2015-12-09 VHC Agenda PacketCalifornia Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda
items, including attachments, which are presented to the Vernon Housing Commission in open session are
available for public inspection. They may be inspected during regular business hours in the Office of the City
Clerk at Vernon City Hall, 4305 Santa Fe Avenue, Vernon, California 90058, no prior appointment necessary,
and on the City’s website at www.cityofvernon.org.
Americans with Disabilities Act (“ADA”): In compliance with the ADA, if you need special assistance to
participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811. Notification of at least
24 hours prior to the meeting or time when services are needed will assist the City staff in assuring that
reasonable arrangements can be made to provide accessibility to the meeting or service.
Agenda
Regular Meeting of the Vernon Housing Commission
Wednesday, December 9, 2015, 6:00 p.m.
Council Chamber
4305 Santa Fe Avenue
Vernon, CA 90058
Michael Hughes, Chairperson
Melissa Ybarra, Vice Chairperson
Hector Garcia, Commissioner
John Kriste, Commissioner
Steven Froberg, Commissioner
Kyle Cooper, Commissioner
Steven Florman, Commissioner
CALL TO ORDER & FLAG SALUTE
CHANGES TO THE AGENDA
PUBLIC COMMENT - At this time the public is encouraged to address the Vernon Housing Commission on
any matter that is within the subject matter jurisdiction of the Commission. The public will also be given a
chance to comment on matters which are on the posted agenda during Commission deliberation on those
specific matters.
INTRODUCTORY BUSINESS
1. Self-introduction of newly appointed Commissioner Steven Florman (Business Representative
Seat).
MINUTES
2. Minutes of the Regular Vernon Housing Commission Meeting held September 9, 2015, to be
received and filed.
Vernon Housing Commission Meeting Agenda
December 9, 2015
Page 2 of 3
DISCUSSION AND POSSIBLE DIRECTIVES TO STAFF
3. Discussion Regarding 2016 Rent Setting Process and Timeline.
Recommendations
A. Find that discussion of market rent is exempt from the California Environmental Quality Act
(CEQA), in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA
only applies to projects that may have a significant effect on the environment; and
B. Hold a discussion regarding the 2016 rent setting process and timeline, and provide direction to
City staff on the same.
DECEMBER LOTTERY AND WAIT LIST
4. In accordance with Section 3, Random Selection of Potential New Leasees, of the Vernon
Housing Commission Lease-Up Procedures for New Tenants, separate lottery drawings of all
Expression of Interest Forms and Unit-to-Unit Transfer Request Forms received during the 2015
calendar year up to 5:00 p.m. on December 8, 2015, will be conducted to create a wait list for all
units that become available December 9, 2015 or later.
ORAL REPORTS, PRESENTATIONS & COMMENTS FROM STAFF AND COMMISSION
MEMBERS
5. Update on the sale of three City-owned housing units in Huntington Park.
6. Quarterly housing report to be presented by Public Works, Water & Development Services Staff.
7. Brief reports, announcements, or directives to staff from the Commissioners and Commission Officers.
8. Next regular meeting: March 9, 2016 at 6:00 p.m.
SECOND PUBLIC COMMENT - The public is encouraged to address the Vernon Housing Commission on
any matter that is within the subject matter jurisdiction of the Commission.
/ / /
/ / /
/ / /
/ / /
Vernon Housing Commission Meeting Agenda
December 9, 2015
Page 3 of 3
ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was
posted on the bulletin board at the main entrance of the City of Vernon City Hall, located at 4305 Santa Fe
Avenue, Vernon, California, and on the City’s website, not less than 72 hours prior to the meeting set forth on
this agenda. Dated this 3rd day of December, 2015.
By: ________________________________
Maria E. Ayala
Secretary
MINUTES OF THE REGULAR VERNON HOUSING COMMISSION
MEETING HELD WEDNESDAY SEPTEMBER 9, 2015, IN THE
COUNCIL CHAMBER OF THE CITY HALL LOCATED AT
4305 SANTA FE AVENUE, VERNON, CALIFORNIA
MEMBERS PRESENT: Michael Hughes, Melissa Ybarra, Henry Haskell, Steven Froberg,
and John Kriste
MEMBERS ABSENT: Steven Florman and Hector Garcia,
The meeting was called to order by Chairperson Hughes at 6:00 p.m. Vice Chairperson Ybarra led
the flag salute.
CHANGES TO THE AGENDA
Maria Ayala, City Clerk, announced that there were no changes to the agenda.
PUBLIC COMMENT
Chairperson Hughes announced that this was the time allotted for public comment and inquired
whether anyone in the audience wished to address the Commission. The public will also be given
a chance to comment on matters which are on the posted agenda during Commission deliberation
on those specific matters.
No public comment provided.
INTRODUCTORY BUSINESS
1. Self-introduction of newly appointed Commissioners Steven Florman and Kyle
Cooper (Business Representative Seats).
Members present conducted self-introductions.
MINUTES
2. Minutes of the Regular Vernon Housing Commission Meeting held June 10, 2015,
to be received and filed.
It was moved by Ybarra and seconded by Cooper to approve the Minutes listed above. Motion
carried, 5-0).
NEW BUSINESS
3. Approval and Adoption of Proposed Guidelines Regarding Tenant and Landlord
Responsibilities and Tenant Do’s and Don’ts.
Regular Vernon Housing Commission Meeting Minutes
September 9, 2015
Page 2 of 4
Recommendations:
A. Find that approval and adoption of the proposed Guidelines Regarding Tenant and
Landlord Responsibilities and Tenant Do’s and Don’ts are exempt under the
California Environmental Quality Act (“CEQA”) because such is not a “project” as
that term is defined in the CEQA Guidelines section 15378, and even if it were a
project, it would still be exempt in accordance with Section 15061(b)(3), the
general rule that CEQA only applies to projects that may have a significant effect
on the environment; and
B. Approve and adopt the proposed Guidelines Regarding Tenant and Landlord
Responsibilities and Tenant Do’s and Don’ts.
Deputy City Administrator Kristen Enomoto presented the item and outlined the proposed changes
to the Guidelines Regarding Tenant and Landlord Responsibilities and presented the proposed
Tenant Do’s and Don’ts.
In response to Vice Chairperson Ybarra, Director of Public Works, Water and Development
Services Kevin Wilson reported on satellite, lawn and landscaping installation requirements.
Subsequent changes to the proposed were made concerning the same.
It was moved by Ybarra and seconded by Cooper to approve proposed items as amended. Motion
carried, 5-0.
4. Approval and Adoption of Proposed Procedures for Tenants under First Responder
Priority.
Recommendations:
A. Find that approval and adoption of the proposed procedures for tenants under first
responder priority is exempt under the California Environmental Quality Act
(“CEQA”) because such is not a “project” as that term is defined in the CEQA
Guidelines Section 15378, and even if it were a project, it would still be exempt in
accordance with Section 15061(b)(3), the general rule that CEQA only applies to
projects that may have an effect on the environment; and
B. Approve and adopt the proposed procedures for tenants under first responder
priority.
Deputy City Administrator Kristen Enomoto reported on City Council’s consideration regarding
the first responders and provided an update on the current status.
Proposed procedures for annual certification for first responder tenants was presented.
Regular Vernon Housing Commission Meeting Minutes
September 9, 2015
Page 3 of 4
It was moved by Ybarra and seconded by Froberg to approve and adopt the Procedures for Tenants
under First Responder Priority. Motion carried, 5-0.
DISCUSSION AND POSSIBLE DIRECTIVES TO STAFF
5. Preliminary Discussion Regarding Potential Market Rent for Units to be
Remodeled in Fiscal Year 2015/2016.
