Agenda packet — Irwindale City Council, November 13, 2024 (part 3 of 3)

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operational wheelchairs, walkers, crutches, other medical equipment, bicycles, scooters, strollers in good repair, uncontaminated and habitable tents, photographs, identification cards, bank statements, and legal papers.

I. “Public property” includes, but is not limited to, a public park, public park facility, public parking lots, public passageways, public rights-of-way, publicly owned landscaped areas, public parkways, public medians, public greenbelts, other government-owned properties located within the City.

J. “Special event” includes, but is not limited to, programs operated by City departments, youth or school events, marathons or other sporting events, and other scouting activities.

9.68.030 – Unlawful camping.

A. It is unlawful and a public nuisance for any person to camp, occupy camp facilities, or use camp paraphernalia on any public property or any private property.

B. The City Manager may, as provided in § 9.68.040, issue a temporary permit to allow camping on public or private property in connection with a special event.

9.68.040 – Permit for special events.

A. The City Manager, may in his or her discretion, issue a permit to establish, maintain and operate a camp facility in connection with a special event.

B. The City Manager may consult with various departments, the county health officer, and the public prior to issuing any temporary permit.

9.68.050 – Abatement of campsites.

A. The City may remove personal property, camp paraphernalia, camp facilities, and all other property where a person is engaged in unlawful camping in accordance with the following procedures:

1. A written Notice to Vacate shall be posted on each tent or structure in a conspicuous manner at least 48 hours before beginning campsite removal. The Notice to Vacate shall include the following information:
a. Posting date and time;
b. Location;
c. “Vacate by” date and time;

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d. Directions on how to retrieve the collected property and a telephone number for assistance;
e. Date by which collected property must be retrieved from the City before it is discarded; and
f. Removal start and end dates.

2. Removal work shall begin no earlier than the date written on the Notice to Vacate. If removal work does not begin accordingly, a new Notice to Vacate must be reposted before removal operations may begin.

3. Any person who returns to a campsite during abatement shall be allowed to remove their personal property from the site. Any personal property that the individual leaves behind will be deemed abandoned.

4. Time-stamped photographs or videos should be taken before, during, and after removal work has been completed.

5. Personal property that is not a hazardous item shall be time-stamped photographed and inventoried by describing and labeling the items and identifying the campsite location and removal date. Any hazardous item shall be discarded.

6. Collected personal property shall be stored in a secured location for not less than 60 days. Items not retrieved by the owner within 60 days shall be deemed abandoned and may be discarded or recycled.

B. Under exigent circumstances, the City may remove personal property, camp paraphernalia, camp facilities, and all other property where a person is engaged in unlawful camping without a prior written Notice to Vacate.

1. A written notice shall be posted in a conspicuous manner after removal.

The notice must contain the following information:
a. Date and time of removal;
b. Location;
c. Directions on how to retrieve the collected property and a telephone number for assistance; and
d. Date by which collected property must be retrieved from the City before it is discarded.

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3. Time-stamped photographs or videos should be taken before, during, and after removal work has been completed.

4. Personal property that is not a hazardous item shall be time-stamped photographed and inventoried by describing and labeling the items and identifying the campsite location and removal date. Any hazardous item shall be discarded.

5. Collected property shall be stored in a secured location for not less than 60 days. Items not retrieved by the owner within 60 days shall be deemed abandoned and may be discarded or recycled.

9.68.060 – Unlawful storage of personal property.

A. It is unlawful and a public nuisance for any person to store personal property, including camp facilities and camp paraphernalia, on any public property or any private property without the written consent of the owner, except as otherwise provided by resolution or ordinance of the City Council.

B. The City may remove unlawfully stored personal property in violation of this section in accordance with the following procedures:

1. A written Notice of Removal shall be posted on or near the personal property in a conspicuous manner at least 24 hours before beginning removal. The Notice of Removal shall include the following information:
a. Posting date and time;
b. Location;
c. “Remove by” date and time;
d. General description of unlawfully stored personal property; e. Directions on how to retrieve the collected property and a telephone number for assistance; and
f. Date of removal.

2. Removal work shall begin no earlier than the date written on the Notice of Removal. If removal work does not begin accordingly, a new Notice of Removal must be reposted before removal operations may begin.

3. Any person who claims the personal property during the process of removal shall be allowed to remove their personal property from the

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lawfully stored location. Any personal property that the individual leaves behind will be deemed abandoned.

4. Personal property that is not a hazardous item shall be time-stamped photographed and inventoried by describing and labeling the items and identifying the unlawfully stored location and removal date. Any hazardous item shall be discarded.

5. Collected personal property shall be stored in a secured location for not less than 60 days. Items not retrieved by the owner within 60 days shall be deemed abandoned and may be discarded or recycled.

C. Under exigent circumstances, the City may remove unlawfully stored personal property without a Notice of Removal.

1. A written notice shall be posted in a conspicuous manner after removal.

The notice must contain the following information:
a. Date and time of removal;
b. Location;
c. General description of unlawfully stored personal property; and
d. Directions on how to retrieve the collected property and a telephone number for assistance; and
e. Date by which collected property must be retrieved from the City before it is discarded.

2. Personal property that is not a hazardous item shall be time-stamped photographed and inventoried by describing and labeling the items and identifying the unlawfully stored location and removal date. Any hazardous item shall be discarded.

3. Collected personal property shall be stored in a secured location for not less than 60 days. Items not retrieved by the owner within 60 days shall be deemed abandoned and may be discarded or recycled.

9.68.070 – Lawful use of private property.

A. Nothing in this section is intended to prohibit or make unlawful, activities of any owner of private property or other lawful user of private property that are normally associated with and incidental to the lawful and authorized use of private property for residential and/or other purposes.

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B. Nothing in this section is intended to prohibit or make unlawful, activities of a property owner or other lawful user if such activities are expressly authorized by the City’s comprehensive zoning ordinance or other laws, ordinances, and regulations.

9.68.080 – Violations and penalties.

A. Any person in violation of this chapter shall be given a verbal or written warning before an infraction citation is issued. Enforcement personnel shall make good faith effort to contact the person and provide a reasonable opportunity to cure the violation. The warning shall describe the activity constituting a violation of this chapter, the action required to fix the violation, and the date and time by which the violation must be cured in order to avoid subsequent violations and penalties.

B. Any subsequent violation of this chapter shall be an infraction and, upon conviction thereof, shall be punishable by a fine not exceeding $50, notwithstanding section 1.12.020. In the Court’s discretion, alternative penalties, including but not limited to a reasonable amount of community service, may be imposed.

C. Any violation of this chapter which would otherwise be an infraction is a misdemeanor if a person has been convicted of an infraction under this section within 1 year immediately preceding the date of the first violation.

SECTION 3. If any section, subsection, sentence, clause or phrase of this ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional due to the writs of mandate issued by the Court.

SECTION 4. The Mayor shall sign this Ordinance and the City Clerk shall certify to the passage and adoption of this Ordinance, and shall cause the same to be published and posted pursuant to the provisions of law in this regard, and this Ordinance shall take effect 30 days after its final passage.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Irwindale at a regular meeting held on the ___ day of _____________ 2024. __________________________
Albert F. Ambriz, Mayor

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ATTEST:
_____________________________
Laura M. Nieto, MMC
Chief Deputy City Clerk
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES } ss.

CITY OF IRWINDALE }
I, Laura M. Nieto, Chief Deputy City Clerk of the City of Irwindale, California do hereby certify that the foregoing Ordinance No. 790 was introduced for first reading at a regular meeting of the City Council of the City of Irwindale held on the 13th day of November 2024, and was duly adopted at a regular meeting of the City Council of the City of Irwindale held on the ____ day of ______ 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:
_________________________
Laura M. Nieto, MMC
Chief Deputy City Clerk

AFFIDAVIT OF POSTING
I, Laura M. Nieto, Chief Deputy City Clerk, certify that I caused a copy of Ordinance No. 790, adopted by the City Council of the City of Irwindale at its regular meeting held _________________, 2024 to be posted at the City Hall, Library, and Post Office on _________________.
___________________________ Dated:________________
Laura M. Nieto, MMC
Chief Deputy City Clerk

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Item #21.B.

Date: November 13, 2024
To: Honorable Mayor and Members of the City Council
From: Julian A. Miranda, City Manager
Issue: Introduction and First Reading of Ordinance No. 791 to Add Chapter 9.72 of Title 9 to the Irwindale Municipal Code
City Manager's Recommendation:

Direct the City Attorney to read by title only, waive reading of, and introduce Ordinance No. 791 entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF IRWINDALE ADDING CHAPTER 9.72 OF TITLE 9 OF THE IRWINDALE MUNICIPAL CODE TO PROHIBIT ANY UNSANCTIONED GOVERNMENTSPONSORED RELOCATION OF UNHOUSED PERSONS TO THE CITY OF IRWINDALE.” Administrative Action:

Submitted / Prepared by:

Adrian R. Guerra, City Attorney
Approved by:

Julian A. Miranda, City Manager
Background and Analysis:

The City Attorney’s office became aware of a recent incident in the City of Santa Cruz (“Santa Cruz”) where two law enforcement officers from the City of Hanford transported a disabled, unhoused individual (“Person Doe”), with a truck full of their possessions, from the City of Hanford to a homeless shelter parking lot in Santa Cruz. These officers had not received authorization for this drop-off from either the shelter operator or Santa Cruz staff. While Person Doe was ultimately accepted into the shelter, it was discovered that they had no connection to Santa Cruz—Person Doe had never been to Santa Cruz, had no friends or family in the area, and never requested to be transported to the shelter.

