2018-12-12 VHC Agenda PacketPage 1
California Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda
items, including attachments, which are presented to the City Council 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 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
48 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
City of Vernon
Regular Vernon Housing Commission Meeting
Wednesday, December 12, 2018, 06:00 PM
City Hall, Council Chamber
4305 Santa Fe Avenue
Vernon, California
Kyle Cooper, Chairperson
Melissa Ybarra, Vice Chairperson
Hector Garcia, Commissioner
Carol Menke, 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 City Council. The public will also be given a chance to comment on matters which
are on the posted agenda during City Council deliberation on those specific matters.
PUBLIC HEARING
1.Public Works
A Resolution of the Vernon Housing Commission Establishing Rental Rates
Recommendation:
A. Find that the proposed action is exempt under the California Environmental Quality Act
(“CEQA”) review because it is a continuing administrative activity that will not result in any direct or 1
Regular Vernon Housing Commission Meeting Agenda
December 12, 2018
Page 2
indirect changes in the environment and therefore does not constitute a “project” as defined by
CEQA Guidelines section 15378; and
B. Continue a Public Hearing; and
C. Adopt a revised resolution (modified at Special Vernon Housing Commission Meeting held on
November 7, 2018) establishing rental rates, specifically to accomplish the following:
1. Establish annual rent adjustments for occupied units, and;
2. Establish a method for determining rents for vacant units.
1. Table 1 and 2 Rent
2. VHC Resolution - Establishing Rental Rates
3. CGA appraisal
4. Notice of Public Hearing 11 07 18
5. Letter to residents re: Public Hearing
MINUTES
2.City Clerk
Minutes of the Regular Vernon Housing Commission Meeting held September 12, 2018.
Recommendation:
A. Receive and File
VHC Minutes 09-12-2018.docx
3.City Clerk
Minutes of the Special Vernon Housing Commission Meeting held November 7, 2018.
Recommendation:
A. Receive and File
VHC Minutes 11-07-18 (Special).docx
ORAL REPORTS
Brief reports, announcements, or directives to staff from the Commissioners and Commission Officers.
Next regular meeting: March 13, 2019, 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.
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
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Regular Vernon Housing Commission Meeting Agenda
December 12, 2018
Page 3
Avenue, Vernon, California, and on the City’s website, not less than 72 hours prior to the meeting date set forth
on this agenda.
Dated this 6th day of December, 2018.
By: ________________________________
Maria E. Ayala
City Clerk
3
Vernon Housing Commission Agenda Item Report
Agenda Item No. COV-334-2018
Submitted by: Daniel Wall
Submitting Department: Public Works
Meeting Date: December 12, 2018
SUBJECT
A Resolution of the Vernon Housing Commission Establishing Rental Rates
Recommendation:
A. Find that the proposed action is exempt under the California Environmental Quality Act (“CEQA”) review because it
is a continuing administrative activity that will not result in any direct or indirect changes in the environment and therefore
does not constitute a “project” as defined by CEQA Guidelines section 15378; and
B. Continue a Public Hearing; and
C. Adopt a revised resolution (modified at Special Vernon Housing Commission Meeting held on November 7, 2018)
establishing rental rates, specifically to accomplish the following:
1. Establish annual rent adjustments for occupied units, and;
2. Establish a method for determining rents for vacant units.
Backgroud:
Annual Rent Adjustments
The Vernon Rental Housing Policy (VRHP), adopted by the Vernon Housing Commission on October 5, 2011,
pursuant to Ordinance 1183 and approved by the Vernon City Council on October 18, 2011, requires that all rents
charged by the City of Vernon be “market” rents as determined by independent sources, while avoiding undue hardship
on existing tenants. While rents have been increased since the adoption of the VRHP they have not been increased in a
regular systematic manner in order to stay current with market rents.
This resolution automatically adjusts month-to-month rents, up or down, on January 1 of each year based on the annual
percentage change in the Consumer Price Index (CPI) for all urban consumers, not seasonally adjusted, all items index
(CPI-U) for the Los Angeles – Long Beach – Anaheim area, for the twelve month period ending the August
immediately prior to the rent adjustment. Existing leases being renewed during the calendar year would be similarly
adjusted at the time of renewal. To ensure that these automatic rent adjustments do not create an undue hardship on
existing tenants the maximum increase in any year would be limited to three percent (3%), without regard to any higher
increase that may be justified by the increase in the CPI. There is no limit on the maximum decrease in rent.
Vacant Unit Rent
The United States Department of Housing and Urban Development (HUD) establishes Small Area Fair Market Rents
(SAFMRs) within metropolitan areas by ZIP code. HUD uses SAFMRs to determine rent standards for its Section 8
voucher program. SAFMRs are set at the 40th percentile for rents within an area. SAFMRs are calculated for 4
efficiency, one-bedroom, two-bedroom, three-bedroom and four-bedroom units. SAFMRs are published in advance of
each federal fiscal year. To ensure that new tenants are charged fair market rents, this resolution requires the use of
HUD’s SAFMRs in effect for the Vernon (90058) Zip Code at the time of tenant move-in to establish the initial rent.
Remodeled Units
The resolution provides that a unit temporarily vacated by an existing tenant for purposes of a remodel will not constitute
a “vacant unit”, and rent for the existing tenant will not be increased based on that vacancy.
Table 1. - FY2019 Small Area Fair Market Rent contains Federal Fiscal Year 2019 SAFMRs for Vernon and the
surrounding areas, and
Table 2. – Furlong Rent Comparison contains a comparison of the HUD SAFMRs, CGA’s market rent appraisal, and
the highest current rents on Furlong.
Fiscal Impact:
The adoption of this resolution will, over a period of years, bring the current rental rates for City-owned housing up to
market rents. Existing rents are estimated to be between 50% and 100% lower than market rents.
