2017-01-11 VHC Agenda Packet (Special)California 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
Special Meeting of the Vernon Housing Commission
Wednesday, January 11, 2016, 6:00 p.m.
Council Chambers
4305 Santa Fe Avenue
Vernon, CA 90058
Melissa Ybarra, Chairperson
Kyle Cooper, Vice Chairperson
Hector Garcia, Commissioner John Kriste, Commissioner Steven Froberg, Commissioner Steven Florman, Commissioner
Frank Gavina, 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.
PUBLIC HEARING
1. Approval of a Periodic Rent Adjustment Procedure for all City-Owned Housing Units
Recommendation:
A. Find that approval of the Periodic Rent Adjustment Procedure is exempt from California Environmental Quality Act (“CEQA”) review, because the activity, which is purely
administrative in nature, does not constitute a “project” as that term is defined under CEQA
Guidelines Section 15378, and even if it were a project, it would be categorically exempt from
Special Vernon Housing Commission Meeting Agenda
January 11, 2017
Page 2 of 3
CEQA review 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 public hearing on the proposed Consumer Price Index for All Urban Consumers Rent Schedule to obtain oral and written testimony; and
C. Adopt the Periodic Rent Adjustment Procedure.
2. Discussion of Rental Rate and Tenancy for 4323 Furlong Place Recommendation:
A. Find that the establishment of a rental rate for 4323 Furlong Place is exempt from the California
Environmental Quality Act (“CEQA”), because such action is an administrative activity that will not result in direct or indirect physical changes in the environment, and therefore does not
constitute a “project” as defined by CEQA Guidelines Section 15378, and that even if such were
a project, it would be exempt 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. Provide staff with direction on setting the appropriate rental rate for the newly remodeled City-
owned single family home located at 4323 Furlong Place (“the unit”); and
C. Provide staff with direction on establishing tenancy parameters for the unit and whether its availability should be reserved solely for disabled individuals.
PRESENTATION
3. Status of City Housing Revenues and Expenditures
DISCUSSION AND POSSIBLE DIRECTIVES TO STAFF
4. Report on the Establishment of the Unit-to-Unit Transfer Fee
ORAL REPORTS, PRESENTATIONS & COMMENTS FROM STAFF AND COMMISSION
MEMBERS
5. Brief reports, announcements, or directives to staff from the Commissioners and Commission Officers.
6. Upcoming Meetings:
A. Next regular meeting: March 15, 2017 at 6:00 p.m.
Special Vernon Housing Commission Meeting Agenda
January 11, 2017
Page 3 of 3
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.
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 5th day of January, 2017.
By: ________________________________
Maria E. Ayala, CMC
Secretary
RECENED
\aN 0 3 2011
,*ctt**t*tot
STAFF REPORT
CITY ADMINISTRATION
DATE:
TO:
FROM:
RE,:
January ll,20l7
Honorable Members of the Vernon Housing Commission
Carlos R Fandino Jr., City Administrator/ Commission Director fr f'Z-'l
Approval of a Periodic Rent Adjustment Procedure for all City-Owned
Housing Units
Recommendation
A. Find that approval of the Periodic Rent Adjustment Procedure is exempt from Califomia
Environmental Quality Act C'CEQA) review, because the activity, which is purely
administrative in nature, does not constitute a "project" as that term is defined under CEQA
Guidelines Section 15378, and even if it were a project, it would be categorically exempt
fiom CEQA review in accordance with CEQA Guidelines Section 15061(bX3), the general
mle that CEQA only applies to projects that may have a significant effect on the
environment; and
B. Hold a public hearing on the proposed Consumer Price Index for All Urban Consumers
Rent Schedule to obtain oral and written testimony; and
C. Adopt the Periodic Rent Adjustrnent Procedure.
Backsround
On November 9, 2016, the Vemon Housing Commission ("VHC") conducted a special meeting,
at which time it considered a report from the VHC's Rent Adjusunent Subcommittee. The Rent
Adjustment Subcommittee recommended generally that rents for existing tenants be adjusted
periodically based upon changes in the Consumer Price Index for All Urban Consumers ("CPI-
U") for the Los Angeles Area.
The VHC generally agreed with the recommendation of the Rent Adjustment Subcommittee. As
part of its consideration of the Rent Adjustment Subcommittee report and recommendation, the
VHC discussed possible components ofa rent adjustment framework. including a possible
maximum and a possible minimum annual rent adjustment.
Other jurisdictions within Los Angeles County also rely upon the CPI-U to set permissible rent
adjustments under each applicable rent stabilization/control ordinance. Each jurisdiction also
prescribes minimum and maximum permitted rent adjustments. By way of example, under the
City oflos Angeles Rent Stabilization Ordinance, rents may be adjusted annually within a range
of 3%o to 8% based on the CPI-U. Under the City of West Hollywood's Rent Stabilization
Ordinance, rents may be adjusted annually within a range of 0% to 7o% based on a calculation of
7 5%o of the CPI-U, rounded to the nearest one-quarter of one percent. Under the City of Santa
Monica's Rent Control Ordinance, rents may be adjusted annually within a runge of lYo to 6oh
based on a calculalion of 75%o ofthe CPI-U. rounded to the nearest one-tenth ofone percent.
Based on input from the VHC and a further review of this issue, staff has &afted the auached
proposed Periodic Rent Adjustment Procedure. The proposed procedure contemplates periodic
(and generally annual) rent adjustments based on 100% ofthe applicable CPI-U, with a
maximum annual increase of7% and a minirnum annual increase of 170.
As a reminder, the VHC is required to set rents at a "market" rate. Based on this requirement,
staff recommends using 100% of the CPI-U increase. Staffbelieves that in order to maintain
"market" rates, adjustrnents in rents should reflect 100% ofthe change in CPI-U, subject to the
maximum and minimum adjustments described herein.
As for a maximum increase, staff recommends the average of the permissible maximum
adjustments in Los Angeles, West Hollywood, and Santa Monica which is 7%. Staffbelieves
that any increase in excess of7%o in any one year would be excessive, and would be inconsistent
with the Vemon Rental Housing Policy, which provides in part that "[i]n setting a 'markel'
value, the VHC should remain sensitive to the unique industrial and commercial character ofthe
City of Vemon, including various environmental realities that are inherent in the City of
Vemon."
As for a minimum increase, stafl recommends 1%. Although rent must be set at a "market" rate,
staff believes that the Los Angeles 3% minimum rate increase may overstate a market rate
change and, therefore, is too high for a minimum increase. Staff also believes that some
minimum greater than zero is appropriate given historically rising costs associated with
maintaining the housing stock. As such, staff concludes that a 170 minimum annual adjustment
is appropriate.
To understand the implications ofthe foregoing, the following chart shows the annual percentage
rent increase for the Cities of Los Angeles, West Hollywood, and Santa Monica over the period
2009 -2016, based on changes in the CPI-U for the Los Angeles Area, and the percentage rent
adjustment that would have applied in Vemon if the proposed Periodic Rent Adjustment
Procedure had been in place:
CPI-U
(LA Area)
Los
Angeles+
West
Hollywood*
Santa
Monica*
Vemon
2009 -1.00%3.00%0.00%0.00%1.00%
2010 0.40o/o 3.00%0.25%0.30%1.00%
2011 3.10%3.10%2.25%2.30%3.10%
2012 2.20Yo 3.00%1.50%1.70%2.20o/o
Page 2 of 3
2013 0.60%3.00%0.50o/o O.5oo/o 1.00%
2014 1.70%3.00%1.25%1.30%1.70%
2015 0.70o/o 3.00%0.50%0.50%1.00%
2016 1.90%3.00%1.50%1.40%r.90%
*Cities were selected for comparison based upon their reputation for being tenant tiendly.
After balancing and weighing various applicable factors and considerations that affect rents, and
in light of the requirements of the Vemon Housing Rental Policy and other applicable laws, staff
reconrmends t}re adoption ofthe proposed Periodic Rent Adjustment Procedure which has been
approved by outside legal counsel.
Fiscal Imoact
If adopted, the Periodic Rent Adjustment Procedure should generate between l% and 7%
additional annual rental income from residential properties owned by the City.
Attschment
l. Proposed Periodic Rent Adjustment Procedure.
Page 3 of 3
City of Vernon
4305 Santa Fe Avenue
Vemon, CA 90058
(323) s83-88 r r
NOTICE OF PTJBLIC HEA-RING REGARDING PROFOSED RENTAL RATES F1OR ALL
HOUSING TJNITS OWNED BY TIIE CITY OF VERNON, INCLI,]DING TIIE RECENTLY
REMODELED I.]NIT AT4323 FT]RI.ONG PLACE
The Vemon Housing Commission will conduct a Public Hearing, which you may attend.