In response to this incident, the Santa Cruz City Council introduced and approved an ordinance to prohibit any unsanctioned government-sponsored transportation of unhoused persons into its jurisdiction. See Santa Cruz, Cal., Mun. Code § 9.91. Santa Cruz emphasized the need for these

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regulations by stating there is reason to believe that other jurisdictions may engage in this type of conduct again, especially in light of the recent decision by the Supreme Court of the United States in City of Grants Pass v. Johnson, 144 S. Ct. 2202, 2224 (2024).

In Grants Pass, the U.S. Supreme Court overruled the Ninth Circuit Court of Appeals precedent, finding laws that regulate camping did not violate the Cruel and Unusual Punishments Clause of the Eighth Amendment. Following this decision, Governor Gavin Newsom issued Executive Order N-1-24 which directed the removal of homeless encampments on state properties, encouraging cities and counties to do the same.

Analysis:

While the City has no known incidents similar to that of Santa Cruz, the City Attorney’s office and staff recognize the importance of preempting such unsanctioned relocations. The City has limited services to support unhoused persons and lacks the resources to provide shelter and assistance to any unhoused individual who is dropped off in the City. Further, the practice of transporting and dropping off unhoused persons to another jurisdiction hinders cities and counties from responsibly addressing its own homelessness crisis, including the provision of shelter, affordable housing, and outreach services.

The proposed ordinance addresses these concerns by prohibiting any government-sponsored relocation of unhoused persons into the City’s jurisdiction, subject to limited exceptions. This will aim to ensure and deter nearby jurisdictions responding to the recent decision in Grants Pass and Executive Order N-1-24 from resorting to unproductive conduct (i.e., relocation of unhoused persons) that fail to actually solve homelessness. A violation of this regulation will be a misdemeanor.

The proposed ordinance encourages other government entities to responsibly resolve their homelessness-related issues within their own jurisdiction. The positive impacts of this ordinance include:

1. Preserving the City’s limited homelessness-related resources, including but not limited to shelter and outreach, for the benefit of individuals residing in the City.

2. Encouraging the appropriate government agencies to provide shelter, care, outreach, and other homelessness-related resources to persons experiencing homelessness within their jurisdiction, rather than simply transporting these individuals elsewhere.

3. Preventing government agencies from engaging in cruel and inhumane treatment of unhoused persons.

Fiscal Impact:

Costs associated with the enforcement of and attorney’s fees for the prosecution of the proposed ordinance.

Attachments:

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1. Ordinance No. 791 re Unsanctioned Government-Sponsored Relocation

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ORDINANCE NO. 791

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF IRWINDALE ADDING CHAPTER 9.72 OF TITLE 9 OF THE IRWINDALE MUNICIPAL CODE TO PROHIBIT ANY UNSANCTIONED GOVERNMENTSPONSORED RELOCATION OF UNHOUSED PERSONS TO THE CITY

OF IRWINDALE
WHEREAS, the Irwindale (“City”) has become aware of a recent incident in which a disabled, unhoused individual was transported and dropped off in the City of Santa Cruz by Hanford Police Department officers without any authorization from the City of Santa Cruz or its homeless shelter operators; and
WHEREAS, if cities and counties can simply relocate unhoused persons to another jurisdiction, no jurisdiction would be incentivized to provide shelter, affordable housing, and outreach services critical to solving California’s homelessness crisis; and WHEREAS, incidents similar to the one described above prevent cities and counties from responsibly addressing homelessness; and
WHEREAS, the City does not have the resources available to provide shelter and services to any person experiencing homelessness who is dropped off in the City by law enforcement officers, employees, or agents of another jurisdiction; and WHEREAS, Governor Gavin Newsom’s recent Executive Order N-1-24 directed removal of homeless encampments on state properties which may cause more cities and counties to attempt relocation of its unhoused population; and WHEREAS, the City Council now desires to add provisions to the City’s Municipal Code to preempt any similar incidents to that of the City of Santa Cruz.

THE CITY COUNCIL OF THE CITY OF IRWINDALE DOES ORDAIN AS FOLLOWS:

SECTION 1. That the recitals in this Ordinance are true and correct and are incorporated herein by reference.

SECTION 2. Chapter 9.72 (“Prohibition of Unsanctioned Government-Sponsored Relocation of Unhoused Persons”) of Title 9 (“Public Peace, Morals and Welfare”) of the Irwindale Municipal Code is hereby added and shall now read as follows:

Chapter 9.72 PROHIBITION OF UNSANCTIONED GOVERNMENTSPONSORED RELOCATION OF UNHOUSED PERSONS § 9.72.010 – Purpose.

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The purpose of this chapter is to:

1. Help preserve the City’s limited homelessness-related resources, including but not limited to shelter and outreach, for the benefit of individuals residing in the City; and

2. Encourage the appropriate government agencies to provide shelter, care, outreach, and other homelessness-related resources to persons experiencing homeless within their jurisdiction, rather than simply transporting these individuals elsewhere; and

3. Prevent government agencies from engaging in the cruel and inhumane treatment of unhoused persons.
§ 9.72.020 – Unsanctioned relocation prohibited.

A. No law enforcement officer, agent, or employee of a county, city, or other governmental entity, when acting in their official capacity, shall transport and drop off an individual on public property or private property that is accessible to the public within the City of Irwindale if the individual lacks a fixed, regular, and adequate nighttime residence.

B. A person “lacks a fixed, regular, and adequate nighttime residence” within the meaning of this section if that person:

1. Has a primary nighttime residence that is on public property or private property not meant for habitation; or

2. Lives in a publicly or privately operated shelter designated to provide temporary living arrangements, including but not limited to congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state, and local government programs; or

3. Is exiting an institution where they have resided for 90 days or less and resided in an emergency shelter or place not meant for habitation immediately before entering that institution.
§ 9.72.030 – Exceptions.

The prohibitions of this chapter shall not apply to the following authorized activities:

1. Transporting a person to be treated at a hospital or other medical facility; or

2. Transporting a person to reside at a facility such as a shelter, temporary housing, or permanent housing, when a law enforcement officer, agent, or employee of a

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county, city, or other governmental agency has verified that the individual being transported has already been accepted to reside at the facility; or

3. Transporting a person to attend a verified appointment with a governmental or nonprofit social service provider; or

4. Any transportation or drop off activities undertaken by the City of Irwindale or the City of Irwindale Police Department on the City’s behalf within the City of Irwindale; or

5. The operations of a governmental provider of public transportation, including but not limited to the Metro, Metrolink, and Foothill Transit. § 9.72.040 – Violations and penalties.

A violation of any provision of this chapter shall be a misdemeanor.

PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Irwindale at a regular meeting held on the ___ day of __________ 2024. __________________________
Albert F. Ambriz, Mayor
ATTEST:
_____________________________
Laura M. Nieto, MMC
Chief Deputy City Clerk

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STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES } ss.

CITY OF IRWINDALE }
I, Laura M. Nieto, Chief Deputy City Clerk of the City of Irwindale, California do hereby certify that the foregoing Ordinance No. 791 was introduced for first reading at a regular meeting of the City Council of the City of Irwindale held on the 13th day of November 2024, and was duly adopted at a regular meeting of the City Council of the City of Irwindale held on the ____ day of ______ 2024, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:
_________________________
Laura M. Nieto, MMC
Chief Deputy City Clerk

AFFIDAVIT OF POSTING
I, Laura M. Nieto, Chief Deputy City Clerk, certify that I caused a copy of Ordinance No. 791, adopted by the City Council of the City of Irwindale at its regular meeting held _________________, 2024 to be posted at the City Hall, Library, and Post Office on _________________.
___________________________ Dated:________________
Laura M. Nieto, MMC
Chief Deputy City Clerk

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Item #22.A.

Date: November 13, 2024
To: Honorable Mayor and Members of the City Council
From: Julian A. Miranda, City Manager
Issue: Site Plan & Design Review (DA) No. 01-2024 - Maintenance and Wash Bay Canopy Structure
City Manager's Recommendation:

That the City Council adopt Resolution No. 2024-92-3569, entitled “A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF IRWINDALE, CALIFORNIA, APPROVING SITE PLAN AND DESIGN REVIEW (DA) NO. 01-2024 FOR THE CONSTRUCTION OF A ±5,520 SQUARE FOOT MAINTENANCE AND WASH BAY

STRUCTURE FOR THE MATERIALS RECOVERY FACILITY/TRANSFER STATION (MRF/TS) ON PROPERTY LOCATED AT 2200 ARROW HIGHWAY, IRWINDALE, CA 91706 (APN 8535-001-039), IN THE M-2 (HEAVY

MANUFACTURING) ZONE, SUBJECT TO CONDITIONS AS STATED HEREIN, FINDING THE PROJECT EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”) PURSUANT TO CEQA GUIDELINES SECTION 15162, AND MAKING CERTAIN FINDINGS OF FACT”.

Administrative Action:

Submitted / Prepared by:

Marilyn Simpson, AICP, Community Development Director
Reviewed by:

Adrian R. Guerra, City Attorney
Kambiz Borhani, Finance Director / City Treasurer
Approved by:

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Julian A. Miranda, City Manager
Background and Analysis:

REQUEST
The proposed maintenance and wash bay project is a part of the Athens Services’ Material Recovery Facility/Transfer Station (MRF/TS) development on 2200 Arrow Highway. While a maintenance area and a wash bay were included in the previously approved site plan and the use was evaluated in the FEIR, the proposed configuration is new and allows for more efficient access to the bays. No other changes are proposed to the MRF/TS building, which is currently under construction.

BACKGROUND/SITE HISTORY
The project site was purchased by the former Irwindale Community Redevelopment Agency (ICRA) on July 9, 1990. At the time of purchase, the site was vacant and the ICRA sought to facilitate development of the site for an after-market auto related use and other retail development. The aftermarket auto related use did not move forward.

