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20211208 Vernon Housing Commission Agenda Packet1.City Clerk Approval of Minutes Recommendation: Approve the September 8, 2021 Regular Vernon Housing Commission meeting minutes. 1. 20210908 VHC Minutes Agenda City of Vernon Regular Vernon Housing Commission Meeting Wednesday, December 8, 2021, 6:00 PM Remote Location Via Zoom Steven Froberg, Chair Juliet Goff, Vice Chair Ronit Edry, Commissioner Steve Hermon, Commissioner Leticia Lopez, Commissioner Jorge Nevarez Jr., Commissioner Marlene Ybarra, Commissioner SPECIAL REMOTE PROTOCOLS Assembly Bill 361 (AB 361) authorizes public meetings to take place via teleconference because State and Local officials are recommending measures to promote social distancing. This meeting will be conducted entirely by remote participation via Zoom Webinar. The public is encouraged to view the meeting at https://www.cityofvernon.org/webinar-vhc or by calling (408) 638-0968, Meeting ID 821-3757-7068#. You may address the Commission via Zoom or submit comments to PublicComment@ci.vernon.ca.us with the meeting date and item number in the subject line. CALL TO ORDER FLAG SALUTE ROLL CALL APPROVAL OF 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. CONSENT CALENDAR All matters listed on the Consent Calendar are to be approved with one motion. Items may be removed from the Consent Calendar by any member of the Commission. Those items removed will be considered immediately after the Consent Calendar. Regular Vernon Housing Commission Meeting Wednesday, December 8, 2021 2.Public Works Quarterly City Housing Report Recommendation: Receive and file the December 2021 Quarterly Housing Report. 3.Public Works Vernon Housing Element Update Recommendation: A.Discuss the draft Housing Element update; and B.Recommend the City Council adopt the draft Housing Element update 1. Draft City of Vernon Housing Element 4.Public Works City of Vernon Housing Unit Rental Rates Recommendation: In light of the unforeseen impacts of the COVID-19 pandemic, and the 4% increase in the Consumer Price Index for all urban consumers this year, staff requests guidance from the Vernon Housing Commission on whether to: a) Increase rental rates for City-owned residential units by 3% for calendar year 2022 in accordance with Resolution No. VHC-8, or b) Waive rental rate increases for calendar year 2022. 1. Resolution No. VHC-8 2. VHC Agenda Item Report on Establishment of Rental Rates 3. HUD FMR Rates FY 2021 4. Consumer Price Index October 2021 5.Public Works Permanent Local Housing Allocation Application to the Department of Housing and Community Development Recommendation: Recommend the City Council approve and authorize the submittal of a Permanent Local Housing Allocation (PHLA) Program application to the California Department of Housing and Community Development. 1. Appendix C of PLHA NOFA 2. PLHA Plan 3. PLHA Program Application 6.Public Works City-Owned Housing Vacancies and Future Housing Lotteries Recommendation: Discuss current vacancies in City-owned housing stock and provide direction to staff to proceed with housing lotteries. PRESENTATIONS NEW BUSINESS Regular Vernon Housing Commission Meeting Wednesday, December 8, 2021 ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted in accordance with applicable legal requirements. Regular and Adjourned Regular meeting agendas may be amended up to 72 hours prior to the meeting. Dated this 4th day of December, 2021. By: __________________________________ Lisa Pope, City Clerk Regular Vernon Housing Commission Meeting Wednesday, December 8, 2021 ORAL REPORTS Brief reports, announcements, or directives to staff. Next regular meeting: Wednesday, March 9, 2022, at 6:00 p.m. Vernon Housing Commission Agenda Item Report Submitted by: Sandra Dolson Submitting Department: City Clerk Meeting Date: December 8, 2021 SUBJECT Approval of Minutes Recommendation: Approve the September 8, 2021 Regular Vernon Housing Commission meeting minutes. Background: Staff has prepared and hereby submits the minutes for approval. Fiscal Impact: There is no fiscal impact associated with this report. Attachments: 1. 20210908 VHC Minutes MINUTES VERNON HOUSING COMMISSION REGULAR MEETING WEDNESDAY, SEPTEMBER 8, 2021 COUNCIL CHAMBER, 4305 SANTA FE AVENUE CALL TO ORDER Vice Chair Froberg called the meeting to order at 6:02 p.m. FLAG SALUTE Vice Chair Froberg led the Flag Salute. ROLL CALL PRESENT: Steven Froberg, Vice Chair (via remote access) Juliet Goff, Commissioner (via remote access) Steve Hermon, Commissioner (via remote access) Leticia Lopez, Commissioner (via remote Access) Jorge Nevarez, Jr., Commissioner (via remote access) Marlene Ybarra, Commissioner (via remote access) ABSENT: Ronit Edry, Commissioner STAFF PRESENT: Angela Kimmey, Acting Deputy City Administrator (via remote access) Dan Wall, Public Works Director (via remote access) Zaynah Moussa, Interim City Attorney (via remote access) Lisa Pope, City Clerk (via remote access) APPROVAL OF THE AGENDA MOTION Vice Chair Froberg moved and Commissioner Nevarez seconded a motion to approve the agenda. The question was called and the motion carried 6-0, Commissioner Edry absent. PUBLIC COMMENT None. PRESENTATIONS 1. Selection of Chair and Vice Chair Recommendation: Select one member to serve as Chair and one member to serve as Vice Chair for the term ending June 30, 2022. Regular Vernon Housing Commission Meeting Minutes Page 2 of 3 September 8, 2021 City Clerk Pope presented the staff report. MOTION Commissioner Ybarra moved and Commissioner Lopez seconded a motion to select Steven Froberg to serve as Chair. The question was called and the motion carried 6-0, Commissioner Edry absent. MOTION Commissioner Lopez moved and Chair Froberg seconded a motion to select Juliet Goff to serve as Vice Chair. The question was called and the motion carried 6-0, Commissioner Edry absent. 2. Housing Element Update Overview Recommendation: This is a presentation only. No action is required by the Commission. Public Works Director Wall presented the item. In response to Commission questions, Public Works Director Wall explained the Regional Housing Needs Assessment (RHNA) allocation. 3. Quarterly City Housing Report Recommendation: Receive and file the September 2021 Quarterly Housing Report. Public Works Director Wall presented the report. MOTION Commissioner Hermon moved and Commissioner Lopez seconded a motion to receive and file the report. The question was called and the motion carried 6-0, Commissioner Edry absent. CONSENT CALENDAR MOTION Commission Hermon moved and Chair Froberg seconded a motion to approve the Consent Calendar. The question was called and the motion carried.6-0, Commissioner Edry absent. The Consent Calendar consisted of the following items: 4. Approval of Minutes Recommendation: Approve the June 9, 2021 Regular Vernon Housing Commission meeting minutes. 5. Update on Temporary Emergency Eviction Moratoria and COVID-19 Renter/Landlord Legislation Recommendation: Receive and file the update. Regular Vernon Housing Commission Meeting Minutes Page 3 of 3 September 8, 2021 ORAL REPORTS Acting Deputy City Administrator Kimmey announced that because of several considerations surrounding the City’s Housing Element, the City would be pausing its consideration of a Business Priority Housing Policy, and temporarily pausing housing lotteries and the placement of tenants in vacant units. Public Works Director Wall explained that the City abided by the appliance policy adopted by the Commission at its January 2021 meeting. He announced National Clean Up Day on September 18, 2021. ADJOURNMENT With no further business, Chair Froberg adjourned the meeting at 6:30 p.m. ________________________ STEVEN FROBERG, Chair ATTEST: _________________________ LISA POPE, City Clerk (seal) Vernon Housing Commission Agenda Item Report Submitted by: Daniel Wall Submitting Department: Public Works Meeting Date: December 8, 2021 SUBJECT Quarterly City Housing Report Recommendation: Receive and file the December 2021 Quarterly Housing Report. Background: Staff will present the Quarterly City Housing Report for the period from September 2021 through November 2021. The report highlights rent, occupancy, inspections and repairs. In conjunction with the quarterly update, City staff will provide the Commission a summary of housing related inquiries. Fiscal Impact: There is no fiscal impact associated with the report. Attachments: None. Vernon Housing Commission Agenda Item Report Submitted by: Daniel Wall Submitting Department: Public Works Meeting Date: December 8, 2021 SUBJECT Vernon Housing Element Update Recommendation: A. Discuss the draft Housing Element update; and B. Recommend the City Council adopt the draft Housing Element update Background: California State Law requires every city and county to adopt a General Plan that contains these seven elements: land use, circulation, housing, conservation, safety, open space, and noise. The State requires that cities and counties update their Housing Elements every eight (8) years. The Housing Element is subject to detailed statutory requirements and mandatory review by the California Department of Housing and Community Development. The draft Housing Element update includes the following required sections: A detailed analysis of Vernon's demographic, economic, and housing characteristics; A comprehensive analysis of constraints to producing and preserving housing; A review of the City’s progress in implementing housing policies and programs; An identification of goals, objectives, and policies, to implement the vision of the plan; and A list of sites that could accommodate new housing, demonstrating the City’s ability to meet its Regional Housing Needs Allocation (RHNA). Pursuant to Vernon Municipal Code Section 2.125, it is the Commission’s duty to advise the City Council with respect to all matters relevant to the Housing Element. As such, staff requests that the Commission recommend the City Council adopt the Housing Element update. Fiscal Impact: There is no fiscal impact associated with this report. Attachments: 1. Draft Housing Element Introduction Housing Element 2021 – 2029 | City of Vernon - 1 DRAFT DRAFT Acknowledgements City Council Melissa Ybarra, Mayor William Davis, Mayor Pro Tem Leticia Lopez, Councilmember Crystal Larios, Councilmember Judith Merlo, Councilmember City Staff Carlos Fandino, City Administrator Daniel Wall, P.E., Public Works Director Manuel Garcia, Public Works Deputy Director Angela Kimmey, Acting Deputy City Administrator Consultants The Arroyo Group Impact Sciences Cover Image Credit Steinberg Architects DRAFT DRAFT Table of Contents Introduction .................................................................................................... 1 Goals and Policies ........................................................................................... 7 Housing Programs ......................................................................................... 13 Appendix A: Housing Needs .......................................................................... 17 Appendix B: Constraints Analysis ................................................................... 19 Appendix C: Housing Resources .................................................................... 21 Appendix D: Policy Evaluation ....................................................................... 29 Appendix E: Housing Programs Detail ............................................................ 37 Appendix F: Public Participation & Community Engagement Results .............. 55 Appendix G: Summary Of Recent Housing Legislation .................................... 57 DRAFT DRAFT Housing Element 2021 – 2029 | City of Vernon - 1 Introduction Originally a residential community, Vernon has been a primarily, almost exclusively industrial city since the 1920’s. Though over the last century there has been a transition from manufacturing toward distribution, new residential was hardly developed until a new affordable development was constructed in 2015 as a part of good governance reforms. Now, in order to ensure the long- term stability and transparency of local government in Vernon, and to capitalize upon changing economic dynamics in the residential, office, retail and manufacturing markets, the City is planning its next evolution into a community which remains a center of production, yet welcomes more residents into its borders in specific mixed-use areas defined within the Westside of the City. The City of Vernon’s 2021-2029 Housing Element arises in the middle of this shift, as a blueprint for how the City can enact this transformation over the next eight years in keeping with the City’s General Plan and all of the legal requirements from the State of California. Statutory Authority/Requirements The Vernon Housing Element is an element of the General Plan required by State law to address current and future housing needs in the City (Government Code Section 65583). State law requires that Housing Elements address the following issues: • Local governments must recognize their responsibility in contributing to the attainment of the State's housing goals. • Local governments must prepare and implement housing elements that are coordinated with State and Federal efforts to provide opportunities for new housing. • Local governments must cooperate with other agencies and governments to address regional housing needs. The previous Housing Element covers from October 15, 2013 through October 15, 2021 and is part of the State’s fifth cycle of Housing Element updates. This 6th Cycle Housing Element sets policy from October 15, 2021 through October 15, 2029, defining how the city will meet requirements from the Regional Housing Needs Assessment (RHNA) developed by the Southern California Association of Governments (SCAG). Specifically, the RHNA calls for nine units to be added during the 2021-2029 planning period. DRAFT Introduction Housing Element 2021 – 2029 | City of Vernon - 2 The California Department of Housing and Community Development (HCD) is the State Agency responsible for ensuring that State housing law is being implemented at the local level. This includes review and approval of this Housing Element. Relationship to Other General Plan Elements The City of Vernon’s adopted General Plan Elements include the following: • The Land Use Element lays out the location and distribution of existing development and permitted land uses in the City. • The Circulation and Infrastructure Element identifies the planned development of the City’s transportation system and all infrastructure needs. • The Resources Element promotes the conservation, development, and sustainable use of natural and cultural resources. It also addresses air quality, water quality and global warming. • The Noise Element provides policy guidelines for controlling the noise environment in the City. • The Safety Element addresses natural hazards, such as seismic events, and human-caused hazards, such as industrial fires. State law requires that local general plans be internally consistent. As such, policies and programs in this Housing Element must be reflected in the other General Plan Elements when appropriate. For example, the Land Use Element helps implement housing policy since it determines where housing should be located and how it should look. The other elements of the General Plan directly and indirectly impact how housing develops. This includes policies for controlling noise, air quality and traffic, which affect the suitability and livability of housing. Public Participation California law requires local governments to incorporate public input when developing a Housing Element. Specifically, Government Code section 65583(c)(7) says “that the local government shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort.” DRAFT Introduction Housing Element 2021 – 2029 | City of Vernon - 3 The City of Vernon has reached out to the community to define the City’s housing needs and how to address them. Given the unique makeup of Vernon’s community and the vastly different efforts related to new housing and mixed- use development on the Westside of the City and the maintenance of the City’s existing housing