Recommendations
A. Find that discussion of market rent is exempt under the California Environmental
Quality Act (“CEQA”) because such is not a “project” as that term is defined in the
CEQA Guidelines section 15378, and even if it were a project, it would still be
exempt in accordance with Section 15061(b)(3), the general rule that CEQA only
applies to projects that may have a significant effect on the environment; and
B. Hold a preliminary discussion regarding potential market rent for units to be
remodeled in fiscal year 2015/2016.
Deputy City Administrator Kristen Enomoto provided an update on the item and City Council’s
current consideration on the same.
Legal Counsel Stuart Leviton provided further reporting.
At 6:45 p.m., Leviton advised that Vice Chairperson Ybarra is a resident that would be impacted
by this item and recommended that she recuse herself from the discussion. Ybarra recused herself
from the dais and sat in the meeting as a member of the public.
The remaining Commission members held considerable dialog regarding this item. No action on
this item was taken.
ORAL REPORTS & COMMENTS FROM STAFF AND COMMISSION MEMBERS
6. Update on the sale of three City-owned housing units in Huntington Park.
Deputy City Administrator Kristen Enomoto provided the update.
7. Quarterly housing report to be presented by the Director of Public Works, Water &
Development Services.
Director of Public Works, Water and Development Services Kevin Wilson presented the reporting.
Chairperson Hughes and Vice Chairperson Ybarra provided feedback.
In response to Commissioner Cooper, Wilson clarified the types of repair calls.
Regular Vernon Housing Commission Meeting Minutes
September 9, 2015
Page 4 of 4
8. Report on the completion and grand opening of Vernon Villages Park Apartments by the
Director of Public Works, Water & Development Services.
Director of Public Works, Water and Development Services Kevin Wilson conducted the
presentation.
9. Brief reports, announcements, or directives to staff from the Commissioners and
Commission Officers.
Vice Chairperson Ybarra commended staff on the agenda material.
SECOND PUBLIC COMMENT
Chair Hughes announced that this was the time allotted for public comment and inquired whether
anyone in the audience wished to address the Commission.
No public comment provided.
With no further business, at 7:35 p.m. the meeting was adjourned.
________________________
Michael Hughes
Chairperson
ATTEST:
_________________________
Maria E. Ayala
Secretary
tcHl0 s,yuilc ,\llc
Er0z I0ll0
o3nlf c=Iu STAFF REPORT
CITY ADMINISTRATION
DATE:
TO:
FROM:
RE:
December 9, 2015
Honorable Vernon Housing Commission
Mark C. Whitworth, City Administrator/Commission Directo
Originator: Kristen Enomoto, Deputy City Administrator
Discussion Regarding 2016 Rent Setting Process and Timeline
Recommendations
A. Find that discussion of market rent is exempt from the Califomia Environmental QualityAct ("CEQA"), in accordance with CEQA Guidelines Section 15061(b)(3), the general
rule that CEQA only applies to projects that may have a significant effect on the
environment; and
B. Hold a discussion regarding the 2016 rent setting process and timeline, and provide
direction to City staffon the same.
Puroose
The purpose of this staff report is to provide the five Vernon Housing Commissioners who were
not part of the initial rent setting process in 2011/2012, a brief historical perspective to help
inform the aforementioned discussion and upcoming rent reviedrent setting process. It may
also serve as a helpful reminder to the two Commissioners who were part of the 20ll/2012 rcnt
setting process. City staff will elaborate on each of the areas outlined below and further explain
the attached reference and sample materials during the discussion.
Backqround
The Vemon Housing Commission ("Commission") was established in July 2011 as a key
element of the City's good govemance reforms. The Commission held its first meeting in
August 201 I and began work on its first order ofbusiness, the development ofa Housing Policy.
On October 5, 2011, the City Council adopted the Vemon Rental Housing Policy ("VRHP" or*Policy'') developed and recommended by the Commission, which is included herewith as
Attachment l. A key element of the Policy, particularly as it relates to this discussion, is that
rents be set based on a "market" valuation, as determined by multiple independent sources, while
Page I of3
appropriately considering or accounting for the unique industrial and commercial nahre of the
City, and the limited number ofresidential resources.
20t l/2012 lnitial Rent Settine Process
In the late part of 201I and early part of 2012, during the first and only rent setting process
undertaken by the Commission thus far, the City received market rent surveys liom three
separate, independent, qualified appraisers, Gold Coast Appraisals, Inc. ("Gold Coast"), Himes
and Himes, Inc. ("Himes"), and First Meho Appraisals ("First Metro"). A subcommittee of the
Commission was established to review the surveys in detail and meet with each of the appraisers.
Gold Coast was determined by the subcommittee to have the most appropriate credentials to
appraise the housing in Vernon, and its survey results were therefbre selected as the basis for the
rent setting. Additionally, the subcommittee determined Himes' analysis of negative location
impacts, ranging from 15%-30yo, to be the most accurate and appropriate. As such, the Gold
Coast results were decreased by 30% for all units within Vemon. At this point, the Commission
will only need to address the units in Vemon, as three of the five units in Huntington Park are
currently being sold, and the remaining two are being reserved for temporary relocations during
any remodeling of Vemon units, after which time the City Council may decide to sell those units
as well.
A copy of the January 24, 2012 Subcommittee Report on Proposed Market Rental Rates is
included herewith as Attachment 2.
A copy of the most current version of the Market Rent Implementation Schedule, effective June
12, 2013, is also included herewith as Attachment 3. This version includes, among other
updates, the officially implemented stair-stepped rates for years 2013, 2014, and 2015, whereas
the initial schedule included with Attachment 2 established the rate for 2012 only and included
the subsequent years for illustrative purposes only.
TenanUPublic Participation and Input
In February 2012, during the initial rent setting process, tenant and general public participation
and input was broadly solicited through a formal public hearing process that included an
opportunity to submit both oral and written comments. Copies of the public hearing notices and
comment form are included herewith as Attachment 4.
Also included herewith as Attachment 5 is a March 5, 2012 staff report summarizing, among a
few other things, the subcommittee's responses to public comments raised during the public
hearing.
Vernon Villaqe Park Apartments
One key difference between the 20'l I /2012 rent setting process and the 2016 process is the
availability of comparative housing within Vemon's boundaries, even if not in a true apples-to-
apples sense.
In July 2015, Vemon Village Park opened its doors to many new residents in Vernon. Vemon
Village Park is a privately developed, owned, and operated LEED Silver apartment complex at
Page 2 of 3
the Southeast end of Vemon bordering Maywood. The complex is exclusively for low-income
persons/families and features 45 one-, two-, and three-bedroom units with balconies and patios,
on-site laundry facilities, a community building with kitchen, outdoor barbecue area, edible
gardens, and a Vemon Police Department substation.
Current rents at Vemon Village Park range from $517 to S 1,247.
Partia! Updated Rent Survev
As you may recall from the September 9, 2015 Commission meeting, a partial updated rent
survey was recently performed by Gold Coast on the seven City-owned single-family dwellings
approved by the City Council to undergo major remodeling, akin to that performed on the other
City-owned units in 2007/2008.
The updated survey includes the current market rates for the seven subject units in their current
condition as well as in their proposed remodel condition, and is included as Attachment 6.
Potential Meetine Schedule
In order to provide sufficient time and opportunity for the Commission to receive and review all
necessary information, and to afford affected tenants and the general public ample opportunity to
provide input, it is anticipated that up to four meetings may be necessary to complete the rent
setting process. Given that there are only two regular meetings scheduled between now and July
2016, it may be necessary to schedule one or two special meetings along the way.
As of August 1,2016, all tenants will have been at their current rents for 12 months or more.
