Item Number: 13
City Council / Board of Directors
Consent Calendar
Meeting of: September 15, 2026
Submitted By:
Tony Camargo, Deputy City Manager
Subject:
Approval of a Substitution of Trustee and Full Reconveyance, and Cancellation of Declaration of Covenants, Conditions and Restrictions, and Release of Notice of Affordability Restrictions on Transfer of Property for Mortgage Assistance Program Case Number 10-11-07 (15161 Stable Lane, Victorville, CA 92394) and Adoption of Resolution No. 26-085
Recommendation:
That the Honorable City Council take the following actions regarding Mortgage Assistance Program Case No. 10-11-07:
(1) Approve the Substitution of Trustee and Full Reconveyance; (2) Confirm and approve the Cancellation of Declaration of Covenants, Conditions and Restrictions (CC&Rs) and Release of Notice of Affordability Restrictions on Transfer of Property;
(3) Authorize the Deputy City Manager to execute the Substitution of Trustee and Full Reconveyance and the Cancellation of Declaration of Covenants, Conditions and Restrictions and Release of Notice of Affordability Restrictions on Transfer of Property; (4) Accept the loan payoff in the amount of $25,199.39 revenue; and (5) Adopt Resolution No. 26-085, amending the Fiscal Year 2026-2027 Annual Budget to recognize $22,679.45 in NSP1 Program Income and $2,519.94 in NSP1 Administration revenue.
Fiscal Impact:
Approval of the recommended actions will authorize the acceptance of $25,199.39 in NSP1 Program Income as follows:
Account Adjustment
2833028E-47520-20510 – NSP1 Program Income ($22,679.45) 2803028-47520-20509 – NSP1 Administrative Revenue ($2,519.94) Total Adjustment ($25,199.39)
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Strategic Plan Goal:
This item aligns with Goal A. Financial Sustainability by recognizing program income generated through NSP1, and Goal C. Community and Economic Development by supporting the preservation and improvement of the City’s existing housing stock through continued funding for affordable housing activities that improve neighborhood conditions and quality of life.
Background:
The Neighborhood Stabilization Program (NSP) was established pursuant to the Housing and Economic Recovery Act (HERA) of 2008 which appropriated emergency assistance funds to redevelop abandoned and foreclosed homes and residential properties. NSP activities follow the Community Development Block Grant (CDBG) Annual Action Plan process for identifying eligible activities and establishing proposed budgets.
On February 27, 2009, the City received $5,311,363 in NSP1 funds. Among the various activities funded through NSP1, the City allocated a portion of the funds to its Mortgage Assistance Program (MAP), which aided through the acquisition, rehabilitation and resale of foreclosed and abandoned properties to income-eligible first-time homebuyers. The former Redevelopment Agency (RDA) Board authorized staff to provide down payment assistance to first-time homebuyers with very low-, low- and moderate-income households. On December 21, 2010, the former RDA issued Tami M. McFarland (Participant) a MAP loan in the amount of $9,045.00 to assist with the purchase of the property located at 15161 Stable Lane, Victorville, CA 92394 (Property).
The MAP loan is evidence by the attached Deed of Trust, secured by a Promissory Note, Notice of Affordability Restrictions on Transfer of Property, and Declaration of Covenants, Conditions and Restrictions (CC&Rs), all of which were recorded against the Property on December 21, 2010.
Discussion:
The Participant has requested that the City reconvey the Deed of Trust securing the MAP loan issued on December 21, 2010. Pursuant to Section 3 of the Promissory Note, repayment of the MAP loan required the Participant to repay the outstanding principal balance of $8,858.76, which reflects a credit of $186.24 received by the City as an escrow refund when the Participant initially acquired the Property. In addition, the Participant was required to pay the City a portion of the accumulated equity, referred to as the “Equity Share,” in the amount of $16,340.63.
The Equity Share was calculated by multiplying the accumulated equity by the Equity Share Percentage. The Equity Share Percentage represents the percentage of the MAP loan amount relative to the original purchase price of the Property. 4 9
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On August 13, 2026, the Participant paid the City $25,199.39 in full satisfaction of the MAP loan. Because the Participant has satisfied the terms and conditions of the Promissory Note, Deed of Trust, and CC&Rs, staff is requesting approval to execute and record the Substitution of Trustee and Full Reconveyance and the Cancellation of Declaration of Covenants, Conditions and Restrictions, and Release of Notice of Affordability Restrictions on Transfer of Property, authorize the Deputy City Manager to execute the applicable documents, accept the $25,199.39 MAP loan payoff and recognize the resulting NSP1 Program Income by adopting Resolution No. 26-085. As staff continues to reconcile and close out the NSP1 grant, the attached resolution amends the Fiscal Year 2026-2027 Annual Budget to recognize the $25,199.39 in revenue generated from the MAP loan payoff. Of this amount, $2,519.94 will be recognized as NSP1 Administration revenue and $22,679.45 as NSP1 Program Income. The resolution does not appropriate expenditures for the program income at this time. Staff will evaluate eligible uses of the funds and return with a future budget amendment or other appropriate action once the best use of the funds has been determined.
Staff remains available for any questions or comments you might have.
Prepared By:
Lesyenia Marin-Pineda, Housing Manager
Attachments: A. Resolution No. 26-085
B. Substitution of Trustee and Full Reconveyance
C. Cancellation of Declaration of Covenants, Conditions and Restrictions, and Release of Notice of Affordability Restrictions on Transfer of Property
D. Original Promissory Note, Deed of Trust, CC&Rs and Notice of Affordability Restrictions