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County Administrator's Report 12. 2.

BCC Regular Meeting

Technical/Public Service Consent

Meeting Date:	04/17/2018
Issue: Agreement for Subordination of Mortgage for Caminitti Place Rental Project
From:	Tonya Gant
Department:	Neighborhood & Human Svcs
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Agreement for Subordination of Mortgage for the Caminitti Place Rental Project - Tonya Gant, Neighborhood & Human Services Department Director

That the Board take the following action concerning the Agreement for Subordination of Mortgage between Escambia County, Florida, Community Loan Fund, and Community Enterprise Investments, Inc., F/K/A Community Equity Investments, Inc., for the Caminitti Place Rental Project:

A. Approve the Agreement for Subordination of Mortgage subject to Legal review and approval, for the HOME Investments Partnership Program (HOME) assisted Caminitti Place Rental Project, owned by Community Enterprise Investments, Inc. (CEII); and

B. Authorize the Chairman or Vice Chairman to execute the Agreement and all related documents required to complete the Subordination Agreement, including any actions that may be required of the County Attorney’s Office.

[Funding: Not Applicable]

BACKGROUND:

On July 5, 2001, the Board approved a Rental Development Agreement with CEII for utilization of HOME Investments Partnerships Program (HOME) funds to construct an eight unit rental development for low income households (Exhibit I) named Caminitti Place Rental Project. CEII developed the facility and has continued to operate the development for the intended purpose since initial occupancy in compliance with the original Agreement and Mortgage and Note related to the development (see Exhibit II for copy of recorded Mortgage).

CEII is in the process of refinancing the first mortgage on the property with Florida Community Loan Fund (FCLF) and has requested that the County continue to subordinate its second mortgage to the new first mortgage and has provided an Agreement for Subordination of Mortgage (Exhibit III). $75,600 is still owed to the County on its second mortgage.

BUDGETARY IMPACT:

No County expenditures are involved in this transaction. Any recording or property transfer fees that arise will be paid by CEII.

LEGAL CONSIDERATIONS/SIGN-OFF:

The Agreement for Subordination of Mortgage is subject to final review and signoff.

PERSONNEL:

Not applicable to this recommendation.

POLICY/REQUIREMENT FOR BOARD ACTION:

Mortgage subordination requests must be reviewed and approved by the Board.

IMPLEMENTATION/COORDINATION:

Upon approval by the Board, Mortgage subordination will be coordinated with CEII. Neighborhood Enterprise Division (NED) will oversee the process with the assistance of the County Attorney’s Office to the extent necessary. NED will continue with the monitoring of the Project for rents, income limits, and occupancy requirements.

Attachments
Ex I-Caminitti HOME Agreement
Ex II-Caminitti Mortgage
Ex III-Subordination Agreement Caminitti