REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 23, 2026
FROM
ROB GILLIAM, Acting Director, Community Development and Housing Department
SUBJECT
Title
Sale of Sunrise Vista Apartments in Barstow, Repayment of the HOME Investment Partnerships and Neighborhood Stabilization Program Loans, and Assignment of Agreements
End
RECOMMENDATION(S)
Recommendation
1. Approve the sale of the Sunrise Vista Apartments located in Barstow, from the Housing Authority of the County of San Bernardino to Sunrise Vista L.P., a California Limited Partnership.
2. Approve the Assignment of Agreements for the transfer of HOME Investment Partnerships Agreement No. 10-160 and Neighborhood Stabilization Program Agreement No. 10-158, from the Housing Authority of the County of San Bernardino to Sunrise Vista L.P., a California Limited Partnership.
3. Authorize the Chief Executive Officer, Assistant Executive Officer, Deputy Executive Officer, or Director of the Community Development and Housing Department to execute any non-substantive amendments to the Assignment of Agreements, and approve and execute estoppel certificates, demand letters, escrow instructions, reconveyances, and any other ancillary documents necessary for the sale of the Sunrise Vista Apartments, subject to County Counsel review.
4. Direct the Director of the Community Development and Housing Department to transmit any non-substantive amendments to the Assignment of Agreements for the sale of Sunrise Vista Apartments to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Rob Gilliam, Acting Director, 382-3983)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote and Fulfill the Countywide Vision.
Create, Maintain and Grow Employment Opportunities and Economic Value in the County.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). All costs associated with the sale and transfer of the Sunrise Vista Apartments (Project) will be paid by Sunrise Vista L.P., a California Limited Partnership (Buyer). The Buyer also will repay outstanding loans issued by San Bernardino County (County) to the Housing Authority of the County of San Bernardino (HACSB) in 2010 through the HOME Investment Partnerships Program (HOME) and the Neighborhood Stabilization Program (NSP). The loans have a combined balance of approximately $3,372,288, consisting of $1,637,098 in HOME funds and $1,735,190 in NSP funds. If necessary, the Community Development and Housing Department (CDH) will return to the Board of Supervisors (Board) at a later date to request budget adjustments to request authorization to commit and/or allocate funds to a future eligible project.
BACKGROUND INFORMATION
On March 23, 2010 (Item No. 30), the Board approved HOME Agreement No. 10-160 for $1,375,000 and NSP Agreement No. 10-158 for $4,825,000 with HACSB for the acquisition and rehabilitation of two multifamily properties in the City of Barstow: Sunrise Vista Apartments, formerly known as Scenic View Apartments, consisting of 156 units, and Virginia Village Apartments, consisting of 144 units, for a total of 300 units. This item pertains solely to the Project, located at 755 E. Virginia Way in the City of Barstow (Assessor’s Parcel Numbers 0183-221-01 and 0183-221-02).
To secure the County’s investment and ensure compliance with federal requirements, separate deeds of trust were recorded against the Project.
The HOME loan is secured by a deed of trust recorded on May 28, 2010 (the “HOME DOT”). It includes a 20-year minimum affordability covenant restricting 39 units: eight designated for very low-income households with incomes not exceeding 50% of Area Median Income (AMI) and 31 reserved for low-income households with incomes not exceeding 60% of AMI, in accordance with 24 CFR §92.252 and §92.504(a).
The NSP loan is secured by a deed of trust recorded on May 28, 2010 (the “NSP DOT”). The NSP DOT includes a 20-year minimum affordability covenant restricting 156 units for occupancy by moderate- and middle-income households with incomes up to 120% of AMI, consistent with applicable HUD NSP guidance, including 24 CFR Part 570 and 24 CFR Part 92.
The Project has served County residents since approximately 2011 following rehabilitation. In February 2025, HACSB formally notified CDH of its intent to pursue a potential sale of the Project as part of a broader strategic effort to better balance its housing portfolio, which currently includes more than 500 units in Barstow. HACSB approved a one-year extension to the Project-Based Voucher Housing Assistance Payment Contract on April 14, 2026 through March 14, 2028. The use of the Project-Based subsidy will be transferred to the buyer as part of the transaction. This extension provides continuity of rental assistance for residents and ensures the Project’s short-term financial stability.
HACSB requested the County’s consent to repayment of the HOME and NSP loans in conjunction with this sale. Sale proceeds will be reinvested by HACSB in the acquisition of properties within the County, particularly in the West Valley, where higher housing costs have limited access to affordable housing for working families.
HACSB further noted that loan satisfaction would strengthen the marketability and overall viability of the Project and that the affordability covenants recorded in the deeds of trust would remain in full effect for the 20-year minimum durations. This approach reflects HACSB’s commitment to expanding workforce housing in high-cost, high-opportunity communities and advances more equitable access to affordable housing countywide.
All loan repayments will be returned to the County, reported as program income and reinvested in future affordable housing developments.
The Assignment of Agreements is required to formally transfer all rights, responsibilities, and obligations under the HOME and NSP agreements from HACSB to the Buyer. As a condition of the County's consent to the sale, and pursuant to HOME regulations (24 CFR §92.252 and §92.504(a)), the Buyer must assume all existing regulatory requirements, including affordability restrictions, reporting obligations, and compliance with applicable federal regulations. The County will retain its enforcement authority and monitoring responsibilities, ensuring no interruption in compliance or oversight resulting from the change in ownership. These regulatory requirements run with the land and remain binding regardless of loan repayment or transfer of ownership. Accordingly, the affordability covenants recorded against the Project will remain in full force and effect through May 23, 2030. Upon receipt of the repayment of the HOME and NSP Loans, the County’s Estoppel Certificate will be released from escrow to confirm that the repayment obligations have been satisfied while affirming that all affordability covenants remain in effect. The Estoppel Certificate will also outline the conditions for the future release of the HOME DOT and NSP DOT, including but not limited to the Buyer's continued compliance with applicable affordable housing preservation laws. The assignment does not create new obligations but instead transfers existing obligations to the Buyer as the successor in interest to the property.
On April 27, 2010 (Item No. 38), the Board approved Amendment No. 1 to Agreement No. 10-158, clarifying NSP-eligible foreclosed properties.
On June 5, 2012 (Item No. 35), the Board approved Amendment No. 2 to Agreement No. 10-158, allowing HACSB to prepay $1,555,000 of the original NSP loan principal and revising the NSP restricted units to 117 units.
Approval of this item supports the County’s commitment to preserving affordable housing while ensuring full compliance with federal HOME and NSP requirements. The transaction provides for repayment of public funds, continued enforcement of long-term affordability covenants, compliance with housing preservation laws, and uninterrupted regulatory oversight by the County. This action protects the County’s investment, mitigates financial risk, and allows for reinvestment of funds into additional affordable housing opportunities that benefit County residents.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on May 29, 2026; and County Finance and Administration (Paul Garcia, Administrative Analyst, 386-8392) on June 4, 2026.