Item Number: 3
City Council / Board of Directors
Consent Calendar
Meeting of: October 20, 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 Residential Rehabilitation Program Case Number 24-10-30 (15717 La Cubre Drive, Victorville, CA 92394), and Adoption of Resolution No. 26-090 Income Funds
Recommendation:
That the Honorable City Council take the following actions regarding Residential Rehabilitation Program Case No. 24-10-30:
(1) Approve the Substitution of Trustee and Full Reconveyance; (2) Confirm and approve the Cancellation of Declaration of Covenants, Conditions and Restrictions 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 $15,784.67 revenue; and (5) Adopt Resolution No. 26-090, amending the Fiscal Year 2026-2027 Annual Budget to recognize $15,784.67 in Residential Rehabilitation Program Income (revenue) and appropriate $15,784.67 to the Residential Rehabilitation Program (expenditure).
Fiscal Impact:
Approval of the recommended actions will authorize the acceptance and allocation of $15,784.67 in Residential Rehabilitation Program (RRP) Program Income as follows:
Account Adjustment
2853025-47520-20733 - Residential Rehabilitation Program (Revenue) $15,784.67
2853025-52300-20733 - Residential Rehabilitation Program (Expenditure) $15,784.67
Strategic Plan Goal:
This item aligns with Goal A. Financial Sustainability by recognizing program income generated through RRP and utilizing said funds to provide additional housing assistance without impacting the General Fund, 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 RRP assists eligible homeowners by providing deferred-payment loans funded through the Community Development Block Grant (CDBG) Program. The program is intended to preserve the City’s housing stock by correcting health and safety deficiencies, addressing building code violations, improving property conditions and enhancing neighborhood appearance.
Eligible homeowners may receive loans ranging from $1,000 to $20,000 at a simple interest rate of three percent (3%). Loans are secured by a Promissory Note, Deed of Trust, and Covenants, Conditions and Restrictions (CC&Rs). If the homeowner elects to repay the loan before the end of the affordability period, the City may reconvey the Deed of Trust and release the CC&Rs upon satisfaction of the loan obligations in accordance with the loan documents.
Discussion:
On October 30, 2024, the Participant received a RRP loan in the amount of $14,608.17 to rehabilitate the residence located at 15717 La Cubre Drive, Victorville, CA 92394.
Improvements completed through the program included painting the exterior of the home, repairing the front yard brick wall, replacing the wood fencing, and installing a new front screen door and a new front entry door.
On September 14, 2026, the Participant elected to repay the loan in full prior to the expiration of the loan term. Pursuant to the terms of the Promissory Note, the payoff consisted of the original principal balance of $14,608.17, accrued simple interest totaling $876.50, and a $300 service fee/activity delivery cost, for a total payoff amount of $15,784.67.
In accordance with U.S. Department of Housing and Urban Development (HUD) regulations, program income must generally be expended before annual CDBG entitlement funds are drawn. Reallocating these program income funds into the current Fiscal Year 2026-2027 budget will enable the City to continue providing rehabilitation assistance to eligible residents. The RRP currently maintains a waiting list of more than 115 households and these additional funds will help address that demand while supporting the activities identified in the City’s Annual Action Plan.
As the Participant has fully satisfied the financial obligations of the loan, 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, authorization for the Deputy City Manager to execute the applicable documents, acceptance of the $15,784.67 RRP loan payoff, and adoption of Resolution No. 26-090 to amend the Fiscal Year 2026-2027 Annual Budget to recognize $15,784.67 in RRP income (revenue) and appropriate $15,784.67 to the RRP (expenditure).
Staff remains available for any questions Council may have.
Prepared By:
Mica Schuler, Economic Development Administrator
Attachments: A. Resolution No. 26-090
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 on Transfer of Property