To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, WATERFRONT AND COMMUNITY SERVICES DIRECTOR
TITLE
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APPROVE THE SUBSTITUTION OF TRUSTEE AND FULL RECONVEYANCE OF THE REHABILITATION LOAN LIENS FOR 2522 ROBINSON STREET, REDONDO BEACH, CA 90278, UPON FULL REPAYMENT OF $88,495.40 UNDER THE DEFERRED PAYMENT LOAN PROGRAM
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EXECUTIVE SUMMARY
Staff recommends the City Council approve the Substitution of Trustee and Full Reconveyance of the rehabilitation loan liens recorded against 2522 Robinson Street, Redondo Beach, CA 90278. The property owner, Beverly A. Whitaker, received two rehabilitation loans through the City’s former Deferred Payment Loan Program in 2008 and 2010. The loans were secured by liens recorded against the property and are required to be repaid, including accrued interest, before being released.
On August 28, 2026, the City received a cashier’s check from First American Trust in the amount of $88,495.40, representing payment in full of the two outstanding rehabilitation loans, identified as Deferred Loan Instrument Nos. 20081342035 and 20100409534. As the loans have been fully repaid, the City Council’s approval of the Substitution of Trustee and Full Reconveyance will authorize release of the City’s liens against the property.
BACKGROUND
The former Redevelopment Agency provided rehabilitation loans to qualifying low-income Redondo Beach homeowners through the Deferred Payment Loan Program. The program provided low-interest financing for eligible home improvements, including roofing, plumbing, electrical, and bathroom repairs. The loans were secured by liens recorded against the assisted properties and were to be repaid in accordance with the terms of the applicable loan agreements.
On December 15, 2008, Beverly A. Whitaker received a $54,911 rehabilitation loan for improvements to 2522 Robinson Street. On March 11, 2010, Ms. Whitaker received an additional $8,300 rehabilitation loan for further rehabilitation work. Both loans were secured by liens recorded against the property and accrued interest at a rate of four percent per year for ten years.
The loans were originally made by the former Redevelopment Agency. Following the State’s dissolution of redevelopment agencies in 2012, the City transferred the loans, along with other similar housing loans, to the Redondo Beach Housing Authority. Repayment proceeds from these loans constitute housing assets and must be used by the Housing Authority in accordance with applicable affordable housing laws. The repayment proceeds therefore cannot be deposited into the City’s General Fund.
On August 28, 2026, the Housing Division received a cashier’s check from First American Trust in the amount of $88,495.40, representing payment in full of the outstanding principal and accrued interest for both rehabilitation loans. The loans are identified by Deferred Loan Instrument Nos. 20081342035 and 20100409534.
Because the rehabilitation loans have been paid in full, the associated liens should now be released from the property. The Substitution of Trustee and Full Reconveyance documents provide for the formal release of the liens from the title pertaining to 2522 Robinson Street. Approval of this item will complete the City’s role in releasing the rehabilitation loan liens following full repayment of the outstanding obligations.
COORDINATION
The Substitution of Trustee and Full Reconveyance has been reviewed and approved by the City Attorney’s Office.
FISCAL IMPACT
There is not fiscal impact associated with this item as the loan has been repaid in full.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Substitution of Trustee and Full Reconveyances - First Deed and Promissory Note, June 23, 2008
• Substitution of Trustee and Full Reconveyances - Second Deed and Promissory Note, March 11, 2010
• Deferred Payment Loan Program - Full Reconveyance Form for First Promissory Note
• Deferred Payment Loan Program - Full Reconveyance Form for Second Promissory Note
• Copy of Cashier’s Check - August 27, 2026