7.1. HRSR 04-01-2019
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
Request for Action
To
Housing and Redevelopment Authority
Item Number
7.1
Agenda Section
General Business
Meeting Date
April 1, 2019
Prepared by
Amanda Othoudt, EDD
Item Description
Amended Mortgage and Repayment Agreement for
Kyle and Jennifer Torfin
Reviewed by
Cal Portner, City Administrator
Reviewed by
Action Requested
Approve, by motion, a resolution amending the Mortgage and Repayment Agreement for Kyle and
Jennifer Torfin
Background/Discussion
At their November, 6, 2017, meeting, the HRA approved a $21,640 housing rehabilitation loan under
CMHP’s administration secured by a Mortgage and Repayment agreement for Kyle and Jennifer Torfin
for improvements to their property.
Mr. Torfin has requested the HRA execute and deliver an amendment to the Mortgage and Assignment
and Assumption Agreement where Jennifer will assign her interest in the mortgage to Kyle. Mr. Torfin
has agreed to assume all obligations under the mortgage including the sole obligation to repay the loan.
The loan is current with no historically late payments.
Financial Impact
N/A
Attachments
Mortgage and Repayment Agreement (Document Number 856048)
Amended Mortgage and Repayment Agreement
Resolution
560346v1 JSB EL185-13
FIRST AMENDMENT TO MORTGAGE AND
ASSIGNMENT AND ASSUMPTION AGREEMENT
(ELK RIVER HRA OWNER-OCCUPIED HOUSING REHABILITATION PROGRAM)
THIS FIRST AMENDMENT TO MORTGAGE AND ASSIGNMENT AND
ASSUMPTION AGREEMENT is made as of April 1, 2019, between Kyle A. Torfin (the
“Assignee”), Jennifer R. Torfin (the “Assignor”) and the Housing and Redevelopment Authority
in and for the City of Elk River, Minnesota, as mortgagee (the “Mortgagee”).
RECITALS
A. The Assignee, together with the Assignor, for the benefit of Mortgagee, executed
and delivered that certain Mortgage and Repayment Agreement (Elk River HRA Owner-
Occupied Housing Rehabilitation Program), dated October 20, 2017, and filed on May 15, 2018,
2017 as Document Number 856048 in the Office of the County Recorder of Sherburne County,
Minnesota (the “Original Mortgage”) in connection with a loan provided by the Mortgagee to the
Assignee and the Assignor in accordance with its Owner-Occupied Housing Rehabilitation
Program.
B. The Assignee will acquire the property described in Exhibit A attached hereto (the
“Mortgaged Property”) which was subject to the Original Mortgage.
C. The Assignor desires to be released from the obligations under the Original
Mortgage and to assign her interest therein to the Assignee, and the Assignee is willing to accept
the assignment of the Original Mortgage and assume the Assignor’s obligations, rights and
interest in, to and under the Original Mortgage, all as more particularly outlined in this First
Amendment to Mortgage and Assignment and Assumption Agreement (Elk River HRA Owner-
Occupied Housing Rehabilitation Program) (the “First Amendment and Assignment”).
D. This is a mortgage amendment as defined in Minnesota Statutes, Section 287.01,
Subdivision 2, and as such it does not secure a new or an increased amount of debt. Minn. Stat.
287.05, Subd. 8. Mortgage registry tax was paid with respect to the indebtedness secured by the
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560346v1 JSB EL185-13
Original Mortgage as amended by this First Amendment and Assignment on the date of
recording of the Original Mortgage.
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of
which is hereby acknowledged, the parties hereto agree as follows:
1. Recitals. The above recitals are true and correct as of the date hereof and
constitute a part of this First Amendment and Assignment.
2. Terms. Except as set forth in paragraph 3 below, the terms used herein shall have
the meaning ascribed to them in the Original Mortgage unless otherwise specifically defined
herein.
3. Amendment. The term “Owner” in the Mortgage is hereby amended and shall
hereinafter mean Kyle A. Torfin.
4. Assignment. Assignor does hereby grant, transfer, and assign to Assignee all of
Assignor’s rights, title, benefits and interest in, to and under the Original Mortgage to the
Assignee. Assignee, as of the date hereof, hereby accepts the foregoing assignment, and assumes
and agrees to faithfully abide by, perform, and discharge each and every term, covenant, and
condition of the Original Mortgage applicable to the “Owner” and to be fully bound by all of the
foregoing. The Assignee hereby agrees to assume the sole obligation to repay the Installment
Loan.
5. Existing Provisions. Except as herein amended, all terms and provisions of the
Original Mortgage, as originally executed as October 20, 2017, shall remain in full force and
effect.
