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Home My WebLink About2001 Ordinance No. 014• • ORDIN CE NO . i SERIES OF 2001 BY AUTHORITY COUNCIL BILL SO. 15 INTRODUCED BY COU CIL tEMBER BRADSHAW ORDI ANCE AUTHORIZING 't'H.E REDEMPTIO AND SALE OF A ROUSING REHABILITATIO PROPERTY LOCATED AT 4630 SOU'I'H GRANT STREET IN THE CITY OF E GLEWOOD , COLORADO. WHEREAS, the City Council of the City of Englewood accepted aasignm nt from the Englewood Housing Authority of all rights, assets and li Pbilitie aS&Ociated with the Housing Rehabilitation Loan Program by the passage Ordin:uice No . 23 , Series' 1999; and WHEREAS , Englewood City Council autboru.ed ame nding Title , 4, Chapter 3, with the addition of a n.ew Section 13 entitled "Housing Rehabilitation Fund" by the passage of Ordinance No. 26, ries 1999; and WHEREAS , the Englewood HoUBlllC RehaMitation Program was aeaied in 1976 to preaerv the existing hoUJing stock in Englewood and to address the problem s of low - mcome families wi h the financing or major how;ebold repau'II; and WHEREAS , the Rehab Program approves home improvement loan.a that a~ured by deeds of trust recordetl on the property representing generally second or third mortgagee•; and WHEREAS , occaB1onally homeowners default on their loans and the lien holder i.nitiates the £orecl0Sure proce by filing the reqwred document.a with th Public Trustee'a Office : od WHEREAS, the property located at 4630 South Grant has a Re habilitation Loan with the City holding a third mortgage ; and WHEREAS . this property went to public sale on Oean:r "er 6, 2000 , and the property waa aold back to the first mort(a who .niti t.. ., i.,;ecloelll'f': and WHEREAS. the Englewood hab Loan Colllllllttee r coo11ulted l thei:r January 2001 meeting BJld they recommended filing tht Intent to Redeem Nooce with t he public Truatee'a Office : and WHEREAS , the homeowner fiuled to redeem tile property, wi!i .in their 75-day Ndemption period: and WHEREAS. the City (th thud mortpg e} waa ootuied Late on Much 2 of the mount needed to rede m the property no later th n 1arch 7, 200 1; and WHEREtiS , the City rede med the property on 1arcb 7, 2001 and requ sted that the deed be wued to the City of Englewood Housing Rehabilitation Fund . nd -1- WHEREAS, the redeemed property located at 4630 South Grant will be sold to a private owner-occupied party wbo haa secured his own financing and the City funda used to purchaae the property ill be returned to the HoW1ing Reh.abilitation Fund wh.en this property is sold and the new o ners loan is closed; NO W, THEREFORF, BE IT ORDAINED BY THE CITY COU IL v 1'HE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: ~-The City Co uncil of the City of Engle wood hereby authorizes the redemption and 1ubsequent sale of a Housing Rehabilitation Property acquired th.rot.iib the foreclosure process loco.led at 4630 South Grant Street. ~-The Mayor and the City Clerk are uthorized to execute the proper form of deed for tb.e convey-ince of the property located at 4630 South Grant. Street, Eni,lewood. Colorado pureuant to Section 71 of the Engl.ewood City Ch rter. Introduced, rend in full, nnd passed on first reading on the 19th d y of March, 2001. Published aa a Bill .'or an Ordinance on the 23rd d y of March, 2001. Read by title and (las,red on final reading on the 2nd day of pril. 2001. Publish.ed by title as Ordinance o. ~ Series of 2001 , on the 6th day of April , 2001. I, Loucriehia A. Ellis , City Cl rk of the City of Englewood , Colorad o, hereby certify that the above and foregoing is a tru.e COPY. of the Ordinance p on 6naJ re ding a nd published by titlP as Ord.i ce o. /i.. Series of',2001. ~;tb~ :._ou ::nshia A. Elli& -2- • Date March 19, 2001 CO Cl l OMMU ICA11O l Age da Item 10 a Ii Subject: Redemption and Sale of Property acquire<' through the Housing Rehabilitation Fund I ITIATED BY : Community Development Dept. STAFF SOURCE: Janet Grimmett. Housing Financt> Sp ciahst COU Cll GOA NO PREVIOUS COUNCIL A("'.10 Council passed Ordinance o. 23, Series 1999 a1 pting assignment from the Englewood Housing uthority of all ri hts , assets and liabilities associatt::J with the Housing Rehabili tation Loan Program anri also passed Ordinance o. 26, Series, 1999 am nding Title 4, Chapter 3, by the addition of a new Section 13 entitled -Housing Rehabilitation Fund ". RECOMME . OED ACTION To pass 1n ordinance app1 oving the redemption and subsequer .: I of 4630 SoL .h Grant Street (a single famil y home) ac uired thr ough the foreclosure pi;,,eess . 