PLACE: Vemon City Hall
City Council Chambers
4305 Santa Fe Avenue
Vemon, CA 90058
DAIE & TIME: Wedncsday, January ll, Z)17, at 6:(X) p.m. (or as soon thereafter as the matter can be
heard)
PIJR.FOSE: To obtain testimony regarding the Proposed Rent Schedule for all housing units owned
by the City of Vernon.
DOCUMENIS FOR REVIEW: Proposed Rent Schedules Based on Consumer Price Index for Existing
and Prospectivey'l.,lew Tenans; proposed rental rate for the recently
remodeled housing unit at 4323 Furlong Place
ORAL COMMENTS: Any interested person may attend the hearing and make an oral presentation to the
Vernon Housing Commission at the time of the hearing.
WRITTEN COMMENIS: Any interested person may submit written comments prior to the hearing.
Written comment forms arc available at the Commission Secrerary/City Clerk's
Office and on the Vemon Housing Commission page of the City of Vemon's
website
housing+ommission)
Please send written cor nents to:
Anthony Zarate
City of Vemon
4305 Santa Fe Avenue
Vernon, CA 90058
Email: azarate@ci.vemon.ca.us
If you cha.llenge the adoption/approval of the Proposed Rent Schedule for all housing units owned by the
City of Vemon, or any provision thereof in court, you may be limited to raising only those issues you or
someone else raised at the hearing described in this notice or in written conespondence delivered to the City
of Vemon at. or prior to, the meeting.
The hearing may be continued, adjoumed, cancelled, or
further notice of a public hearing.
to a stated time and place without
Maria E. Ayala City Clerk
Dated: l2n9n0rc
Vemon Housing Commission
Periodic Rent Adjustment Procedure
Pursuant to Ordinance 1183 and the policies promulgated pursuant thereto, and
Chapter 2, Article XVII, Section 2.125 of the Vernon Municipal Code, the Vemon Housing
Commission ("VHC") hereby adopts the following procedure with respect to periodic rent
adjustments.
1. The VHC is govemed by the Vemon Rental Housing Policy, which
requires rents to be set at a "market" rate, as defined therein.
2. The VHC shall review rents on at least an annual basis. The VHC shall
make such adjustrnents to rents as may be required to ensure full compliance with the Vemon
Rental Housing Policy regarding the setting and maintaining of rents.
3. The schedule of rents for all rental units within the jurisdiction ofthe VHC
shall be updated as of January I ofeach year.
4. For existing leasees, the following procedure shall be followed:
a. Rents shall increase by the percentage increase in the Consumer
Price Index applicable to the Los Angeles area for All Urban Consumers ("CPI-U"), as
published by the United States Departrnent ofLabor Bureau of Labor Statistics, for the
most recent l2-month period ending September 30.
b. Staff shall determine the amount of the applicable increase and
shall advise the VHC ofthe presumed percentage increase at a VHC meeting as soon as
such information is reasonably available to Staff.
c. In the event the percentage change in the applicable CPI-U is in
excess ofseven p ercent (7%o), the rental rate increase shall be limited to seven percent
(7%).d. In the event the percentage change in the applicable CPI-U is less
than one percent (1%), the rental rate increase shall be one percent (1%).
e. At the regularly scheduled VHC meeting closest to January 1, Staff
shall prepare an updated rent schedule showing the amount ofrent proposed for each unit
as of January 1. The proposed rent increase shall be included on the agenda for this
meeting in such a manner to allow public comment and to allow the VHC to act upon the
proposed rent increase if it so chooses.
f. Existing leasees shall be given 90-days written notice of any rent
increase. Any rent increase shall become effective either on the first of the month
following 90-days written notice, or the first of the month following 90-days written
notice and the expiration ofa written lease for a specified term, whichever is later'
5. Notwithstanding any other provision ofthis Procedure, when a unit
becomes vacant, Staff shall evaluate whether the then current rent for the unit represents a
market rent. If Staff concludes, based on objective criteria" that the rent for the vacant unit is
below market, prior to leasing the unit to a new leasee, Staffmay increase the rent by up to 10%
without further action by the VHC. If Staffexercises this right, Staff shall report the rent
increase at the next VHC meeting. If Staff concludes that the rent for the vacant unit should
increase by more than 10%, Staff shall make a recommendation to the vHC, and the VHC shall
set the rent for the vacant unit.
Periodic Rent Adjustment Procedure
2lPage
6. Notwithstanding any other provision of this Procedure, if there are
material improvementVchanges/alterations to a unit, once completed, the VHC shall evaluate
and set an appropriate rent for the subject unit.
RECEIVED
JAN 0 5 201i
CIIY CLERK'S OIFICE
STAFF REPORT
CITY ADMINISTRATION
DATE:
TO:
FROM:
R.E,:
January ll,20l7
Honorable Members of the Vernon Housing Commission
Carlos R Fandino Jr., City Administrator/Commission Direc b, CFI{ WOriginator: Fred Cardenas, Interim Public Works and Water Superintendent ' '
Discussion of Rental Rate and Tenancy for 4323 Furlong Place
Recommendation
A. Find that the establishment of a rental rate for 4323 Furlong Place is exempt from the
Califomia Environmental Quality Act ('CEQA), because such action is an administrative
activity that will not result in direct or indirect physical changes in the environment, and
therefore does not constitute a "project" as defined by CEQA Guidelines Section 15378, and
that even if such were a project, it would be exempt 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. Provide staff with direction on setting the appropriate rental rate for the newly remodeled
City-owned single family home located at 4323 Furlong Place ('the unit"); and
C. Provide staff with direction on establishing tenancy parameters for the unit and whether its
availability should be reserved solely for disabled individuals.
Background
On March 17,2016, the Public Works, Water and Development Services Depaftnent (OepamenQ
advertised the notice inviting seald competitive bids for the complete renovation ofa single family
home located at 4323 Furlong Place. The bids for the work were received and opened on April 13,2016,
and St. George Groupe, lnc., was ultimately awarded the cont-act. The work performed at 4323 Furlong
Place consisted of refiubishing and ranodeling the entire unit of approximately 1,067 square feet. In
additiorL the construction also included the installation ofa permanent accessibility ramp, making the
unit fi:lly compliant with the American with Disabilities Act (ADA).
In additio4 staffrecently conducted an Open House for the unit, in an effort to gage the public's opinion
on the construction and the overall completion ofthe remodel and received several favorable comments
from existing tenants.
As a reminder, it is within the Commission's puwiew to set rents at a "market" rate when establishing
rental fees. Therefore, the Departnent solicited an appraisal from Gold Coast Appraisals, Inc., in order
to gauge fair and current market rates in the area. Because Vernon lacks the infrastructure to service
local residens and the subject property is located in an indusrial mnq at adversity factor was
ernbedded and downward adjusrnents were applied to the suggested market rate. The results of the
appraisal for 4323 Furlong Place indicate an estimated market rental rate of $ I ,798 per month.
According to Gold Coa* Appraisals' estimated market rate was consistent with fair market rates for
comparable units. The subject Rental Report was prepared in accordance with the reporting
requirements of 0re Uniform Standards of Professional Appraisal Practice. Additionally, Vemon's
adversity effect was applied as previously mentioned. Staff attempted to secure a second firm but the
only response received was from Gold Coast Appraisals. Stafl is gesenting this report to the
Commission for informafional purposes only, and is seeking direction from the Commission on the
establishment of an appropriate rental mte for this unit prior to secwing a tenant.
The other issue ofconcern is the fact that the wft at 4323 Furlong Place is now the City's only housing
unit that is flrlly compliant with current disabled access regulations, and staff is seeking direction on
whether to open the tenancy to the general public via the established lottery list or to offer the urit to
one of the City's existing disabled tenarts. Two existing tenants have already expressed an interest in
moving into the unit. It is recommended that the Commission makes a decision by March 2017 to
prevent firther revenue loss from the vacancy of the subject unit.
Attachments
I . Gold Coas Market Rental Repor! Dated December 1 , 20 1 6
City of Vernon
43O5 Santa Fe Avenue
Vemon, CA 90O58
(323) 583-EE r r
NOTICE OF PT'BLIC HEARING REGARDING PROFOSED REMAL RATES TIOR ALL
HOUSING UNTN OWNED BY TIIE CITY OF VERNON,INCLT]DING TIIE RECEI\TLY
REMODFT FD I,JNIT AT .a2 TURIONG PT,ACE
Ttre Vemon Housing Commission will conduct a Public Hearing' which you may anend-
PLACE: Vemon City Hall
City Council Chambers
43O5 Santa Fe Avenue
Vemon, CA 90058
DATE & TIME: Wednesdey, Jenuar] I l, A)17, et 6 p.m. (or as soon thereaftcr as tlre matter can be
heard)
PLIRFOSE: To obtain testimony rcgalding the hoposed Rent Schedule for all housing unis owned
by dr CitY of Vernon.
