Agenda - Council - 09/26/2017 - Laserfiche WebLink

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1 Subordination Agreement U.S. Department of Housing and Urban Development Office of Housing OMB Approval No. 2502-0598 (Exp. 06/30/2017) Public Reporting Burden for this collection of information is estimated to average 0.5 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Response to this request for information is required in order to receive the benefits to be derived. This agency may not collect this information, and you are not required to complete this form unless it displays a currently valid OMB control number. While no assurance of confidentiality is pledged to respondents, HUD generally discloses this data only in response to a Freedom of Information Act request. Project Name: Greenwav Terrace HUD Project No: THIS SUBORDINATION AGREEMENT ("Agreement") is entered into this day of , 2017 by and among (i) DOUGHERTY MORTGAGE LLC, a Delaware limited liability company ("Senior Lender"), (ii) CITY OF RAMSEY, a Minnesota municipal corporation ("Subordinate Lender"), and (iii) RAMSEY STATION APARTMENTS LIMITED PARTNERSHIP, a Minnesota limited partnership ("Borrower"). Recitals WHEREAS, Borrower is the owner of that certain 54 unit residential rental development known as "Greenway Terrace" ("Project"), located at 7562 146th Avenue NW, Ramsey, Minnesota. Senior Lender has made or is making the senior mortgage loan as described on Schedule A hereto ("Senior Indebtedness") to Borrower in the original principal amount(s) as shown on Schedule A, evidenced by the Note described in Schedule A ("Senior Note"), and secured by, among other things, the Security Instrument as described in Schedule A (collectively, "Senior Security Instrument"), covering the property described in Exhibit A attached hereto together with all improvements thereon and personal property used relative thereof, all as more particularly described in the Senior Security Instrument ("Mortgaged Property"). WHEREAS, Borrower has requested Senior Lender to permit Subordinate Lender to make a subordinate loan to Borrower in the amount of $100,000 ("Subordinate Loan"), pursuant to the Subordinate Loan Documents as defined below, and secured by, among other things, a mortgage lien against the Mortgaged Property. WHEREAS, Senior Lender, with the approval of the U.S. Department of Housing and Urban Development ("HUD"), has agreed to permit Subordinate Lender to [make the Subordinate Loan and to place a subordinate mortgage lien] [keep the Subordinate Loan outstanding and maintain a subordinate mortgage lien] against the Mortgaged Property subject to all of the conditions contained in this Agreement and in accordance with Program Obligations. "Program Obligations" means (1) all applicable statutes and any regulations issued by the Secretary pursuant thereto that apply to the Project, including all amendments to such statutes and regulations, as they become effective, except that changes subject to notice and comment rulemaking shall become effective only upon completion of the rulemaking process, and (2) all current requirements in HUD handbooks and guides, notices, and mortgagee letters that apply to the Project, and all future updates, changes and amendments thereto, as they become effective, except that changes subject to notice and comment rulemaking shall become effective only upon completion of the rulemaking process, and provided that such future updates, changes and Subordination Agreement HUD-92420M (06/14) US.113590860.01