8 CKGR 0 , A LYSIS , Al'IID ALTERNATIVES IOENTIFI D The Hou sing Rehabilita ti on Program was created in 1976 to preserve the e)(is ting housing stock in Englewood . and to address the problems of low-in ome families •vi th th e financinl! of major household repairs. The legal authority to ope,, te the P10gr.1m "as assigned to the City In 999 through an agreement berween the Ci of Englewood and th e Englewood Housing Authori . The Rehab Program approves home 1mpro\ men t loans that are secured by deeds of trU t recorded on the property representing general! second or third mort ges Uunior Ii ns). Occasionally homeovmers default on th ir loans . Whenever this happens, the lien holder ini tiates th e foreclosure process by ding the required documents with the Publi<: Trustee's O ce. This triggers the public notl ,cation in a newspaper o general circulation for iour eeks pno, o the date of the public sale. Each record d lien holder recei es a copv of that d ertisement ;is well as a Public Trustee's otice of Rights to Cure or Redeem . The Ii n holder must le a ouce of lnt'!nhon to Redeem within 75 da s of the Public Sale date I the ) are interested 1n red ming th~ propem, to c lect their indebtedness. The homeown r n cure the defaul an ume from the initial notice through 75 da ys lollowing th e public sale date . This may re present ppro , .,a teh our-mon th time p~rio d. l th e hom '"' ner redeems th pro e , then the foreclosure process 1, nded and ther is nothing else a 1unior lien holde r 1s re uired to do . All liens r main in full ttect. If th homeowner does not re.:hiem within the 5 da tim p n , th en the t1r t 1unior lien holder h 1 O da s trom that da te to act on their Intent to Redeem i ded , ith the Pubh..: Trus tee. E.:i h . ubsequt>nt 1umor lien hold r then has 5 days in which to redei!m . Tl11 me ns th.it a 1uni r lien holder will not I.no ",f th ~ ,u!ed to act on their Intent to Redeem until at least 75 days after the public sale date and th en o nly , hen noti 1ed by the Public Tru stee as to th e am ount necessary to purchase the property. Given th e very short time fram es of the junior lien holder red emp tion process , properties reha b bed thro ugh th e H o using Reh abilitation Fund w ill alway b brought to the Council after th e fa for ordinan ce ap proval. Section 72 of the Home Rule Charter requires that rea l property may be sold, but only by ordinJn ce, no t using the emergency provision Each property wi ll be brou gh t before Counci l as early in the proce ss a~ possible so tha t ma rket ing efforts can begin . This process w ill ex pedite the subsequen t sal e and closing of th e property. In the case of 4630 S. G ran t St. staff was aware th at the homeown er w as in cl fa ult of their first mortgage an d th at the own er was attempting to II the pr operty in orde r to cur the defaul t. Th e public sale was se t for December 6, 2000. The hom eow ner w as not able to sell the property by that date and the property was sold back to the firs t mortga gee who i niti ate d th e foreclosure . The Rehab Loa n Committee as co ns ult ed at their January mee ting and they recommended filing the Intent to Redeem notice wi th the Public Trustee 's Office. The homeowner continued to attempt to sell the property up until th eir final redem ptio n da te of Feb ruary 20, 200 I. When the homeowner fa il ed to redeem the property, the second mortgage e was notified o f their 1 O- da y redemption period from February 21 through March 2. The City of Englewood was notified late on March 2 o f the amount needed to 1edeem th e property no later than M arch 7, 2001 . A cashie r's check from the Housing Reha bil itation Fund was delivered March 7, 2001 to the Publi c Trustee alor,g with a letter req ue sting that a deed b e iss ued in the nam e of the City of Englewood-H u ing Rehabilitation Fun d. FINA CIAL IMPACT The rede emed property will b e sol d to a private owner-occupied party who has secu red his own fi nancing. The City funds that were used to purchase the property will be re turned to the Housing Re habil itation Fund when th at property Is so ld and the new loan is closed . UST OF ATTACHMENTS o tic e of Intention to Redeem and Affida it c,f Amount Owed Letter reques ting deed for 4630 South Grant Street • C T y 0 F COMM U I T Y DEVELOPM E N T M arch 5, 2001 Arapahoe County Public Trustee 23 29 W . Main St, Suite 100 Littleton, CO 80120 To Whom It May Concern : As a result of redeemi ng th e Publi c Trustee 's Foreclosure Sa le o. 613-2000, please issue a Puo lic Tru st ee 's Deed to: City of Engle wood . Housing Re ha bilitati on Fund 1000 Englewood Parkw ay Engle wood, CO 8011 0-23i3 En clos ed is S 15 .0 0 to co ve r the cost of issuing the Oeed for the property located at 4630 South Gran t Stre et, Englewood, CO 80 110. Please let me know if yo u have any ques tio ns. Sinc erel y, -7 l r /-~'--vt l U\__/)r• t 1.~\,~"'-1,_-:c:t:" f,ine t M. Grimmett H ousi ng Finan ce Spe cialist Encl os ur e 1000 Englewood Parkway Englewood. Colo ra do 80110 PHONE 303-:'6:-?H:: FAX 303-iSJ-6895 www.a.enprwood.co u, NOTI E OF I NTENTION TO REDElJII ANDA FlilllAVITOf." _.,MO UNT OWED mmE ruaUC TRUSTEEOFTIIE ______ County or __ /,IIJCC<DJ..IP"'•.11.ho<lJee_ ___ , Slalt Qf"CClkndo, lnf<Wmtt l'I Rea,rdia1 Pi.lbltC 1l'UJ1tt't, Forulc:t!iure Salt: -~l::.i:ll!llL ________________ Pub/I< TfUSl<••Salc N•mbor -PWCUC:iClll:11.11.heo,r'--'6L..._'-l200L111J.OL_ _____________ DIiie of Sak _f[.Jo.,bur.,.u.._ac'-'y,_.2..,'l~2.,00oul ______________ lalt Dar ol0w:Mr'1 R.c<lanpliaa. 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