stock, the outreach process this Element has run on two tracks: • Westside Specific Plan Stakeholders Advisory Committee. The development of the Westside Specific Plan has been closely coordinated with a Stakeholders Advisory Committee composed of City Council representatives, the Chamber of Commerce, business owners, property owners and brokers. In fall 2020, The Arroyo Group conducted individual interviews with eighteen potential members of the Committee. Since early 2021, when the Committee was formed, five two-hour meetings have been held. Topics of the five meetings have been: • Meeting #1 organized the committee and presented the baseline studies, including four areas under consideration for mixed-use development, including residential. • Meetings #2 and #3 established recommended goals for the project. While the primary goal was to reinvigorate Vernon’s competitive advantage as a center of production, another key goal recommended by the Committee was to increase the residential population of the City. These meetings also recommended three study areas for mixed-use development: Santa Fe North, Santa Fe South, and Pacific/Hampton, and stated the Committee’s opinion that housing on Santa Fe Avenue could not be undertaken without transportation and streetscape changes that would create a more suitable environment. • Meeting #4 involved a robust discussion of transportation changes that could be made to achieve the objective of a more suitable Santa Fe Avenue for mixed-use development. • Meeting #5 presented concepts for catalytic development projects, including residential projects on the Westside of the City. As demonstrated by the topics of discussion of the five stakeholder meetings, stakeholder concerns about new housing have been taken into account at every step along the way, resulting in sufficient direction to prepare this Housing Element’s DRAFT Introduction Housing Element 2021 – 2029 | City of Vernon - 4 recommendations related to new housing on the Westside of the City. Minutes from Westside Specific Plan Stakeholder Advisory Committee meetings are included in Appendix F. • Housing Commission Meeting. City staff and The Arroyo Group are conducting a meeting with the Housing Commission on December 8, 2021 to discuss the draft Housing Plan (Goals, Policies, Programs, and Sites). The Housing Commission consists of seven members (currently three business representatives, three resident representatives and one employee representative) who provide open and transparent management of the City’s housing units. Minutes from the Housing Commission meeting will be included in Appendix F. Key takeaways from the Housing Commission meeting included TBD. Public comment period on the draft Housing Element will last from December 5, 2021 to January 19, 2022 after which time the draft Element will be sent to HCD. Following HCD review of the draft Element, the Vernon City Council will conduct public hearings and adopt this Housing Element. DRAFT Introduction Housing Element 2021 – 2029 | City of Vernon - 5 DRAFT Housing Element 2021 – 2029 | City of Vernon - 6 Embracing the Opportunities DRAFT Goals and Policies Housing Element 2021 – 2029 | City of Vernon - 7 Goals and Policies Vernon is a unique community with a unique housing stock and history. Originally a residential and agricultural community known as Vernondale in the late nineteenth century, Vernon has been known over the past century as an “exclusively” industrial city with only a small number of housing units, which were mostly owned by the City. This housing arrangement aided leaders John B. Leonis, James and Thomas Furlong, and their descendants in maintaining control over the City for many decades. While the practices used by these leaders have been extinct since the City’s 2010 good governance reforms, the small number of voters in the City continues to present a long-term threat to professional and stable citizen governance. In response, a new housing development was constructed in 2015, and during this 6th Cycle, the City will further encourage housing development to increase the voting population. New housing will also create a more prosperous and resilient city. As the economic climate in Southern California has changed in recent decades, manufacturing and production-related uses have been increasingly displaced by trucking and distribution uses which create less jobs than their predecessors, provide less utility revenue to the City, and generate greater demands on public infrastructure. However, local industrial production is being revived in mixed-use districts with places where people come together to design, create and do business. Residential and live/work uses form part of the supportive mix of such districts, which Vernon seeks to create in specific portions of the Westside of the City. While Vernon will continue to exist as a predominantly industrial City, a new vision for housing is also being pursued. This vision is illustrated by the following four goals to this 2021-2029 Housing Element: •Goal 1: New, quality housing to attract and accommodate a broad, diverse and engaged citizenry. •Goal 2: Attractive, livable and healthy environments for residential uses. •Goal 3: Decent, safe and sanitary construction and maintenance of all housing units in the City. •Goal 4: Diversity, transparency and equal housing opportunity in the ownership and occupancy of the City’s housing stock. Figure 1 presents the policies and programs that will implement these goals. DRAFT Goals and Policies Housing Element 2021 – 2029 | City of Vernon - 8 Goal Policy Applicable Program(s) 1. New, quality housing to attract and accommodate a broad, diverse and engaged citizenry. Policy 1.1. Adopt a Westside Specific Plan which provides for the construction of new multifamily housing in suitable areas. Program 8. Westside Specific Plan Policy 1.2. Encourage the development of appropriately placed new affordable and market-rate housing through regulatory and financial incentives, when necessary. Program 8. Westside Specific Plan Program 10. Civic Center Residential Development Program 14. Housing Grant Application Working Group Policy 1.3. Launch a marketing effort to reveal the new attitude of the City of Vernon as a community which welcomes and supports new residential development. Program 9. Westside Specific Plan Marketing Policy 1.4. Introduce new residential development on available City-owned property to catalyze the market for future development. Program 10. Civic Center Residential Development Policy 1.5. Allow for modest increases in the density of existing housing sites. Program 11. Medium-Density Residential Zoning Program 12. Accessory Dwelling Unit Ordinance Policy 1.6. Create a residential zoning district to bring existing housing units into conformance with the zoning code. Program 11. Medium-Density Residential Zoning Policy 1.7. Permit the development of caretaker housing units on industrial properties when they do not provide a hazard to the health and safety of their residents. Program 13. Caretaker Housing 2. Attractive, livable and healthy environments for residential uses. Policy 2.1. Strategically locate housing sites and implement appropriate land use regulations for areas targeted for new housing so as to minimize noise, vibration, smoke, noxious gases, glare, heat, dust, odors, air pollution, and other adverse impacts associated with industrial uses, slaughtering and rendering uses, businesses that release toxic materials, and trucking and railroad facilities and routes. Program 8. Westside Specific Plan Policy 2.2. Encourage development of mixed-use districts which provide adequate amenities for targeted population(s). Program 8. Westside Specific Plan Policy 2.3. Promote street design adjacent to residential development which ameliorates noise, vibration and other impacts of freight travel and increases shade canopy. Program 8. Westside Specific Plan Policy 2.4. Pursue grants and funding sources to remediate contaminated potential housing sites in the City. Program 14. Housing Grant Application Working Group Policy 2.5. Require the development of private recreation amenities within large residential projects. Program 8. Westside Specific Plan DRAFT Goals and Policies Housing Element 2021 – 2029 | City of Vernon - 9 3. Decent, safe and sanitary construction and maintenance of all housing units in the City. Policy 3.1. Enforce all relevant building and zoning codes to ensure that all residential units are adequately maintained and protected. Program 2. Code Enforcement Policy 3.2. Continue enforcement of environmental safety regulations to ensure that all residential units are adequately maintained and protected. Program 6. Environmental Safety Enforcement Policy 3.3. Require any new residential units or those undergoing a major alteration to be equipped with air filtration systems (such as HVAC systems) and sound insulation (such as dual- paned windows) to protect residents from exposure to adverse environmental conditions. Program 1. Maintenance of City-Owned Residences Policy 3.4. Mitigate any residential displacement impacts occurring from housing demolition. Policy 3.5. Provide for the retention of housing units in the City that are physically and environmentally sound. Program 1. Maintenance of City-Owned Residences Program 3. Preservation of At-Risk Housing Policy 3.6. Accommodate the needs of disabled residents through the adopted reasonable accommodation procedure. Program 4. Housing Opportunities for Residents with Special Needs 4. Diversity, transparency and equal housing opportunity in the ownership and occupancy of the City’s housing stock. Policy 4.1. Prohibit discrimination and ensure transparency in the leasing and sales of housing in the City, particularly City-owned housing. Program 7. Equal Housing Opportunity Policy 4.2. Ensure transparency in the selection and approval of tenants of City-owned housing. Program 7. Equal Housing Opportunity Program 14. Housing Lottery Policy 4.3. Address the housing needs of special populations and extremely low-income households through emergency shelters, transitional housing, supportive housing and single- room occupancy units. Program 4. Housing Opportunities for Residents with Special Needs Policy 4.4. Encourage the development of housing specifically for employees of Vernon businesses, while protecting against overconcentrations of housing by any one business. Program 16. Employee Workforce Housing Program 13. Caretaker Housing Policy 4.5. Encourage homeownership, reasonable rent increases and other measures to promote the stability of the full-time resident population. Program 8. Westside Specific Plan Marketing Policy 4.6. Preserve the affordability of existing covenanted affordable housing units in the City. Program 3. Preservation of At-Risk Housing Policy 4.7. Consider options to transfer the City’s housing stock to small-scale private ownership, including potential purchase by existing tenants. Program 17. City-Owned Housing Disposition Study Figure 1. Housing Element Goals & PoliciesDRAFT Goals and Policies Housing Element 2021 – 2029 | City of Vernon - 10 Quantified Objectives Based on the needs, resources, and constraints in the City of Vernon, the following objectives represent the City’s objectives for addressing its housing challenges. The “New Construction” objective refers to the minimum number of new units that will be constructed using public and/or private sources over the 2021-2029 planning period. This corresponds to the City’s Regional Housing Needs Assessment (RHNA) assigned by the Southern California Association of Governments in 2020. The “Rehabilitation” objective refers to the number of existing units expected to be rehabilitated during the 6th Cycle. The “Conservation/Preservation” objective refers to the preservation of affordable housing stock throughout the 6th Cycle planning period. 6th Cycle Housing Element Objectives Income Category New Construction (2021-2029) Rehabilitation (2021-2029) Conservation/ Preservation (2021-2029) Very Low 5 units 2 City-owned housing units will be rehabilitated due to age All existing covenanted affordable housing units will be preserved Low 4 units Moderate 0 units Above Moderate 0 units Total 9 units Figure 2. Source: City of Vernon, 2021. DRAFT Housing Element 2021 – 2029 | City of Vernon - 11 DRAFT Housing Element 2021 – 2029 | City of Vernon - 12 DRAFT Housing Programs Housing Element 2021 – 2029 | City of Vernon - 13 Housing Programs To implement the City’s housing policies, 17 programs have been defined that will advance all the City’s housing goals. As illustrated in Figure 1, these programs tie back to the goals and the policies that provide the backbone of the City’s housing strategy. An overview of each of the 17 programs is given below; detailed descriptions of each program, with action plans, are given in Appendix E. Program 1: Maintenance of City -Owned Residences. The City owns 26 housing units in Vernon, all of which are rented. The City is responsible for the maintenance and upkeep of these units. All City-owned units were determined to be in good repair. The City of Vernon recently renovated 24 of their 26 City- owned units. The remaining two units, though they are in good, habitable condition, will be renovated due to age over the next eight-year planning period. The City will continue to provide maintenance to these units, thus ensuring upkeep for Vernon’s City-Owned housing stock. Program 2: Vernon Code Enforcement Program. As additional privately-owned residential units are built in Vernon the need for code enforcement will increase. At the conclusion of the 6th Cycle, the City will review the need to dedicate additional staff time to code enforcement. Program 3: Preservation of At-Risk Housing. There is one affordable family housing development in the City of Vernon funded through Low-Income Housing Tax Credits (LIHTC). This development, the Vernon Village Park Apartments, is not at risk of conversion to market rate housing since the development was completed in 2015. Vernon Village Park Apartments will not be eligible to convert to market rate housing until 2070. Program 4: Housing Opportunities for Residents with Special Needs. The Fair Housing Act, as amended in 1988, requires that cities and counties provide reasonable accommodation to rules, policies, practices, and procedures where such accommodation may be necessary to afford individuals with disabilities equal housing opportunities. The City has adopted procedures in their Zoning Ordinance for housing for persons with disabilities and will provide information to residents through the City’s website. Program 5: Priority Water and Sewer Services. In accordance with Government Code Section 65589.7, after the Vernon Housing Element is adopted by City Council, a copy will be immediately delivered to all public DRAFT Housing Programs Housing Element 2021 – 2029 | City of Vernon - 14 agencies or private entities that provide water or sewer services to properties within Vernon. Program 6: Environmental Safety Enforcement. The City will continue to enforce health and environmental safety regulations of industrial businesses through its Health Department which can help protect nearby residents. Program 7: Equal Housing Opportunity Program. The City shall take meaningful actions to address significant disparities in housing needs and access to opportunity for all persons regardless of all characteristics protected by the California Fair Employment and Housing Act. Actions include publicizing information about fair housing law, referring complaints, and training property owners and managers about responsible management of environmental hazards. Program 8: Westside Specific Plan. The City is preparing the Westside Specific Plan which will enable residential and mixed-use development in focused areas within the Westside of the City. Multifamily residential development of 3-7 stories in height will be permitted by-right, and infrastructure and environmental standards will be put into place to facilitate the development of housing within the targeted areas. Program 9: Westside Specific Plan Marketing. After the City of Vernon completes the Westside Specific Plan the City