DOCLJMENIS FOR REVIEW: koposed Rent Schedules Based on Consunrer Price Index for Existing
and Prospectivey'l.Iew Tenans; propoced rtntal rare for the rccently
remodeled housing unit at 4323 Furlong Plrc
ORrIL COMMENTS: Any intercsted person may attend ttr hearing and make an oral presentation to the
Vernon Housing Commission at tle tirne of the hearing.
WRITTEN COMMENTS: Any interested person may submit wrinen comnrcns prior io tlE hearing.
Wrinen comnrcnt forms are available at the Commissioo Seuetary[ity Clerk's
Officc and on the Vernon Housing Commission page of dle Ciry of Vernon's
webSite t htt!:||1tt u !ll-\trl\(: ('mr)n'
housinq<ommisston )
Please send written comrrEnts to:
Anthony Zarate
City of Vemon
43O5 Santa R Avenr
Vernon, CA 90058
Email: azarate@ci vemon.ca.us
If you challenge rhc adoption/approval of ttp Proposed Rent ScHule for all tnusing units owned by the
Ciry of Vemon, or any provision thermf in court, you may be limited io raising only those issues you or
sonreone else raised u the hearing described in this notice or in wrinen corrcspondence delivercd to the City
of Vernon at or prior to, drc meeting.
The hearing may be continued, adjourned, cancelled, or rest'hedule'd to a stated time and place without
funher notice of a public hearing.
Dared: lY29/2016
- Maria E. Ayala City Clerkk,
GCA
( ioltl (irast .\pprairalr. lnr'
lml5 Pin..r Bhid, SuiL ll0
snh F. sp.hr, CA 90670Ptd. (J52) 55l-r0J8
FAX (56:) 651.1068
coaFa.@goldco.am..i.kco6
December l, 2076
scott R j.gg
Ci- ty of Vernon
4305 santa Ee Ave.
Vernon, CA 90058
Dear Mr. Rigg,
At your request, I completed my analysis of the monthly renEal
rate for the following residentia] property:
TyPe
2 Bedroom
street Address
4323 Eurlong Pl.
City Location
Ve rnon
Regardless of who pays for the at.tached market rental report, it
has been prepared for our client: the City of Vernon. As
specified by the client, the purpose of the appraisal is to
estimate current falr market rental, rate and the fair market
rental rate based on the provided remodel for the above
mentioned property. The client intends to use this report in
negotiating a rental rate for the tenant at this location.
The attached Summary Rental Report has been prepared in
accordance with the reporting requirements of the Uniform
Standards of Professional Appraisal Practice (USPAP) .
This RentaI Report may not be used or relied upon by anyone
other Ehan the above-mentioned client for any purpose
whatsoever, without the express written consenE of the
appraiser. If the client provides anyone else wiEh a copy of
thj-s report, such as a borrower etc., that person(s) may not be
150 39000, Vernon RenE Sulvey
entitled to rely upon its contents when makj-ng any decisions
about the property. As such the following limiting condition
applies:
Neither aII nor any part of Ehe contents of this report shall be
conveyed to any person or entity, other than the appraiser's or
firm's cfient, through advertising, solicitation mater.ials,
public relations, new, sales, or other media without the written
consent and appeal of the author, particularly as to valuation
conclusions, the identity of the appraiser or firm with which
the appraiser is connected, or any reference to the Appraisal
InstituEe or the MAI, SRA designation. Eurthermore, the
appraiser or firm assumes no obl-i.gation, Iiability, or
accountability to any third party. If this report is placed in
the hands of any one, but the client, the cl-ient shaLl make such
party(s) aware of aII the assumpEions and limiting condit.ions of
the assignment.
shoutd you have any questions regarding the analysis
concfusions found in the attached reporl-, please contact me.
Sincerely,
.11 'z r
Hee K, Yi
Certified General APPra.i se r
AG 03564 4
Expires ll/16/2078
or
150 39000, vernon Rent Survey
Table of contents
Cl ient
Appraiser.
Effective Date of the AssignmenL.....
Date of Report
Competency Provision.
ConfidentiaLity....
Surnrnary Eair Rental Report.
Intended User...
Intended Use....
ReaI Estate Location.
Overview of the Assignment.
Scope of the Assignment. . . . .
DefiniLion of Market Renc. . .
Neighborhood Description.
Zoning...
Property Description.
RenLal Analysis
Addendum.
Certification...
4
4
4
4
4
4
4
5
5
5
5
5
6
1
8
8
9
L2
13
Assumptions and Limiting Conditions .. " 15
Qualifications . . . . ....... 18
Subject Photographs - -.... 2L
RentaI Photographs . .. .. .. 23
160 39000, Vernon Rent Survey
Client
The City of Ve rnon
4305 Santa Fe Ave.
Vernon, California 90058
Apprai ser
Hee K. Yi-
Gold Coast Appraisals Inc.
10016 Pioneer BIvd. Suite 110
Santa Ee Springs, California 90570
Effective Datse of the Assignnent
The effective date of this assignment is Novernlcer 29, 2016,
Date of Report
Hee K. Yi wrote this report Decem.ber l, 20L6.
Conpet€ncy Provision
Hee K. Yi has the necessary educationaf background and field
experience to perform this assignment her qualifi-cations are
found in the addenda. She 1s a California certified General
Appraiser (AGo35544 ) .
confidentiali ty
The appraiser must be aware of, and compJ-y with, a]1
confidentiality and privacy Iaws and regulations applicable in
an ass j-gnment. Disclosure of confidential information is
permissible to professi-onaI peer review committees, excePt when
such disclosure to a committ.ee would violate applicable Iaw or
regulation. Confidential InformaEion means information Ehat is
either identified by the client as confidential when providing
it to an appraiser and thaL is not available from any other
source,' or classified as conf.idential or private by applicable
law or regulation.
Su.mary Fair Rental RePort
This Rental Summary Report complies wit.h the reporting
requirements set forth under Uniform Standards of Profess.ional
Appraisal Practice (UsPAP) as weII as those promulgated by the
Appraisal Institute. As such, it presents a summary of the data,
16039000, Vernon Rent Survey
reasoning, and analyses that were used in the appraisal process
to devefop an opinion of a current monthly rental- rate.
Intended Us6r
The City of Vernon is che intended user of this report.
Int€nd€d Use
The city of Ve rnon
monthly rental rate
Ve rnon .
Real Estate Location
TyPe
2 Bedroom
Stleet Address
4323 Eurlong PL
City Location
Ve rnon
intends to use this report in negotiating a
for a house that is owned by t.he City of
ov€rview of the Ass ignnent
Because nearly every house i-s owned by the City of Vernon, there
are no rental properties wi-thin the City boundaries that can be
surveyed to ascertain a market rental rate- ci-ty employees that
need to be housed in proximity to their work location can opt Eo
obtain housing in the citi-es and corununities that are adjacent
to Vernon. Huntington Park, South Gate, Maywood, East Los
AngeIes, Los Angeles' Bel1, Lynwood, and City of Commerce have
housing stock that is sj.milar to t.he Vernon locaEed houses.
Scop6 of th6 AsEignment
The appraiser performed Lhe following tasks in order to
ascertain the current market monthly rental rate as of November
29, 2016 and the market rental rate for the subject property
based on the provided remodel. The scope of work about the
remodeling of the property was provided by the client. GoId
Coast Appraisals conducted prior rental surveys on November 17,
2011 and August 27, 2015. The staff of GoId Coast AppraisaLs
inspected the interior and exterior of the property on November
77, 2Ol7 and inspected the exterior August 21 , 2075. The subiect
property is currently remodeled according to the client' The
appraiser didn't inspect for this current renLal survey as of
November 29, 2016 based on the needs of the client, thus the
information about the property was obtained from the prior
rental survey and the cIienE.
