To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, COMMUNITY SERVICES DIRECTOR
TITLE
title
APPROVE THE SUBSTITUTION OF TRUSTEE AND FULL RECONVEYANCE OF THE REHABILITATION LOAN LIEN PLACED ON THE PROPERTY AT 728 NORTH JUANITA AVENUE, REDONDO BEACH, CA 90277
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EXECUTIVE SUMMARY
The proposed action provides for the substitution of trustee and full reconveyance of the rental rehabilitation loan lien placed on 728 North Juanita Avenue. As part of the Deferred Loan Program Agreement, the City recorded a lien on the property until the home repair loan was repaid. On June 1, 2012, the City received a check, drawn by First American Title Company, in the amount of $86,788.87 to pay the outstanding Deferred Payment Loan (Instrument No. 20080230391) note in full. Accordingly, the City may proceed with release of the property lien.
BACKGROUND
The owners of 728 North Juanita Avenue, Douglas Jon Black, Trustee of the Douglas Jon Black Family Trust, dated September 8, 1994, received a $74,000 loan on February 7, 2008, for housing rehabilitation work. This loan was made possible through the City's Deferred Payment Loan Program, which provided low-interest home improvement loans for qualifying low-income Redondo Beach homeowners. The loan could be used to pay for roofing repairs, plumbing and electrical work, and bathroom remodeling. In this case, the annual interest rate was 4% per year for ten years. The Deferred Payment Loan resulted in a lien on the property that was to be removed from the property title once the loan was paid in full.
On June 1, 2012, First American Title Company paid $86,788.87 for the loan plus interest in full with a check made out to the City of Redondo Beach. The payment represented a full reconveyance of the original loan lien of $74,000 in place on 728 North Juanita Avenue. Funds received in 2012 were deposited to the Housing Successor Agency fund to repay, and close out, this individual loan. Staff track and monitor this al...
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