will initiate a Westside Specific Marketing program to inform developers of the new opportunity that will exist on the Westside of the City. This Marketing program aims to market the Westside of Vernon as a new center for urban multifamily residential and mixed-use development. Program 10: Civic Center Residential Development. Through this program the City will put out a request for proposals (RFP) for the Petrelli/City Yard site for a mixed-use development per Surplus Land Act guidelines. The City desires to maximize the amount of housing provided on site and envisions a mid-rise residential development with approximately 325 residential units, with 25% being affordable to residents earning 80 percent of the area median income or lower. Program 11: Medium Density Residential Zoning. A large amount of housing in the City of Vernon is situated on land not zoned for residential uses. This program includes adopting a zoning designation to make all existing housing conforming. In addition, the program will allow a few units to be built per property. In most cases, the new residential zoning capacity of the housing sites will be greater than the number of existing residential units on the sites. DRAFT Housing Programs Housing Element 2021 – 2029 | City of Vernon - 15 Program 12: Accessory Dwelling Unit Ordinance. The City of Vernon will develop and adopt an ADU ordinance within the sixth cycle planning period. The ADU ordinance will be in conformance with State law and encourage accessory dwelling unit construction. Program 13: Caretaker Housing. Industrial businesses in Vernon have with regularity expressed interest in permitting caretaker housing units to be constructed on their properties. The City will adopt a code amendment to allow caretaker housing to be constructed on industrial properties in appropriate locations throughout the City, as long as such housing does not injure the health and welfare of residents or other industrial users. Program 14: Housing Lottery. Since the institution of the City’s good governance reforms in the early 2010’s, the City has used a lottery system to guide the lease-up of vacant City-owned residential units. The City will continue to administer this lottery system throughout the sixth cycle period. Program 15: Housing Grant Application Working Group. The City desires to seek out grants that can expand revenue for important housing programs while providing more financial flexibility for General Fund revenues. As opportunities arise, the City will form a interdepartmental working group to identify unmet housing needs and focus on appropriate regional grant opportunities. Program 16: Employee Workforce Housing. The Public Works Department will inform local business owners of their ability to develop employee workforce housing their employees. It will cooperate with business owners that seek to develop employee housing in the City, while also ensuring that such housing does not comprise an overconcentration of residents employed by any one business in the electorate of the City. Program 17: City-Owned Housing Disposition Study. To provide long-term protection against any mismanagement of City-owned housing and provide opportunities for equity building, the City will undertake a study to consider the sale of city-owned housing units including the sale of these units to current tenants. The study would address the legal and financial constraints on such actions and provide guidelines for the appropriate prices at which units could be disposed. DRAFT Housing Element 2021 – 2029 | City of Vernon - 16 DRAFT Appendix A: Housing Needs Housing Element 2021 – 2029 | City of Vernon - 17 Appendix A: Housing Needs This section is under development. DRAFT Appendix A: Housing Needs Housing Element 2021 – 2029 | City of Vernon - 18 DRAFT Appendix B: Constraints to Future Housing Development Housing Element 2021 – 2029 | City of Vernon - 19 Appendix B: Constraints to Future Housing Development This section is under development. DRAFT Appendix B: Constraints to Future Housing Development Housing Element 2021 – 2029 | City of Vernon - 20 DRAFT Housing Element 2021 – 2029 | City of Vernon - 21 Appendix C: Housing Resources Planning, financing, developing, and operating housing requires resources of many varieties, such as land, financial, and human resources. This Appendix summarizes the City’s requirement for adding housing within the City of Vernon, identifies sites on which that requirement can be accommodated, identifies resources to financing new housing, recognizes City policies and programs that will impact housing development, and discusses opportunities for energy conservation. Future Housing Needs State law requires that each community build a certain number of new housing units to keep up with the region’s housing need. The Southern California Association of Governments (SCAG) 6th Housing Element Cycle Regional Housing Needs Allocation (RHNA) for the City of Vernon is nine (9) units. This section discusses the City of Vernon’s ability to accommodate their RHNA during the eight-year planning period. RHNA Requirement & Adequacy of the Sites Inventory The RHNA covers the planning period from June 30, 2021, through October 15, 2029. The City of Vernon must identify adequate land with appropriate zoning and development standards to accommodate its allocation of the regional housing need. The City of Vernon’s required nine RHNA units are split between the very low- and low-income levels as seen in Figure C-1. Figure C-1. Source: Southern California Association of Governments. City of Vernon 6th Cycle Regional Housing Needs Allocation Income Level Units Very-Low Income (<50% of AMI) 5 Low-Income (50 to 80% of AMI) 4 Moderate-Income (80 to 120% of AMI) 0 Above Moderate Income (>120% of AMI) 0 Total 9 DRAFT Appendix C: Housing Resources Housing Element 2021 – 2029 | City of Vernon - 22 Housing Site: 2323 E Vernon Ave 2323 E. Vernon Ave. is a four-acre site adjacent to Vernon City Hall and Furlong Place, a residential community of ten homes. Like City Hall and Furlong Place, it is owned by the City of Vernon, which leases a portion of the site to Petrelli Electric, a power line maintenance and construction company based in Agua Dulce (near Santa Clarita) which uses the site for a small office and storage of vehicles and equipment for its operations in the central Los Angeles area. The lease is month-to-month and the City has informed the tenant of its intention to redevelop the property. The rear of the property is used as a storage yard for City vehicles. However, the City has identified other appropriate storage locations where it plans to reaccommodate its fleet. The site is located within the Westside Specific Plan and will be zoned for by- right housing development. Additionally, as expressed in Program #10, the City will issue an RFP for the residential development of this site. The RFP will be conducted pursuant to the requirements of the Surplus Land Act. Environmental constraints include the presence of an underground water well on the rear portion of the site. However, the site has good vehicular access and is fully provisioned with utility services. Abutting uses to the west are an office building and the abutting use to the north, while a logistics facility, orients its truck activities further away from this site. The site possesses all basic utility services including water, sewer, storm drain, electrical service, gas, and broadband internet. Based on the type of development located next door on Furlong Place, the site can accommodate the construction of twenty small lot single-family homes on the front two acres of land which do not interfere with the well. Given that the site would be developed pursuant to the Surplus Land Act, first opportunity would be given to an affordable housing developer to acquire the site. While single-family homes are not typically affordable, there are a number of affordable housing developers which develop bungalow courts and other single-family development types which can achieve unit sizes and development costs similar to those of an ADU (See Figure C-2). If the land is provided for free or at a discount, such projects can be sold or rented at lower-income prices without need for additional public subsidy. Given the intense housing crisis in Southern California, we anticipate strong demand for these units when offered at these prices. For this reason the Element claims realistic capacity for 20 low- income units on the site. DRAFT Appendix C: Housing Resources Housing Element 2021 – 2029 | City of Vernon - 23 Figure C-2. Source: Urbanize Los Angeles, Curbed LA. While the single-family concept presents a feasible development potential, the City’s desire is to maximize the number of units feasible on the site. The Arroyo Group, Lorcan O’ Herlihy (LOHA) Architects and HR&A Advisors identified and evaluated a development concept for the site with 325 residential units and a small amount of ground-floor commercial space in a seven-story podium structure. Per Surplus Land Act guidelines, 25% of the units would be covenanted as affordable to lower-income households. The concept assumed that the development team would assume the cost to move the existing water well ($5.3 million) and pay for streetscape improvements ($0.8 million). Despite the costs and affordable housing requirements, a residual land value of $7 million would still result, making the development feasible, since the City would be willing to sell or lease the land for less than market value. Zoning for a Variety of Housing Types The City of Vernon’s housing element must identify and analyze sites with appropriate zoning that will encourage and facilitate a variety of housing types. Emergency Shelters Emergency shelters will be permitted by right in the City’s Santa Fe North zone, as identified in the Westside Specific Plan (Program #8). Within this zone the residential uses permitted are anticipated to be live-work units and emergency shelters. The Santa Fe North zone is currently occupied by many old vacant buildings that have the potential to be converted into shelters for unhoused residents. Additionally, The Santa Fe North zone is in close proximity to public transit and the streetscape within this zone will be improved through the Westside Specific Plan. Emergency Shelters permitted by right in the City’s Santa Fe North zone can accommodate up to 40 beds per shelter. A review of Small Affordable Housing Developments Development Type Units Income Restriction Population 11909 Willowbrook Avenue – Restore Neighborhoods LA Bungalow Courts 7 50% or below AMI Unhoused South Los Angeles Bungalow Court – Restore Neighborhoods LA Bungalow Courts 8 30% or below AMI Unhoused DRAFT Appendix C: Housing Resources Housing Element 2021 – 2029 | City of Vernon - 24 similar emergency shelters within the Los Angeles region reveals that a 40 bed emergency shelter takes up approximately .27 acres. Lots in the Santa Fe North zone range from .07 to 2.87 acres. As such, the area can accommodate its sufficient capacity of emergency shelters to serve the homeless population in the City of Vernon, which was last counted at 70 individuals during the 2020 LAHSA Homeless Count. Transitional and Supportive Housing According to State Government Code Section 65583(a)(4 & 5), transitional and supportive housing are considered residential uses and subject to only those restrictions that apply to other residential dwellings of the same type in the same zone. Vernon Municipal Code 26.4.6-4 explicitly permits supportive and transitional housing in the Housing Overlay Zone. While like all types of housing it is subject to a Conditional Use Permit, the Westside Specific Plan (Program #9) will permit by-right housing development, including transitional and supportive housing, in sections of the Westside. Farmworker Housing The City of Vernon does not have a farmworker population; therefore, sites do not need to be identified. Manufactured Homes and Factory-Built Housing Manufactured homes are permitted in the same areas as other types of housing. Multi-family Rental Housing All residential zones in Vernon permit multi-family rental housing. Single-Room Occupancy Units (SROs) Single-room occupancy units are commonly located in buildings which date from the early twentieth century. The Westside Specific Plan (Program #9) will allow such units to be established in residential mixed-use districts along Santa Fe Avenue, which is where the greatest number of these buildings exist in Vernon. DRAFT Appendix C: Housing Resources Housing Element 2021 – 2029 | City of Vernon - 25 Accessory Dwelling Units (ADUs)/ Junior Accessory Dwelling Units (JADUs) The City will adopt an accessory dwelling unit ordinance (Program #13) pursuant to State law to allow ADUs and JADUs to be constructed on single- and multi-family properties. Financial Resources for Housing For the 2021-2029 Housing Element planning period, the City anticipates funding available from the following programs: Tenant-Based Subsidies There are a wide variety of tenant-based subsidies that are available from government agencies to support tenants in the payment of rent for apartments on the open market. Tenant-based subsidies could be used to pay for City- owned or private housing units. Below are a few of the most important tenant- based subsidies: • The Housing Choice Voucher Program (Section 8) provides rental assistance payments to owners of private market rate units on behalf of extremely low-income tenants. • The Veterans Affairs Supportive Housing (VASH) program combines Housing Choice Vouchers with rental assistance for homeless veterans. • The Los Angeles County Department of Mental Health (DMH) Shelter Plus Care grant provides subsidized housing and supportive services for individuals and families that meet the Department of Housing and Urban Development (HUD)’s definition of homelessness. • The Family Self-Sufficiency Program provides an escrow/savings account to help welfare recipients transition off welfare. As Vernon does not have its own housing authority, all programs are administered by larger government entities including the Los Angeles County Development Authority (LACDA). Low-Income Housing Tax Credits The workhorse of funding for affordable rental housing in the United States, the Low-Income Housing Tax Credit (LIHTC) program gives State and local LIHTC-DRAFT Appendix C: Housing Resources Housing Element 2021 – 2029 | City of Vernon - 26 allocating agencies the equivalent of approximately $8 billion in annual budget authority to issue tax credits for the acquisition, rehabilitation, or new construction of rental housing targeted to lower-income households. In California, these credits are distributed by the Tax Credit Allocation Committee (TCAC), which awards projects funding in the Senior and Family categories. Income levels generally range from 30% to 60% AMI. Tax credits come in the 9% and 4% variety. The more valuable 9% tax credits have always been subject to a competitive process; however, the 4% tax credits have recently become competitive in recent years. Thus in order for a project to be competitive, there are certain characteristics that projects must have: • Projects must generally include a minimum of 40 to 50 units, and a maximum of 100 to 150 units, to ensure that the affordable housing developer can earn a sufficient developer fee to make the project worth its while. • Most projects need a local match. The match may be in-kind (land) or financial. • Locational and other scoring criteria must be met. This includes proximity to services and public transit. Tax credits are typically used for projects which are 100% affordable; however, the regulations allow for up to 20% of units to be market-rate. There is also the California Housing Financing Agency (CalHFA) and California Public Finance Authority (CalPFA)’s 80/20 Program, which allows for tax credits to be applied to 20% or greater affordable units in large, largely market-rate developments. Brownfields Funding In the event that environmental site analyses determine that a housing site has contaminated soil, brownfields funding may be needed to offset remediation costs. The U.S. Environmental Protection