16039000, vernon RenE survey
. Reviewed the descriptions of City owned residential
Properties;
. Utilized internet rental sites and multiple Iisting leasing
information to obtain rental rates;
. Selected Ieased or for lease properti-es that have physical
characteristics Chat are similar to the subject propert.y;
. Conducted an exterior inspection of each rent comparab.Iei
o Reviewed aII the pertinent informati-on available for each
rental;
. Contacted owners and leasing agents to verify physical
characteristics of the rentals,'
. Analyzed the data making adjustments for the superior or
inferior characceristics Lhat impact rental rates;
. Made posicive or negative adjustments for those
characteristics that impact rents;
. ReconciLed the adjusted rents and reached a finaL rent
conclusion for each loca tlon;
Def ini tsion of l.tarket Rent
The most probable rent which a property wiII bring in a
competj-tive and open market under all conditions requisite to a
fair rent, the owner and tenant, each accing prudently,
knowtedgeably and assuming the rental rate is not affected by
undue stimuLus whereby:
Owner and tenant are typically motivated;
Both parties are weII informed or weII advised, and acting in
whaC they consider their own best interesti
A reasonable time is allowed for exposure in Ehe open market,'
Payment is made in terms of cash U.S. dollars or in terms of
financial arrangements comparable the reto .
160 39000, vernon Renl survey
Neighborhood Description
City of Vernon Locations
Industrial and commercial properties dominaEe the property uses
found in Vernon. Over the past several years most of the older
structures have been replaced with modern concrete tj-It-up
buildings designed for light and heavy manufacturing. Many cold
storage facilities have relocated to Vernon from the Central
Business District of Los AngeIes. Many of the industria.I uses
have access to rail road spur lines thaE are just a short
distance from the main freight carrying rail lines.
T,r" r i
! B.!rF ^{ ! l6! bbns. ; E6,,sa
t " rr-- i'qrie
&^i t c9.1-
.,ft".' "\."\
;--J cEs, J .r id,'rro.. 'r .ti.'d'y'\oj"/.{,fiJ;r.:
q- -q'11
' Tf'*:*i
;,., ,ri""'r};.3-r" i
15039000, vernor Rent Survey
Vernon's resi,dential properties consist of 18 singl,e famil-y
hornes and one apartment building aII of r"rhich are owned by the
City and occupied by City employees. These properties are
Iocated adjacenE Eo Ci.ty owned facilities and are surrounded by
privately owned industrial uses.
Because Vernon lacks the infrastructure to servi.ce loca.L
residents, they must utilize facilities found j-n the surrounding
Cities of Maywood, East Los AngeIes, HunLington Park, BeIl and
City of Conmerce. Access to these adjacent cities is via
Atlantic 81vd,, Slauson Ave., Bandini BIvd., Soto st., Alameda
SL. , Santa Fe Ave. and Washington BIvd. Vernon is also
conveniently Iocated to the Long Beach and Santa Ana freeways
which provide residents and busi.ness access not only to the
surrounding communi.ties buE to the Central 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 for
manufacturing uses.
Property Description
This home has a gas range, a refrigerator and a m.icrowave and
has l-ile counter tops in the kitchen. The bathroom has a tub
with an overhead shower, vanity, and tile wainscoting
surrounding the tub. The rooms have hardwood or vinyl flooring.
This home has a hot water tank, cenEral heating and ai.r
conditioning. It has a Iaundry room with washing rnachine and
dryer. The house has access to an individual storage space that
is located in the fenced rear yard. It has an assigned street
parking stall buE the tenants can also utilize the adjacent city
parking areas. The tenants pay for all utilities and Lrash pick-
up.
Unit #
4 323
Bedrooms Baths
Two One
Sq. Ft.
7,061
15039000, vernon RenE Survey
Rental Analysis
Rent Comparubilitl Grid
f,triEr.d U.rlei R!./ Sq. Fl
160f9000, Vernon Rent Survey
Rental Conclusion
Based on the Rent
Eurl,ong PI . as of
Proximity to Adversity
Size adjustment
Garage Adjustment
Condition Adjustment
Applicances
RefriBerator
Stove
Dishwasher
Microwave
Remodeling Ad i us tme nt
The following is an examPle
remodeling. Based on our
significantly impact the
remode.Ling but rather it
information is derived from
Comparability Grid, the market rent for 4323
November 29, 2016 is 91,798.
per sq. ft.
for 2 cars and 525 for l car
for Good and 5100 for Average
S40
s0.2s
5so
Sso
S48
S2s
S2o
Sro
Proximity to Advers i tY
The subject property j-s located in the area of industrial zone.
This neighborhood is not typical for residential properti-es.
Thus downv,rard adjustments were applied to the comparables for
their superj-or Iocations.
of the difference before and after
research, living size does not
difference of rental raLes for
is a total dolIar difference. The
MLS .
Street address
15040 LeffinSwellRd f18
16040 Leffingwell Rd [22
10330 Downey Ave.
llom WoodruffAve.
City Bedroom/bath Living size Remodeled Rent Difference
whittier 2bed/2bath 95o Yes S1,7m
whittier 2bed/2bath 960 No 51,575 5125
Downey 3bed/3bath 15,O Ye'
Downev 3bed/3bath 1541 No
s2,200s2,1s0 sso
As shown above, the difference of rentaf rate for remodeling is
950 to $125. The concluded adjustment for remodeling is 9100.
Therefore, the comparables with average conditj-on need upward
adjustment of 5100 and with good condition for $50.
Based on the websiEe (rentafr ge.com), the range of monthJ-y
renEal rates for 10-14 cu.ft refrigerators is $23.99 to $26.99.
The concLuded adjustment for refrigerator is 525.00. This amount
is applied to only Ehe main grid because most of refrigerators
16039000, vernon Rent survey 10
provided by owners are standard types (10-14 cu.ft) . However,
the city of Vernon provides more expensive refrigerators based
on the remodeling budget, so the higher adjustment of $48 is
applied to the rental conclusion. According to the website, the
rent.al rate per month for the refrigerator which have similar
price of the refrigerator which is provided by the City of
vernon is $48. Since there is not enough data for rental rates
of other appliances, Lhe concluded adjustments of stove,
dishwasher, and microwave are derived from the rental rate of
refrigerator based on their prices which are provided by the
client.
The above chart represents the
each property. As mentioned
adjusted for any di f fe rences
benchmark conclusion.
market rental rate applicable to
earlier, a bench mark rent is
between each property and the
Photographs of Ehe subject property
the rent comparabLes are found in the
along with pho Lographs
addendum of this report.
of
If you have any questions regarding this analysis please contact
me.
Sincerely,4z-z
Hee K. Yi
Certrfied General APP rai ser
Ac 015644
EKpires 7l/ 16/2018
160 39000, vernon Rent survey 11
Addendurfl
15039000, vernon Rent survey t2
CertificaCion
16039000, vernon Renc Survey 13
Certification
I, certify that to Ehe best of my knowledge and belief:
1. The statenents of fact contained in this report are tlue and correct.
2. The reported analyses, opinions, and conclusions are limited only by the
reported assumptions and Iimiting conditions, and is my personal,
impartial, and unbiased professional analyses, opinions and conclusions.
3. I haue no present or prospective interest in the property that is the
subject of thls report, and no personal interest with respect to the
parties i-nvolved.
4. I have no bias with respect to the property that is the subject of t.his
report or to the Parties involved $rith this assignnent.
5, My engagenent in this assignment was not contingenE upon developing or
reporting predeLernined results.
5. My compensation for completing this assignment is not contingent upon the
development or reporting of a predetermined vaLue or direction in vaLue
that favors the cause of the client, the amount of the value opinion and
the attainment of a stiPulated result, or the occurrence of a subsequent
event directly rel-ated to the intended use of this appraisal'
1. My analysis, opi.ni-ons, and conclusions were devel'oped, and Lhis report
has been prepared, in conformity with the Uniform Standards of
Profes s iona I PracEice,
8, I have not physicaLly inspected the subject pr:operty for the date of
value.
9. No one else provided professional assistance to the person signing this
report.
10. I am conpetent to complete this report in accordance with the competency
provislon of USPAP.
z+zZ- f
Hee K. Yi
Certified General App ra ise r
AG 035644
Expires I1/15/2076
I5039000, vernon Bent survey 14
Assuqrtions and Lituitinq Conditions
160 39000, vernon Rent survey 15
ASSI'MPTIONS AND LIMITING CONDITIONS
1. As agreed upon with the client prior to the preparation of this
appraisal, this is a Narrative Report.
2. This is a Surmary Narrative Report, which is intended to conplywith the reporting requirements set forth under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice
for a Sunrnary Appraisal Report. The infornation contained in this
report is specific to the needs of the client and for the intended
use stated in this report. The appraiser is not responsible for
unauthorized use of this report.