Additionally, the City Council typically adopts its budget annually in mid to late June. As such,
it would be appropriate to work to set rents by the June 8, 2016 Commission meeting, in order to
provide ample notice to affected tenants of any potential changes, and to include any related
impacts in the budget for fiscal year 201612017 .
City staff will work to develop and present a proposed calendar or timeline at the Decernber 9,
2015 meeting for the Commission to review and consider.
Fiscal Impact
The costs for each of the 201l/2012 rent surveys ranged liom $3,000 to 58,500 and each took
approximately two to three weeks to complete. We believe lower rates could be negotiated if the
same appraisal companies are used and because the five Huntington Park units will not be
included. We also believe it would be sufficient to use only two companies instead of three.
Attachment(s)
I . Vernon Rental Housing Policy
2. Subcommittee Report on Proposed Market Rental Rates3. Market Rent Implementation Schedule Effective June 12, 20134. Public Hearing Notices and Comment Form5. Subcommittee Responses to Public Comments Raised During February 2012 Public Hearing6. Gold Coast Appraisals August 27, 2015 Partial Updated Rent Survey
Page 3 of3
Attachment I
Vernon Rental Housing Policy
Vernon Rental Housing Policy ('VRHP")
Pursuant to Ordinance I 183, the Vernon Housing Commission ("VHC')
recommends to the Vemon City Council ("VCC") that the VCC adopt the following Rental
Housing Policy, to be applied to all housing owned by the City of Vemon and leased to the
public.
I . Fair Housins: The City of Vemon is committed to managing its City-
owned housing at the highest levels of faimess and impartiality. At a minimum, the City of
Vemon shall comply with all applicable federal and state fair housing laws, including the federal
Fair Housing Act, as amended, 42 U.S.C. 3601 et seq., and the Califomia Fair Employment and
Housing Act, Cal. Gov't Code $ 12955 et seq. ("FEHA").
2. "Market" Rents: Subject to the provisions of paragraph six below, all
rents charged by the City of Vemon shall be based on a "market" valuation, as determined by
multiple independent sources. In setting a "market" value, the VHC should remain sensitive to
the unique industrial and commercial character of the City of Vemon, including various
environmental realities that are inherent in the City of Vernon. The VHC should also remain
sensitive to the limited number ofresidential resources that the City of Vernon provides, as
compared to other locales. Finally, to the extent reasonably practicable, when setting a "market"
value for any particular rental unit, an individualized assessment ofthe particular rental unit shall
be taken into account.
3. Lensth ofTenancv: All new leases shall be for a term ofone (l) year.
Renewal(s) of leases shall be for a term no longer than one (l) year, without limitation on the
number of renewals, so long as a leasee is in good standing.
4. Renewal ofExistins Leases: Per Ordinance 1183, any lease for a term or
month-to-month tenancy in effect as ofthe effective date of Ordinance I I 83 shall have a right to
renew his or her lease or tenancy consistent with the terms and conditions established by the
VRHP. Any month-to-month tenancy shall also have the right to convert such tenancy into a
leaseforaterm,consistentwiththerequirementsofsectionthreeabove.>>>>>>>>
Vemon Rental Housing Policy
2lPage
5. Terms and Conditions: The terms and conditions ofall tenancies shall be
neutral, fair and reasonable, and shall be based on appropriate standards for private residential
tenancies. To the extent reasonably practicable, terms and conditions should take into account
any factors that may be present in the City of Vemon and that may not be present elsewhere. All
leases for City-owned residences shall contain a right offirst refusal to purchase the residence if
the residence is offered for sale.
6. Transition for Existins Tenants: To the extent any existing tenancy is
not in compliance with the VRHP, the VHC shall adopt procedures to bring all such tenancies
into compliance. To avoid undue hardship on existing tenants, transitional procedures shall
allow for a reasonable period of time to achieve full compliance with the VRHP. To the extent
any individual leasee has a particularized hardship, the VHC shall adopt procedures to allow an
individual leasee to appeal to the VHC so that any particularized hardship may be addressed in
an equitable manner and to avoid any undue hardship for any particular leasee.
7. Imolementation: The VHC shall promulgate such procedures as may be
appropriate andlor necessary to implement and maintain the VRHP.
Attachment 2
Subcommittee Report on
Proposed Market Rental Rates
RECEI\/ED
JAN 2 5 20t2
CIIY CLEill('S OFFICE
STAFF REPORT
VERNON HOUSING COMMISSION
DATE:
TO:
FROiVI:
RE:
January 24,2012
Honorable Vernon Housing Commission
Mark C. Whit*'orth, Commission Director
Subcommittee Report on Proposed i\Iarket Rental Rates
Enclosed is a repon on proposed market rental rates from the Operating Procedures Drafting
Subcommittee (Subcommittee). consisting ol'Chairman Eric Gustafson, and Commissioners
Henrl' Haskell and Reno Bellam-v.
'fhe Subcommittee revierved and analy'zed tluee independent rental appraisal repons and held
several meetings to thoroughll, address all factors relating to market rental rates.
As discusscd at the January 12.?012 Housing Commission meeting. a public hearing on this
malter has been set for the Februarl' 9. 2012 meeting.
SUBGOMMITTEE REPORT
VERNON HOUSING COMMISSION
DATE:
TO:
FROM:
RE:
Januar-r 24,2012
Honorable Veruon Housing Commission
Operating Procedures Drafting Subcommittee
Proposed Market Rentsl Rates
Among a number of other items. the Operating Procedures Drafiing Subcomminee
(Subcomminee). was tasked with developing a merhod to determine market rents for all Ciry-
or*aed housing units. Below is the process that rvas undertaken and atuched are lhe proposed
market rates that resulted from that process.
I . Pursuant to the Procedure to Set lnitial "Market" Rates for Housing Units adopted at the
December 8. 201 I Housing Commission meering. the Subcomminee engaged three well
credentialed independent appraisers. each of whom conducted and submined a market
revie\\'.l. One of the three appraisers, Gold Coast .Appmisal (GCA). had the most appropriate
credentials to appraise the housing in Vemon. As such. GCA was selected as the basis for
our analy'sis. GCA's analysis considered typical appraisal measurements and included
specific rate adjustments for size. remodeling and garages.
3. An excellent analysis of negative location impacts was provided by one of the other
appraisers. Their conclusion $as that adverse location impacts ranged from about l5o/o-30o/o.
bul no market comparison adequatell' conrpared to conditions in Vemon. The Subcommittee
chose to adjust the GCA market appraisal basis b1,30% to determine rents tbr all units rvithin
Vemon. fhe Huntington Park homes are not affected by the same adverse location impacts
and therefore, no adjustments rvere made ro rhe market appraisal rates for those units.
-1. To minimize hardship on existing tenants rvho rvill have to transition from a month-to-month
terumc) lo the nerv standard one-year lcase. it is proposed that the increase to market renls tbr
these tenants be stair-stepped over lbur vears at equal annual increases. and that the initial
increase be delayed until July l. 2012.5. The City currently pays the Possessory lntc-resr Tax (PIT) for all tenants, rvhich is basically
the govemmental equivalent of a propcq.ta\. The ner+'form lease recenrly adopted
provides lhat lenants are to pay the PlT. The Subcommittee proposes the new lease be
amended lo provide that tenanrs can be reimbursed by ttre City for PIT payments.6. Some tenants within the Ciry of Vemon are receiving internet service through the City's liber
optics system free of charge. Beginning Jul1 l, 2012. rhe Ciry* sill offer subscription service
to all Vemon tenants ar rhe appropriate cost. Only acrive Councllmen will continue to
receive Citf intemet sen'ice frec olchargc.
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Attachment 4
Public Hearing Notices and Comment Form
NOTICE OF PUBLIC EEARING
The Vernon Housing Commission will conduct a Public Hearlng
wh j-ch you may attend.
