HomeMy WebLinkAbout2005 Ordinance No. 042•
•
•
ORD INANCE NO .~
SERIE S OF 2005
BY AUTHORITY
COUNC IL BILL NO . 40
INTR ODUCED BY CO NC IL
MEM BER BRADSHAW
AN ORD INANCE AUTHORIZING THE REDEMPTION AND SALE OF A HOUSING
REHABILITATION PROPERTY LOCATED AT 41 65 SOUTH WASHINGTON
STREET IN THE CITY OF ENGLEWOOD , CO LORADO .
WHEREAS , the Cit y Council of th e City or Englewood accepted assig nment from
the Englewood Housing Authority of all rights , asse ts and liabilitie s associated with th e
Housing Rehabilitation Loan Program by the passage of Ordinance No . 23 , Seri es 1999;
and
WHEREAS , Eng lewood City Co un ci l authorized amending Title , 4, Chapter 3, with
the addi tion of a new Section 13 entitled "Hou sing Reh ab ilitati on Fund" by the pa ss age
of Ordin ance No. 26 , Seri es 1999 ; and
WHEREAS , the Englewood Housing Rehabilitation Program was created in 1976 to
prese rve the existing housing stock in Englewood and to add re ss the problem s of low-
income families with the financing of major house hold repairs; and
WHEREAS , th e Rehab Program approve s home improvement loans that arc se cured
by deeds of trust record ed on the property representing genera ll y second or third
mortgage s; and
WHEREAS , occasionally homeow ners default on their loans and th e lien holder
initiates the foreclosure process by filing the required doc ument s with the Public
Truste e·s Office ; and
WHEREAS , the property loca ted at ~ 65 Sou th Was hington Street ha s a
Rehabilitation Loan with the City holdin g a JCcond mortgage: and
WH EREAS, thi s p;o pcrty we nt I publi c sa le on Ma y 25, 2005, and the propert y
was sold back to the fir sl mort gagee ,.,,ho initiated ihc fo re clos ure; and
WHEREAS , the Engl ewoo d Rehab Loan Committee was co nsulted at their June
2005 mee ting and th ey re co mmend ed fi li ng th e Intent to Red ee m Notice with the
publi c Tru stee 's Office ; and
WHEREAS , th e homeowner fai led to rede em the propert y, wi thin thei r 75-day
redempti on period; and
WHEREAS . the City (t he sec ond mortgagee) was notified on August 9, 2005 o f th e
amount needed to rede em th e prop ert y no lat er th an August 18, 2005; and
WHER EAS , the Cit y red eemed the property on August I 8, 2005 and reque sted that
th e deed be iss ued to the Cit y of Englewood Housing Rehab ilitati on Fund ; and
-1-
9 bi
WHEREAS , the redeemed propeny located at 4165 Sout h Washington Street will be
sold 10 a private owner-oc cupi ed pony who has secured hi s own financing and th e Ci ty
funds used 10 purchase the propcny will be retu rn ed to the Hou sing Reh abi litat io n Fund
when this propcny is sold and th e new ow ner's loa n is close d; and
WHEREAS, if an offe r to purchase is rec eiv ed from any City employee , th ei r
fa mil y memb ers , or any bu si ne ss in whic h a City employee has a financial in terest , the
offe r will be submitted to the Englewood Ci ty Cou ncil for approval ;
NOW , THEREFORE , BE IT ORDAINED BY THE CITY COUNC IL OF THE CITY
OF ENGLEWOOD , COLORADO , AS FOLLOWS :
~. Th e City Coun cil of the Ci ty of Englew ood hereby authorizes the
red emption and subsequent sal e of a Housin g Reh abilitation Prop eny acquired th rough
the foreclo sure pro cess located at 4 165 South Washington Stree t.
~-The Mayor and the City Clerk are au thorized to execute the proper form
of deed for the conveyance of the propeny located at 4165 South Washington Street ,
Eng lewood, Colorado pursuant to Sec tion 71 of the Englewood City Cha ner .