3. No respons j-b j.lj. ty is assumed for legal or titl-e consideraLions.Title to the propelty is asslrmed to be good and marketable unless
otherwise stated in this report.
4. The property is appraised free and clear of any or aII liens and
encumbrances unless otherwise stated in this report.
5. Responsible ownership and cornpetent property manaqement are assumed
unless otherwise sEared in this report.
6. The information furnished by others is believed to be refiable.
However, no warranty is given for its accuracy.
AII engineering is assumed to be correct. Any pl-ot plans and
ilfustrative material in this repo!t are included onl-y to assist
the reader in visualizing the property.
'7.
3.It is assumed Ehat there are no hidden or unapparent conditions of
the property, subsoil, or structures that render i.! more or less
valuable. No responsibility is assumed for such conditions or: for
arranging for engineering studies that may be required to discouer
them.
9, It is assumed that there i-s fuIl compliance with a.II applicable
federal, state, and local environmental regulations and laws unless
othervJise stated in this report.
10.It is assumed that all applicable zoning and use regul-ations and
restrictions have been comptied with, unless non-conformity has
been stated, defined, and considered in this appraisal report.
16039000, vernon Rent Survey 76
11
L2
It .is assumed that the utilization of the land and interim use
implovements 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 materials. l\ny corrunent by the appraiser that might suggest
the possibility of the presence of hazardous waste and/or toxic
materials would requj.re investigation by a qualified expert in the
field of environmental assessment. The plesence of substances such
as asbestos, urea- formaldehyde foam inslllation or other potentially
hazardous materiaLs may affect the value of the ploperty. The
appraiser's value estirIEte is predicated on the assulnption that
there is no such material on or in the property that would cause a
loss in value unless otherwise stated in this report. No
responsibitity is assumed for any envirorunental conditions or for
any expertise or engineering kno!.rledge required to discover then'
The appraiser's descriptions and resulting comments are the result
of the routine observations made during the appraisal process.
The distribution, if any, of the total valuation j.n this report
between tand and improvements appLies only under the stated program
of utilization. The separate allocations fo! land and buildings
must not be used in conjunction with any other appraisal and are
invalid if so used.
13.
14.Possession of this report, or a copy thereof, does not carry with
it the right of publication. Ic may not be used for any purpose by
any person other than the Party to whom it is addressed without the
lrritten consent of rhe appraiser, and in any evenL, only with
proper written quallfication and only in its entirety'
15. Neither all nor any part of the contents of this ieport (especially
any conclusj.ons, the identity of the appraiser, or the firm with
which the appraiser is connected) shaIl be disseminated to the
public through advertising, public relations, news sales, or other
media irithoLlt prior written consent and approval of Lhe appraiser.
I6039000, vernon Ren! Survey l1
QEalifications
I60 39000, vernon Rent Survey 18
Heo 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 commercial real estate appraisal industry in the Southern California
region: consultation, rental suNey 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, tax 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.o 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 multijamily 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 anorneys.. 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 ExDerience
Gold Coast Appraisals, lnc.
JM United Appraisals lnc.
2005 to Present
2004 - 200s
15039000, vernon Rent survey 19
Areas of Special Comoetence
Endustrial Land
Gommercial Land
Besidential Land
Industrial Construction
Gommercial Construction
Besidential Construction
Besidences
TAoartments (1-4)
fAoartments (5-100)
fPooperatives
Gondominiums
llorv Incone Houring
EO tlice s
Gingle Tenant lndustrial
E\/lulti-Tenant Industrial
TEhopping Centers
Buto Service Centers
Dpecial Purpose Properties
Education
Colleqe Deqree
BA Kyung Hee University, Seoul Korea
Aooraisal 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
20'10 USPAP Update
2011 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 11116/2016
Verification Call: OREA (916) 322-2500
16039000, vernon RenE Survey 20
Subject Photsographs
I5039000, vernon RenE Survey 2l
43:3 Furlong Place, vernon
Eurlong Place, Street Scene
16039000, Vernon Rent survey 22
Rental Photographs
16039000, vernon Rent Survey 23
Ange Ies
Los Angeles
24
ll"0 LiberEy BIvd, South 6ate
1409 S. vancouver Ave, Los Angeles
16019000, vernon BenE survey
RECEIVED
JAN 0 5 2017
CITYCTTRKSOFRE
STAFF REPORT CA6
PUBLIC WORKS, WATER & DEVELOPMENT SERVICES
DEPARTMENT
REGEIVED
JAN 0 t 2017
CITY ADMINISTRATI()N
DATE:
TO:
FROM:
RE:
January ll,20l7
Honorable Members of the Vernon Housing Commission
Derek Wieske, Director of Public Works Water and Development Ser"ices?q/
Originator: Anthony Zarate, Administrative Secreta+$'
Status of City Housing Revenues and Expenditures
Recommendation
It is recommended that the Housing Commission receive and file a summary report on the status of
City Housing's revenue and experse for Fiscal Year 2017.
Background
At its special meeting of November 9, 2016, the Vemon Housing Commission directed staff to
provide a status report of the maintenance expenses and rent revenues under City Housing.
Throughout the year, the City has implemented several housing improvements, including but not
limited to, replacing caryets, installing new fixtures, new measures for pest contol and providing new
roofing on three homes. However, by far the largest project over the past year is the ongoing City
Housing Remodel of the six remaining City-owned, single-family dwellings that were not remodeled
when the other homes were addressed in 2008-2009. For the purpose of this staff report and per
direction of the Commission, expenses from capital improvement projects such as the housing
remodel and revenues from any possible sale of real property will be excluded.
The Departrnent of Public Works, Water and Development Services budgeted a total of $300,000 in
Fiscal Year 2016 - 2017 under its Housing Division. As of November 30, 2016, Housing expenses
are $94, I 6 I . These experses include property fees, maintenance requests and minor repairs brought to
staffs a$ention by tenants and from the armual inspections performed earlier this year. It is anticipated
that maintenance expenses will continue to be ongoing since there are several improvements currently
rmderway, including the installation ofirrigation systems and new cabinets.
Similarly, as of November 30,2016, City Housing revenues are $123,300. For this time period, staff
budgeted $165,000. However, lower revenues have occurred as a result of present vacancies.
Currently, six units are vacant and not generating any revenue. One of the six writs is the recently
remodeled housing unit on Furlong Place. The second unig on Fruitland Avenue, will be used for the
permanent relocation of existing tenants to accommodate the Housing Remodel Project. The third and
fourth units arc vacant apartnents. One of the vaqmt apartrnents is cunently being offered to the
general public based on fte lottery esablished this pas June and the second is being offered to the
tenants in non-remodeled unirs based on the hiority Interest List esablished at the Commission's
November lottery drawing. The remaining two unis are the townhomes located in Huntington Park.
They were recently approved for sale by the City Council. It is anticipated that the sale of the two
townhomes will generate approximately $800,000, minus related selling and fix-up expenses.
Table 1 reflects revenues and expenses from Fiscal Year 2015-2016, for the most recent, full fiscal
year. The underspent expenditures of$795,119 are primarily the result of the delay in starting the
Housing Remodel Project until the current fiscal year.
TABLE I
FY 20112016 Actual FY 20142016 Budget FY 20112016
Variance
Revenues $102,750 $137.500 $(34,7s0)
Expenditures $(r 84,737)(979,856)795.fi9
More recently, Table 2 reflects this year's status up to November 30,2016. Similarly, to Table I
above, the $395,767 positive expenditure variance is the result ofa timing difference in the startup of
the Housing Remodel Project.
TABLE 2
Year-to-Date Actual Year-to-Date Budget Year-to-Date
Variance
Revenues $123.300 $16s,000 $(41,700)
Expenditures s(94,161)$(489,928)$395,767
Conclusion
The Departnent of Public Works, Warer and Development Services is workhg diligently with the
City Administraror's Office and the Finance Departnent to monitor costs in ord€r to stay within
budget and accomplish the required plarured remodel work. h additiorl the sales of the two
townhome rurits will be done in the near t€rrn to take advantage of the still existing attractive mortgage
rales. A competitive selection process will be followed to ensure that a highly qualified real estare
broker will be an important element in this effort.
Fiscal Imoact
There is no fiscal impact associated with receiving this $ants report.
Attachments
None.
Page2 of2
REGEIVED
JAN 05 2017
c[YcttRKs0mcE
RECEIVED
JAN 0 3 2017
CITY ADMIi{ISTRATION
v(6STAFF REPORT
CITY ADMINISTRATION
DATE:
TO:
FROM:
RE:
January ll,20l7
Honorable Members of the Vernon Housing Commission
Carlos R. Fandino Jr., City Administrator/ Comrnission Director
Originator: Michael DeFrank, Public Works Water Project Coorilinal,or 4)
Report on the Establishment of the Unit-to-Unit Transfer Fee
Recommendetion
Receive and file an informational report on the establishment of the $1,000 unit-to-unit transfer
fee, as adopted by the Vemon Housing Commission on September 19,2012.