In 2005, the Site was recognized, by virtue of its size and location relative to freeways and arterial roadways, as a suitable site for the development of the MRF/TS which would enable the City to meet its obligations with respect to waste disposal. Specifically, the State of California, through enactment of the California Integrated Waste Management Act of 1989 (Public Resources Code Sections 40000 et seq. (the “Act”), had previously directed all local jurisdictions to promote recycling and to maximize the use of feasible source reduction, recycling and composting options in order to reduce the amount of solid waste required to be disposed of by land disposal.

Project entitlements originally began on June 8, 2016, with the intent to allow the applicant, Athens

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Services, to purchase the site in order to develop and operate the MRF/TS and convenience store/fueling station. The development of the site would provide the City and its residents with a state-of-the-art facility for solid waste disposal, recycling and source reduction.

On February 24, 2021 the Irwindale City Council conducted a duly noticed public hearing for the Material Recovery Facility and Transfer Station and adopted the following resolutions: Resolution No. 2021-06-3268 approving a Franchise & Facility Operations Agreement; Resolution No. CC2021-08-3270 & Resolution No. SA2021-13-3275 Certifying the Final Environmental Impact Report (SCH#2013051029) for the MRF/TS Project; Resolution No. CC2021-09-3271 & Resolution No. SA2021- 14-3276 for the project Disposition and Development Agreement; Resolution No. 2021-10-3272 for General Plan Amendment No. 02-2016; Resolution No. 2021-11-3273 for Conditional Use Permit No. 02-2016; Resolution No. 2021-12-3274 approving Site Plan & Design Review (DA) No. 06-2016.

On March 10, 2021, the Irwindale City Council adopted Ordinance No. 752 for Zone Ordinance Amendment No. 04-2016 to amend the Irwindale Municipal Code to allow a Materials Recovery Facility as a permitted use in the M-2 zone and related zoning requirements; and Ordinance No. 753 approving Development Agreement No. 02-2016 to allow the construction and operation of a Materials Recovery Facility and Transfer Station, Convenience Store, and Public Gas Station at the Site.

GENERAL PLAN AND ZONING
The site is designated in the General Plan as Industrial/Commercial. The property is zoned M-2 (Heavy Manufacturing). The following zones and uses surround the site:

Direction Existing Land Use Zoning District
North Santa Fe Dam A1 (Agricultural)
South City of Baldwin Park Industrial: fronting Arrow Highway; Residential: approx.. 500’ south of the
Industrial Uses
East Santa Fe Dam & LADWP Power
Lines
A1 (Agricultural)
West Industrial/Distribution Facility M2 (Heavy Manufacturing)

SITE PLAN AND DESIGN REVIEW (DA)
Pursuant to the provisions of Chapter 17.70 (Site Plan and Design Review) of the Irwindale Municipal Code (IMC), “No person shall construct any building or structure or make structural and physical improvements, additions, extensions and/or exterior alterations, and no permit shall be issued for such construction until the site plan and design review has been submitted to, reviewed by, and approved in accordance with this chapter. The property may only be developed, used and maintained in accordance with the approved site plan and design review.” Project Description

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The proposed project is for the construction of a ±5,520 square-foot Maintenance and Wash Bay Canopy, a part of the previously approved Material Recovery Facility and Transfer Station development at 2200 Arrow Highway. The proposed maintenance and wash bay canopy is a limited facility for preventative fleet maintenance and washing only. Preventative maintenance includes activities such as oil changes, tune-ups, compliance with state-mandated inspections, and tire inspection, repair, and replacement. These activities, while essential, are considered less in-depth than major vehicle maintenance and do not require loud or obtrusive types of equipment to perform.

Signage, landscaping, onsite circulation, and parking are remaining the same as the previously approved Site Plan and Design Review (DA) 06-2016.

Operation
The maintenance and wash bays will serve Athens fleet vehicles only. The equipment/machines to be used in the Project include a compressor for inflating tires and cleaning, shop tools, and a pressure washer. Chemicals that may be used or stored at the Project site include degreaser for vehicle equipment washing (e.g., Big Mule Sanitizer), glass cleaner for windshields, and maintenance fluids such as motor oil, used oil, hydraulic oil, gear oil, grease, antifreeze, and used antifreeze. The maintenance canopy is proposed to be only used for minor repair and maintenance; primary repair shop activities will take place at the City of Industry Athens facility. The standard maintenance and wash bay operations have been conditioned to be limited to occur only between the hours of 7am and 10pm to meet City of Irwindale’s noise regulations code section 9.28.

The wash bay will service the Athens fleet of 53’ tractor trailers, not the local waste collector vehicles.

The water from the wash bay will go through an extensive clarifying process to remove any possible contaminates or material before draining to the public sewer and will be regularly inspected for compliance with all applicable agency regulations.

Building Design/Design Guidelines
The main Material Recovery Facility incorporates desired design elements from the Commercial and Industrial Design Guidelines including but not limited to facade elements, roofs and parapets, materials and colors. The layout, landscaping and design of the site also incorporated encouraged design principles. For example, the MRF building includes articulated arched façade elements with translucent panels are provided to break up the building massing. Additionally, the building elevations are scored vertically and horizontally to provide architectural interest. The buildings also feature raised decorative accent elements with metal crosspieces over the bay doors. The design complements many of the recently approved developments, which have been designed to closely adhere to the guidelines, while maintaining function and aesthetic uniqueness The proposed structure of the Maintenance and Wash Bay canopy will have the same colors, materials, and façade elements as the main Material Recovery Facility. As an accessory structure, the open bay canopy complements the main facility.

Building Height
The canopy structure is proposed to stand nineteen feet, three and three fourths (19’-3¾”) inches tall from the finished surface. The main Material Recovery Facility has a height of fifty feet, six inches (50’- 6”).

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Project Fencing and Screening
The applicant is proposing the operation of the maintenance bay to be screened by the eight-foot (8ft) perimeter wall that surrounds the entirety of the Material Recovery Facility and Transfer Station development. Per Irwindale Municipal Code Section 17.56.080(C)(18) minor repairs for fleet vehicles and machinery must be done within an enclosed building or shielded from the public right of way. The maintenance and repair use were originally entitled to occur within the enclosed main Material Recovery Facility building. The applicant now proposes to move all onsite maintenance to occur within the opened maintenance canopy. Exhibit C, Project Plans, includes a Line of Sight rendering that shows the line of sight from both the northern and southern side of Live Oak Ave. Along with the eight-foot perimeter wall, the applicant is proposing to screen the facility with existing and newly planted trees south of the perimeter wall facing Live Oak Ave.

ANALYSIS
Site Plan & Design Review Analysis
Pursuant to Irwindale Municipal Code section 17.70.050(A), upon approving a site plan and design review application, the Planning Commission and City Council shall make the following findings:

1. The proposed project is in conformance with the general plan, zoning ordinance, and other ordinances and regulations of the city
The subject site is zoned M-2 (Heavy Manufacturing) and has a General Plan designation of Commercial/Industrial. The design of the structure matches the design of the main Material Recovery Facility which is designed to comply with the development standards for the M-2 zone; and is consistent with the goals and policies of the General Plan and the Commercial and Industrial Design Guidelines.

2. The proposed project is in conformance with any redevelopment plan and regulations of the community redevelopment agency and any executed owner's participation agreement or disposition and development agreement
The finding is no longer applicable as the Irwindale Community Redevelopment Agency no longer exists.

3. The following are so arranged as to avoid traffic congestion, to ensure the public health,

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safety, and general welfare, and to prevent adverse effect on surrounding properties:
a. Facilities and improvements,
The Maintenance and Wash Bay canopy is setback 73’-10” from the Southern property line abutting Live Oak Avenue and 110’-11” from the western property line abutting the 14005 Live Oak Avenue property. All structures and infrastructure improvements will be constructed to current code and completed prior to Certificate of Occupancy.
b. Pedestrian and vehicular ingress, egress, and internal circulation, Ingress and egress to the site is for the project site will not be changed from the previously approved SP&DR(DA) No. 06-2016, which provides that which provides that ingress and egress to the site is provided via five (5) driveways: Driveways 1, 2, 4, and 5 on Arrow Highway and Driveway 3 on Live Oak Avenue, with a Fire Department access entrance at the southwest corner of the property. Driveway 2 includes a trucks - only ingress lane and a second entrance with ingress and egress for the employee parking lot. Addendum No. 1 to the FEIR evaluated the minor, internal site plan adjustments made for the final design of the project that included off -site improvements resulting from the internal site changes. A right-hand turn lane and installation of an intersection stop light was included in the project. The overall circulation of the project has remained similar to the FEIR site plan. All commercial traffic and visitor traffic enters and exits from Arrow Highway. Employee traffic primarily enters and exits from the intersection at Live Oak Avenue and Baldwin Park Boulevard. c. Setbacks,
The project complies with the minimum setback requirements for the M-2 zone. d. Height of buildings,
The M-2 zone does not have a maximum height limit. The MRF development has a height of 50’-6” while the proposed canopy has a height of 19’-3¾”.
e. Signs,
A sign program is required per SP&DR(DA) No. 06-2016 that eschews garishness and embraces a refined, integrated overall design. The sign program will be prepared to address all on-site wall, freestanding, and directional signage. Additionally, pursuant to Community Development Condition of Approval (B)(8) herein, the Applicant shall obtain approval and permits from the Planning and Building Divisions for all Project signage prior to construction of any signs on the Project site. f. Mechanical and utility service equipment,
All equipment for the maintenance and wash bay uses will be stored within the canopy structure.

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g. Landscaping,
The project will not affect the majority of landscaping. Trees along the perimeter wall will help screen the canopy from the public right of way view.
h. Grading,
The MRF development was designed to take advantage of the topography, thus reducing grading activities.
i. Lighting,
All lighting is designed to complement the structures and oriented to properly illuminate the site as not to create “dark pockets” that could support nefarious activities. j. Parking,
Parking will not be affected by the proposed canopy structure. k. Drainage,
A Water Quality Management Plan (WQMP) from SP&DR(DA) 06-2016 will address hydrology and draining for the MRF development, including the maintenance and wash bays. l. Intensity of land use.

