4.5. HRSR 04-05-2021 �J
etyof Request for Action
Elk
River
To Item Number
Housing and Redevelopment Authoritv 4.5
Agenda Section Meeting Date Prepared by
Consent April 5, 2021 Colleen Eddy, Economic Development Specialist
Item Description Reviewed by
Satisfaction of Mortgage—Swenson Cal Portner, City Administrator
Reviewed by
Action Requested
Approve,by motion,the Satisfaction of Mortgage for Jayme and Chad Swenson.
Background/Discussion
On March 20, 2015,Jayme and Chad Swenson received a loan from the HRA through the HRA's
Rehabilitation Loan program for $25,000 to make improvements to the property located at 602 Gates
Avenue NW.
As of March 9, 2021, 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
EXEMPT FROM REGISTRATION TAX.
SHERBURNECOUNTY
/a,U�i I R TREASURER
Office of the Registrar of Titles
Sherburne County, MN
Doc. No. 51587
Certified, filed, and/or recorded on
September 14, 2015 2:40 PM
Cert.: 7177
Michelle
`Assh,,e,,�Registrar of Titles
By-t'�11 , Deputy
Fees: $46.00
I IIIIII VIII VIII VIII VIII IIII IIII
51587
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
V J 201" day of March. 2015 (the "Effective Date"), by and between Javme M. Swenson and Chad M. Swenson,
Za married couple (the "Owner") the owner of the property located at 602 Gates Avenue NW, Elk River, MN
W 55330 and legally described as set forth in the attached Exhibit A (the "Property") and the Housing and
Redevelopment Authority in and for the City of Elk River, (the "HRA"), having its principal office at 13065
Orono Pkwy NW. Elk River, MN 55330
O NOW THEREFORE, in consideration of the Installment Loan described below and for other good and
valuable consideration, the parties do hereby agree as follows:
1. In accordance with the Elk River Owner -Occupied Housing Rehabilitation Policies and Procedures
(the "Procedures") and the Owner's Application dated June 19th 2014 (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 Twenty -Five Thousand and 00/100 ($25,000.00) 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
plus interest thereon at the rate of 3.25% per annum in installments of principal and interest of
$175.67 per month, beginning on October 1". 2015 through and including September
1" 2030 (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.
Ownedand
M. Swenson
STATE OF MINNESOTA)
)ss.
COUNTY OF (5444Vv+ )
The foregoing instrument was acknowledged before me this *�.� day of jjd(Aj,1& 201x, by
Javme M. Swenson and Chad M. Swenson, owner and mortgagor.
BRIAN R BOETTCHER
NOTARY NEW- MINNESOTA
MY COMMISSION EXPIRES 01131/18
S-1
Notary u is
Accepted and agreed to by:
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF ELK U
YER
By
Its
ByArl
its �KClJprotFi�i/BcIO/
STATE OF MINNESOTA)
)ss.
COUNTY OF
The foregoing instrument was acknowledged before me t is 6 day of /'i 20 L5, by
the //i� �and the
respectively, of the Housing and Redevelopment Authority in and for the City
of Elk River, a body corporate and politic organized and existing under the Constitution and laws of the State
of Minnesota, on behalf of said Authority n ,
Notary
THIS INSTRUMENT DRAFTED BY:
104# DEBORAH KAY HUEBNER
NOTARY PUM-tANNESOTA
?NCW0"MEVkWJWL31,2M;
Housing and Redevelopment Authority for the City of Elk River
13065 Orono Pkwy NW
Elk River, MN 55330
S-2
Exhibit A
Legal Description of Property
Real Property in Sherburne County, Minnesota, described as follows:
All of Lot 19 and the South 31 feet of Lot 18, Walker's Addition Revised, Elk River, Minnesota,
Sherburne County, Minnesota
A-1
Exhibit B
Amortization Schedule and Truth in Lending Statement
M.
Form No.2051-51M—SATISFACTION OF MORTGAGE
By Corporation or Partnership
Satisfaction of Mortgage
(Reserved for recording data)
Date: 3/9/2021
THAT CERTAIN MORTGAGE owned by the undersigned, a political subdivision under the laws of Minnesota, dated
3/20/2015 executed by Jayme M. Swenson and Chad M. Swenson, 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 9/14/2015 as Document Number 51587, in the Office of the ❑ County Recorder ❑X 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
By:
(Name of authorized signor) (Title of authority) (Signature)
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
THIS INSTRUMENT WAS DRAFTED BY: NOTARIAL STAMP OR SEAL(OR OTIIER TITLE OR RANK)
Housing and Redevelopment Authority in and for the
City of Elk River,Minnesota
13065 Orono Parkway
Elk River,MN 55330
763-635-1000