Title
Dept./Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Assignment and Assumption Agreement / Transfer of Affordable Housing Obligations
Purpose: To authorize the execution of an Assignment and Assumption Agreement, Assignment of Mortgage, Acknowledgment of Affordability Requirements, and any related transfer documents in connection with the transfer of property located at 129-131 Seymour Avenue, Newark, New Jersey, and the assignment and assumption of certain Neighborhood Stabilization Program loan and affordability obligations associated therewith.
Entity Name: Seymour Home, LLC
Entity Address: 35 Planka Place, Spring Valley, New York 10977
Grant Amount: N/A
Funding Source: N/A
Total Project Cost: N/A
City Contribution: Original Neighborhood Stabilization funding in the amount of $166,286.12 previously provided in connection with the Property
Other Funding Source/Amount: N/A
Grant Period: The affordability controls and restrictive covenants shall remain in effect through November 8, 2026, in accordance with the Deed of Easement and Restrictive Covenants recorded against the Property.
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( ) Grant ( ) Sub-recipient (X) n/a
List of Property:
(Address/Block/Lot/Ward)
129-131 Seymour Avenue/Block 3024/Lot 85/South Ward
Additional Information:
body
WHEREAS, the City of Newark (the “City”), through its Department of Economic and Housing Development (“EHD”), previously provided Neighborhood Stabilization (“NSP”) funds in the original principal amount of One-Hundred Sixty-Six Thousand Two Hundred Eighty-Six Dollars and Twelve Cents ($166,286.12) in connection with the development of affordable housing located at 129-131 Seymour Avenue, Newark, New Jersey (Block 3024, Lot 85)(the “Property”); and
WHEREAS, the NSP funds are evidence and secured by, among other documents, (i) a Promissory Note dated November 23, 2015; (ii) a certain Forgivable Mortgage dated November 23, 2025 and recorded with the Essex County Register’s Office on December 18, 2015 as Instrument No. 201597816, as amended and (iii) a certain Deed of Easement and Restrictive Covenants dated November 23, 2015 and recorded with the Essex County Registrar’s Office on December 18, 2015 as Instrument No. 2015097818, as amended (collectively, the “Loan Documents”): and
WHEREAS, the Forgivable Mortgage was previously assigned to Ryan S. Curran (“Assignor”) pursuant to that certain Assignment of Mortgage dated November 18, 2018, and recorded on December 17, 2018 as Instrument No. 2018108267; and
WHEREAS, Assignor has requested the City’s consent to transfer the Property and assignment and assumption of the Loan Documents to Seymour Home, LLC (“Assignee”); and
WHEREAS, in connection with said transfer, the City has reviewed: (i) Assignment and Assumption Agreement by and among the Assignor, Assignee, and the City; (ii) Assignment of Mortgage from Assignor to Assignee; and (iii) an Acknowledgement of Affordability Requirements to be executed by Assignee in favor of the City (collectively, the “Transfer Documents”); and
WHEREAS, pursuant to the Transfer Documents, the Assignee shall assume the obligations under the Loan Documents, including the affordability controls and restrictive covenants affecting the Property; and
WHEREAS, the Municipal Council finds it to be in the best interests of the City to authorize the execution of the Transfer Documents and approve the City’s consent to transfer of the Property and assignment and assumption of the Loan Documents to ensure the continued enforcement of the affordability restrictions affecting the Property.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor and/or Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to execute and deliver, on behalf of the City of Newark, the following documents substantially in the forms presented to the Municipal Counsel: (i) Assignment and Assumption Agreement by and among Ryan S. Curran, Seymour Home, LLC, and the City of Newark; (ii) Assignment of Mortgage from Ryan S. Curran to Seymour Home, LLC; (iii) Acknowledgment of Affordability Requirements executed by Seymour Home, LLC in favor of the City of Newark; and (iv) any related documents or instruments executed in connection therewith.
2. The Municipal Council hereby authorizes and approves the City’s consent to the transfer of the Property located at 129-131 Seymour Avenue, Newark, New Jersey (Block 3024, Lot 85), and the assignment and assumption of Loan Documents in accordance with the terms of the Transfer Documents.
3. Seymour Home, LLC shall remain subject to all affordability controls, restrictive covenants, and obligations contained in the Loan Documents and applicable federal, state, and local requirements.
4. The actions previously taken by the Mayor, the Deputy Mayor/Director of Economic and Housing Development, and any other City officials or representatives in connection with the execution, delivery, and implementation of the Transfer Documents are hereby ratified, confirm, and approved in all respects.
5. The Resolution shall take effect immediately upon adoption and publication in accordance with applicable law.
STATEMENT
Resolution authorizing the execution of an Assignment and Assumption Agreement, Assignment of Mortgage, Acknowledgment of Affordability Requirements, and any related transfer documents in connection with the transfer of property located at 129-131 Seymour Avenue, Newark, New Jersey (Block 3024, Lot 85), and approving the City’s consent to the assignment and assumption of certain Neighborhood Stabilization Program loan and affordability obligations associated therewith.