Item Number: 12
City Council / Board of Directors
Consent Calendar
Meeting of: November 4, 2025
Submitted By:
Tony Camargo, Deputy City Manager
Subject:
Release and Termination of Agreement Containing HOME Program Requirements, Covenants, Conditions and Restrictions (“Covenant Agreement”) Recommendation:
That the Honorable City Council take the following actions regarding the Release and Termination of Agreement Containing HOME Program Requirements, Covenants, Conditions and Restrictions for National CORE Northgate Village Apartments:
(1) Approve the Release and Termination of Agreement Containing HOME Program Requirements, Covenants, Conditions and Restrictions; and (2) Authorize the Deputy City Manager to execute the Release and Termination of Agreement Containing HOME Program Requirements, Covenants, Conditions and Restrictions.
Fiscal Impact:
There is no fiscal impact associated with this item.
Strategic Plan Goal:
This item supports Strategic Plan Goal C. Community and Economic Development by supporting the economic vitality and long-term vitality of affordable housing opportunities for low-income families within the City.
Background:
In 1997, the City of Victorville became a HUD Entitlement City, enabling it to receive Community Development Block Grant (“CDBG”) funds directly from the U.S. Department of Housing and Urban Development (“HUD”). Prior to this designation, the City received funding through the County of San Bernardino, which directed funds toward countywide projects rather than City-specific needs.
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To further expand local housing program opportunities, the City and the Town of Apple Valley formed the Apple Valley/Victorville HOME Consortium in 2003, qualifying both jurisdictions to receive HOME Investment Partnerships Program (“HOME”) funds directly from HUD. HUD regulations require that at least 15% of HOME funds be set aside for projects developed, owned, or sponsored by a Community Housing Development Organization (“CHDO”).
Discussion:
On July 21, 2015, the City Council approved Resolution No. 15-056, authorizing a $500,000 CHDO Reservation and Commitment of HOME Program Funds Agreement between the City (representing the Consortium) and National Community Renaissance of California (National CORE) for a CHDO-eligible project at Northgate Village Apartments (the “Project”), a 138-unit affordable housing complex. The project involved the rehabilitation of 18 buildings serving very low- and low-income households through roof replacement improvements. Please see Attachment A.
Following Council approval, the City and National CORE executed the Amended and Restated Reservation and Commitment Agreement to correct the affordability period, revising it from 30 years to a five-year term, as the project involved rehabilitation rather than new construction. This ensured compliance with HUD requirements and clarified the terms governing the use of HOME funds.
Subsequently, due to higher construction costs and the discovery of asbestos in two buildings, the initial $500,000 commitment proved insufficient. Upon review of available HOME funds, staff recommended increasing the City’s contribution to $800,000, allowing rehabilitation work to proceed on 13 of the 18 buildings, including the two impacted by asbestos. These 13 buildings were identified as requiring the most critical roof repairs and reserved 104 units for very low- and low-income households. The City Council approved Resolution No. 16-041 approving Amendment 1 to the First Amended and Restated Agreement to the CHDO Reservation and Commitment of HOME Program Funds Agreement plus the additional appropriation increasing the commitment. Please see Attachment B.
The affordability requirements were secured through an Agreement Containing HOME Program Requirements (“Affordability Covenants”), recorded for a five-year period.
On September 5, 2025, National CORE requested the removal of the Affordability Covenants, as the five-year term expired on October 4, 2022. The rehabilitation project has been completed, and all affordability and compliance obligations have been satisfied.
It was also discovered that the covenants were inadvertently recorded three times. Please see Attachment C.
With assistance from the City Attorney’s Office, staff has prepared the attached Release and Termination of Agreement Containing HOME Program Requirements, Covenants, Conditions, and Restrictions (Attachment D), confirming completion of all requirements. 4 4
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Upon approval and recordation, this document will remove the following recorded instruments from the property:
• Instrument No. 2017-0412590
• Instrument No. 2017-0412591
• Instrument No. 2017-0412592
Staff recommends that the City Council approve the Release and Termination of Agreement Containing HOME Program Requirements, Covenants, Conditions, and Restrictions for National CORE Northgate Village Apartments, and authorize the Deputy City Manager to execute the document.
Staff remains available for any questions.
Prepared By:
Lesyenia Marin-Pineda, Housing Manager
Attachments: A. July 21, 2015, Staff Report and Resolution No. 15-056 B. June 7, 2016, Staff Report and Resolution No. 16-041 C. Agreement Containing HOME Program Requirements,
Covenants, Conditions and Restrictions (Instrument No. 2014- 0412590, No. 2017-0412591 and 2017-0412592)
D. Release and Termination of Agreement Containing HOME Program Requirements, Covenants, Conditions, and Restrictions