The project is located on the southern side of the Athens Services MRF development abutting Live Oak Ave. The MRF development is located in a 17.22-acre, triangular shaped parcel. The building footprint was originally entitled to cover 34% of the parcel per SP&DR(DA) No. 06-2016, currently the building footprint is proposed to cover 25.7% of the parcel.

4. The proposed development is consistent with applicable city design guidelines and historic design themes, and provides for appropriate exterior building design and appearance consistent and complementary to present and proposed buildings and structures in the vicinity of the subject project while still providing for a variety of designs, forms and treatments.

The proposed canopy, like the main MRF development, incorporates desired design elements from the

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Commercial and Industrial Design Guidelines including but not limited to façade elements, materials and colors.

PLANNING COMMISSION REVIEW
On October 28, 2024, SP&DR (DA) No. 01-2024 was presented to the Planning Commission. The Planning Commission adopted PC Resolution No. 840(24) recommending that the City Council approve SP&DR (DA) No. 01-2024, and find the project exempt from further CEQA review.

PUBLIC NOTICE
On October 31, 2024, the property owners within 500 feet of the subject property were notified by mail of the City Council's public hearing of this matter. The public notice was also published in the newspaper on November 1, 2024.

ENVIRONMENTAL REVIEW
Pursuant to the authority and criteria contained in the California Environmental Quality Act (CEQA) of 1970, as amended, and the City of Irwindale environmental guidelines, the City, as the Lead Agency, analyzed the project and certified the Materials and Recovery Facility and Transfer Station Final Environmental Impact Report (“FEIR”) (SCH # 2013051029) on February 24, 2021. It is recommended that the City Council find, on the basis of substantial evidence contained in the whole record, that the FEIR serves as the environmental review for the project and, pursuant to CEQA Guidelines section 15162, no additional environmental review is necessary because there have been no changes with respect to the overall scope under which the project is being undertaken and no new information of substantial importance concerning the project, which cause new significant environmental effects or a substantial increase in the severity of previously identified significant effects.

A copy of the FEIR and related environmental documents are posted on the City’s website at https://www.irwindaleca.gov/177/Materials-Recovery-Facility-Transfer. and available at the Irwindale Public Library and Deputy City Clerk’s Office.

Fiscal Impact:

The project is a private development fully funded by the developer/applicant.

Attachments:

1. Attachment A CC Reso Adopting SP&DR (DA) No. 01-2024 (Final)(1031246.1)

2. Attachment "B" Plans - SP&DR(DA) No. 01-2024_Page_1

3. Plans - SP&DR(DA) No. 01-2024_Page_2

4. Plans - SP&DR(DA) No. 01-2024_Page_3

5. Plans - SP&DR(DA) No. 01-2024_Page_4

6. Plans - SP&DR(DA) No. 01-2024_Page_5

7. Plans - SP&DR(DA) No. 01-2024_Page_6

8. Attachment "C" 10.28.24 PC Report

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ATTACHMENT “A”
RESOLUTION NO. 2024-92-3569

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF IRWINDALE, CALIFORNIA, APPROVING SITE PLAN AND DESIGN REVIEW (DA) NO. 01-2024 FOR THE CONSTRUCTION OF A ±5,520 SQUARE FOOT MAINTENANCE AND

WASH BAY STRUCTURE FOR THE MATERIALS RECOVERY
FACILITY/TRANSFER STATION (MRF/TS) ON PROPERTY LOCATED AT 2200 ARROW HIGHWAY, IRWINDALE, CA 91706 (APN 8535-001-039), IN THE M-2 (HEAVY MANUFACTURING) ZONE, SUBJECT TO CONDITIONS AS STATED

HEREIN, FINDING THE PROJECT EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (“CEQA”) PURSUANT TO CEQA GUIDELINES SECTION 15162, AND MAKING CERTAIN FINDINGS OF FACT
WHEREAS, Anthony Bertrand, PO Box 60009, City of Industry, CA 91716, on behalf of Arakelian Enterprises Inc. dba Athens Services, has made a request for a Site Plan and Design Review (DA) for the construction a ± 5,520 square foot maintenance and wash bay canopy; and
WHEREAS, the Subject Property is located at 2200 Arrow Highway (APN 8535- 001-039). The Subject Property is currently zoned M-2 (Heavy Manufacturing).

Hereinafter in this Resolution, the subject Site Plan and Design Review shall be referred to as the “Application”; and
WHEREAS, on February 24, 2021, the Irwindale City Council conducted a duly noticed public hearing for the Material Recovery Facility and Transfer Station and adopted the following resolutions: Resolution No. 2021-12-3274 approving Site Plan & Design Review (DA) No. 06-2016; Ordinance No. 753 for Development Agreement No. 02-2016; Resolution No. CC2021-09-3271 & Resolution No. SA2021-14-3276 for the project Disposition and Development Agreement; Resolution No. 2021-10-3272 for General Plan Amendment No. 02-2016; Ordinance No.752 for Zone Ordinance Amendment No. 04- 2016; Resolution No. 2021-11-3273 for Conditional Use Permit No. 02-2016; and Resolution No. 2021-06-3268 for the Franchise & Facility Operations Agreement; and WHEREAS, the Project was previously subject to environmental review in accordance with the California Environmental Quality Act (CEQA) of 1970, as amended, and the City of Irwindale environmental guidelines. Pursuant to the authority and criteria contained in the California Environmental Quality Act (CEQA) of 1970, as amended, and the City of Irwindale environmental guidelines, the City, as the Lead Agency, analyzed the project and certified the Materials and Recovery Facility and Transfer Station Final Environmental Impact Report (“FEIR”) (SCH # 2013051029) on February 24, 2021.

Based on the City Council’s findings herein, on the basis of substantial evidence contained in the whole record, the FEIR serves as the environmental review for the project and no additional environmental review is necessary because there have been no changes with respect to the overall scope under which the project is being undertaken

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and no new information of substantial importance concerning the project, which cause new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and
WHEREAS, on October 28, 2024, the Planning Commission of the City of Irwindale conducted a duly noticed public hearing and adopted PC Resolution No. 840(24) recommending that the City Council approve the Site Plan and Design Review (DA) No. 01-2024 Application; and
WHEREAS, on November 13, 2024, the City Council held a duly noticed public hearing, as required by law, on the proposed Site Plan and Design Review (DA) No. 01- 2024 to receive testimony and other evidence regarding the proposed Site Plan and Design Review, including without limitation, information provided to the City Council by City staff; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF IRWINDALE, CALIFORNIA, DOES HEREBY FIND, RESOLVE, AND DETERMINE AS FOLLOWS:

SECTION 1. The City Council hereby specifically finds that all of the facts set forth in Recitals, Part A, of this Resolution are true and correct and incorporated herein by this reference.

SECTION 2. Based upon substantial evidence presented to this City Council during the public hearing conducted with regard to the Application, including written staff reports, verbal testimony, site plans and Conditions of Approval attached hereto as Exhibit “A,” and in light of the entire record, the City Council hereby specifically finds as follows:

A. The proposed project is in conformance with the general plan, zoning ordinance, and other ordinances and regulations of the City.

The subject site is zoned M-2 (Heavy Manufacturing) and has a General Plan designation of Commercial/Industrial. The design of the structure matches the design of the main Material Recovery Facility which is designed to comply with the development standards for the M-2 zone; and is consistent with the goals and policies of the General Plan and the Commercial and Industrial Design Guidelines.

B. The proposed project is in conformance with any redevelopment plan and regulations of the community redevelopment agency and any executed owner's participation agreement or disposition and development agreement.

This finding is no longer applicable, as Irwindale Community Redevelopment Agency no longer exists.

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C. The following are so arranged as to avoid traffic congestion, to ensure the public health, safety, and general welfare, and to prevent adverse effect on surrounding properties:

I. Facilities and improvements,
The Maintenance and Wash Bay canopy is setback 73’-10” from the Southern property line abutting Live Oak Avenue and 110’-11” from the western property line abutting the 14005 Live Oak Avenue property. All structures and infrastructure improvements will be constructed to current code and completed prior to Certificate of Occupancy.

II. Pedestrian and vehicular ingress, egress, and internal circulation, Ingress and egress to the site is for the project site will not be changed from the previously approved SP&DR(DA) No. 06-2016, which provides that ingress and egress to the site is provided via five (5) driveways: Driveways 1, 2, 4, and 5 on Arrow Highway and Driveway 3 on Live Oak Avenue, with a Fire Department access entrance at the southwest corner of the property.

III. Setbacks,
The project complies with the minimum setback requirements for the M-2 zone.

IV. Height of buildings,
The M-2 zone does not have a maximum height limit. The MRF development has a height of 50’-6” while the proposed canopy has a height of 19’-3¾”.

V. Signs,

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A sign program is required per SP&DR(DA) No. 06-2016 that eschews garishness and embraces a refined, integrated overall design. The sign program will be prepared to address all on-site wall, freestanding, and directional signage. Additionally, pursuant to Community Development Condition of Approval (B)(8) herein, the Applicant shall obtain approval and permits from the Planning and Building Divisions for all Project signage prior to construction of any signs on the Project site.

VI. Mechanical and utility service equipment,
All equipment for the maintenance and wash bay uses will be stored within the canopy structure.

VII. Landscaping,
The project will not affect the majority of landscaping. Trees along the perimeter wall will help screen the canopy from the public right of way.

