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Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - September 24, 2013
September 24, 2013 - Regular Meeting
Agenda Item #31


Subject
Subordination of Mortgage - LaMirada Gardens

Briefings
None

Contact and/or Presenter Information

Suzie Dobbs, Community Development Manager, Ext. 3937

Denise Thomas, Housing & Community Development Coordinator, Ext. 3474



Action Requested
Approval and Execution of Subordination Agreement

Enabling/Regulating Authority

Comprehensive Plan Objective 11.1.4 - Efficiency in Service Delivery



Background Discussion
  • On May 28, 2002, Manatee County executed a Funding Agreement with LaMirada Gardens, LTD utilizing State Housing Initiatives Partnership (SHIP) program funds in the amount of $350,000.00 for partial funding for the construction of 144 affordable rental units in Manatee County.
  • Total cost to acquire the property and construct all the units was $12,800,000.00.
  • Manatee County's mortgage is a third mortgage and is inferior and subordinate to a first and second mortgage executed by the Mortgagor in favor of the Housing Finance Authority of Manatee County, Florida, assigned to U.S. Bank National Association, as Trustee, and SunTrust Bank in the aggregate principal amount of $7,750,000.00 which encumbers the property and additional parcels described thereunder.
  • A Land Use and Deed Restriction Agreement (LURA) was simultaneously executed to ensure long term affordability of the rental units.
  • LaMirada Gardens continues to be operated as an affordable rental apartment complex in compliance with the LURA.
  • LaMirada Gardens, Ltd., a Florida limited partnership, having an address at c/o Related Affordable LLC, 60 Columbus Circle, New York, NY  10023 (“Borrower”) is requesting subordination of Manatee County's SHIP Mortgage, as the current mortgage is being satisfied with a new mortgage from Wells Fargo/Fannie Mae being executed.
  • Staff has no objections to the execution of the requested Subordination document.


County Attorney Review
Other (Requires explanation in field below)

Explanation of Other
See attached e-mail from William Clague, Deputy County Attorney

Reviewing Attorney
N/A

Instructions to Board Records
Please return one of the two executed originals to Denise Thomas, Neighborhood Services Department, Extension 3474.

Cost and Funds Source Account Number and Name
N/A

Amount and Frequency of Recurring Costs
N/A


Attachment:  LaMirada Funding Agreement.pdf
Attachment:  LaMirada Funding Agreement Amendment 1.pdf
Attachment:  LaMirada Mortgage.pdf
Attachment:  LaMirada LURA.pdf
Attachment:  LaMirada Legal Opinion.pdf
Attachment:  [Modified Document] Subordination Agreement - La Mirada.pdf