MEMORANDUM

City of Lawrence

Planning and Development Services Department

TO:              David L. Corliss, City Manager

FROM:         Margene K. Swarts, Assistant Director, Development Services

CC:                  Scott McCullough, Director, Planning and Development Services

DATE:           August 22, 2012

RE:              Subordination Agreement

The Community Development Division received a request for a Subordination Agreement for a lien the City holds for a loan recipient.  The information regarding the request follows:

In 2005, Deron Belt, 811 E. 11^th Street, participated in the City’s Comprehensive Housing Rehabilitation Program.  In order to participate in the program, he was required to sign a mortgage and mortgage note to protect the City’s interest in the property.  Mr. Belt wishes to refinance the primary mortgage on the property and in order to do so the City must subordinate the liens to the new loan with Capital City Bank.  The City’s interest will be protected and staff recommends approval. 

The City Clerk will have the documents for the Mayor's signature.  If you have further questions, please let me know.