TO: CRA Board of Commissioners
FROM: Kim N. Phan, Legal Advisor
THROUGH: Renée A. Jadusingh, Executive Director
DATE: June 8, 2022
Title
106 SW 6TH AVENUE - REQUEST TO SUBORDINATE LOAN
Body
Recommended Action:
Recommendation
Approve the request to subordinate the CRA’s Modified Second Mortgage loan to Reginald B. Jonas and Elizabeth Taylor to a new second mortgage with Amerant Bank.
Body
Background:
Around March 2005, the City Commission approved Resolution No. 14-05 authorizing the CRA to acquire Lots 11 through 30 of the Carver Square subdivision which was the former location of an information dump. Organic matter that had been disposed of on the site had begun to deteriorate and the homes built in the subdivision were experiencing various degrees of settlement problems. Some of the structures had already been demolished by the time the CRA got involved, but there were twelve (12) remaining. Around April 2005, the CRA approved the Carver Square Relocation Plan (“Relocation Plan”) plan to relocate the residents in order to demolish the structures. Relocation financial assistance was available through the Relocation Plan.
Eight homeowners qualified to receive financial assistance through the Relocation Plan. Financial assistance through the Relocation Plan included an interest free purchase money balloon mortgage due and payable in five (5) years to cover the homeowner’s financing gap in an amount not to exceed $40,000 for the purchase of a replacement house. Also, an additional $25,000 subsidy to be used as down payment assistance for owner-occupants in the “medium or major” defect category purchasing replacement housing within the CRA district, secured by a mortgage that is forgiven at the rate of 10% per year for 10 years.
The purchase money balloon mortgage was set up as a balloon mortgage because of the expectation that the value of the homes would continue to rise and that the owners would be able to re-finance their mo...
Click here for full text