2017-03-22 Housing Authority Item H02 Staff Report - Reserve Study v AGENDA REPORT
Housing Authority
MEETING DATE: March 22, 2017
Nicole Piano-Jones,
PREPARED BY: Management Analyst MAGAGEMENT Steve Chase
Kathy Noel, CONSULTANT:
Management Analyst
DEPARTMENT: Planning & Building CITY MANAGER: Karen P. Brust
SUBJECT:
Property Condition Assessment and Replacement Schedule for the sixteen Encinitas Housing
Authority owned units at Pacific Pines and amendment to the existing contract with Hyder &
Company.
RECOMMENDED ACTION:
Staff recommends that the City of Encinitas Housing Authority (EHA) Board:
Adopt Resolution No. EHA 2017-11;
1) Approving the Pacific Pines Property Condition Assessment and Replacement Schedule,
and;
2) Authorizing the EHA Executive Director to amend the contract with Hyder & Company to
allow Hyder to incur additional costs, utilizing their operating budget, for the work identified
in the Replacement Schedule not to exceed $38,633, and;
3) Authorizing the Executive Director to include the Replacement Schedule work and funds in
subsequent property management contracts, and;
4) Authorizing the transfer of funds from the Pacific Pines Available Fund Balance as needed.
STRATEGIC PLAN:
This item relates to the Community Planning Focus Area of pursuing a range of diverse housing
opportunities balanced throughout the community, as well as, the Organizational Effectiveness &
Efficiency to maintain the City's financial health.
FISCAL CONSIDERATIONS:
Fiscal impacts associated with this Agenda Report are related to the Available Fund Balance for the
EHA owned units at Pacific Pines. The request is to amend Hyder & Company's contract (Attachment
"2") to complete the additional work and costs associated with the Replacement Schedule
(Attachment "S'). The proposed contract amendment can be found in Attachment "3". If the operating
budget is unable to accommodate all of the necessary work in accordance with the Replacement
Schedule, funds will be transferred from the available Pacific Pines Fund Balance. A Capital
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Improvement Project was created for the work delineated in the Replacement Schedule, which upon
approval of the Assessment and Replacement Schedule, will be incorporated into the City's six-year
Capital Improvement and Work Projects budget request cycle, which will be considered by the City
Council in Spring 2017. The total anticipated cost for the work outlined in the Replacement Schedule
over a six-year period (FY 2017-18 through FY 2022-23) is $142,246.
The EHA retains the services of a property management firm (Hyder & Company) for management
and maintenance of the units. Hyder collects rents and incurs management and other maintenance
expenses each month. Hyder retains a nominal operational reserve for unanticipated costs. The
monthly net of rent collected, management and maintenance expenses, and the nominal reserve, is
booked as revenue by the City. This revenue averages $7,480 per month. Amending the contract with
Hyder to complete the additional work items will result in a decrease in this revenue. Additionally, the
EHA receives monthly Housing Assistance Payments (HAP) for the Section 8 participants. These
payments are transferred, via journal entry on a monthly basis, from the Section 8 HAP operating
budget and currently averages $9,000 per month. These two revenue sources are deposited monthly
into a City account, from which the City pays for City staff, mortgage, property insurance, sewer fees,
and homeowner association fees. These expenses average $15,740 per month. If the amounts
available in the operating budget and in the property management's operating reserve are unable to
accommodate all of the necessary work in accordance with the Replacement Schedule, staff requests
authorization to transfer the deficit from the Pacific Pines Available Fund Balance. The proposed
contract amendment with Hyder & Company specifies that authorization from the EHA must be given
before proceeding with any of the work identified in the Replacement Schedule. Additionally, the
contract amendment requires that the expenditures associated with the work in the Replacement
Schedule be tracked separately.
The Pacific Pines Available Fund Balance is composed of several items, as depicted in the chart
below, and includes the Unreserved Fund Balance plus the Pacific Pines Reserve, less fixed assets
net of accumulated depreciation, plus long term liabilities to be paid from future revenues. The
Available Fund Balance reflects the available balance after the revenues have been reduced by the
expenditures. At the end of every year, if the revenues exceed the expenditures, the Available Fund
Balance is increased; if the expenditures exceed the revenues, the Available Fund Balance is
reduced. Over the past two fiscal years, the Available Fund Balance averaged an annual increase of
$41,060 per year. This can be attributed to the decrease in the amount owed on the EHA Mortgage
Note Payable. At the beginning of FY 2016-17, the Pacific Pines Fund had an Available Fund Balance
of $444,725. The Pacific Pines Six-Year Cashflow (Attachment "4") was prepared to illustrate the
estimated Available Fund Balance beginning in FY 15/16 and the ending balance in FY 22-23.
Pacific Pines FY16-17 Beginning Available Fund Balance
Fund Balance - Unreserved $1,551,091
Add: Fund Balance - Pacific Pines Reserve $368,904
Less: Fixed Assets Net of Depreciation <$2,806,680>
Add: Long Term Liabilities To be Paid From Future Revenue $1,331,410
Available Fund Balance $444,725
BACKGROUND:
Pacific Pines was built in 1984 as the Torrey Pines Racquet Club Apartments as authorized by the
County of San Diego. Although the property was mapped as condominiums, the project operated as
apartments, including thirty-seven affordable rental units. In 2002, the property owner began selling
the individual units. In 2003, the EHA utilized federal funding sources (Community Development
Block Grant and HOME Investment Partnership Programs) and private financing to purchase and
preserve some of the affordable units that otherwise would have been lost. As a result, sixteen units
were purchased by the EHA to be maintained as affordable rentals. The total purchase price for the
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sixteen units was $3,899,400, of which $1,905,338 was financed through a 30-year mortgage and
$1,994,062 was funded through federal sources. A primary motivation to purchase the units was not
only to preserve the existing affordable units, but also to provide permanent rental opportunities for
Encinitas Section 8 Housing Choice Voucher program participants.
ANALYSIS:
At a public hearing on March 9, 2016, the EHA Board directed staff to explore long-term plans for the
ongoing maintenance of the units at Pacific Pines. Further, the Board expressed the desire to avoid
deferring maintenance items in an effort to keep the cost of repairs to a minimum. In an effort to
combine endeavors, and as a cost savings measure, staff researched to see if other City facilities
required reserve studies. No studies were needed the time; therefore, a new study was required for
the Pacific Pines units. In July 2016, staff solicited three bids from qualified agencies to complete a
condition assessment and reserve analysis. Real Property Reporting Services, LLC, offered the
lowest and most qualified bid, at a cost of $2,900. In August 2016, staff retained their services and in
December 2016, a complete report was provided to the City.
Proposed Condition Assessment and Replacement Schedule
Completing a condition assessment and preparing a schedule for replacement is a common practice
with multi-family affordable housing owners. The result assists owners in sustainable financial
planning for replacement costs over an extended period of time. The consultant, Real Property
Reporting Services, began the process by thoroughly examining each of the EHA owned units at
Pacific Pines (16 total). All major components of the units were inspected, including cabinets,
counters, flooring, doors, windows, bathroom and kitchen facilities, painting, heating, venting/ exhaust,
and appliances. Each item was evaluated in terms of its "Estimated Useful Life" which is the intended
life of the item, its current age, and it's "Remaining Useful Life" based on the existing condition and
age. The Replacement Schedule catalogues items and estimated replacement costs over a 20-year
period. Items are assigned a price and totaled based on the number of units, with an inflation factor of
three percent assumed for each year's total. A summary of the total cost for a six-year period, plus the
current year, are provided below. This was to align with the City's Six-Year Capital Improvement
Project Budget cycle. The cost for subsequent years can be found on page nine of the Replacement
Schedule (Attachment "5"). The six-year total of $142,246, equates to $1,482 per unit, per year. At
this time, there is no set minimum threshold for the Reserve Fund. The Department of Housing and
Urban Development (HUD) recommends that owners target a minimum amount of $1,000 per unit
annually for replacement costs.
Pacific Pines Replacement Cost Projections
Year 2017 & 2019 2020 2021 2022 2023 Six-Year
2018 Total
Amount $21,739 $16,894 $17,400 $18,077 $15,172 $52,964 $142,246
Contract with Hyder & Company
The City's current contract with Hyder & Company is for management and maintenance of the EHA
owned units at Pacific Pines. The contract became effective on April 1, 2016 for an initial one-year
term with an option to renew for an additional two-year period. This report requests that the EHA
Executive Director amend the current contract (Attachment "2") to include the extra work and
additional funds necessary to complete the work as delineated in the Replacement Schedule for the
contract period. Further, the action associated with this report, as set forth in Resolution No. EHA
2017-11, requests that subsequent property management contracts for the Pacific Pines units include
the additional work and costs associated with the Replacement Schedule.
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Hyder's standard practice is to conduct inspections, no less than annually, to determine the condition
of the units. A detailed report is produced for each unit and immediate maintenance issues are
addressed. Other items are budgeted for accordingly and completed over a period of time. Typical
maintenance repairs include smoke alarms, broken window treatments, leaky fixtures, appliance
repairs, etc. The condition of major items such as flooring and cabinetry are assessed during the
inspection, although, typically there are not sufficient funds to replace such items on a regular basis.
While these inspections are detailed in nature, they do not identify the useful or remaining life, or
provide a detailed cost estimate for replacement over a period of time. Since Hyder was contracted for
property management in April 2016, the maintenance expenses for all units have averaged $330 per
month. It is anticipated that with the implementation of the proposed Replacement Schedule, the
average monthly maintenance costs will remain low or potentially may be reduced. Additionally, the
property management team and City staff will investigate available rebates and/or programs with
SDGE, San Dieguito Water District, or other utility programs to improve energy efficiency and reduce
costs for both the EHA and the tenants.
The Homeowner's Association provides maintenance of shared or common spaces, including the
outdoor landscaping, parking, walkway, community room, balconies/ patios, and roofing.
Previous & Other Uses of Available Fund Balance
A portion of the Available Fund Balance for replacement costs is the Pacific Pines Reserve Fund. At a
public hearing on October 23, 2013, (Attachment "6") the EHA Board approved the transfer of Pacific
Pines Reserve Funds to cover administrative shortfalls in the Section 8 Rental Assistance Program. A
total of $16,095 was transferred in FY 2013-14. Since that time, the Reserve Fund balance has
remained untouched. The current Reserve Fund Balance is $368,904.
This Reserve Fund balance is kept for unanticipated operational costs or future actions by the EHA
Board related to affordable housing opportunities. Additional uses of the Available Fund Balance
include, but are not limited to:
o Higher than expected operational costs such as Homeowners Association fees and
extra charges or maintenance expenses
o Administrative shortfalls in the Section 8 Rental Assistance Program
o Providing interim housing for residents in the event of an emergency while repairs are
made to units
o American's with Disabilities Act (ADA) modifications
o Pursuing additional affordable housing opportunities elsewhere in the City
ENVIRONMENTAL CONSIDERATIONS:
The action before the EHA Board is adoption of Resolution No. EHA 2017-11, approving the Pacific
Pines Property Condition Assessment and Replacement Schedule, and authorizing the amendment of
the property management contract to allocate additional funds to accommodate all of the necessary
work in accordance with the Replacement Schedule. These actions are exempt from environmental
review pursuant to Section 15060 (c) (2) and (c) (3) of the Guidelines of the California Environmental
Quality Act (CEQA) in that the activity will not result in a direct or reasonably foreseeable indirect
physical change in the environment; and the activity is not a project as defined in Section 15378 of the
CEQA Guidelines.
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ATTACHMENTS:
Attachment 1 — Resolution No. EHA 2017-11 titled, "A Resolution of the City of Encinitas
Housing Authority Board (EHA) Approving the Pacific Pines Property Condition
Assessment and Replacement Schedule; Authorizing the EHA Executive
Director to Amend the Contract With Hyder & Company to Allow Hyder to Incur
Additional Costs, Utilizing Their Operating Budget, For the Work Identified in
the Replacement Schedule; Authorizing the Executive Director to Include the
Replacement Schedule Work and Funds in Subsequent Property Management
Contracts, and; Authorizing the Transfer of Funds From the Pacific Pines
Available Fund Balance As Needed."
Attachment 2— Executed Contract with Hyder & Company
Attachment 3 — Contract Amendment#1 with Hyder & Company
Attachment 4 — Pacific Pines Six-Year Cashflow
Attachment 5 — Pacific Pines Property Condition Assessment and Replacement Schedule
Attachment 6 — October 23, 2013 Encinitas Housing Authority Agenda Report
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Attachment 1
Resolution EHA No. 2017-11
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RESOLUTION NO. EHA 2017-11
A RESOLUTION OF THE CITY OF ENCINITAS HOUSING AUTHORITY (EHA) BOARD
APPROVING THE PACIFIC PINES PROPERTY CONDITION ASSESSMENT AND
REPLACEMENT SCHEDULE; AUTHORIZING THE EHA EXECUTIVE DIRECTOR TO AMEND
THE CONTRACT WITH HYDER & COMPANY TO ALLOW HYDER TO INCUR ADDITIONAL
COSTS, UTILIZING THEIR OPERATING BUDGET, FOR THE WORK IDENTIFIED IN THE
REPLACEMENT SCHEDULE; AUTHORIZING THE EXECUTIVE DIRECTOR TO INCLUDE
THE REPLACEMENT SCHEDULE WORK AND FUNDS IN SUBSEQUENT PROPERTY
MANAGEMENT CONTRACTS; AND, AUTHORIZING THE TRANSFER OF FUNDS FROM
THE PACIFIC PINES AVAILABLE FUND BALANCE AS NEEDED.
WHEREAS, there is a shortage of decent, safe, and sanitary housing which is affordable to
lower-income households in the City of Encinitas and a consequent need to encourage the creation and
availability of affordable rental units for lower-income households, and;
WHEREAS, the City of Encinitas Housing Authority (EHA) approved the purchase of sixteen
condominium units at Pacific Pines to provide rental units for low-income households, located on South
El Camino Real in 2003, and;
WHEREAS, the EHA contracts with a professional property management firm to manage and
maintain the rental units, and:
WHEREAS, the EHA seeks to plan for the long-term maintenance needs of the units in order to
keep the units in good condition, and;
WHEREAS, a Property Assessment Condition and Replacement Schedule was prepared by
Real Property Reporting Services, LLC in December 2016, which outlines the useful life and estimated
remaining life of all major components of the rental units, and provides the annual cost required for
adequate maintenance of the sixteen units, and;
WHEREAS, based on the Replacement Schedule, the total costs over a six-year period from FY
2017-18 through FY 2022-23 are estimated at $142,246, and;
WHEREAS, a Capital Improvement Project will be created and included in the City's six-year
budget cycle for FY 2017-18 through FY 2022-23, and;
WHEREAS, the City and Hyder & Company entered into an agreement effective April 1, 2016,
for the property management and maintenance of the sixteen EHA owned condominium units at Pacific
Pines and based on satisfactory performance in the judgement of the EHA, and at the sole discretion of
the EHA Executive Director, the EHA may extend that agreement for an additional two-year period
ending on March 31, 2019, and;
WHEREAS, the available balance in the Pacific Pines Reserve Fund is currently $444,725.
NOW, THEREFORE, BE IT RESOLVED, by the EHA Board as follows:
1. That the foregoing recitations are true and correct.
2. The EHA hereby approves the Pacific Pines Property Condition Assessment and
Replacement Schedule.
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3. The EHA authorizes the Executive Director, to amend the current contract with Hyder &
Company to include additional work related to the Replacement Schedule and include an
additional contract amount not to exceed $38,633 for the remainder of the existing contract,
until March 31, 2019, if so extended per the EHA Executive Director. The EHA authorizes the
EHA Executive Director to include the replacement schedule work and funds in subsequent
property management contracts.
4. The EHA authorizes the transfer of funds from the Pacific Pines Available Fund Balance if
the operating budget is unable to accommodate all of the necessary work in accordance with
the Replacement Schedule.
5. A new Capital Improvement Project has been created to be incorporated into the City's six-
year Capital Improvement and Work Projects budget request cycle, which will be considered
by the City Council in spring 2017. The total anticipated cost for the work outlined in the
Replacement Schedule over a six-year period (FY 2017-18 through FY 2022-23) is
$142,246.
6. The action before the EHA Board is adoption of Resolution No. EHA 2017-11, approving the
Pacific Pines Property Condition Assessment and Replacement Schedule, and authorizing
the amendment of the property management contract to allocation additional funds to
accommodate all of the necessary work in accordance with the Replacement Schedule,
which is exempt from environmental review pursuant to Section 15060 (c) (2) and (c) (3) of
the Guidelines of the California Environmental Quality Act (CEQA) in that the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment; and
the activity is not a project as defined in Section 15378 of the CEQA Guidelines.
