4.5 HRSR 05-04-2015City of
Elk
River
Request for Action
To
Item Number
Housing and Redevelopment Authority
4.5
Agenda Section
Meeting Date
Prepared by
Consent A enda
May 4, 2015
Amanda Othoudt, EDD
Item Description
Reviewed by
Neighborhood Stabilization Program Satisfaction of
Cal Portner, City Administrator
Repayment Agreement.
Reviewed by
Action Requested
Approve, by motion, the satisfaction of repayment agreement for real property located at 10827 1815`
Lane Northwest.
Background /Discussion
In February 2009, the HRA was awarded $593,820 in foreclosure recovery funds through the Minnesota
Housing Finance Agency (MHFA) for the Neighborhood Stabilization Program (NSP).
The NSP funding award was approved for the following neighborhoods; Windsor Oaks, Trout Brook,
Park Pointe, and Elk River Station. The grant money was utilized for down payment assistance, purchase,
and rehabilitation of abandoned/ foreclosed homes.
The assistance provided to the homeowner through the NSP was considered a "special mortgage"
although there are no monthly payments due or accrued interest. If the real property is owned for five
years, the city agrees to forgive the full amount of the loan and issue the owner a written notice of
satisfaction terminating the lien created by the agreement.
The property owners received $14,999 in funding through MHFA for NSP down payment assistance on
February 26, 2010, with a forgiveness date of February 26, 2015. They have since entered into purchase
agreement with a buyer and are anticipating closing on the property May 21, 2015.
Financial Impact
N/A
Attachments
• Repayment Agreement
• Satisfaction of Mortgage
P a w E n E o A Y
INIA UREJ
Office of the County Recorder
Sherburne County, MN
Doc. No. 71142 ►
Certified filed andlor recorded on
04 -19 -2010 at 03:00
Ile Ashe, County Recorder
Deputy Fee: $ 46.0(7
711426
CITY OF ELK RIVER NEIGHBORHOOD STABILIZATION PROGRAM
REPAYMENT AGREEMENT
THIS AGREEMENT ( "Agreement") is made and entered into this 26th day of February,
2010 by and between Justin A. Lenius and Katie E. Lenius, husband and wife (hereinafter
referred to as "Owner "), and the City of Elk River, having its principal office at 13055 Orono
Parkway, Elk River, MN 55330, (hereinafter referred to as the "City ").
RECITALS:
A. City is a party to a "Grant Agreement" with the Minnesota Housing Finance
Agency pursuant to which City can make certain funds available to homeowners.
B. In accordance with the Grant Agreement, City is granting to Owner, a deferred
payment loan (hereinafter referred as "Loan ") relating to the real estate hereinafter described, to
be used for the purpose of down payment assistance, in the amount of Fourteen thousand nine
hundred ninety -nine dollars and no/100---- ($14,999.00) (the "Loan Amount ").
C. As a condition to making the Loan to Owner, City is requiring that Owner enter
into this Agreement.
NOW, THEREFORE; in consideration of the Recitals, the Loan, the covenants contained
herein and other good and valuable consideration, the parties do hereby agree as follows: -
1. Owner hereby acknowledges receipt of the Loan, and agrees to the terms of
repayment provided in this Agreement.
2. City agrees to forgive the full amount of the Loan if (i) the Real Property (as
hereinafter defined) does not cease to be Owner's principal residence, and (ii) Owner does not
sell, transfer or otherwise convey the Real Property, whether voluntarily or involuntarily
(including by virtue of death), on or before February 26, 2015 (the "Forgiveness Date "). In
the event that Owner satisfies the terms for forgiveness of the Loan as provided in this
paragraph (the "Loan Forgiveness Requirements "), City will issue to Owner a written
satisfaction terminating the lien created by this Agreement.
Return to:
Preferred Title, Inc.