ATTACHMENTS
1. Table 1 and 2 Rent
2. VHC Resolution - Establishing Rental Rates
3. CGA appraisal
4. Notice of Public Hearing 11 07 18
5. Letter to residents re: Public Hearing
5
Table 1. - FY 2019 Small Area Fair Market Rent
Los Angeles County, CA HUD Small Area FMRs By Unit Bedrooms
ZIP
Code City Efficiency One-
Bedroom
Two-
Bedroom
Three-
Bedroom
Four-
Bedroom
90011 Los Angeles $970 $1,160 $1,500 $2,010 $2,230
90023 Commerce $970 $1,160 $1,500 $2,010 $2,230
90040 Commerce $970 $1,160 $1,500 $2,010 $2,230
90058 Vernon $970 $1,160 $1,500 $2,010 $2,230
90255 Huntington Park $1,000 $1,200 $1,550 $2,080 $2,290
90270 Bell
Gardens/Maywood $1,020 $1,210 $1,570 $2,100 $2,320
Table 2. – Furlong Rent Comparison
Source Two-Bedroom Three-Bedroom
Highest current rent $1,011 $1,089
HUD Small Area FMR FY 2019 $1,500 $2,010
GCA Appraisal $2,088 $2,367
6
RESOLUTION NO. VHC-
A RESOLUTION OF THE VERNON HOUSING COMMISSION OF
THE CITY OF VERNON ESTABLISHING RENTAL RATES
WHEREAS, on June 7, 2011, the City Council of the City of
Vernon adopted Ordinance No. 1183 establishing the Vernon Housing
Commission (the “Commission); and
WHEREAS, on October 5, 2011, the Commission adopted
Resolution No. VHC-5 adopting the Vernon Rental Housing Policy
(“VRHP”), pursuant to Article XVII, Section 2.125(b) of the Vernon
Municipal Code; and
WHEREAS, on October 18, 2011, the City Council of the City
of Vernon adopted Resolution No. 2011-175 approving the VRHP; and
WHEREAS, the VHRP requires that all rents charged by the
City of Vernon be “market” rents as determined by independent sources,
while avoiding undue hardship on existing tenants; and
WHEREAS, pursuant to Article XVII, Section 2.125 of the
Vernon Municipal Code the Commission desires, by resolution, to
establish rental rates.
NOW, THEREFORE, BE IT RESOLVED BY THE VERNON HOUSING
COMMISSION OF THE CITY OF VERNON AS FOLLOWS:
SECTION 1:The Vernon Housing Commission of the City of
Vernon hereby finds and determines that the above recitals are true
and correct.
SECTION 2:The Vernon Housing Commission of the City of
Vernon finds that this action is exempt from California Environmental
Quality Act (CEQA) review because it is an administrative activity that
will not result in any direct or indirect changes in the environment
and is therefore not a “project” as defined by CEQA Guidelines section 7
-2 -
15378.
SECTION 3:The Vernon Housing Commission of the City of
Vernon hereby establishes that beginning January 1, 2020, the
adjustment of month-to-month rents based on the annual percentage
change in the Consumer Price Index (CPI) for all urban consumers, not
seasonally adjusted, all items index (CPI-U) for the Los Angeles –
Long Beach – Anaheim area, for the twelve month period ending the
August immediately prior to the rent adjustment will take effect on
January 1 of each year. Existing leases being renewed during the
calendar year would be similarly adjusted at the time of renewal. To
ensure that these automatic rent adjustments do not create an undue
hardship on existing tenants the maximum rate of increase in any year
would be limited to a three percent (3%) increase, without regard to
any higher increase that may be justified by the increase in the CPI.
These adjustments to rent for 2019 will take effect on March 1, 2019.
SECTION 4:The Vernon Housing Commission of the City of
Vernon hereby establishes that rents for vacant units shall be set at
the current rate published by the United States Department of Housing
and Urban Development (HUD) for Small Area Fair Market Rents for the
City of Vernon at the time of tenant move-in to establish the initial
rent. For purposes of this Section 4, a unit temporarily vacated by an
existing tenant for purposes of a remodel shall not constitute a
“vacant unit”.
/ / /
/ / /
/ / /
/ / /
/ / /
8
-3 -
SECTION 5: The Secretary of the Commission shall certify to
the passage, approval and adoption of this Resolution, and the
Secretary shall cause this Resolution and the Secretary’s certification
to be entered in the File of Resolutions of the Commission.
APPROVED AND ADOPTED this 12th day of December, 2018.
Name:
Title: Chairman / Vice Chairman
ATTEST:
Maria E. Ayala, Secretary
APPROVED AS TO FORM:
Zaynah Moussa,
Senior Deputy City Attorney
9
-4 -
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, Maria E. Ayala, Secretary of the Vernon Housing Commission of
the City of Vernon, do hereby certify that the foregoing Resolution,
being Resolution No. VHC- , was duly passed, approved and adopted by
the Vernon Housing Commission of the City of Vernon at a regular
meeting of the Commission duly held on Wednesday, December 12, 2018,
and thereafter was duly signed by the Chair or Vice Chair of the Vernon
Housing Commission of the City of Vernon.
Executed this day of December, 2018, at Vernon, California.
Maria E. Ayala, Secretary
(SEAL)
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18017000, RCS Vernon Properties 1
September 6, 2018
Anthony Zarate
City of Vernon
4305 Santa Fe Ave.
Vernon, CA 90058
Dear Mr. Zarate,
At your request, I completed my analysis of the monthly rental rates for the following residential properties:
Type Street Location City Location
2 Bedroom House 4325 Furlong Pl. Vernon
3 Bedroom House 4321 Furlong Pl. Vernon
Regardless of who pays for the attached 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 a current fair market rental rate for the above mentioned properties. The client intends to use this report in negotiating a rental rate for the tenants at these locations.
The attached Rental Report has been prepared in accordance with
the reporting requirements of the Uniform Standards of Professional Appraisal Practice (USPAP).
This Rental Report may not be used or relied upon by anyone other than the above-mentioned client for any purpose
whatsoever, without the express written consent of the appraiser. If the client provides anyone else with a copy of
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18017000, RCS Vernon Properties 2
this report, such as a borrower, etc., that person(s) may not be entitled to rely upon its contents when making any decisions
about the property. As such the following limiting 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
firm's client, through advertising, solicitation materials, 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
Institute or the MAI, SRA designation. Furthermore, the appraiser or firm assumes no obligation, liability, or accountability to any third party. If this report is placed in the hands of any one, but the client, the client shall make such party(s) aware of all the assumptions and limiting conditions of
the assignment.
Should you have any questions regarding the analysis or conclusions found in the attached report, please contact me.
Sincerely,
Hee K. Yi
Certified General Appraiser
AG 035644
Expires 11/16/2018
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18017000, RCS Vernon Properties 3
Table of Contents
Table of Contents.............................................. 3
Client......................................................... 4
Appraiser...................................................... 4
Effective Date of the Assignment............................... 4
Date of Report................................................. 4
Competency Provision........................................... 4
Confidentiality................................................ 4
Fair Rental Report............................................. 4
Intended User.................................................. 5
Intended Use................................................... 5
Real Estate Locations.......................................... 5
Overview of the Assignment..................................... 5
Scope of the Assignment........................................ 5
Definition of Market Rent...................................... 6
Neighborhood Description....................................... 7
Zoning......................................................... 8
Property Descriptions.......................................... 8
Rental Analysis................................................ 9
Addendum...................................................... 14
Certification ............................................... 15
Assumptions and Limiting Conditions ......................... 17
Qualifications .............................................. 20
Subject Photographs ......................................... 23
Rental Photographs .......................................... 27
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18017000, RCS Vernon Properties 4
Client
The City of Vernon
4305 Santa Fe Ave.
Vernon, California 90058
Appraiser Hee K. Yi
Gold Coast Appraisals Inc.