PLACE: Vernon City Ha 11
City Council Chambers
4305 Santa Ee Avenue
Vernon, CA 90058
DATE AI.[D TIME: Thursday, February 9, 2O].2, at 7:30 p.m., or
as soon thereafter as the matter may be
heard.
PURPOSE: To obtain testimony regardinq the settlng of
market rental rates for a1f housing units
owned by the City of Vernon,
The proposed market renta] rates are on file and avaj.lable for
publj-c review in the Commission Secretary/City Clerk's office
focated at the address above.
ArIy interested person may attend and may make an oralpresentation to the Vernon Housing Commissj-on at the time of the
hearing, or may present written comments prior to the hearing.
Written comment forms are ava.ilable at the Commlssion
Secretary/City Clerk's office and on the Vernon Housing
Comnission page of the City's website.
The hear.ing may be continued, adjourned, or rescheduled to a
stated t.ime and place without further notice.
Wilfard G. Yamaguchi
Conmission Secretary
Posted: January 26, 2012
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T ern on 9{*ing C ommis si.on,
nlhfrL 9{earing
You are invited to attend a public hearing of the Vernon Housing
Commission to discuss and comment on the setting of market rental rates
for al! housing units owned by the City of Vernon.
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Date and Time:
Thursday, February 9, 2012, 7:30 p.m.
Location:
Vernon City Hall
City Council Chambers
4305 Santa Fe Avenue
Vernon, CA 90058
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The proposed market rental rates are enclosed and are also on file and
available for public review in the Commission Secretary/City Clerk's office
located at the address above.
Written comments may also be submifted using the enclosed public
comment form.
!f you have any questions or require additional information, please contact
the Commission Director's Office at (323) 583-881 1, ext. 398 or
kenomoto@ci.vernon. ca. us.
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Public Hearing Public Comment Form
Market Rental Rates for City-Owned Housing
February 9,2012
The Vemon Housing Commission will hold a public hearing on Thursday, February 9,2012, at
7:30 p.m. to obtain public input regarding the setting of market rental rates for all City-owned
housing units. The proposed market rental rates are on file and available for public review in the
Commission Secretary/City Clerk's office located at the address below. If you are unable to
attend the public hearing, or would prefer to submit your comments in writing, please use this
form to provide your comments. Please submit the completed form to the Commission
Director's Offrce at the mailing and,/or email address(es) below no later than February 8,2012.
Written and oral comments will also be taken at the public hearing on February 9, 2012.
Commission Director: Mark C. Whitworth
Mailing Address: 4305 Santa Fe Avenue
Vemon, CA 90058
Email Address: kenomoto@ci.vemon.ca.usPhone: (323) 583-8811 ext. 398
Comments:
Name:
Ad&ess:
Attachment 5
Subcommittee Responses to Public Comments
Raised During February 2012 Public Hearing
RECEI\f ED
MAR 0 5 2012
CITY CLERl('S OIRCE
STAFF REPORT
VERNON HOUSING COMMISSION
DATE:
TO:
FROM:
RE:
March 5, 2012
Honorable Vernon Housing Commission
Mark C. Whitworth, Commission Dire
Subcommittee Responses to Public Co
Housing Commission Meeting and Public Hearing on Market Rental Rates
At the February 9.2012 Housing Commission meeting, several comments were raised by
memberc ofthe public retating to the Lease-Up Procedures and the new form Residential Lease.
During the public comment portion of the meeting and the public hearing on market rental rates,
many comrnents rvere raised by members ofthe public relating to the proposed market rates and
the implementation of those rates.
Recently. the Operating Procedures Drafting Subcommittee (Subcommittee), consisting of
Chairman Eric Gustafson, and Commissioners Henry Haskell and Reno Bellamy. met with staIl
to review the comments raised 1o determine whether amendments to the Lease-Up Procedures or
Residential Lease should be considered. and to determine whether consideration ofany further
actions respecting market rates and the implementation ofthose rates may be warranted.
The Subcomminee's responses and proposed action items resulting fiom that meeting arc
outlined in the enclosed Subcommittee Report.
SUBGOMMITTEE REPORT
VERNON HOUSING COMMISSION
DATE:
TO:
FROM:
R.E:
March 5,2012
Honorable Vernon Housing Commission
Operating Procedures Drafting Subcommittee
Responses to Pubtic Comments Raised During February 9' 2012 Housing
Commission tleeting and Public Hearing on Market Rental Rates
Recently, the Operating Procedures Drafting Subcommittee (Subcomminee), consisting of
Chairman Eric Gustafsorl and Commissioners Henry Haskell and Reno Bellamy. met with staff
to review and further address the comments raised by members of the public at fte February 9.
2012 Housing Commission meeting relating to a number of issues, including market rates, lease
procedures. the form lease, and certain ransitional issues and opportunities for existing tenants.
While the Subcommittee feels the Commission sufficiently addressed all comments raised at the
meeting, because these are such important issues for Vemon residents, it felt compelled to take a
closer second look at said cornments and further elaborate on the responses provided at the
meeting.
Below is a general sunmary listing of the comments raised at the Februar)'9rh meeting, and the
Subcommittee's responses to those comments, including any recommended actions for
consideration by the Housing Commission.
l. Public Comments:
Clarification of cenain language and processes oullined in the Lease-Up Procedures.
specifically the following:
a. Definition of "otherwise" as referenced in the "(by lottery or otherwise)"
language in Section 3 of the Lease-Up Procedures:
Timeline respecting the submission of Expression of Interesr Forms and each wait
list:
Proper transparency of the wait lisu and
Ensure process avoids favoritism ro City employees and friends and relatives of
City officials and employees by prohibiting/limiting acceplance of interest from
such parties.
c.
d.
S ubcommirlee Resoonss :
While the Subcommittee appreciates the public's need for a clear understanding of
the policies and procedurcs developed and implemented by the Commissioq it
maintaiff that this is uncharted lerritory for the City and that the entire process will
remain somewhat fluid until many of its policies and procedures have been put to the
test and evaluated for effectiveness.
a. The Subcommittee recommends amending the Lease-Up Procedures lo remove
the language "@y lonery or otherwise)" from Section 3, as the language itself is
unnecessary and was only intended to provide an example of a random selection
method. The critical provision, which still remains, is that the selection and rank
ordering of the interest forms for the purpose of creating the wait list shall be
done through a process that randomly generates the order.
(Amended Lease-Up Procedures is altached.)
b. The Subcommittee recornmends amending the Expression of Interest Form to
irrclude the following:. the rcspective calendar year as part ofthe form title;. language clarifring the form is valid for the respective calendar year only;r language stating tlnt forms must be received by 5:00 p.m. on the day
before a particular lottery to be eligible for that lottery; and
(Amended Expression of Interest Form is ottacled.)
As was also clarified by Commision Counsel at the meeting, the December
lonery wait list will remain in effect until the next June lottery occurs, but anyone
so interested in being eligible for that next June lottery must submit an interest
form sometime during that calendar year, beginning as early as the City's first
business day ofthe year, typically January 2.
c, As indicated in Section 3 of the Lease-Up Procedures, the creation of the wait list
will occur at the June and December Housing Commission meetings, which are
public meetings that anyone is permined to attend, and the wait list will be
retained by the Commission Secreury/City Clerk's Office and available to the
public through the filing ofa Public Records Act request for such.
d. As shted at the meeting by the City's Reform Monitor, John Van de Kamp, the
lottery process effectively achieves the avoidance of any favoritism. As was also
clarified by one ofthe Commissioners, the process should not discriminate against
any person based on his/ter afiiliation with the City.
