HomeMy WebLinkAbout2009 Ordinance No. 007• ORD INANCE NO. '1
SERIES OF 2009 --
BY AUTHORJTY
COUNC IL BILL 0 . 8
INTRODUCED BY COUNCIL
MEMBER McCA SLIN
AN ORDIN ANCE AUT HORJZ fNG THE REDEMPTIO N AND SALE OF PROP l:RTY
ACQUIRE D THROUGH THE HG USING REHABILITATION PROGRAM LOCATE D AT 290
EAST BELL EWOOD DRIVE IN THE CITY OF ENGLE WO OD, COLORADO .
WHEREAS, the City Cour,ci l of the City of Englewood accepted assignment from the
Fng lewood Hou si ng Authority of all rights, assets and lia bi liti es assoc iated with the Housing
Rehabilitati on Loa n Program by the pa ssage of Ordinance No. 23, Series 1999; and
WHEREAS , Englewood Ci ty Council authorized amending Title, 4, Chapter 3, with the
addition of a new Section 13 entitled ''H ousing Rehabilitation Fund " by the passage of Ordinance
No. 26, Series 1999; and
WHEREAS , the Englewood Housin g Rehabilitation P;ogra,11 was created in 19 76 to preserve
the existing hou sing stock in Englewood and to addres s the problems of low-i ncome fam ilies with
the financin g of majo r hou sehold rep ai rs; and
WHEREAS, the Rehab Program approves home improvement loans that are secured by deeds of
• trust recorded on the property representing generally sec ond or third mortgages ; and
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WHEREAS, the homeowner defaulted on her loans and th e first mort gage holder initiated
foreclosure; and
WHEREAS , the Englewood Rohab Loan Committee was cons ult ed at their September, 2008
meeting and they recommended filing the Intenti on to Red eem Notice with the public Trustee 's
Office; and
WHEREAS , thi s pro pert y went to pu bli c sa le on February 4, 2009, and the prop ert y was
redeemed by the Ci ty of Englewood-Hous ing Rehab ili tation Fund ; and
V. •. IEREA S, •.he City redeemed the property on February 18, 2009 and received a Publi c
Tru stee 's Co nfirmati on Deed wa s issued to the City of Englewood Housing l<ehabilitation Fund :
and
WHEREAS, staff will ask pem1iss ion of th e Co urt to rent the property until th e pendin g laws uit
is seu led : and
WHEREAS , after settlement of the laws uit the pro perty will be sol d to a private owner-
occ upied part y who ha s sec ured hi s own fin ancing and any remai ning fund s wi ll be reu •:ned to th e
Housing Rehabilit ati on Fund; and
WHEREAS , ifan offer to purchase is rece ived from any City employee , th eir family members,
or any busines s in whi ch a City emplo yee has a financial interes t, the offer wil l be submiued lo the
Eng lewood Ci ty Counc il fo r approva l;
9 bi
NOW , THEREFORE , BE IT ORDAlNED HY THE CITY COUNC IL OF THE CITY OF
ENGLEWOOD . COLORADO, AS FOLLOWS :
Sectivc, : . !'he City Council of the City of Englewood hereby autho, izes the redemption ,
interim rental and subsequent sale of a Housi ng Rehabili tati on Property acquired through the
foreclo sure proce ss located at 290 East Bell ewood Drive.
Section 2. The Mayor and the City Clerk are authori zed to execut e the rental agreement for the
property located at 290 East Bellewood Drive , Englewood, Coloradc, pursu ant to Secti on 71 of the
Englewood Home Ruic Charter .
Section 3. The Mayor and the City Cl erk are authorized to execute the proper form of deed for
the conveyance of the property located at 290 East Bellewood Drive, Englewood , Colorado
pursuant to Section 71 of the Englewood Home Rule C:harter.
Introduced , read in full , and passed on first reading on the 23rd day of March , 2009.
Published as a Bill for an Ordinance in the City 's official newspaper on the 27th of March, 2009 .
Published as a Bill for an Ordinance on the City's official website beginning on the 25th day of
March, 2009 for thirty (30) days .
