HomeMy WebLinkAbout2013 Ordinance No. 012•
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ORDINANCE NO. IA
SERIES OF 2013
BY AUTHORITY
COUNCIL BILL NO. 10
INTRODUCED BY COUNCIL
MEMBER WOODWARD
AN ORDINANCE AUTHORIZING THE REDEMPTION AND SALE OF PROPERTY
ACQUIRED THROUGH THE HOUSING REHABILITATION PROGRAM LOCATED AT 4896
SOUTH DELAWARE IN THE CITY OF ENGLEWOOD, COLORADO.
WHEREAS, the City Council of the City of Englewood accepted assignment from the
Englewood Housing Authority of all rights, assets and liabilities associated with the Housing
Rehabilitation Loan Program by the passage of Ordinance No. 23, Series 1999; and
WHEREAS, Englewood City Council authorized amending Title, 4, Chapter 3, with the
addition of a new Section 13 entitled "Housing Rehabilitation Fund" by the passage of Ordinance
No.26,Series 1999;and
WHEREAS, the Englewood Housing Rehabilitation Program was created in 1976 to preserve
the existing housing stock in Englewood and to address the problems of low-income families with
the financing of major household repairs; and
WHEREAS, the Rehab Program approves home improvement loans that are secured by deeds of
trust recorded on the property representing generally second or third mortgages; and
WHEREAS, the homeowner defaulted on her loans and the first mortgage holder initiated
foreclosure; and
WHEREAS , this property went to public sale on February 20 , 2013; and
WHEREAS , the Englewood Rehab Loan Committee recommended filing the Intention to
Redeem Notice with the public Trustee's Office; and
WHEREAS, the City redeemed the property on March 18, 2013 and on March 25 , 2013
received a Public Trustee's Confirmation Deed issued to the City of Englewood Housing
Rehabilitation Fund; and
WHEREAS, the property will be sold to a private owner-occupied party who has secured his
own financing and any remaining funds will be returned to the Housing Rehabilitation Fund; and
WHEREAS, if an offer to purchase is received from any City employee, their family members ,
or any business in which a City employee has a financial interest, the offer will be submitted to the
Englewood City Council for approval ;
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NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, AS FOLLOWS:
Section 1. The City Council of the City of Englewood hereby authorizes the redemption, and
subsequent sale of a Housing Rehabilitation Property acquired through the foreclosure process
located at 4896 South Delaware.
Section 2. The City Council of the City of Englewood authorizes the City Attorney to initiate
eviction proceedings and/or file any necessary documents in Bankruptcy Court.
Section 3 . The Mayor and the City Clerk are authorized to execute the proper fonn of deed for
the conveyance of the property located at 4896 South Delaware, Englewood, Colorado pursuant to
Section 71 of the Englewood Home Rule Charter.
Introduced, read in full, and passed on first reading on the 15th day of April, 2013.
Published by Title as a Bill for an Ordinance in the City's official newspaper on the 19th day of
April, 2013.
Published as a Bill for an Ordinance on the City's official website beginning on the 17 th day of
April, 2013 for thirty (30) days .
Read by title and pas sed on final reading on the 6th day of May, 2013.
Published by title in the City's official newspaper as Ordinance No . iJ-, Series of 2013, on
the 10th day of May, 2013.
Published by title on the City's official website beginning on the 8th day of
May, 2013 for thirty (30) days.
P. Pem1, Mayor
Loucrishia A. Ellis, City Clerk
I, Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify that the
above and foregoing is ? true copy of the Ordinance passed on final reading and published by
title as Ordinance No.f.2:,_Series of 2013.
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• COUNCIL COMMUNICATION
Date Agenda Item Subject: Redemption and
April 15, 2013 Sale of Property acquired
11 a i through the Housing
Rehabilitation Fund
INITIATED BY STAFF SOURCE: Harold Stitt, Senior Planner,
Community Development Department. Janet Grimmett, Housing Finance Specialist
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
Council passed Ordinance No. 23, Series 1999 accepting assignment from the Englewood Housing Authority
of all rights, assets and liabilities associated with the Housing Rehabilitation Loan Program and also passed
Ordinance No. 26, Series , 1999 amending Title 4, Chapter 3, by the addition of a new Section 13 entitled
"Housing Rehabilitation Fund".