2. Public Commcnt:
Who handles lease enforcement and what are the consequences of violations of lease
provisions, specifically Section l(b), which rclates to maximum occupancy?
S ubcomniltee Resoonse :
The Housing Commission has the ultimate authority to enforce and amend the leases.
Subcommitrcc R€pod 03-05- I 2 Pagc 2
3.@!:
Existing tenans should be given the opportunity to transfer to a vacant unit prior to
fie unit being filled by a new tenant.
S u bco mmiltee Resoonse :
The Subcommittee is reviewing this issue and will pres€nt a recommendation to the
Housing Commission at the next meeting.
4. Public Comment:
What if existing tenants legitimately cannot afford the new rates, even with the stair-
stepped implementation?
Subcomrtflce Resoonse:
Section 5 ofthe Vemon Rental Housing Policy sutes in pertinent part:
"To the extent any individual leasee has a parricularized hardship, the VHC shall
adopt prccedur€s o allow an individual leasee to appeal to the VHC so that any
particularized hardship may be addressed in an equitable manner and to avoid any
undue hardship for any particular leasec."
The Subcomrnittee will work to develop proposed procedurcs as stipulated above and
present its recommendation to the full Commission by the regularly scheduled May
meeting.
5. Public Comment:
Provide greater transparcncy and availability of housing related documents (i.e. form
lease, rental appraisal reports, etc.).
Subcomm tee Resoonse:
All City documents, or portions thereof, not otherwise exempt from public disclosure
are available through the filing ofa Public Records Act request with the City Clerk's
Offrce. Additionally, the Housing Commission agenda packets are available in
printed form and electronically through the Clerk's Office. The Housing Commission
mailed certain notices ard information to tenants that it deemed would be of uhost
interest to them as a courtesy.
6. Public Comment:
Possessory interest ta:< (PIT) should be paid directly by the City. What if tenans do
not pay and present a potentid liability to $e City as a result?
Subcommince Repon 03-05- I 2 Prge 3
Subammillce Resoonse:
As was clarified by commission counsel al the meeting, the city has no liability with
regard to the timely payment of the PIT owed by the tenant to the County; this is
entirety the obtigation of the tenant. Further, because of the variance of PIT from unit
to unit, rcimbursements to tenants is a more efficient and precise method of handling
these costs than having the City pay it directly and adjusting the rent on each unit
accordingly.
@e4:
Existing tenants should be allowed to puchas€ units prior to units being offered to
new tenants.
Subannmi ee Resoonse:
The Housing Commission has not yet addressed nor made any recommendation to the
City Council on the potential disposition of City-owned housing units in Vemon.
Public Comment:
Conduct a feasibility study of the remodeling of the remaining un.remodeled Vemon
units and rer4in the vacant units to accommodate tenants during such remodeling.
The funding for the rcmodeling could come from the sale of the Huntington Park
units and the completion timeline of the remodeling could be in line with the
expiration of the existing S-year leases, which would be a more appmpriate tirne to
address market rate increases.
Based on the duties stipulated and ttre expenditure limitations set forth in the Housing
Ordinance, the Subcomminee believes a remodeling project of this magnitude is not
within the Housiag Commission's purview.
9. Public Comment:
Current tenants should be gmndfathered in at their curent rates and should not be
subject to increases to market rates unless they transfer to a different unit.
S ubcomnillee Resnonse :
Although the Subcommittee appreciates the concems of current residents regarding
martet r€nts, the Subcommittee reaffirms its commitment to the Vernon Rental
Housing Policy, which requires all rents cbarged to be at market rates going forward.
A grandfathering policy or practice would be inconsistent with the Housing Policy.
Subcommittee Repon 03-05- I 2 Page 4
lo.@cE!:
Market rents are still too high for Vemon and the implementation of those ren$ is
unfair and inequitable.
S@s:
As the Subcomminee has previously stated, there is no exact science for determining
market rents. As such, it relied heavily on experts in the field and the information and
analyses they provided to set and substantiate the currcnt market rents. The
Subcommittee, consisting of two business representatives and a resident, is very
familiar with the adversity factors in Vemon, and made a conscious €ffort to assign
value to those factors through an objective and formulaic process.
While the Subcommittee recognizes that a certain inequity exiss among cunent
temnts as a result of the 5-year leases that only some tenants are under, it believes it
has appropriately mitigated for that through the 4-year implementation schedule it has
proposed, the delay of the first incrase to July l, 2012, and the commitment to
further review the schedule prior to July l, 2013. As emphasized by a number of the
Commissioners and Mr. Van de Kamp, the Commission must make progress and
continue to move forward in spite of certain unfomrnate circumstances rhat may exist.
As indicated by Chairman Gustafson, the Commission remains open to firlher review
and analysis of the market rents upon the presentation of new or additional dau that
would warrant that. This could include a lack of interest from prospective new
tenants in rcnting the vacant units at their current market rates. Funher, the
Commission retains its right to amend is policies and procedures, including market
rents and the implementation schedule, as appropriate. The Commission must do
what is in the best intercst of the City and its housing stock, but remains sensitive to
the impact new policies and procedures may have on existing tenants, and is
comrnitted to appropriately mitigating those irnpacts to the best of its abilities.
Recommendations
l. Amend the Lease-Up Procedures to remove the language "(by lottery or otherwise)".
2. Amend the Expression of Interest Form to include the following:. the respectiv€ calendar year as part of the form tille;. language clarifring the form is valid for the resp€ctive calendar year only; and. language stating that forms must be received by 5:00 p.m. on the day before a
parricular lottery to be eligible for that lonery.
Subcommince Repon 03-05- I 2 Page 5
Attachment 6
Gold Coast Appraisals Augu st 27 , 2015
Partial Updated Rent Survey
GCA
( iokl ('oast .\ppraisalr Inc.
rml5 Pih..r Bh/jd,, s6it I l0
S-nFc fiiu+ CA 90670h. (52) 651-1058
FAX (562) 65!.lO6E
c6p(.ac@8ol&od ?(ri!.licom
August 21 , 20L5
Kristen Enomoto
City of Vernon
4305 Santa Ee Ave.
Vernon, CA 90058
Dear Ms. Enomoto,
At your request, I completed my analysis of the monthly rental
rates for the following residential properties:
TyPe
3 Bedroom
3 Bedroom
2 Bedroom
2 Bedroom
2 Bedroom
2 Bedroom
2 Bedroom
Street Ad&ess
3361 Eruit.Iand Ave.
4 321 Eurlong P1 .
3365 Eruitland Ave.
4323 Eurlong PI .
4324 Eurlong Pl .
4325 Eurlong Pl .
4328 Furlong Pl-.
City Location
Vernon
Vernon
Vernon
Vernon
Vernon
Vernon
Vernon
Regardless of who pays for the attached market rental report, .it
has been prepared for our client: the Clty of Vernon. As
specified by the client, the purpose of the appraisal is to
estimate current fair market rental rates and the fair marketrental rates based on the provided remodel for the above
ment.ioned properties. The client intends to use this report in
negotiating a rental rate for the tenants at these locations.
15032000N, RCS veinon Properties
The attached Summary Rental Report has been prepared ln
accordance with the reporting requirements of the Uniform
Standards of Professi-ona1 Appraisal Practice (USPAP) .