Introduced , read in full , and passed on first reading on the 6th day of September, 20 05 .
Publi shed as a Bill for an Ordinance on the 9th day of September, 2005.
Read by title an d passed on final re ading on the 19th day of September, 2005 .
Publi she d by title as Ordi nance No . 42., Sencs of 20 05 , the 23 rd day of
September, 20 05 .
Garrett , Mayor
~llftt
Loucnshia A Ellis , City Clerk
I, Loucri shia A. Elli s, City Clerk of the Ci ty of Englewood, Co lorado, hereby
cenify that th e above and foregoing is a true cop,Y-Of the Ordina c passed on final
readi ng and published by titl e as Ordinance No. 'ib Series' of 05.
~~~
-2-
•
•
•
•
•
•
COUNCIL COMMUNICATION
Date: Agenda Item: Subject :
Sep tember 6 , 2005 11 a i Redemp ti on and Sa le of Property acq uired
through the Housin g Rehabilita ti on Fund
Initiated By: I Staff Source:
Community Deve lopmen t D epartm en t Janet G rimmell, H ousing Finance Specialist
COUNCIL GOAL AND PREVIOUS COUNC IL ACT IO N
Coun cil passed O rdin an ce No. 23, Series 1 S99 accepting assignment from the En glewood H ousing
Aut hority of a ll rig hts, assets an d liabiliti es associated with th e H o using Reha bilitati on l oa n Prog ram
and also passed Ordinance No. 26, Se ries, 1999 am ending Title 4, Chapter 3, by th e addi ti on of a
new Section 1 3 enti tl ed "H ous i ng Rehabilitati on Fund ".
In January, Fe bru ary and Jul y 2005, Coun cil passed three sepa rat e ordin ances app rovi ng
re demption and sa le of three o th er propert ies acq uired th ro ugh th e fo reclosure p rocess.
RECOMMENDED ACTION
Community D eve lopmen t staff recommends Cou ncil adopt a Bill fo r an Ordinance approving the
redemp ti o n and subse quent sa le of 4 165 So uth Washin gto n Str ee t (a single fa mily home) acquired
through the foreclos ure process as defi ned by Colorado State statutes.
BACKG ROUND , ANA LYSIS, AND ALTERNATIVES IDENTIFIED
Th e H ousi n g Rehabilitation Progra m was crea ted in 1976 by th e City of Engl ewood l o preserve the
exis tin g housing stock in Englewood, and to al so addres,; th e problems th at homeowners
ex peri ence w ith the financing of maj or househo ld improvements . The City Allo rn ey req uired that
the ne w Housing Rehab Prog ram not be admini stered direc tl y b y th e City to avo id any con fli cts
w ith a State Stat ute th at prohibited any municipal governm ent fr c .. 1 m akin g loans to its citizens. It
was de ci ded t o use th e Englewood H o using Auth o rity (E HA) as th e conduit to ma nage and operate
th e Pr og ram .
The lega l au thori ty to o p era te an d manage the Rehab Pro gram was assigned to th e Ci ty in 1999
th roug h an agreenv .,, •vi th th e EHA. II was de termined at that t ime th at th e Program and City staff
sh ould be under ti eel manage m ent oi the Co m m unity Development Direc tor. In ord er to
avoid any conflict wuh Colorado State Stat utes, an en terprise fund was c reated un de r TABOR
reg ul ations known as th e H ous in g Rehabilitati on Fll nd (Fllnd). The Rehab Program retai ned its own
funding sources des igna ted as Fund 45 and Fund 46 th at are used to support th e operatio ns of the
Program .