Since 2005, Council has passed ordinances approving redemption and sale of seven other properties acquired
through the foreclosure process. Those properties are: 4231 South Cherokee Street (Ordinance No. 7, Series
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of 2005), 4180 South Acoma Street (Ordinance No. 8, Series of 2005), 3596 South Bannock Street (Ordinance
No. 32, Series of 2005), 4165 South Washington Street (Ordinance No. 42, Series of 2005), 3030 South
Sherman Street (Ordinance No. 10, Series of 2007, 2397 West Harvard Street (Ordinance No. 68, Series of
2007), and 290 East Bellwood Drive (Ordinance No. 7, Series of 2009).
RECOMMENDED ACTION
Approve an ordinance for the redemption and subsequent sale of 4896 South Delaware Street (a single family
home) acquired through the foreclosure process as defined by Colorado State statutes.
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
The Housing Rehabilitation Program was created in 1976 by the City of Englewood to preserve the existing
housing stock in Englewood, and to also address the problems that homeowners experience with the financing
of major household improvements. The City Attorney required that the new Housing Rehab Program not be
administered directly by the City to avoid any conflicts with a State statute that prohibited any municipal
government from making loans to its citizens. It was decided to use the Englewood Housing Authority (EHA)
as the conduit to manage and operate the Program.
The legal authority to operate and manage the Rehab Program was assigned to the City in 1999 through an
agreement with the EHA. It was determined at that time that the Program and city staff should be under the
direct management of the Community Development Director. In order to avoid any conflict with Colorado
• State Statutes, an enterprise fund was created under TABOR regulations known as the Housing Rehabilitation
Fund (Fund). The Rehab Program retained its own funding sources designated as Fund 45 and Fund 46 that are
used to support the operations of the Program .
The foreclosure process is the primary tool for lenders to use to insure repayment of their loans. When a
homeowner defaults, the lien holder is able to initiate the foreclosure process to collect the monies that are
owed to them. This process is started by filing the required legal documents with the Public Trustee's Office.
This filing triggers a whole sequence of events that is dictated by state statues . The Public Trustee will set a
Public Sale date for the property and publish this information in a newspaper of general circulation . Each
recorded lien holder receives a copy of that advertisement as well as a Public Trustee 's Notice of Rights to Cure
or Redeem. The homeowner can cure the default any time from the initial notification prior to the Public Sale
date. If the homeowner redeems the property, then the foreclosure process is ended and all liens remain in full
effect. If the homeowner does not redeem prior to the Public Sale date, all junior lien holder's must file a
Notice of Intention to Redeem and Affidavit of Amount Owed (Intent) within eight (8) business days after the
Public Sale date if they want to redeem the property to collect their own indebtedness . If the Intention to
Redeem is not filed, then the lien holder loses their rights under the deed of trust provisions and the property is
no longer collateral for their loan .
The foreclosure of 4896 South Delaware Street w as initiated by the first mortgagee in May 2012. The Public
Trustee's Sal e originally set for September 5, 2 012 was continued until February 20, 2013 . At that sale, the
property w as sold to ColFin Al-CO 1, LLC for $1 over the first mortgagee's bid. The RLC was consulted via
email on Feb r uary 28 , 2013 and voted to file Notice of Intention to Redeem with the Public Trustee 's Office.
That Noti ce was filed on March 1, 2013 . As the only junior lien holder to file an Intent to Redeem, the City was
notified on March 12, 2013 by the Public Trustee's Office that the redemption amount of $136,629.59 was due
no later than Noon on March 19, 2013. A wire transfer from the Housing Rehabilitation Fund 46 was sent on
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March 18, 2013, to the Public Truste e's Office for the redemption. A letter requesting that a Public Trustee's •
deed b e issued in the name of the City of Englewood-Housing Rehabilitation Fund was sent on March 19,
2013. A Public Trustee 's Deed was electronically filed and was recorded on March 25 , 2013 at Reception
#03036 541.
