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HOUSING DIVISION
City of San Fernando and San Fernando Redevelopment Agency Subordination Requirements
Requirements:
I. City or Agency loans may be subordinated in the following
circumstances:
- The property owner is refinancing for a lower interest rate only with
no cash out or withdrawal of equity.
- The refinancing or
assisting of the unit is not reasonably available on substantially comparable
terms without the
City or Agency subordination.
- The City of San Fernando will not honor more than one Subordination per
loan term.
II. Program regulations require that the Housing Division
receive the following:
- A written request from
the property owners requesting subordination of the City
or Agency lien on their property.
In the request, the
property owner
must
state that the new loan to which the City/Agency loan
is to subordinate to will be for a lower interest rate
and that with without subordination
that
refinancing is not reasonably available on substantially
comparable terms.
- Itemized breakdown from the lender
of the new primary loan (a "Good
Faith Estimate").
- Copy of the Preliminary Title
Report.
- A standard Subordination Agreement (CTLA
Subordination Form "A" or "B" for
the City/Agency to sign (available on the City website
for downloading). Form must be sent with all information
filled
out except for signatures.
- A signed City or Agency -
Subordination
Request Form
- Subordination Agreement - CLTA
Subordination Form “A”
Items should be sent to:
Housing Division – SUBORDINATIONS
Community Development Department
San Fernando City Hall
117 Macneil Street San Fernando, CA 91340
Phone (818) 898-1378 Fax (818) 898-7329
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