PASSED AND ADOPTED this 22"' day of March 2017, by the following vote, to wit:
AYES:
NAYS:
ABSTAI N:
ABSENT:
Catherine S. Blakespear, Chairperson
ATTEST:
Kathy Hollywood, Secretary
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Attachment 2
Executed Contract with Hyder & Company
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AGREEMENT FOR PROFESSIONAL CONSULTANT SERVICES
THIS AGREEMENT is made and entered into as of the date of execution by the CITY OF
ENCINITAS HOUSING AUTHORITY, hereinafter referred to as "HOUSING AUTHORITY", and
Hyder& Company, hereinafter referred to as "CONSULTANT'.
RECITALS
The HOUSING AUTHORITY requires outside assistance to provide the following services:
Consultant services for the property management of sixteen Housing Authority-owned condominium
units at Pacific Pines Condominiums located at the 1600-1800 block of El Camino Real, Attachment
"D", Encinitas, CA. The scope of work is more particularly described in "Attachment A" attached
hereto.
CONSULTANT represents itself as possessing the necessary skills and qualifications to
provide the services required by the HOUSING AUTHORITY,
NOW THEREFORE, in consideration of these recitals and the mutual covenants contained
herein, the HOUSING AUTHORITY and CONSULTANT agree as follows:
1.0 TERM OF AGREEMENT
1.1 This AGREEMENT shall be effective on the 1st day of April 2016.
1.2 CONSULTANT shall commence the performance of the services in accordance with
the Scope of Work section provided in Attachment"A" to this AGREEMENT and shall continue such
services until March 31St 2017. or this AGREEMENT is otherwise terminated. Based on satisfactory
performance in the judgment of the HOUSING AUTHORITY, and at the sole discretion of the
Executive Director, the HOUSING AUTHORITY may extend this AGREEMENT for an additional two-
year period.
2,0 CONSULTANT'S OBLIGATIONS (ATTACHMENT A)
2.1 CONSULTANT shall provide the HOUSING AUTHORITY with the following services:
The specific manner in which the services are to be performed is described in Attachment "A"
which is attached hereto, and incorporated herein as though fully set forth at length,
collectively hereinafter referred to as "DESCRIBED SERVICES".
2.2 CONSULTANT shall perform all work required to accomplish the DESCRIBED
SERVICES in conformity with applicable requirements of law. Federal, State and Local.
23 CONSULTANT is hired to render the DESCRIBED SERVICES and any payments
made to CONSULTANT are compensation fully for such services.
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2017-03-22 Item H2 10 of 113
2.4 CONSULTANT shall maintain professional certifications as required in order to
properly comply with all HOUSING AUTHORITY, State, and Federal law.
3.0 PAYMENT FOR SERVICES (ATTACHMENT
Payment to CONSULTANT to render the DESCRIBED SERVICES hereunder shall be as set
forth in Attachment 'B" which is attached hereto and incorporated herein as though fully set forth at
length.
4.0 SUBCONTRACTING (ATTACHMENT C)
4.1 If CONSULTANT subcontracts for any of the work to be performed under this
AGREEMENT, CONSULTANT shall be as fully responsible to the HOUSING AUTHORITY for the
acts and omissions of consultant's subcontractors and for the persons either directly or indirectly
employed by the subcontractors, as CONSULTANT is for the acts and omissions of persons directly
employed by CONSULTANT. Nothing contained in the AGREEMENT shall create any contractual
relationship between any subcontractor of CONSULTANT and the HOUSING AUTHORITY.
CONSULTANT shall bind every subcontractor to the terms of the AGREEMENT applicable to
consultant's work unless specifically noted to the contrary in the subcontract in question and
approved in writing by the HOUSING AUTHORITY.
4.2 The name and location of the place of business of each subcontractor who will perform
work or labor or render service to the CONSULTANT in performing this AGREEMENT are contained
in Attachment "C" which is attached hereto and incorporated herein as though fully set forth at
length.
5.0 EQUIVALENT ITEMS
No equivalent items are proposed a part of this AGREEMENT.
6.0 EXTRA WORK
CONSULTANT shall not perform work in excess of the DESCRIBED SERVICES without the
prior, written approval of the HOUSING AUTHORITY. All requests for extra work shall be by written
Change Order submitted to the HOUSING AUTHORITY prior to the commencement of such work.
7.0 VERBAL AGREEMENT OR CONVERSATION
No verbal agreement or conversation with any officer, agent or employee of the HOUSING
AUTHORITY, either before, during or after the execution of this AGREEMENT, shall effect or modify
any of the terms or obligations herein contained nor shall such verbal agreement or conversation
entitle CONSULTANT to any additional payment whatsoever.
8.0 TERMINATION OF AGREEMENT
8.1 In the event of CONSULTANT'S failure to prosecute, deliver, or perform the
DESCRIBED SERVICES, the HOUSING AUTHORITY may terminate this AGREEMENT by notifying
CONSULTANT by certified mail of said termination. Thereupon, CONSULTANT shall cease work
and within five (5) working days, (1) assemble all documents owned by the HOUSING AUTHORITY
and in consultant's possession and deliver said documents to the HOUSING AUTHORITY and (2)
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2017-03-22 Item H2 11 of 113
place all work in progress in a safe and protected condition. The HOUSING AUTHORITY Manager
of the HOUSING AUTHORITY shall make a determination of the percentage of work which
CONSULTANT has performed which is usable and of worth to the HOUSING AUTHORITY. Based
upon that finding, the HOUSING AUTHORITY and CONSULTANT shall mutually agree upon any
final payment due to CONSULTANT.
8.2 This AGREEMENT may be terminated by either party, without cause, upon the giving
of ten (10) days written notice to the other party. Prior to the 10th day following the giving of the
notice, the CONSULTANT shall: (1) assemble the completed work product to date, and put same in
order for proper filing and closing, and deliver said product to the HOUSING AUTHORITY and (2)
place all work in progress in a safe and protected condition. The HOUSING AUTHORITY Manager
of the HOUSING AUTHORITY shall make a determination of the percentage of work which
CONSULTANT has performed which is usable and of worth to the HOUSING AUTHORITY. Based
upon that finding, the HOUSING AUTHORITY and CONSULTANT shall mutually agree upon any
final payment due to CONSULTANT.
9.0 COVENANTS AGAINST CONTINGENT FEES
CONSULTANT warrants that it has not employed or retained any company or person, other
than a bona fide employee working for CONSULTANT, to solicit or secure this AGREEMENT, and
that CONSULTANT has not paid or agreed to pay any company or person, other than a bona fide
employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration
contingent upon, or resulting from, the award or making of this AGREEMENT. For breach or
violation of this warranty, the HOUSING AUTHORITY shall have the right to terminate this
AGREEMENT without liability, or, at the HOUSING AUTHORITY'S discretion to deduct from the
AGREEMENT price or consideration, or otherwise recover the full amount of such fee, commission,
percentage, brokerage fee, gift or contingent fee.
10.0 OWNERSHIP OF DOCUMENTS
10.1 All plans, studies, sketches, drawings, reports and specifications as herein required are
the property of the HOUSING AUTHORITY, whether or not the HOUSING AUTHORITY proceeds
with the project for which such documents are prepared.
10.2 If the HOUSING AUTHORITY reuses such documents for any reason other than for
the project for which they are prepared, without CONSULTANT'S prior written authorization which
shall not be unreasonably withheld, the HOUSING AUTHORITY waives any claim against
CONSULTANT for such unauthorized use and will indemnify and hold CONSULTANT harmless
from any claim or liability for injury or loss allegedly arising from the HOUSING AUTHORITY'S
unauthorized use of such documents.
11.0 STATUS OF CONSULTANT
CONSULTANT shall perform the services provided for herein in a manner of
CONSULTANT'S own choice, as an independent contractor and in pursuit of CONSULTANT'S
independent calling, and not as an employee of the HOUSING AUTHORITY. CONSULTANT shall
be under control of the HOUSING AUTHORITY only as to the result to be accomplished and the
personnel assigned to the project. However, CONSULTANT shall confer with the HOUSING
AUTHORITY.
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2017-03-22 Item H2 12 of 113'
12.0 HOLD HARMLESS
12.1 CONSULTANT agrees to indemnify and hold the HOUSING AUTHORITY and
HOUSING AUTHORITY'S officers, officials, employees and agents harmless from, and against any
and all liabilities, claims, demands, causes of action, losses, damages and costs, including all costs
of defense thereof, arising out of, or in any manner connected directly or indirectly with, any acts or
omissions of CONSULTANT or CONSULTANT'S agents, employees, subcontractors, officials,
officers or representatives. Except as otherwise provided in this Section, upon demand,
CONSULTANT shall, at its own expense, defend HOUSING AUTHORITY and HOUSING
AUTHORITY'S officers, officials, employees and agents, from and against any and all such liabilities,
claims, demands, causes of action, losses, damages and costs.
12.2 CONSULTANT'S obligation herein does not extend to liabilities, claims, demands,
causes of action, losses, damages or costs that arise out of the HOUSING AUTHORITY'S
intentional wrongful acts, HOUSING AUTHORITY'S violations of law, or the HOUSING
AUTHORITY'S sole active negligence.
13.0 ASSIGNMENT OF CONTRACT
CONSULTANT is without right to and shall not assign this AGREEMENT or any part thereof
or any monies due hereunder without the prior written consent of the HOUSING AUTHORITY which
shall not be unreasonably withheld.
14.0 INSURANCE
14.1 CONSULTANT shall obtain, and during the term of this AGREEMENT shall maintain
insurance policies of general liability, automobile liability, and property damage insurance from an
insurance company authorized to be in business in the State of California. Each such policy shall be
in an amount of not less than one million dollars ($1,000,000) for each occurrence, and shall be
endorsed with the following language:
A. The HOUSING AUTHORITY and HOUSING AUTHORITY's officers, elected
officials, employees, agents and volunteers are to be covered as additional insured with respect to
liability arising out of the acts and omissions by or on behalf of CONSULTANT.
B. The insured waives all rights of subrogation against the HOUSING AUTHORITY
and HOUSING AUTHORITY's officers, officials, employees, agents and volunteers.
C. Provide that the policy shall remain in full force during the full term of this
AGREEMENT and shall not be canceled, voided, terminated, reduced, or allowed to expire without
thirty (30) days prior written notice from the issuance company being received by HOUSING
AUTHORITY.
14.2 CONSULTANT shall obtain, and during the term of this AGREEMENT shall maintain, a
policy of professional liability insurance that shall.
A. Be from an insurance company authorized to be in business in the State of
California,
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2017-03-22 Item H2 13 of 113
B. Be in an insurable amount of not less than $1,000,000 for each occurrence;
and
C. Provide that the policy shall remain in full force during the full term of this
AGREEMENT and shall not be canceled, terminated, or allowed to expire without thirty (30) days
prior written notice to the HOUSING AUTHORITY from the insurance company.
14.3 Before CONSULTANT shall employ any person or persons in the performance of the
AGREEMENT, CONSULTANT shall procure a policy of Worker's Compensation Insurance as
required by the Labor Code of the State of California.
14.4 CONSULTANT shall provide certificates of insurance with original endorsements to
HOUSING AUTHORITY as evidence of the insurance coverage required herein. Certificates of such
insurance shall be filed with the HOUSING AUTHORITY on or before commencement of
performance of this AGREEMENT. Current certification of insurance shall be kept on file with the
HOUSING AUTHORITY at all times during the term of this AGREEMENT.
15.0 DISPUTES
15.1 If a dispute should arise regarding the performance of this AGREEMENT, the following
procedures shall be used to address any question of fact or interpretation not otherwise settled by
agreement between the parties. Such questions, if they become identified as part of a dispute
between persons operating under the provisions of the AGREEMENT, shall be reduced to writing by
the complaining party. A copy of such documented dispute shall be forwarded to the other parry
involved along with recommended methods of resolution. The party receiving the letter shall reply to
the letter along with a recommended method of resolution within ten (10) days of receipt of the letter.
15.2 If the dispute is not resolved, the aggrieved party shall send to the HOUSING
AUTHORITY'S Manager a letter outlining the dispute for Manager's resolution.
15.3 If the dispute remains unresolved and the parties have exhausted the procedures of
this section, the parties may then seek remedies available to them at law.
16.0 NOTICES
16.1 Any notices to be given under this AGREEMENT, or otherwise, shall be served by
certified mail.
162 For the purposes hereof, unless otherwise provided in writing by the parties hereto, the
address of the HOUSING AUTHORITY and the proper person to receive any notice on the
HOUSING AUTHORITY'S behalf is:
TO: Karen P. Brust, Executive Director
City of Encinitas Housing Authority
505 South Vulcan Avenue
Encinitas, CA 92024
(760) 633-2600
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16.3 For the purposes hereof, unless otherwise provided in writing by the parties hereto, the
address of CONSULTANT and the proper person to receive any notice on the CONSULTANT'S
behalf is:
TO: Michelle Pruitt, Director of Operations
Hyder& Company
1649 Capalina Road, Suite 500
San Marcos, CA 92069
(760) 591-9737 x35
17.0 CONSULTANT'S CERTIFICATION OF AWARENESS OF IMMIGRATION REFORM AND
CONTROL ACT OF 1986
CONSULTANT certifies that CONSULTANT is aware of the requirements of the Immigration
Reform and Control Act of 1986 (8 USC §§ 1101-1525) and has complied and will comply with these
requirements, including but not limited to verifying the eligibility for employment of all agents,
employees, subcontractors and consultants that are included in this AGREEMENT.
19.0 CONSULTANT'S AWARENESS AND COMPLIANCE WITH THE AMERICANS WITH
DISABILITIES ACT OF 1990
CONSULTANT certifies that CONSULTANT is aware of the requirements of the Americans
with Disabilities Act of 1990 (42 USC §§ 12101) and has complied with and will comply with these
requirements, included but not limited to verifying compliance of their contractors, consultants,
agents, and employees.
NON DISCRIMINATION
CONSULTANT HOUSING AUTHORITY
Hyder& Company ;Kai inita using Authority
f;
by ` .zr�7 '� s
Gary Da Prato ate n P. Brust Dat
Vice President of Business Administration Executive Director
APPROVE AS TO FORM:
GI n Sabine Dat
Attorney
Pacific Pines Property Management Contract(4-1-2016)
2017-03-22 Item H2 15 of 113
ATTACHMENT"A"
Case#
Finance#
(Manner of Performing the Services)
CONSULTANT shall perform the services in the following manner:
1 CONSULTANT agrees to manage sixteen units owned by the HOUSING AUTHORITY at the
Pacific Pines Condominiums complex located at the 1600 — 1800 blocks of South El Camino
Real, in Encinitas, CA (the "PROPERTY"). A complete list of units included in the
PROPERTY is included on Attachment "D". At the HOUSING AUTHORITY's option, it may
sell one or more of the units or purchase additional units; if the sale or purchase of units
occurs, the HOUSING AUTHORITY and CONSULTANT shall review the terms and
conditions of this AGREEMENT or of the Scope of Work to determine any appropriate
revisions to the AGREEMENT.
2 CONSULTANT shall perform the following property management services in accordance with
professional business practices
a. Management of tenants, which includes but is not limited to: rent collection; delivery
and follow-up of notices to tenants; eviction procedures; enforcement of rental
agreements and property rules and regulations; rent and credit screening of qualified
households; and move-in/move-out procedures.
b. Maintenance supervision, which includes but is not limited to: procurement of
experienced, licensed, and insured vendors; scheduling and scoping of work to be
performed, and periodic preventative maintenance. Special attention should be given
to preventive maintenance, and to the greatest extent feasible, the services of regular
maintenance personnel shall be used.
c. Financial management which includes but is not limited to maintaining accurate
records of every financial transaction, preparation of monthly financial statements,
prudent management of security deposits, and forecasting of future financial needs.
3 CONSULTANT will perform specific duties and responsibilities that include:
a. Rental/Leasinq: Initiate, sign, renew, or cancel rental agreements for the units; collect
and give receipts for rents, other charges, and security deposits. CONSULTANT and
HOUSING AUTHORITY will determine appropriate rental term periods based on
prevailing rental market and federal regulatory requirements.
b. Tenancy Termination: Sign and serve in HOUSING AUTHORITY's name: recovery of
rents and other sums due: and/or reinstate tenancies.
c. Repair and Maintenance: Make, cause, to made, and/or supervise repairs,
improvements, alterations to the PROPERTY; purchase and pay bills for services,
supplies, and forecasting of repair, replacement and maintenance needs.
CONSULTANT shall obtain prior approval of HOUSING AUTHORITY on all
expenditures over $500.00 for any one-time, or $1,250.00 in any calendar month.