P.O. Box 727
113 west Broadway
Monticeil i Minnesota 5W82
File #
3. If Owner fails to meet the Loan Forgiveness Requirements, Owner covenants and
agrees with City to repay the Loan in the amount determined as follows:
a. If the failure to meet the Loan Forgiveness Requirements occurs within one (1)
year after the date of the Loan, Owner shall repay the full Loan Amount to City.
b. If the failure to meet the Loan Forgiveness Requirements occurs after the first
year, but before the Forgiveness Date, Owner shall repay an amount determined
by deducting 20% from the Loan Amount for each full year elapsed since the date
of the Loan. The amounts so deducted shall be deemed forgiven.
C. In the case of Owner's sale of the Real Property before the Forgiveness Date, the
amount of repaymenrt required under this Agreement shall not exceed the "Net
Proceeds" of such sale. For purposes hereof, "Net Proceeds" shall mean the sales
price of the Real Property minus (i) loan repayment (other than the Loan described
in this Agreement), and (ii) closing costs.
Any repayment required under this paragraph shall be made to City no later than thirty (30) days
following the failure to meet the Loan Forgiveness Requirements, or on such later date or dates
as the City, in its sole discretion, may designate.
4. As security for owner's obligation of repayment, and subject to the terms and
conditions of this Agreement, Owner by this Agreement hereby grants to City a lien on the real
estate hereinafter described (the "Real Estate ") in the Loan Amount (as the same may have been
reduced in accordance with this Agreement) plus all amounts of the collection of same including
reasonable attorneys' fees, court costs, etc. The Real Estate is situated in the City of Elk River,
Sherburne County, Minnesota, and is legally described as:
Unit 74, Trout Brook Condominium, CIC No 12, Sherburne County, Minnesota
5. Promptly after any event that causes Owner to fail to meet the Loan Forgiveness
Requirements (or, in the event of a sale by contract or deed, at least ten (10) days prior to the date
of such sale), Owner or his/her heirs, executors, or representatives, shall give City notice thereof.
6. Ire the event Owner or his/her heirs, executors or representatives shall fail or
refuse to make a required repayment within the time required by this Agreement, City may
foreclose the lien granted by this Agreement in the Real Property in the manner provided by law.
7. This agreement shall run with the Real Estate and shall inure to the benefit of and
be binding upon the parties hereto and their respective heirs, executors, representatives,
successors, and assigns.
In testimony whereof, the parties have executed this agreement as of the day and year first written
above.
Owner (s)
stin A nius Katie E. Lenius
State of Minnesota
County of Sherburne
On this 26 day of February 2010 before me, a notary public mdthin and for the said
county, personally appeared Justin A. Lenius and Katie E. Lenius, husband and wife, to me
known to be the person(s) described in and who executed the foregoing instrument and
acknowledging that they executed the same as their free act and deed.
All
Na public
State of Nlinnesota
County of Sherburne
MMARY ANN MCC30WAN
NorMy PueL'C.M# r A
��'r CcMm Exp. ,fan. g7, 2013
On this 26 day of February , 2010_, before me, a notary public within and for the said
county, personally appeared. Justin A. Lenius and Katie E. Lenius, husband and wife
to me known to be the person(s) described in and who executed the foregoing instrument and
acknowledging that _he executed the same as — free act and debd.
Notary public
Tax statements for the real property described in this instrument should be sent to:
Justin A. and Katie E. Lenius
10827 181' Lane NW
Elk River MN 5 533 0
THIS INSTRUMENT WAS DRAFTED BY
Gray Plant Moody
Aun. Wade Anderson, Attorney
540 IDS Center, 80 south Eighth Street
Minneapolis MN 55402 -3796
RETURN TO:
Tri- County Action Program, Inc.
P 0 Dox 683
Waite Park, MN 56387 -0693
This instrument is exempt from registration tax. under Section 287.06 of Minnesota Statutes.