VIII. Grading,
The MRF development was designed to take advantage of the topography, thus reducing grading activities.

IX. Lighting,
All lighting is designed to complement the structures and oriented to properly illuminate the site as not to create “dark pockets” that could support nefarious activities.

X. Parking,
Parking will not be affected by the proposed canopy.

XI. Drainage,
A Water Quality Management Plan (WQMP) from SP&DR(DA) 06-2016 will address hydrology and draining for the MRF development, including the maintenance and wash bays.

XII. Intensity of land use.

The project is located on the southern side of the Athens Services MRF development abutting Live Oak Ave. The MRF development is located in a

17.22-acre, triangular shaped parcel. The building footprint was originally entitled to cover 34% of the parcel per SP&DR(DA) No. 06-2016, currently the building footprint is proposed to cover 25.7% of the parcel.

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D. The proposed development is consistent with applicable city design guidelines and historic design themes and provides for appropriate exterior building design and appearance consistent and complementary to present and proposed buildings and structures in the vicinity of the subject project while still providing for a variety of designs, forms and treatments.

The proposed canopy, like the main MRF development, incorporates desired design elements from the Commercial and Industrial Design Guidelines including but not limited to façade elements, materials and colors.

SECTION 3. The Project was previously subject to environmental review in accordance with the California Environmental Quality Act (CEQA) of 1970, as amended, and the City of Irwindale environmental guidelines. Pursuant to the authority and criteria contained in the California Environmental Quality Act (CEQA) of 1970, as amended, and the City of Irwindale environmental guidelines, the City, as the Lead Agency, analyzed the project and certified the Materials and Recovery Facility and Transfer Station Final Environmental Impact Report (“FEIR”) (SCH # 2013051029) on February 24, 2021. The City Council hereby finds, on the basis of substantial evidence contained in the whole record, that the FEIR serves as the environmental review for the project and, pursuant to CEQA Guidelines section 15162, no additional environmental review is necessary because there have been no changes with respect to the overall scope under which the project is being undertaken and no new information of substantial importance concerning the project, which cause new significant environmental effects or a substantial increase in the severity of previously identified significant effects. City Staff are hereby directed and authorized to file a Notice of Exemption.

SECTION 4. If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional due to the writs of mandate issued by the Court.

SECTION 5. Based upon the substantial evidence and conclusions set forth herein above, the City Council approves the Application subject to the conditions set forth in Exhibit “A” attached hereto and by this reference incorporated herein, which conditions are deemed necessary to protect the public health, safety and general welfare and are reasonable and proper in accordance with the intent and purposes of Title 17 of the Irwindale Municipal Code.

SECTION 6. This resolution shall be effective upon approval and adoption.

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SECTION 7. The Chief Deputy City Clerk shall certify to the adoption of this resolution and transmit a certified copy of this Resolution, by certified mail, to the Applicant at the address of record set forth in the Application.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Irwindale this 13th day of November, 2024. __________________________
Albert F. Ambriz, Mayor
ATTEST:
_____________________________
Laura M. Nieto, MMC
Chief Deputy City Clerk
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES } ss.

CITY OF IRWINDALE }
I, Laura M. Nieto, Chief Deputy City Clerk of the City of Irwindale, do hereby certify that the foregoing Resolution No. 2024-92-3569 was adopted at a regular meeting of the Irwindale City Council held on the 13th day of November, 2024, by the following vote of the Council:

AYES: Councilmembers:

NOES: Councilmembers:

ABSTAIN: Councilmembers:

ABSENT: Councilmembers:
_________________________
Laura M. Nieto, MMC
Chief Deputy City Clerk

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EXHIBIT “A”
CITY COUNCIL RESOLUTION NO. 2024-92-3569
Site Plan and Design Review No. 01-2024
Maintenance and Wash Bay Canopy Structure for Athens Services 2200 Arrow Highway, Irwindale, CA 91706
A. GENERAL

1. The use and development authorized by this Site Plan and Design Review (DA), allows for the construction of one (1) speculative, concrete tilt-up building substantially in conformance with the plans submitted to the City dated August 30, 2024.

2. A building permit shall be obtained within twelve (12) months from the date of approval. Thereafter, if the activities have been abandoned for ninety (90) or more days, the Site Plan and Design Review Permit approval shall expire and become null and void, unless a written request for extension is received by the Community Development Director at least thirty (30) days prior to such expiration or abandonment. Upon receipt of written request for extension, the Community Development Director may grant an extension of this Site Plan and Design Review Permit approval for a period not to exceed one (1) year from the original date of expiration, or may refer such request to the City Council for determination.

3. The Applicant shall agree and consent, in writing, to each and every condition set forth herein within twenty (20) days from the adoption of this Resolution by the City Council approving the Site Plan and Design Review (DA).

4. Prior to the issuance of a business license and/or occupancy permit and/or final inspection by the Community Development Department for the speculative building, all applicable conditions of approval (except those involving construction permits) shall be completed to the reasonable satisfaction of the City.

5. The Applicant shall defend, indemnify and hold harmless the City of Irwindale, its agents, officers, or employees from any claims, damages, action, or proceeding against the City or its agents, officers, or employees to attack, set aside, void or annul, any approval of the City, its advisory agencies, appeal boards, or legislative body to Site Plan and Design Review Permit No. 01-2024, including the environmental review and approvals therefore. The City will promptly notify the permittee of any such claim, action, or proceeding against the City and will cooperate fully in the defense.

6. The Applicant agrees to allow City inspectors access to the site to reasonably inspect the site during normal working hours to assure compliance with these

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conditions and other codes. Any and all fees required to be paid to any public agency shall be paid prior to obtaining any permits for this project.

7. The Applicant shall maintain and use the project location and facility thereon in full compliance with all codes, standards, policies and regulations imposed by the City, County, State, or Federal agencies with jurisdiction over the facility.

8. It shall be required that the subject location and its contents, including but not limited to, structures, fences or garden/block walls, and vehicles are maintained free and clear of any graffiti. The Applicant shall be held responsible for the immediate removal of any and all graffiti found on-site within 48 hours of its application.

9. The premises will be secured with appropriate security lighting, to obtain a minimum of 1-foot candles over the entire site. A photometric lighting plan shall be submitted, subject to the review and approval of the Community Development Department and the Police Department.

10. Security lighting fixtures are to be shielded and shall not project above the fascia or roof line of the buildings. The shields shall be painted to match the surface to which they are attached. Security lighting fixtures shall not be substituted for parking lot or walkway lighting fixtures.

11. In accordance with the provisions of Government Code Section 66020(d)(1), the imposition of fees, dedications, reservations, or exactions for this project are subject to protest by the applicant at the time of approval or conditional approval of the project, or within 90 days after the date of imposition of the fees, dedications, reservations, or exactions imposed on the project.

12. Prior to occupancy of the project, all users of the facility shall comply with the City of Irwindale M-2 (Heavy Manufacturing) zoning standards and regulations through the business license and zoning compliance process.

B. COMMUNITY DEVELOPMENT DEPARTMENT

1. The use and improvements authorized by this Site Plan and Design Review (DA), shall conform to the plans as finally approved by the City (dated August 30, 2024) as conditioned herein, and any appreciable modification of the plans or mode of operation, as determined by the Community Development Director, shall require the prior approval of the final approving body (City Council) pursuant to the amendment of the Site Plan and Design Review Permit.

2. This project is an amendment to SP&DR (DA) No. 06-2016 and shall conform to all requirements of SP&DR (DA) No. 06-2016, as set forth in City Council Resolution 2021-12-3274, including the conditions of approval as set forth therein, except as modified herein.

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3. All conditions of approval and requirements set forth in Development Agreement No. 02-2016 and Conditional Use Permit No. 08-2016 shall be complied with.

4. The signed Final Conditions of Approval shall be photocopied and included as a sheet in the plans submitted to the Building Division for plan check.

5. The standard maintenance and wash bay operations shall occur between the hours of 7:00am -10:00pm. Maintenance and Wash Bay activities between the hours of 10:00pm – 7:00am are permitted, except that no excessive noise producing equipment shall be used during these hours and no other activities that would violate the City’s noise ordinance are permitted.

6. A minimum of 10% the total lot area shall be landscaped.

7. All plant material, including trees, shall be maintained in good condition, and replaced in the event they die or become diseased, this includes the landscaping and trees proposed as screening from public view of the maintenance and wash bay canopy.

8. The Applicant shall obtain approval and permits from the Community Development Department and Building Division for all project signage prior to construction of any signs on the project site.

9. Drive aisles shall remain open and unobstructed for vehicular circulation.

10. All building design and construction, including the type, texture, color, and durability of the exterior building materials shall comply with the City’s Commercial and Industrial Design Guidelines.

11. All utility equipment such as backflow units and transformers shall be screened with evergreen screen shrubs or similar planting materials as allowed.

12. All rooftop mechanical equipment, including heating and air conditioning units, antennas, and other electronic devices, shall be completely and decoratively screened from view from all public rights of way and adjacent properties and shall be integrated into the design and construction of the buildings1. All rooftop equipment and screening shall be shown on the plans and elevations, and shall be consistent with the building design and construction materials in texture and color. Such rooftop equipment screening shall be subject to the review and approval of the Community Development Department.

13. Any masonry walls, tube steel fences, and driveway gates shall be decorative and consistent with the building design and the Commercial and Industrial Design 1 Photovoltaic equipment is exempt from this requirement.

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Guidelines. The design of the walls and gates shall be subject to the review and approval of the Community Development Department. No chain link fencing shall be allowed for permanent perimeter fencing applications.

14. Applicant shall at all times comply with the Irwindale Municipal Code Noise Standards (as may be amended) as measured at the Site boundary. Additionally, if noise impacts exceed the applicable noise standard contained in the Irwindale Municipal Code, Applicant shall take necessary actions and implement procedures to bring the operations into compliance with this Code.