Pacific Pines Property Management Contract(4-1-2016)
2017-03-22 Item H2 16 of 113
Prior approval shall not be required for monthly or recurring operating charges. If, in
the CONSULTANT's professional opinion, emergency expenditures over the maximum
are necessary to protect the PROPERTY or other properties from damage, prevent
injury to persons, and/or avoid suspension of necessary services to the PROPERTY,
then prior approval shall not be required. To the extent feasible, the services of regular
maintenance personnel shall be used. CONSULTANT shall contract with contractors
and vendors for the maintenance and repair of major mechanical systems, and for the
performance of extraordinary repairs beyond the capability of regular maintenance
personnel.
a. Contract/Services: Contract, hire, supervise, and/or discharge firms and persons
required for the maintenance of the PROPERTY. CONSULTANT may perform any of
these duties through attorneys, agents, employees, or independent contractors, and
except for CONSULTANT's employees, shall not be responsible for their acts,
omissions, defaults, negligence, and/or costs of the same.
b. Expense Payments: Pay expenses and costs for the PROPERTY from HOUSING
AUTHORITY's funds (rent and security deposit revenue) held by the CONSULTANT,
unless otherwise directed by HOUSING AUTHORITY. HOUSING AUTHORITY shall
be responsible for the payment of the following expenses for the PROPERTY:
mortgage payment (principal and interest), property taxes, assessments, homeowner
association dues. liability insurance, property insurance premiums, and gas/electric
charges for vacant units.
c. Security Deposits: Receive security deposits from tenants, which deposits shall be
placed in CONSULTANT's trust account. Upon termination of tenancy, CONSULTANT
shall return any unused balance of a security deposit to the tenant along with a
statement itemizing the use of the deposit, in accordance with State law.
d. Trust Funds: Deposit all receipts collected for HOUSING AUTHORITY, less any sums
deducted or disbursed, in a financial institution whose deposits are insured by an
agency of the U.S. government. The funds shall be held in a separate account.
e. Disbursements: On a monthly basis, the CONSULTANT may disburse compensation
due to CONSULTANT for services rendered as specified in "Attachment B". On a
monthly basis, CONSULTANT shall disburse to HOUSING AUTHORITY and balance
of funds in excess of$2.500.00.
f. Financial Statements: Render monthly statements of receipts, expenses and charges
for the PROPERTY, in a form acceptable to the HOUSING AUTHORITY. Additional
statements may requested by the HOUSING AUTHORITY,
Paciric Pines Property Management Contract(4-1-2016)
2017-03-22 Item H2 17 of 113
ATTACHMENT"B"
(Payment For Services)
The HOUSING AUTHORITY shall pay CONSULTANT for the DESCRIBED SERVICES as follows:
A. The HOUSING AUTHORITY agrees to pay the CONSULTANT, as full compensation for the
CONSULTANT's services, $65.00 per unit, a total of$1,040.00 per month.
B. CONSULTANT shall earn additional fees as follows:
a. The HOUSING AUTHORITY shall pay CONSULTANT for the services of regular
maintenance staff to conduct necessary repairs. Special attention should be given to
preventive maintenance, and to the greatest extent feasible, the services of regular
maintenance personnel shall be used.
C. HOUSING AUTHORITY agrees that CONSULTANT may pass through cost to the HOUSING
AUTHORITY, at CONSULTANT's cost, such property management items as: credit reviews,
returned check fees, legal fees, postage, and maintenance costs and any other services not
in conflict with this AGREEMENT.
Pacific Pines Property Management Contract(4-1-2016)
2017-03-22 Item H2 18 of 113
ATTACHMENT"C"
Case#
Finance#
(Subcontractors)
Name Business Address Work to be Done
Pacific Pines Property Management Contract(4-1-2016)
2017-03-22 Item H2 19 of 113
"Attachment D"
PROPERTY LISTING OF UNITS
1. 1650 South El Camino Real # F-103, Encinitas, CA 92024
2. 1650 South El Camino Real # F-105, Encinitas, CA 92024
3, 1650 South El Camino Real # F-202, Encinitas, CA 92024
4. 1710 South El Camino Real # E-203, Encinitas, CA 92024
5. 1760 South El Camino Real # D-107, Encinitas, CA 92024
6. 1760 South El Camino Real # D-204, Encinitas, CA 92024
7. 1770 South El Camino Real # 1-108, Encinitas, CA 92024
8. 1770 South El Camino Real # 1-201, Encinitas, CA 92024
9. 1770 South El Camino Real # 1-202, Encinitas, CA 92024
10.1770 South El Camino Real # 1-207, Encinitas, CA 92024
11.1780 South El Camino Real #C-201, Encinitas, CA 92024
12.1810 South El Camino Real# B-204, Encinitas, CA 92024
13.1810 South El Camino Real # B-208, Encinitas, CA 92024
14.1820 South El Camino Real #A-105, Encinitas, CA 92024
15.1820 South El Camino Real #A-108, Encinitas, CA 92024
16.1820 South El Camino Real #A-201, Encinitas, CA 92024
Pacific Pines Property Management Contract(4-1-2016)
2017-03-22 Item H2 20 of 113
Attachment 3
Contract Amendment #1 with Hyder & Company
2017-03-22 Item H2 21 of 113
AMENDMENT #1 TO THE
AGREEMENT FOR PROFESSIONAL CONSULTANT SERVICES BETWEEN
THE CITY OF ENCINITAS HOUSING AUTHORITY AND HYDER & COMPANY
This AMENDMENT is made and entered into as of the date of execution by the City of
Encinitas Housing Authority, a municipal corporation, hereinafter referred to as "HOUSING
AUTHORITY" and HYDER & COMPANY, hereinafter referred to as "CONSULTANT."
WHEREAS, the HOUSING AUTHORITY and CONSULTANT entered into an
agreement effective April 1 , 2016, for the property management of sixteen Housing Authority-
owned condominium units at Pacific Pines Condominiums located at the 1600 -1800 block of El
Camino Real, hereinafter referred to as the "AGREEMENT";
WHEREAS, the HOUSING AUTHORITY and CONSULTANT desire to modify Section
2.0 titled, "CONSULTANT'S OBLIGATIONS (ATTACHMENT A)" and Section 3.0 titled,
"PAYMENT FOR SERVICES (ATTACHMENT B)" of the AGREEMENT.
WHEREAS, this amendment will increase the contract budget by an amount not to
exceed $38,633 for the duration of the existing agreement, ending March 31 , 2019, as per
Section 1 .0, TERM OF AGREEMENT.
NOW THEREFORE, IT IS MUTUALLY AGREED:
The following shall be an addition to ATTACHMENT "A" of the "AGREEMENT":
CONSULTANT shall perform the services in the following manner:
4 CONSULTANT shall facilitate the work identified in the Pacific Pines Property
Condition Assessment and Replacement Schedule, prepared by Real Property Reporting
Services, LLC, attached hereto, no sooner than July 1 , 2017.
a. CONSULTANT shall obtain the authorization of the HOUSING AUTHORITY
before proceeding with the work in the Replacement Schedule. The
CONSULTANT shall solicit at least three (3) quotes from qualified bidders
for purchase of goods or services over $10,000.
b. CONSULTANT shall track expenditures for the work associated with the
Replacement Schedule separately from other maintenance work.
The following shall be an addition to ATTACHMENT "B" of the "AGREEMENT":
The HOUSING AUTHORITY shall pay CONSULTANT for the DESCRIBED SERVICES
as follows:
D. The HOUSING AUTHORITY hereby agrees to pay the CONSULTANT, as full
compensation not to exceed $38,633.00 for the services included in Attachment A,
related to the Replacement Schedule.
2017-03-22 Item H2 22 of 113
All remaining terms and conditions of the AGREEMENT shall remain in full force and effect.
CONSULTANT HOUSING AUTHORITY
Hyder & Company City of Encinitas Housing Authority
By Date By Date
Gary Da Prato Karen P. Brust
Vice President of Business Administration Executive Director
APPROVED AS TO FORM:
Date
Glenn Sabine, City Attorney
2017-03-22 Item H2 23 of 113
Attachment 4
Pacific Pines Six-Year Cashflow
2017-03-22 Item H2 24 of 113
Funding Source: Pacific Pines Fund(Fund 561)Six-Year Cash/low
The Housing Authority owns and operates 16 condominium units at Pacific Pines Condominium on S.El Camino Real. The units are preserved as
y affordable rental units and provide permanent rental opportunities for Section 8 Housing Choice Voucher program participants.The City contracts
with a local property management firm to manage the units.
Actual Adopted Proposed Proposed Proposed Proposed Proposed Proposed
FY 15116 FY 16117 FY 17118 FY 18119 FY 19120 FY 20121 FY 21122 FY 22123
1 Fund Balance 430,138 444,725 444,496 440,928 433,005 424,576 415,470 409,269
Revenues 221,908 219,342 219,342 219,342 219,342 219,342 219,342 219,342
Property Rental 119,683 115,000 115,000 115,000 115,000 115,000 115,000 115,000
Federal Housing Subsidy 97,800 103,000 103,000 103,000 103,000 103,000 103,000 103,000
Other 1,562
Investment Earnings 2,863 1,342 1,342 1,342 1,342 1,342 1,342 1,342
New Revenues - - - - - - - -
Discretionary - - - - - - - -
Non-Discretionary - - - - - - - -
2 Revenues Total 221,908 219,342 219,342 219,342 219,342 219,342 219,342 219,342
Operating Expenditures 220,648 223,778 223,778 223,778 223,778 223,778 223,778 223,778
Personnel 23,949 23,268 23,268 23,268 23,268 23,268 23,268 23,268
Materials&Supplies 1,641 4,500 4,500 4,500 4,500 4,500 4,500 4,500
Contracts&Services 94,954 95,745 95,745 95,745 95,745 95,745 95,745 95,745
Internal Cast Allocation - - - - - - - -
Fixed Assets/Debt Service 100,104 100,265 100,265 100,265 100,265 100,265 100,265 100,265
New Programs - 9,200 12,539 16,894 17,400 18,077 15,172 52,964
Personnel - - - - - - - -
Materials&Supplies - - - - - - - -
Contracts&Services - - - - - -
Repair and Rehab per Needs Assessment - 9,200 12,539 16,894 17,400 18,077 15,172 52,964
Internal Cost Allocation - - - - - - - -
Fixed Assets/Debt Service - - - - - - - -
3 Operating Expenditures Total 220,648 232,978 236,317 240,672 241,178 241,855 238,950 276,742
4 Transfers In-Section 8(From General Fund(101) 13,327 13,407 13,407 13,407 13,407 13,407 13,407 13,407
5 Transfers Out - - - - - - - -
6 Current Year Net (2-3+4.5) 14,587 (229) (3,568) (7,923) (8,429) (9,106) (6,201) (43,993)
7 Fund Balance(1+6) 444,725 444,496 440,928 433,005 424,576 415,470 409,269 365,276
8 Capital Improvement Projects/VVork Projects - - - - - - - -
9 Ending Fund Balance 444,725 444,496 440,928 433,005 424,576 415,470 409,269 365,276
2017-03-22 Item H2 25 of 113
Attachment 5
Pacific Pines Property Condition Assessment and Replacement Schedule
2017-03-22 Item H2 26 of 113
ar, elz T)eIRS
Property Con ditionAssessment
Pacific Pines Condominiums (16 Units*)
South El Camino Real
Encinitas, CA 92024
' r
-----T--F 17
I'acificPines --
Client:
City of Encinitas
505 South Vulcan
Encinitas, CA 92024
*specific addresses listed within body of report
2017-03-22 Item H2 27 of 113
PCA Consultant(Firm) RPRS,LLC
PCA Consultant Street Address 1132 Lincoln Way,#2
PCA Consultant(City,State and Zip Code) Auburn,CA 95603
PCA Consultant Signatory Tracy Hanson
Property Assessment Date(Mo/Day/Year) 10/26/16
(Date Report Signed(Mo/Day/Year) 11/7/16
Property Name Pacific Pines Condominiums
Street Address South El Camino Real
City Encinitas
State CA
Zip 92024
MSA San Diego-Carlsbad,California
Lender Prepared for
Engaged by Lender?
Individual at Lenderwho engaged PCA
Requested Turn time Scheduled to Client's Date
Modules Completed: Yes No
Student Housing X
Seniors Housing X
Manufactured Housing X
Cooperative Property X
Residential/Commercial Mix X
Integrated Pest Management Plan X
High Performance Building(HPB)
Evaluation X
2017-03-22 Item H2 28 of 113
eiz
EXECUTIVE SUMMARY
The following assessment summarizes the conclusions representing the best professional judgment of
Real Property Reporting Services, LLC. The assessment is based upon information and data available to
us during this assessment. Information regarding operations, conditions,and test data provided by the
Property owner,and/or their representative(s) has been assumed to be correct and complete.
Additionally,the conclusions presented herein are based solely upon the conditions that existed at the
time of the assessment. Note that on-site observation of the Property consisted of readily visible,
accessible areas only. This report is prepared solely for the use and benefit of City of Encinitas. This
report is not intended to provide advice or guidance about the purchase of the real estate referenced
herein.
LIMITATIONS
This report is expressly and exclusively for the sole use and benefit of The City of Encinitas and is not
for the use or benefit of, nor may it be relied upon, by any other person or entity. The contents of this
report may not be quoted in whole, in part,or distributed to any person or entity other than the Client
hereof without, in each case,the advance written consent of Real Property Reporting Services, LLC
(RPRS).
The statements in this report are professional opinions about the present condition of the subject
property. They are based upon visual evidence available during the inspection of all reasonably
accessible areas of the property. We did not remove any surface materials, perform any destructive
testing,or remove any furnishings. The study is not an exhaustive technical evaluation. Such an
evaluation would entail a significantly larger scope of work than was determined for this project.
Accordingly,we cannot comment on the condition of systems that we could not see, such as buried
structures and utilities, nor are we responsible for conditions that could not be seen or were not within
the scope of our services at the time of inspection. We did not undertake activities that would
completely assess the stability of the building or the underlying soil since this effort would require
excavation and destructive testing. Likewise, this is not a seismic assessment, nor do we make
comments or conclusions regarding wood boring pest damage.
We have performed our services and prepared this report in accordance with generally accepted
construction consulting practices,and make no other warranties,either expressed or implied, as to the
character and nature of such services and product.
Submitted by:
Tracy Hanson
2017-03-22 Item H2 29 of 113
2PiZs
PROPERTY DESCRIPTION
Sixteen Individual Units within Pacific Pines Condominium project are referred to as "The Property' in
this report. The Property is in a primarily residential neighborhood in Encinitas, California. Neighboring
properties include two large churches to the east; a multi-family residential complex to the north,and
vacant land to the south. The site is located on a main thoroughfare with good street visibility,and the
main entrances from South El Camino Real and El Camino Court are easily identified. The Property is
situated against a hillside and is relatively flat with a slight gradient to the south and is attractively
landscaped with mature trees and lawn areas. The apartment buildings were constructed in one phase
in 1984. Construction is typical light wood framing with slab on grade foundations; pitched metal roofs
and painted stucco with wood trim accents.
Survey of the Property was conducted October 26, 2016. The weather at the time was sunny. At the
Property,we met with Mr. David Gomez,facility manager for Hyder Co.
OVERALL CONDITION ASSESSMENT
The Property underwent a condo conversion in 2003 including interior upgrades(cabinets,countertops,
sinks, flooring, fixtures,etc.)
Overall the Property is in fair condition,and is equivalent when compared to properties of similar age
and construction type. It is our opinion that the estimated useful life of the Property, in its current use,
is at least an additional 30 years, if the repairs described in the report are made,the physical
improvements receive continuing maintenance and if the various components and/or systems are
replaced or repaired on a timely basis as needed. This report is limited to the individual 16
condominiums as site,structure, etc. is covered by HOA.
DWELLING UNITS
The unit break down consists of(5) 1BD/1BA units, approx. 730sgft, (5) 2BD/1BA units, approx. 906sgft,
and (6) 2BD/2BA units, approx. 1000sgft.
Each unit provides an electric range,vented micro/hood with light, refrigerator with freezer on top,
dishwasher and disposal, all upgraded during conversion. Kitchen cabinets are wood with granite
countertops,stainless double bowl sinks, with single handle faucets. Bathrooms come with vanity,
bath/shower insert, mirror, medicine cabinet, toilet, and standard accessories.
Ceramic tile is used in entry ways, kitchens and baths,while all other flooring is wall to wall carpeting.
Interior doors consist of six panel wood doors and mirrored by-pass closet doors.
Each unit has its own stacker washer and dryer unit.
2017-03-22 Item H2 30 of 113
2PiZs
Air conditioning is not provided in units. Current heat source appears to be Cadet Wall heaters. Please
note that Cadet wall heaters were recalled in 2000. With conversion occurring in 2003 heaters were
most likely changed, but further inspection should be done to confirm.