One oi the fu ncti ons oi th e Fund is to redeem prope rti es tha t h;we gone throug h th e fore cl os ur e •
process. Th e Housin g Rehab ilit ati on Loa n Program approv es ho me improveme nt loans that are
sec ured by deeds oi tru st. ge neral!\ as seco nd or third mort gages (junior liens ). Th e procedu res of
th e Pro gram require staff to have all iorcclosures rev iewed by th e Rehab Loa n Com mitt ee (RLC)
aite r th e prop erty ha s been so ld al a publi c sa le. Th e RLC co nsists oi 3 members, cu rr entl y: I )
Jea nn ett e Esp inoz a, Engl ewood Bra nc h Ma nagP.r, Vec tra Bank;::!) Jenn ifer Nola n, Acco un tan t, Ci ty
oi Englewoo d Acco untin g D epart:11ent; and 3) Beat ri ce Lan e, low-inco me homeow ner and
Eng lewood resident.
The for eclos ur e process is th e prim ary trJo l fo r lende rs to use to insure repa ymen t of th ei r loans.
W hen a h omeowner defau lts, th e lie n hc,!der is ab le to i nitiate the forecl os ur e process to coll ec t th e
monies th at are owed to th em . Th is proces s is Sl art ed by fil in g the requ ired lega l doc um ents with
th e Publi c Tru stee's O ffi ce. This fili ng tri ggers a,, hole sec,u ence of eve nts that is dicta ted by Stat e
Sta tutes. Th e Publi c Trustee w ,11 se t a Pu b lic Sa le date fu r th e prop erty and publi sh this in fo rm ati o n
in a newspaper of ge neral circulation fo r a min imum ni fc-Jr wee ks. Eac h recor ded li en holder
receives a c opy of that ad ve rti se m en t as well as a Pub li c Tru stee 's N oti ce of Ri ghts to Cure or
Redee m. Eac h j uni or li en ho lder must t11 e a Noti ce of In te nti on to Re deem wi thin 60 da ys of the
Pub li c Sa le date if th ey are interes ted in redee m ing the property to coll ec t th ei r own indebtedness .
If th e Intentio n to Rede em is n o t fil ed, th en the li en h old er loses th eir rights und er the deed of trus t
provisi ons and th e property is no longe r coll ateral fo r th eir loa n.
The homeown er can cure the default any time from the initial no tifi ca tion th rough th e 75-day
pe ri od fo ll owing th e Public Sa le. Thi s tim e fram e rep rese nts approxi mately a four-month tim e
per iod. If th e homeown er redee ms the property, th en th e foreclos ure process is ended and th ere is
nothing th e juni or li en holder is req uir ed to do. All li ens remain in full effec t. If th e homeowner •
does n ot redeem w ithin th e 75-day tim e pe ri od, th e first junior li en hold er has 10 days from th at
da te to ac t on th eir Intention to Redeem and to pa y th e Publ ic Trus tee 's Office the total redem pti o n
amount in ce rti fied funds. Ea c h subs equent juni or li en hold er th en has 5 da ys in whi ch to redee m .
This m ea ns th at a junior lie n holder w,11 not kn ow if th ey n eed to ac t o n th eir In tenti on to Redee m
until th e ho meowners rede mption pe ri od has exp ired an d th en only w hen no tifi ed by th e Pu bli c
Trus tee as to th e amount necessary to redee m the property.
Given th e ve r y sho rt tim e fr am es o i the juni or li en ho lde r redemptio n p eri od, p roperti es rede em ed
thro ugh the H ousin g Rehab Program are always bro ugh t to th e Counc il after th e fact fo r ordin an ce
approva l. Sec tion 72 of th e H o m e Rul e Chart er re quires that real p rop erty ma y be so ld, b ut on ly b y
ordin ance, no t usin g th e emerge ncy prov isi on. Eac h prope rty is broug ht befo re Coun cil as ea rl y in
th e process as poss ible so tha t marketi ng efforts can b egi n. Thi s proces s will ex ped ite th e
sub se qu ent sa le and clos ing of th e property.
The fo reclos ure noti fica ti on for 41 65 So uth Wa sh in gton Str ee t -..vas rec eive d in ea rly Apr il 2005.