Giv en the v ery short time frames of the junior lien holder redemption period, properties redeemed through the
Housing Rehab Program are always brought to the Council after the fact for ordinance approval and coupled
with authorization to sell the property as stipulated in Section 72 of the Home Rule Charter. Each property is
brought before Council as early in the process as possible so that marketing efforts can begin . This process will
expedite the subsequent sale and closing of the property.
The property will be listed for sale as soon as a staff inspection has been completed and any necessary repairs
have been made. The property will be sold to a pri v ate owner-occupied party who has secured their own
permanent financing. The proceeds from the sale of the property will be returned to the Housing Rehabilitation
Fund 46. If an offer to purchase the property is recei v ed from any City of Englewood employee, their family
members, or any business in which a City employee has a financial interest, then staff will submit the offer to
the City Council for approval.
On March 15, 2013, the former owner filed for Chapter 7 Bankruptcy protection with the U.S . Bankruptcy
Court. Since this filing was after the February 20, 2013 Public Trustee sale , the bankruptcy filing will not affect
the City's redemption of the property. However, since the bankruptcy filing occurred less than a month after
the Public Trustee sale, staff will monitor the bankruptcy proceedings to insure the City's interest in the property
are full y protected. Staff is currently working with the former owner to affect a voluntary sixty day vacation of
the property. In the event that such an agreement cannot be reached , the eviction process w ill need to be
initiated. •
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• FINANCIAL IMPACT
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Fund 46 will cover all costs of the redemption and the subsequent sale of 4896 South Delaware Street. There
are no other financial impacts to the City.
LIST OF ATTACHMENTS
Notice of Intention to Redeem and Affidavit of Amount Owed
Public Trustee's Deed in name of City of Englewood-Housing Rehabilitation Fund
Bill for an Ordinance
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NOTICE OF LIENOR INTENT TO REDEEM AND AFFIDAVIT OF AMOUNT OWED
TO THE PUBLIC TRUSTEE OF THE COUNTY OF ARAPAHOE, STATE OF COLORADO
Information Regarding Public Trustee's Foreclosure Sale:
_#1443-2012. ___________ Public Trustee Sale Number
_February 20, 2013 Date of Sale
_B5116227 08/05/2005 Recording Information ofDeed ofTrust
D2051126 05/11/2012 Recording Information of Notice of Election and
Demand
lnformation•Regarding Right to Redeem:
_City of Englewood _______ Name of Redeem ing Junior Lienor
_ 1000 Englewood Pkwy Address of Redeeming Junior Lien or
_Englewood, CO 80110 ____ _
_ 303.762.2349 ph 303.782.6895 fax_Telephone and Fax Numbers
jgrimmett@ englewoodgov.org, ____ Email address
_Deed of Trust ________ Lien or Encumbrance Entitling the Redemption*
_ October 11, 2000 _______ Recording Date of Junior Lien
_Arapahoe __________ County of Recording of Junior Lien
_B0131369 __________ Reference Nos. of Recorded Junior Lien
You are hereby notified that the undersigned is a Junior Lienor pursuant to CRS §38-38-100.3(12)
entitled to redeem from the Public Trustee's Sale described above pursuant to CRS §38-38-302(1).
Be further advised that the undersigned is entitled to redeem as the owner of the lien or
encumbrance described above . A copy of any recorded assignment to the lien is attached.
Junior Lienor is entitled to redeem under CRS §38-38-302(1 )(c) because the instrument evidencing
junior lien , which was recorded in the incorrect county named below prior to the date and time of
the record in g of the Notice of Election and Demand , was rerecorded in the correct county, as
described above, at least fifteen calendar days prior to the actual date of sale.
The recording information for the incorrect county is : not applicable
Incorrect County of Recording of Junior Lien ___________ _
Recording Date of Junior Lien ___________ _
Recording Reception Number ___________ _
You are further notified that the amount owed on the lien or encumbrance , ev idenced by the
attached instrument, is as follows:
_$12 ,076 .00 ___ Principal
__ O Total of per diem interest from ___ through the date of this statement
_ 12,076.00 TOT AL
__ O Per Diem interest @_0_% per annum
I certify that the above amounts are true and correct to the best of my knowledge.