Recall information from Cadet's website:
Cadet's number one priority is the safety and complete satisfaction of our customers. Every Cadet
heater is manufactured and factory tested before it ships, right here at our plant in Vancouver,
Washington. We've earned a reputation for creating superior products that deliver warmth, comfort,
and energy savings to every Cadet customer.
In 2000,we voluntarily recalled the following Cadet products sold between 1982 and 1999:
We made every effort to contact our customers who may have been affected by this action, including
numerous mailings, advertisements in trade journals,and outreach through local news stations that
carried the story.
While the recall period has ended, if you still have one of these heaters we recommend replacing it
immediately. Cadet products are available at The Home Depot, Lowe's, Menards,Ace,True Value, and
other retailers,wholesalers, and distributors. See all your options here.
Although many heaters may look similar on the outside, wattage and voltage may differ. In most
instances, the recall involved replacement of the heat box only, which means that you can reuse your
existing wall can and grill. The few exceptions include:
Cadet TK and RK models require complete unit replacements.
Cadet FW and RW models require an additional adapter plate and grill.
None of the units inspected are considered to be "accessible' units; however, one tenant is
handicapped and they have made alterations to their unit to accommodate.
Per numerous tenants, in 2014 while roofs were being replaced, a large storm occurred and caused
damage to drywall and carpeting in upstairs units. Units have had their carpet replaced and drywall
repairs made, but a few still need the paint and texture to be completed.
A detailed accounting of each unit's fixtures and condition along with accompanying pictures and
Replacement Reserve Schedule is made a part of this report.
A separate file of interior pictures of each unit has been provided as well.
2017-03-22 Item H2 31 of 113
2PiZs
UNITS INSPECTED
1. 1650 South El Camino Real # F-103, Encinitas
2. 1650 South El Camino Real # F-105, Encinitas
3. 1650 South El Camino Real # F-202, Encinitas
4. 1710 South El Camino Real # E-203, Encinitas
5. 1760 South El Camino Real # D-107, Encinitas
6. 1760 South El Camino Real # D-204, Encinitas
7. 1770 South El Camino Real # 1-108, Encinitas
8. 1770 South El Camino Real # 1-201, Encinitas
9. 1770 South El Camino Real # 1-202, Encinitas
10. 1770 South El Camino Real # 1-207, Encinitas
11. 1780 South El Camino Real # C-201, Encinitas (Couldn't gain entry, locks changed)
12. 1810 South El Camino Real # B-204, Encinitas
13. 1810 South El Camino Real # B-208, Encinitas
14. 1820 South El Camino Real #A-105, Encinitas
15. 1820 South El Camino Real #A-108, Encinitas
16. 1820 South El Camino Real #A-201, Encinitas
UNIT MIX
Unit Type #of Units
1 bed / 1 bath 5
2 bed / 1 bath 5
2 bed /2 bath 6
2017-03-22 Item H2 32 of 113
Jk 01? Pei? I�
Physical Needs Assessment
Materials and Conditions - Dwelling Units
Project: Pacific Pines Date: 11/7/2016
Unit Total
Item EUL AGE RUL Cond Action DUR QTY Unit Cost Cost Comments
Kitchen Cabinets
20
13
7
Fair
Replace
4
16
ea
3400
54400
KCMA certified
Countertop and Sink
20
13
7
Fair
Replace
4
16
ea
1050
16800
granite tops, SS sink
Vanities
20
13
7
Fair
Replace
4
22
ea
650
14300
cabinet, granite, porcelin
sink
Living Area Floors: Ceramic,
Quarry Tile, Terrazzo
20
13
7
Fair
Replace
4
22
ea
400
8800
ceramic tile floors at bath
Living Area Floors: Ceramic,
Quarry Tile, Terrazzo
20
131
7
Fair
Replace
4
16
ea
2501
4000
ceramic tile floors at entry
Living Area Floors: Ceramic,
Quarry Tile, Terrazzo
20
13
7
Fair
Replace
4
16
ea
800
12800
ceramic tile floors at
kitchens
Living Area Floors: Carpet
7
4
3
Fair
Replace
4
5
ea
800
4000
one bedroom units
Living Area Floors: Carpet
7
4
3
Fair
Replace
4
11
ea
1000
11000
two bedroom units
Refrigerator
15
10
5
Fair
Replace
8
16
ea
850
13600
Replace as needed
Dishwasher
10
5
5
Fair
Replace
8
16
ea
500
8000
Replace as needed
Microwave/Hood
10
5
5
Fair
Replace
8
16
ea
400
6400
Replace as needed
Disposal
15
10
5
Fair
Replace
8
16
ea
125
2000
Replace as needed
Range
15
5
10
Fair
Replace
8
16
ea
550
8800
Replace as needed
Washer Dryer
15
5
10
Fair
Replace
8
16
ea
650
10400
Replace as needed
Unit Radiation : Electric
wallheater
20
13
7
Fair
Replace
4
43
ea
325
13975
Cadet wall heaters
Bath Accessories
10
5
5
Fair
Replace
4
22
ea
125
2750
Replace as needed
Bath Fixtures(toilet, tub)
20
13
7
Fair
Replace
4
22
ea
1300
28600
Replace as needed
Closet Doors wood
10
5
5
Fair
Replace
4
10
ea
120
1200
Replace as needed
Closet Doors mirrored
101
5
5
Fair
Replace
1 21
17
ea
1 400
6800
Mirrored bypass at 2/1 units
Interior Door
30
13
17
Fair
Replace
4
49
ea
120
5880
Replace as needed
Living Area Walls
7
6
1
Fair
Maintain
4
16
units
2000
32000
Repaint walls/ceilings
Smoke/Fire Detectors
10
8
2
Fair
Replace
4
38
ea
75
2850
Replace as needed
Unit Vent/Exhaust
15
13
2
Fair
Replace
4
22
ea
110
2420
Replace as needed
Window Covering
15
13
2
Fair
Replace
4
53
ea
125
6625
Replace as needed
Windows(frames&glazing)
30
13
17
Good
Maintain
4
27
ea
750
20250
Replace as needed
Windows(SGD)
30
13
17
Good
Maintain
4
16
ea
1000
16000
Replace as needed
Exterior Door(Entry) and
hardware
30
13
17
Fair
Maintain
4
12122
250
4000
Replace as needed
Chimney Cleaning
1
0
1
Fair
Maintain
1
16
ea
75
1200
service annually
2017-03-22 Item H2 33 of 113
j )- el?pelzs
Proiect: Pacific Pines
Physical Needs Assessment
Over the Term - Dwelling Units
Date: 11/7/2016
Item
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
H&S 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Total
Kitchen Cabinets
0
0
0
0
0
0
0
13600
13600
13600
13600
0
0
0
0
0
0
0
0
0
0
54400
Countertop and Sink
0
0
0
0
0
0
0
4200
4200
4200
4200
0
0
0
0
0
0
0
0
0
0
16800
Vanities
0
0
0
0
0
0
0
3575
3575
3575
3575
0
0
0
0
0
0
0
0
0
0
14300
Living Area Floors:Ceramic,
Quarry Tile,Terrazzo
0
0
0
0
0
0
0
2200
2200
2200
2200
0
0
0
0
0
0
0
0
0
0
8800
Living Area Floors:Ceramic,
Quarry Tile,Terrazzo
0
0
0
0
0
0
0
1000
1000
1000
1000
0
0
0
0
0
01
0
0
0
0
4000
Living Area Floors:Ceramic,
Quarry Tile,Terrazzo
0
0
01
01
01
0
01
3200
3200
32001
32001
0
01
01
01
0
0
0
0
01
01
12800
Living Area Floors:Carpet
0
0
0
1000
1000
1000
1000
0
0
0
1000
1000
1000
1000
0
0
0
1000
1000
1000
1000
12000
Living Area Floors:Carpet
0
0
0
2750
2750
2750
2750
0
0
0
2750
2750
2750
2750
0
0
0
2750
2750
2750
2750
33000
Refrigerator
0
0
0
0
0
1700
1700
1700
1700
1700
1700
1700
1700
0
0
0
0
0
0
0
1700
15300
Dishwasher
0
0
0
0
0
1000
1000
1000
1000
1000
1000
1000
1000
0
0
1000
1000
1000
1000
1000
1000
14000
Microwave/Hood
0
0
0
0
0
800
800
800
800
800
800
800
800
0
0
800
800
800
800
800
800
11200
Disposal
0
0
0
0
0
250
250
250
250
250
250
250
250
0
0
0
0
0
0
0
250
2250
Range
0
0
0
0
0
0
0
0
0
0
1100
11001
1100
1100
1100
11001
1100
1100
01
0
0
8800
Washer Dryer
0
0
0
0
0
0
0
0
0
0
1300
1300
1300
1300
1300
1300
1300
1300
0
0
0
10400
Unit Radiation :Electric
wallheater
0
0
0
0
0
0
0
34941
3494
3494
3494
0
0
0
0
0
0
0
0
0
0
13975
Bath Accessories
0
0
0
0
0
688
688
688
688
0
0
0
0
0
0
688
688
688
688
0
0
5500
Bath Fixtures(toilet,tub)
0
0
01
0
0
0
0
7150
7150
7150
7150
0
0
0
0
0
0
0
0
0
0
28600
Closet Doors wood
0
0
0
0
0
300
300
300
300
0
0
0
0
0
0
300
300
300
300
0
0
2400
Closet Doors mirrored
0
0
0
0
0
3400
3400
0
0
0
0
0
0
0
0
3400
3400
0
0
0
0
13600
Interior Door
0
0
0
0
0
0
0
0
0
01
0
0
0
0
0
0
0
1470
1470
1470
1470
5880
Living Area Walls
0
8000
8000
8000
8000
0
0
0
8000
8000
8000
80001
0
0
01
8000
8000
80001
80001
0
0
96000
Smoke/Fire Detectors
0
0
713
713
713
713
0
0
0
0
0
0
713
713
713
713
0
0
0
0
0
5700
Unit Vent/Exhaust
0
0
605
605
605
605
0
0
0
0
0
0
0
0
0
01
0
605
605
605
605
4840
Window Covering
0
0
1656
1656
1656
1656
0
0
0
0
0
0
0
0
0
0
0
1656
1656
1656
1656
13250
Windows(frames&glazing)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
5063
5063
5063
5063
20250
Windows(SGD)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4000
4000
4000
4000
16000
Exterior Door(Entry)and
hardware
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1000
1000
1000
1000
4000
Chimney Cleaning
0
1200
1200
1200
1200
1200
1200
1200
1200
1200
1200
1200
1200
1200
1200
1200
1200
1200
1200
1200
1200
24000
Uninflated Totals
0
9200
12174
15924
15924
16061
13088
44356
52356
51369
57519
19100
11813
8063
4313
18500
17788
31931
29531
20544
22494
472045
Inflation Factor(3%)
1 0000
1.0000
1.0300
1.0609
1.0927
1.1255
1.1593
1.1941
12289
12668
1.3048
1.3439
1.3842
1 4258
1 4685
1 5126
1 5580
1 6047
1 6528
1 7024
175,5
Inflated Totals
0
9200
12539
16894
17400
180771
151721
529641
64392
65072
75049
25669
16351
11495
6333
27983
27712
51240
48811
349741
394431
636770
2017-03-22 Item H2 34 of 113
n �_ ��,,J(� Physical Needs Assessment
� Executive Summary
Pacific Pines
Date: 11/7/2016
Non-Inflated Inflated
Immediate Capital Needs: $0 x�\
Total Capital Needs Over the Term: $472,045 $636,770
Grand Total Capital Needs: $472,045 $636,770
Units: 16 Capital Needs Per Unit $29,503 $39,798
H 8&S
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Total
S
o
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
nmhlteotura
o
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
me &Fectllc
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Dwelling Units
0
9200
12174
15924
15924
16061
13088
44356
52356
51369
57519
19100
11813
8063
4313
18500
17788
31931
29531
20544
22494
472045
Uninflated Totals
0
9200
12174
15924
15924
16061
13088
44356
52356
51369
57519
19100
11813
8063
4313
18500
17788
31931
29531
20544
22494
472045
nflatl 0n Facto r(3%)
10000
10000
10300
10609
10927
11255
11531
1]941
12249
12568
13048
130.:9
13842
14258
14685
15126
15580
16047
16528
17024
17535
Inflated Totals
0
9200
12539
16894
17400
18077
151721
529641
64392
65072
750491
256691
16351
11495
63331
279831
27712
51240
48811
34974
39443
636770
Non-Inflated Inflated
Immediate Capital Needs: $0 x�\
Total Capital Needs Over the Term: $472,045 $636,770
Grand Total Capital Needs: $472,045 $636,770
Units: 16 Capital Needs Per Unit $29,503 $39,798
2017-03-22 Item H2 35 of 113
Non-Inflated
Inflated
Capital Needs Per Unit Over Terml
Capital Needs Per Uni[/Year
Capital Needs Per Unit/Monthl
$29,5031
$39,798
$1,475.141
$1,989.91
$122.931
$165.83
2017-03-22 Item H2 35 of 113
w P� Date of Inspection:
'/[mil' II■■ S Pacific Pines Unit Inventor y 10i27i2016
UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
F 202 1650 S El Camino Real F 1\1 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE le MIC FAIR good condition,grout stained
ENTRY DOOR FAIR woo 6 panel.Needs paint
ENTRY DOOR HARDWARE kset FAIR
LIVING ROOM CARPET n POOR worn,stains
BLINDS vertical FAIR
WALL HEATER t FAIR 1 @LVRM,1 @ BDRM-dirty, may be at EUL
WOOD BURNING FP FAIR brick surround, brick hearth
LIGHT FIXTURES e N A Fan Light
PAINT x FAIR crack in ceiling,rough patch,needs paint
KITCHEN CABINETS d FAIR wood,flush panel,stained
SINK n ess stee FAIR
FAUCETS n FAIR
COUNTERS ite FAIR
LIGHT FIXTU RES escent FAIR
OUTLETS FAIR
PAINT x enamel FAIR repaint necessary
APPLIANCES MICROWAVE HOOD point FAIR Micro ex austcom o
DISHWASHER POOR rusty,older
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR GE electric Poor older model, most likely 2001,R134a refrigerant
OVEN RANGE GE electric Poor older model
WASHER DRYER GE electric FAIR manufacture,1999,or 2011
BEDROOM TS CARPET nylon Poor worn,staine
BLINDS vertical FAIR
DOORS wood FAIR 2 panel painted Masonite,vinyl folding at laundry
LIGHT FIXTU RES Fan Lig t FAIR Tan` igTitat master
PAINT patches at window FAIR needs paint at patches
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass FAIR fiberglass tub shower w Bass enclosures
SHOWER ENCLOSURE N FA-
VANITY BASIN ceramic FAIR underhung
PLUMBING HARDWARE moen FAIR
CABINET wood FAIR
COUNTERTOP granite FAIR
DOORS woo FAIR
MIRROR vanity FAIR
LIGHT FIXTURES incandescent FAIR 13 light incandescent
,BATH HARDWARE moen
NOTES:smoke detector at hallway unseated.Non operational?