10016 Pioneer Blvd., Suite 110
Santa Fe Springs, California 90670
Effective Date of the Assignment The effective date of this assignment is September 1, 2018. The buildings were inspected on September 1, 2018. The appraiser
made exterior inspections of the properties. Both properties were viewed from the street.
Date of Report Hee K. Yi wrote this report September 6, 2018.
Competency Provision
Hee K. Yi has the necessary educational background and field experience to perform this assignment; her qualifications are
found in the addenda. She is a California Certified General Appraiser (AG035644).
Confidentiality
The appraiser must be aware of, and comply with, all confidentiality and privacy laws and regulations applicable in
an assignment. Disclosure of confidential information is permissible to professional peer review committees, except when such disclosure to a committee would violate applicable law or
regulation. Confidential Information means information that is either identified by the client as confidential when providing
it to an appraiser and that is not available from any other source; or classified as confidential or private by applicable law or regulation.
Fair Rental Report
This Rental Report complies with the reporting requirements set
forth under Uniform Standards of Professional Appraisal Practice (USPAP) as well as those promulgated by the Appraisal Institute.
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18017000, RCS Vernon Properties 5
As such, it presents a summary of the data, reasoning, and analyses that were used in the appraisal process to develop an
opinion of a current monthly rental rate.
Intended User
The City of Vernon is the intended user of this report.
Intended Use
The City of Vernon intends to use this report in negotiating a
monthly rental rate for the houses that are owned by the City of Vernon.
Real Estate Locations
Type Street Location City Location
2 Bedroom House 4325 Furlong Pl. Vernon
3 Bedroom House 4321 Furlong Pl. Vernon
Overview of the Assignment Because nearly every house is owned by the City of Vernon, there are 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 location can opt to
obtain housing in the cities and communities that are adjacent to Vernon. Huntington Park, South Gate, Maywood, East Los Angeles, Los Angeles, Bell, Lynwood, and City of Commerce have
housing stock that is similar to the Vernon located houses. Therefore, the surveys of rental units in these communities are
used in this analysis.
Scope of the Assignment
The appraiser performed the following tasks in order to
ascertain the current market monthly rental rate as of September 1, 2018. The client provided the scope of work about the
remodeling of the properties. Gold Coast Appraisals conducted the prior rental surveys as of November 17, 2011, August 25, 2015, and January 19, 2016. The staff of Gold Coast Appraisals
inspected the interior and exterior of the properties on November 17, 2011 and August 25, 2015, thus the interior
information of the properties was obtained from the prior rental survey reports of Gold Coast Appraisals.
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18017000, RCS Vernon Properties 6
For the assignment the appraiser:
• Viewed the exterior of all the rental properties;
• Viewed all of the properties from the public thoroughfares;
• Reviewed the descriptions of City owned residential properties;
• Utilized internet rental sites and multiple listing leasing information to obtain rental rates;
• Selected leased or for lease properties that have physical
characteristics that are similar to the subject properties;
• Conducted an exterior inspection of each rent comparable;
• Reviewed all the pertinent information 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 characteristics that impact rental rates;
• Made positive or negative adjustments for those characteristics that impact rents;
• Reconciled the adjusted rents and reached a final rent
conclusion for each location;
Definition of Market Rent
The most probable rent which a property will bring in a competitive and open market under all conditions requisite to a fair rent, the owner and tenant, each acting prudently,
knowledgeably and assuming the rental rate is not affected by undue stimulus whereby:
Owner and tenant are typically motivated;
Both parties are well informed or well advised, and acting in what they consider their own best interest;
A reasonable time is allowed for exposure in the open market;
Payment is made in terms of cash U.S. dollars or in terms of financial arrangements comparable thereto.
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18017000, RCS Vernon Properties 7
Neighborhood Description
City of Vernon Locations
Industrial and commercial properties dominate the property uses
found in Vernon. Over the past several years most of the older structures have been replaced with modern concrete tilt-up buildings designed for light and heavy manufacturing. Many cold
storage facilities have relocated to Vernon from the Central Business District of Los Angeles. Many of the industrial uses
have access to rail road spur lines that are just a short distance from the main freight carrying rail lines.
Vernon’s residential properties consist of 18 single family homes and one apartment building all of which are owned by the
City and occupied by City employees. These properties are located adjacent to City owned facilities and are surrounded by privately owned industrial uses.
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18017000, RCS Vernon Properties 8
Because Vernon lacks the infrastructure to service local
residents, they must utilize facilities found in the surrounding Cities of Maywood, East Los Angeles, Huntington Park, Bell and City of Commerce. Access to these adjacent cities is via Atlantic Blvd., Slauson Ave., Bandini Blvd., Soto St., Alameda St., Santa Fe Ave. and Washington Blvd. Vernon is also
conveniently located to the Long Beach and Santa Ana freeways which provide residents and businesses access not only to the surrounding communities but 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 Descriptions
Furlong Place Houses
4321 and 4325 Furlong Pl. are houses that were built in 1941 in the City of Vernon. These houses reside on a small cul-de-sac
street that is adjacent to a City owned facility.
These two houses are currently remodeled. Each house has window
treatments, hardwood and tile flooring. The kitchens are equipped with wood cabinets, granite counter tops, a
refrigerator, stove, garbage disposal, microwave, and washer/dryer. The bathrooms have a tub with an overhead shower, vanity, and tile wainscoting surrounding the tub. Each unit has
central heating, air conditioning and hot water tanks. The houses are equipped with a laundry room. The houses have access
to individual storage spaces that are located in their fenced rear yards. Each house has an assigned street parking stall and one covered space in the adjacent city parking garage. The tenants pay for all utilities and trash pick-up.
The appraiser assumed that all of the properties were in rent ready condition and that they did not suffer from any major deferred maintenance or any significant code violations.