6. Governing Law. This First Amendment and Assignment shall be governed by and
construed in accordance with the laws of the State of Minnesota.
7. Execution Counterparts. This First Amendment and Assignment may be
simultaneously executed in several counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument.
(The remainder of this page is intentionally left blank.)
S-1
560346v1 JSB EL185-13
IN WITNESS WHEREOF, the parties hereto have caused this First Amendment and
Assignment to be executed the date first above written.
ASSIGNEE:
By
Kyle A. Torfin
STATE OF MINNESOTA )
)
COUNTY OF ________ )
The foregoing instrument was acknowledged before me this ____ day of _____, 2019, by Kyle
A. Torfin, as assignee and mortgator.
_______________________________
Notary Public
S-2
560346v1 JSB EL185-13
ASSIGNOR:
By
Jennifer R. Torfin
STATE OF MINNESOTA )
)
COUNTY OF ________ )
The foregoing instrument was acknowledged before me this ____ day of _____, 2019, by
Jennifer R. Torfin, as assignor.
_______________________________
Notary Public
S-3
560346v1 JSB EL185-13
MORTGAGEE: HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF ELK
RIVER
By____________________________
Its: Chair
By____________________________
Its: Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF SHERBURNE )
The foregoing instrument was acknowledged before me this ___ day of __________,
2019, by ______________________, the Chair and __________________, the Executive
Director of Housing and Redevelopment Authority in and for the City of Elk River, a public body
corporate and politic, on behalf of the public body.
_______________________________
Notary Public
This instrument drafted by:
Kennedy & Graven, Chartered (GAF)
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, Minnesota 55402
560346v1 JSB EL185-13
EXHIBIT A
LEGAL DESCRIPTION
The East Half of Lot 2, all of Lot 3 and the West Half of Lot 4, Block 7, of the Townsite of
Orono, Sherburne County, Minnesota.
560349v1 JSB EL185-13
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF ELK RIVER
CITY OF ELK RIVER
SHERBURNE COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2019-_____
RESOLUTION APPROVING FIRST AMENDMENT TO MORTGAGE AND ASSIGNMENT
Section 1. Recitals.
1.01 On October 20, 2017, the Board of Commissioners (the “Board”) of the Housing
and Redevelopment Authority in and for the City of Elk River, Minnesota (the “HRA”) provided
a loan in the amount of $21,640 (the “Loan”) to Kyle A. Torfin and Jennifer R. Torfin (referred
to collectively as the “Mortgagors”) pursuant to its Owner-Occupied Housing Rehabilitation
Program which was secured by a secured by a Mortgage and Repayment Agreement (Elk River
HRA Owner-Occupied Housing Rehabilitation Program) provided by the Mortgagors (the
“Mortgage”).
1.02 Kyle A. Torfin has requested that the HRA execute and deliver a First
Amendment to Mortgage and Assignment and Assumption Agreement (the “First Amendment to
Mortgage and Assignment”) whereby Jennifer R. Torfin will assign her interest in the Mortgage
to Kyle A. Torfin and Kyle A. Torfin will assume all obligations under the Mortgage, including
the sole obligation to repay the Loan.
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners (the “Board”) of
the Housing and Redevelopment Authority in and for the City of Elk River (the “HRA”) as follows:
Section 2. Approval of Documents.
2.01. The First Amendment to Mortgage and Assignment is hereby in all respects
approved together with any related documents necessary in connection therewith (the “Amendment
Documents”), and the Chair and Executive Director are hereby authorized and directed to execute
the Amendment Documents on behalf of the HRA and to carry out, on behalf of the HRA, the
HRA’s obligations thereunder.
2.02. The approval hereby given to the Amendment Documents includes approval of such
additional details therein as may be necessary and appropriate and such modifications thereof,
deletions therefrom and additions thereto as may be necessary and appropriate and approved by
legal counsel to the HRA and by the Chair and Executive Director prior to executing said
Amendment Documents; and said officers are hereby authorized to approve said changes on behalf
of the HRA. The execution of any instrument by the Chair and Executive Director shall be
conclusive evidence of the approval of such document in accordance with the terms hereof. In the
event of absence or disability of said officers, any of the Amendment Documents authorized by this
Resolution to be executed may be executed without further act or authorization of the Board by any
duly designated acting official, or by such other officer or officers of the Board as, in the opinion of
the City Attorney, may act in their behalf.
560349v1 JSB EL185-13
Approved by the Board of Commissioners of the Housing and Redevelopment Authority in
and for the City of Elk River, Minnesota this 1st day of April, 2019.
Chair
ATTEST:
Secretary