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2. Subordination Policy

   The Urban Programs Department provides financing to low-moderate income owners and rental units that are occupied by lower-income households.

   
   The Urban Programs Department believes that its investment in such dwelling units should not preclude economic advancement of the borrower and will subordinate the City’s mortgage when in the best interest of the borrower. The City is interested in preserving its investment in such housing and the continued benefit to the recipient of assistance, therefore the following conditions must be satisfied in order for Subordination to be considered:

   
   Total debt secured by the property shall be no more than 90% of the value of the property as established by a conservative current fair market appraisal.

   The terms of all debt must be such that the Owner has sufficient income to make all payments related to housing including mortgage(s), property taxes, insurance, utilities and upkeep.

   
   Urban Program will strongly discourage its borrowers from entering into agreements with so-called "predatory lenders", and reserves the right to decline to subordinate to such arrangements. Among the conditions associated with predatory lending are high loan-to-value mortgages, mortgages based on property value alone, without consideration to borrower’s ability to make payments, interest rates higher than market and excessive closing costs.

   
   If the borrower is refinancing to secure an improved interest rate and no cash equity will be withdrawn, the City will automatically subordinate. Proof must be submitted to the Urban Programs Department.

4. Please select type of request

   1. Payoff
   2. Subordination
5. Anticipated Date of Closing
   Anticipated Date of Closing
7. Please provide contact info of requester:
9. Company Name:
11. Name
12. Email Address
14. Address
16. City
17. State
18. Zip Code
20. Phone Number
21. Fax Number
23. Owner/Borrower's Info:
25. First Name
26. Last Name
28. First Name (Add'l borrower)
29. Last Name
31. Street Address
32. Zip Code
34. Complete the following only for Subordination Requests:
36. Current Appraised Value
37. Date of Appraisal
    Date of Appraisal
39. New Loan Terms
    Please provide new mortgage details, including: Interest rate, terms, principal amount to be borrowed, all repayment and prepayment clauses in the proposed mortgage and promissory note.
41. Use this section to add any additional comments or notes
43. Please provide the following documents. The City reserves the right to request additional information as needed:

    1. Settlement Sheet
    2. Documentation of Borrower's ability to repay
    3. Other info you feel support's the request
45. Please attach Settlement Sheet
47. Please attach documentation of Borrower's ability to pay
49. Additional documentation (optional)
51. Additional documentation (optional)
Leave This Blank:


53. 1. Receive an email copy of this form.
54. Email address

    This field is not part of the form submission.

55. Submit

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