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18017000, RCS Vernon Properties 9
Rental Analysis
4321 Furlong Pl. (3 bedroom house)
Subject
4321 Furlong Pl.Data
3bed 1 bath house on
Vernon SubjectA. Rents Charged Data $ Adj
Rent $1,975 $2,325 $2,550 $2,645
Rent Concessions None None None None
Effective Rent & Rent/ Sq. Ft.$1,975 1.62 $2,325 2.54 $2,550 2.15 $2,645 1.52
B. Design, Location, Condition Data $ Adj Data $ Adj Data $ Adj Data $ Adj
Year Built 1960 1975 1926 1952 1923
Condition Excellent Average $100 Excellent Excellent Excellent
Proximity to Adversity Y N ($100)N ($100)N ($100)N ($100)
Location
C. Unit Equipment/ Amenities Data $ Adj
# Bedrooms 3 3 3 3 3
# Baths 1 2 ($60)1 2 ($60)2 ($60)
Unit Interior Sq. Ft.1258 1222 $14 916 $133 1188 $27 1244 $5
AC: Central/ Wall Central C N $10 C N $10
Range/ refrigerator Y/Y N/N $85 Y/N $48 Y/N $48 Y/N $48
Microwave/ Dishwasher Y/N N/N $12 N/N $12 N/Y ($20)N/N $12
Washer/Dryer Y/Y N/N $35 N/N $35 N/N $35 N/N $35
Fireplace N N N Y ($5)N
D Site Equipment/ Amenities Data $ Adj
Parking Open 2 car gar ($50)2 car gar ($50)2 car gar ($50)2 car gar ($50)
Extra Storage Y N $25 Y N $25 N $25
Security N N N N N
Clubhouse/ Meeting Rooms N N N N N
Pool/ Recreation Areas N N N N N
E.Utilities Data $ Adj
Tenant Paid Heat Y Y Y Y Y
Tenant Paid Cooling Y Y Y Y Y
Tenant Paid Cooking Y Y Y Y Y
Tenant Paid Hot Water Y Y Y Y Y
Tenant Paid Electric Y Y Y Y Y
Tenant Paid Water/Sewer Y Y Y Y Y
Tenat Paid Trash Y Y Y Y Y
F. Adjustments Recap Pos Neg Pos Neg Pos Neg Pos Neg
# Adjustments B to D 6 3 5 2 4 5 6 3
Sum Adjustments B to D $271 ($210)$238 ($150)$135 ($235)$135 ($210)
Sum Utility Adjustments Net Gross Net Gross Net Gross Net Gross
Net/ Gross Adjmts B to E $61 $481 $88 $388 ($100)$370 ($75)$345
G.Adjusted & Market Rents Adj. Rent Adj. Rent Adj. Rent Adj. Rent
Adjusted Rent $2,036 $2,413 $2,450 $2,570
Adj Rent/Last rent 103%104%96%100%
Estimated Market Rent $2,367 $1.88 Estimated Market Rent/ Sq. Ft
10251 Virginia
South Gate
Rental 4Rental 1 Rental 3Rental 2
Huntinton Park
114 E. 85th St.
Los Angeles Whittier
2506 Cole Pl.7819 Glengarry Ave.
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18017000, RCS Vernon Properties 10
4325 Furlong Pl. (2 bedroom house)
Subject
4325 Furlong Pl.Data
2bed1bath house on
Vernon Subject
A. Rents Charged Data $ Adj Data $ Adj Data $ Adj Data $ Adj
Rent $1,800 $1,895 $2,095 $2,100
Rent Concessions None None None None
Effective Rent & Rent/ Sq. Ft.$1,800 1.55 $1,895 2.63 $2,095 2.91 $2,100 2.43
B. Design, Location, Condition Data $ Adj Data $ Adj Data $ Adj Data $ Adj
Year Built 1941 1926 1945 1963 1941
Condition /Street Appeal Excellent Average $100 Average $100 Excellent Average $100
Proxmity to Adversity Y N ($100)N ($100)N ($100)N ($100)
Location
C. Unit Equipment/ Amenities
# Bedrooms 2 2 2 2 2
# Baths 1 1 1 1 1
Unit Interior Sq. Ft.1079 1160 ($36)720 $140 720 $140 864 $83
AC: Central/ Wall Central N $10 N $10 Wall ($5)N $10
Range/ refrigerator Y/Y N/N $85 N/N $85 N/N $85 N/N $85
Microwave/ Dishwasher Y/N N/N $12 Y/N N/N $12 N/N $12
Washer/Dryer Y/Y N/N $35 N/N $35 N/N $35 Y./Y
Fireplace N N N N N
D Site Equipment/ Amenities
Parking Open 1car gar ($25)1 car gar ($25)1 car gar ($25)1 car gar ($25)
Extra Storage Y N $25 N $25 N $25 N $25
Security N N N N N
Clubhouse/ Meeting Rooms N N N N N
Pool/ Recreation Areas N N N N N
E.Utilities
Tenant Paid Heat Y Y Y Y Y
Tenant Paid Cooling Y Y Y Y Y
Tenant Paid Cooking Y Y Y Y Y
Tenant Paid Hot Water Y Y Y Y Y
Tenant Paid Electric Y Y Y Y Y
Tenant Paid Water/Sewer Y N ($63)N ($63)Y N ($63)
Tenant Paid Trash Y N ($27)N ($27)Y N ($27)
F. Adjustments Recap Pos Neg Pos Neg Pos Neg Pos Neg
# Adjustments B to D 6 3 6 2 5 3 6 2
Sum Adjustments B to D $267 ($161)$395 ($125)$297 ($130)$315 ($125)
Sum Utility Adjustments ($90)($90)($90)Net Gross Net Gross Net Gross Net Gross
Net/ Gross Adjmts B to E $16 $518 $180 $610 $167 $427 $100 $530
G.Adjusted & Market Rents Adj. Rent Adj. Rent Adj. Rent Adj. Rent
Adjusted Rent $1,816 $2,075 $2,262 $2,200
Adj Rent/Last rent 101%109%108%105%
Estimated Market Rent $2,088 $1.94 Estimated Market Rent/ Sq. Ft
Rental 1 Rental 2 Rental 3
1226 S. La Verne 2434 E. 124th St.11109 California Ave.641 S. Duncan Ave.
Rental 4
Los AngelesLos Angeles LA County Lynwood
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18017000, RCS Vernon Properties 11
Explanation of Adjustments Remodeling Adjustment The following is an example of the difference between rental rates before and after remodeling. Based on our research, living size does not significantly impact the difference of rental
rates after remodeling but rather it is a total dollar difference. The information is derived from the website of MLS and Rent.com.
Street Address City Bed/Bath Living Size(SF)Remodeled Rent Difference
16040 Leffingwell Rd. #18 Whittier 2bed/2bath 960 Yes $1,700
16040 Leffingwell Rd. #22 Whittier 2bed/2bath 960 No $1,575
13801 Paramount Blvd.Paramount 1bed/1bath 769 Yes $1,618
13802 Paramount Blvd.Paramount 1bed/1bath 769 No $1,523
7300 Florence Ave.Downey 1bed/1bath 530 Yes $1,350
7300 Florence Ave.Downey 1bed/1bath 530 No $1,250
$125
$95
$100
As shown above, the difference of rental rates after remodeling is $95 to $125. A $100 adjustment to rent is appropriate when
comparing non remodeled units to remodeled units.