15. Construction activity shall take place no earlier than 7:00 AM on each day and no later than 7:00 PM on each day, Monday through Saturday. No construction activities of any kind shall be performed on Sundays or holidays without a permit per Irwindale Municipal Code section 9.28.110(A) .

16. All construction related activity shall comply with the noise standards as set forth in Irwindale Municipal Code Section 9.28.030.

C. BUILDING & SAFETY

1. Applicant shall submit all construction documents for approval/permits to Building & Safety for review.

D. FIRE DEPARTMENT

1. The proposed project shall be subject to the conditions and requirements of the County of Los Angeles Fire Department.

E. PUBLIC SERVICES

1. All walls that face the public right-of-way shall implement anti-graffiti management practices (such as planting vines on the walls). Applicant shall be responsible for graffiti removal to all walls that face the public right-of-way in a timely manner.

2. Onsite trash enclosure areas shall have sufficient space for solid waste and organic waste receptacles and shall be covered from the elements with a solid roof structure per Title 14, Division 7, Section 17313 of the California Code of Regulations and Building Code Manual County of Los Angeles Department of Public Works Building and Safety Division 312 Article 2.

3. Tenants must adhere to the SB 1383 regulations set forth by CalRecycle under California Code of Regulations Title 14, Division 7, Chapter 3 and outlined in the Irwindale Municipal Code Section 08.22 Specific Regulations for Organic Waste Disposal Reduction, Recycling, and Solid Waste, which

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includes the diversion of edible food to food recovery organizations and services.

4. The owner and/or applicant shall remove and reconstruct all damaged, deficient, or substandard sidewalk, driveways, curb, and gutter within the public right-of-way as directed by the Director of Engineering and the Public Services Director.

5. The owner and/or applicant is responsible for obtaining encroachment permit(s) from the City or any responsible agencies prior to commencing any type of work in the public right-of-way.

6. Vehicles shall not block the sidewalk or be parked on the public right-of-way or property frontage.

7. The tenant and owner of the property are responsible for the removal of any accidental or illegal dumping of debris on private property. It is not the responsibility of the City of Irwindale to remove any accidental or illegal dumping of items from private property.

8. All pedestrian and approach ramps in the public right-of-way shall meet ADA requirements. Pedestrian ramps shall have brick red truncated domes in the public right-of-way.

9. All utilities and signs within the public right-of-way shall meet horizontal and vertical ADA clearance requirements.

10. Any landscaping, including an irrigation system, in the public right-of-way or any property that is dedicated to the City of Irwindale for maintenance purposes must be approved by the Public Services Director, or designee, as part of the permitting process. Property owner is required to maintain at its sole expense all landscaping in the public right-of-way, including the parkway between the curb and sidewalk.

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CITY OF IRWINDALE

PLANNING COMMISSION STAFF REPORT

COMMUNITY DEVELOPMENT DEPARTMENT

PLANNING DIVISION
Date: October 28, 2024 Agenda Item No. 4-C
To: Honorable Chair and Members of the Planning Commission From: Marilyn Simpson, AICP, Community Development Director Project Planner: Martin Romero, Assistant Planner
Marilyn Simpson, Community Development Director
Project: Site Plan and Design Review (DA) No. 01-2024
Applicant: Anthony Bertrand, Arakelian Enterprises Inc. dba Athens Services Project Location: 2200 Arrow Highway (APN: 8535-001-039)

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Planning Commission Meeting October 28, 2024
Site Plan and Design Review (DA) No. 01-2024
Staff Recommendation: That the Planning Commission:
1) Adopt Resolution No. 840(24) entitled, “A Resolution of the Planning Commission of the City of Irwindale Recommending that the City Council approve Site Plan and Design Review (DA) No. 01-2024 for the construction of a ± 5,520 square foot maintenance and wash bay for the Materials Recovery Facility & Transfer Station (MRF/TS) on property located at 2200 Arrow Highway, Irwindale, CA 91706 (APN:
8535-001-039) in the M-2 (Heavy Manufacturing) zone subject to conditions as stated herein, finding the Project exempt from the California Environmental Quality Act pursuant to CEQA Guidelines section 15162, and making certain findings of fact”.

REQUEST
The Applicant is requesting a Site Plan and Design Review (DA) for the construction of a ±5,520 square-foot maintenance and wash bay canopy structure.

BACKGROUND/HISTORY
The proposed maintenance and wash bay project is a part of the Athens Services’ Material Recovery Facility/Transfer Station (MRF/TS) development on 2200 Arrow Highway. The project site was purchased by the former Irwindale Community Redevelopment Agency (ICRA) on July 9, 1990. At the time of purchase, the site was vacant and the ICRA sought to facilitate development of the site for an after-market auto related use and other retail development. The after-market auto related use did not move forward.

Project entitlements originally began on June 8, 2016, with the intent to allow the applicant, Athens Services, to purchase the site in order to develop and operate the MRF/TS and convenience store/fueling station. The development of the site would provide the City and its residents with a state-of-the-art facility for solid waste disposal, recycling and source reduction.

On February 24, 2021 the Irwindale City Council conducted a duly noticed public hearing for the Material Recovery Facility and Transfer Station and adopted the following resolutions: Resolution No. 2021-06-3268 approving a Franchise & Facility Operations Agreement; Resolution No. CC2021-08-3270 & Resolution No. SA2021-13-3275 Certifying the Final Environmental Impact Report (SCH#2013051029) for the MRF/TS Project; Resolution No. CC2021-09-3271 & Resolution No. SA2021-14-3276 for the project Disposition and Development Agreement; Resolution No. 2021-10-3272 for

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Planning Commission Meeting October 28, 2024
Site Plan and Design Review (DA) No. 01-2024
General Plan Amendment No. 02-2016; Resolution No. 2021-11-3273 for Conditional Use Permit No. 02-2016; Resolution No. 2021-12-3274 approving Site Plan & Design Review (DA) No. 06-2016
On March 10, 2021, the Irwindale City Council adopted Ordinance No. 752 for Zone Ordinance Amendment No. 04-2016 to amend the Irwindale Municipal Code to allow a Materials Recovery Facility as a permitted use in the M-2 zone and related zoning requirements; and Ordinance No. 753 approving Development Agreement No. 02-2016 to allow the construction and operation of a Materials Recovery Facility and Transfer Station, Convenience Store, and Pubic Gas Station at the Site.

GENERAL PLAN AND ZONING
The site is designated in the General Plan as Industrial/Commercial. The property is zoned M-2 (Heavy Manufacturing). The following zones and uses surround the site:

Direction Existing Land Use Zoning District
North Santa Fe Dam A1 (Agricultural)
South
City of Baldwin Park Industrial: fronting Arrow Highway; Residential: approx.. 500’ south of
the Industrial Uses
East Santa Fe Dam & LADWP
Power Lines
A1 (Agricultural)
West Industrial/Distribution
Facility
M2 (Heavy Manufacturing)

ENVIRONMENTAL REVIEW
Pursuant to the authority and criteria contained in the California Environmental Quality Act (CEQA) of 1970, as amended, and the City of Irwindale environmental guidelines, the City, as the Lead Agency, analyzed the project and certified the Materials and Recovery Facility and Transfer Station Final Environmental Impact Report (“FEIR”) (SCH # 2013051029) on February 24, 2021. It is proposed that the Planning Commission, on the basis of substantial evidence contained in the whole record, find and recommend that the City Council finds that the FEIR serves as the environmental review for the project and, pursuant to CEQA Guidelines section 15162, no additional environmental review is necessary because there have been no changes with respect to the overall scope under which the project is being undertaken and no new information of substantial importance concerning the project, which cause new significant environmental effects or a substantial increase in the severity of previously identified significant effects.

SITE PLAN AND DESIGN REVIEW (DA)

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Planning Commission Meeting October 28, 2024
Site Plan and Design Review (DA) No. 01-2024
Pursuant to the provisions of Chapter 17.70 (Site Plan and Design Review) of the Irwindale Municipal Code (IMC), “No person shall construct any building or structure or make structural and physical improvements, additions, extensions and/or exterior alterations, and no permit shall be issued for such construction until the site plan and design review has been submitted to, reviewed by, and approved in accordance with this chapter. The property may only be developed, used and maintained in accordance with the approved site plan and design review.”
Project Description
The proposed project is for the construction of a ±5,520 square-foot Maintenance and Wash Bay Canopy, a part of the previously approved Material Recovery Facility and Transfer Station development at 2200 Arrow Highway. The proposed maintenance and wash bay canopy is a limited facility for preventative fleet maintenance and washing only.

Preventative maintenance includes activities such as oil changes, tune-ups, compliance with state-mandated inspections, and tire inspection, repair, and replacement. These activities, while essential, are considered less in-depth than major vehicle maintenance and do not require loud or obtrusive types of equipment to perform. Signage, landscaping, onsite circulation, and parking are remaining the same as the previously approved Site Plan and Design Review (DA) 06-2016.

Operation
The equipment/machines to be used in the Project include a compressor for inflating tires and cleaning, shop tools, and a pressure washer. Chemicals that may be used or stored at the Project site include degreaser for vehicle equipment washing (e.g., Big Mule Sanitizer), glass cleaner for windshields, and maintenance fluids such as motor oil, used oil, hydraulic oil, gear oil, grease, antifreeze, and used antifreeze. The maintenance canopy is proposed to be only used for minor repair and maintenance; primary repair shop activities will take place at the City of Industry Athens facility. The maintenance and wash bay operations have been conditioned to be limited to occur only between the hours of 7am and 10pm to meet City of Irwindale’s noise regulations code section 9.28.

