Item Number: 5
City Council / Board of Directors
Consent Calendar
Meeting of: April 21, 2026
Submitted By:
Alex Jauregui, City Planner
Subject:
Substitution of Trustee, Deed of Reconveyance and Cancellation of CC&Rs for Residential Rehabilitation Program case number 21-12-02 (16812 Melba Avenue, Victorville, CA 92394); as well as acceptance and reallocation of associated Program Income funds
Recommendation:
That City Council take the following actions regarding Residential Rehabilitation Program Case No. 21-12-02:
(1) Approve the Substitution of Trustee and Deed of Reconveyance; (2) Confirm the required Cancellation of the original Covenants, Conditions and Restrictions (CC&Rs);
(3) Authorize the execution of the Substitution of Trustee and Deed of Reconveyance as well as the Cancellation of the original CC&Rs by the Deputy City Manager; (4) Accept the payoff of the loan receivable to the Residential Rehabilitation Program Income Account; and
(5) Adopt Resolution No. 26-025, amending the annual budget for fiscal year 2025- 2026 reallocating the subject $15,997.05 Residential Rehabilitation Program – Program Income funds to the Residential Rehabilitation Program.
Fiscal Impact:
Approval of the item will allow for the acceptance and reallocation of $15,997.05 in program income from the Residential Rehabilitation Program (RRP), which will be used to benefit another participant in the RRP in accordance with the City’s adopted Annual Action Plan. This proposal would cause the following revenue and expenditure budget accounts to be updated to reflect the acceptance and reallocation of the subject income. 4 6
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Account Number Adjustment Amount
2853025-47520-20733
Residential Rehabilitation Program Income (Revenue) $15,997.05 2853025-52300-20733
Residential Rehabilitation Program Income (Expenditure) $15,997.05 Per Department of Housing and Urban Development (HUD) rules, program income must be spent before yearly Community Development Block Grant (CDBG) allocations can be spent. Therefore, this reallocation request of $15,997.05 in RRP Program Income into the current Fiscal Year 2025-2026 budget will benefit additional RRP participants, as outlined in the 2025-2026 Annual Action Plan. The RRP maintains a waiting list of over 130 residents, which would utilize over a year’s worth of future funding dedicated to this program. Due to the popularity of the program and an expanding wait list, approval of this request to reallocate the subject program income will allow the City to assist a greater number of residents in accordance with the adopted 2022-2026 Consolidated Plan and the 2025-2026 Annual Action Plan.
Strategic Plan Goal:
Approval of this acceptance and reallocation of Residential Rehabilitation Program (RRP) program income will enable the City to further fulfill the following Goals outlined in the 2024-2026 Strategic Plan:
Goal A (Financial Sustainability) – Reallocating program income from a completed RRP project provides funds to assist additional residents of the City of Victorville while utilizing a revenue opportunity that does not impact the General Fund. Goal C (Community and Economic Development) – Utilizing available funds for ongoing projects such as the RRP help maintain the City’s existing housing stock, thereby supporting the preservation of the community.
Background:
The Residential Rehabilitation Program (RRP) is designed to promote local beautification, increase property values, boost curb appeal, and correct any Health and Safety Code, Building Code or Victorville Municipal Code violations. The RRP is provided through Community Development Block Grant (CDBG) funding as a deferred payment loan at 3% interest in amounts ranging from $1,000 to $20,000. Loans provided are secured against the property for the term of ten (10) years. The loan can be forgiven should participants remain as the property owner and occupy the dwelling as their principal residence for no less than the program’s 10-year term.
Discussion:
On December 2, 2021, the Residential Rehabilitation Program (RRP) Participant’s (the “Participant’s”) received a loan in the amount of $13,667 to aid in the rehabilitation of the home at 16812 Melba Avenue, Victorville, CA 92394. Rehabilitation included a new roof and new windows. All items were completed using an RRP loan. Subsequently, the Participant requested that the City reconvey the Deed of Trust that secured the RRP loan.
This request was made due to the terms of the Promissory Note, Deed of Trust, and 4 6
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Covenants, Conditions and Restrictions (CC&Rs) being satisfied with the repayment of the subject RRP loan funds and associated simple interest on March 25, 2026.
According to the Promissory Note, the repayment of the RRP loan required the Participant to pay an amount of the principal loan of $13,955, plus 3% simple interest, calculated at $410.01 annually ([$2,050.05 simple interest – 5 Years] + [$280 service fee/activity delivery costs] = $2,330.05). The Participant has paid the principal and simple interest balance totaling $15,997.05.
Since the Participant has satisfied the terms of the Promissory Note, Deed of Trust, and CC&Rs (e.g. occupancy requirements, maintenance standards, affordability covenants, etc.), the Participant has requested a release of the encumbrance of the CC&Rs per “Article V” of the original CC&Rs, which also necessitates a Substitution of Trustee and Deed of Reconveyance.
Prepared By:
Lisa Perea, Housing Technician
Attachments: A. Resolution No. 26-025
B. Substitution of Trustee and Deed of Reconveyance
C. Cancellation and Release of CC&Rs
D. Original Promissory Note, Deed of Trust, CC&Rs and Notice of Affordability Restrictions