Submitted By
Tammie Grossman, Director of Development Customer Services Department
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Authorizing The Execution of A Subordination of Lien For The Property Located At 309 Madison Street (SRP-026).
End
Overview
Overview
The loan recipient is requesting a subordination of a Small Rental Rehabilitation Loan to a new first mortgage. The Village remains secure in a junior position on the title.
Body
Staff Recommendation
Approve the Resolution.
Fiscal Impact
There is no impact on the General Fund. Staff time to prepare the subordination and assignment are the only cost to the Village.
Background
On March 18, 2015, pursuant to the Small Rental Rehabilitation Loan Program, the Board of Trustees approved a $5,000 loan to the owner of 309 Madison St. The loan is supported by a mortgage which was recorded against the property. The mortgage was recorded as a junior mortgage on the property with the purchase loan mortgage being in first position.
The Village of Oak Park's Small Rental Rehab Program authorizes the Village to make forgivable loans to owners of multi-family apartment buildings with less than eight (8) units for the purposes of rehabilitating the property. In return, loan recipients are required to enter into a Loan Commitment and Agreement which requires that the 51% of the units be rented to households earning below 80% of the Area Median Income (AMI) for Cook County and to be affirmatively marketed through the Oak Park Regional Housing Center to encourage racial diversity among residents
SRP-026
The building owner is seeking to replace their current primary mortgage, which is about to balloon from a 3% interest rate to a higher interest rate, with a new primary mortgage at 5% interest rate. This new loan will provide a 5% interest rate on a five year term with a 25 year amortization schedule. The amount of the new loan will be $130,000. The homeowner is only ta...
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