This Renta1 Report may not be used or re.Iied upon by anyone
other than the above-mentioned client for any purpose
whatsoever, without the express LJritten consent of theappraiser. If the client provides anyone else with a copy ofthis report, such as a borrower etc., that person(s) may not beentitled to rely upon lts contents when making any decisions
about the property. As such the foLlowing Iimiting condition
applies:
Neither all nor any part of the contents of this report shall be
conveyed to any person or entity, other than the appraiser's or
f irm's client, through advertising, solicitation materials.public relations, new, sales, or other media without the written
consent and appeaf of the author, particularly as to valuationconclusions, the identlty of the appraiser or firm with whichthe appraiser is connected, or any reference to the Appra.isal
Institute or the MAI, SRA designation. Furthermore, the
appraiser or firm assumes no obligation, Iiability, or
accountabllity to any third party. If thi-s report is placed in
the hands of any one, but the client, the cli-ent shal1 make suchparty(s) aware of al-l the assumptions and Iimiting conditions of
the assignment.
Should you have any questions regarding the analysis
conclusions found .in the attached report, please contact me.
or
Sincerely,
.42- f
Hee K. Yi
Certif ied ceneral Appraiser
AG 035544
Expires 71, /1,6 / 2016
15032000N, RCS vernon Properties
Table of Contenta
Table of Contents ........... 3
client. .......4
Appraiser. ........... 4
Effective Date the Assignment. ..... 4
Date of Report. ...... 4
Competency Provision. ....... 4
Confidentiality.... ......... 4
Summary Eair Rentaf Report. ........ 5
fntended User... ..... 5
Intended Use.... ..... 5
ReaI Estate Locations -,,---- 5
Overview of the Assignment. ......,, 5
Scope of the Assi-gnment. . . . . ....... 5
Definition of Market Rent... ....... 6
Neighborhood Description. .......... 1
Zoning. ....... I
Property Descriptions ... .. .. 8
Rental Analysis .. ,. ,. 9
Addendum. .... 14
Certification . . . . , .......15
Assumptions and Limiting Conditions .... I'l
Qua.Iifications .... ....... 20
Subject and Rental Photographs ......... 23
150 32000N, RCS vernon Properties 3
Client
The City of Vernon
4305 Santa Ee Ave.
Vernon, California 90058
Appraiser
Hee K. Y.i
Gold Coast Appraisals Inc.
10 016 Pioneer B1vd.
Santa Fe Springs, Cafifornia 90670
Effective Date the AssignDent
The effective date of this assiqnment is August 25t 2015. Thebuildings were inspected on August 25, 20L5. The appraiser madeexterlor inspections of the properties. AI1 properties were
wiewed from the street.
Date of Report
Hee K. Yi wrote this report August 21 , 2075
Conpet6ncy Provision
Hee K. Y.i has the necessary educational background and fieldexperience to perform this assignment her qualifications arefound in the addenda. She is a California Certified GeneralAppraiser (AGO35644).
Confidential i ty
The appraiser must be aware of, and comply with, al1confidentiafity and privacy Iaws and regulations applicable inan assignment. Disclosure of confidential information ispermissible to professional peer review cornmittees, except whensuch disclosure to a committee woufd violate applicable .Iaw orregulation. Confidential Information means information that iseither identified by the client as confidentiaf when providingit to an appraiser and that is not available from any othersource; or cfassified as confidential or private by applicable
1aw or regufation.
I5032000N, RCS vernon Properties 4
Su.@ary Fair Rental Report
This Rental Surnmary Report complies with the reporting
requirements set forth under Uniform Standards of Professional
Appraisal Pract.ice (USPAP) as we.Il as those promulgated by the
Appraisa.I fnstitute. As such, it presents a suflunary of the data,
reasoning, and analyses that were used in the appraisal process
to develop an opinion of a current monthl-y rental rate.
Intended User
The City of Vernon is the intended user of this report.
Intend€d Use
The City of Vernon intends to use this report in negotiating a
monthfy rental rate for the houses that are owned by the City of
Vernon.
Real Estate Locations
TyPe
3 Bedroom
3 Bedroom
2 Bedroom
2 Bedroom
2 Bedroom
2 Bedroom
2 Bedroom
Str66t Addlaas
3361 Eruitland Ave.
4321 Furlong PI .
3365 Eruitland Ave.
4323 Furlong Pl .
4324 Furlong PL
4325 Furlong PI .
4328 Eurlong Pl .
City Location
Vernon
Vernon
Vernon
Vernon
Vernon
Vernon
Ve rnon
Overvi€w of the Assignuent
Because nearly every house is owned by the City of Vernon, thereare no rental properties within the City boundaries that can be
surveyed to ascertain a market rental rate. City employees that
need to be housed in proximity to their work focation can opt to
obtain housing ln the cities and communities that are adjacent
to Vernon. Huntington Park, South Gate, Maybrood, East Los
Angeles, Los Angeles, Bell, Lynwood, and City of Conmerce have
housing stock that is similar to the Vernon Iocated houses.
Scope of the Ass igrrment
The appraiser performed the following tasks in order to
ascertain the current market monthl-y rentaf rate as of August
25, 2015 and the market rentaf rate for each property based on
15032000N, RCS Vernon Properties 5
the provided remodel. The scope of work about the remodeling of
the properties was provided by the cl.ient. Gold Coast Appraisals
conducted Lhe prior renta.l survey as of Novem.bex L'l ' 2 011 . The
staff of Gold Coast Appraisals inspected the interior and
exterior of the propert.ies on November 11 , 2017 thus the
interior information of the properties was obtained from the
prior report of rental survey.
. Viewed the exter.ior for the rental properties;
r Viewed all of the properties from the public thoroughfares,
. Reviewed the de scriptions
properties,'
. Utilized internet rental sites and multiple listing leasing
information to obtain rental rates;
Selected feased or for lease properties that have physical
characteristics that are similar to the subject properties;
. conducted an exterior inspection of each rent comparable;
of City owned res ident ia I
pertinent information available for each
Analyzed the data making adjustments for the superior or
inferior characterlstics that impact renta.I rates;
. Made positive or negative adjustments for those
characteristics that impact rents;
Reviewed al-1 the
rental;
Contacted owne r s
characteristics of
and Ieasing agents
the renta.Is;
to verify phys i caI
final rentReconciled the adjusted rents and reached a
conclusion for each I ocation;
Definition of Market Rent
The most probable rent whlch a property will bring in a
competitive and open market under all conditions requ.is.ite to a
fair rent, the owner and tenant, each acting prudently,
knowledgeably and assuming the rentaf rate is not affected by
undue stimulus whereby:
Owner and tenant are typical.Iy motivated,'
Both parties are well informed or weff advised, and acting in
what they consider their own best interest;
A reasonable time is allowed for exposure in the open market;
15032000N, Bcs vernon Properties 6
Payment is made ln terms of cashfinancial arrangements comparable
Neighborhood Description
U.S. dollars or in terms ofthereto.
City of Vernon Locations
Industrial and commerci-al- properties dominate the property uses
found in Vernon. Over the past several years most of the olderstructures have been replaced with modern concrete tilt-upbui-ldings designed for Iight and heavy manufacturing. Many coldstorage facifities have re.Iocated to Vernon from the CentralBusiness District of Los Angeles. Many of the industriaf useshave access to rail road spur lines that are just a shortdistance from the ma.in fre.ight carryi-ng raif Iines.
Vernon's residential- properties consist of 18 single famity
homes and one apartment building all of which are owned by theClty and occupied by City employees. These properties arelocated adjacent to City owned facilities and are surrounded byprivately owned lndustrial uses.
15032000N, RCS Verron ProperEies
Because Vernon lacks the infrastructure to service localresidents, they must utilize facilities found 1n the surroundingCities of Maywood, East Los Angeles, Huntington park, BeIl andCity of Commerce. Access to these adj acent cities is viaAtlantic 81vd., Slauson Ave., Bandini Blvd., Soto St., AlamedaSt. , Santa Fe Ave . and Washington B1vd. Vernon is alsoconveniently focated to the Long Beach and Santa Ana freewayswhich provide residents and business access not onl-y to the
surrounding communities but to the Centraf Business District of
Los Angeles and the Ports of Los Angeles and Long Beach.
