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20231206 Special Vernon Housing Commission Agenda Packet Special Housing Commission Meeting Agenda December 6, 2023 Page 1 of 2 Agenda City of Vernon Special Vernon Housing Commission Meeting Wednesday, December 6, 2023, 6:00 PM City Hall, Council Chamber 4305 Santa Fe Avenue, Vernon, California Juliet Goff, Chair Jorge Nevarez, Jr., Vice Chair Ronit Edry, Commissioner Steven Froberg, Commissioner Leticia Lopez, Commissioner Bertha Padilla, Commissioner Marlene Ybarra, Commissioner The public is encouraged to view the agenda and meeting at CityofVernon.org/publicmeetings. You may address the Commission in the Council Chambers, via mail or email to PublicComment@cityofvernon.org, include the meeting date and item number in the subject line (mail and/or email must be received at least two hours prior to the start of the meeting). CALL TO ORDER FLAG SALUTE ROLL CALL APPROVAL OF AGENDA PUBLIC COMMENT Members of the public interested in addressing the Commission during this Special meeting may address any item which has been described in the notice of this Special Meeting in accordance with Government Code Section 54954.3(a). PRESENTATIONS 1. Quarterly City Housing Report Recommendation: Receive and file the 2023 Fourth Quarter City Housing Report. Special Housing Commission Meeting Agenda December 6, 2023 Page 2 of 2 NEW BUSINESS 2. City-Owned Residential Housing Unit Rental Rates Recommendation: Direct staff on whether to increase rental rates for City-owned residential units for calendar year 2024 by: a) 3% in accordance with Resolution No. VHC-8; b) 1% due to current economic conditions; or c) by any other amount under 3% as deemed appropriate by the Commission. ORAL REPORTS 3. Brief Reports, Announcements, or Directives to Staff ADJOURNMENT On November 30, 2023, the foregoing agenda was posted in accordance with the applicable legal requirements. Regular and Adjourned Regular meeting agendas may be amended up to 72 hours and Special meeting agendas may be amended up to 24 hours in advance of the meeting. Vernon Housing Commission Agenda Report Meeting Date:December 6, 2023 From:Daniel S. Wall, P.E., Director of Public Works Department:Public Works Submitted by:Daniel S. Wall, P.E., Director of Public Works Subject Quarterly City Housing Report Recommendation Receive and file the 2023 Fourth Quarter City Housing Report. Background Staff will present the Quarterly City Housing Report, for the period from September 2023 through November 2023. 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 this report. Attachments None. Vernon Housing Commission Agenda Report Meeting Date:December 6, 2023 From:Daniel S. Wall, P.E., Director of Public Works Department:City Clerk Submitted by:Daniel S. Wall, P.E., Director of Public Works Subject City-Owned Residential Housing Unit Rental Rates Recommendation Direct staff on whether to increase rental rates for City-owned residential units for calendar year 2024 by: a) 3% in accordance with Resolution No. VHC-8; b) 1% due to current economic conditions; or c) by any other amount under 3% as deemed appropriate by the Commission. Background Vernon Housing Commission Resolution No. VHC-08 (Attachment 1), adopted December 12, 2018, established the adjustment on month-to-month rents be based on 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 in August. The August 2023 CPI-U was 3.3% (Attachment 2). To ensure that rent adjustments do not create an undue hardship, the maximum rate increase is limited to 3%. Based on the current economic climate, staff recommends increasing rents by only 1%. As an example, a tenant paying $1,500 in rent, would pay an additional $15 in rent for a 1% increase or an additional $45 for a 3% increase. In accordance with VHC policy rents are increased one time per year, therefore tenants entering into a lease in 2023 will not be subject to an annual rent increase until 2025. Rents for vacant units are set at the current rate published by the US Department of Housing and Urban Development for Small Area Fair Market Rent for ZIP Code 90058 (Attachment 3). There is currently a vacant two-bedroom unit that will become available during calendar year 2024, the rates will be as follows: One Bedroom - $1,580; Two Bedroom - $2,000; and Three Bedroom - $2,600 For historical reference, the Commission has established rent increases below the allowable, automatic adjustments, approving a 1.5% increase in 2022, and no increase in 2023. Staff requests Commission direction on rental rate adjustments for Calendar Year 2024 for City- owned residential units. Adjustments directed by the Commission would be effective February 1, 2024. Fiscal Impact Based on current occupancy, rental rate increases could represent an annual rental revenue increase of up to $2,945.85 for a 1% increase, and up to $8,837.54 for a 3% increase. Attachments 1. Resolution No. VHC-08 2. August 2023 CPI-U 3. HUD 2024 SAFMR Los Angeles-Long Beach-Anaheim, CA, CPI-U 1-month and 12-month percent changes, all items index, not seasonally adjusted 2023 Month 1- month 12- month January 1.9 5.8 February -0.3 5.1 March 0.1 3.7 April 0.7 3.8 May 0.1 3.2 June 0.5 2.5 July 0.0 2.7 August 0.7 3.3 September 0.3 3.2 October -0.1 2.4 November December The FY 2024 Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area Small Area FMRs for All Bedroom Sizes in ZIP Code 90058 FY2024 SAFMRs By Unit Bedrooms One-Bedroom Two-Bedroom Three-Bedroom $1,580 $2,000 $2,600