The Pub li c Sa le was se t fo r May 25 , 1005. The property was so ld ba ck to the fi rst mortgagee w ho
ha d initi ated th e foreclos ur e. The RLC was co nsult ed ~,t th eir Jun e 1005 mee ting and they
reco mm end e d fil in g th e Int en ti on to Redee m notice wi th th e Publi c Tru stee's Office. That notice
was fil ed Jun e 23. Th e homeow ner's fina l redemp ti on da te was Aug ust 8, :m os. As the seco nd
mortga gee, th e Ci ty o f Engle wood was notifi ed on August 9 by th e Pub li c Trust ee's Office oi th e
exac t amou nt nee ded to redee m the prope rty no later th an August 18, 2005. A w ire transfe r fr om
Co lonia l Bank was se nt on August 18, 2005 to the Public Trus tee's Office. A lett er was hand
del ivere d Augus t 19, 2005 req uesting th at a Pub lic Tru stee's dee d be iss ued in th e nam e of th e Ci ty •
oi Eng lewoo d-Housi ng Reha bi litJ.ti on Fund .
•
•
•
The redeeme d property wi ll be sold to a priva te owner-occupi-o .,arty who has sec ured the ir own
finan cing. The funds that were use d 10 red ee m th e property will be re turned 10 th e H ousi ng
Rehabil ita tion Fund 46 w hen th e property is so ld . If an offer to purcha se the property is re ce ive d
from any City of Engl ewood employee, their family m embers , o r any busin ess "' w hich a City
employee has a fin ancia l in Ieres I, then staff wi ll submit th e offer to the City Co un cil for ap proval.
FINANCIAL IMPACT
Fund 46 w ill cover all costs of the redemption and th e su bseq uen t sa le of 4165 So uth Was hington
Street. There are no other fi nancial impacts to the City.
LIST OF ATTACHMENTS
Notice of Intention to Rede em and Affidavit of Amount Owed
Letter req ues t ing deed for 4165 Sou th Was hington Stre et
Bill for an O rd inance
•
•
•
NOTICE OF INTENTION TO ltEUEEM AND Al•l'IUAVIT OF AMOUNT OWED
TO TI IE rUDLICTRUSTimOFTi ll1
______ C11un1y ur -A:.J:ijlllllJlA.-___ • S1a1 c nrCulnrnllo,
lnfo1mn1iun Rc1 11nlin1 Puhlic iru,1ec's F111cchmnc S11 lc :
0910-2005 l'nhl1c Tms1ec 's S11ic Numhcr
7111y D11lc11I Snlc
Auuuat B. 200 l.11 \1 Uuy nr Owner '& Rctlcmplinn l'criod
Auguat 2), 2ono,r-----------1>111c11l'IJcC'tl 11fTmJt
John £awn rd McC o r mi c k Ci r:mlnr nr l>tttl 11(TruJI
~rc g11ae lnc. ___ tlrii,:innl Ucndidaryur lltttlnfTnH1
UT07 l.00 -___ lti:lc1cncc Nn:1 . n ( RccunlcJ Deed ur Tru11 ·-~
:~;-1..J1u~tlun Rc1artlln1 Right to llt\kcr11 .
-~1· ~nt1lcvood-llo u1Jng Re hn bl 11 tnt i o n Fund Nnme n( Rc tlcmp1loncr
I IOU'' Er glcwood Pkwy, t ns lew ood, t:O 80 11 0 Adtlnm ul\ll Phone No. or RcUCmph oner
~~~/:?~~~;"":'"-:-, ---------___ U .. n '"" Em:11mhr11occ E.nH1lin1 the
-h br,
0
••,,:••,,L~e.l:J~~-~z_o~_o~z:-:..=:-:..=:-:..=:~=:~=:-...=:-_=:-:..=_--:._=:-:..=_ ~~~~,~w~:~:;::•Enwmtnnce l i ii;-..:l10u C11un1ynf K«01dlng