Read by title and passed on final reading on the 6th day of April, 2009 .
n.,bJished by title in the City's official newspaper as Ordinance No. 'l_, Series of 2009, on
th• Jth day of Apri l, 2009.
~KW~ \) __ ., __ .•. Woodward, Mayor
I, Loucrishia A. Ellis, City Clerk of the City of Englewood , Colorado , hereby certify that the
abo ve and foregoing is "fo/-'e copy of the Ordinance passed on final eadin g and published by
title as Ordinance No . _f._. Series of 2009 .
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COUNCIL COMMUNICATION
Date : Agenda Item: Subje ct:
March 23, 2009 11 a i Redemption and Sa le of Pr o perty acquired through
th e Housing Rehabilitati on Fu nd
Initiated By: I Staff Source :
Comm u nity Development Departm ent Janel Grimmett, H ousi n g Fin an ce Sp eciali st
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
Council passed Ordinance N o. 23 , Seri es 1999 acce pting assignment from th e En glewood H o us ing
Authority of all ri gh ts, asse ts and li ab iliti es associa ted with the H ousing Rehabilitati o n Loa n Program
and also pas sed O rdinance N o. 26, Series, 1999 am ending Titl e 4, Chapter 3, by th e additi on of a
n ew Sec tion 13 en l :lled "H ousin g Rehabilitation Fund ."
Fr om 2005 -2007, Cou ncil pas se d six ordinances approving redemption and sa le of si x oth er
properti es acquired th ro ugh th e fo reclosure process .
RECOMMENDED ACTION
A pprove a b ill for an o rdin ance fo r the redempti on and subsequent sa le of 290 Eas t Bell ewood
Drive (a single fa mily home) acq uired through th e foreclosure process as defi ned by Colorado State
Sta tut es,
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
The H ousing Rehabilitati on Program was c rea ted in 1976 by th e City of Englewood to prese rv e th e
ex isting hous in g stock in Englewood, and l o also address th e problems th at homeown ers
ex p erien ce w ith the fi nan ci ng of maj or h ouseh old improvem ents. Th e City Attorn ey req uired th at
the new H ous in g Re h ab Prog ram not be ad mini stered direc tl y by th e City to avoid any co nflicts
with a State Sta tut e th at p rohi bi ted any munici pal gove rnm ent fr om making loa ns l o Its citi ze ns. II
was decided 10 use the Engl ewood Housing Au thori ty (EHA ) as th e conduit to manage and operat e
th e Pr ogra m.
The lega l autho ri ty 10 operat e and manage th e Rehab Program was assign ed 10 th e City in 1999
through an agreemen t w ith th e EHA. II was determ in ed al th at lime th at th e Pr ogram and City staff
sho uld bn under th e direct management of th e Communi ty D eve lopment Direc tor. In ord er l o
avo id any co nfli ct w ith Colorado Stal e Stat utes, an enterpri se fund was crea ted und er TA BOR
regulati ons kn own as th e H ousin g Rehab ilitat ion Fund (Fund). Th e Rehab Program retained its own
fundin g sources des ignated as Fu nd 45 and Fund 46 that are used 10 suppo rt th e op erati ons of th e
Program .
One o f lhe func lio ns o f lhe Fund 1s to redee m properli es th al have go ne thro ugh th e forecl os ure
process . The H o using Rehabilitati o n Lo an Program approves hom e improvem ent loans th al are
secured b dee ds of tru st, generall y as seco nd or third mo rtgages (j uni o r li e ns). The p rocedures of
th e Program require staff l o have all foreclosures reviewed by th e Rehab Lo an Committee (RLC )
after th e property ha s bee n so ld al a public sa le. Th e RLC consis ts of three members.
c urrently: 1) Jeffrey Jo nes, U S Bank ; 2) Christin e Hart, Acco untant, City of Englewood Fin ance and
Administrative Services; and 3) Marlene Mosman, a low-income homeowner and En gl ewood
resident.
Th e foreclosure process is th e primary 1001 fo r lenders 10 use 10 insure repaym enl of thei r loans .