2017-03-22 Item H2 36 of 113
a2P-/-zS F202
inspection date 10/27/2016
2017-03-22 Item H2 37 of 113
w P� Date of Inspection:
'/[mil' II■■ S Pacific Pines Unit Inventor y 10i27i2016
UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
F1O3 1650 S El Camino Real F 1\1 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE CERAMIC FAIR good condition,grout stained
ENTRY DOOR Fi erg ass FAIR woo d-6 pane, HDCP ramp at door
ENTRY DOOR HARDWARE Kwickset FAIR
LIVING ROOM CARPET nylon POOR worn, lots of stains
BLINDS vertical FAIR
WALL HEATER Cadet FAIR 2 ea,1 @LVRM,1 @bedroom
WOOD BURNING FP yes FAIR brick surround, brick hearth
LIGHT FIXTU RES incandescent N A hanging swag light
PAINT Latex FAIR
KITCHEN CABINETS Wood FAIR
SINK Stain ess stee FAIR
FAUCETS Moen FAIR
COUNTERS Granite FAIR
LIGHT FIXTU RES Forescent FAIR
OUTLETS GFI FAIR
PAINT Latex enamel FAIR
APPLIANCES MICROWAVE HOOD Hotpoint FAIR Micro ex gust com o
DISHWASHER GE POOR dented,used for storage
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR Cros ey FAIR manufactured 2010, R134a refrigerant
OVEN RANGE GE electric Poor older model
WASHER DRYER GE space maker electric FAIR Vinyl folding door atW Dcloset
BEDROOM TS CARPET nylon Poor worn,staine
BLINDS Vertical FAIR
DOORS wood FAIR 2 panel painted masonite
LIGHT FIXTU RES Fan Lig t FAIR an ig tatmaster
PAINT patches at window FAIR
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass FAIR fiberglass tub shower,shower doors removed,ADA adds
SHOWER/TUB ENCLOSURE
VANITY BASIN ceramic FAIR underhung
PLUMBING HARDWARE moen FAIR
CABINET wood FAIR
COUNTERTOP granite FAIR
DOORS woo FAIR
MIRROR vanity FAIR
LIGHT FIXTU RES incandescent FAIR
,BATH HARDWARE moen
NOTES:Occupant is handicapped,shower door removed,ADA grab bars added to tub curb,ADA shower seat added,Shower head extension installed,
possibly by tenant,no grab bars atwater closet,kitchen not ADA compliant
2017-03-22 Item H2 38 of 113
201 7-03-22
)3
inspection date 10/27/2016
Item H2
39 of 113
w P� Date of Inspection:
'/[mil' II■■ S Pacific Pines Unit Inventor y 10i27i2016
UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
F1O5 1650 S El Camino Real F 1\1 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE CERAMIC FAIR good condition,grout stained
ENTRY DOOR Fi erg ass FAIR woo 6 pane
ENTRY DOOR HARDWARE Kwickset FAIR
LIVING ROOM CARPET nylon FAIR frayed at transitions
BLINDS vertical FAIR
WALL HEATER Cadet FAIR 2 ea,1 @LVRM,1 @bedroom
WOOD BURNING FP yes FAIR brick surround, brick hearth
LIGHT FIXTURES Fan Light FAIR cei ing an
PAINT Latex FAIR
KITCHEN CABINETS Wood GOOD
SINK Stain ess stee FAIR
FAUCETS Moen FAIR
COUNTERS Granite GOOD
LIGHT FIXTU RES Forescent FAIR
OUTLETS GFI FAIR
PAINT Latex enamel FAIR
APPLIANCES MICROWAVE HOOD GE a ectric GOOD Micro exhaust combo,2008
DISHWASHER Whirlpool FAIR Energy Star
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR GE electric GOOD manufacture 2013
OVEN RANGE GE electric FAIR older model
WASHER DRYER GE space maker electric FAIR Vinyl folding door atW Dcloset
BEDROOM TS CARPET nylon Poor rage attrans it ions
BLINDS horizontal FAIR
DOORS wood FAIR 2 panel painted masonite
LIGHT FIXTURES Fan Lig t FAIR an ig t
PAINT Latex FAIR
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass FAIR
SHOWER/TUB ENCLOSURE
VANITY BASIN ceramic FAIR underhung
PLUMBING HARDWARE moen FAIR
CABINET wood GOOD
COUNTERTOP granite GOOD
DOORS woo FAIR
MIRROR vanity FAIR
LIGHT FIXTU RES incandescent FAIR
,BATH HARDWARE moen
NOTES:unit in good condition
2017-03-22 Item H2 40 of 113
2P2S
D5
inspection date 10/27/2016
2017-03-22 Item H2 41 of 113
w P� Date of Inspection:
'/[mil' II■■ S Pacific Pines Unit Inventor y 10i27i2016
UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
1201 1770 S El Camino Real 1 2\1 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE CERAMIC GOOD good condition
ENTRY DOOR Fi erg ass FAIR woo 6 pane
ENTRY DOOR HARDWARE Kwickset FAIR
LIVING ROOM CARPET nylon GOOD
BLINDS vertical FAIR
WALL HEATER Cadet FAIR 3 ea,LVRM, bedrooms 1&2
WOOD BURNING FP yes FAIR brick surround, brick hearth
LIGHT FIXTURES incandescent N A an light
PAINT Latex FAIR
KITCHEN CABINETS Wood FAIR
SINK Stain ess stee FAIR
FAUCETS Moen FAIR
COUNTERS Granite FAIR
LIGHT FIXTU RES Forescent FAIR
OUTLETS GFI FAIR
PAINT Latex enamel FAIR
APPLIANCES MICROWAVE HOOD Hotpoint Fair
DISHWASHER GE GOOD new-2016
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR GE FAIR origins
OVEN RANGE Hotpoint FAIR
WASHER DRYER GE electric FAIR no door atW Dcloset
BEDROOM TS CARPET nylon Poor neecrs seam repair
BLINDS vertical FAIR
DOORS wood FAIR mirrored at second bedroom closet
LIGHT FIXTURES Fan Lig t FAIR an ig
t @ master, none at second rm
PAINT Latex FAIR
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass FAIR
SHOWER/TUB ENCLOSURE FAIR
VANITY BASIN ceramic FAIR underhung
PLUMBING HARDWARE moen FAIR
CABINET wood FAIR
COUNTERTOP granite FAIR
DOORS woo FAIR
MIRROR vanity FAIR
LIGHT FIXTU RES incandescent FAIR
,BATH HARDWARE moen
NOTES:Smoke detector missing at second bedroom
2017-03-22 Item H2 42 of 113
201 7-03-22
)1
inspection date 10/27/2016
Item H2
43 of 113
w P� Date of Inspection:
'/r,�+l' II■■ S Pacific Pines Unit Inventor y 10i27i201e
UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
1770 S El Camino Real 1 2\1 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE CERAMIC FAIR good condition
ENTRY DOOR Fi erg ass FAIR woo 6 pane.Nee s paint
ENTRY DOOR HARDWARE Kwickset FAIR
LIVING ROOM CARPET nylon FAIR worn
BLINDS vertical FAIR
WALL HEATER Cadet FAIR 3 ea,1 @LVRM,2 @bedrooms
WOOD BURNING FP yes FAIR brick surround, brick hearth
LIGHT FIXTU RES incandescent FAIR an light
PAINT Latex FAIR
KITCHEN CABINETS Wood FAIR
SINK Stain ess stee FAIR
FAUCETS Moen FAIR
COUNTERS Granite FAIR
LIGHT FIXTU RES Forescent FAIR
OUTLETS GFI FAIR
PAINT Latex enamel FAIR
APPLIANCES MICROWAVE HOOD GE FAIR Micro ex austcom o
DISHWASHER GE POOR rusted through at lower door edge
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR Whirlpool Good manufactured 2015
OVEN RANGE GE electric FAIR older model
WASHER DRYER GE electric FAIR no door at D
BEDROOM TS CARPET nylon FAIR worn
BLINDS vertical FAIR
DOORS wood FAIR wood door at mstr closet,Mirrored at second bdrm
LIGHT FIXTURES Fan Lig t FAIR an ig t at master, none at 2nd bdrm
PAINT Latex FAIR
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass FAIR fiberglass tub sower
SHOWER/TUB ENCLOSURE
VANITY BASIN ceramic FAIR underhung
PLUMBING HARDWARE moen FAIR
CABINET wood FAIR
COUNTERTOP granite FAIR
DOORS woo FAIR
MIRROR vanity FAIR
LIGHT FIXTU RES incandescent FAIR
,BATH HARDWARE moen
NOTES:no one home during inspection
2017-03-22 Item H2 44 of 113
201 7-03-22
)2
inspection date 10/27/2016
Item H2
45 of 113
w P� Date of Inspection:
'/r,�+l' II■■ S Pacific Pines Unit Inventor y 10i27i201e
UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
1770 S El Camino Real 1 2\1 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE CERAMIC FAIR good condition,grout stained
ENTRY DOOR Fi erg ass FAIR woo 6 pane.Nee s paint
ENTRY DOOR HARDWARE Kwickset FAIR
LIVING ROOM CARPET nylon GOOD
BLINDS vertical FAIR
WALL HEATER Cadet FAIR 3 ea,1 @LVRM,2 @bedrooms
WOOD BURNING FP yes FAIR brick surround, brick hearth
LIGHT FIXTU RES Fan Light FAIR
PAINT Latex FAIR
KITCHEN CABINETS Wood FAIR
SINK Stain ess stee FAIR
FAUCETS Moen FAIR
COUNTERS Granite FAIR
LIGHT FIXTURES incan escent cei ing FAIR
OUTLETS GFI FAIR
PAINT Latex enamel FAIR
APPLIANCES MICROWAVE HOOD W irpoo GOOD new,2015
DISHWASHER Whirlpool GOOD new,2015
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR GE POOR looks older
OVEN RANGE Whirlpool GOOD new,2015
WASHER DRYER GE electric POOR older,near end of EUL
BEDROOM TS CARPET nylon GOOD
BLINDS vertical FAIR
DOORS wood FAIR wood at mstr closet, mirrored at 2nd bdrm
LIGHT FIXTU RES Fan Lig t FAIR an ig to-master
PAINT patches at window FAIR beige at mstr bdrm
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass FAIR Looks newer,s ower curtain
SHOWER/TUB ENCLOSURE
VANITY BASIN ceramic FAIR new one-piece top and basin
PLUMBING HARDWARE moen FAIR
CABINET wood GOOD new, painted
COUNTERTOP cultured marble GOOD new one-piece top and basin
DOORS woo FAIR wood at mstr, mirrored at 2nd bdrm
MIRROR vanity FAIR
LIGHT FIXTU RES incandescent FAIR
Moe-
,BATH n
NOTES:
2017-03-22 Item H2 46 of 113
201 7-03-22
�8 inspection date 10/27/2016
F i
Item H2 47 of 113
w P� Date of Inspection:
'/r,�+l' II■■ S Pacific Pines Unit Inventor y 10i27i201e
UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
1770 S El Camino Real 1 2\1 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE CERAMIC FAIR good condition
ENTRY DOOR Fi erg ass FAIR woo 6 pane.Nee s paint
ENTRY DOOR HARDWARE Kwickset FAIR
LIVING ROOM CARPET nylon POOR worn,stains needs replacement
BLINDS vertical FAIR
WALL HEATER Cadet FAIR 3 ea,1 @LVRM,2 @bedrooms
WOOD BURNING FP yes FAIR brick surround, brick hearth
LIGHT FIXTURES Fan Light N A
PAINT Latex POOR repaint necessary
KITCHEN CABINETS Wood FAIR
SINK Stain ess stee FAIR
FAUCETS Moen FAIR
COUNTERS Granite FAIR
LIGHT FIXTU RES Forescent FAIR
OUTLETS GFI FAIR
PAINT Latex enamel POOR repaint necessary
APPLIANCES MICROWAVE HOOD W it Poo FAIR mg.2012
DISHWASHER Whirlpool FAIR
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR GE electric POOR
OVEN RANGE Whirlpool FAIR older model
WASHER DRYER GE electric FAIR rusty
BEDROOM TS CARPET nylon Poor worn,stained
BLINDS vertical FAIR
DOORS wood FAIR wood at mstr closet, mirrored at 2nd bdrm
LIGHT FIXTU RES Fan Lig t FAIR an ig to-master
PAINT patches at window Poor repaint necessary
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass Poor fiberglass tub sower,poor condition
SHOWER/TUB ENCLOSURE
VANITY BASIN ceramic Poor cracked
PLUMBING HARDWARE moen FAIR
CABINET wood FAIR
COUNTERTOP granite FAIR
DOORS woo FAIR
MIRROR vanity FAIR
LIGHT FIXTU RES incandescent FAIR
moen
,BATH HARDWARE NOTES:painting and carpet in poor condition
2017-03-22 Item H2 48 of 113
201 7-03-22
inspection date 10/27/2016
Item H2
TA i
49 of 113
1i
w P� Date of Inspection:
'/r,�+l' II■■ S Pacific Pines Unit Inventor y 10i27i2016
UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
1760 S El Camino Real D 2\2 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE CERAMIC FAIR good condition,grout stained
ENTRY DOOR Fi erg ass FAIR woo 6 pane
ENTRY DOOR HARDWARE Kwickset FAIR
LIVING ROOM CARPET nylon FAIR
BLINDS vertical FAIR
WALL HEATER Cadet POOR Sea, 1 @LVRM,2 @ bdrms, Ivrm rusted
WOOD BURNING FP yes FAIR 2
LIGHT FIXTURES Fan Light FAIR
PAINT Latex FAIR
KITCHEN CABINETS Wood FAIR
SINK Stain ess stee FAIR
FAUCETS Moen FAIR
COUNTERS Granite FAIR
LIGHT FIXTU RES Forescent FAIR missing user
OUTLETS GFI FAIR
PAINT Latex enamel FAIR
APPLIANCES MICROWAVE HOOD W it Poo FAIR mg.2010
DISHWASHER GE FAIR
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR GE POOR manufactured 2010, R134a refrigerant
OVEN RANGE Amana Good porcelain top
WASHER DRYER GE electric FAIR rusty, near end of EUL
BEDROOM TS CARPET nylon FAIR
BLINDS vertical FAIR
DOORS wood FAIR 2 panel painted masonite
LIGHT FIXTU RES Fan Lig t FAIR an ig tatmaster
PAINT Latex FAIR
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass FAIR fiberglass tub sower
SHOWER w ENCLOSURE fiberglass FAIR Fiberglass pan w surround and glass doors
VANITY BASIN ceramic FAIR underhung
PLUMBING HARDWARE moen FAIR
CABINET wood FAIR
COUNTERTOP granite FAIR
DOORS woo FAIR
MIRROR vanity FAIR
LIGHT FIXTU RES incandescent FAIR
,BATH HARDWARE moen
NOTES:
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UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
1750 S El Camino Real C 2\1 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE
ENTRY DOOR
ENTRY DOOR HARDWARE
LIVING ROOM CARPET
BLINDS
WALL HEATER
WOOD BURNING FP
LIGHT FIXTURES
PAINT
KITCHEN ICABINETS
SINK
FAUCETS
COUNTERS
LIGHT FIXTURES
OUTLETS
PAINT
APPLIANCES MICROWAVE HOOD
DISHWASHER
GARBAGE DISPOSAL
REFRIGERATOR
OVEN RANGE
WASHER DRYER
BEDROOM S CARPET
BLINDS
DOORS
LIGHT FIXTURES
PAINT
BATHROOM S WATER CLOSET
BATHTUB SHOWER
SHOWER/TUB ENCLOSURE
VANITY BASIN
PLUMBING HARDWARE
CABINET
COUNTERTOP
DOORS
MIRROR
LIGHT FIXTURES
NOTES:Locks changed,could not enter unit
2017-03-22 Item H2 52 of 113
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2017-03-22 Item H2 53 of 113
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UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
1760 S El Camino Real D 2\2 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE I AMIC FAIR good condition
ENTRY DOOR rg ass FAIR woo 6 pane
ENTRY DOOR HARDWARE kset FAIR
LIVING ROOM CARPET n FAIR
BLINDS vertical FAIR
WALL HEATER et FAIR 3 ea,1 @LVRM,2 @bedroom
WOOD BURNING FP FAIR brick surround, brick hearth
LIGHT FIXTU RES Incandescent FAIR five light hanging fixture
PAINT x FAIR
KITCHEN CABINETS d FAIR
SINK n ess stee FAIR
FAUCETS n FAIR
COUNTERS nite FAIR
LIGHT FIXTU RES escent FAIR
OUTLETS FAIR
PAINT x enamel FAIR
APPLIANCES MICROWAVE HOOD ' a're GOOD m g2010
DISHWASHER FAIR original
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR Whirlpool GOOD mfg.2013
OVEN RANGE GE electric FAIR original
WASHER DRYER GE electric FAIR rusty, near end of EUL
BEDROOM TS CARPET nylon FAIR
BLINDS vertical FAIR
DOORS wood FAIR 2 panel painted masonite
LIGHT FIXTU RES Fan Lig t FAIR an ig tatmaster
PAINT patches at window FAIR needs paint at patches
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass FAIR fiberglass tub sower
SHOWER/TUB ENCLOSURE fiberglass FAIR Fiberglass pan w surround and glass doors @ 2nd bath
VANITY BASIN ceramic FAIR underhung
PLUMBING HARDWARE moen FAIR
CABINET wood FAIR
COUNTERTOP granite FAIR
DOORS woo FAIR
MIRROR vanity FAIR
LIGHT FIXTU RES incandescent FAIR
IBATH HARDWARE moen
NOTES:
2017-03-22 Item H2 54 of 113
P7Rs
inspection date 10/27/2016
2017-03-22 Item H2 55 of 113
v y Date of Inspection:
f
II■■ S Pacific Pines Unit Inventor 10i27i201e
UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
E 203 1710 S El Camino Real E 2\2 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE CERAMIC FAIR good condition,grout stained
ENTRY DOOR Fi erg ass FAIR woo 6 pane
ENTRY DOOR HARDWARE Kwickset FAIR
LIVING ROOM CARPET nylon POOR needs new carpet
BLINDS vertical FAIR
WALL HEATER Cadet FAIR 3 ea,1 @LVRM,2 @bedroom
WOOD BURNING FP yes FAIR brick surround, brick hearth
LIGHT FIXTU RES Fan Light FAIR
PAINT Latex POOR ceiling patches throughout,not painted
KITCHEN CABINETS Wood FAIR dirty
SINK Stain ess stee FAIR
FAUCETS Moen FAIR leaking excessively
COUNTERS Granite FAIR
LIGHT FIXTU RES Forescent FAIR
OUTLETS GFI FAIR
PAINT Latex enamel POOR needs paint throughout
APPLIANCES MICROWAVE HOOD W it Poo FAIR Micro ex au7-7`715o
DISHWASHER GE POOR not working
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR GE POOR
OVEN RANGE GE electric POOR
WASHER DRYER GE electric POOR missing control dials
BEDROOM TS CARPET nylon Poor
BLINDS vertical FAIR
DOORS wood FAIR 2nd bdrm missing hardware, mirrored closet doors
LIGHT FIXTU RES Fan Lig t FAIR an ig to—master
PAINT latex POOR
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass FAIR at master bath
SHOWER w ENCLOSURE fiberglass FAIR at second bath