_________ ..c•:.:20:.:2c.:c?"'54:.:2 _____ Rd crcncc Nos . ufR«nrJct.l Lien ,........ . ......... ,..
Ynu are hcrehy no1ir, .. ,1111111 the 11mkr~l11ncd int cml.~ In mkcm the 1Mnpc11y i111hl hy y1~1 nl 1he l'nhl ic Tm~ltt's
Sole tJescrit-.ttl .i .. ,vc, 1l1t. .. ntkuli;nr.l i1 cntitk,I h11c1lct111 1~ 1hc nwucr nf1hc lien 1.-c11t."Umh11 ana: UCSCri hcJ 11h11¥c,
Yuu 11rc fur1lter n111ine1I 11 1111 lhc nnM111111 i1 nwcd ,111 lhc li en •M' ~n1.,1111hn111cc cvhlt:111.'ffl hy lhc au11c hctJ ln~1nimcnl(1)
m:u rolluwa :
~tZ~'~•~"~•~-3~0 ____ Principn t
_..,•~•"'''"-'-'-'' Uc,> ____ ln1t1 c.,t tn l:ml 11r Owncr'i lk1lcmp1i11n l'crloJ
-"s2..,6c..,2,6Ju.Z~,JuS ____ 1i1111
-"""'-.,_ _____ ~" Diem lnt crcs l Arter E.ntl or 01\ncr·~ RcUC111rtinn Pcd:,J
I ccr11 fy that the uhl •¥C :imount, ore cnm~cl 111 the hc ~I nf my lmowktli;t .
J une 22, 2005 ... City o [ Englewood .-Housing
Rehob lllt:alon Fund
111b :iffi,1ovlt is i1uh.,cribctl and sworn 111 hcforc me lhi !I ~ 1l11y ur __ J_""_• ___ 211~ in
lhc ______ Cou nty ur Arno nhoe S11,1 c or C 11l1111nln.
\.lltneas my h nnd a nti sent.
Hy Co111111i&BJon exp ire s Se pt. 22 , 2005
., ,:
,, ),-··
)~~.r .,i''-1·,': ~
I I ,· ~ ,; \>;;; ,'-'li11\.r • .. -~~:·_.
• .. ',;:-.; i ·,::!\ :,. ~-.. ,•
t . • • • "' • -~·
·AMtdl • 11\W ...tcunn.. "'"-' ''-fffl ............... flt -1 ... , 1111, .. _,,..., 1hr liH ...... u .. 1r,,n ,t1,r.:111di111•fflu.i hf•ln~ •Ml
'l'Wn"''•omi:t
Ne.ffl .... 9. l ,IJ, NOYK"1:nrlH1f.Hf111Nl811f.UU:a l Al'tll Alf'lll4Yl r l .t'Arnmrtr111n.11
1,....,...~ 1u1w.,n .'ll .1...,.n,n 1••~•l-tnl ."fl,!\111 ••• ,..,.1,,.ii,,.~,--1.n.
C T y 0 F
COMMUNITY
August 19, 2005
A rapahoe County Public Trustee
2329 W. Main St, Suite 100
Littl eton , CO 80 120
To Whom It M ay Concern:
,~
ENGLEWOOD
DEVELOPME N T
A s a result of redeeming th e Public Trust ee's For eclosure Sa le N o . 09 18-2005 , pl ease iss ue a
Publi c Truste e's De ed to:
City of En glewood -Housing Rehabi lita ti on Fund
1000 Eng lewood Parkway
Englewood, CO 80110-237 3
Enclos ed is $36.00 to cove r the cos t of is suing th e Deed fo r the prop erty located at 4165 S.
Was hington St reet, Eng lewood, CO 80 1 13 . Pl ease let me kn ow if yo u have an y questions.
Sin ce rely, 9 .... ct:., l l~,1/IA,~\,\.1\u,tt
Janet M. Grimmett TT
Housin g Fin anc e Specialist
Enclos ur e
H JC14JOO•El\'!!1 MIIOO'tl i"""k"-a'1"'' 'lllgleweod; ~ModG A•wn4Jn fo,f!t,lf)l,I E•-6M3"2?• ,<M)tcJ OJ.78),6895
www .englewoodgo v,ora
•
•
•