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7.2. HRSR 01-04-2021 �J etyof ElkRequest for Action River To Item Number Housing and Redevelopment Authoritv 7.2 Agenda Section Meeting Date Prepared by General Business January 4, 2021 Colleen Eddy, Economic Development Specialist Item Description Reviewed by Satisfaction of Mortgage—Samuel and Audrey Cal Portner, City Administrator Mahon Reviewed by Action Requested Approve,by motion,the Satisfaction of Mortgage for Samuel and Audrey Mahon. Background/Discussion On July 27, 2015, Samuel and Audrey Mahon received a loan from the HRA for$5,837 to make improvements to the property located at 501 6`'' Street NW through the HRA's Rehabilitation Loan program. As of December 15, 2020, the Mortgage and Repayment Agreement has been fully paid and satisfied. Financial Impact N/A Mission/Policy/Goal The goal of the HRA is to improve existing housing stock by offering incentives or programs to repair and maintain residential properties. Attachments ■ Mortgage and Repayment Agreement ■ Satisfaction of Mortgage The Elk River Vision A Y�elcoming community nvith revolutionary and spirited resourcefulness, exceptional P U W E H E o s r service, and community engagement that encourages and inspires prosperity ,g /` UR Office of the Registrar of Titles Sherburne County, MN Doc. No. 51825 Certified, filed, and/or recorded on �i fiX. November 20, 2015 9:35 AM Cert.: 9156 Michelle Ashe, Registrar of Titles / Bye Deputy t Fees: $46.00 11 ZS 51825 Mortgage and Repayment Agreement (Elk River HRA Owner -Occupied Housing Rehabilitation Program) This mortgage Is exempt from Mortgage Registration Tax imposed by Minnesota Statutes, §287.035, pursuant to Minnesota Statutes, §287.04, because the principal amount of the mortgage loan referred to herein is made under an affordable housing program and the mortgagee is the Housing and Redevelopment Authority in and for the City of Elk River, a Minnesota body corporate and politic. THIS MORTGAGE AND REPAYMENT AGREEMENT (this "Mortgage"), is made and entered into this 271h Day of July. 2015 (the "Effective Date"), by and between Samuel Mahon IV and Audrey Mahon, a married couple (the "Owner") the owner of the property located at 501 611 St. NW, Elk River MN 55330 and legally described as set forth in the attached Exhibit A (the "Property") and the Housing and ^ Redevelopment Authority in and for the Cityof Elk River, (the "HRA"), having its principal office at 13065 Orono Pkwy NW, Elk River MN 55330 LUNOW THEREFORE, in consideration of the Installment Loan described below and for other good and valuable consideration, the parties do hereby agree as follows: LU 1. In accordance with the Elk River Owner -Occupied Housing Rehabilitation Policies and Procedures (the "Procedures") and the Owner's Application dated APRIL 9", 2015 (the "Application"), both of which are incorporated herein by reference as if fully set forth herein, the HRA has agreed to '-.�. make to Owner a Housing Rehabilitation Loan, (the "Installment Loan"), relating to the Property, in the amount of $Five Thousand Eight Hundred Thirty -Seven ($5,837.00) Dollars The Installment Loan shall be disbursed directly to the contractor performing the work on the Property described in the Application in accordance with the Procedures. The Owner agrees to repay to the HRA in the Installment Loan Dlus interest thereon at the rate of 1.25% per annum in installments of pr -sips] and interest of $ 100.41 per month, beginning on December 111, 2015 through and including November P. 2020 (the "Final Maturity Date") in accordance with the amortization schedule and the