HomeMy WebLinkAbout2013 Ordinance No. 044•
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ORDINANCE NO. tf-t./
SERIES OF 2013
BY AUTHORITY
COUNCIL BILL NO. 41
INTRODUCED BY COUNCIL
MEMBER GILLIT
AN ORDINANCE AUTHORIZING THE REDEMPTION AND SALE OF PROPERTY
ACQUIRED THROUGH THE HOUSING REHABILITATION PROGRAM LOCATED AT 3685
SOUTH FOX STREET 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 June 26, 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 July 23, 2013 and on July 30, 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 3685 South Fox Street.
Section 2. The Mayor and the City Clerk are authorized to execute the proper fom1 of deed for
the conveyance of the property located at 3685 South Fox Street, Englewood, Colorado pursuant to
Section 71 of the Englewood Home Rule Charter.
Introduced, read in full, and passed on first reading on the 19th day of August, 2013.
Published by Title as a Bill for an Ordinance in the City's official newspaper on the 23rd day of
August, 2013.
Published as a Bill for an Ordinance on the City 's official website begi1m.ing on the 21st day of
August, 2013 for thirty (30) days.
Read by title and passed on final reading on the 3rd day of September, 2013.
Published by title in the City's official newspaper as Ordinance No. ~eries of 2013, on
the 6th day of September, 2013.
Published by title on the City's official website beginning on the 4th day of
September, 2013 for thirty (30) days.
I, Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify that the
above and foregoing is.,'1/Jrye copy of the Ordinance passed on final reading and published by
title as Ordinance No. '±7, Series of 2013 . ,
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COUNCIL COMMUNICATION
Date Agenda Item
August 19, 2013
INITIATED BY: Community Development Dept.
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STAFF SOURCE:
Subject: Redemption and Sale of
Property acquired through the
Housing Rehabilitation Fund
Harold Stitt, Senior Planner
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".
In 2005, 2006, 2007 and 2013, Council passed seven different ordinances approving redemption and sale of
seven other properties acquired through the foreclosure process .
• RECOMMENDED ACTION
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Approve an ordinance for the redemption and subsequent sale of 3685 South Fox 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.
One of the functions of the Fund is to redeem properties that have gone through the foreclosure process. The
Housing Rehabilitation Loan Program approves home improvement loans that are secured by deeds of trust,
generally as second or third mortgages (junior liens). The procedures of the Program require staff to have all
foreclosures reviewed by the Rehab Loan Committee (RLC}.
The foreclosure process is the primarily 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 fi lin g 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 there is nothing
the junior lien holder is required to do. All liens remain in full effect. If the homeowner does not redeem prior
to the Public Sale date, all junior lien holders must file a Notice of Lienor Intention to Redeem and Affidavit of
Amount Owed (Intent) within 8 business days after the Public Sale date if they are interested in redeeming 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 initial foreclosure notification for 3685 South Fox Street was received in April 2013. The Public Trustee's
Sale was set for June 12, 2013, but was continued until June 26, 2013. The property was sold to Colorado
Housing and Finance Authority, the first mortgagee who had initiated the foreclosure. The RLC was consulted
via email on July 2, 2013 and they voted to file the Intent with the Public Trustee 's Office. The Intent was filed
on July 8, 2013. As the only junior lien holder to file the Intent, the City of Englewood was notified on July 17
of the redemption amount to be submitted no later than noon on July 24, 2013. A wire transfer from the
Housing Rehabilitation Fund 46 was sent on July 23, 2013 to the Public Trustee 's Office. An email requesting
that a Public Trustee 's deed be issued in the name of the City of Englewood-Housing Rehabilitation Fund was
sent on July 29 2013. A Public Trustee 's Confirmation Deed was electronically filed and was recorded on July
30, 2013 at Reception #D3095828.
Given the very short time frame of the junior lien holder's redemption period, properties redeemed through •
the Housing Rehab Program are always brought to the Council after the fact for ordinance approval.
Section 72 of the Home Rule Charter requires that real property may be sold , but only by ordinance, not
using the emergency provision . Each property is brought before Council as earl y 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 private 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 received from any City of Englewood employee,
their family members, or any business in which a City employee has a financia l interest, then staff will submit
the offer to the City Council for approval.
FINANCIAL IMPACT
Fund 46 will cover all costs of the redemption and the subsequent sale of 3685 South Fox Street. There are no
other financial impacts to the City.
LIST OF ATTACHMENTS
Notice of Lienor Intention to Redeem and Affidavit of Amount Owed
Public Trustee 's Confirmation Deed in name of City of Englewood-Housing Rehabilitation Fund
Bill for an Ordinance •
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NOTICE OF 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:
0305-2013 Public Trustee Sale Number
June 26 2013 Date of Sale
November 21 2005 Date of Deed of Trust
Kathleen S. Pontius Grantor on Deed of Trust
Colorado Housing & Finance Authority __ Original Beneficiary of Deed of Trust
85177069 Reference Nos. of Recorded Deed of Trust
Reception No. and/or Page & Boo k No.