VANITY BASIN ceramic FAIR underhung
PLUMBING HARDWARE moen FAIR
CABINET wood FAIR
COUNTERTOP granite FAIR
DOORS woo FAIR
MIRROR vanity FAIR
LIGHT FIXTU RES incandescent FAIR
,BATH HARDWARE moen
NOTES:unit in deteriorated condition,needs paint carpet,kitchen faucet,appliances,heaters
2017-03-22 Item H2 56 of 113
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UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
1510 S El Camino Real B 1\1 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE CERAMIC FAIR good condition
ENTRY DOOR Fi erg ass FAIR woo 6 pane
ENTRY DOOR HARDWARE Kwickset FAIR
LIVING ROOM CARPET nylon GOOD new carpet 2014
BLINDS vertical FAIR
WALL HEATER Cadet FAIR 2 ea,1 @LVRM,1 @bedroom
WOOD BURNING FP yes FAIR brick surround, brick hearth
LIGHT FIXTU RES Fan Light FAIR at fining
PAINT Latex FAIR ceiling repairs, rough patch,needs paint
KITCHEN CABINETS Wood FAIR
SINK Stain ess stee FAIR
FAUCETS Moen FAIR
COUNTERS Granite FAIR
LIGHT FIXTU RES Forescent FAIR
OUTLETS GFI FAIR
PAINT Latex enamel FAIR ceiling repairs, rough patch,needs paint
APPLIANCES MICROWAVE HOOD W irpoo GOOD new 2016
DISHWASHER Whirlpool FAIR
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR GE electric POOR cycles continuously
OVEN RANGE Hot Point FAIR older model
WASHER DRYER GE electric FAIR older model, near end EUL
BEDROOM TS CARPET nylon GOOD new carpet 2014
BLINDS vertical FAIR
DOORS wood FAIR 2 panel painted masonite
LIGHT FIXTU RES Fan Lig t FAIR an fig tatmaster
PAINT patches at window FAIR needs paint at patches
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass FAIR fiberglass tub sower
SHOWER/TUB ENCLOSURE
VANITY BASIN ceramic FAIR underhung
PLUMBING HARDWARE moen FAIR
CABINET wood FAIR
COUNTERTOP granite FAIR
DOORS woo FAIR
MIRROR vanity FAIR
LIGHT FIXTU RES incandescent FAIR
IBATH HARDWARE moen
NOTES:unit good condition,tenant resided here 14 years,needs ceiling painted throughout at leak repairs,kitchen ceiling should be changed to florescent
2017-03-22 Item H2 58 of 113
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UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
1510 S El Camino Real B 1\1 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE CERAMIC FAIR good condition
ENTRY DOOR Fi erg ass FAIR woo 6 pane
ENTRY DOOR HARDWARE Kwickset FAIR loose,need repair
LIVING ROOM CARPET nylon GOOD new carpet
BLINDS vertical FAIR
WALL HEATER Cadet FAIR 2 ea,1 @LVRM,1 @bedroom
WOOD BURNING FP yes FAIR brick surround, brick hearth
LIGHT FIXTU RES Fan Light FAIR
PAINT Latex FAIR
KITCHEN CABINETS Wood FAIR
SINK Stain ess stee FAIR
FAUCETS Moen FAIR
COUNTERS Granite FAIR
LIGHT FIXTU RES Forescent FAIR
OUTLETS GFI FAIR
PAINT Latex enamel FAIR
APPLIANCES MICROWAVE HOOD W it Poo FAIR mg.2011
DISHWASHER GE FAIR original
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR GE FAIR original
OVEN RANGE GE electric FAIR original
WASHER DRYER GE electric FAIR
BEDROOM TS CARPET nylon GOOD new carpet
BLINDS vertical FAIR
DOORS wood FAIR 2 panel painted masonite
LIGHT FIXTU RES Fan Lig t FAIR an ig tatmaster
PAINT patches at window FAIR
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass FAIR fiberglass tub sower
SHOWER/TUB ENCLOSURE
VANITY BASIN ceramic FAIR underhung
PLUMBING HARDWARE moen FAIR
CABINET wood FAIR
COUNTERTOP granite FAIR
DOORS woo FAIR
MIRROR vanity FAIR
LIGHT FIXTU RES incandescent FAIR
,BATH HARDWARE moen
NOTES:super clean unit
2017-03-22 Item H2 60 of 113
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2017-03-22 Item H2 61 of 113
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UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
1520 S El Camino Real A 2\2 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE CERAMIC FAIR good condition
ENTRY DOOR Fi erg ass FAIR woo 6 pane
ENTRY DOOR HARDWARE Kwickset FAIR
LIVING ROOM CARPET nylon GOOD new 2014
BLINDS vertical FAIR
WALL HEATER Cadet FAIR 3 ea,1 @LVRM,2 @bedroom
WOOD BURNING FP yes FAIR brick surround, brick hearth
LIGHT FIXTU RES Fan Light FAIR at fining
PAINT Latex FAIR
KITCHEN CABINETS Wood FAIR
SINK Stain ess stee FAIR
FAUCETS Moen FAIR
COUNTERS Granite FAIR
LIGHT FIXTURES incan escent FAIR track light
OUTLETS GFI FAIR
PAINT Latex enamel FAIR
APPLIANCES MICROWAVE HOOD W it poo GOOD mg.2014
DISHWASHER Hotpoint FAIR
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR Frigi afire FAIR mfg.2014
OVEN RANGE GE electric FAIR older model
WASHER DRYER GE electric POOR curtain at door,old,knobs missing
BEDROOM TS CARPET nylon GOOD new 2014
BLINDS horizontal FAIR
DOORS wood FAIR mirrored at bedroom closets
LIGHT FIXTURES Fan Lig t FAIR an fig tat master
PAINT latex FAIR
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass FAIR fiberglass tub shower,s ower doors missing
SHOWER w/ENCLOSURE fiberglass FAIR
VANITY BASIN ceramic FAIR underhung
PLUMBING HARDWARE moen FAIR
CABINET wood FAIR
COUNTERTOP granite FAIR
DOORS woo FAIR
MIRROR vanity FAIR
LIGHT FIXTU RES incandescent FAIR
,BATH HARDWARE moen
NOTES:unit was flooded in 2014
2017-03-22 Item H2 62 of 113
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2017-03-22 Item H2 63 of 113
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UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
1520 S El Camino Real A 2\2 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE Ede MIC FAIR good condition
ENTRY DOOR rg ass FAIR woo 6 pane
ENTRY DOOR HARDWARE kset FAIR
LIVING ROOM CARPET n POOR frayed
BLINDS vertical FAIR
WALL HEATER et FAIR 3 ea,1 @LVRM,2 @bedroom
WOOD BURNING FP FAIR brick surround, brick hearth
LIGHT FIXTU RES Lig t FAIR at fining
PAINT x FAIR
KITCHEN CABINETS d FAIR
SINK n ess stee FAIR
FAUCETS n FAIR
COUNTERS ite FAIR
LIGHT FIXTU RES escent FAIR
OUTLETS FAIR
PAINT x enamel FAIR repaint necessary
APPLIANCES MICROWAVE HOOD star FAIR Micro ex aust com o
DISHWASHER FAIR original
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR Electrolux FAIR m g.2009
OVEN RANGE GE electric FAIR original
WASHER DRYER GE electric FAIR original-cabinet door atW Dcloset
BEDROOM TS CARPET nylon FAIR
BLINDS horizontal FAIR
DOORS wood FAIR mirrored at closets
LIGHT FIXTURES Fan Lig t FAIR an fig t at master
PAINT Latex FAIR
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass FAIR fiberglass tub shower,s ower doors missing
SHOWER w/ENCLOSURE fiberglass FAIR shower w/surround
VANITY BASIN ceramic FAIR underhung
PLUMBING HARDWARE moen FAIR
CABINET wood FAIR
COUNTERTOP granite FAIR
DOORS woo FAIR
MIRROR vanity FAIR
LIGHT FIXTU RES incandescent FAIR
,BATH HARDWARE moen
NOTES:
2017-03-22 Item H2 64 of 113
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e
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s
ML
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w P� Date of Inspection:
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UNIT ADDRESS BUILDING BEDROOMS/BATHS STATUS
1520 S El Camino Real A 2\2 OCCUPIED
AREA ITEM DESCRIPTION CONDITION COMMENTS
ENTRY TILE CERAMIC FAIR good condition
ENTRY DOOR Fi erg ass FAIR woo 6 pane
ENTRY DOOR HARDWARE Kwickset FAIR
LIVING ROOM CARPET nylon GOOD new 2015
BLINDS vertical FAIR
WALL HEATER Cadet FAIR 3 ea,1 @LVRM,2 @bedroom
WOOD BURNING FP yes FAIR brick surround, brick hearth
LIGHT FIXTU RES none N A
PAINT Latex FAIR
KITCHEN CABINETS Wood FAIR
SINK Stain ess stee FAIR
FAUCETS Moen FAIR
COUNTERS Granite FAIR
LIGHT FIXTU RES Forescent FAIR
OUTLETS GFI FAIR
PAINT Latex enamel FAIR repaint necessary
APPLIANCES MICROWAVE HOOD wit poo POOR oor crac a , mg.2005, near en E U L
DISHWASHER GE POOR not working
GARBAGE DISPOSAL Badger FAIR 1/2 HP
REFRIGERATOR GE FAIR
OVEN RANGE Frigidaire Poor older model
WASHER DRYER Whirlpool thin twin FAIR mfg.2011
BEDROOM TS CARPET nylon Poor worn,stained
BLINDS vertical FAIR
DOORS wood FAIR 2 panel painted masonite
LIGHT FIXTU RES Fan Lig t FAIR an ig tatmaster
PAINT patches at window FAIR needs paint at patches
BATHROOM S WATER CLOSET Mansfield FAIR
BATHTUB SHOWER fiberglass FAIR fiberglass tub shower,s ower doors missing
SHOWER w/ENCLOSURE fiberglass FAIR
VANITY BASIN ceramic FAIR underhung
PLUMBING HARDWARE moen FAIR
CABINET wood FAIR
COUNTERTOP granite FAIR
DOORS woo FAIR
MIRROR vanity FAIR poor mirror at master bath
LIGHT FIXTURES incandescent FAIR vanity light fixture missing light globes 2nd bath
,BATH HARDWARE moen
NOTES:
2017-03-22 Item H2 66 of 113
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Attachment 6
October 23, 2013 Encinitas Housing Authority Agenda Report
2017-03-22 Item H2 68 of 113
CITY OF ENCINITAS
CITY COUNCIL
HOUSING AUTHORITY OF THE
CITY OF ENCINITAS
BOARD OF COMMISSIONERS
AGENDA REPORT
Meeting Date: October 23, 2013
TO: Mayor and City Council
Chairperson and Board of Commissioners
VIA: Gus Vina, City Manager/Executive Director
Tim Nash, Director of Finance
FROM: Jeff Murphy, Planning&Building Director
Diane S. Langager,Principal Planner
Kathy Noel,Financial Management Analyst
SUBJECT:
An overview of the affordable housing and community development programs of the City of
Encinitas and Housing Authority of the City of Encinitas and direction for continued funding for
program administration and Housing Authority Payment costs.
BACKGROUND:
The City of Encinitas has a varied approach in providing assistance to lower-income households
in need of affordable housing. These approaches contribute to the creation and sustainment of a
diverse population and housing affordability within the community.
To achieve this diversity and affordability, the City relics on federal, State, and local funds. The
federal assistance is provided through the Community Development Block Grant (CDBG),
HOME investment Partnership (HOME) programs, and the Section 8 Housing Choice Voucher
(HCV) program. The State provides affordability through its density bonus regulations. The
City's Inclusionary Ordinance and Affordable Unit Policy are the two primary forces in creating
and sustaining affordability. A brief summary of these programs are provided below with
additional information provided in Attachment"CC-1".
A. Federal Programs
1. Community Development Block Grunt(CDBG) Program
Since 1990, the City has been a CDBG entitlement jurisdiction, which allows the
City to develop programs and funding priorities that carry out a wide range of
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community development activities directed toward revitalizing neighborhoods,
economic development, and providing improved community facilities and
services. The funds for this program are provided and administered through the
federal Department of Housing and Urban Development(HUD).
Over the last five years, the annual grant to the City has averaged approximately
$375,000, of which 20% can be applied to program administration. The balance
of the grant must be applied to services and improvements that benefit lower-
income persons.
Roughly $1.3M has been allocated to capital improvements over the past five
years (e.g., curbs, gutters, sidewalk improvements). Additionally, over the same
time period, a total of approximately $405,000 has been expended on other
beneficial activities, such as the CDBG Residential Rehabilitation Program that
benefited fifteen lower income household owners with essential repairs and
improvements to their homes.
2. HOME Program
The City has been a member of the San Diego County HOME Consortium since
1994. These grant funds can be used for affordable housing activities for lower-
income households relative to new construction, acquisition and/or rehabilitation,
rental assistance, and homebuyer programs.
The funds are provided and administered by HUD through the County of San
Diego. As a consortium member, the City has received an annual average of
approximately $194,000 over the last five years. Additionally, the City receives
administrative funds as part of the program funding, which over the last five years
has averaged approximately$6,100.
Over the last five years, a total of $1.8M has been expended on HOME eligible
activities, which benefited 112 households through rental assistance and
residential repairs and improvements. HOME funding has also contributed to the
development of the Iris Apartments, where all 20 units are affordable to tenants at
a range of 30— 60% percent or less of area median income. Additionally, HOME
funding contributed to the purchase of four of the City's 16 affordable housing
units at Pacific Pines.
3. Section 8 Housing Choice Voucher(HCV) Program
The Housing Choice Voucher program (HCV) is a Federal grant program for
assisting very low-income families, the elderly, and the disabled to afford decent,
safe, and sanitary housing in the private market. Essentially, the program is
structured where the family pays the difference between the actual rent charged
by the landlord and the amount subsidized (Housing Assistance Payment, or
HAP) by the program. The housing assistance payment (HAP) amount varies
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depending upon the family's income. The City has received Section 8 HCV funds
through its Housing Authority since 1995.
While HUD has awarded 136 rental assistance vouchers to the City Housing
Authority, for several years, they have not fully funded the maximum allocation
(136 vouchers). Currently, 113 vouchers are leased.
Over the last five years, roughly $4.7M has been expended on rental assistance,
which is an annual average of about $948,000.
B. State Programs
Currently, the only State program is the Density Bonus Law, which requires a local
jurisdiction to grant a density increase if requested by the developer. The requested
density increase is to provide affordable housing within the proposed development. The
number of required affordable units varies depending on the number of incentives or
concessions requested and the affordability range provided.
Typically, the affordable units are restricted to households at or less than 50 percent to 80
percent of area median income and the restricted affordability period is 30 years.
Currently, 43 units have been created from this program and 26 constructed. The
developer can choose to rent or sale the affordable units.
C. Local Programs
1. Inclusionary Ordinance
The City's Inclusionary Ordinance requires developers to reserve one affordable
unit at 50 percent of area median income (for a minimum of 55 years) for every
ten lots in a proposed development. The ordinance provides an option for the
developer to pay a fee in lieu of constructing the affordable unit.
Currently, the City Council considers a developer's request to pay a fee on a case-
by-case basis, since a standard in-lieu fee has not been formally established. If
the developer constructs the affordable unit, the affordable unit can be rented or
sold. To date, 33 units have been created under this program, of which, 23 units
are rented, four sold, and six will or have paid an in-lieu fee. Over the past five
years, the City has collected approximately $781,000 in in-lieu fees. During this
same five year period, approximately $155,000 of these in-lieu fees were utilized
as part of the development of the Iris Apartments. In-lieu fees were also
previously used towards the purchase and rehabilitation of the Boathouses.
