Item Number: 2
City Council / Board of Directors
Consent Calendar
Meeting of: January 16, 2024
Submitted By:
Keith C. Metzler, City Manager
Subject:
Substitution of Trustee and Deed of Reconveyance for Map Case No. 09-01-04 - Alcala Recommendation:
That Your Honorable City Council:
(1) Approve the Substitution of Trustee and Deed of Reconveyance for MAP Case No. 09-01-04;
(2) Authorize the execution thereof by the City Manager; (3) Accept the payoff of the loan receivable; and
(4) Adopt Resolution No. CHAS 24-001, amending the annual budget for Fiscal Year 2023-2024
Fiscal Impact:
Approval of this item will result in an additional revenue appropriation of $47,093.72 as follows:
Account No./Description Amended Budget
205-18121-89023 (CHAS NR Map) $10,359.12 (Principal)
2053080-45110-89023 (CHAS Interest Income) $36,734.60 (Interest) Revenue of the former Redevelopment Agency’s (RDA) housing loans now belong to the City as Housing Assets Successor (CHAS) and must be spent on affordable housing related items.
Strategic Plan Goal:
This item aligns with Goal A. Financial Sustainability and Goal C. Community and Economic Development as the additional appropriation results in an increase of revenue and supports the increase and preservation of affordable housing bolstering economic growth.
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Background:
The former Redevelopment Agency (RDA) Board authorized staff to provide down payment assistance to first-time homebuyers with very low, low and moderate incomes.
On March 30, 2009, the RDA issued Steven M. Alcala (herein referred to as the Participant) a Mortgage Assistance Program (MAP) Loan in the amount of $10,739. The MAP Loan is evidenced by the attached Deed of Trust and Promissory Note recorded against the property on May 7, 2009. Please refer to page two (2), paragraph one (1) of the Deed of Trust, which references the $10,739 assistance that was provided to the Participant.
To date, five (5) former RDA MAP loans are left outstanding.
Discussion:
The City as Housing Assets Successor (CHAS) of the Victorville Redevelopment Agency has been requested by the Participant to reconvey the Deed of Trust that secured the MAP Loan received on March 30, 2009. According to Section 3 of the Promissory Note, the repayment of the MAP Loan required the Participant to pay the principal loan of $10,359.12 (this amount reflects a credit in the amount of $379.88 received by the City as an escrow refund when Mr. Alcala initially acquired the property) plus a portion of equity, known as the “Equity Share”, calculated at $36,734.60 to satisfy the term and reconvey the Deed of Trust that secured the MAP Loan. The Equity Share was calculated as the product of the Accumulated Equity multiplied by the Equity Share Percentage. The Equity Share Percentage is the percentage of the MAP Loan relative to the Property Purchase Price. On December 12, 2023, the Participant paid off the principal and equity share balance totaling $47,093.72.
Since the Participant has satisfied the terms of the Promissory Note and the Deed of Trust, staff is requesting your approval in executing the recording of the Substitution of Trustee and Deed of Reconveyance, authorize the execution thereof by the City Manager, accept the payoff of the loan receivable, and adoption of Resolution No. CHAS 24-001.
Staff remains available for any questions or comments you might have.
Attachments: A. Substitution of Trustee and Deed of Reconveyance B. Resolution No. CHAS 24-001
C. Original Deed of Trust and Promissory Note