hundred and Eleven Dollars and Thirty-Six Cents (S 17,21 1.36) was
applied to the principal.
Payments made by Trustor between October 1, 1995 and July 12, 1996 in the amount of
Seven Thousand, Four Hundred Fifty-Nine Dollars and Sixty-Five Cents ($7,459.65) resulted
in a remaining principal amount of One Hundred Ninety-Three Thousand, Eight Hundred
Twenty-Eight Dollars and Forty Cents ($193,828.40). On July 31, 1996, payments were
suspended at the request of the Beneficiary who wished to adjust the note to compensate the
Trustor for projected rent loss.
The remaining interest income to Beneficiary on the original note at Three Percent (3%)
interest over Fifteen (15) Years would be Forty-Seven Thousand, Six Hundred Sixty Dollars and
Seventeen Cents (547,660.17); and the projected rent loss to the Trustor under the existing
contract would be Sixty-Five Thousand, Five Hundred Three Dollars and No Cents
($65,503.00). The difference between the two, Seventeen Thousand, Eight Hundred Forty-
Two Dollars and Eighty-Three Cents ($17,842.83), represents the amount to be reduced from
the existing principal.
The new loan principal is to be One Hundred and Seventy-Five Thousand, Nine Hundred and
Eighty-Five Dollars and Fifty-Seven Cents (5175,985.57), at a new interest rate of Zero
Percent (0%) per annum, over a period of Eleven Years, Nine Months 111.9) beginning July 1,
1998, with the last payment due March 1, 2009. Installment payments shall be One
Thousand, Two Hundred Forty-Eight Dollars and Thirteen Cents ($1,248.13) per month.
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Repayment of the HOME loan is deferred for Thirteen Months, Two Weeks to accommodate
utility repayments of Sixteen Thousand, Seven Hundred and Eighty-Eight Dollars and No Cents
(516,788.00) by the Borlands to all eligible tenants for the period of April 1995 through July
1996.
It is further understood and agreed to by and between the undersigned parties that all other
terms of said Deed of Trust and Note, and all conditions contained thereof shall remain in full
force and effect as set forth therein.
In witness whereof the undersigned parties have caused this agreement to be signed and have
hereunto set their hands and seal on , �997,
BENEFICIARY: TRUSTOR:
PATRICIA A. ANDERSON, Mayor HAROLD E. BORLAND
CITY OF REDDING
CARROLL R. BORLAND
STATE OF CALIFORNIA )
) ss.
COUNTY OF SHASTA )
On , 1997, before me, , personally appeared HAROLD E.
BORLAND and CARROLL R. BORLAND, personally known to me (or proved on the basis of satisfactory
evidence► to be the person(s) whose name(s) is/are subscribed in the within instrument, and
acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her�their signature(s) on the instrument, the person(s), or the entity upon behalf of which
the person(s) acted, executed the instrument. WITNESS my hand and official seal.
Notary Public
STATE OF CALIFORNIA )
► ss.
COUNTY OF SHASTA )
On , 1997, before me, , personally appeared PATRICIA A.
ANDERSON, personally known to me (or proved on the basis of satisfactory evidence) to be the
person�s) whose namels) is/are subscribed in the within instrument, and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signaturels) on the instrument, the person(s), or the entity upon behalf of which the personls) acted,
executed the instrument. WITNESS my hand and official seal.
Notary Public
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