Zoning
The properties that reside in the City of Vernon are zoned formanufacturing uses.
Prop6rty Descriptions
Furl-ong Place Houses
The five homes have no kitchen appliances and have tile countertops. The bathrooms have a tub with an overhead shower, vanity,
and ti.Ie wainscotlng surrounding the tub. The rooms have
hardwood or vinyl fl-ooring. Each home has a hot water tank,
central heating and ai-r conditioning. The houses have a laundry
room. The houses have access to individual storage spaces thatare located in their fenced rear yards. Each house has anassigned street parking stall but they can also utifize theadjacent city parking areas. The tenants pay for a.Il utilities
and trash pick-up.
Unit #
4327
4323
432 4
4325
4328
Three
Two
Two
Two
Two
Sq. Ft.
1,258
1,061
1,067
r,019
L,061
Bed.rooms Baths
One
One
One
One
One
Eruitland Ave Houses
Two one story houses arein the City of Vernon.
have the same phys ical
15012000N, RCS Vernon Properties
Iocated at 3361 and 3365 Fruitland Ave.
The houses were constructed 1957. Theycharacteristics as the Furlong Pl .
properties. One of the houses has a 2 car garage and another has
a one car garage. The tenants pay for all utilities and trash
pick-up.
Unit # Be&ooms Baths sq. Ft.
3361 Three One 1,305
3365 Two one 931
The appraiser assumed that aIf of the properties lrere in rent
ready condition and that they did not suffer from any major
deferred maintenance or any significant code violations.
1503:000N, RCS vernon Properties 9
Rental Analysis
2 bedroom (before remodel ing )
Rmt Cotttporobility Gid
Tso Bedroorn Orc Barh
LltiD&d iurrt t R.rt/ fu Fr
Y=Yes: N=M
150 3:000N, RCS vernon Properries 10
Renl Comporubility Grid
Enirut.d lit.rr..r R.n/ Sq. Fr
3 bedroom (before remodeling)
15032000N, RCS vernon Prope!:ties 11
Renta1 Conclusion
Addre$
MottdrI
Sq. Ft Bqrdml.It
Reit
1105 s 1,850
9n 5 r,585
1258 5 1,850
1067 s 1,585
1067
1079
r067
Adil5henb
9rc crafe
Curdlt MontHy
Madd ne
1,850
I,575
r,818
1,5t5
1,5t5
r,588
1,585
No
runodcllrg
adjlltllsn
1m
100
1m
100
lm
1m
100
neiEdeled
Makt neit
2,051
t,119
2,041
1,788
1,788
1,791
1,788
fdilr.!
103
103
101
103
103
103
101
]]61
1355
4121
4123
4324
4325
1128
Shet gtl l€dtotni/
BCfuEor
FruithndA\€. Vemon th
FruithndAve Vemon lll
FudongPl. vemon th
FurlongPl. vemon lll
turlong Pl. vemon lll
FudoqPl. Vemon ll
FurloqPl vernn lll
tx) s
lul
l
Adjurl]reot to fu 8€mhmarl Rert
Sireadiultment
Garage Adjustment
Remodeling Mjustmenti
Appliantes
Refrigerator
Stove
Dishwash€r
Miqowave
Street addaess
16040 teffingwell Rd fl18
16040 teffingwell Rd fl22
10330 Downey Ave.
11mO woodruffAve.
As shown above,
$50 to $125. The
r,585
0.25 per rq.lt.
S50 for 2 Ci6 and Sl5 for 1 car
$lm
$18
S2s
$r0
S10
City Eedroom/bath
Whittier 2bedl2bath
Whittier 2bed/2bath
livrng size Remodeled Rent
950 Yes S1,70O960 No 51,575
Remodel-ing Adj us tment
The following is an example of the d.ifference before and after
remodeling. Based on our research, I.iving size does not
significantly impact the dlfference of rental- rates for
remodeling but rather it is a total- dollar difference. The
information is derived from MLS.
1,585
1,585
3bed/lbath
3bed/3bath
Difference
S12s
Downey
Downey
1540
1541
s2,2@
s2,1so 5so
the difference of rental rate for remodeling is
concluded adjustment for remodeLing is $100.
Adjustments of kitchen appl i ance sBased on the website (rentafridge . com) , the range of monthlyrental rates for 10-14 Cu.ft refrigerators is 523.99 to $26.99.The concluded adjustment for refrigerator is S25.00. This amountis applied to only the main gr.id because most of refrlgeratorsprovided by owners are standard types (10-14 cu.ft). However,
the city of Vernon provldes more expensive refrigerators basedon the remodeling budget, so the higher adjustment of $48 is
15032000N, RCS vernon Properties l2
applied to the rental conclusion. According to the website, the
rental rate per month for the refrigerator which have similar
price of the refrigerator which is provided by the City of
Vernon ls $48. Since there is not enough data for rental rates
of other appliances, the concluded adjustments of stove,
dishwasher, and microwave are derived from the rental rate of
refr.igerator based on thelr prices which are provided by the
client.
The above chart represents the market rental rate appficable to
each property. As mentioned earlier, a bench mark rent is
adjusted for any differences between each property and the
benchmark conclusi-on,
Photographs of several of the subject properties along brith
photographs of the rent comparabfes are found in the addendum of
this report.
If you have any questions regarding this analysis p1-ease contact
me.
Sincerely,
,.aZZ- f
Hee K, Yi
Certlfied General Appra i ser
AG 035644
Expies ll/L6/20L6
15032000N, RCs Vernon Propertles 13
Addendun
15032 000N, RCS vernon Properties 14
ceztification
15032000N, Rcs Vernon Properties 15
Certification
1, certify that to the best of my knorrledge and belief:
1, The statements of fact contained in this report are true and correct,
2. The reported analyses, opinioos, and conclusions are fimited only by thereported assumptions and limiting condltions, and is my personal,
impartial. and unbiased professional analyses, opinions and conclusions.
3. I have no present or prospective interest in the property that is thesubject of this report, and no personaf interest with respect to theparties invofved.
4. t have no bias with respect to the property that is the subject of thisreport or to the parties involved with this assignment.
5. My engagement .in this assignment nas not contingent upon developing or
repor:ting predetermined results.
6, My compensation for completing this assignment is not contingent upon the
development or reporting of a predetermined vafue or direction in valuethat favors the cause of the client, the amount of the vaLue oplnion andthe attainment of a stipulated result, or the occurrence of a subsequent
event directly related to the intended use of this appraisal.
1. My analysis, opinions, and conclusions were developed, and this reporthas been prepared, in conformity with the Uniform Standards of
Professional Pracc i ce.
B, I made an exterior inspection of the property that is the subject of thisreport.
9. No one else provided professional assistance to the person signing thisreport.
10. I am competent to complete this report in accordance r.rith the competencyprovision of USPAP.
z"zz- Z
Hee K. Yi
Certified General Appraiser
AG 035644
Expires 11/ 16 / 2076
15032 000N, RCS vernon Properties 16
Assuryrtions ar:d Linitinq Coaditions
150 32000N, Rcs vernon Propercies l1
2.
1.
6.
'7.
ASSI'MPTIONS AND LIMITING COIIDITIONS
As agreed upon with the client prlor to the preparation of this
appraisal, this is a Narrative Report.
This is a Sununary Narrative Report, which is intended to conpfy
wi-th the reporting requirements set forth under Standard Rule 2-
2(a) of the Uniform Standards of Professional Appraisal Practice
for a Surunary Appraisa-I Report. The information contained in thls
report is specific to the needs of the client and foi the intended
use stated in this report. The appraiser is not responsible for
unauthorized use of this report.