Adjustments of Kitchen Appliances Based on the website (rentafridge.com), the rental rate per
month for refrigerators which have a similar price of the refrigerator which is provided by the City of Vernon is $48. Since there is not enough data for rental rates of other
appliances, the concluded adjustments of range and microwave are derived from the rental rate of refrigerator based on their
prices, which are provided by the client.
Refrigerator Range Microwave
Price 1,900$ 1,275$ 350$
Adjustment 48$ 37$ 12$ According to the website, the rental rate of a side by side
washer and dryer is $35. Therefore, the adjustment of $35 is applied for washer/dryer.
Utility Adjustment The adjustments of Utilities are based on the Los Angeles
Housing Authority Utility Allowances grid.
Proximity to Adversity (favorable & unfavorable) The subject units have unfavorable features because they are located adjacent to industrial buildings which have noise and
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18017000, RCS Vernon Properties 12
odor issues, and their distance to parks and schools. These features make the subject inferior to the comparables in
location. The following are some examples of different rental rates with favorable and unfavorable features. The radius was expanded to Los Angeles County to find samples of the differences. The
information is obtained from office managers and MLS. Example 1 These two units are located within same apartment complex and address is 9050 E. Carron Dr., Pico Rivera.
Features Bed/Bath Sq.ft. Rental Difference
Favorable 1bed/1bath 581 $1,537 $100 Unfavorable 1bed/1bath 581 $1,637
Example 2 These two units are located within same apartment complex and
address is 6141 Orange Ave., Cypress. Features Bed/Bath Sq.ft. Rental Difference
Favorable 2bed/1bath 858 $1,885 $100 Unfavorable 2bed/1bath 858 $1,785
The adjustment of $100 is applied.
Adjustment of Sq.Ft. The following are some examples of the difference of rental rate
per square feet. It is obtained from the website of Rent.com Example 1
Location: Same apartment complex in Downey Bed/Bath Sq.ft. Rental Difference
0/1bath 1,731 $2,195 $0.35 per sq.ft. 0/1bath 974 $1,925 Example 2 Location: Same apartment complex in Pico Rivera
Bed/Bath Sq.ft. Rental Difference 1/1 758 $1,477 $0.39 per sq.ft. 1/1 581 $1,407 Example 3
Location: Same apartment complex in Los Angeles Bed/Bath Sq.ft. Rental Difference
0/1 670 $1,915 $0.44 per sq.ft. 0/1 343 $1,770
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18017000, RCS Vernon Properties 13
The adjustment of $0.39 per sq.ft. is applied.
Adjustment of Bath The data is obtained from the website of MLS. Example 1
Range of Living Size: 900 to 1,300 sq.ft. Location: Whittier Bed/Bath Average Rental Rate Difference 2bed/2bath $2,413 $55 2bed/1bath $2,358
Example 2 Range of Living Size: 1,400 to 1.600 sq.ft. Location: Long Beach
Bed/Bath Average Rental Rate Difference 2bed/2bath $1,528 $64
2bed/1bath $1,464
The adjustment of $60 is applied to the comparables which have an additional bath.
If you have any questions regarding this analysis please contact
me.
Sincerely,
Hee K. Yi
Certified General Appraiser
AG 035644
Expires 11/16/2018
23
18017000, RCS Vernon Properties 14
Addendum
24
18017000, RCS Vernon Properties 15
Certification
25
18017000, RCS Vernon Properties 16
Certification
I, certify that to the best of my knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, 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 the subject of this report, and no personal interest with respect to the parties involved.
4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
5. My engagement in this assignment was not contingent upon developing or reporting predetermined results.
6. 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 related to the intended use of this appraisal.
7. My analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of
Professional Practice.
8. I made an exterior inspection of the property that is the subject of this
report.
9. No one else provided professional assistance to the person signing this
report.
10. I am competent to complete this report in accordance with the competency
provision of USPAP.
Hee K. Yi
Certified General Appraiser
AG 035644
Expires 11/16/2018
26
18017000, RCS Vernon Properties 17
Assumptions and Limiting Conditions
27
18017000, RCS Vernon Properties 18
ASSUMPTIONS 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 Summary Narrative Report, which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice
for a Summary Appraisal Report. The information 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 responsibility is assumed for legal or title considerations.
Title to the property is assumed to be good and marketable unless otherwise stated in this report.
4. The property is appraised free and clear of any or all liens and encumbrances unless otherwise stated in this report.
5. Responsible ownership and competent property management are assumed unless otherwise stated in this report.
6. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.
7. All engineering is assumed to be correct. Any plot plans and illustrative material in this report are included only to assist the reader in visualizing the property.
8. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.
9. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless otherwise stated in this report.
10. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless non-conformity has been stated, defined, and considered in this appraisal report.
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18017000, RCS Vernon Properties 19
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 reader reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report.
12. 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.
13. The appraiser is not qualified to detect hazardous waste and/or toxic materials. Any comment by the appraiser that might suggest the possibility of the presence of hazardous waste and/or toxic materials would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The appraiser's value estimate is predicated on the assumption 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 responsibility is assumed for any environmental conditions or for any expertise or engineering knowledge required to discover them. The appraiser's descriptions and resulting comments are the result of the routine observations made during the appraisal process.
14. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.
15. Possession of this report, or a copy thereof, does not carry with it 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 the written consent of the appraiser, and in any event, only with proper written qualification and only in its entirety.
16. Neither all nor any part of the contents of this report (especially any conclusions, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the appraiser.
29
18017000, RCS Vernon Properties 20
Qualifications
30
18017000, RCS Vernon Properties 21
Hee (Kim) Yi
10016 Pioneer Blvd. Suite 110
Santa Fe Springs, CA 90670
(562) 651-10988 or FAX (562) 651-1068
E-mail corporate@goldcoastappraisals.com
Qualifications
13 years experience in residential and commercial 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, tax re-assessments, liquidation and foreclosure, probate cases, new constructions, and renovations.
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.
Key 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 Issues.
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.
Appraised mixed use residential/homeless shelter and multi-family residential properties for Los Angeles Family Housing
Completed fair rental valuations for tenants’ rights attorneys.
Completed Fair Market Rental reports for HUD, Cities, and private parties.
Mixed use properties (office/homeless shelter) for Los Angeles Family Housing
Appraised foreclosure and problem loan properties.
Appraised all types of properties for Federal Estate Tax Returns.
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18017000, RCS Vernon Properties 22
Appraised over 20 medical buildings of Alta Med Health Services Corp. in Los Angeles County and Orange County.