Backqround
At a Vemon Housing Commission C'VHC) meeting on July 18, 2012, an existing tenant in
attendance brought up the subject of unit-to-unit transfers. As a result, the VHC directed staff to
prepare a draft document outlining a proposed unit-to-unit transfer procedure.
On September 19,2012, the VHC adopted the Unit-to-Unit Transfer Procedures, which included
a $1,000 transfer fee. The $1,000 transfer fee was intended to offset some of the administrative
and maintenance costs incurred by the City in preparing a vacant unit for funre occupancy.
Based on the City's experience since the adoption of the Unit-to-Unit Transfer Procedures, City
staff has leamed that most vacant units not only require a good cleaning, but also they typically
require City staff to perform the following tasks:
o Changing out exterior door locks.o Shampooing carpets and cleaning floors.o Performing general patching and painting.o Performing maintenance on appliances.o Performing maintenance on air-conditioning and heating systems.o Cleaning and manicure yards and grounds.o Cleaning garage, ifapplicable.
When taken into account, all the work that typically goes into preparing a unit for occupancy, the
fee of $1,000 is acrually reasonable. A recent review of past records shows the cost to prepare a
vacant unit for unit-to-unit transfer typically exceeds $1,000. That said, the unit-to-unit ransfer
fee was never intended to cover all cost incurred by the City. Rather, it was established at $1,000
to cover some of the costs for preparing the typical unit requiring minimal repairs as well as to
discourage inconsequential requests.
Fiscal Inpact
There is no fiscal impact associated with receiving this report.
Attechments
l Original Staff Report for the Unit-to-Unit Transfer ProceduresL Minutes of the VHC meeting dated September 19,2012
2. Adopted Unit-to-Unit Transfer Procedures
Page2 of2
STAFF REPORT
VERNON HOUSING COMMISSION
RECEI ED
sEP I 3 2012
clfl cttRt(,s oFFICE
DATE:
TO:
FROM:
RE:
Scptembcr 12, 2012
Eonoreble Vcmon Houshg Comulrsiou
Mark C. Whitrorth, Commbslon lllrccto
Unlt-to'Ualt Traufer Prccodurcs
Backstound
At the July It, 2012 Housing Commission meeling, an existing tenarl in attendorce brouglrt up
the subje+t of unit-to-unit mnsfcrs. As such, the Commision directed stalf to trcpare a drafi
document outlining proposd unit+o-unit uansfer procedrres for discussion at thc ncxt meeting.
The subject of unit-to-rmir uansfcrs is something that was previously discussed with the first
subcommittee formed to develop the Vemon Rental Housing Policy and identi$ and address
various operating procedures. which consisted of Chairman Gustafsoq Vice Chairman Belluny,
and Commissioner Haskell. lt is salf s recollcction that with the development and
implementation of the lonery process for potential new leasees, which is open to everyorrc,
including current tenalts, it rlzs deemed unnecessa4r to have a separate policy/procedur€s thal
provided existing tenants an oppotunity to transfer to different units.
Presumably. any uansfer policy/procedures would also give existing renants a potentially unfair
priority over porcntial new leas€es to unis as they become available. It could also double or
more than double the unit-prepamtion work performed by City staff. For example, if, when a
unit becomes vacant, m existing teronl tranderc to that unit and the ncw leasce takcs thc existing
tenant's unit, stafr sould have to perform new occupancy prcparalory wort in both units (i.c.
paint, shampoo carpet, clean floors, re-key, etc.). and additional units if more thrn one Eansfer
were occuning at the same time.
It should be noted that, pursuant to Section 4 of the Appeal Procedurcs for Existing Tenans
Experiencing Transitional Hardship adoptcd July 18,2012, existing renants with s Financial
Hardship will be given a priority to lease a more Bffordable unit. This is complercly indepeadent
ofany proposed unit+o-unit ransfer procedures that may be adopted.
At the Commission's rcqu€sl. $alf has prcpared a draft of potential unit-to-unit transfer
procedures lo facilitate a discussion on the topic at the nexr meeting.
@
Strtrrecooncads thc Horsirg C.orraissim Fohibit rnit-b{Dit tnrftrs rnd na adopt my
rclacd proccdurcs Strf belierm fu omtu loucry poccss ptovidcs ctrerprc, iDdvli.g
cxighg tcoas, sufficfud od hir opportrnity to lcesc a particulr City-oud uit Howevcr,
if thc Cannission doca wistl to dopt unit-tottoit hurftr pmccdmq saffrrould rcconncod
6c dtrchcd propNl.
Vcraon Hosing Cmnission
Unit-b'Unit Trasftr Proccducs
Dtscnsstoa DtS Scpttilo 19, 2012
Any lcascc of a City of Vonoo oud huring uit mry rcqucst b EaEftr to ay
othcr City.oumcd unit rryoo avaihbility, prsunt to th foUowing coditioas md poccducs
l. All tmrftr rcqucss mrst be submitd ia siring by thc lcascc on the
aneclrcd Unit Trm$r Rcqucst Foro.
2 A lcasce Eust havc occupicd his/hcr tbcn currat unit for r nininum of one
ycar pria to submining a Unit Trao*r Rcqrcst Fum.
3. A mximum of ore Unit Tmnsftr Rcqucsn Form per lcrcc will be acccptcd in
any caladff ycr Ed shdl bc valid fa that calcndar ycar only.
4. Unit Transfer Rcquest Forms shall be acceptcd anytinc lhrcughoa thc yca
ad shall bc randomly nnk odcred ofto I urait list trough thc same loucry
proccss conductcd each Jrme and Deccober for potartid ncw lcasces. Tbre
$all bc no priority girrn to first rcspondcrs for unit transtcr rcqneSs.
5. Afta the priority giveu to existing leasces with a Fiaancial Hardship pursuant
to Sccion 4 of rhc Appcal Pmccdues for Exising Tcnants E tpedcociag
Trarlsiti@d Hrdship doptcd July 18, 2012, thc following ordcr shll bc
follouied. Whcn a vacmt housitrg unit is Eady for lersing thc vacant uait$dl first be of&rtd to thc lcascc ufro is 6rst on thc Unit TraDsfcr Wait List
thot was in eficct at the timc thc housing rmit becam vacurt- If that leescc
cittrr docs not wam to occrryy the vacat unig or dc not qualifr for thc
vacmt unit, thcn the vacmt unit shall bc oficred to tbe next leascc on the Unit
Transfer Wait List If thc vacant udt hrs becu offercd m all lcasccs on trc
ryplicablc Unit Transfcr Wait List, md mnc of thc lcasccs eitbcr \raEB to
occupy tbe vacant uit or qulifies for thc vacant rmit, thcn the 'racancy slull
bc offcred to thc apropriate pcrson on ttc *ait list for potcntial ncw lcasccs
in accordamc with thc proccdurcs for that wait list-
6. A uaosfer fec of$1,000 shall be due upon approval ofa ransfcr rcqucst to
cover the costs associCcd with prcpcing thc unit for ncrr occrpancy.
7. Any leasee tmsfaring lo I difraent unit will imnediacly pay tbc then
established ma*ct rent for thc uoit trarftrred to. This will rcquirc a review
and dacroiaation of the lcascc's credit worthiaess to lcase such rmit
2012
Vernon llousing Commission
Unit Transfer Request Form
Full Leasee Name:
Current Unit Leased:
Transfer Unit(s) or Unit Tyle(s) Requested:
Reason(s) for Transfer Request:
Unit Transfer Req[cst Forms are effcctivc only for the calcnder ycer in which ttey ere
submitted. All forms rtceivcd shall be randomly ordered st erch June and l)eceuber
Housing Comnrission Dccting to creaic e writ list for the following scmi-ennud period.
Those on te wait list crerted h June rre rutomrticrlly eatcrcd into tbe Dccembcr lottcry
for thc samc year, provided thc-t err still on thc wait lfut whcn the Dcccmber lotter.v is
conducted.
