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Written Communication 7. C.

BCC Regular Meeting

Meeting Date:	07/18/2019
Issue: Written Communication Concerning 2702 Weyland Circle
From:	TONYA GREEN
Department:	Neighborhood & Human Svcs
CAO Approval:

RECOMMENDATION:

June 13, 2019, communication from Tonya Brewer-Lambert requesting that the Board approve subordination of a State Housing Initiatives Partnership (SHIP) Program lien at 2702 Weyland Circle.

BACKGROUND:

Tonya Brewer-Lamber received $30,000 in State Housing Initiatives Partnership (SHIP) Program housing repair assistance in March 2019, as administered by the Community Action Program Committee. The SHIP program placed a five-year lien on her property (Exhibit I). After completion of the repairs under the SHIP program, Ms. Lambert applied for refinancing of her first mortgage with Navy Federal Credit Union (NFCU), and for additional funds so she could make other repairs to her home. Her loan with NFCU was denied in part due to the position of the SHIP lien, as the refinancing would place the new loan behind the County SHIP lien. The SHIP program policy is not to subordinate; however, Ms. Brewer-Lambert has submitted correspondence (Exhibit II) requesting that the SHIP lien be subordinated to the new mortgage she wishes to obtain from NFCU.

Ms. Brewer-Lambert has provided the Neighborhood Enterprise Division office with information requested to review her request. The property appraisal is $118,000, with the proposed new first mortgage loan amount being $70,000. The equity in the home is sufficient to provide a 84.75% combined loan to value ratio. Property taxes are current and the homeowner has homeowner's insurance. The proposed new mortgage payment is within affordability guidelines for the homeowner and the loan to be provided will have a fixed loan term.

BUDGETARY IMPACT:

No impact to the SHIP program if the Board approves Ms. Brewer-Lambert's request.

LEGAL CONSIDERATIONS/SIGN-OFF:

If approved by the Board, a subordination agreement will be reviewed by County Legal as necessary.

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

Current SHIP policy is not to subordinate liens. Any deviation from policy requires Board approval.

IMPLEMENTATION/COORDINATION:

If approved by the Board, Neighborhood Enterprise Division (NED) will coordinate paperwork with the County Attorney's office and the homeowner as needed.

Attachments
Ex I-SHIP lien 2702 Weyland
Ex II-Communication 2702 Weyland Request