City:?:oo~~
_March1,2013______ ~ ~
DATE Junior Lienor by Alan White, Director
,/ Tti'e foregoing Statement of Amount Required to Redeem Lienor's Lien was acknowledged before
f'•' .r . ' . .
,/'. . ,_f!;letthis~J,J>,Lday of_March __ , 2013_, by_Alan White, Director, City of Englewood __
.~i:-... ~= . .,_,:__ . J' .-_s..,, •· n·r /, ,,.. >~ --··
4' _ > Witness· trly hafld and official seal ~
.'~' .. ;' :~\_>~·~v t6~~(;~~--~4Jr~~:_Sept 22, 2013_ ~~~
i,, c,•· ,_. , • N ry Public
lf this'ii~n Htj~ lien , the follow ing is also requ ired :
• · If liet11is recorded after the NED, a complete recorded copy of the HOA Declara~ons ! {' .,_.,
• Notarized affidavit from the HOA officer or attorney stating amounts due on lien, super lien versus
junior lien (Supe r lien cannot be redeemed as a junior lien)
• Attach a true and correct copy of the instrument with evidence of recording affixed by the Clerk and Recorder's Office
ACPT Revised 06/2011 , NOTICE OF INTENT TO REDEEM AND AFFIDAVrr OF AMOUNT OWED
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~eception #: D3036541, 03/25/2013 at 10:12 AM, 1 OF 1, Recording Fee $11.00
~lect~onically Recorded Official Records Arapahoe County, CO Matt Crane, Clerk
& Res;::or,der
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CONFIRMATION DEED
(CRS §38-38-502)
Public Trustee's Foreclosure Sale No. 1443-2012
THJS DEED is made March 25, 2013 between Cynthia D Mares as the Public Trustee in and fo r the County of Arapah oe,
State of Colorado, gnmtor and CITY OF ENGLEWOOOD-HOUSING REHABILJT ATION FUND, grantee, the holder of
the certificate of redemption who se legal address is 1000 ENGLEWOOD PARKWAY, ENGLEWOOD, CO 80110.
\VHEREAS, the Grantor(s) described below did convey to the public trustee, in trust , the property hereinafter described
to secure the payment of the indebtedness provided in said deed of trust:
Original Grantor(s ) Donna I. Bwidy
Original Beneficiary(ies) Mortgage Eleclronic Regislration Systems., Inc. acting solely as a
CLDTent Holder of Evidence of Debt
Dale of Deed of Trust
Co unty of Recording
Recording Date of Deed of Trust
Recording Information (Reception Number)
nominee for RBC Mortgage Company, an Illinois Corporation
NATIONST AR MORTGAGE LLC
July 25, 2005
Arapahoe
August 05, 2005
B5116227
WHEREAS, a violation was made in certain of the terms and covenants of said deed of trus t as shown by the notice of
election and demand for sale filed with the Public Trustee; th e said property was advertised for public sale at the place and in
th e manner provided by law and by said deed of trust; combin ed notice of sale and right to cure and redeem was given as
required by law; said property was sold according to said combined notice; and a certificate of purchase thereof was made
and re corded in the office of said county Clerk and Recorder; and
WHEREAS, all periods of redemption have expired.
NOW , THEREFORE, the Public Trustee , pursuant to the power and authority ve sted by law and by the said deed of
trust, confirms the foreclosure sale and sells and conveys to grantee the following described property located in the County of
Arapahoe, Stale of Colorado, to wit:
The West 133 feet of Lot 8, B lock 3, Koehler Subdivision, County of Arapahoe , Slate of Colorado.
Also known by street and number as: 4896 So uth Delaware Street., Englewood, CO 80110
THE PROPERTY DESCRIBED HEREIN IS ALL OF THE PROPERTY CURRENTLY ENCUMBERED BY TI-IE
LCEN OF THE DEED OF TRUST.
To have and to hold the same, with all appurtenances, forever.
Executed on: March 25, 2013
Cynthia D Mares, Public Trustee in and for the County of Arapahoe , State of Colorado
When Recorded Return Lo: Arapahoe Co unty Public Trustee