Truth in Lending Statement signed by Owner both attached as Exhibit B. The Owner may prepay the Installment Loan in whole, together with accrued interest thereon, to the HRA on any business day. 2. Owner covenants and agrees with the HRA that if the Property is transferred or otherwise conveyed, voluntarily or involuntarily, either while the Owner is living or by reason of the death of the Owner prior to the Final Maturity Date, the Installment Loan and all accrued interest thereon shall be immediately due and payable and shall be repaid in full to the HRA. 3. As security for Owner's obligation to repay the Installment Loan and accrued interest thereon, and the cost, including reasonable attorney's fees, of collecting the same, and subject to the terms and conditions of this Mortgage, Owner hereby grants, and HRA shall and hereby does have, a statutory mortgage on the Property in accordance with Minnesota Statutes, Section 507.15. 4. The Owner covenants with the HRA the following statutory covenants; a. To warrant the title to the Property; subject to permitted encumbrances as set forth in Exhibit C. b. To pay the indebtedness as herein provided. c. To pay all taxes. d. That the Property shall be kept in repair and no waste shall be committed. e. That the whole of the principal sum shall become due after default, in the payment of any installment of principal or interest, or of any tax, or in the performance of any other covenant, at the option of the HRA. f To pay principal and interest on prior mortgages. 5. If default be made in any payment or covenant herein, the HRA shall have the statutory power of sale, and on foreclosure may retain statutory costs and attorney's fees. 6. For the protection of the HRA, the Owner will, during all the time until the indebtedness secured by this mortgage is fully paid, maintain all risk property insurance, naming the HRA as an additional insured, in an amount not less than the full insurable replacement value of the Property. Said insurance shall be written by a company or companies licensed to do business in Minnesota and rated Class A -:VII or better by A.M. Best Company. The term "full insurable replacement value" shall mean the actual replacement cost of the Property (excluding foundation and excavation costs and costs of underground flues, pipes, drains, and other items customarily omitted from replacement cost valuation for insurance purposes), without deduction for depreciation. The Owner will assign and deliver the policies of such insurance to the HRA so and in such manner and form that the HRA shall at all times, until the full payment of said indebtedness, have and hold the said policies as a collateral and further security for the payment of said indebtedness, or at the option of the HRA will make such policies payable in case of loss to the HRA as its interest may appear and will deposit them with the HRA, and in default of so doing, that the HRA may, but has no obligation to, obtain such insurance from year to year, or for one or more years at a time, and pay the premiums therefor, and that the Owner will forthwith repay to the HRA the same, with interest at the mortgage rate, and that the same shall become a part of the debt secured by this mortgage in like manner as the principal sum. The Owner may retain any moneys received by him/her on the policies, but the same shall apply in part payment of this mortgage. 7. This Mortgage shall terminate and shall be of no further force or effect upon payment in full of the Installment Loan and accrued interest thereon. 