Additionally, the building elevations are scored vertically and horizontally to provide architectural interest. The buildings also feature raised decorative accent elements with metal crosspieces over the bay doors. The design complements many of the recently approved developments, which have been designed to closely adhere to the guidelines, while maintaining function and aesthetic uniqueness

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Planning Commission Meeting October 28, 2024
Site Plan and Design Review (DA) No. 01-2024
The proposed structure of the Maintenance and Wash Bay canopy will have the same colors, materials, and façade elements as the main Material Recovery Facility which incorporates the desired designs of the Irwindale Commercial and Industrial Design Guidelines.

Building Height
The canopy structure is proposed to stand nineteen feet, three and three fourths (19’- 3¾”) inches tall from the finished surface. The main Material Recovery Facility has a height of fifty feet, six inches (50’-6”).

17.56.080(C)(18) minor repairs for fleet vehicles and machinery must be done within an enclosed building or shielded from the public right of way. The maintenance and repair use were originally entitled to occur within the enclosed main Material Recovery Facility building. The applicant now proposes to move all onsite maintenance to occur within the opened maintenance canopy. Exhibit C, Project Plans, includes a Line of Sight rendering that shows the line of sight from both the northern and southern side of Live Oak Ave.

Along with the eight-foot perimeter wall, the applicant is proposing to screen the facility with existing and newly planted trees south of the perimeter wall facing Live Oak Ave.

1. The proposed project is in conformance with the general plan, zoning ordinance, and other ordinances and regulations of the city The subject site is zoned M-2 (Heavy Manufacturing) and has a General Plan designation of Commercial/Industrial. The design of the structure matches the design of the main Material Recovery Facility which is designed to comply with the development standards for the M-2 zone; and is consistent with the goals and policies of the General Plan and the Commercial and Industrial Design Guidelines.

2. The proposed project is in conformance with any redevelopment plan and regulations of the community redevelopment agency and any executed owner's participation agreement or disposition and development agreement The finding is no longer applicable as the Irwindale Community Redevelopment Agency no longer exists.

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Planning Commission Meeting October 28, 2024
Site Plan and Design Review (DA) No. 01-2024

3. The following are so arranged as to avoid traffic congestion, to ensure the public health, safety, and general welfare, and to prevent adverse effect on surrounding properties:
a. Facilities and improvements,
The Maintenance and Wash Bay canopy is setback 73’-10” from the Southern property line abutting Live Oak Avenue and 110’-11” from the western property line abutting the 14005 Live Oak Avenue property. All structures and infrastructure improvements will be constructed to current code and completed prior to Certificate of Occupancy.
b. Pedestrian and vehicular ingress, egress, and internal circulation, Ingress and egress to the site is for the project site will not be changed from the previously approved SP&DR(DA) No. 06-2016, which provides that which provides that ingress and egress to the site is provided via five (5) driveways: Driveways 1, 2, 4,
and 5 on Arrow Highway and Driveway 3 on Live Oak Avenue, with a Fire Department access entrance at the southwest corner of the property.

Driveway 2 includes a trucks - only ingress lane and a second entrance with ingress and egress for the employee parking lot. Addendum No. 1 to the FEIR evaluated the minor, internal site plan adjustments made for the final design of the project that included off -site improvements resulting from the internal site changes. A right-hand turn lane and installation of an intersection stop light was included in the project. The overall circulation of the project has remained similar to the FEIR site plan. All commercial traffic and visitor traffic enters and exits from Arrow Highway. Employee traffic primarily enters and exits from the intersection at Live Oak Avenue and Baldwin Park Boulevard.
c. Setbacks,
The project complies with the minimum setback requirements for the M-2 zone.
d. Height of buildings,
The M-2 zone does not have a maximum height limit. The MRF development has a height of 50’-6” while the proposed canopy has a height of 19’-3¾”.
e. Signs,
A sign program is required per SP&DR(DA) No. 06-2016 that eschews garishness and embraces a refined, integrated overall design. The sign program will be prepared to address all on-site wall, freestanding, and directional signage. Additionally, pursuant to Community Development Condition of Approval (B)(7) herein, the Applicant shall obtain approval and

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Planning Commission Meeting October 28, 2024
Site Plan and Design Review (DA) No. 01-2024
permits from the Planning and Building Divisions for all Project signage prior to construction of any signs on the Project site.
f. Mechanical and utility service equipment,
All equipment for the maintenance and wash bay uses will be stored within the canopy structure.
g. Landscaping,
The project will not affect the majority of landscaping. Trees along the perimeter wall will help screen the canopy from the public right of way. h. Grading,
The MRF development was designed to take advantage of the topography, thus reducing grading activities.
i. Lighting,
All lighting is designed to complement the structures and oriented to properly illuminate the site as not to create “dark pockets” that could support nefarious activities.
j. Parking,
Parking will not be affected by the proposed canopy.
k. Drainage,
A Water Quality Management Plan (WQMP) from SP&DR(DA) 06-2016 will address hydrology and draining for the MRF development, including the maintenance and wash bays.
l. Intensity of land use.

The project is located on the southern side of the Athens Services MRF development abutting Live Oak Ave. The MRF development is located in a

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Planning Commission Meeting October 28, 2024
Site Plan and Design Review (DA) No. 01-2024

CONCLUSION
It is recommended that the Planning Commission take the following action:

1. Adopt Resolution No. 840(24) recommending that the City Council approve Site Plan and Design Review (DA) No. 01-2024 subject to the proposed Conditions of Approval to permit the proposed improvements as presented herein; and Alternative Actions:

2. Request that staff prepare a resolution of denial based on recommended Findings of Fact to be brought back at the next regularly scheduled Planning Commission meeting for adoption, OR

3. Request that the applicant revise the project and continue the hearing to a date certain.

ATTACHMENTS
Exhibit A: Resolution No. 840(24) for SP&DR(DA) No. 01-2024 Exhibit B: Project Plans

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IRWINDALE CITY COUNCIL CHAMBERS OCTOBER 9, 2024
5050 N. IRWINDALE AVENUE WEDNESDAY
IRWINDALE, CALIFORNIA 91706 8:23 P.M.

The Irwindale SUCCESSOR AGENCY TO THE IRWINDALE COMMUNITY REDEVELOPMENT AGENCY met in regular session at the above time and place.

ROLL CALL: Present: Councilmembers Mark A. Breceda, Manuel R. Garcia, H. Manuel Ortiz; Mayor Pro Tem Larry G. Burrola;
Mayor Albert F. Ambriz
Also Present: Julian A. Miranda, City Manager; Adrian Guerra, City Attorney; Theresa Olivares, Assistant City Manager; Christopher Hofford, Chief of Police; Kambiz Borhani, Director of Finance / City Treasurer; Marilyn Simpson, Community Development Director; Eddie Chan, Director of Engineering / Building Official; Elizabeth Rodriguez, Public Services Director; Mary Hull, Human Resources Manager, and Laura Nieto, Chief Deputy City Clerk
AB 2449 DISCLOSURES None.

CONSENT CALENDAR
MOTION A motion was made by Councilmember Breceda, seconded by Councilmember Garcia, to approve the Consent Calendar. The motion was unanimously approved; Councilmember Ortiz abstaining on Item No. 27A
ITEM NO. 27A MINUTES OF THE REGULAR MEETINGS HELD MARCH 13, 2024, MINUTES OF THE AND SEPTEMBER 25, 2024

REGULAR MEETINGS
HELD MARCH 13, 2024, The minutes were approved as presented; Councilmember Ortiz AND SEPTEMBER 25, abstaining.
2024
ITEM NO. 27B WARRANTS / DEMANDS / PAYROLL

WARRANTS /
DEMANDS / PAYROLL The warrants / demands / payroll were approved.

END OF CONSENT CALENDAR

SPONTANEOUS
COMMUNICATIONS There were no speakers.

ADJOURNMENT There being no further business to conduct, the meeting was adjourned at 8:24 p.m.
________________________________
Laura M. Nieto, MMC
Chief Deputy City Clerk

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Accounts Payable
User:

Printed:
stapia
11/5/2024 12:16 PM
Checks by Date - Summary by Check Number
Check No Vendor No Vendor Name Check Date Check Amount
103120 ROSENO RSG Inc. 10/21/2024 2,062.50
Report Total (1 checks): 2,062.50
AP Checks by Date - Summary by Check Number (11/5/2024 12:16 PM) Page 1

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IRWINDALE CITY COUNCIL CHAMBERS OCTOBER 9, 2024
5050 N. IRWINDALE AVENUE WEDNESDAY
IRWINDALE, CALIFORNIA 91706 8:24 P.M.

The Irwindale HOUSING AUTHORITY met in regular session at the above time and place.

ROLL CALL: Present: Board Members Mark A. Breceda, Manuel R. Garcia, H.

Manuel Ortiz; Vice Chair Larry G. Burrola; Chair Albert F. Ambriz Also present: Julian A. Miranda, Executive Director; Adrian Guerra, General Counsel; Theresa Olivares, Assistant Executive Director; Christopher Hofford, Chief of Police; Kambiz Borhani, Director of Finance / City Treasurer; Marilyn Simpson, Community Development Director; Elizabeth Rodriguez, Public Services Director; Eddie Chan, Director of Engineering / Building Official; Mary Hull, Human Resources Manager, and Laura Nieto, Chief Deputy City Clerk AB 2449 DISCLOSURES None.

CONSENT CALENDAR
MOTION A motion was made by Board Member Breceda, seconded by Vice Chair Burrola, to approve the Consent Calendar. The motion was unanimously approved, Board Member Ortiz abstaining on Item No. 33A.

ITEM NO. 33A MINUTES OF THE REGULAR MEETINGS HELD MARCH 13, 2024 MINUTES OF THE AND SEPTEMBER 25, 2024

REGULAR MEETINGS
HELD MARCH 13, 2024, The minutes of the regular meetings held March 13, 2024, and AND SEPTEMBER 25, September 25, 2024, were approved as presented; Board Member 2024 Ortiz abstaining.