Unit Transfer Requcst Forms must be reccived by 5:00 p.n. the dry beforc the rtgular
June and Dccember mcetings in ordcr to be ellgiblc for tbe writ lbt crcat d rt clthcr of
thosc mcctings. The Dccember 20t2 dcadlinc ls es follows:
. December 13, 2012, 5:00 p,m,
Plerse submit complotcd foms lo tbc Conmhllon Sccrctrr?lCity Clcrk'r Ofiicc via:
. Regular mail: Vernou City HEll, 4305 SrDir Fc Avcnuq Vemoa, CA 905t; orr Emeil: rb:rrcia6i-,ci.vernon.cu.us
Prepare.l 09/ l9/12
MINIITES OF THE RESCHMI'LED VERNON HOUSING
COMMISSION MEETTNG HEI,D WEDNESDAY SEPTE!4BEp'. L9, 20T2,IN THE COIJNCTL CHAMBER OF THE CITY HAIJJ IOCATED
AT 4305 SANTA FE AVE{I'E. VERNON, CAIIFORNIA
MEI\4BERS PRESEMr: Eric Guatafson, William Davis, Michael
Hughes, Henry HaEkell, aIId Hector Garcia
MEMBERS ABSENI: Reno Bellamy and cabriel Early
The meet.ing wae caLled to order at 5:00 p.m. by the Chairperson.
Chairperson cusEafson led the flag salute.
Legal CounEel Sluart. Levitson reported Ehats Ehe MinuEes for t.heJuly :t8, 2012, are not awailalrle aIrd are removed from Eheagenda. Leviton alnounced EhaE Willard Yamaguchi is no longerCity CLerk, and thats Dana Reed was now serving aa Ehe Interim- City Clerk untl1 the posiEion j.s permanenE.Iy filled. In Reed's
absence, LeviE,on will perform Ehe dutsies at this meeEing
normally performed by E,he CiEy Clerk.
Levj.t.on announced Ehat this hras the time alloEted for pubtic
comment. Ttre Chairperson inquired whether anyone in the
audience wished t.o address Ehe Comniseion. No one responded.
t{TNIITES
1. MinuteE of Ehe Regular Vernon Housing Commission !,leetingheld alune L4, 2012.
chairperson Gustafson noEed a tlpographicaf error on page six,third paragraph.
IE r,ras moved by DavLs and seconded by Hughes to E,alrle EheMinutes unEil the next meet.ing Eo a1low for sufficient Eime tsoreview. Motion carried, 5-0
NEW BUSIIIEEE
. 1. Pot,ent.ial adoption of a unit-to-rmit tranEf er procedures.
Legal Counsel Stuart. Levj_tson advised that. staff is opposed to a
. policy, but has provided a proposed unit-to-unit tranEferprocedure.
t
vernon Housing commission Meeting Minutes
sepEember L9, 2ol2
commissloner Hughes opined Ehat the proposed procedure provides
Eufficients gruidance and financial partictpaEion that would
discourage inconsequenElal requesEs, buE providee an oPport'unity
for Ehose that need iE. Hughes is in supPort. of Ehe policy.
Commissioner Haskell sEatsed EhaE Ehe Commlssion should do all it
ca.rl Eo saEisfy the residentE' needs. Haskell does noE
understand wh]/, sEaff is opposed Eo Ehe Procedure, and shares
Hughes' supports of Ehe poliey. He, hohrever. haB eome questions '
L,eviEon reporEed on tshe proposed procedure and advised thaE the
general object was t,o create a level of fairneee. By using a
similar IoEEery structsure, tshe Commission avoids creat'ing
preferences. Secondly, considering the financial hardship to
Ehe Citsy, feee for uniE-to-unit transfers are recommended '
Commissioner Garcia inquired whether transfers were limited to
vacant unit.s or are Ewaps among Eenants aIlowed. In response,
LeviE.on advised that the issue had not been conEemplatsed; tshe
procedure is lntended t.o address vacanE units.
Directsor of community servicee and waEer, Kevin Wilson inquired
whether Ehe loss Eime in renE was Caken inEo coneideraEion'
Wilson recommended Ehat a monEh's worth in rent be added.
Coffitrissioner Haekell questioned the need for an entire monEh'
wilson explained tshats Ehe vacatsed unit will need tso be cleaned
before iE, can be leased.
LeviEon advised Ehats the loss is caPtured in the feeE, buE thats
the procedure could requi.re a $L,000 fee plus a mont'h's rent'
Commissioner Hughee opined EhaE Ehe policy as drafted is
sufficienE.
Leviton suggest.ed thaE afEer implementation, if the procedure
creates uninEended consequences, Ehen iE can be revisitsed'
ClarificaEion was sought on wheEher the Commission was in favor
of the procedure.
It was moved by Hughes and seconded by Davis to adopts a unit-tso-
unit transfer procedure ' Motion carried, 5-0.
Levitson staEed tshaE the coftEniEsion has Ehe proposed procedure
and opened up for discussion.
Page 2 of 8
I
Vernon Eousing Commj.ssion Meetsing MlnuE,esSeptember 19, 2Ot2
Commissioner Hughes quest.ioned E.he necessi-ly for the first foursCeps. He recommended notifying aII t,enants, allowing forsufficienE t.ime to respond. If E,here is more than one request,t,hen a lotstery should be conducted. He does not see the meritin requiring Eenants to submit their names in advance.
LeviEon e:q>tained EhaE. E,he inEent was to mirror Ehe proceduresas Ehe currenE. lot,tery system and provide some level offormality and transparency. This will also allow sEaff to
manage Ehe tranEfer requests effectivety. He noted Ehat theprocedure limits Eransfers Eo one per calendar year. Thefinancial considerat,ion will effectively discourage randomrequest.s for E.ransfers. zurthermore, there is a preference for
E,hose wiE.h financial hardships. Leviton not.ed that under theCransfer procedure the markeE. rentsal, rates are effecEive
immediaEely, which is a further dj.sincentive for an
i.nconsequenE.ial requesE..
fndependent Reform Monitor .Tohn Van De Kamp suggeaE.ed Ehats Ehepolicy be adopted su.bj ect t,o public contrnenE. Leviton clarifiedthat the Commission has two opEions, eiEher continue to work on
Ehe procedure as a tent.ative draft until Ehe nexE meeEing, or
adopE, the procedure, publicizing it. to Ehe resident.s, arldrequest.ing public comment. The leve1 of urgency would besigmificant to whether a procedure should be adopEed at t.hecurrent meetingi.
Assist.anc to Citsy AdminisErator KrisEen Enomoto reporued t.hat
tshere haE been at leasE, one request for a transfer.
Chairperson cust.af son recommended that.
and a11ow for public corfinents.
It. waE moved by Hughes and seconded by
propoEed procedure, publicize it. Eo thepublic cornmenE. The procedure is to bemeeting. MoE,ion carried, 5-0.
t.he procedure be adopted
Davis tso adopE. Ehe
residenE.s, and allow for
agendized aE. Ehe next
2. Authorizatsion to staff t,o prepare and issue a Reques E, forProposals for a third part.y property managemenE firm.
Legal Cou.nsel SEuart LeviEon advised Ehats Ehe request for athird party property maragemenE firm had been previouslydeferred, but, since Ehen policieg and procedureE have been
creaE.ed and adopted. Staff is requesE,ing auE.horization E.o issuea Request for Proposals ("RFp,,). proposals will include costss,
Page 3 of 8
at which points Ehe Commission ca.rl determine whetsher an outsside
firm is appropriaEe .
In response to Commissioner Davis's inquiry on whether the
Eervice would only address vacancies, Leviton explained Ehat lhe
firm will tsake on all Ehe resPonsibilities the CiEy is currently
conducting .
Chairperson Gustafson inguired on Ehe ciEy's associatsed costss'
fn relponse, Director of Communi Ey Services and water, Kevin
wilson reported Ehat for maint,enance work, Ehere is a separaEe
account; this however does noE include adminisErative cosEs '
civen the Cicy's currenE financial sit,uat,ion, Chairperson
Guseafson reconrnended EhaE the coEts between a Ehird party and
Ehe CiEy's expenses be comPared.
Irevit.on advised Ehat aalmtnlsEraEive hours are not Eracked, and
E,hat during E,he previous year when policies were first being
implementsed more Eime was sPent ' Its is unknown how many firms
will bid, buE that the RFP provides for a competiE'ive process '
AddiEionally, a third party would provide more neuErality
beEween the city and the housing sEock.
wilBon reporEed that there is one vacancy, but thaE the
Departments is ahort sEaffed and is addressing exisEing tsenanc
issues. The vacErncy has become low priority-
Commissioner Haskell EE,aEed that Ehe City has the abilicy fo
hire an outside contractor to address the need, so as Eo not
forego rental revenue, withouts the necessiEy for a third party
properEy management f irm.