8. The Owner will indemnify, save, and hold harmless the HRA, the City of Elk River, Minnesota, Central Minnesota Housing Partnership, Inc., their officers, agents, and employees, from and against any claim, cause of action, damage, liability, loss or expense, including attorney's fees incurred by the HRA, made by any party in connection with or arising from (i) the presence, if any, of hazardous wastes or pollutants on the Property; (ii) any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Property, (iii) the performance of, or failure to perform, this Mortgage. Nothing herein shall be deemed a waiver of any statutory limitations of liability or immunity. 9. This Mortgage shall run with the aforesaid 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. 10. Any forbearance by the HRA in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 11. This Mortgage shall be governed by the law of the state of Minnesota. In the event that any provision or clause of this Mortgage conflicts with applicable law, such conflict shall not affect other provisions of this Mortgage which can be given effect without the conflicting provision. To this end, the provisions of this Mortgage are declared to be severable. 12. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. In witness whereof the Owner has duly executed this Rehabilitation Program Mortgage and Repayment Agreement. Owner and ortgagor: Sa el Mahon IV Audrey Mahon STATE OF MINNESOTA) ss. COUNTY OF ( t I(NX The foregoing instrument was acknowledged before me this; I day of J Uk j 201S by Samuel Mahon IV and Audrey Mahon owner and mortgaeor. AMY L HELM"ECHT NOTARY PUBLIC - MINNESOTA MY COMMISSION EXPIRES 01/31/202 S-1 l Accepted and agreed to by: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY STATE OF MINNESOTA) )ss. COUNTY OF (,9A-4uri) e o EXe C The foregoing instrument was acknowledged before me this c3 da of Y t!b 20%5 by S r a rf Gni' s the /} A C'h�c /r and int✓ a �boud{�the krc tiY�YL' i�� oKrespectively, of the Housing and Redevelopment Authority in and for the City of Elk River, a body corporate and politic organized and existing underAbe Constitution and laws of the State of Minnesota, on behalf of said Authority A6 Notary Public THIS INSTRUMENT DRAFTED BY: Housing and Redevelopment Authority for the City of Elk River 13065 Orono Pkwy NW Elk River, MN 55330 S-2 DEBORAH KAY HUEBNER #0 NOTARYKEW-tNN "WA Ny0NKft pttE4 tJm.81,2=0 Exhibit A Legal Description of Property Lot Twenty (20), Walker's Addition Revised, Sherburne County, Minnesota. A-1 Exhibit B Amortization Schedule and Truth in Lending Statement MI Elk River HRA Homeowner Rehabilitation Program Truth in Lending Statement 1.25% Installment Loan Borrower(s): Samuel and Audrey Mahon Project #: ER -5 Project address: 5016' St. NW Elk River, MN 55330 Annual % Rate Finance Charge Amount Financed Total of Payments The cost of your credit Dollar amount the Amount of credit Amount you will have as a yearly rate credit will cost you provided to you on paid after you have made (total interest) your behalf all payments as scheduled 1.25% $ 187.34 $ 5.837.00 $ 6.024.34 Your payment schedule will be: Number of Payments Amount of Payments Due Date Monthly Starting 60 $ 100.41 1� of each month December 1'`. 