When a homeowner defaults, the lien ho ld er is able to initiale th e fo reclosure proces s to coll ect th e
monies !hat are owed 10 !hem. Thi s process is started by filin g th e re quired legal documents with
th e Publi c Tru stee's Office . Thi s filing triggers a w hole seq uence of eve nts that is dictated by State
Statu tes . Th e Publi c Tru s1ee will se t a Public Sa le dale fo r th e pr operty and publish this informatio n
in a newspaper o f ge nera l clrculalion. Ea ch recorded li en holder re ceives a copy of th al
advertisement as well as a Public Trustee's Combined N o tice of Sa le and Right to Cure and
Redeem.
Th e homeowner can cure 1h e default and must file a Notice o f Inten t to Cure at lea st 15 ca l endar
days pri o r to the firs! scheduled sale date or an y dal e to which the sale is continued. This time
frame represen ts approx imately a minimum fou r-mo nth time period. If the homeowner redeems
the property, 1hen th e foreclosure process is ended and there is no thing 1he junior lien holder is
requi red to do. All li ens remain in full effect. If th e hom eowner does not cure th e d efault, th e
pro perty is so ld at th e Public Sale to th e highesl and best bidder • generall y th e lend er that i nitia ted
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1h e foreclosu re. Eac h juni or li en ho lder must fil e a Notice of Intent to Rede em within 8 b usiness •
days after th e Public Sa le date if they are interested in redeemi ng th e property to collect th ei r own
indebtedness . If th e lnlent to Redee m is no t fil ed, !h en th e lien holders lose th eir rights under th e
deed of trust provisions and th e property is no longer coll ateral for !h ei r loa n. This means thal a
junior li en holder w ill not know if 1h ey nee d to file th e Notice of lnlenl 10 Red ee m until th e
homeo w n er's cu re p eri od has exp ired and th e Public Sale has bee n held.
Given the very short time frames of th e junio r lien holder redemptio n p eri od, properti es redee med
lhrough th e Ho using Rehab Program are always bro ughl l o th e Counci l afler th e fact for o rdinance
approval. Section 72 of lhe H o me Rule Charter requires that rea l property may be so ld, but onl y by
o rdinance, not using th e em erge ncy p rovisio n. Ea ch pwperty is broughl before Counc il as ea rl y in
th e process as possi bl e so 1h at marke l ing effo rts can begin. Thi s process w ill ex p ed ite th e
subsequen t sa l e and closing o f Ih e pro perty.
Th e foreclosure no tifica tion fo r 290 Eas t Bellewood Drive was rece ived in Janu ary 2008. Th e initial
Public Sa le da t e was se l for May 21, 2008 . The Public Sa le was continued until February 4, 2009 .
Th e RLC was consulted al its Sep temb er 2008 meeting and th ey re commended filin g th e N o ti ce of
In tent 10 Redee m wilh th e Public Trusiee 's Office. Th at no ti ce wa s filed February 5, 2009. As the
o nly junior li en ho lder to fil e 1h e N o ti ce of Intent to Redeem, lhe City o f Englewood was no tified o n
Febru ary 12, 2009 by th e Public Trust ee's Office o f th e exact amount n ee ded to redee m th e
property o n February 18, 2009. A w ire transfer fr o m lhe H o using Rehabi litati o n Fund 46 was sen l
o n February 18, 2009 to lhe Publi c Trust ee 's Office. A letter requesting that a Public Trust ee's
Deed b e iss ued in the name o f th e City of Engle wood-H o using Rehabi litati o n Fund was hand-
d eli vered o n th e sa me dale. •
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Staff has ,r,ade an ini ti al in specti on of the property. Th e property w ,11 be rented until a pending
laws uit is se ttl ed. After settlem en t of th e lawsuit, th e p roperty w ill be sold to a pri va te own er-
occupied party w ho has sec ured thei r own perman ent finan c in g. The proceeds fr om th e rent and
subse qu ent sa le of the property will b e re turn ed to th e Housing Rehabi litation Fund 46 . If an offer
to pu rchase the property is received from an y Ci ty of En glewood empl oyee, th eir fami ly members,
or an y busin ess in w hi r h a City employee has a fin ancia l interes t, th en staff will submit th e offer 10
the City Council fo r approva l.