In considerat.ion of the amount of Eime and money spend, CiEy
Administratsor Mark whitsworth advised tshaE the Commission v'il1
not be saving any money by keeping it j.n-house '
Independent Reform MoniEor ,John Van De Kamp oplned that
Chairperson Gustafson's concerns are aPpropriaEe - Van de Kamp
belleves t,he city should provide estimatsed costss thats include
Ehe legaf feeE, and the money sPenE tso ensure Ehe elections are
fair. Van de Kamp anEicipaEes that through the uEe of a
managemenE group Ehese kinds of cosEs will be minimal -
vernon Housing commj.ssion ueeEing MinuE,es
Septsember L9, 2Ol2
Page 4 of 8
t
Vernon Eousing Commj.ssion MeeEing MinuEesSeptember L9, 2OL2
It was confirmed Ehat Ehe Commission would have the finaldecision on whet,her to move forward. LevIEon further clarifiedthaE the request is only Eo prepare aIrd issue an RFp.
Chairperson Gustafson requested a cost comparison between the
RFP bid result.s and esEimat.ed Citsy coEts. LeviEon advised thaEa side-by-side compariEon could be conductsed.
Whitworeh advised that the loEtery system occupies staff E.ime
and increases cosEs. Leviton further added that Ehe e:q>ectaEionis Ehat a managemenE firm could be more cost, effectsive.
Commissioner Hughes is in favor of t,aking responsibility awayfrom City staff. The appearalce of conflict of interest is
removed, and possibly a reduction in costs. Hosrever, Hughes
reasoned Ehat. the CiEy could be criEicized for hiring yeE
anot.her ouEside consulEant. He concLuded Ehat Ehe benefits of a
management firm outweighed tshe negaEive views of hiring anoutside firm.
It vras moved by Haskell and seconded by Hughes t.o approve the
Request for Propogals for a third party property management
f irm. MoEion carrj-ed, 5-0.
3. Resolution No. VHC-5 - A Resolution of the Vernon Housing
Commission of the City of Vernon Setting the DaEe, Time and
Place f or Regular MeeE. j-ngs
Lega1 Counsel SEuart LeviEon recommended thaL Ehe Commissionconsider either a semi-annual meeting schedule, in conjunctionwith Ehe 1ott.ery, or a (ntart.erly schedule to meeE in the montshsof December, March, ,June and Septenber. Regardless, the
Commissj.on a hrayE has tshe option to call special meeEings,Eubject E,o Brown Act requirements. Leviton advised tshat by
December the Eecond loteery wilL be conduct.ed and mostprocedures would be adopEed.
Ehat the ConmiEsion meeE quErrterlyt Housing ProjecE is addressed. A11
t,ime, Commissioner Haskell believesEhe CommiEsion should be sensiEive Eo the residenEs.
Chairperson cust.afEon reported that Vice Chairperson Beltamyprefers a ThurEday or gecond Monday of the month.
Page 5 of I
vernon Housing commission MeeEing Minutes
Septem.ber 19 , 2Ol2
commissioner Hughes also has concerns over residents' abillt'y to
atEend and make their concerns known. Tt was agreed Eo make
public cotrfirenE availalcle both at the beginning and end ot Ehe
meetings.
The consensus is to meet quarterly, during the monEhs of
December, March, June and september, on the second wednesday at
5:00 p.m. It was moved by Hughes and seconded by Davis tso
appro;e Resolution No. vHC-6, wiEh Ehe proposed datse and time'
MoEion carried, 5-0.
ORAI, REPORTS & COMI@IT8
1. Citsy Council's final detsermination on commissiotl's
rec;mmendaEion to divesE, ciE,y-owned units in HunEingtson
Park.
CiEy AdministraEor Mark whitworth reporEed tshats per the
dirlcEion of lhe Commj-ssion t,he City Council revisited the
recomnendation to divesE tshe Hunt ington Park r'rnj'ts ' Coulcil
felt the timing was nots appropriate and moved Eo wait until Ehe
market value increased before divesting. whitwortsh soughE
direction on what Eo do t ith Ehe two vacant' units'
Chairperson GusEafson recommended tshat sEaff rent' Ehe tswo vacant
HunEingtson Park units .
IndependenE Reform MoniEor alohn van De Kamp recommended tshat the
Comm-ission provide sEaff direcE,ion as Eo t'he length of Ehe
leases. fn responae, WhitworEh advised thaE the sE'ardard one-
year lease agreemenE would be used.
2. SEaff updatse on the 52d Drive Houaing Development '
Director of CommuniEy Services and waEer, Kevin Wilson report'ed
on the selection Process announcing that MeEa Housing had been
seIecE.ed.
commissioner Haskell recalls Ehat at the last meeEing. wilson
had advised Ehat Ehe City would not have any financial
parEicipation and soughE clarificatsion on Ehe City's intsentionE 'in r"rp-nt", wilson advised EhaE a decision has nots yet been
made. Luc thats Ehe city coutd potentiaLly owrr Ehe underlying
Iand, nots tshe uniEs themaelves. The Citsy's Potsentsial
contribuEion needs tso be negoEiaEed. To furEher clarify, Wilson
Page 6 of 8
i
Vernon Houaing Commission MeeElng MinuEeESepEember t9 | 2OL2
e>q>lained the potenE,ial t,ax credit. LeviEon advised Ehat. t.heunknown varialrle is the value of the land which is a det.erminingfacE,or in calculat.ing how much will need to be contribuE.ed. ifany.
Wilson advised that t.he higher the houEing denalty, Ehe higherthe value of the land. Ttle City ie working wich iieEa uousing onEhe densiEy, and is confidenE. in their e:girience.
Leviton advised that t,he project will be classified asaffordalrre housing and that the proj ect.ed rent i.s not far fromEhe CiEy,s market renE .
3. Staff updaEe on the t.ransitsion of the monEh-to_monthtenarcies.
Assist.ant to ClEy Administ.rator Krj.sE,en EnomoEo reported that.initially t.here were ].G month- to-month 1easees, one of whichvacated a unit. The remaining 15 have transitioned t'o Ehe newone-year lease agreement.s. Two of the tenants $rere unable tsomake Ehe futr transilion payment and have been praced on a ahorEpalmen! plan.
In response Eo Conunissioner HaskeII,s request for a staEus onthe vacancies, EnomoEo reported Ehat there is one vacancy wiE.hinVernon, and the two vacancies in Huntington park which will_ nowbe filled.
The two vacancies from Ehe first lottery were filled. Once t.hecurrenE, three vacanciee are fiIled, there will be a toEal offive units on the fulI marke E, raEe.
4. Brief reports, commenE,g, and announcemenEsCommissioners a:rd Commission Officers.
City Administrator Mark Whit,worth announced lhaEUser Tax did not. pass voter approval . The CityfurEher cuts.
f rom t.he
the Utilityie facing
t
commissioners Hughes and carcia Ehanked WhiE,wort.h and sE,af f fortheir ef f ort,6 .
Page 7 of I
vernon Housing Commj.ssion l.leeEing Minutses
September L9, 2Ol2
At 7:30 p.m., it was
adj ourn the meetsing.
moved by Davis and seconded by Hughes, to
Motsion carried.
InEerim Secretary
I
Page 8 of 8
Vemon Housing Commission
Unit-to-Un it Transfer Procedures
Adopred September 19, 2012
AnyleaseeofaCityofVemonownedhousingunitmaylequesttotransfertoany
other City-owned unit upon availaLility, pursuant to the following conditions and procedures:
l.AII transfer requests must be submitted in writing by the leasee on the
attached Unit Transfer Request Form.
A leasee must have occupied his/her then current unit for a minimum ofone
year prior to submining a Unit Transfer Request Form'
A maximum ofone Unit Transfer Request Form per leasee will be accepted in
any calendar year and shall be valid for that calendar year only'
shall first be offered to the leasee who is first on the Unit Transfer Wait List
that was in effect at the time the housing unit became vacant. Ifthat leasee
either does not want to occupy the vacant unit, or does not qualifr for the
vacant unit, then the vacanl unit shall be offered to the next leasee on the Unit
Transfer Wait List. Ifthe vacant unit has been offered to all leasees on the
applicable U , and none ofthe
occupy the v for the vacant un
be offered to n on the wait list
in accordance with the procedures for that wait list.
A transfer fee of $1,000 shall be due upon approval ofa transfer request to
cover the costs associated with preparing the unit for new occupancy'
Any leasee transfening to a different unit will immediately pay the then
estiblished market renl for the unit transferred to. This will require a review
and determination ofthe leasee's credit worthiness to lease such unit'
3.
4.
5.
7.