Agency (EPA) and California Department of Toxic Substances Control (DTSC) administer several types of brownfield grant and loan programs, particularly for publicly-owned sites. Historic Tax Credits A federal historic tax credit of 20% is available for the rehabilitation of historic, income-producing buildings that are determined by the Secretary of the Interior to be “certified historic structures.” In 2019, the State of California also approved a 20% or 25% credit for the rehabilitation of such structures. DRAFT Appendix C: Housing Resources Housing Element 2021 – 2029 | City of Vernon - 27 Private Financing Vernon has an active real estate market which attracts private equity and debt to finance acquisition, rehabilitation and construction projects. While the financing of new market-rate housing would be new to Vernon, there is a definite pattern of banks and equity investors who have increasingly been willing to invest in housing development projects in the nearby Arts District, Boyle Heights, and Historic South Central Los Angeles. DRAFT Appendix C: Housing Resources Housing Element 2021 – 2029 | City of Vernon - 28 DRAFT Housing Element 2021 – 2029 | City of Vernon - 29 Appendix D: Policy Evaluation State Government Code (GC) Section 65588 calls on a local government to “…review its housing element as frequently as appropriate to evaluate all of the following: (1) The appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal. (2) The effectiveness of the housing element in attainment of the community's housing goals and objectives. (3) The progress of the city, county, or city and county in implementation of the housing element.” The development of the 2021-2029 Housing Element included an evaluation of how the City has implemented the policies of the 5th Cycle Housing Element. The table on the following pages summarizes the status, effectiveness, and appropriateness of current housing policy programs, as well as any barriers to implementation. DRAFT Housing Element 2021 – 2029 | City of Vernon - 30 Status of Housing Element Policies (5th Cycle Housing Element) Housing Element Policy Result Evaluation Continue/Modify/ Delete Goal H-1: Ensure that all housing units are maintained in decent, safe, and sanitary condition. Housing Element Policy 1.1 Continue to enforce all relevant building and zoning codes to ensure that all residential units are adequately maintained. The City's Public Works Division is responsible for code enforcement activities. Due to the limited number of units in the City, staff can accurately monitor all units and has determined that all are in good repair. The City has been effective in maintaining housing conditions in the City and responds to complaints as needed. By 2021, the City has renovated 24 of its 26 City-owned dwelling units and added heating, ventilation, and air conditioning (HVAC) systems. The City will modify the two remaining City-owned units within the 6th cycle planning period. Code enforcement will become more important and necessary in the future as the number of housing units increase in the City. Continue. Housing Element Policy 1.2 Require any new or residential units undergoing a major alteration to be equipped with air filtration systems (such as HVAC systems) and sounds insulation (such as dual-paned windows) to protect residents from exposure to adverse environmental conditions. The City actively pursues maintenance on City-owned units, providing renovations on vacated units and repairs as needed on occupied units. The City successfully completed the renovation of 24 units by 2021. Renovations included adding HVAC systems and providing insulation for sound protection and energy conservation purposes. The Vernon Village Park Apartments were built with MERV 13 air filters, which were state of the art in 2015, when the apartments opened. The City owns many residences in Vernon. The City is fully involved with the maintenance and upkeep of the properties, and will continue to provide these services on other units, as they are needed. All new and remodeled units will be required to provide HVAC systems and sound insulation protection, such as dual paned windows. Continue. Housing Element Policy 1.3 Mitigate any residential displacement impacts occurring as a result of residential demolition. No residential units were demolished during the last planning period. The City is committed to maintaining the existing housing units in the City. The City is committed to mitigating residential displacement impacts, should they occur. Continue. DRAFT Appendix C: Housing Resources Housing Element 2021 – 2029 | City of Vernon - 31 Status of Housing Element Policies (5th Cycle Housing Element) Housing Element Policy Result Evaluation Continue/Modify/ Delete Goal H-2: Maintain all existing dwelling units within the City. Housing Element Policy 2.1 Provide for the retention of existing residential units in the City that are economically and physically sound. All units in the City were retained during the last planning period. The 74 residential units in the City have all been determined to be in good condition. A focus of housing policy in Vernon is to preserve the existing housing stock as well as maintain safe and viable housing units. Continue. Housing Element Policy 2.2 Continue to accommodate the needs of disabled residents through the adopted reasonable accommodation procedure. As of 2021, there are no assisted housing units for disabled residents in the City. Vernon Village, an affordable development opened in 2015, features 45 affordable units which are publicly assisted. While these units are not specifically targeted for disabled residents, the units meet standards for public buildings as defined by Chapter 11B of the California Building Code. 21 of the City’s 24 occupied rental units are rented at levels that are affordable to very low-income tenants, though the City is currently raising rents according to the Consumer Price Index (CPI) to approximate market rate rents. While there is no assisted housing for disabled residents in the City that requires monitoring, the City will continue this policy. Continue. DRAFT Appendix C: Housing Resources Housing Element 2021 – 2029 | City of Vernon - 32 Status of Housing Element Policies (5th Cycle Housing Element) Housing Element Policy Result Evaluation Continue/Modify/ Delete Goal H-3: Create opportunities for the development of new housing in areas of the City that have the least potential for adverse impacts associated with established industrial uses and truck routes. Locate such new housing nearby community services. Housing Element Policy 3.1 Implement the Housing Overlay Zone via the Zoning Ordinance and Zoning map to allow for a limited amount of new housing construction. The City adopted the Housing Overlay Zone in 2007. Implement new housing zoning tools, such as the Westside Specific Plan, to encourage a broader level of housing construction in the City. Modify. Housing Element Policy 3.2 Strategically locate sites for new housing so as to minimize noise, vibration, smoke, noxious gases, glare, heat, dust, odors, air pollution, and other adverse impacts associated with industrial uses, slaughtering and rendering uses, businesses that release toxic materials, and trucking and railroad facilities and routes. The Vernon Village housing development was constructed in 2015, per analysis conducted in the 5th Cycle Housing Element that determined this was one of the two best sites for housing in the City. Sites should continue to be located in areas where industrial impacts are minimized. The City will also undertake appropriate actions to minimize impacts in areas adjacent to residentially targeted zones. Continue. Housing Element Policy 3.3 Encourage development of residential uses in strategic proximity to schools, recreational facilities, commercial areas, parks and other public spaces, and transit routes. The Vernon Village housing development was constructed in 2015. It is located .5 mile from schools and parks. While locating housing close to schools is good policy for family-oriented housing, other types of housing may be better suited for proximity to other types of amenities. Residential development should occur in proximity to amenities, but those amenities may be defined differently. Modify. DRAFT Appendix C: Housing Resources Housing Element 2021 – 2029 | City of Vernon - 33 Status of Housing Element Policies (5th Cycle Housing Element) Housing Element Policy Result Evaluation Continue/Modify/ Delete Goal H-4: Continue to promote the availability of a range in existing unit types and sizes, and equal housing opportunity in the City’s housing market on the basis of age, race, sex, marital status, ethnic background, source of income, homelessness, physical disabilities, and other factors. Housing Element Policy 4.1 Prohibit discrimination in the availability of existing and new housing. The City has not been advised of any discriminatory practices that have occurred in regards to the availability of housing. The City will take a proactive approach in enforcing anti-discrimination laws. The City has received no complaints regarding any discriminatory actions and will continue to enforce all fair housing law. Prior to 2012, the City's Zoning Ordinance did not allow the development of new housing in the City. As such, housing discrimination related to the siting of housing was not an issue. This program was updated in 2008 to address a range of fair housing concerns related to the existing housing stock, including access for persons with disabilities or special needs, providing greater access to equal housing opportunity. As more private residential units are expected to be built in Vernon, the City will remain proactive about enforcing anti-discrimination laws. Continue. Housing Element Policy 4.2 Address the housing needs of special populations and extremely low-income households through emergency shelters, transitional housing, supportive housing, and single-room occupancy units. With the development of Vernon Villages, the City of Vernon has seen an increase of 45 new affordable units within the City as of 2015. The program has been successful and more than doubled Vernon’s housing stock during the 5th cycle planning period. Continue. Figure D-1. Source: City of Vernon , 2021. DRAFT Housing Element 2021 – 2029 | City of Vernon - 34 Quantitative Objectives Progress The 2014-2021 Housing Element identified overall objectives for housing production, rehabilitation, conservation, and preservation. These objectives represented aspirational goals for City accomplishments and exceeded the City’s state obligations. (The Regional Housing Needs Assessment during the 5th Cycle was two units.) The following table summarizes actual accomplishments during the Plan period. 2014-2021 Housing Element Objectives Income Category New Construction Rehabilitation Conservation Objective Outcome Objective Outcome Objective Outcome Extremely Low- and Very-Low Income 2 27 0 5 0 29 Low- Income 47 17 0 0 Moderate -Income 0 0 7 31 Above Moderate -income 0 1 0 0 Total 49 45 7 5 31 26 Figure D-2. Housing Element Objectives Progress. DRAFT Appendix E: Housing Programs Detail Housing Element 2021 – 2029 | City of Vernon - 35 DRAFT Housing Element 2021 – 2029 | City of Vernon - 36 DRAFT Housing Element 2021 – 2029 | City of Vernon - 37 Appendix E: Housing Programs Detail The programs that will be effective in the implementation of the Housing Element policies are described in the sections that follow. Program 1: Maintenance of City-Owned Residences Detail. The City owns 26 housing units in Vernon, all but three of which are rented. The City is responsible for the maintenance and upkeep of these units. All City-owned units were determined to be in good repair. The City of Vernon recently renovated 24 of their 26 City-owned units. The remaining two units, though they are in good, habitable condition, will be renovated due to age over the next eight-year planning period. The City continues to provide maintenance to these units, thus ensuring upkeep for Vernon’s City-Owned housing stock. City’s Role in Implementation. The Department of Public Works is responsible for coordinating the maintenance of City-Owned residences. The day-to-day oversight of the program is under the direction of the Director of Public Works. Source of Funding. General Fund. 2021-2029 Program Objectives. To renovate the final two unrenovated City- Owned residences. The City will continue to provide maintenance to City- Owned residences over the 6th cycle planning period. Agency Responsible for Implementation. The Department of Public Works is responsible for coordinating the maintenance of City-Owned residences. Implementation Schedule. The Department of Public Works will continue to provide maintenance to City-Owned residences over the 6th Cycle planning period. DRAFT Appendix E: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 38 Program 2: Vernon Code Enforcement Program. Detail. Of the fifty-two non-City owned units located in Vernon, none were determined by the City to be in need of substantial rehabilitation. Forty-five of these units belong to the Vernon Village Park Apartments, an affordable family development which was completed in 2015. Due to the limited number of privately owned units in the City, a code enforcement program would have limited application at this time. However, it is nonetheless imperative that residential units be adequately maintained for health, safety, and aesthetic concerns. Public Works staff is active in the community and will enforce the City’s code to eliminate and prevent unsafe conditions in residential units. Public Works staff responds to reports of code violations within the week that they are reported and enforces applicable laws to ensure the safety and preservation of all housing units within the City. As additional privately-owned residential units are built in Vernon the need for code enforcement will increase. At the conclusion of the 6th Cycle, the City will review the need to dedicate additional staff time to code enforcement. City’s Role in Implementation. To enforce the City of Vernon’s building code and ensure the safety and preservation of all housing units in Vernon. Source of Funding. General Fund. 2021-2029 Program Objectives. The City continues to inspect privately owned residential units on an as-needed basis. Agency Responsible for Implementation. The Public Works Department Building Division of the City of Vernon. Responsibility for this program falls under the Public Works Director. Implementation Schedule. The Building Division of the Public Works Department Code will continue to implement the program over the 6th Cycle planning period. DRAFT Appendix E: Housing Programs Detail Housing Element 2021 – 2029 | City of Vernon - 39 Program 3: Preservation of At-Risk Housing. Detail. There is one affordable family housing development in the City of Vernon funded through Low-Income Housing Tax Credits (LIHTC). This development, the Vernon Village Park Apartments, is not at risk of conversion to market rate housing since the development was completed in 2015. Vernon Village Park Apartments will not be eligible to convert to market rate housing until 2070. The Vernon Village Park Apartments are on property owned by the City and ground leased to Meta Housing Corporation, a developer of affordable housing and operated by Solari Enterprises, a full-service property management organization specializing in multifamily affordable housing. Because the development is owned and operated by entities that prioritize affordable housing, they have a small, but not negligible, risk of converting to market rate in the far future. Under this program, the City of Vernon will continue to monitor all units considered at risk of conversion to market rate units in the future. The City of Vernon continues to also assist property owners in maintaining the affordability of these units through grants and other means. Finally, the City will require the timely notification of tenants in the event the owners intend to convert the affordable units to market-rate units. Source of Funding. General Fund. 2021-2029 Program Objectives. To continue to monitor