TITLE
title
Resolution Approving Subordination Agreement With Neighborhood Lending Partners of Florida, Inc., and Rochester Park, Ltd.; and Ratifying Signature on Agreement for Rochester Park Project
body
BRIEF OVERVIEW
Rochester Park, Ltd. (hereinafter referred to as borrower) entered in a State Housing Initiatives Partnership (SHIP) Mortgage Agreement with Hernando County on February 16, 2022, in the principal amount of $100,000.00. This mortgage was subordinated to the first noteholder, Wells Fargo. Subsequently, the borrower has received approval from Neighborhood Lending Partners of Florida, Inc., (NLP) to borrow $2,835,000.00 through a multifamily mortgage loan. NLP will not enter into the loan unless Hernando County’s mortgage is subordinated NLP’s mortgage. This subordination agreement will again make the Hernando County loan the second mortgage on the subject property.
Because the closing of the NLP mortgage was scheduled for August 15, 2024, and the lender would not proceed unless Hernando County’s mortgage was subordinated, the BOCC’s Chairperson signed the subordination agreement. The Board of County Commissioners is now asked to ratify that action.
FINANCIAL IMPACT
There is no financial impact resulting from this request. Recording and any other fees will be the responsibility of borrower.
LEGAL NOTE
The Board has authority to act on this matter pursuant to Chapter 125, Florida Statutes.
recommendation
RECOMMENDATION
It is recommended that the Board approve and authorize the Chairperson’s signature on the attached resolution ratifying the attached subordination agreement.