Item Number: 6
City Council / Board of Directors
Consent Calendar
Meeting of: May 5, 2026
Submitted By:
Alex Jauregui, City Planner
Subject:
Substitution of Trustee and Deed of Reconveyance for Owner Occupied Rehabilitation Program case number 0478-211-13 (15526 Hesperia Rd., Victorville, CA 92392); as well as acceptance and reallocation of associated Program Income funds Recommendation:
That City Council take the following actions regarding Owner Occupied Rehabilitation Program Case No. 0478-211-13:
(1) Approve the Substitution of Trustee and Deed of Reconveyance (original amount); (2) Approve the Substitution of Trustee and Deed of Reconveyance (corrected amount);
(3) Authorize the execution of the Substitution of Trustee and Deed of Reconveyance (original amount) by the Deputy City Manager;
(4) Authorize the execution of the Substitution of Trustee and Deed of Reconveyance (corrected amount) by the Deputy City Manager;
(5) Accept the payoff of the loan receivable to the CalHome Program Income Account; and
(6) Adopt Resolution No. 26-003, amending the annual budget for fiscal year 2025- 2026, reallocating the subject $35,854.50 CalHome Program Income funds to the CalHome Mortgage Assistance Program.
Fiscal Impact:
Approval of this item will allow for the acceptance and reallocation of $35,854.50 in CalHome Program Income, which will be used to benefit a participant in the City’s Mortgage Assistance Program (MAP). CalHome funding guidelines stipulate that program income can only be reallocated to a program or project originally funded by the CalHome grant. Since the Owner Occupied Rehabilitation (OOR) Program is no longer offered by the City of Victorville, staff is requesting approval of the allocation of the $35,854.50 4 6
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CalHome Program Income into the current Fiscal Year 2025-2026 MAP budget to benefit additional applicants as this program remains active.
Account Adjustment Amount
2717501D-47520-20580
CalHome Program Income (Revenue)
$35,854.50
2717501D-52300-20580
CalHome Program Income (Expenditure)
$35,854.50
This reallocation request of $35,854.50 in CalHome Program Income into the current Fiscal Year 2025-2026 budget will benefit MAP participants, as outlined in the 2025-2026 Annual Action Plan. The MAP program has been recently updated to reflect current market conditions and is available to assist those seeking to purchase their first home in the City of Victorville.
Strategic Plan Goal:
Approval of this acceptance and reallocation of CalHome 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 Owner Occupied Rehabilitation 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 MAP program helps maintain the City’s existing housing stock, thereby supporting the preservation of the community.
Background:
From 2004 to 2012, the City was awarded CalHome grant funding from the State of California to help fund the Mortgage Assistance Program (MAP) and the Owner Occupied Rehabilitation (OOR) Program. Currently, the City of Victorville utilizes all CalHome Program Income to fund the Mortgage Assistance Program (MAP), since the City no longer receives CalHome grant funding and the OOR Program has been replaced with similar rehabilitation programs funded by CDBG/HOME allocations (i.e. Residential Rehabilitation Program and Senior Home Repair Program). In accordance with California Department of Housing and Community Development guidelines, loan repayment funds received by the City of Victorville that originated from CalHome funded programs are required to be reallocated to existing and active CalHome programs/projects. Because the OOR Program is no longer offered by the City of Victorville, a total of $463,465 of CalHome program income is currently available to fund future MAP loans.
The purpose of a MAP loan is to aid very-low, low, and moderate-income home buyers purchasing a home within the City of Victorville. The MAP Program makes available deferred payment loans up to a maximum of $55,000. The MAP Program is designed to provide income eligible households with the financial assistance necessary to secure the 4 6
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purchase of a single-family home by bridging the gap between purchase price and affordability.
Discussion:
On May 14, 2007, the program participants (the “Participants”) received an Owner Occupied Rehabilitation (OOR) loan in the amount of $66,865 to aid in the rehabilitation of the home located at 15526 Hesperia Rd., Victorville, CA, 92392. After a detailed reconciliation of this project at the property owners request, the amount of this loan was corrected to reflect the actual amount utilized, given that not all originally planned rehabilitation items were completed or funded. The corrected OOR loan amount was recorded on July 10, 2024, in the amount of $35,574.50. The Participant has now requested the City reconvey the Deed of Trust that secured the OOR loan. This request has been made due to the terms of the Promissory Note and Deed of Trust being satisfied with the repayment of OOR loan funds and the associated fees on April 14, 2026.
According to the Promissory Note, the repayment of the OOR loan required the Participant to pay the principal loan of $35,574.50 with 0% simple interest. The Participant has paid off the principal ($35,574.50) and service fee ($280.00) balance totaling $35,854.50.
Since the Participant has satisfied the terms of the Promissory Note and Deed of Trust, staff is requesting your approval in executing the recording of the Substitution of Trustee and Deed of Reconveyance for the original loan of $66,865 and the corrected loan of $35,854.50 and amending the Fiscal Year 2025-2026 budget.
Staff remains available for any questions or comments you may have.
Prepared By:
Lisa Perea, Housing Technician
Attachments: A. Resolution No. 26-003
B. Substitution of Trustee and Deed of Reconveyance (original amount)
C. Substitution of Trustee and Deed of Reconveyance (corrected amount)
D. Original and Corrected Promissory Note and Deed of Trust