the status of the existing and any new affordable housing units. Agency Responsible for Implementation. The responsible agency is the City of Vernon’s Public Works Department, led by the Public Works Director. Implementation Schedule. The program will be implemented throughout the 6th Cycle. DRAFT Appendix E: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 40 Program 4: Housing Opportunities for Residents with Special Needs Detail. The Fair Housing Act, as amended in 1988, requires that cities and counties provide reasonable accommodation to rules, policies, practices, and procedures where such accommodation may be necessary to afford individuals with disabilities equal housing opportunities. The City has adopted procedures in their Zoning Ordinance for housing for persons with disabilities and continues to provide information to residents through the City’s website. Source of Funding. General Fund. 2021-2029 Program Objectives. To continue to implement its reasonable accommodation procedure on an as-needed basis. Agency Responsible for Implementation. The responsible agency is the City of Vernon’s Public Works Department, led by the Public Works Director. Implementation Schedule. The program will be implemented throughout the 6th Cycle. DRAFT Appendix E: Housing Programs Detail Housing Element 2021 – 2029 | City of Vernon - 41 Program 5: Priority Water and Sewer Services. Detail. In accordance with Government Code Section 65589.7, after the Vernon Housing Element is adopted by City Council, a copy will be immediately delivered to all public agencies or private entities that provide water or sewer services to properties within Vernon. Source of Funding. General Fund. 2021-2029 Program Objectives. To deliver, in timely fashion, a copy of the 6th Cycle Housing Element to public agencies or private entities that provide water and/or sewer services within Vernon. Agency Responsible for Implementation. The responsible agency is the City of Vernon’s Public Works Department, led by the Public Works Director. Implementation Schedule. The program will be implemented by the end of 2022. DRAFT Appendix E: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 42 Program 6: Environmental Safety Enforcement. Detail. The City continues to enforce health and environmental safety regulations of industrial businesses through its Health and Environmental Control Department (HECD) which can help protect nearby residents. The Public Works Department will inform HECD of any residential development applications, construction projects, and certificates of occupancy extended in the City so that HECD can ensure compliance of neighboring businesses with applicable regulations in their operations. Source of Funding. General Fund. 2021-2029 Program Objectives. To enforce health and environmental safety regulations for industrial businesses operating near residential uses. Agency Responsible for Implementation. The responsible agency is the City of Vernon Health and Environmental Control Department, led by the Director of Health. Implementation Schedule. The program will be implemented throughout the 6th Cycle. DRAFT Appendix E: Housing Programs Detail Housing Element 2021 – 2029 | City of Vernon - 43 Program 7: Equal Housing Opportunity Program. Detail. The City shall take meaningful actions to address significant disparities in housing needs and in access to opportunity for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. As the number of privately-owned housing units increases in Vernon, the City will take actions including: • Publish on the City’s website clear information warning entities that would potentially discriminate about the enforcement of fair housing law; • Provide a staff point of contact to refer housing-related complaints to the Housing Rights Center, • Ensure environmental hazards are not disproportionately concentrated in low-income communities of color. • Explore offering training to property owners and managers regarding responsible management of environmental hazards. Assist in outreach to tenants to inform them of their rights to live in habitable housing regardless of income, race, or immigration status. • Develop a code enforcement program that holds property owners accountable, when necessary. Source of Funding. General Fund and other eligible funding sources. 2021-2029 Program Objectives. To establish a point of contact to refer fair housing complaints to the Housing Rights Center. Agency Responsible for Implementation. The Public Works Department. Responsible party is the Public Works Director. Implementation Schedule. The program is done on an ongoing basis throughout the planning period. DRAFT Appendix E: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 44 Program 8: Westside Specific Plan. Detail. The City of Vernon is preparing a Specific Plan for the Westside of the City. This Specific Plan has six goals: Reinvigorate the City’s competitive advantage as a center of production, strengthen and provide long-term stability to the City’s fiscal position, increase the residential population in order to increase access to proportionally allocated Federal and State funding, to strengthen the City’s governance by providing more voters and candidates for elected office, and to help meet regional housing needs, diversify and reorient the Westside’s land uses to take advantage of changes in the economic landscape of Southern California, increase amenities available to local residents and workers, and create a physical environment that is supportive of diversified land uses, welcoming to the larger region, and enhancing to the City’s image and identity. Development standards and procedures will allow multifamily residential development of 3-7 stories by-right in new construction and adaptively reused buildings. The Specific Plan, in keeping with State law, will evaluate the adequacy of all infrastructure services required to accommodate the residential development and provide a mechanism to address them should there be any deficits. Complete streets interventions and truck restrictions on key residential corridors will be implemented. The Specific Plan’s Program EIR will also set forth all necessary mitigation measures to protect the health of residents and the integrity of the surrounding environment. Additionally, the Westside Specific Plan will permit transitional and supportive housing wherever multifamily housing is permitted, and designate appropriate zones for by-right emergency shelters of up to 40 beds, along with complying with all other state requirements. Source of Funding. General Fund. 2021-2029 Program Objectives. To adopt a Specific Plan for the Westside of the City which permits by-right residential uses. Agency Responsible for Implementation. The responsible agency is the Public Works Department. The responsible party is the Public Works Director. Implementation Schedule. The Specific Plan is currently under development and will be adopted by October 15, 2022. DRAFT Appendix E: Housing Programs Detail Housing Element 2021 – 2029 | City of Vernon - 45 Program 9: Westside Specific Plan Marketing Detail. After the City of Vernon completes the Westside Specific Plan the City will initiate a Westside Specific Marketing program to inform the developers of the new opportunity that will exist on the Westside of the City. This Marketing program aims to market the Westside of Vernon as a new center for urban multifamily residential and mixed-use development. This program will include identifying a development coordinator who will be responsible for marketing the new Westside of Vernon, soliciting residential and multi-family developers, and generating interest in residing and conducting business on the Westside. The development coordinator responsibilities include creating a comprehensive branding program which will include putting up a gateway sign reflecting the new image of the Westside. Events such as art tours can be held in the Westside. Events such as these will highlight local Westside businesses and generate a buzz for the new Westside. Additionally, the development coordinator will host events aimed at developers, leaders, and the media. These events will generate interest in mixed-use development on the Westside. The development coordinator will also advertise and market the new Westside in selected publications. City’s Role in Implementation. The City of Vernon Public Works Department is responsible for the implementation of this program. Source of Funding. General Fund. 2021-2029 Program Objectives. To identify a development coordinator who will prepare a marketing plan for the Westside Specific Plan. Agency Responsible for Implementation. The responsible agency is the Public Works Department. The responsible parties are the Development Coordinator and the Public Works Director. Implementation Schedule. The development coordinator will implement the marketing plan over the sixth cycle planning period. DRAFT Appendix E: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 46 Program 10: Civic Center Residential Development Detail. Through this program the City will put out a request for proposals (RFP) for the Petrelli/City Yard site for a residential or mixed-use development per Surplus Land Act guidelines. The City of Vernon desires to maximize the amount of housing provided on the site and will remove the underground well. The City desires a mid-rise residential development on the Petrelli/City Yard site consisting of approximately 10,000 square feet of commercial area and 325 residential units. The majority of these units will be market rate but at a minimum 25% of units will be affordable to residents earning 80 percent of the area median income or lower. To satisfy the City’s RHNA, a minimum of five (5) units will be affordable to very low income households. City’s Role in Implementation. The City of Vernon Public Works Department is responsible for the implementation of this program. Source of Funding. General Fund. 2021-2029 Program Objectives. To develop and release an RFP. Once proposals are received the Public Works Department will evaluate the proposals and respond. Agency Responsible for Implementation. The responsible agency is the Public Works Department. The responsible party is the Public Works Director. Implementation Schedule. The program will be implemented by the end of 2023. DRAFT Appendix E: Housing Programs Detail Housing Element 2021 – 2029 | City of Vernon - 47 Program 11: Medium-Density Residential Zoning Detail. A large amount of housing in the City of Vernon is situated on land not zoned for residential uses. This program includes adopting a zoning designation to make all existing housing conforming. The zoning designation may take the form of an overlay zone or a re-zone. In addition, the program will allow a few units to be built per property. In most cases, the new residential zoning capacity of the housing sites will be larger than the number of existing residential units on the sites. Source of Funding. General Fund. 2021-2029 Program Objectives. To adopt a new medium-density residential zoning designation in the zoning code and map. Agency Responsible for Implementation. The responsible agency is the Public Works Department. The responsible party is the Public Works Director. Implementation Schedule. The program will be implemented by the end of 2024. DRAFT Appendix E: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 48 Program 12: Accessory Dwelling Unit Ordinance. Detail. The City of Vernon will develop and adopt an ADU ordinance within the sixth cycle planning period. The ADU ordinance will be in conformance with State law and encourage accessory dwelling unit construction. The changes will be advertised on the City’s website and printed handouts will be prepared and provided at the Planning counter. Funding permitting, the City will also seek to encourage the creation of affordable ADUs through partnerships with entities that can make low-interest loans or other types of financial assistance. Source of Funding. General Fund (zoning implementation), and other eligible funding sources. 2021-2029 Program Objectives. To develop, adopt, and implement the ADU Ordinance in accordance with State Law. The City will also evaluate incentives for creating affordable ADUs. Agency Responsible for Implementation. The responsible agency is the Public Works Department. The responsible party is the Public Works Director. Implementation Schedule. The ADU Ordinance will be developed and adopted by the end of the sixth cycle planning period. DRAFT Appendix E: Housing Programs Detail Housing Element 2021 – 2029 | City of Vernon - 49 Program 13: Caretaker Housing Detail. Caretaker housing is generally occupied by the owner of an industrial property or their employee and serves the purposes of providing housing, security, and care to the industrial property during off hours. Many cities allow one or more caretaker housing units to be constructed and occupied on the sites of industrial establishments. These units often take the form of a second- story apartment unit or detached modular home. Businesses in Vernon have with regularity expressed interest in permitting caretaker housing units to be constructed on-site. Furthermore, code enforcement actions have revealed that several properties in Vernon provide housing illegally today, for example by parking inhabited RVs on the property. The City will adopt a code amendment to allow caretaker housing to be constructed on industrial properties in appropriate locations throughout the City, as long as such housing does not injure the health and welfare of residents or other industrial users. Source of Funding. General Fund. 2021-2029 Program Objectives. To adopt a zoning code amendment to permit up to three caretaker housing units to be constructed per industrial facility in appropriate locations. Agency Responsible for Implementation. The responsible agency is the Public Works Department. The responsible party is the Public Works Director. Implementation Schedule. The code amendment will be adopted by 2025. DRAFT Appendix E: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 50 Program 14: Housing Lottery Detail. Since the institution of the City’s good governance reforms in the early 2010’s, the City has used a lottery system to guide the lease-up of vacant City- owned residential units. The City conducts quarterly marketing of housing opportunities through its website, Craigslist, postings at City Hall, and a local newspaper. In addition, the Vernon Police Department and Fire Department advertise housing availability to its employees. Interested applicants file interest forms which are valid for one year. (The City currently has 54 interest forms on file.) When a housing unit opens up, the City asks for confirmation of interested parties’ interest, and conducts the lottery. There is a priority for First Responders; if less than four units are currently occupied by Vernon First Responders, any First Responder applicants will be ranked higher than other applicants. Source of Funding. General Fund. 2021-2029 Program Objectives. To continue to administer the housing lottery system in the selection of tenants for City-owned housing units. Agency Responsible for Implementation. The Vernon Housing Commission, in conjunction with the City Clerk’s office, are responsible for this program. The responsible party is the City Clerk. Implementation Schedule. Advertisement for Notices of Availability will be conducted quarterly, and lotteries held as vacancies arise, throughout the 6th Cycle. DRAFT Appendix E: Housing Programs Detail Housing Element 2021 – 2029 | City of Vernon - 51 Program 15: Housing Grant Application Working Group. Detail. The City desires to seek out grants that can expand revenue for important housing programs while providing more financial flexibility for General Fund revenues. As opportunities arise, the City will form a interdepartmental working group to identify unmet housing needs and focus on appropriate regional grant opportunities. Source of Funding. General Fund. 2021-2029 Program Objectives. To regularly monitor and seek grant funds to advance the City’s housing objectives. Agency Responsible for Implementation. The