Agenda Item Title:
Request for Council Approval to Subordinate CDBG Assisted Mortgages
Origination Group:
Legal & Finance Committee
Origination Meeting Date:
08/15/2018
City Council Hearing Date:
08/20/2018
Staff Contact:
Barbara Garcia
Agenda Item Summary:
Client requests Council Approval to subordinate mortgages received from Teton Coalition ($5,000) and Rapid City Community Development Corporation ($20,000) that have been assigned to the City of Rapid City. Client is requesting subordination for Cash-out Refinance to repay debts. See client letter and pre-approval letter from Black Hills Federal Credit Union below.
The current CDBG policy is not to do Cash Out Refinances, but the Council can make exceptions when it will improve stability for repayment.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
| CDBG funds from Teton Coalition ($5,000) and Rapid City Community Development Corporation ($20,000) as assigned to the City of Rapid City. | |
Recommendations:
Origination Recommendation Action:
Approve
Origination Recommendation Notes:
Staff recommendation is to approve.