February 14, 2013 Recording Date of Notice of Election and Demand
D3019498 Reference No of Recorded Notice of Election and Demand
Recept 'on No. and/or Page & Book No.
Inform ation Regarding Right to Redeem:
City of Englewood-Housing Rehabilitation Fund Name of Redeeming Junior Lienor
-'--10=-=0=0-=E=n=g=le""'w=oo=-=d'-'P-'-k'""w~y ________ Address of Redeeming Junior Lien or
Englewood, CO 80110
303 .762 .2349 _________ Phone
jgrimmett@englewoodgov.org Email address
Deed of Trust Lien or Encumbran ce Entitling the Redemption*
November 21 2011 Recording Date of Junior Lien
_,A-"r-=a=pa=h=o-=-e ____________ County of Recording of Junior Lien
D1114962 ____________ Reference Nos . of Recorded Junior Lien
*If this is an HOA lien, the following is also required:
• If lien is recorded after the NED , a complete recorded copy of the HOA Declarations
• Notarized affidavit from the HOA officer or attorney stating amounts due on lien , super lien versus
junior lien (Cannot redeem on super lien)
You are hereby notified that the undersigned is entitled to redeem from the Public Trustee's Sale
described above. Be further advised that the unders igned is entitled to redeem as the owner of the
lien or encumbrance described above.
You are further notified that the amount owed on the lien or encumbrance , evidenced by the
attached instrument, is as follows:
_$""'1=3=,0=26~. 7~8~ __ Principal
_$"-'-'-1=,5-=-63=-=-·=-21'--__ Total of per diem interest from 02-11-11 through the date of this statement
~$~14~,5~8~9.~99 ___ TOTAL
_$L..-_1-'-'-.8=--1~ __ Per Diem interest@ 5.0 % per annum
I certify that the above amounts are true and correct to the best of my knowledge.
City of Englewood-Housing Rehabilitation Fund (Junior Lieno r)
July 5. 2013 /
DATE by: Alan White, Director
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/!Thf:l for.egoing Statement of Amount Required to Redeem Lienor's Lien was acknowledged before
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.}( ,._/fue}h'.s . ,,5~h--~~. ~,~Y of July , 2013, by Alan White, Director, City of Englewood
·•Wjt_ne~s..Rl,Y t:iand and official seal
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'·My .. corn.r.iiissfon e~pires: · Sept. 22, 2013 .. i';,·' ··:· ):::-·;;_., .• F" . '•
.;,.'':'
•Attach a true and correct copy of the recorded instrument with evidence of recording affixed by the Clerk and Recorder's
Office
eception#: D3095828, 07/30/2013 at 10:32 AM, 1 OF 1, Recording Fee $11.00
Electronically Recorded Official Records Arapahoe County, CO Matt Crane, Clerk
& Recorder •
CONFIRMATION DEED
(CRS §38-38--502)
Public Trustee's Foreclosure Sale No. 0305--2013
THIS DEED is made July 30, 2013 between Cynthia D Mares as the Public Trustee in and for the County of Arapahoe,
State of Colorado, grantor and CITY OF ENGLEWOOOD-HOUSING REHABILITATION FUND, grantee, the holder of
the certificate ofredemption whose legal address is 1000 ENGLEWOOD PARKWAY, ENGLEWOOD, CO 80110.
WHEREAS, 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) KATHLEEN S. PONTIUS
Original Beneficiary(ies) MORTGAGE ELECTRONIC REGISTRATION SYSTEMS,
INC . AS NOMINEE FOR PREMIER MORTGAGE GROUP,
L .L.C.
Current Holder of Evidence of Debt
Date of Deed ofTrusl
County of Recording
Recording Date of Deed of Trust
Recording Information (Reception Ntunber)
COLORADO HOUSING AND FINANCE AUTHORITY
November 21, 2005
Arapahoe
November 23, 2005
B5177069
WHEREAS, a violation was made in certain of the terms and covenants of said deed of trust as shown by the notice of
election and demand for sale filed with the Public Trustee; the said property was advertised for public sale at the place and in
the manner provided by law and by said deed of tr~ combined 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 recorded in the office of said county Clerk and Recorder, and
WHEREAS, all periods of redemption have e::>,.-pired.
NOW, THEREFORE, the Public Trustee, pursuant lo the power and authority vested by law and by the said deed of
trust, confirms the foreclosure sale and sells and conveys lo grantee the following described property located in the County of
Arapahoe, State of Colorado, to wit:
LOTS 13 AND 14, BLOCK 20, ENGLEWOOD, COUNTY OF ARAPAHOE, STATE OF COLORADO.
Also known by street and number as: 3685 S FOX STREET, ENGLEWOOD, CO 80110
THE PROPERTY DESCRIBID HEREIN IS ALL OF TIIE PROPERTY CURRENTLY ENCUMBER.ED BY TIIE
LlEN OF THE DEED OF TRUST.
To have and to hold the same, with all appurtenances, forever.
Executed on: July 30, 2013
Cynthia D :t-.•fares, Public Trustee in and for the County of Arapahoe, State of Colorado
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