2. Affordable Housing Fund Program
The Affordable Housing Fund Program provides funding for lower income rental
housing developments (construction, acquisition and rehabilitation). The majority
of the revenue for this program is derived from the inclusionary in-lieu fees paid
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2017-03-22 Item H2 71 of 113
by developers. The qualifying households for developments resulting from this
fund must be at or below 50 to 80 percent of the area median income and the
restricted affordability period is 55 years.
This program allowed the City (through the City Housing Authority) to purchase
16 units at Pacific Pines Condominiums. All units are affordable to tenants at 80
percent or less of area median income. The rent collected covers management
and maintenance costs of the units. Any remaining revenue is held in reserve
which can be utilized for future affordable housing efforts. To date, the Pacific
Pines has a total of roughly$385,000 in reserves.
ANALYSIS:
A. Funding Allocation Overview
Funding for the CDBG, HOME and Section 8 programs are subject to annual
Congressional appropriations. The CDBG and HOME programs are funded on the City's
fiscal year, while the Section 8 program is funded on a calendar year. Due to Congress
and the President's desire to reduce the federal deficit, the funding for domestic
programs, such as the CDBG, HOME, and Section 8 programs have been reduced and
most likely will be subject to further reductions in the future. As funding is reduced for
these programs, the General Fund has been depended upon more and more for support of
the administrative costs to run the program.
In early 2000, these programs were well funded and were able to cover both the City's
administrative and program costs. However, over recent years, all of the federal
programs have experienced significant declines in program funding allocations. In fact,
over the past five years, there has been an overall funding reduction for the programs
(CDBG 36%, HOME 52%, Section 8 HAP 18%) which directly or indirectly affects the
funding for program costs.
While the City continues to receive fewer funds to cover both program and administrative
expenses, the associated costs and staff resources needed to continue program oversight
and management including quality customer service to program recipients remains the
same,if not more.
Staffing for the CDBG, HOME, Section 8, and other City housing and community
development programs and activities are budgeted at 2.4 full-time equivalent (FTE) staff.
The staff positions are: (1.0 FTE) Housing Administrator, (1.0 FTE) Program
Coordinator, and (0.40 FTE) Program Assistant. Additionally, over the last four years, a
(0.50 FTE) Planning/Housing Management Intern, who primarily performs housing and
community development activities, has been utilized. The Housing Administrator
recently retired and the Department is holding off tilling that vacancy pending the actions
taken by the Council relative to this item.
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B. Program Administrative Cost Shortfall
The Federal housing programs discussed in the Background Section of this report limit
the amount of funding that can be applied to a jurisdiction's actual administrative costs
(i.e., program oversight and management). The administrative funding varies depending
on the program; the funds are allocated and available on an annual basis.
The following charts summarize the administrative costs required to manage the various
programs and the current revenue shortfall. This shortfall is not unique to the current
fiscal year; a shortfall was realized in the past two fiscal years. There was a push by the
Federal Government to spend program reserves; therefore, the Department opted to use
these reserves to cover program deficits as opposed to utilizing City General Funds. The
administrative reserves in the Section 8 HCV program were depleted effective this fiscal
year. In order to continue the program oversight and management at its current level of
service, additional funds are required to cover the costs for this fiscal year(13/14).
Table A and B below summarize the administrative costs required to manage the various
programs and the current revenue shortfall.
TABLE A
SHORTFALL AFTER GRANT FUNDUNC APPLIED
Grant Funding Actual
Housing for t
Program Costs Costs
CDBG =$61,000 =$71,000 < =$10,000 >
HOME =$4,000 =$10,000 < =$6,000 >
Section 8 =$94,000 4159,000 < =$65,000 >
Local Programs $7,0001 =$57,000 < =$50,000 >
'Revenues from Pac Pines allocated io die Affordable Housing Fond for aduun costs.
TABLE B
SHORTFALL AFTER CURRENP GENERAL FUND ALLOCATION)
Housing Delta from General Fund Outstanding
Program t Allocation Balance
CDBG < =$10,000 > =$10,000 $0
HOME < =$6,000 > =$6,000 $0
Section 8 < =$65,000 > =$33,000 < =$32,000 >
Local Programs < =$50,000 > =$50,000 $0
Tlne General Fund allocation was anticipated with die annual FY2013/14 budget.
C. Section 8 HAP Revenue Shortfall
The section above discussed the shortfall in program administration; this section
addresses the program funding shortfall relative to the HAP of the Section 8 HCV
program.
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Over time, HUD has moved from fully funding a housing authority's voucher allocation
to a budget-based allocation. That is to say, HUD provides funding based on the
previous year's expenditure with a small annual inflation adjustment factor.
Unfortunately, this funding methodology tends to create a downward spiral of the
available funds for maintaining level voucher utilization. Over the last five years as HAP
funding has decreased, the number of vouchers being funded has decreased from 132 to
113. There are many variables in attempting to sustain the highest voucher funding, such
as local fair market rents, local rent levels, quantity and availability of affordable rental
units, participant income fluctuations, landlord participation, and rent subsidy and
occupancy standards all of which can require HAP to be expended. It is also important to
keep in mind that unknown landlord and tenant events can occur during the program year
that further impact expenditures such as rent increases and tenant income reductions, both
requiring more HAP to be expended from the program.
The sustainment of the current Section 8 program level is the result of using HAP
reserves to address the funding gap. However, it is anticipated that the HAP reserve will
be exhausted by February 2014.
Table 3 below summarizes the program shortfall. These are estimated numbers given the
current number of vouchers, rent levels, and tenant incomes, which can change month to
month.
TABLE C
SECTION 8 PROGRAM SHORTFALL
Program Housing i
Program Costs Funding Balance
Section 8 = $931,000 = $898,000 < =$33,000 >
D. Short and Lonm-germ Solutions
As previously mentioned, the City's Pacific Pines Fund currently has a reserve of
approximately $385,000. Staff proposes to use this funding to cover the need to address
the current shortfall for this fiscal year in program funding for both administrative and
HAP costs. This is a short-term solution to address an immediate need.
With Council direction, staff also proposes to work with the City Finance Department in
the next months to find ongoing program administration and HAP funding solutions and
to present those solutions to the Council as part of the FY2014/15 budget process,
assuming that the Council wishes to continue the various housing programs at their
current levels.
FISCAL IMPACTS:
A transfer from the Pacific Pines Fund to both the Section 8 administrative and HAP accounts
will reduce the reserve in that program; however, this transfer will enable the programs to be
staffed and serviced throughout the end of the 2013/2014 fiscal year.
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RECOMMENDATION:
A. Staff recommends that the Housing Authority of the City of Encinitas Board of
Commissioners take the following actions:
1. Affirm that the City's affordable housing and community development programs
maintain current staffing and service levels; and,
2. Direct staff to find efficiencies in the process in order to minimize administrative
and HAP program costs without sacrificing services.
B. Staff recommends the City Council take the following actions:
1. Transfer funding from the Pacific Pines Affordable Housing Fund Program reserves
to cover both current fiscal year administrative and HAP costs associated with the
City's affordable housing and community development programs; and,
2. Direct the City Manager, Finance Director and Planning & Building Director to fund
the ongoing program administration and HAP costs that are not covered under
Federal grants and further address the issue and present solutions to the Council as
part of the FY2014/15 budget process.
ATTACHMENTS:
Attachment A—Summary Program Sheets
Attachment B —Affordable Housing Summary
Attachment C—Power Point Presentation
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ATTACHMENT A
SUMMARY PROGRAM SHEETS
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Community Development Block Grant Program
Purpose: The Community Development Block Grant (CDBG) Program is a federal housing and
community development program administered by the Department of Housing and Urban
Development (HUD). The annual grant is provided to eligible local and state governments to
ensure that needed affordable housing and community development activities are implemented
within communities. Unlike categorical grants for specific purposes, this block grant allows the
local jurisdiction flexibility in selecting and funding eligible activities under the program
regulations. While there are many eligible activities, an activity must meet a national objective,
which the most often objective is to provide assistance to a lower income household or lower
income area. The local jurisdiction determines the community needs, its goals, priorities, and
activities for the use of CDBG funds through a five-year plan (the Consolidated Plan). During
the five-year period, annual Action Plans implement those identified goals, priorities and
activities. The City has been a CDBG entitlement jurisdiction since 1990.
Benefits:
- Eligible activities are: public services, acquisition, rehabilitation, facility improvements,
and infrastructure projects.
- Over five years, the annual grant has averaged approximately $375,000 (current year
approximately$306,000).
- 20 percent of the annual funds can be used for program administration ... over last five
years has averaged approximately$75,000 (current year approximately$61,000)
- Over last five years, an approximate 36 percent funding reduction
- Over the last five years, the average annual assisted has been 3,645 persons
- Over the last five years, a total of approximately $1,300,000 has been expended on
capital improvement activities, such as curb, gutter and sidewalks along K Street, Melba
Road, and Balour Drive.
Administrative Cost: Program staffing: .70 FTE (Housing Administrator-45%/Housing Intern
-25% - Based on a full-time Intern position.)
Fiscal Year 2009 2010 2011 2012 2013 2014
Grant Fund* $396,456 $401,614 $434,190 $363,571 $276,701 $305,694
Admin. Revenue** $79,291 $80,322 $86,838 $72,714 $55,340 $61,139
Admin. Cost $62,787 $66,292 $68,454 $69,187 $66,683 $69,615
*Dollar amount is total grant-includes program&administrative funds.
**Based on 20%of the grant fund.
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HOME Investment Partnership Program
Purpose: The HOME Investment Partnership (HOME) Program is a federal housing program
administered by the Department of Housing and Urban Development (HUD). The annual grant
is provided to eligible local and state governments for the purpose of affordable housing
assistance to lower income households. The four basic affordable housing eligible activities are:
new construction; acquisition and/or rehabilitation; homeownership; and, rental assistance.
Since 1994, the City has been a member of the San Diego County HOME Consortium, which is
comprised of the County and six cities. The County is the entitlement jurisdiction lead and
distributes funding to the member jurisdictions based on an agreed formula.
Benefits:
- City has provided assistance to new construction, acquisition, rehabilitation,
homeownership, and rental assistance.
- Over five years, the annual grant has averaged approximately $194,000 (current year
approximately$113,000).
- In addition to the annual activity funds, additional program administration revenue is
provided ... over last five years has averaged approximately $6,000 (current year
approximately $3,600)
- Over last five years, an approximate 52 percent funding reduction
- Over the last five years, the total assisted has been 112 persons
- Over the last five years, a total of approximately $1,750,000 has been expended on new
construction (Iris Apartments), rehabilitation (Residential Rehabilitation Program, which
provides grants/loans for lower income homeowners), and rental assistance (Tenant-
Based Rental Assistance Program, which provides rental assistance payments to lower
income households).
Administrative Cost: Program staffing: .25 FTE (Housing Administrator— 10%/Housing Intern
— 15% - Based on a full-time Intern position.)
Fiscal Year 2009 2010 2011 2012 2013 2014
Grant Fund $199,356 $230,294 $227,944 $200,707 $111,318 $112,997
Admin. Revenue* $6,398 $7,164 $7,088 $6,241 $3,573 $3,626
Admin. Cost $17,292 $18,554 $19,168 $18,686 $18,128 $19,376
*Flat amount in addition to program grant.
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Section 8 Housing Choice Voucher Program
Purpose: The Section 8 Housing Choice Voucher (Section 8) Program is federal rental
assistance program administered by the Department of Housing and Urban Development(HUD).
The annual grant is provided to qualifying housing authorities that have been allocated vouchers
from HUD for the purpose of providing a rental housing assistance payment (HAP)to very low
income household participants. The Section 8 participant pays approximately 30—40 percent of
their income toward the rent and the housing authority pays the difference to participating
landlords. Since 1995, the City, through its Housing Authority, has received Section 8 program
funds.
Benefits:
- Over five years, the annual HAP grant has averaged approximately $950,000 (current
year approximately $900,000). Over last five years, an approximate 18 percent HAP
funding reduction. Current program level requires use of additional revenue from
Section 8 reserves.
- In addition to the HAP grant funds, the Housing Authority receives a program
administrative fee for every voucher (i.e., unit) under lease at the first of each month.
The administrative fee over last five years has averaged approximately $125,000 (current
year estimate is approximately $89,000). As the program size is reduced, the
administrative fee revenue is reduced. Currently, administrative costs are supported with
revenue from Section 8 reserves. Additional revenue fees for administering another
housing authority participants (i.e., port-ins) contributes to administrative revenue.
- Over the last five years, the annual average assisted has been 123 households (currently
109 households assisted).
- Over the last five years, a total of approximately $4,750,000 has been expended on rental
assistance.
- Program staffing: 1.55 FTE (Housing Administrator— 15%/Program Coordinator—
100%/ Program Assistant—40%)
Fiscal Year 2009 2010 2011 2012 2013 2014
Grant Fund $1,171,950 $1,031,204 $966,101 $959,718 $959,718 $898,629
Admin. Revenue $123,433* $129,176* $134,700* $119,700* $119,700* $94,234*
Admin. Cost $129,519 $134,464 $139,353 $147,102 $142,302 $143,115
*Includes Port-in Administrative Revenue—FY2014 estimated at$6,274
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Non-Federal Housing Programs and Activities
Purpose: In addition to federal housing programs, staff administers a variety of affordable
housing programs and activities. These programs and activities are: the lnclusionary Housing
Program, the Density Bonus Program, the Housing Authority Affordable Housing Program, the
Affordable Housing Fund Program, the Affordable Dwelling Unit Program, the Affordable
Homebuyer Program, the Affordable Housing Monitoring Program, and Customer Service
activities. All, except the Housing Authority Affordable Housing Program do not have non-
general fund revenue to offset the administrative cost.
Benefits:
- Inclusionary Housing Program has created 94 affordable units for rental or
homeownership.
- Density Bonus Program has created 26 affordable units for rental or homeownership.
- Housing Authority Affordable Housing Program has acquired and manages 16 affordable
units for rental. The program generates positive annual cash flow and currently has
approximately $385,000 in reserves.
- Affordable Housing Fund Program has created 93 affordable units for rental.
- Affordable Dwelling Unit Program has legalized 35 affordable units for rental.
- The Affordable Homeownership Program assisted 18 homebuyers purchase an affordable
home.
- Affordable Housing Program annually monitors 285 affordable units to ensure
compliance.
- Customer Service activities include counter and phone assistance for individuals seeking
affordable housing, developer assistance, lender related activities, fair housing assistance,
etc.
Administrative Cost: Program staffing: .40 FTE (Housing Administrator—30%/Housing Intern
— 10% - Based on a full-time Intern position.)
Fiscal Year 2009 2010 2011 2012 2013 2014
Grant Fund $0 $0 $0 $0 $0 $0
Admin. Revenue* $4,437 $6,241 $6,714 $6,435 $6,435 $6,586
Admin. Cost $39,506 $41,496 $42,842 $43,787 $42,117 $43,653
*Revenue from Housing Authority Affordable Housing Program—Pacific Pines
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ATTACHMENT B
AFFORDABLE HOUSING SUMMARY
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The City of Encinitas
Affordable Housing Summary
Density Bonus
In the stale of California, Density Bonus law requires that subdivisions requesting certain density increases provide
affordable housing units for rent or sale to lower-income households. Density bonus units are typically restricted at
50%-80%of area median income and are restricted for a period of 30 years. These units are monitored on an
annual basis.
The following table shows the number of DcnsiLy Bonus units in each of the live communities.
Leucadia Cardiff Old Encinitas New Encinitas Olivenhain TOTAL
25 2 3 12 1 43
The following table shows the status of the past and currently planned Density Bonus projects.
'Transferred to Iris Built and Sold Built and Rented Planned—not built 'TOTAL
10 1 13 17 43
Number of built Densitv Bonus units that are monitored 26
Inclusionary
The City's Inclusionary Ordinance requires that subdivisions of ten or more units reserve at least ten percent of the
housing units as affordable. Inclusionary units may be rented,sold to a lower-income household or an in-lieu fee
may be paid.Typically,inclusionary units are restricted at 50%of Area Median Income and remain affordable for a
period of 55 years. These units are monitored on an annual basis.
The following table shows the number of inclusionary units in each of the five communities.
Old Encinitas New Encinitas OHvenhain TOTAL
13 1 6 12 1 33
The following table shows the status of past and currently planned Inclusionary projects. Some of the planned units
may not be built,as the developer has the choice to pay an in-lieu fee.