Low income housing for Restore Neighborhood Rehabilitation (City of Los Angeles).
Low income housing for City of Santa Ana.
Appraised residential properties for the city of Santa Fe Springs
Appraised multi-family and commercial properties for the asset valuation of city of Los Angeles
Performed rent comparability studies for Pico Union Housing, City of Vernon, and Metropolitan State Hospital
Professional Experience
Gold Coast Appraisals, Inc. 2005 to Present
California Probate Referee Until 6/30/2019
JM United Appraisals Inc. 2004 - 2005
Areas of Special Competence
♦ Industrial Land ♦ Single Family House ♦ Offices
♦ Commercial Land ♦ Multi-Family (1-4) ♦Single Tenant Industrial
♦ Residential Land ♦ Multi-Family (5-100) ♦Multi-Tenant Industrial
♦ Industrial Construction ♦ Cooperatives ♦ Shopping Centers
♦ Commercial Construction ♦ Condominiums ♦Auto Service Centers
♦ Residential Construction ♦ Residential Tracts ♦ Hospitals
♦ Apartment Construction ♦Condominium Tracts ♦ Special Purpose Properties
♦ Residential Reviewer ♦ Partial Reconveyances ♦Low Income Housing
Education
College Degree
BA Kyung Hee University, Seoul Korea
License
Certified General Real Estate Appraiser, License #AG035644, Expires 11/16/2020
Verification Call: OREA (916) 322-2500
California Probate Referee (Orange County)
32
18017000, RCS Vernon Properties 23
Subject Photographs
33
18017000, RCS Vernon Properties 24
4321 Furlong Place, Vernon
34
18017000, RCS Vernon Properties 25
4325 Furlong Place, Vernon
35
18017000, RCS Vernon Properties 26
Furlong Place, Vernon, street scene
36
18017000, RCS Vernon Properties 27
Rental Photographs
37
18017000, RCS Vernon Properties 28
2506 Cole Pl, Huntington Park
114 E. 85th St, Los Angeles
38
18017000, RCS Vernon Properties 29
7819 Glengarry Ave, Whittier
10251 Virginia Ave, South Gate
39
18017000, RCS Vernon Properties 30
1226 S. La Verne Ave, Los Angeles
2434 E. 124th St, Compton
40
18017000, RCS Vernon Properties 31
11109 California Ave, Lynwood
641 S. Duncan Ave, Los Angeles
41
4305 Santa Fe Avenue
Vemon, CA 90058
(323) 583-8811
NOTICE OFPTJBLIC HEARING REGARDING PROPOSED MARKET RENTAL RATES FOR ALL
HOUSING T]NITS OWNED BY TIIE CITY OF VERNON
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
November 7, 2{ll$ at 6300 p.rn. (or as soon thereafter as the maner can be heard)
Consider the adoption of a resolution establishing rental rates.
Notice is hereby given that a hard copy ofthe proposed resolution will be available for
public review during normal business hours in the City Clerk Depanment,
located ar 4305 Santa Fe Avenue, Vemon, Califomia between the hours of 7:00 a.m.
and 5:30 p.m. Monday through Thunday.
Please send your comrEnts or questions to:
Daniel Wall, Director of Public Works
City of Vemon
4305 Santa Fe Avenue, Vemon, CA 90058
(323) 583-881 I Ext. 305 Enail: dwall@ci.vemon.ca.us
Staff will recomnrend that the Vemon Housing Commission lind that the proposed
action is exempt under the Calitbmia Environmental Quality Act ("CEQA") review
because it is a continuing administrative activity that will not result in any direct or
indirect changes in the environment and therefore does not constitute a "pnrject" as
defined by CEQA Guidelines scction 15378. Here, the proposed resolution involves
establishing rental rates.
DATE & TIME:
PUR-FOSE:
DOCI,]MENTS
FORREYIEW:
PROPOSED CEQA FINDING:
If you challenge the adoption ofa resolution establishing rental rates,
or any provision thereof in court, you may be limited to raising only those issues you or sorneone else raised at the hearing
described in this notice or in written correspondence delivered to the City of Vernon at, or prior to, the rneeting.
Anrericans with Disabilities Act (ADA): In compliance with ADA, if you need special assistance to pafticipate in the
rneeting, please contact the Office ofthe City Clerk at (323) 583-881I ext. 546.
The hearing may be continued or adjourned or cancelled and rescheduled to a stated time and place without further
notice of a public hearing.
Dated: l0l23l2ll8
City of Vernon
42
CALIFORNIA NEWSPAPER SERVICE BUREAU
PRE#
D A I L Y J O U R N A L C O R P O R A T I O N
To the right is a copy of the notice you sent to us for publication in the
HUNTINGTON PARK BULLETIN. Please read this notice carefully and call us
with any corrections. The Proof of Publication will be filed with the County
Clerk, if required, and mailed to you after the last date below. Publication
date(s) for this notice is (are):
Mailing Address : 915 E FIRST ST, LOS ANGELES, CA 90012
Telephone (800) 788-7840 / Fax (800) 464-2839
Visit us @ www.LegalAdstore.com
MARIA AYALA
CITY OF VERNON CITY CLERK
4305 SANTA FE AVE
VERNON, CA 90058
GPN GOVT PUBLIC NOTICE
NPH- New Transmission Revenue
11/01/2018
Notice Type:
Ad Description
COPY OF NOTICE
3188068
!A000004896062!
An invoice will be sent after the last date of publication. If you prepaid this
order in full, you will not receive an invoice.
NOTICE OF PUBLIC HEARING REGARDING
PROPOSED MARKET RENTAL RATES FOR
ALLHOUSING UNITS OWNEDBYTHE CITY
OF VERNON
The Vernon Housing Commission will conduct a
PublicHearing,which you may attend.
PLACE:Vernon City Hall
CityCouncil Chambers
4305Santa FeAvenue
Vernon,CA 90058
DATE &TIME:November 7,2018,at 6:00 p.m.
(or as soon thereafter as the matter can be
heard)
PURPOSE:Consider the adoption of a resolution
establishing rentalrates.
DOCUMENTS Notice is hereby given that a hard
copy of the proposed resolution will be available
for public review during normal business hours in
theCityClerk Department,
FOR REVIEW:located at 4305 Santa Fe Avenue,
Vernon,California betweenthe hoursof 7:00a.m.
and 5:30p.m.Monday through Thursday.