GP2605 147 v3
SATISFACTION OF REPAYMENT AGREEMENT
DATE:
THAT CERTAIN GRANT AGREEMENT owned by the undersigned, dated the 26th day of February,
2010, executed by Justin A. Lenius and Katie E. Lenius, husband and wife, as Mortgagor, to City of Elk
River, as Mortgagee and filed for record the 19th day of April, 2010, as Document Number 711426, in the
Office of the County Recorder of Sherburne County, Minnesota, is, with the indebtedness thereby secured,
fully paid and satisfied.
City of Elk River
By:
Its:
STATE OF MINNESOTA )
) ss
COUNTY OF
The foregoing instrument was acknowledged before me this
By, , the
Elk River.
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK)
Notary Public
day of , 20
of the City of
THIS INSTRUMENT WAS DRAFTED BY TAX STATEMENTS FOR THE REAL PROPERTY DESCRIBED
Sherburne County Abstract & Title IN THIS INSTRUMENT SHOULD BE SENT TO
351 Main Street
Elk River, NIN 55330
File No. 1542195 Unaffected
Office of the County Recorder
Sherburne County, MN
Doc. No. 71142 ►
Certified filed andlor recorded on
04 -19 -2010 at 03:00
Ile Ashe, County Recorder
Deputy Fee: $ 46.0(7
711426
CITY OF ELK RIVER NEIGHBORHOOD STABILIZATION PROGRAM
REPAYMENT AGREEMENT
THIS AGREEMENT ( "Agreement") is made and entered into this 26th day of February,
2010 by and between Justin A. Lenius and Katie E. Lenius, husband and wife (hereinafter
referred to as "Owner "), and the City of Elk River, having its principal office at 13055 Orono
Parkway, Elk River, MN 55330, (hereinafter referred to as the "City ").
RECITALS:
A. City is a party to a "Grant Agreement" with the Minnesota Housing Finance
Agency pursuant to which City can make certain funds available to homeowners.
B. In accordance with the Grant Agreement, City is granting to Owner, a deferred
payment loan (hereinafter referred as "Loan ") relating to the real estate hereinafter described, to
be used for the purpose of down payment assistance, in the amount of Fourteen thousand nine
hundred ninety -nine dollars and no/100---- ($14,999.00) (the "Loan Amount ").
C. As a condition to making the Loan to Owner, City is requiring that Owner enter
into this Agreement.
NOW, THEREFORE; in consideration of the Recitals, the Loan, the covenants contained
herein and other good and valuable consideration, the parties do hereby agree as follows: -
1. Owner hereby acknowledges receipt of the Loan, and agrees to the terms of
repayment provided in this Agreement.
2. City agrees to forgive the full amount of the Loan if (i) the Real Property (as
hereinafter defined) does not cease to be Owner's principal residence, and (ii) Owner does not
sell, transfer or otherwise convey the Real Property, whether voluntarily or involuntarily
(including by virtue of death), on or before February 26, 2015 (the "Forgiveness Date "). In
the event that Owner satisfies the terms for forgiveness of the Loan as provided in this
paragraph (the "Loan Forgiveness Requirements "), City will issue to Owner a written
satisfaction terminating the lien created by this Agreement.
Return to:
Preferred Title, Inc.
P.O. Box 727
113 west Broadway
Monticeil i Minnesota 5W82
File #
3. If Owner fails to meet the Loan Forgiveness Requirements, Owner covenants and
agrees with City to repay the Loan in the amount determined as follows:
a. If the failure to meet the Loan Forgiveness Requirements occurs within one (1)
year after the date of the Loan, Owner shall repay the full Loan Amount to City.
b. If the failure to meet the Loan Forgiveness Requirements occurs after the first
year, but before the Forgiveness Date, Owner shall repay an amount determined
by deducting 20% from the Loan Amount for each full year elapsed since the date
of the Loan. The amounts so deducted shall be deemed forgiven.
C. In the case of Owner's sale of the Real Property before the Forgiveness Date, the
amount of repaymenrt required under this Agreement shall not exceed the "Net
Proceeds" of such sale. For purposes hereof, "Net Proceeds" shall mean the sales
price of the Real Property minus (i) loan repayment (other than the Loan described
in this Agreement), and (ii) closing costs.