Transferred to Built and Sold Built and Rented Planned—not In-Lieu Fee TOTAL
Iris built Paid
10 4 13 3 3 33
*ss Number of built inclusionary units that are monitored 27
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Inclusionary Accessory Unit
The Inclusionary Accessory unit policy allowed affordable accessory units to satisfy the inclusionary requirement
for subdivisions of ten or more.The accessory unit is affordable only if the owner of the property selects to rent to a
lower-income household.Typically,inclusionary accessory units are restricted at 50%of Area Median Income for a
period of 55 years.The City does not currently allow accessory units to satisfy the inclusionary requirement.These
units are monitored on an annual basis.
The following table shows the number of inclusionary accessory units in each of the live communities.
Leucadia Cardiff Old Encinitas New Encinitas Olivenhain TOTAL
31 4 22 3 7 67
Homebuyer Assistance Program
These units were made available through the City's Inclusionary Ordinance and purchased by lower-income first-
time homebuyer households.Federal funds were also leveraged to provide `gap' funding assistance to some of the
homebuyers.A deed of trust and affordable housing agreement was recorded for each unit.Currently,the
agreements allow the homeowner to rent the home to another low-income family.Typically,these units are
affordable for a period of 55 years and are monitored on an annual basis.
The following table shows the number of homebuyer units in each of the five communities.
Cardiff W Old Encinitas New Encinitas Olivenhain TOTAL
4 0 14 (l (l 18
Affordable Housing Program
Developments funded through the City of Encinitas and units are typically restricted at 50 or 80 percent of Area
Median Income for a period of 55 years. These units are monitored on an annual basis.
Leucadia Cardiff Old Encinitas New Encinitas Olivenhain '1'O'1'AL
1 4 44 44 0 93
Housing Authority Owned
The Housing Authority owns 16 condominiums(one-and two-bedroom)at Pacific Pines in New Encinitas.One of
the primary motivations to purchase the units was to provide Section 8 Housing Choice Voucher tenants an option
for an affordable rental unit.As a result,many of the units are currently occupied by Section 8 tenants,and four of
the units are currently restricted by the HOME program. These units are restricted in perpetuity. Currently,the
Housing Authority utilizes the property management services of Hunter Properties to manage all 16 of the units.
These units are monitored on an annual basis.
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Affordable Dwelling Unit
Homeowners with existing illegal units are given an opportunity to bring the unit to conformity with building code
requirements and restrict the unit to lower-income households.Affordable Dwelling Units are typically restricted in
perpetuity and are monitored on an annual basis.
The following table shows the number of Affordable Dwelling Units in each of the communities.
Leucadia Cardiff Old Encinitas New Encinitas Olivenhain FOTAL
8 8 19 0 0 35
Illegal Dwelling Unit
Homeowners with existing illegal units are given an opportunity to bring the unit to conformity with building code
requirements and restrict the unit to lower-income households.This program is now the Affordable Dwelling Unit
program.These units are typically restricted in perpetuity and are monitored on an annual basis.
The following table shows the number of Illegal Dwelling units in each of the five communities.
eucadia = Old Encinita ew Encinitas Wlivenhain TOTAL
1 0 2 0 0 3
HOME Program
The HOME Investment Partnership is a federally funded program for the creation of new affordable housing, first-
time homebuyer,acquisition and rehabilitation,tenant-based rental assistance,and residential rehabilitation.The
City of Encinitas receives HOME funds through its participation in the HOME Consortium,which is administered
by the County of San Diego. The City typically receives about$100,000 in HOME funds annually. The City
currently uses the HOME funds for a Tenant-based Rental Assistance program, Residential Rehabilitation Program,
and program administration. When opportunities arise, HOME funds have been used to fund new construction of
affordable units. In such cases, HOME funds are leveraged with other funding sources and/or Policy requirements,
such as Density Bonus and Inclusionary.Therelbre, HOME units are not stand-alone units,meaning;they are not in
addition to the affordahlc units already discussed in previous sections.
For new construction,the HOME program has a unique set of requirements(income and rent restrictions, for
example) which typically remain in effckA for 20 years.These units are monitored on an annual basis.
The following table shows the units restricted by the HOME program in each of the live communities.
Leucadia Cardiff Old Encinitas New Encinitas Olivenhain 'TOTAL
11 0 2 25 0 38
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N TOTAL OF ALL AFFORDABLE HOUSING UNITS
MEN 0
Leucadia Cardiff Old Encinitas New Encinitas Olivenhain TOTAL
v Policy
WDensity Bonus 13 3 10 0 26
Inclusionary 10 5 12 27
N
N Inclusionary Accessory 31 4 22 3 7 67
Hornebuyer 4 14 18
Affordable Housing 1 4 44 44 93
Housing Authority Owned 16 16
ADU 8 8 19 35
IDU 1 2 3
TOTAL 68 16 125 69 7 285
TOTAL OF ALL AFFORDABLE HOUSING UNITS INCLUDING
PLANNED - NOT BUILT
Leucadia Cardiff Old Encinitas New Encinitas Olivenhain TOTAL
Policy
Density Bonus 25 2 3 12 1 43
Inclusionary 12 5 12 1 30
Inclusionary Accessory 31 4 22 3 7 67
Homebuyer 4 14 18
Affordable Housing 1 4 44 44 93
Housing Authority Owned 16 16
= ADU 8 8 19 35
N IDU 1 2 3
TOTAL 82 18 125 71 9 305
00
W
O
W
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o ATTACHMENT C
V
(4 POWER POINT PRESENTATION
N
N
N
ao
as
0
w
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Presentation Overview
• Overview of the Programs
• Funding Issues and Opportunities
• Recommendations
•
Fir w
rr log
3
10/23/2013 Item #1 Page 21
2017-03-22 Item H2 89 of 113
Program Overview
• Community Development Block Grant
✓ Grant program to revitalize
neighborhoods
✓ Participant since 1990
✓ Roughly $1 .3M spent on capital
improvements and low income
housing rehab/repair
Program Overview
• HOME Program
✓ Unit acquisition , construction ,
rental assistance, res rehab/repair
✓ Participant since 1994
✓ $1 .8M spent over past 5 years
✓ 112 households benefited
Program Overview
• Section 8
✓ Rental assistance program for low=
income families, elderly and
disabled
✓ Participant since 1995
✓ $4.7M over the past 5 years
✓ Currently, 110 vouchers
(participants)
Program Overview
• Density Bonus Law (State)
✓ Increase a project's density if
certain units are set aside as
affordable
✓ Restricted for 30 years
✓ To date, 43 units approved ; 26
constructed
Program Overview
�
• Inclusionary Ordinance
✓ Requires one affordable unit for
every ten lots
✓ Allows in-lieu fee
✓ $781 k over the past 5 years ; used
to develop Iris Apartments
Program Overview
• Affordable Housing Fund Program
✓ Construction , acquisition and
rehabilitation
✓ Comes from in-lieu fees from
Inclusionary Housing Requirement
✓ Purchased 16 units in Pacific Pines
✓ Affordable rents to tenants at 80%
or less of AMI
Program Overview
• Current Staffing Levels
✓ 1 .0 FTE - Housing Administrator
✓ 1 .0 FTE - Program Coordinator
✓ .4 FTE — Program Assistant
✓ 0.5 FTE — Adv. Planning Intern
PF
RrM
j 7�f li
11
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2017-03-22 Item H2 97 of 113
Admin . Funding
• Portion of grant funding can apply
towards ad m i n costs
• Funding has steadily decreased
over past 5 years
• Anticipate that funding will
continue to decrease in
foreseeable future
A
•
CD$G
•
$61 .000
$71.000
c -$ 10.000
HOME $4.000 $ 10.000 < -$6.000
Section S -$94.000 -$ 159.000 < -$65.000 >
Local Programs -$7.0001 .-$57.000 < -$50.000 >
'Revenues from Pac Pines allocated to the Affordable Housing Fund for admin costs_
13
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2017-03-22 Item H2 99 of 113
A
•
•
Dilincatin
14
10/23/2013 Item #1 Page 32
2017-03-22 Item H2 100 of 113
Program Funding
• Housing Assistance Payment
( HAP) program is underfunded
• Many variables to sustaining
highest voucher funding
• Change in how program is funded
• Push from HUD to use up reserves
Jrnnrp
•
•
16
10/23/2013 Item #1 Page 34
2017-03-22 Item H2 102 of 113
Funding Solution
• Currently have 4385k in reserves
( Pacific Pines)
• Funding is not allocated — must be
used for affordable housing
effforts
• Can be applied to cover current
deficit (short-term solution)
Q'e
• 11� 11� - 1
•
10/23/2013 Item #1 Page 36
2017-03-22 Item H2 104 of 113
Recommendation
• Housing Authority Board
✓ Confirm that the City should maintain
existing programs at current staffing
and service levels
✓ Direct staff to find efficiencies that
help minimize and reduce
administrative costs
Recommendation
• City Council
✓ Transfer funding from the Pacific
Pines reserves to cover current year
shortfalls
✓ Direct City Manager to ensure
programs are adequately funded as
part of the budget process.
2017-03-22 Item H2 107 of 113
Claudia Bingham
From: Diane Langager
Sent: Wednesday, October 23, 2013 3:32 PM
To: Kathy Hollywood; Claudia Bingham; Brandi Lewis
Cc: Stephanie Kaufmann;Jeff Murphy, Gus Vina; lace Schwarm; Glenn Sabine
Subject: Agenda Report Addendum for tonight's Special Meeting Item #1
Attachments: CC 10232013 Revised Recommendation.doc
Please find an Agenda Report Addendum for Item 1 of the joint Council/Housing Authority meeting. Please distribute to
Council, public and others as appropriate. I will get a copy to the Housing Authority tenant commissioners.
Thanks.
Diane S. Langager
Principal Planner
City of Encinitas
505 S. Vulcan Avenue
Encinitas, CA 92024
P 760 633-2714
F 760 633-2818
dlanaaa(a),encinitasca.aov
f>
1
2017-03-22 Item H2 108 of 113
Agenda Report Addendum
Special City Council & Housing Authority Joint Meeting
October 23, 2013
Agenda Item #1
Based on further consideration and consultation with the City Attorney, there is a potential
conflict of interest related to actions involving the Section 8 program and the two appointed
Housing Authority Commissioners. As such, those Commissioners will need to recuse
themselves from the discussion, deliberation and vote related to the Section 8 program.
Therefore, the recommendation section of the staff report has been revised as follows:
A. Staff recommends that the full Housing Authority of the City of Encinitas Board of
Commissioners take the following actions:
1. Affirm that the City's affordable housing and community development
programs for CDBG, HOME and other local programs maintain current
staffing and service levels; and,
2. Direct staff to find efficiencies in the process in order to minimize
administrative program costs without sacrificing services.
B. Staff recommends that the Housing Authority of the City of Encinitas Board of
Commissioners (Housing Authority Commissioners recused) take the following
actions:
1. Affirm that the City's affordable housing and community development
programs for Section 8 Housing Choice Voucher program maintain current
staffing and service levels; and,
2. Direct staff to find efficiencies in the process in order to minimize
administrative and HAP program costs without sacrificing services, and
3. Transfer funding from the Pacific Pines Affordable Housing Fund Program
reserves to cover both current fiscal year administrative and HAP costs
associated with the City's affordable housing and community development
programs.
C. Staff recommends the City Council take the following actions:
1. Direct the City Manager, Finance Director and Planning & Building Director
to fund the ongoing program administration and HAP costs that are not
covered under Federal grants and further address the issue and present
solutions to the Council as part of the FY2014/15 budget process.
2017-03-22 Item H2 109 of 113
:D
Brandi Lewis
�rom: Diane Langager
Sent: Wednesday, October 23, 2013 3:32 PM
To: Kathy Hollywood; Claudia Bingham; Brandi Lewis
Cc: Stephanie Kaufmann; Jeff Murphy; Gus Vina; lace Schwarm; Glenn Sabine
Subject: Agenda Report Addendum for tonight's Special Meeting Item #1
Attachments: CC 10232013 Revised Recommendation.doc
Please find an Agenda Report Addendum for Item 1 of the joint Council/Housing Authority meeting. Please distribute to
Council, public and others as appropriate. I will get a copy to the Housing Authority tenant commissioners.
Thanks.
Diane S. Langager
Principal Planner
City of Encinitas
505 S. Vulcan Avenue
Encinitas, CA 92024
P 760 633-2714
F 760 633-2818
d lanaag(0)encinitasca.gov
1
2017-03-22 Item H2 110 of 113
Agenda Report Addendum
Special City Council & Housing Authority Joint Meeting
• October 23, 2013
Agenda Item #1
Based on further consideration and consultation with the City Attorney, there is a potential
conflict of interest related to actions involving the Section 8 program and the two appointed
Housing Authority Commissioners. As such, those Commissioners will need to recuse
themselves from the discussion, deliberation and vote related to the Section 8 program.
Therefore, the recommendation section of the staff report has been revised as follows:
A. Staff recommends that the full Housing Authority of the City of Encinitas Board of
Commissioners take the following actions:
1. Affirm that the City's affordable housing and community development
programs for CDBG, HOME and other local programs maintain current
staffing and service levels; and,
2. Direct staff to find efficiencies in the process in order to minimize
administrative program costs without sacrificing services.
B. Staff recommends that the Housing Authority of the City of Encinitas Board of
Commissioners (Housing Authority Commissioners recused) take the following
actions:
1. Affirm that the City's affordable housing and community development
programs for Section 8 Housing Choice Voucher program maintain current
staffing and service levels; and,
2. Direct staff to find efficiencies in the process in order to minimize
administrative and HAP program costs without sacrificing services, and
3. Transfer funding from the Pacific Pines Affordable Housing Fund Program
reserves to cover both current fiscal year administrative and HAP costs
associated with the City's affordable housing and community development
programs.
C. Staff recommends the City Council take the following actions:
1. Direct the City Manager, Finance Director and Planning & Building Director
to fund the ongoing program administration and HAP costs that are not
covered under Federal grants and further address the issue and present
solutions to the Council as part of the FY2014/15 budget process.
•
201 7-03-22 Item H2 III of 113
Brandi Lewis
*rom: Julie Graboi <serjgraboi @hotmail.com>
Sent: Wednesday, October 23, 2013 10:26 AM
To: Council Members; Kathy Hollywood
Subject: Whitley Case, Closed Session Item
Attachments: WhitleyCase.docx
Dear Encinitas Council,
Please accept the attached letter into the record as it pertains to the Whitley case for tonight's closed session.
Thank you,
Julie Graboi
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2017-03-22 Item H2 112 of 113
• Topic: Whitley Case
Dear Mayor Barth, Deputy Mayor Shaffer and Council Members Gaspar, Kranz, and Muir;
I am writing to ask you to end the City's involvement with the Whitley case. I ask that you not pursue an
appeal for a case that the City has already lost. Below, I provide a list of reasons that I ask for you to
consider as to why you should drop this case and take no further action.
1. The decision to sue does not support the City's position to provide low income housing.
Council has unanimously stated that you strongly support affordable housing in Encinitas. I understand
that Mark Whitley had offered to negotiate with the City, so that up to 3 affordable housing units could
have been garnered by the City to be counted for its low-income housing inventory. Instead of
accepting this win/win solution to a complaint and avoiding legal costs charged to taxpayers, the City
decided to sue Mr.Whitley and subsequently lost the case and the units. Shouldn't the actions that you
take as Council members support the philosophies and values that you espouse?
2.This case appears to be treated differently than cases involving former mayors and council
members.
There is a rumor that former mayors and council members either own or have lived in properties with
similar issues of nonconformance to City codes. As a person with no first-hand knowledge of the truth
of these allegations, I am only reporting what I have heard. However, please keep in mind that
perception can become a reality in the minds of voters. If there is a feeling of unfairness and hypocrisy
in the application of rules, voters are not going to forget about it. If you vote to pursue this case, even
after losing, and when it is said that rules are being applied inconsistently, this issue may come back to
bite this Council at a later time. Since it appears that this issue began in 2007, 1 am concerned that our
current council does not have complete nor accurate staff information for a basis to make decisions.
3.The City has already lost. Why put good money after bad?
It seems that the City has already spent hundreds of thousands of dollars in pursuit of a case that
contradicts the stated values and philosophy of the City and of our sitting Council, all of whom support
affordable housing. Please use your leadership and your power of the purse to do something
constructive with funds slated for an appeal. Don't waste more taxpayer dollars on this futile effort.
4. A long-term resident and his family have been emotionally and financially harmed by these actions.
Mark Whitley and his family have lived in Encinitas for over 40 years, and Mr. Whitley has done positive
things for the City like working to preserve the Boat Houses. As an Encinitas citizen myself for over 20
years, I would like to see our City focus on constructive issues and not use our money and staff time to
pursue negative and ultimately failed agendas that harm individual citizens.
Sincerely,
Julie Graboi
2017-03-22 Item H2 113 of 113