Pleasesend yourcomments or questions to:
Daniel Wall,Director ofPublicWorks
Cityof Vernon
4305Santa FeAvenue,Vernon,CA 90058
(323)583-8811 Ext.305 Email:
dwall@ci.vernon.ca.us
PROPOSED CEQA FINDING:Staff will
recommend that the Vernon Housing
Commission find that the proposed action is
exempt under the California Environmental
Quality Act ("CEQA")review because it is a
continuing administrative activity that will not
result in any direct or indirect changes in the
environment and therefore does not constitute a
"project"as defined by CEQA Guidelines section
15378.Here,the proposed resolution involves
establishing rentalrates.
If you challenge the adoption of a resolution
establishing rentalrates,
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 correspondencedelivered
to the City of Vernon at,or prior to,the meeting.
Americans with Disabilities Act (ADA):In
compliance with ADA,if you need special
assistance to participate in the meeting,please
contact the Office of the City Clerk at (323)583-
8811ext.546.
The hearing may be continued or adjourned or
cancelled and rescheduled to a stated time and
placewithout further notice ofapublic hearing.
Dated:10/23/2018
/s/Maria E.Ayala,City Clerk
11/1/18
PRE-3188068#
HUNTINGTON PARKBULLETIN
43
0f @,0rn0n
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811 Fax (323) 826-7407
PUBLIC HEARING ANNOUNCEMENT
November 29,2018
Dear Resident:
Will you join us?
You are invited to attend a Public Hearing where the Vernon Housing Commission will consider
adopting a resolution that will establish annual rent adjustments and a method for determining
rents for vacant units.
The Public Hearing takes place during the Vernon Housing Commission meeting on December
12,2018, at 6:00 p.m. at City Hall. The Public Hearing allows you to make comments to the
Housing Commission before it votes on these issues.
Copies of the resolution will be available at least 72-hours in advance of the meeting on the
City's website at: www.cityofvernon.org/VHC.
For more information, please refer to the enclosed notice. If you have any questions please contact
the Housing Hotline at (323) 826-1412.
Sincerely
O*"lhJ^lL
Daniel S. Wall, P.E.
Director of Public Works
City of Vernon
E4c fits ia e fy I nfus tria I
44
of @ srn0n
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811 Fax (323) 826-1407
ANUNCIO DE AUDIENCTA PUBLICA
29 de noviembre de 2018
Estimado residente:
lNos acompaflara?
Le invitamos a asistir a una audiencia priblica en la que la Comisi6n de Vivienda de Vernon
(Vernon Housing Commission) considerard adoptar una resoluciSn que establecer6 ajustes
anuales de renta y un mdtodo para determinar las rentas para unidades vacantes.
La audiencia priblica se llevara a cabo durante la reuni6n de la Comisi6n de Vivienda de Vernon
el 12 de diciembre de 2018, a las 6:00 p.m. en el ayuntamiento de la ciudad. La audiencia
pfblica le permite hacer comentarios a la Comisi6n de Vivienda antes de que la Comisi6n vote
sobre estos temas.
Las copias de la resoluci6n estar6n disponibles al menos 72 horas antes de la reuni6n en el sitio
web de la Ciudad en: www.cityofvernon.ore/VHC.
Para m6s informaci6n, consulte el aviso adjunto. Si tiene alguna pregunta, comunfquese con la
linea directa de vivienda al (323) 826-1412.
Atentamente,
h)^lL
Daniel S. Wal[, P.E.
Director de obras publicas
Ciudad de Vernon
E4c[us iu e fy t rulus trta I
45
MINUTES OF THE REGULAR VERNON HOUSING COMMISSION
MEETING OF THE CITY OF VERNON HELD WEDNESDAY,
SEPTEMBER 12, 2018, IN COUNCIL CHAMBER OF CITY HALL
LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA
CALL TO ORDER & FLAG SALUTE
The meeting was called to order at 6:00 p.m. by Chair Cooper; City Administrator Carlos
Fandino led the flag salute.
Members Present:Kyle Cooper, Melissa Ybarra, Carol Menke, Steven Froberg, Steven
Florman
Members Absent:Hector Garcia, Frank Gavina
CHANGES TO THE AGENDA
Deputy City Clerk Matthew Ceballos announced that there were no changes to the agenda.
PUBLIC COMMENT
Maggy Alvarez, Vernon Village Park Resident, inquired about the purpose of the Vernon Housing
Commission.
Vice Chair Ybarra responded and explained the purpose of the Commission.
Marissa Olguin Vernon Chamber of Commerce, further explained how the housing application
and lottery system work.
MINUTES
1. City Clerk
Minutes of the Regular Vernon Housing Commission Meeting held March 14, 2018
A. Receive and File
Vernon Housing Commission Minutes 03-14-2018
No Public Comment provided
It was moved by Steven Florman and seconded by Carol Menke to A. Receive and File Minutes
of the Regular Vernon Housing Commission Meeting held March 14, 2018.
Motion carried, 5 - 0.
Yes:Kyle Cooper, Melissa Ybarra, Carol Menke, Steven Froberg, Steven Florman
No:None
46
Regular Vernon Housing Commission Meeting Minutes
September 12, 2018
Page 2 of 3
PRESENTATION
2. Public Works
A Presentation on the Housing Remodels of 4321 and 4325 Furlong Place
Administrative Analyst Anthony Zarate provided a presentation of the recently remodeled units.
Administrative Analyst Zarate advised that staff is working on rental rates studies that will be
presented to the Housing Commission. He also announced that the City will be hosting an open
house for the unit at 4325 Furlong Place.
The Commission and staff held brief further dialogue regarding the units’ new floorplan.
An open discussion ensued between Commission and staff regarding the remodel of the units and
the rental rate study.
Legal Counsel Allison LeMoine-Bui suggested that if Commission wishes to discuss valid issues
regarding rental rates, these items should be agendized for a future meeting.
Commission came to a consensus to agendize item regarding the rental rates and remodels for a
future meeting.
ORAL REPORTS
Administrative Analyst Anthony Zarate presented the Quarterly Housing Report.
The Commission and staff held brief dialogue on this item.
Commissioners and staff came to a consensus to schedule a Special Vernon Housing Commission
Meeting on November 7, 2018 to discuss the last Housing Study, and Vernon Housing
Commission Lottery. Commission retracted the November 7th meeting and scheduled a Special
Vernon Housing Commission Meeting for October 17, 2018.
SECOND PUBLIC COMMENT
Chair Cooper opened the Second Public Comment portion at 6:28 p.m.
Diana Gonzalez, resident at 4328 Furlong Place announced that she is next on the lottery list to
have her house remodeled and inquired as to whether or not the rent rate will change after the
remodel.
Chair Cooper inquired if staff could provide a brief answer to Ms. Gonzalez and asked if this is
something that staff addresses on a day to day basis or if it is part of the policy.