Any repayment required under this paragraph shall be made to City no later than thirty (30) days
following the failure to meet the Loan Forgiveness Requirements, or on such later date or dates
as the City, in its sole discretion, may designate.
4. As security for owner's obligation of repayment, and subject to the terms and
conditions of this Agreement, Owner by this Agreement hereby grants to City a lien on the real
estate hereinafter described (the "Real Estate ") in the Loan Amount (as the same may have been
reduced in accordance with this Agreement) plus all amounts of the collection of same including
reasonable attorneys' fees, court costs, etc. The Real Estate is situated in the City of Elk River,
Sherburne County, Minnesota, and is legally described as:
Unit 74, Trout Brook Condominium, CIC No 12, Sherburne County, Minnesota
5. Promptly after any event that causes Owner to fail to meet the Loan Forgiveness
Requirements (or, in the event of a sale by contract or deed, at least ten (10) days prior to the date
of such sale), Owner or his/her heirs, executors, or representatives, shall give City notice thereof.
6. Ire the event Owner or his/her heirs, executors or representatives shall fail or
refuse to make a required repayment within the time required by this Agreement, City may
foreclose the lien granted by this Agreement in the Real Property in the manner provided by law.
7. This agreement shall run with the Real Estate and shall inure to the benefit of and
be binding upon the parties hereto and their respective heirs, executors, representatives,
successors, and assigns.
In testimony whereof, the parties have executed this agreement as of the day and year first written
above.
Owner (s)
stin A nius Katie E. Lenius
State of Minnesota
County of Sherburne
On this 26 day of February 2010 before me, a notary public mdthin and for the said
county, personally appeared Justin A. Lenius and Katie E. Lenius, husband and wife, to me
known to be the person(s) described in and who executed the foregoing instrument and
acknowledging that they executed the same as their free act and deed.
All
Na public
State of Nlinnesota
County of Sherburne
MMARY ANN MCC30WAN
NorMy PueL'C.M# r A
��'r CcMm Exp. ,fan. g7, 2013
On this 26 day of February , 2010_, before me, a notary public within and for the said
county, personally appeared. Justin A. Lenius and Katie E. Lenius, husband and wife
to me known to be the person(s) described in and who executed the foregoing instrument and
acknowledging that _he executed the same as — free act and debd.
Notary public
Tax statements for the real property described in this instrument should be sent to:
Justin A. and Katie E. Lenius
10827 181' Lane NW
Elk River MN 5 533 0
THIS INSTRUMENT WAS DRAFTED BY
Gray Plant Moody
Aun. Wade Anderson, Attorney
540 IDS Center, 80 south Eighth Street
Minneapolis MN 55402 -3796
RETURN TO:
Tri- County Action Program, Inc.
P 0 Dox 683
Waite Park, MN 56387 -0693
This instrument is exempt from registration tax. under Section 287.06 of Minnesota Statutes.
GP2605 147 v3
SATISFACTION OF REPAYMENT AGREEMENT
DATE
THAT CERTAIN GRANT AGREEMENT owned by the undersigned, dated the 26th day of February,
2010, executed by Justin A. Lenius and Katie E. Lenius, husband and wife, as Mortgagor, to City of Elk
River, as Mortgagee and filed for record the 19th day of April, 2010, as Document Number 711426, in the
Office of the County Recorder of Sherburne County, Minnesota, is, with the indebtedness thereby secured,
fully paid and satisfied.
City of Elk River
By:
Its:
STATE OF MINNESOTA )
ss
COUNTY OF )
The foregoing instrument was acknowledged before me this day of , 20
By,
Elk River.
NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK)
THIS INSTRUMENT WAS DRAFTED BY:
Sherburne County Abstract & Title
351 Main Street
Elk River, MN 55330
File No. 1542195
the
Notary Public
of the City of
TAX STATEMENTS FOR THE REAL PROPERTY DESCRIBED
IN THIS INSTRUMENT SHOULD BE SENT TO:
Unaffected