No responsibility is assumed for legal or title considerations.
Tltle to the property is assumed to be good and marketable unless
otherwise stated in this report.
The propeity is appraised free and clear of any or all liens and
encunbrances unless otherwise stated in this report.
Responsible ohrneiship and competent property management are assumed
unfess otherwise stated in this report.
The information furnished by others is believed to be reliable.
However, no warranty is given for its accuracy.
All engineering is assumed to be correct. Any plot plans and
illustrative materiaf in this report are included onfy to assist
the reader in visualizing the property.
It is assuned that there are no hidden or unapparent conditions of
the property, subsoil, or structures that render it more or less
vafuable. No responsibility is assumed for: such conditions or for
arranging for engineering studies that may be required to discover
them.
It is assumed that there is fulI compliance with all applicable
federal, state, and local environmental regulations and laws unfess
otherwise stated in this report.
It is assumed that alt applicable zoning and use regulations and
restrictions have been conptied with, unless non-conformity has
been stated, defined, and considered in this appraisal report.
3.
4.
5.
8.
9.
10.
150 32000N, RCS verno. Properties 18
11. Any sketch in this report may show approximate dimensions and is
included to assist the reader in visualizing the property, Maps and
exhibits found in this report are provided for .eadei reference
purposes only. No guarantee as to accuracy is expressed or implied
unless otherwise stated in this report. No survey has been Inade for.
the purpose of this report.
72.
13.
14.
It is assumed that the utilization of the land and interim use
improvements are within the boundaries or property lines of the
property described and that there is no encroachment or trespass
unless otherwise stated in this report.
The appraiser is not qualified to detect hazardous waste and/or
toxic raterials. Any conunent by the appraiser that might suggest
the possibility of the presence of hazardous waste and/or toxic
materiafs would require investigation by a qualified expert in the
field of environmental assessment. The presence of substances such
as asbestos, urea- forma ldehyde foam lnsulation or other potentially
hazardous materiaLs may affect the value of the property. The
appraiserrs value estimate is predicated on the assumption that
there is no such material on or in the property that would cause a
loss in vafue unless otherwise stated in thls report. No
responsibility is assumed for any environmentaf conditions or for
any expertise or engineering knowledge required to discover them.
The appralser's descriptions and resulting comments are the result
of the routine observations made durlng the appraisal process.
The distribution, if any, of the LotaI vafuation in this report
between land and improvements applies only under the stated program
of utillzation. The separate allocations for land and buildings
must not be used in conjunction with any other appraisal and are
invalid if so used.
Neither aLL nor any part of the contents of this report (especially
any conclusions, the identity of the appraiser, or the firm erith
which the appraiser is connected) shall be disseminated to the
public through advertisinq, pubLic refations, news sales, or other
media grithout prior written consent and approval of the appraiser,
15. Possession of this report, or a copy thereof, does not carry !.rithit the right of publication. It may not be used for any purpose by
any person other than the party to whom it is addressed without thewritten consent of the appraiser, and in any event, only withproper written quallfication and only in its entirety.
16.
15032000N, Rcs vernon Properties 19
Qualifications
I5032000N, RCS Vernon Properties 20
Hee K. Yi
10016 Pioneer Blvd. Suite 110
Santa Fe Springs, CA 90670
(714) 329-8336
e-mail :corporate@goldcoastappraisals.com
Qualifications
. Ten years experience in c.mmercial real estate appraisal industry in the Southern California
region; consultation, rental survey and analysis, feasibility studies, desk review and report
writing.. Assesses properties and all real estate value types for purchase and refinance lending
purposes as well as claims, lax re-assessments, liquidation and foreclosure, probate cases,
new constructions, and renovations.. Exceptional ability to simultaneously manage complex appraisal proiects while meeting
rigorous performance standards and demanding schedules.. Excellent project management, business, and interpersonal skills with the experience
required to remain highly focused and exceptionally productive in fast-paced settings.. Possesses intricate experiences and knowledge of Asian-American Community and its
banking and lending industries in the Southern California region. Fluent in Korean language
and culture.
Kev Achievements
. Appraised large hotels and motels in the following cities: Pasadena, Escondido, Cathedral
City Bakersfield and various small motels in the cities of Los Angeles and Long Beach.. Appraised an industrial land in Riverside with Eminent Domain lssues.. Valued Commercial land for the city of Long Beach.. Analyzed and appraised special use purpose (church) and office/retail mixed uses in Los
Angeles County.. Appraised small and large multi-family properties in Los Angeles, Orange, Riverside and
San Bernardino Counties.. Performed valuations for property settlement in divorce proceedings.. Completed fair rental valuations for tenants' rights attorneys.. Completed Fair Market Rental reports for HUD and private parties.. Appraised foreclosure and problem loan properties.. Appraised all types of properties for Federal Estate Tax Returns.. Appraised 12 medical buildings of Alta Med Health Services Corp. in Los Angeles County.. Low income housing for Restore Neighborhood Rehabilitation (City of Los Angeles).. Low income housing for City of Santa Ana.
Professional Experience
Gold Coast Appraisals, lnc.
JM United Appraisals lnc.
1 5 0l l0 rl0N, RCS Vernon 9roperLres
2005 to Present
2004 - 2005
2t
Areas of Soecial Competsnce
Endustrial Land
Dommercial Land
Besidential Land
Endustrial Construction
Gommercial Construction
Besidential Construction
Besidences
fAoartments (1-4)
fApartments (5-100)
rcooperatives
rcondominiums
![-ow Income Hou s ing
!Ot[ce s
Dingle Tenant lndustrial
[i/'lulti-Tenant I nd ustrial
Dhopping Centers
EAuto Service Centers
$pecial Purpose Properties
Education
Colleqe Deoree
BA Kyung Hee University, Seoul Korea
ADoraisal Courses and Seminars
2005 Fundamental of Real Estate Appraisals
2005 Legal Consideration
2005 USPAP Courses
2005 Math & Regulations for Appraisal
2006 USPAP Update
2007 lncome Approach
2007 Sales Approach
2007 Residential lncome
2010 Capitalization Rate
2008 USPAP Update
2010 USPAP Update
201 1 Highest and Best Use
2012 2-4 unit multi-family dwelling
2012 Expert Witness
2012 FHAA/A Appraising
2012 Advanced Residential Applications & Case Studies
License
Certified General Real Estate Appraiser, License #AG035644, Expires 11/16/2016
Verification Call: OREA (916) 322-25OO
15032 000N, RcS vernon Properties 22
subject Photographs
I5032000N, RCS vernon Propert.ies 23
33 61 Eruitland Ave, Vernon
33 65 Fruitland Ave, Vernon
15032000N, BCS Vernon Properries 24
Fruitland Ave, Street Scene
15032000N, RCS Vernon Properties 25
4 311 Furlong Pface, Vernon
4323 Furlong Place, Vernon
150 32000N, RCS Vernon Properties 26
4 324 Eurlong Place, Vernon
4 325 Eurlong Pface, vernon
15032000N, RcS vernon Properties 21
4328 Eurlong Pface, Vernon
Furlong Place, Stieet Scene
15032000N, RCS vernon Properties 28
Rental Photographs
150 32000N, RCS Vernon ProperEies 29
E
Laurel Pl, South Gate 412'7 E 6f" St, tluntington Park
PI, Los Ange Les 3677 Louise St, Lynwood
15032 000N, RCS Vernon Properties 30
24? E 9O'h St, l,os Angeles 10715 Mona BIvd, Los Angeles
8106 Lou Dillon Ave, Los Angeles 5130 Duncan way, South cate
150 32000N, RCS vernon Properties 31