2015 Security: You are giving a security interest in the property to improve Prepayment: If you pay off early, you will not have to pay a penalty Assumption: Someone buying your property cannot assume the remainder of the repayment agreement on the original terms See your contract documents for any additional information about non-payment, default, any required prepayment in full before the schedule date, and prepaying refunds and penalties. Itemization of the Amount Financed of $ 5.837.00 • Construction costs associated with rehabilitation project The makers, guarantors, endorsers and any other parties to this Note hereby waive presentment, demand, protest and notice of dishonor and protect and hereby agree that an extension or extensions of the time of payment of this Note or any installment or part hereof may be made before, at or after maturity by agreement with any one or more of the parties hereto with out notice to and without releasing the liability of any other party to this Note. By executing this Note, the undersigned acknowledge receipt of a copy thereof prior to execution. Borrower: �� ,� ��/L� �. Date: Borrower: L/''«^��D / ✓ ` C Date: % Q - a 9- Loan Amortization Schedule Enter values Instructions Loan amount $ 5,837.00 + L, , [ I .0 7; r Annual interest rate 1.250% it 1ra4 rT,+ai i r, ILI; r:reb:a: Loan period in years 5 Start date of loan 12/1/2015 Optional extra payments Scheduled monthly payment Scheduled number of payments Actual number of payments Total of early payments Total interest $ 100.41 6p 60 $ $ 187.34 No. Payment Date Beginning Balance Scheduled Payment Extra Payment Tctal Payment Principal Interest Ending Balance 1 )2/1/2015 $ 5,837.00 $ 100.41 $ - $ 100.41 $ 94.33 3 6.08 $ 5742.67 2 1/1/2016 $ 5,742.67 $ 100.41 $ - $ 100.41 $ 94.42 $ 5.98 $ 5.648.25 3 2/1/2016 $ 5,648.25 $ 100.41 $ - $ 100.41 $ 9452 $ 5.88 $ 5.553.73 4 3/1/2016 $ 5,553.73 $ 100.41 $ - $ 100.41 $ 94.62 $ 5.79 $ 5.459.11 5 4/1/2016 $ 5.459.11 $ 100.41 $ - $ 100.41 $ 9472 $ 5.69 $ 5,364.39 6 5/1/2016 $ 5.364.39 $ 100.41 $ - $ 100.41 $ 94.82 $ 5.59 $ 5,269.57 7 6/1/2016 $ 5,269.57 $ 10041 $ - $ 100.41 $ 94.92 $ 5.49 $ 5.174.65 8 7/1/2016 $ 5.174.65 $ 100.41 $ - $ 100.41 $ 95.02 $ 5.39 $ 5,079.64 9 8/1/2016 $ 5.079.64 $ 10041 $ - $ 10041 $ 95.11 $ 5.29 $ 4.984.52 10 9/1/2016 $ 4,984.52 $ 100.41 $ - $ 100.41 $ 95.21 $ 5.19 $ 4,889,31 it 10/1/2016 $ 4,88931 $ 100.41 $ - $ 100.41 $ 95.31 $ 5.09 $ 4,794.00 12 11/1/2016 $ 4,794.00 $ 100.41 $ - $ 100.41 $ 95.41 $ 4.99 $ 4,698.59 13 12/1/2016 $ 4,698.59 $ 100.41 $ - $ 100.41 $ 95.51 $ 4.89 $ 4,603.07 14 1/1/2017 $ 4,603.07 $ 100.41 $ - $ 100.41 $ 95.61 $ 4.79 $ 4,507.46 15 2/1/2017 $ 4,50746 $ 100.41 $ - $ 100.41 $ 95.71 $ 4.70 $ 441175 16 3/1/2017 $ 4,411,75 $ 100.41 $ - $ 100.41 $ 95.81 $ 4.60 $ 4.315.94 17 4/1/2017 $ 4,315,94 $ 100.41 $ - $ 100.41 $ 95.91 $ 4.50 $ 422003 18 5/1/2017 $ 4220.03 $ 10041 $ - $ 100.41 $ 96.01 $ 4.40 $ 4,124.02 19 6/1/2017 $ 4,124.02 $ 100.41 $ - $ 100.41 $ 96.11 $ 4.30 $ 4,027.91 20 7/1/2017 $ 4,027.91 $ 100.41 $ 100.41 $ 96.21 $ 4.20 $ 3,931.70 21 8/1/2017 $ 3,931.70 $ 100.41 $ - $ 100.41 $ 96.31 $ 4.10 $ 3,835.39 22 9/1/2017 $ 3,835.39 $ 100.41 $ - $ 100.41 $ 96.41 $ 4.00 $ 3,738.98 23 10/1/2017 $ 3,738.98 $ 100.41 $ - $ 10041 $ 96.51 $ 3.89 $ 3,642.47 24 11/1/2017 $ 3,642.47 $ 100.41 $ - $ 100,41 $ 96.61 $ 3.79 $ 3,545.86 25 1^/1/2017 $ 3,545.86 $ 100.41 $ - $ 100.41 $ 96.71 $ 3.69 $ 3,449.15 26 1/1/2018 $ 3.4/9.15 $ 100.'11 $ - $ 1004 $ Sti.81 $ 3.59 $ 3,352.34 27 2/1/2018 $ 3,352.34 $ 100.41 $ - $ 100.41 $ 96.91 $ 3.49 $ 3,255.42 28 3/1/2018 $ 3,255.42 $ 100.41 $ - $ IOOAI $ 97.01 $ 3.39 $ 3,158.41 29 4/1/2018 $ 3.158.41 $ 100.41 $ - $ 100.41 $ 97.12 $ 3.29 $ 3,061.29 30 5/1/2018 $ 3.061.29 $ 100.41 $ - $ 10041 $ 97.22 $ 3.19 $ 2.964.07 31 6/1 i2018 $ 2,964.07 $ 100.41 $ - $ 100.41 $ 97.32 $ 3.09 $ 2,866.76 32 7/1/2018 $ 2,866.76 $ 100.41 $ - $ 100.41 $ 9742 $ 2.99 $ 2,769.34 33 8/1/2018 $ 2,769.34 $ 100.41 $ - $ 100.41 $ 97.52 $ 2.88 $ 2,671.82 34 9/1/2018 $ 2,671.82 $ 100.41 $ - $ 100.41 $ 97.62 $ 2.78 $ 2,574.19 35 10/1/2018 $ 2,574.19 $ 100.41 $ - $ 100.41 $ 9772 $ 2.68 $ 2,476.47 36 11/1/2018 $ 2,476.47 $ 100.41 $ - $ 100.4) $ 97.83 $ 2.58 $ 2,378.64 37 12/1/2018 $ 2,378.64 $ 100.41 $ - $ 100.41 $ 97.93 $ 2.48 $ 2.280.71 38 1/112019 $ 2,280.71 $ 130.41 $ - $ 100.41 $ 98.03 $ 2.38 $ 2,182.68 39 2/1/2019 $ 2,182.68 $ 10041 $ - $ 100.41 $ 98.13 $ 2.27 $ 2,084.55 40 3/1/2019 $ 2,084.55 $ 1C0.41 $ - $ 100.41 $ 98.23 $ 2.17 $ 1,986.32 41 4/1/2019 $ 1,986.32 $ 100.41 $ - $ 100.41 $ 98.34 $ 2.07 $ 1,887.98 42 5/1!2019 $ 1.887.98 $ 100.41 $ - $ 10041 $ 98.44 $ 197 $ 1.789,54 43 6/1/2019 $ 1,789.54 $ 100.41 $ - $ 100.41 $ 98.54 $ 1.86 $ 1,691.00 44 7/1/2019 $ 1,691.00 $ 100.41 $ - $ 100.41 $ 98.64 $ 1.76 $ 1.592.36 45 8/1/2019 $ 1,592.36 $ 100.41 $ - $ 100.41 $ 98.?5 $ 1.66 $ 1,493.61 Beginning Scheduled No. Payment Date Balance Payment Extra Payment Total Payment Principal Interest Ending Balance 46 9/1/2019 $ 1.493.61 $ 100.41 $ - 1 100.41 $ 98.85 $ 1,56 ; 1.394.76 47 10/1/2019 $ 1.39476 $ 10041 $ - $ 100.41 $ 98.95 $ 1.45 $ 1.295.81 48 1/1/2019 $ 1,295.81 $ i 0041 $ - $ 100.41 $ 9906 $ 1.35 .$ 1 196,75 49 12/1/2019 $ 1,19675 $ 100.41 $ - $ 10041 $ 99.16 $ 1.25 $ 1,097.59 50 1/1/2020 $ 1,09759 $ 100.4i $ - $ 100.41 $ 99.26 $ 1.14 $ 998.33 51 2/1/2020 $ 998.33 $ 100.41 $ - $ 100.41 $ 99.37 $ 1.04 $ 898.96 52 3/1/2020 $ 898.96 $ 10041 $ - $ 100.41 $ 9947 $ 0.94 $ 799.49 53 4/1/2020 $ 799.49 $ 100.41 $ - $ 100,41 $ 99.57 $ 0.83 $ 69992 54 5/1/2020 $ 699.92 $ 100.41 $ - $ 100.41 $ 99.68 $ 0.73 $ 600.24 55 6/1/2020 $ 600.24 $ 100.41 $ - $ 100,41 $ 99.78 $ 0.63 $ 500.46 56 7/1/2020 $ 500.46 $ 10041 $ - $ 100.41 $ 99.88 $ 0.52 $ 400.58 57 8/1/2020 $ 400.58 $ 100.41 $, - $ 100.41 $ 9999 $ 0.42 $ 30059 58 9/1/2020 $ 300.59 $ 100.41 $ - $ 100,41 $ 100.09 $ 0.31 $ 200.50 59 10/1/2020 $ 200.50 .$ 100.41 $ - $ 100,41 $ 100.20 $ 0.21 $ 100.30 60 11/1/2020 $ 100.30 $ 100.41 $ - $ 100.41 $ 100.30 $ 0.10 $ 0.00 Exhibit C Permitted Encumbrances None C-1 City of Elk River HRA Homeowner Rehabilitation Program Loan Payment Instructions The City of Elk River HRA will receive your mortgage/repayment agreement monthly payment as follows: Payments are due the 15t of each month: Checks should be made payable to: Checks should be mailed to: Your original principal loan balance: Your monthly payment amount: *Please note, no coupon book will be sent Starting December 2015 City of Elk River HRA Memo line: Rehab loan payment City of Elk River Attn: Colleen Eddy 13065 Orono Parkway Elk River, MN 55330 $5,837.00 $100.41 Central Minnesota Housing Partnership, Inc. ■ 37 28th Avenue North Suite 102 • St. Cloud. Minnesota • 56303-4242 MEMO To: Sam & Audrey Mahon 501 6u' St. NW Elk River, MN 55330 From: Ed Zimny, Program Manager Date: November 12, 2015 RE: Repayment agreement correction Hello Sam & Audrey, The county recorder's office has returned the repayment agreement without recording it. Please see the attached letter which indicates what needs to be corrected. Please take it back to the Notary and have her make the correction and return it to me. I have enclosed a self-addressed stamped envelope for your convenience. Thank you, Ed Z y Program Manager Enclosure PH 320.259.0393 — A MINNESOTA NONPROFIT CORPORATION — MN TDD 711 �"° m OWOR}VNItt Equal Opportunity Employer Reasonable accommodations are available WEB PAGE cmhp.net FAX 320.259.9590 F1 I fifii November 4, 2015 Central Minnesota Housing Partnership, Inc. 37 28th Avenue North Suite 102 • St. Cloud. Minnesota • 56303-4242 Sherburne County Recorder's Office 13880 Highway 10 Elk River, MN 55330 RE: Document recording request Please record the enclosed Repayment Agreement document. A check in the amount of $46 is enclosed for the recording fee. Please return the recorded document in the SASE provided. If you have any questions please contact me at (320) 258-0673 or ed@cmhp.net. Thank you, G� Ed Zi Program Manager Enclosure PH 320.2590393 —A MINNESOTA NONPROFIT CORPORATION— WEB PAGE cmhp.net MN TDD 711 FAX 320.259.9590 orvomuuin Equal Opportunity Employer Reasonable accommodations are available Elk River HRA Homeowner Rehabilitation Program Truth in Lending Statement 1.25% Installment Loan Borrower(s): Samuel and Audrey Mahon Project #: ER -5 Project address: 501 6"' St. NW Elk River MN 55330 Annual % Rate Finance Charge Amount Financed Total of Pavments The cost of your credit Dollar amount the Amount of credit Amount you will have as a yearly rate credit will cost you provided to you on paid after you have made (total interest) your behalf all payments as scheduled 1.25% $ 187.34 $ 5,837.00 $6,024.34 Your payment schedule will be: Number of Payments Amount of Payments Due Date Monthly Starting $ 100.41 111 of each month December 151, 2015 Security: You are giving a security interest in the property to improve Prepayment: If you pay off early, you will not have to pay a penalty Assumption: Someone buying your property cannot assume the remainder of the repayment agreement on the original terms See your contract documents for any additional information about non-payment, default, any required prepayment in full before the schedule date, and prepaying refunds and penalties. Itemization of the Amount Financed of 5,837.00 • Construction costs associated with rehabilitation project The makers, guarantors, endorsers and any other parties to this Note hereby waive presentment, demand, protest and notice of dishonor and protect and hereby agree that an extension or extensions of the time of payment of this Note or any installment or part hereof may be made before, at or after maturity by agreement with any one or more of the parties hereto with out notice to and without releasing the liability of any other party to this Note. By executing this Note, the undersigned acknowledge receipt of a copy thereof prior to execution. Borrower: Date: Borrower: Date: Form No. 2051-51M—SATISFACTION OF MORTGAGE By Corporation or Partnership Satisfaction of Mortgage Date: 12/15/2020 THAT CERTAIN MORTGAGE owned by the undersigned, a political subdivision under the laws of Minnesota, dated 7/27/2015 executed by SAMUEL MAHON IV and AUDREY MAHON, Spouses Married to Each Other as Mortgagor(s), to the Housing and Redevelopment Authority In and for the City of Elk River, Minnesota, as Mortgagee to, and filed for record on 11/20/2015 as Document Number 51825, in the Office of the ☒ Registrar of Titles of Sherburne County, Minnesota, is with the indebtedness thereby secured, fully paid and satisfied. Housing and Redevelopment Authority In and for the City of Elk River, Minnesota STATE OF MINNESOTA } } ss. COUNTY OF SHERBURNE } The foregoing instrument was acknowledged before me on _________________, by ________________________, the ____________________ of _______________, a political subdivision under the laws of Minnesota, on behalf of the city. _________________________________ Signature of Notarial Officer taking acknowledgement (Reserved for recording data) THIS INSTRUMENT WAS DRAFTED BY: Housing and Redevelopment Authority in and for the City of Elk River, Minnesota 13065 Orono Parkway, Elk River, MN 55330 NOTARIAL STAMP OR SEAL (OR OTHER TITLE OR RANK) ____________________________ (Signature) By:_________________________________ (Name of authorized signor) __________________________________ (Title of authority)