responsible agencies are the Public Works Department, City Administration, and the Finance Department. The responsible party is the Public Works Director. Implementation Schedule. The City will regularly monitor and seek grant funds to advance the City’s housing objectives over the sixth cycle planning period. DRAFT Appendix E: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 52 Program 16: Employee Workforce Housing Detail. The City of Vernon is a large job center; however, at this time very few Vernon workers are able to work and live in Vernon. Some Vernon workers are likely to live in Vernon if given the opportunity. Employers that can provide on- site and local affordable housing for its workers can reduce transportation costs, commute time, and improve quality of life while improving job retention rates. The City will cooperate with business owners that seek to develop employee housing in the City. This may include assisting in obtaining financing and identifying means for employee housing to be managed. Program eligibility, equity, and other issues would need to be explored to provide a template that sets the stage for a housing project that advances this concept. In the course of its regular business, for example, while extending business licenses and in meetings with business owners, the Public Works Department will inform local business owners of their ability to develop employee workforce housing for their employees. At the same time that the City encourages employee housing, it will also ensure that such housing does not constitute an overconcentration of residents employed by any one business in the electorate of the City. Source of Funding. General Fund. 2021-2029 Program Objectives. To cooperate with businesses who seek to establish employee workforce housing in the City. Agency Responsible for Implementation. The responsible agencies include the City of Vernon Public Works Department. The responsible parties is the Public Works Direct or. Implementation Schedule. The program will be implemented throughout the 6th Cycle. DRAFT Appendix E: Housing Programs Detail Housing Element 2021 – 2029 | City of Vernon - 53 Program 17: City-Owned Housing Disposition Study Detail. Prior to the City’s good governance reforms, tenancy in City-owned housing was managed in a questionable fashion. To provide long-term protection against any repetition of these practices, the City will consider divesting itself of its 26 housing units. The City will undertake a study to identify and evaluate options relating to the future management of City-owned housing. Options to be considered include: • Continuing to operate City-owned housing with the same processes as exist today to ensure transparency and fairness in the occupancy of housing units. • Selling properties, including the exploration of a first-time homebuyer down payment assistance program, and first right of offer provided to current tenants to enable them to build equity. As a variation, the City could sell interest in the structures, while retaining long-term control over the land. The study would also address questions of legal and financial constraints, and provide guidelines for the appropriate prices at which units could be disposed. Source of Funding. General Fund. 2021-2029 Program Objectives. To undertake a study to identify and evaluate options relating to the future of City-owned housing. Agency Responsible for Implementation. The responsible agency is the Public Works Department. The responsible party is the Public Works Director. Implementation Schedule. The disposition study will be undertaken by 2027. DRAFT Appendix E: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 54 DRAFT Housing Element 2021 – 2029 | City of Vernon - 55 Appendix F: Community Engagement Meeting Minutes The following pages present minutes from the following meetings that were held to provide input on the Housing Element and associated Westside Specific Plan: •Westside Specific Plan Stakeholders Advisory Committee Meeting #1: February 2, 2021 •Westside Specific Plan Stakeholders Advisory Committee Meeting #2: February 16, 2021 •Westside Specific Plan Stakeholders Advisory Committee Meeting #3: February 23, 2021 •Westside Specific Plan Stakeholders Advisory Committee Meeting #4: August 18, 2021 •Westside Specific Plan Stakeholders Advisory Committee Meeting #5: September 28, 2021 •Housing Commission Meeting: December 8, 2021 DRAFT Housing Element 2021 – 2029 | City of Vernon - 56 DRAFT Appendix G: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 57 Appendix G: Summary Of Recent Housing Legislation The 2021-2029 Housing Element reflects the evolving legislative priorities of the California Legislature and Senate. This included a number of housing- related bills in 2020 that addressed streamlining housing approvals, affordability issues, and responses to the COVID-19 pandemic of 2020-2021. COVID-19 Responses • Assembly Bill (“AB”) 3088 – COVID-19 Emergency Relief (Chiu) protected tenants from evictions between September 1, 2020 and January 31, 2021 due to COVID-19 related financial hardship provided the tenant pays at least 25% of the rent due to the landlord. Landlords can eventually recover all unpaid rent from the tenant in small claims court, but it can never be the basis for an eviction. On January 29, 2021, Governor Newsom extended the eviction moratorium through June 30, 2021. • AB 1561 – Housing Entitlement Extension (Garcia) extended the period for the expiration, effectuation or utilization of a housing entitlement that was in effect on March 4, 2020 and will expire before December 31, 2021 by 18 months. Housing entitlements include discretionary and ministerial approvals from a state or local agency, but exclude development agreements, a preliminary application under SB 330, and an application for a SB 35 permit. Density • AB 2345 – Density Bonus Law (Gonzalez and Chiu) allows local jurisdictions the authority to grant additional concessions and incentives above and beyond what is currently provided under state Density Bonus Law, including the increase of the maximum density bonus to up to 50% based on an updated sliding scale of housing affordability. The legislation also includes a uniform method to measure the distance between a major transit stop and a project location to maximize the number of eligible properties within a half-mile radius of a major transit stop. The bill also reduces maximum parking requirements for eligible projects and eliminates parking requirements for 100% affordable projects and senior housing projects that meet specified criteria. DRAFT Appendix G: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 58 Streamlining Housing Approvals • AB 1851 – Parking Lot of Religious Institutions (Wicks) prohibits a local jurisdiction from denying a housing development project proposed by a religious institution, or a developer working with a religious institution, solely on the basis that the project will reduce the total number of parking spaces available at the place of worship, provided that the total reduction does not exceed 50% of existing parking spaces. The bill authorizes a local jurisdiction to require up to one parking space per unit for a religious institution affiliated housing project. • AB 3182 – Right to Rent in HOAs / ADU Permits (Ting) prohibits a Home Owners Association from adopting or enforcing a provision that restricts the rental or lease of a house or condo, except that the HOA may restrict short-term rentals of 30 days or less. This legislation deems a permit application for the creation of an accessory dwelling unit or junior accessory dwelling unit approved if the local agency has not acted upon the completed application within 60 days. • AB 831 – Modifications and Clarifications to SB 35 (Grayson) amends SB 35, which allows some housing and mixed- use projects to qualify for a streamlined, ministerial CEQA- exempt approval process if the project meets the local government’s objective zoning and design review standards, provides a specific minimum number of affordable housing units, agrees to pay prevailing wages, and meets other qualifying criteria. It also helps ensure that cities do not use post-entitlement review processes to avoid the intent of SB 35’s ministerial approval process. • AB 168 – Tribal Resources (Aguiar-Curry) requires local governments to conduct a scoping consultation with Native American Tribes before processing a SB 35 application to determine if the proposed development could impact a potential tribal cultural resource. The bill makes a project ineligible for streamlining under SB 35 if the Native American Tribe does not agree that no potential tribal cultural resource would be affected by the proposed development. This bill took effect on September 25, 2020. • SB 1030 – Housing Omnibus (Wiener) provides minor technical fixes to existing housing legislations. It revised the definition of “deemed complete” under the Housing Accountability Act (SB 330) to include the submission of a completed application if the applicant has not submitted a preliminary application. This bill took effect on September 25, 2020. DRAFT Appendix G: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 59 • AB 3308 – Teachers Housing (Gabriel, Mullin, and Quirk- Silva) permits school districts to restrict occupancy on land owned by school districts to teachers and school district employees of the school district that owns the land. This includes permitting school districts and developers in receipt of tax credits designated for affordable rental housing to retain the right to prioritize and restrict occupancy on land owned by school districts to teachers and school district employees. Planning • AB 725 – Housing Element Location Designation Requirements (Wicks) imposes new requirements for city housing element updates that are required to be prepared under the already underway 6th Cycle of the Regional Housing Needs Assessment (“RHNA”) process. AB 725 requires that cities designate sites to meet at least 25% of a jurisdiction’s share of the regional housing need for moderate-income housing, and at least 25% of a jurisdiction’s share of the regional housing need for above moderate-income housing. For these sites, zoning that allows at least 4 units of housing, but not more than 100 units per acre of housing, is required. This bill will take effect on January 1, 2022. CEQA • SB 288 – New CEQA Exemption for Sustainable Transportation Projects (Weiner) creates a new CEQA exemption for certain classes of qualifying transit-related projects until January 1, 2023. To qualify, the project must be carried out by a public agency, be located in an urbanized area and within an existing public right- of-way, not require demolition of affordable housing units, be completed by skilled and trained workforces, and not entail adding physical infrastructure that would increase new automobile capacity. Tenant & Homeowner Rights • AB 2463 – Ban on Forced Sale of Home Due to Consumer Debt (Wicks) prohibits a sale under execution of a judgement lien of a judgment debtor’s principal place of residence based on a consumer debt unless that debt was secured by that principal place of residence at the time it was incurred. DRAFT Appendix G: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 60 • AB 2782 – Mobile Home Rent Control (Stone) allows rent control on mobile home leases that are more than 1 year long. This legislation will take effect on January 1, 2025. • SB 1079 – Foreclosure Sales (Skinner) requires a seller to receive offers from tenants and potential owner-occupiers in a foreclosure sale. The legislation prohibits the bundling of properties during an auction. This legislation will be operational between January 1, 2021 and January 1, 2026. • SB 1157 – Optional Credit Reporting for Tenants (Bradford) allows tenants in certain buildings who want to build a credit history to request that their landlord report their rent payments to a credit agency. This legislation will be operational between July 1, 2021 and July 1, 2025. • SB 1190 – Right to End Lease Early for Victims of Violent Crime (Durazo and Rubio) authorizes a tenant to terminate their tenancy without penalty because an immediate family member, as defined, was the victim of a crime, and would expand the list of eligible crimes to include, among others, a crime that caused bodily injury or death. The legislation authorizes a tenant to attach to the notice any form of documentation that reasonably verifies that the qualifying crime or act occurred. Some of these 2020 legislation priorities created deficiencies in the City’s 5th Cycle Housing Element and/or Zoning Ordinance that required follow-up through this update of the Housing Element. Table G-1 summarizes some of those deficiencies. Summary of Pending Housing Legislation (as Spring 2021) Since the adoption of the 2014-2021 Housing Element, substantial legislation in Sacramento has been added. Most of these housing laws addressed topics like permit streamlining, tenant rights, and homeowner rights that are not addressed by the broad programs called for the by the City. However, some of these developments will necessitate updates to applicable policies in the upcoming Housing Element update. The following table identifies major pending State housing legislation as of Spring 2021 since the 5th Cycle Housing Element was adopted. As of Spring 2021, the 2021-2022 California legislative session began with a focus on the housing crisis with a “Building Opportunities for All” housing package. This includes a number of bills that builds upon the housing production bills from the 2020-2021 legislative session that failed to pass out of committee or gain concurrence votes before the session ended. The Building DRAFT Appendix G: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 61 Opportunities for All housing package includes the following Senate Bills (“SB”): • SB 5 (Atkins, Caballero, McGuire, Rubio, Skinner and Wiener) establishes the broad, initial framework for a statewide housing bond that would fund the creation of new affordable housing for houseless and low-income families. Further details will be crafted as the legislative session progresses. • SB 6 (Caballero, Eggman and Rubio) allows specified housing development projects in office or retail commercial zones. In authorizing the conversion of underutilized strip malls or “big box” stores to residential spaces, SB 6 requires the residential units be built at a minimum density to accommodate affordable housing. This is similar to last session’s SB 1385, which was also introduced by Senator Anna Caballero. • SB 8 (Skinner) is a placeholder for a density bonus bill. • SB 7 (Atkins) renews the effort to extend the streamlined CEQA judicial review process developed for Environmental Leadership Development Projects under the 2011 Jobs and Economic Improvement Through Environmental Leadership Act (AB 900). SB 7 would extend the 2021 “sunset” of AB 900 through 2024. Pro Tem Toni Atkins also introduced last session’s version of this bill, SB 995. • SB 9 (Atkins, Caballero, Rubio and Wiener) allows duplexes and lot-splits in single-family residential zones by-right, if the proposed development meets certain requirements. This is a reintroduction of last session’s SB 1120. It retains the arbitrary and impractical requirement that, for a subdivision map to qualify for ministerial approval, the two new parcels that replace the existing single parcel must be of equal size. • SB 10 (Wiener) grants local governments the ability to rezone parcels close to job centers, transit and existing urbanized areas to allow up to 10 residential units without undergoing CEQA review. Last year’s version of this bill was SB 902, also introduced by Senator Scott Wiener. In addition to the Building Opportunities for All housing package, there are other proposed Senate bills aimed at housing reform. • SB 15 (Portantino) establishes a grant program to incentivize local governments to rezone idle retail sites for the development of workforce housing. DRAFT Appendix G: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 62 • SB 290 (Skinner) revises the Density Bonus Law to create more low-income student housing