Item Number: 19
City Council / Board of Directors
Written Communications
Meeting of: September 15, 2026
Submitted By:
Tony Camargo, Deputy City Manager
Subject:
Rejection of the Only Bid Received for MS26-086 Northgate Village Rehabilitation Project Recommendation:
That the Honorable City Council:
(1) Reject the only bid received for the MS26-086 Northgate Village Rehabilitation Project; and
(2) Authorize staff to reevaluate the scope, incorporate all applicable federal requirements, including the Build America, Buy America Act (BABA), and re-advertise the project for competitive bidding at the earliest practicable date.
Fiscal Impact:
There is no fiscal impact associated with rejecting the only bid received for the MS26-086 Northgate Village Rehabilitation Project, as no contract will be awarded at this time and therefore no expenditures will be incurred.
Strategic Plan Goal:
Goal C. Community and Economic Development and Goal D. Reduce Homelessness by supporting the economic vitality and preservation of the Northgate Village Apartment complex as an affordable housing complex for the community and all of its members, preserving existing affordable housing, preventing displacement of current residents, and investing in necessary infrastructure and capital improvements.
Background:
In 1997, the City of Victorville became a Housing and Urban Development (HUD) Entitlement City, enabling it to receive Community Development Block Grant (CDBG) funds directly from the U.S. Department of Housing and Urban Development. 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. 4 9
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To further expand local housing program opportunities, the City and 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 a portion of HOME funds be set aside for projects developed, owned, or sponsored by a Community Housing Development Organization (CHDO).
Discussion:
As part of the Fiscal Year 2024-2025 HOME funding application process, National Community Renaissance of California, also known as National CORE, submitted an application for rehabilitation of Northgate Village Apartments, located at 17251 Dante Street, Victorville, CA 92392 (Attachment A). National CORE acquired the property from the City in 2005 and currently owns and operates the 18-building, 140-unit affordable housing complex.
The property has significant capital improvement needs due to age and normal wear and tear. National CORE identified several priority improvements, including roof replacement, water heater replacement, balcony repairs, exterior painting and wood rot repairs, and replacement of sliding glass doors. Based on the available CHDO funding, staff worked with the City's Purchasing staff to competitively bid a rehabilitation project focused on the most immediate needs.
The Request for Bids was advertised through the OpenGov Procurement Portal on March 18, 2026. When the solicitation closed on May 12, 2026, only one responsive bid was received from KNC Construction, Inc., in the amount of $767,435, which exceeded the available funding at the time of the bid.
Following the bid process, staff, with assistance from legal counsel, also determined that certain applicable federal requirements, including requirements under the Build America, Buy America Act (BABA), were not included in the bid documents. Because the project is proposed to be funded with federal HOME funds, the solicitation should be revised to incorporate all applicable federal requirements before the project is rebid.
Most importantly, the project would preserve 140 existing affordable housing units serving Victorville residents, helping prevent displacement and housing instability. Without the City's assistance, residents could be at greater risk of displacement and, for vulnerable households, homelessness. Rebidding provides an opportunity to successfully utilize CHDO funds to preserve affordable housing in the community Staff therefore recommend rejecting the bid and reevaluating the project scope and bid documents prior to readvertising. This approach will provide an opportunity to obtain more competitive pricing, ensure compliance with applicable federal requirements, and maximize the City's ability to utilize its available CHDO funds.
Prepared By:
Lesyenia Marin-Pineda, Housing Manager
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Attachments: A. Map of Property
B. Bid Proposal