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128.2013 Subordination of Lien Housing Rehab #6171 RESOLUTION AUTHORIZING SUBORDINATION OF LIEN IN CONNECTION WITH TOWN OF QUEENSBURY HOUSING REHABILITATION PROGRAM- CASE FILE #6171 RESOLUTION NO.: 128, 2013 INTRODUCED BY: Mr. Tim Brewer WHO MOVED ITS ADOPTION SECONDED BY: Mr.Anthony Metivier WHEREAS, the Town of Queensbury previously established a Housing Rehabilitation Program to provide grants to cover 100% of the cost of rehabilitation up to a maximum of $25,000, whichever is less, and WHEREAS, the Town previously received grant funds from the New York State Affordable Housing Corporation Affordable Home Ownership Development (AHOD) and the New York State Homes and Community Renewal HOME programs to cover eligible project costs, and WHEREAS, in 2010, by Resolution No.: 252,2010, the Queensbury Town Board determined a single family property homeowner (Case File 96171) to be eligible for such rehabilitation grant assistance and the owner of the property received a grant under such HOME program in the total amount of$22,295, and WHEREAS, under the terms of the grant, 20% is forgiven each year for five (5) years provided that the conditions of the grant are met, and WHEREAS, the Town currently has a lien against the property for $13,377, and WHEREAS, the Homeowner wishes to refinance the primary mortgage so that they can take advantage of a debt consolidation plan that will substantially reduce their monthly debt obligations and a redacted copy of a letter to the Town Board has been provided with the name and address of the property removed to protect the identity of the Homeowner consistent with the Grant administrative process, and WHEREAS, as a condition of the financing, the lender requires that the Town's lien be secondary (subordinate) to the new mortgage amount, and WHEREAS, the Town's Senior Planner and the HOME Grant Administrator, Shelter Planning and Development, have reviewed the Grant and the request and have recommended that the Town agree to Subordinate the Town's lien to allow the refinancing, and WHEREAS, it appears that the Homeowner has resided in this property for many years and will continue to do so, and WHEREAS, the loan documents provided to the Town demonstrate that the Homeowner intends to refinance but sufficient equity will remain in the property to protect the interests of the Town, and WHEREAS, the effect of the refinancing and subordination agreement will be to place the new bank in the position of first Mortgage holder in place of the current Mortgage holder, NOW,THEREFORE,BE IT RESOLVED, that the Queensbury Town Board hereby agrees to allow the subordination of the lien as described above and authorizes and directs the Senior Planner to prepare the necessary form for signature by the Town Supervisor, and BE IT FURTHER, RESOLVED, that the Town Board further authorizes and directs the Town Supervisor to execute the Subordination Agreement on behalf of the Town, and BE IT FURTHER, RESOLVED, that the Town Board further authorizes and directs the Town Supervisor and/or Senior Planner to take such other and further action as may be necessary to effectuate the terms of this Resolution. Duly adopted this 25th day of February,2013,by the following vote: AYES: Mr. Strough, Mr. Brewer,Mr.Metivier NOES: None ABSENT: Mr.Montesi