Administrative Analyst Zarate explained that the Vernon Housing Commission sets policy and has
oversight regarding the rental rates for the City’s housing stock.
47
Regular Vernon Housing Commission Meeting Minutes
September 12, 2018
Page 3 of 3
Chair Cooper requested the rent rate also be agendized for the October meeting.
Alejandro Martinez, resident from the Vernon Village Park, explained that his family will be
homeless soon and requested assistance from the Vernon Housing Commission.
Chair Cooper asked him to seek assistance from City staff.
City Administrator Carlos Fandino replied that City Administration will assist.
Maggie Alvarez explained that she tried to speak to Council Members about their family situation
without any success and that is why she attended the Vernon Housing Commission meeting.
A discussion ensued between Commissioners and staff regarding emergency housing situations;
policy and procedures; legal boundaries; and limited housing stock.
Legal Counsel Allison LeMoine-Bui advised that the Vernon Housing Commission Members
cannot take any action or discuss this item other than direct staff to assist, or agendize this item for
a future meeting. Commissioners came to a consensus to agendize a discussion of emergency
housing policy procedures and discussion of previous rental ratesitems to a future Vernon Housing
Commission meeting.
Chair Cooper closed Public Comment at 6:38 p.m.
ADJOURNMENT
With no further business, at 6:40 p.m., Chair Cooper adjourned the meeting.
________________________
Kyle Cooper
Vice Chair
ATTEST:
_________________________
Maria E. Ayala
City Clerk
48
MINUTES OF THE SPECIAL VERNON HOUSING COMMISSION
MEETING OF THE CITY OF VERNON HELD WEDNESDAY,
NOVEMBER 7, 2018, IN COUNCIL CHAMBER OF CITY HALL
LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA
CALL TO ORDER & FLAG SALUTE
The meeting was called to order at 6:00 p.m. by Chair Kyle Cooper; Commissioner Melissa
Ybarra led the flag salute.
Members Present:Kyle Cooper, Melissa Ybarra, Carol Menke, Steven Froberg, Steven
Florman, Frank Gavina
Members Absent:Hector Garcia
CHANGES TO THE AGENDA
City Clerk Maria Ayala announced that are no changes to the agenda.
PUBLIC COMMENT
No public comment provided.
PUBLIC HEARING
1.Public Works
A Resolution of the Vernon Housing Commission Establishing Rental Rates
Recommendation:
A. Find that the proposed action is exempt under the California Environmental Quality Act
(“CEQA”) review because it is a continuing administrative activity that will not result in any
direct or indirect changes in the environment and therefore does not constitute a “project” as
defined by CEQA Guidelines section 15378.
B. Conduct a Public Hearing; and
C. Adopt a resolution establishing rental rates, specifically to accomplish the following:
1. Establish annual rent adjustments for occupied units;
2. Establish a method for determining rents for vacant and remodeled units, and;
3. Establish rent for recently remodeled unit located at 4321 Furlong Place.
City Clerk Maria Ayala read the proposed Resolution.
Director of Public Works Daniel Wall reported on the proposed.
49
Special Vernon Housing Commission Meeting Minutes
November 7, 2018
Page 2 of 3
Commission had questions for staff regarding the following, with staff providing responses
accordingly: questions regarding established rental rates; rationale behind rent discounts; HUD
rate; impact of lack of amenities and existing hazards on rental rates; efforts made in response to
hazards such as lead, etc.; questions over how the Fair Market Value is calculated; and concerns
over the Commission’s oversight over rental rates.
Chair Cooper opened the public hearing for public comment at 7:10 p.m.
Public Comment:
Diana Gonzales, resident, addressed the Commission regarding the following: fair market rental
rates, uniformity in rental rates for all units, procedures in place to determine fair market tiers,
questioning whether or not choosing to have an existing rental unit remodeled would increase the
tenant’s current rental rate, and clarification over what the Commission’s authority and
responsibility is regarding establishing or recommending rental rates.
A brief discussion ensued between Commissioners and staff regarding rent increases, units
remodeled and protective submarket rates.
Monica Rodriguez, resident, commented that as a single parent, the rent increase would present a
hardship and advised the Commission that a decision should not be made until notices are sent to
all tenants to attend the public hearing and have their voices heard regarding this issue. She
compared renting in Vernon versus where she used to live in Huntington Park, and reiterated Ms.
Gonzales concerns regarding uniformity in rental rates. Ms. Rodriguez also expressed her concern
over the efforts the City made regarding Exide.
Leticia Lopez, resident, inquired as to the process of the City’s relocation request list for tenants
who want to move to a different unit. Ms. Lopez also commented on the following: the adversity
rate the City had in the past was due to the environmental hazards the tenants have to deal with;
concerns regarding uniformity in rental rates; inquired as to how the new rental rates coupled with
the lack of amenities in the City will affect future interest in renting a housing unit in Vernon; and
concerns over having to potentially pay a higher rental rate for a newly remodeled unit over a unit
that was remodeled in 2010.
Chair Cooper closed the public hearing at 7:37 p.m.
A discussion ensued between Commission and staff regarding transparency, fairness, market rates,
HUD rates, adversity factor, and policies.
After considerable discussion the Commission came to a consensus to TABLE the public hearing
and proposed resolution, with various amendments, to the next Commission meeting, with
directives to staff to (1) provide notice to tenants via mail and by personal delivery of the public
hearing; and (2) that any potential rent increases would take effect until March 2019.
Amendments to proposed resolution are as follows:
-Page 2, Section 3: “four percent (4%)” shall be changed to “three percent (3%)”
50
Special Vernon Housing Commission Meeting Minutes
November 7, 2018
Page 3 of 3
-Page 2, Section 3: Last sentence, “In the event that…the four percent (4%) cap.” Shall be
deleted.
-Page 2, Section 4: Add language to the end of Section 4 as follows: “For purposes of this
Section 4, a unit temporarily vacated by an existing tenant for purposes of a remodel shall
not constitute a “vacant unit””.
-Page 2-3, Section 5: Delete Section 5.
-Page 3, Section 6: Delete Section 6.
ORAL REPORTS
No oral reports provided from staff.
Chair Cooper directed staff to look into modifying the City’s website so that City Housing
information can be easier to access.
The Commission also requested that the City conduct an analysis on cost of maintenance for the
City’s housing.
SECOND PUBLIC COMMENT
Leticia Lopez inquired if transfers of current residents will be grandfathered with the base rent and
additional 3% increases.
The Commission replied that they would not be grandfathered.
ADJOURNMENT
With no further business, at 8:35 p.m., Chair Cooper adjourned the meeting
________________________
Kyle Cooper
Vice Chair
ATTEST:
_________________________
Maria E. Ayala
City Clerk
51