FINANCIAL IMPACT
Fund 46 ~overed th e cos t of th e rede mpti on of $165,026.36. Th e cos t of any additional rehab of
th e property is unkn own at this tim e, but w ill also be covered b y Fund 46. All proceeds from th e
sale of 290 Eas t Bellewood Drive wi ll be reimbursed to Fund 46 . There are no oth er fi nancial
impacts to th e City.
LIST OF ATTACHMENTS
Noti ce of Intention to Redeem and Affidavit of Am ount Owed
Letter requesting Publi c Trustee's Deed in nam e of City of Englewood-Housing Rehabi litation Fund
Bill for an Ordinance
NOTICt OF L'ITENT ION TO RE DE EM AND AFFIIJA l'rr OF A~I O U 'T O\\'ED
I
TO 11-tE PUDLlC TRUSTE E OF ifHE Co unt )' of Ar npahoc, Stat e of Co lorodo
Informnti on Regarding Publi c Trus1cc's Forecl os ure Salr :
PuLlic Trustee's Sale Number
Dale of Sale
Last Day of Owner's Redemption Period
Date of Deed of Trust
Granter of Deed of Trust
Original Bcncficinry of Deed of Trust
Reference Nos. of Recorded Deed of Trust
Information Rcgnrding Right to Redeem :
0413 -200 8
February 4, 2009
February J, 2009
April I 5, 2005
Elora E. Marley
lmpcrial Lending LLC
B5064567
RECEIVED
FEB 05 2009
ARAPAHOE COUNTY
PUBUCTRU!ITfl!
Name of Redemptioner
Address Md Phone No . of Redempti oner
City of Englewood-Housing Rehabilitation Fund
1000 Englewood Pkwy, Euglcwood, CO 80110
303 .762 .2349
Lien or Encumbrance Entitling the
Undersigned to Redeem
Date of Record ing Lien or Encumbrance
County of Recording
Reference Nos. of Recorded Lien
Deed of Trust
F<~ 5 ·, 2004
Arupahoe
t,qo,,IJI
You arc hereby notified tbnt the undersign ed intends to redeem the property sold by you at the public
Trustee's Sale described above. The undersigned is entitled 10 red eem ns the ow ner of the lien or
encumbrance dcscibed above.
You nre further notified thnt t!:e amount owed on the lien or encumbran ce evidenced by the attached
instrumcnl(s) is ns fo ll ows:
Principal
Administrative Fees (inc. late charges)
Lcgnl Fees
Interest to End of Owner's Redemp tion Period
Total
$52,088 .71
395 .00
500 .00
2,316.43
$55 ,300.14
Per Diem Interest After End of Owner's Redempti on Peri od : $3 .78
I certify thnt the above amounts are correct to th e best of my knowledge.
City of Englewood -Housi ng RchabiliLntion Fu nd
Jr& /J)J;t ,
by: Alnn White, Director
Date : Februar y S, 2009
day of Feb ru ary , 2009 , in the County
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C T y 0 F E N G L E w 0 0 D
C 0 M M U N I T y D E V E L O P M E N T
Feb ru ary 18, 2009
Arapahoe Co unty Pub lic Trus tee
2329 W. Ma in St, Suite 100
Littleton, CO 80 120
(ha nd delive red )
To Whom It ~~ay Co nc ern :
As a res ult of redee ming the Public Trustee's For ecl os ur e Sa le No. 04 13-2008, please iss ue a
Pub li c Trustee's Dee d to:
Ci ty of Eng lewo.:id -Housing Rehab ilit ation Fund
1000 En glewood Par kwa y
Eng lewood, CO 80110-2 373
Enclos ed i, $39 .00 to cover the cos t of iss uing the Deed fo r the proper ty loca ted at 290 Eas t
Be ll ewood Drive, Englewood, CO 80113 . Please let me know if you ,ave an y que sti ons.
Si ncere ly,
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I-lousing Finan ce Specia l st
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