and for-sale housing for moderate- income residents. The bill includes identical language from SB 1085, which failed in 2020 when the Legislature ran out of time for a concurrence vote. • SB 12 (McGuire) establishes new requirements for addressing wildfire risks in general plan safety, housing, and land use elements. Of note, the bill directs the Department of Housing and Community Development to take into consideration how much land within a jurisdiction is considered a “very high fire risk area” when determining the RHNA allocation. SB 12 also requires land use elements to identify very high fire risk areas and prohibits local governments from entering into development agreements, approving specified discretionary permits, or approving subdivision maps for projects within a very high fire risk area, unless specified findings based on substantial evidence in the record are made. • SB 55 (Stern and Allen) prohibits new development in very high fire severity zones or state responsibility areas. • AB 71 (Rivas and Chiu) would dedicate $2.4 billion annually to houselessness solutions. Revenue sources include state adoption of the federal Global Intangible Low-Taxed Income, which taxes certain intellectual property generated overseas. The bill would create the Bring California Home Fund in the State Treasury. • AB 49 (Petrie-Norris) would eliminate the California Debt Limit Allocation Committee — which, among other projects, finances affordable housing. The bill would move the committee’s duties and authority to the California Tax Credit Allocation Committee, also in the State Treasurer’s Office. • AB 68 (Salas) would implement recommendations from the recent auditor’s report on the performance of the state’s housing agencies and local impediments to housing production. The report found that the state’s four key financing agencies lack coordination and alignment and that “State law and oversight are not strong enough to ensure that cities and counties are doing their part to facilitate the construction of affordable housing.” • SB 478 (Wiener), also known as the Housing Opportunity Act, would change land use restrictions such as FAR and lot size requirements. This is an effort to ensure that small scale development can be developed where they are legal based on zoned density, and most importantly that FAR and lot size requirements would not be able to stop these developments. SB 478 proposes two specific statewide policy changes: establishing DRAFT Appendix G: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 63 a minimum floor area ratio (FAR) that cities could impose on all land zoned for two to ten residential units, and establishing minimum lot sizes for parcels that are 2-4 units and for parcels that are 5-10 units. • AB 1199 (Gipson) would create a database of rental properties, levy a tax on the rental profits of some people or entities holding many properties, and use the funds to support services for tenants and small landlords. • SCA 2 (Allen, Wiener) would repeal Article 34 of the California constitution which requires a vote on public housing projects. • SB 477 (Wiener) will require local governments to keep track of data needed to evaluate the impact of state laws on local housing availability and affordability. • AB 59 (Gabriel) will increase the noticing period for new or increased development impact fees and extends time that a new or increased fee may be challenged. • AB 115 (Bloom) requires all jurisdictions to allow for residential development in commercially zoned areas provided that the development reserves 20% of the units for affordable housing. • AB 215 (Chiu) is an intent bill to strengthen HCD’s housing law enforcement authority. • AB 244 (Rubio) requires TCAC, CDLAC, and the California Housing Finance Agency to conduct an affordable housing cost study across all state funded housing projects. • AB 345 (Quirk Silva, Medina) clarifies rules around the selling of ADUs built by nonprofit organizations for low income homeownership. Would allow ADUs built by nonprofits, like Habitat for Humanity, to be sold separate from the primary residence. • AB 348 (Villapudua, Carillo, Mathis, Patterson, Salas, Jones) requires HCD to conduct an annual summary report that discloses the amount of state, federal, and private funding spent on affordable housing development throughout the state. • AB 387 (Lee, Wicks) Establishes the California Housing Authority to develop affordable and mixed-income housing. • AB 561 (Ting, Bloom, Hertzberg, Boerner Horvath, Quirk-Silva) Requires the Office of the Treasurer to work with CalHFA and HCD to create an Accessory Dwelling Unit financing product to assist homeowners in the creation of ADUs. DRAFT Appendix G: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 64 • AB 571 (Mayes) prohibits affordable housing or inclusionary zoning fees on the bonus units of a project using the state density bonus. • AB 602 (Grayson) is a spot bill on residential development impact fees. • AB 617 (Davies) allows jurisdictions the option of paying other jurisdictions to transfer all or a portion of their Regional Housing Needs Assessment allocation. • AB 672 (Garcia) is an intent bill to enable to use of underutilized golf courses for affordable housing. • AB 678 (Grayson) is a spot bill on residential development impact fees. • AB 682 (Bloom) requires cities to allow cohousing projects in areas zoned for multi-family residential. • AB 816 (Chiu, Bloom, Bonta, Quirk-Silva, Santiago, Wicks) requires the creation of a statewide plan for addressing houselessness and allows for legal action against jurisdictions who do not make progress towards meeting the plan’s goals. • AB 834 (Choi) creates a tax credit for property owners renting to tenants receiving housing assistance. • AB 880 (Aguiar-Curry) establishes the Affordable Disaster Housing Revolving Development and Acquisition Program within HCD to fund the creation and preservation of affordable housing in disaster areas. • AB 916 (Salas) prohibits public hearings for proposed room additions for single family homes and expands allowable ADU height to 20 feet. • AB 919 (Grayson) reduces the statute of limitations for construction defects from 10 to 5 years for projects that use a skilled and trained workforce. • AB 946 (Lee) eliminates mortgage interest deduction on second homes and transfers resulting revenues to the Home Purchase Assistance Fund. • AB 950 (Ward) authorizes the Department of Transportation to sell excess land to jurisdictions for the purpose of creating affordable housing. • AB 978 (Quirk-Silva, Chiu, Garcia, Luz Rivas, Robert Rivas) extends rent cap and just cause eviction protections established in the Tenant Protection Act of 2019 to mobile home residents. DRAFT Appendix G: Summary of Recent Housing Legislation Housing Element 2021 – 2029 | City of Vernon - 65 • AB 1029 (Mullin, Caballero, Becker) adds housing preservation policies to HCD’s list of local prohousing policies. • AB 1068 (Santiago) requires HCD to create a model plan for the use of alternative forms of housing, including modular housing, for the purpose of cost reduction. • AB 1090 (Quirk-Silva, Caballero, Gabriel, Rivas, Salas, Wicks, Eggman) establishes the Legislative Task Force on the California Master Plan on Homeownership which will submit a report to the legislature in October 2022. • AB 1143 (Berman) and SB 649 (Cortese) allow jurisdictions to create local preference policies for affordable housing developments to local residents at risk of displacement. • AB 1188 (Wicks, Kalra, Wiener) requires cities to create and maintain a rental registry by 2021 covering all landlords who own or operate five or more units. • AB 1277 (Rubio) creates an expedited judicial review process for CEQA for student housing project. • AB 1372 (Muratsuchi) requires every jurisdiction to provide access to temporary shelter to every houseless individual. • AB 1377 (McCarty) creates the California Student Housing Revolving Loan Fund to provide loans for the purpose of constructing affordable student housing. • AB 1401 (Friedman, Lee, Skinner, Wiener) prohibits parking minimums for residential or commercial projects near transit or within low vehicle miles traveled areas. • SB 490 (Caballero, Skinner, Garcia) establishes the Housing Acquisition and Rehabilitation Technical Assistance Program to provide technical assistance. DRAFT Vernon Housing Commission Agenda Item Report Submitted by: Jazmine Hooks Submitting Department: Public Works Meeting Date: December 8, 2021 SUBJECT City of Vernon Housing Unit Rental Rates Recommendation: In light of the unforeseen impacts of the COVID-19 pandemic, and the 4% increase in the Consumer Price Index for all urban consumers this year, staff requests guidance from the Vernon Housing Commission on whether to: a) Increase rental rates for City-owned residential units by 3% for calendar year 2022 in accordance with Resolution No. VHC-8, or b) Waive rental rate increases for calendar year 2022. Background: At its December 12, 2018 meeting, the Vernon Housing Commission adopted Resolution No. VHC-8 establishing a method for determining rents for City-owned residential units (Attachment 1). Rates for Vacant Units: As noted in the agenda item report from the December 12, 2018 VHC meeting (Attachment 2), the Small Area Fair Market Rents (SAFMRs) established by the United States Department of Housing and Urban Development (HUD) based on Zip Code is used to determine the initial rent to be charged on vacant units (Attachment 3). Current rental rates for vacant units are: 1 bedroom - $1,250 2 bedroom - $1,620 3 bedroom - $2,170 If rental rates are increased for new tenancies based on changes to the SAFMR, the new rates for vacant units would be as follows: 1 bedroom - $1,370 2 bedroom - $1,770 3 bedroom - $2,360 Rates for Occupied Units: For month-to-month rents, rental rate increases are informed by the annual percentage change in the Consumer Price Index 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 (Attachment 4). The CPI-U for the twelve month period ending August 2021 is four percent (4%). As such, a rental rate increase based on this method would be 4%. However, Resolution No. VHC-8 limits rental rate increases to three percent (3%). If rental rates are adjusted, the City is expected to receive approximately $766 in additional rent revenue. Staff hereby requests that the VHC provide direction on any rental rate adjustments for calendar year 2022 for City-owned residential units. Fiscal Impact: There is no fiscal impact associated with this report. Attachments: 1. Resolution No. VHC-8 2. VHC Agenda Item Report on Establishment of Rental Rates 3. HUD FMR Rates FY 2021 4. Consumer Price Index October 2021 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. Background: 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 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 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 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 -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”. / / / / / / / / / / / / / / / -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 -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) 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 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 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 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. 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. 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. 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. 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. 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. 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 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 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 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 18017000, RCS Vernon Properties 14 Addendum 18017000, RCS Vernon Properties 15 Certification 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 18017000, RCS Vernon Properties 17 Assumptions and Limiting Conditions 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. 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. 18017000, RCS Vernon Properties 20 Qualifications 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. 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) 18017000, RCS Vernon Properties 23 Subject Photographs 18017000, RCS Vernon Properties 24 4321 Furlong Place, Vernon 18017000, RCS Vernon Properties 25 4325 Furlong Place, Vernon 18017000, RCS Vernon Properties 26 Furlong Place, Vernon, street scene 18017000, RCS Vernon Properties 27 Rental Photographs 18017000, RCS Vernon Properties 28 2506 Cole Pl, Huntington Park 114 E. 85th St, Los Angeles 18017000, RCS Vernon Properties 29 7819 Glengarry Ave, Whittier 10251 Virginia Ave, South Gate 18017000, RCS Vernon Properties 30 1226 S. La Verne Ave, Los Angeles 2434 E. 124th St, Compton 18017000, RCS Vernon Properties 31 11109 California Ave, Lynwood 641 S. Duncan Ave, Los Angeles 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 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 ALL HOUSING UNITS OWNED BY THE CITY OF VERNON The Vernon Housing Commission will conduct a Public Hearing,which you may attend. PLACE:Vernon City Hall City Council Chambers 4305 Santa Fe Avenue 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 rental rates. DOCUMENTS Notice is hereby given that a hard copy of the proposed resolution will be available for public review during normal business hours in the City Clerk Department, FOR REVIEW:located at 4305 Santa Fe Avenue, Vernon,California between the hours of 7:00 a.m. and 5:30 p.m.Monday through Thursday. Please send your comments or questions to: Daniel Wall,Director of Public Works City of Vernon 4305 Santa Fe Avenue,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 rental rates. If you challenge the adoption of a resolution establishing rental rates, 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 correspondence delivered 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- 8811 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:10/23/2018 /s/Maria E.Ayala,City Clerk 11/1/18 PRE-3188068# HUNTINGTON PARK BULLETIN 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 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 Vernon Housing Commission Agenda Item Report Submitted by: Jazmine Hooks Submitting Department: Public Works Meeting Date: December 8, 2021 SUBJECT Permanent Local Housing Allocation Application to the Department of Housing and Community Development Recommendation: Recommend the City Council approve and authorize the submittal of a Permanent Local Housing Allocation (PHLA) Program application to the California Department of Housing and Community Development. Background: On May 3, 2021, the Department of Housing and Community Development (HCD) released the Permanent Local Housing Allocation (PLHA) Program Entitlement and Non-Entitlement Formula Component Notice of Funding Availability (NOFA). Under this formula, the City of Vernon’s funding allocation (FA) is $392,000 of the total $304 million available to local jurisdictions (Applicants). The PLHA program was established to assist local governments fund housing-related projects and programs to address the unmet housing needs in their communities. The application is due December 31, 2021. In consideration of the duty of the Vernon Housing Commission (VHC) to advise the City Council on all matters relevant to the Housing Element of the City, staff is presenting the PLHA program application to the VHC at its regular meeting on December 8, 2021, and requests that the VHC recommend that City Council approve and authorize its submittal to the HCD. Eligible Activities HCD has identified a wide range of activities eligible under this program and requests that the applicant provide a plan (Plan) outlining their intended eligible activities. 1. Predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing; 2. Predevelopment, development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, which includes accessory dwelling units (ADUs); 3. Matching funds to be placed local or regional housing trust funds; 4. Matching funds for the Housing Asset Fund; 5. Capitalized reserves for services connected to the preservation and creation of new permanent supportive housing;\ 6. Assisting person who are experiencing or at risk of homelessness via Rapid Rehousing, rental assistance, street outreach, and supportive services; 7. Accessibility modifications for lower-income owner-occupied housing; 8. Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments; 9. Homeownership opportunities (I.e. down payment assistance); and 10. Fiscal incentives in the form of a grant or low-interest loan. If awarded, the City plans to use this funding towards homeownership opportunities including, but not limited to, a down payment assistance program. Threshold Requirements HCD communicated that this is a low-barrier funding opportunity. As such, Applicants will generally receive their funding allocations so as long as they submit a complete application that meets threshold requirements. Applicants must have submitted their updated Housing Element by the application deadline and have subsequently determined to follow state Housing Element law. Applicants must also submit to HCD the Annual Progress Report (APR). The completed application must include authorization from the governing body (via Resolution) to submit an application. In addition to the Plan detailing how allocated funds will be used for eligible activities, a description of the methods by which the applicant will prioritize investments that will increase housing stock for households with an income at or below 60% area median income (AMI) is also required. The Plan should also demonstrate consistency with the applicant’s Housing Element. The Plan shall be in effect for five (5) years. Plan years are based on the year during which the funds were accrued by the state (2019-2023). After Applicants have been awarded their first year FA, they must demonstrate all threshold requirements continue to be met in subsequent years. HCD approval will be required for any amendments during the term. The City of Vernon has a funding allocation under this grant and can adequately demonstrate its ability to undergo projects that are considered eligible activities. If awarded, the City plans to use this funding towards homeownership opportunities that are aligned with the City's Housing Element update. Next steps include deliberating with necessary stakeholders to design a program to provide homeownership opportunities. City Council approval and adoption of a resolution authorizing the submission of a PLHA application will enable the Director of Public Works to apply for PLHA funding and, if awarded, will allow the Director to enter into, execute, and deliver a Standard Agreement with the State of California and any and all other documents required to evidence and secure PLHA Program funds. As required by PLHA Program Final Guidelines Section 302(4)(D), the City Council is scheduled to conduct a public hearing on December 15, 2021. Fiscal Impact: There is no fiscal impact associated with this report. Attachments: 1. Appendix C of PLHA NOFA 2. PLHA Plan 3. PLHA Program Application Department of Housing and Community Development Permanent Local Housing Allocation 2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA Appendix C Estimate of Five-Year PLHA Allocation for Entitlement and Non-Entitlement Local government Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year Funding Amount Local government Estimate 5-Year Funding Amount Alameda $3,352,590 Alpine County $408,390 Alhambra $2,793,768 Alturas $475,835 Aliso Viejo $715,062 Amador City $395,168 Anaheim $12,931,710 Amador County $805,115 Antioch $2,365,410 American Canyon $704,612 Apple Valley $1,725,366 Anderson $622,622 Bakersfield $10,385,412 Angels $487,737 Baldwin Park $2,929,068 Arcata $1,056,372 Bellflower $3,081,744 Artesia $814,372 Berkeley $7,761,504 Arvin $831,563 Buena Park $2,215,452 Atwater $949,257 Burbank $2,863,092 Auburn $719,158 Camarillo $812,124 Avenal $627,912 Carlsbad $1,635,492 Benicia $848,754 Carson $2,488,380 Biggs $424,261 Cathedral City $1,699,338 Bishop $502,283 Cerritos $655,278 Blue Lake $409,715 Chico $2,342,088 Brawley $906,940 Chino $1,496,190 Butte County $2,000,572 Chino Hills $1,063,710 Calaveras County $1,238,865 Chula Vista $6,356,898 Calexico $1,222,996 Citrus Heights $1,876,554 Calimesa $532,699 Clovis City $2,193,654 Calipatria $462,611 Compton $4,618,320 Calistoga $511,540 Concord $2,932,710 Capitola $630,557 Corona $3,492,018 Carmel-by-the-Sea $491,704 Costa Mesa $3,171,486 Chowchilla $662,295 Cupertino City $993,060 Clearlake $875,203 Daly City $3,070,926 Coalinga $618,655 Davis $1,817,544 Colfax $432,196 Delano City $1,950,744 Colusa $515,507 Downey $3,121,674 Colusa County $500,961 El Cajon $3,872,292 Corcoran $683,453 El Centro $1,475,988 Corning $555,180 Elk Grove $2,638,722 Crescent City $485,092 El Monte $5,083,752 Del Norte County $844,787 21 Department of Housing and Community Development Permanent Local Housing Allocation 2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year Funding Amount Local government Estimate 5-Year Funding Amount Encinitas $936,264 Dinuba $889,749 Escondido $5,057,466 Dixon $692,710 Fairfield $2,345,460 Dorris $399,135 Fontana $5,886,732 Dos Palos $496,994 Fountain Valley $867,648 Dunsmuir $432,196 Fremont $3,846,960 El Centro $1,297,051 Fresno $20,445,618 El Dorado County $2,879,974 Fullerton $4,130,712 Etna $403,103 Gardena $1,979,262 Eureka $1,125,138 Garden Grove $5,966,058 Exeter $586,917 Gilroy City $1,465,554 Farmersville $589,562 Glendale $5,202,150 Ferndale $426,906 Glendora City $781,548 Firebaugh $572,371 Goleta $564,090 Fort Bragg $641,136 Hanford $1,772,808 Fort Jones $415,004 Hawthorne $3,676,914 Fortuna $651,715 Hayward $3,910,410 Fowler $486,414 Hemet $2,415,216 Glenn County $641,136 Hesperia $3,034,662 Grass Valley $813,049 Huntington Beach $3,290,970 Greenfield $839,497 Huntington Park $3,910,068 Gridley $555,180 Indio City $2,735,772 Grover Beach $727,093 Inglewood $4,414,656 Guadalupe $606,754 Irvine $4,547,862 Gustine $441,452 Laguna Niguel $920,484 Hidden Hills $428,228 La Habra $2,333,202 Hollister $1,081,498 Lake Forest $1,326,420 Holtville $495,671 Lake Elsinore $1,491,162 Humboldt County $2,066,693 Lakewood $1,625,082 Huron $597,497 La Mesa $1,132,854 Imperial $548,568 Lancaster $4,169,130 Imperial County $1,043,148 Livermore $1,251,240 Indian Wells $532,699 Lodi $2,017,590 Industry $393,581 Lompoc $1,362,162 Inyo County $622,622 Long Beach $17,560,704 Ione $452,032 Los Angeles $157,317,438 Jackson $524,764 Lynwood $3,788,322 King City $805,115 Madera $2,533,914 Kings County $980,995 Menifee $1,509,624 Lake County $1,450,450 Merced $3,112,314 Lakeport $475,835 Milpitas City $1,431,570 Lassen County $612,043 Mission Viejo $1,240,098 Lemoore $871,235 22 Department of Housing and Community Development Permanent Local Housing Allocation 2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year Funding Amount Local government Estimate 5-Year Funding Amount Modesto $5,818,482 Lincoln $1,219,029 Montebello $1,900,548 Lindsay $703,289 Monterey $698,514 Live Oak $537,988 Monterey Park $1,913,226 Livingston $653,038 Moreno Valley $6,178,854 Loomis $490,382 Mountain View $1,539,306 Los Banos $1,129,105 Napa City $1,909,260 Loyalton $405,747 National City $2,359,146 Madera County $1,643,522 Newport Beach $1,017,678 Mammoth Lakes $490,382 Norwalk $3,556,572 Maricopa $400,458 Oakland $22,226,850 Marina $945,290 Oceanside $3,894,906 Mariposa County $770,732 Ontario $5,520,108 Marysville $662,295 Orange $3,644,898 McFarland $676,841 Oxnard $6,950,574 Mendocino County $2,099,753 Palmdale $4,674,384 Merced County $1,865,687 Palm Desert $1,027,836 Modoc County $458,644 Palm Springs $1,153,422 Mono County $462,611 Palo Alto $1,388,976 Montague $412,359 Paradise $561,576 Mount Shasta $539,311 Paramount City $2,629,182 Napa County $859,334 Pasadena $5,616,456 Nevada City $473,190 Perris City $2,799,192 Nevada County $1,837,916 Petaluma $1,106,142 Orange Cove $608,076 Pico Rivera $2,033,838 Orland $555,180 Pittsburg $1,906,098 Oroville $822,306 Placentia $1,288,644 Pacific Grove $712,546 Pleasanton City $906,534 Palos Verdes Estates $580,305 Pomona $6,410,670 Parlier $801,148 Porterville $2,056,524 Pismo Beach $597,497 Rancho Cordova City $1,712,196 Placer County $2,730,542 Rancho Cucamonga $2,702,856 Placerville $664,940 Rancho Santa Margarita $608,376 Plumas County $727,093 Redding $2,020,884 Plymouth $404,425 Redondo Beach $784,980 Point Arena $404,425 Redwood City $2,086,314 Portola $452,032 Rialto $3,586,716 Rancho Mirage $1,032,569 Riverside $9,732,750 Red Bluff $744,284 Rocklin City $807,828 Rio Dell $474,513 Rosemead $2,059,428 Rio Vista $577,661 Roseville $1,880,196 Riverbank $732,382 Sacramento $14,142,402 San Benito County $727,093 23 Department of Housing and Community Development Permanent Local Housing Allocation 2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year Funding Amount Local government Estimate 5-Year Funding Amount Salinas $6,041,082 San Joaquin $471,868 San Bernardino $9,732,162 San Juan Bautista $455,999 San Clemente $1,134,240 San Juan Capistrano $1,418,712 San Diego $34,741,098 Sand City $402,838 San Francisco $52,308,210 Santa Cruz County $3,395,713 San Jose $26,091,876 Scotts Valley $622,622 San Leandro $2,099,760 Shasta County $1,721,544 San Marcos City $1,915,068 Shasta Lake $613,366 San Mateo $2,051,364 Sierra County $405,747 Santa Ana $16,822,236 Siskiyou County $852,722 Santa Barbara $2,718,654 Solano County $769,410 Santa Clara $2,876,946 Soledad $725,770 Santa Clarita $3,529,554 Sonora $548,568 Santa Cruz $1,588,464 South Lake Tahoe $994,219 Santa Maria $4,400,826 St. Helena $534,021 Santa Monica $3,285,096 Suisun City $928,099 Santa Rosa $4,165,950 Susanville $559,147 Santee $806,244 Sutter County $698,000 Seaside $1,158,744 Sutter Creek $471,868 Simi Valley $1,742,142 Taft $543,278 South Gate $4,327,920 Tehama $393,581 South San Francisco $1,307,880 Tehama County $1,120,113 Stockton $10,268,580 Trinidad $396,491 Sunnyvale $3,198,138 Trinity County $729,738 Temecula $1,640,358 Truckee $627,912 Thousand Oaks $1,776,240 Tulare County $3,501,506 Torrance $2,666,244 Tulelake $411,037 Tulare $1,910,598 Tuolumne County $1,453,095 Turlock $1,859,124 Ukiah $778,667 Tustin $2,313,270 Vernon $392,259 Union City $1,523,610 Wasco $813,049 Upland $1,667,022 Weed $459,966 Vacaville $1,443,000 Westmorland $436,163 Vallejo $3,032,214 Wheatland $432,196 San Buenaventura $2,144,634 Williams $485,092 Victorville $3,796,620 Willits $553,857 Visalia $3,784,890 Willows $561,792 Vista $2,453,292 Winters $532,699 Walnut Creek $830,694 Woodlake $539,311 Watsonville $2,175,090 Yolo County $819,661 West Covina $2,332,578 Yountville $486,414 Westminster $3,063,462 Yreka $612,043 24 Department of Housing and Community Development Permanent Local Housing Allocation 2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year Funding Amount Local government Estimate 5-Year Funding Amount West Sacramento $1,420,074 Yuba County $1,634,265 Whittier $2,299,140 Woodland $1,493,934 Yorba Linda $639,174 Yuba City $1,866,840 Alameda County $5,603,190 Contra Costa County $13,021,068 Fresno County $9,860,088 Kern County $12,962,064 Los Angeles County $66,150,756 Marin County $4,353,426 Monterey County $3,890,280 Orange County $7,632,984 Riverside County $23,977,026 Sacramento County $16,324,956 San Bernardino County $20,754,846 San Diego County $11,879,796 San Joaquin County $7,861,158 San Luis Obispo County $5,235,012 San Mateo County $7,257,300 Santa Barbara County $3,418,722 Santa Clara County $4,420,398 Sonoma County $5,396,358 Stanislaus County $6,929,892 Ventura County $5,158,494 25 PERMANENT LOCAL HOUSING ALLOCATION PROGRAM PLAN §302(c)(4) Plan Rev. 5/14/21 §302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities. With this funding, the City of Vernon plans to implement afirst-time homebuyers' downpayment assistance program. Staff will develop eligibility criteria, which will include income and credit threshold requirements. Funds secured through this grant will be disbursed to qualifying individuals that are first-time homebuyers who meet eligibility critieria. With this funding, the City will provide and require that applicants undergo afirst-time homebuyer educational program to learn the details of the homebuying process, including but not limitied to real estate and mortgage terminology, financial readiness, and fair housing policy. §302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income (AMI). The City of Vernon will develp a comprehensive application for its down payment assistance program. The application will apply additional weight to applications for households with incomes at or below 60 percent of Area Median Income to increase housing supply for this demograpic. Additionally, the City will continue to seek out additional financial resources that can be leveraged with this funding to assist households within this demographic. §302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government's Housing Element. The City of Vernon owns much of the housing within the City. Program 18 of the City's draft Housing Element calls for aCity-owned Housing Disposition Study. Afirst-time homebuyers' down payment assistance program would be an important component in the dispostion of city-owned housing. The Housing Element contemplates diversified home ownership, and afirst-time homebuyers' down payment assistance program would help ensure that ownership opportunites are available to a broad cross section of the population in the region. Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301)) §301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-,very low-, low-, or moderate- income households, including necessary Operating subsidies. §301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high -cost areas. ADUs shall be available for occupancy for a term of no less than 30 days. §301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds. §301(a)(4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176. §301(a)(5) Capitalized Reserves for Services connected to the preservation and creation of new permanent supportive housing. §301(a)(6) Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. §301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing. §301 a 8 Efforts to ac uire and rehabilitate foreclosed or vacant homes and a artments. §301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance. PLHA Page 1 302(c)(4) Plan PERMANENT LOCAL HOUSING ALLOCATION PROGRAM PLAN §301(a)(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested by a county in an affordable housing development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The county fiscal incentives shall be in the form of a grant or low-interest loan to an affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan to the affordable housing Project. PLHA Page 2 302(c)(4) Plan Vernon Housing Commission Agenda Item Report Submitted by: Daniel Wall Submitting Department: Public Works Meeting Date: December 8, 2021 SUBJECT City-Owned Housing Vacancies and Future Housing Lotteries Recommendation: Discuss current vacancies in City-owned housing stock and provide direction to staff to proceed with housing lotteries. Background: Typically, and pursuant to the VHC Lease-up Procedures, in order to fill available vacancies in City-owned housing, lotteries are conducted to establish a priority list for individuals that have submitted either a Unit Transfer Request Form or a Housing Expression of Interest Form for vacant City-owned housing. At the September 8, 2021 VHC meeting, the Commission received a presentation on the Housing Element Update process. At the same meeting, staff announced a temporary pause on leases and lotteries due to several considerations surrounding the City’s Housing Element Update. With a draft of the Housing Element now complete, staff is requesting direction from the Commission to resume housing lotteries to fill existing vacancies. Currently, the following three city-owned units are vacant: 4324 Furlong Place, 3361 Fruitland Avenue and 3382 50th Street. Fiscal Impact: There is no fiscal impact associated with this report. Attachments: None.