Regular Village Board meetings are typically held at 7:00 p.m., the first three Tuesdays of each month in Council Chambers of Village Hall (room 201), 123 Madison St. When a Regular Meeting falls on a holiday, the meeting typically is held the following night. The Village Board also meets in special sessions from time to time. However, dates and times of Special Meetings can vary and may change.

File #: RES 20-226    Name:
Type: Resolution Status: Passed
In control: President and Board of Trustees
On agenda: 11/2/2020 Final action: 11/2/2020
Title: A Resolution Authorizing Subordination of a Lien for the Property Located at 1027 S. Cuyler Avenue (SFR-084)
Attachments: 1. Resolution Subordination of Lien SFR-084, 2. Subordination of Lien SFR-084, 3. Endorsed Note SFR-084
Submitted By
Tammie Grossman, Director of Development Customer Services

Reviewed By
LKS

Agenda Item Title
Title
A Resolution Authorizing Subordination of a Lien for the Property Located at 1027 S. Cuyler Avenue (SFR-084)

End
Overview
Overview
The loan recipient is requesting a subordination of their Single Family Rehabilitation Program (SFR) loan mortgage to a new first mortgage. The Village remains secure in a junior position on the title.

End
Recommendation
Recommendation
Approve the resolution

Fiscal Impact
The subordination is not a direct cost to the Village's general fund. Staff time in document preparation, which is a regular part of loan portfolio management, is the only cost.

Background
On September 3, 2019, the Village of Oak Park Board of Trustees approved a $24,999 loan to the owner of 1027 S. Cuyler Avenue. 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.

Loans made under the Single Family Rehabilitation Program are deferred for repayment for 20-years or until transfer of any interest in the property. The program guidelines provide that in cases where former loan recipients wish to refinance mortgages other than the Village's, and request that the Village maintain its subordinate position, the Village will agree to maintain its junior position if:
a. The terms of new first mortgage are more advantageous to the homeowner and are reasonable under current market conditions; and
b. There is adequate equity in the property to support the total proposed encumbrance, at least 15% equity. (If necessary, homeowner(s) will submit an appraisal as proof of equity); and
c. Any equity taken out of the property will be reinvested in the property.

In cases of extreme hardship, staff may recommend that the Board consider subordination when the homeowner is requesting cash back from the r...

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