END OF CONSENT CALENDAR

SPONTANEOUS
COMMUNICATIONS There were no speakers.

NEW BUSINESS
ITEM NO. 35A GLOBAL SUBORDINATION POLICY
GLOBAL
SUBORDINATION This item was pulled from the agenda.

POLICY
ADJOURNMENT There being no further business to conduct, the meeting was adjourned at 8:25 p.m.
_________________________
Laura M. Nieto, MMC
Chief Assistant Authority Secretary

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Item #35.A.

Date: November 13, 2024
To: Honorable Chair and Members of the Housing Authority From: Julian A. Miranda, Executive Director
Issue: Adopt a 45 Year Affordability Covenant Loss Mitigation Formula Executive Director's Recommendation:

That the Authority Board provide staff direction regarding the adoption of a 45 Year Affordability Covenant Loss Mitigation Formula allowing former participants of the Property Rehabilitation Loan Program to sell their Affordable Units at a Market Rate Price.

Administrative Action:

Submitted by:

Julian A. Miranda, Executive Director
Prepared by:

Fernando Lopez, Housing Coordinator
Reviewed by:

Adrian R. Guerra, General Counsel
Kambiz Borhani, Finance Director / City Treasurer

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Approved by:

Julian A. Miranda, Executive Director
Background and Analysis:

On April 24, 2024, Staff presented information to the Housing Authority Board regarding a potential amendment to the Affordable Housing Agreement utilized for the Substantial Rehabilitation Program.

Staff presented the requirements under the current Affordable Housing Agreement and its compliance with state law Health & Safety Code §33334.3(f)(1).

Staff also informed the Board that Affordable Housing Unit owners that had participated in the former Property Rehabilitation Program had relayed their intentions on selling their Affordable Units at a Market Rate Price.

In addition, staff contacted the California Department of Housing and Community Development (HCD) to obtain a courtesy opinion on the concept of creating a Covenant Loss Mitigation Formula. Staff shared the results of that conversation and was then tasked with returning with potential repayment formulas.

Three formulas were initially provided for review to the Board and one (1) was unanimously selected by the Board to be submitted for review and support by HCD.

At the recommendation of HCD staff, The City of Irwindale opened a case with the California Department of Housing and Community Development (HCD) to obtain a “Letter of Support” for Irwindale’s proposed 45 Yr Affordability Covenant Loss Mitigation Formula.

The proposed 45 Yr Affordability Covenant Loss Mitigation Formula has the following requirements:
• Full repayment of the Property Rehabilitation Loan.
• 3 % interest per annum for the life of the Property Rehabilitation Loan. • Early Termination Charge (10 % of the Property Rehabilitation Loan provided) On October 17, 2024, Housing staff met with Brandon Yung, Housing Policy Analyst, Division of Housing Policy Development, Housing Accountability Unit. regarding the request for a “Letter of Support” for Irwindale’s 45 Yr Affordability Covenant Loss Mitigation Formula.

HCD stated the following:
• The information provided to HCD regarding the 45yr Affordable Housing Covenant Loss Mitigation Formula was reviewed by HCD’s Accountability & Enforcement Unit.

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• HCD applauds the City of Irwindale for contacting HCD to ensure a compliant Affordable Housing program.
• The City’s 45 year Affordable Housing Covenant Loss Mitigation formula is acknowledged by HCD as a disincentive to noncompliance with the existing covenants in place and a source of funding for future Affordable Housing activities.
• HCD provides Letters of Support exclusively for large scale Affordable Housing Projects.

Although HCD could not provide the City of Irwindale a “Letter of Support” since they are issued exclusively for large scale Affordable Housing Projects. They stated preserving Affordable Housing and building equity is left up to the local agency to decide and at no point during our discussion did HCD discourage Irwindale from utilizing our loss mitigation repayment formula.

Fiscal Impact:

Proceeds received from the implementation of the 45yr Affordable Housing Covenant Loss Mitigation formula will be utilized to fund future Affordable Housing activities.

Attachments:

1. 45 Yr Loss Mitigation Formula Attachment 11-13-24

2. Guidelines Substantial Rehab 11-13-24

3. Equity Sharing Policy 11-13-24

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CITY OF IRWINDALE

LOW & MODERATE HOME

IMPROVEMENT PROGRAM
Adopted September 20, 2001
Revised September 26, 2002 (pursuant to AB 637)

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IRWINDALE LOW & MODERATE INCOME HOME IMPROVEMENT PROGRAM

GUIDELINES

INTRODUCTION
This (Amended) Home Improvement Program was developed by staff and consultant of the Irwindale Community Redevelopment Agency (“Agency”) and approved on September 26, 2002 to meet the goal of providing decent, safe and sanitary housing for very low, low and moderate income families and persons within the City of Irwindale. Funding sources for all programs shall be from the Agency’s Low and Moderate Income Housing Fund (“Housing Fund”). Monies in the Housing Fund are derived from the allocation of 20% of the Agency’s tax increment revenues pursuant to California Health and Safety Code - Community Redevelopment Law (“CRL”).

Pursuant to Assembly Bill 637 (“AB 637”) which went into effect on January 1, 2002, significant changes were made to California Redevelopment Law with respect to affordable housing requirements and those programs funded by a redevelopment agency’s Housing Fund, necessitating revisions to the home improvement programs which the Agency approved in 2001.

The major program revision necessitated by this legislation is the extension of the term of affordability covenants from 10 to 45 years for owner-occupied units and from 15 to 55 years for rental units. These requirements apply to all new and “substantially rehabilitated” units assisted by the Housing Fund. The definition of “substantial rehabilitation” was not changed by AB 637 (CRL Section 33413 - “rehabilitation, the value of which constitutes 25 percent of the after rehabilitation value of the dwelling, inclusive of the land value.”)
This requirement necessitated that the Agency clarify the amount of loan that could be provided by the Deferred Housing Improvement Loan and the Substantial Rehabilitation Loan, and by splitting the Below Market Rate Loans for Tenant Occupied Units into two programs; one that would cover minor rehabilitation and the other for substantially rehabilitated multi-family properties.

The other requirement of AB 637 is that owner-occupied housing units assisted by Housing Funds may be sold for a market price to non-income qualified purchasers if the Agency has adopted a program which “protects” the Agency’s investment of Housing Fund monies. While AB 637 does not mandate any particular method for protecting the Agency investment nor does it require the recovery of any particular percentage of its investment; it states that a program may include, but is not limited to, an equity sharing program which establishes a schedule of equity sharing that permits retention by the property owner (seller) of a portion of the excess proceeds based on the length of occupancy after receiving Agency assistance.

The recommended revisions to the loan programs may be found in bold type in the following descriptions.

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PROGRAM DESCRIPTIONS
Housing Grants for Very Low Income (“Grants”) (No changes required) Budget: Annual allocation to be determined pursuant to the Agency’s budget process and in conformance with the Agency Five –Year Implementation Plan.

Goal: To provide very low-income residents with sufficient funds to address health and safety deficiencies, exterior deterioration of their properties, and if funds are available, to fund other needed improvements to improve the quality of their lives.

Grant Maximum: Housing Grants shall be provided in amounts of up to $25,000 for very lowincome (up to 50% of median income) persons or households on a citywide basis. Housing Grants are funded to first address health and safety issues and exterior deterioration, and secondly, other improvements that would improve the general character and living environment of the housing unit.

Interest Rate: No interest rate is charged on the Housing Grants.

Eligibility: Homeowner of a single–family home with an annual income determined to fall within the “Very Low Income” category (see Appendix 1 for definitions of income category, what constitutes income and the current [2002] median income levels for Los Angeles County). The home to be improved must be the primary residence of the person or persons applying for Grant.

For the purposes of this program, “Homeowner shall mean that person, or persons jointly, who has/have legal title to an eligible dwelling. ‘Homeowner’ shall also mean and include a person, or persons jointly, who is/are the trustor(s) and beneficiary(ies) during his/her/their life or lives of the trust estate under a ‘Family’ or ‘Living’ Trust.”
Grant Terms: Grants may not be combined with any other type of program assistance. Applicants may only receive one grant during a 10-year period. The recipient must hold the property for at least a 12-month term or the Grant must be repaid in full. The property owner must enter into an affordability covenant, in the form of a trust deed for a 10-year period. The Grant obligation would be forgiven in equal amounts (1/10 of grant amount) over a 10-year period. If the property is sold during the 10-year period to another qualified recipient (very low income family or person) the covenant can be transferred to the new owner. If the property is sold before the end of the 10-year period to a non-qualified purchaser or is no longer in compliance (i.e. not occupied by Grant Recipient) or the new owner did not want to assume the covenant (trust deed), the remaining grant obligation would become due and payable to the Agency with such proceeds returning to the Housing Fund. A non-qualified purchaser is a person or family whose annual income exceeds the “Very Low Income” definition as defined by State Law (see Appendix 1).

Security: Grant Covenants will be in a subordinate position only to the existing trust deeds. The Grant will be secured by trust deed and shall not be subordinated to any loan due to refinancing.

The Agency may consider subordinating its position under the following conditions:

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 4 of 20 • A Fair Market appraisal of the property is obtained by the lender, the cost of which will be paid by the Homeowner.
• A copy of the appraisal is submitted to the Agency for its review. • All debt on the property does not exceed 80% of the property value.

The Homeowner does not receive cash out of the new loan unless the owner can prove that the cash will be used only to cure an emergency situation pertaining to the condition of the property or will be used for medical reasons, which is verified by the Agency. The cash out of the refinancing may not be used to consolidate existing household or credit card bills.

Title: A Homeowner who is a trustor/beneficiary under a Family or Living Trust shall submit to the Agency’s Executive Director, on each subsequent anniversary date of the Grant provided hereunder, a declaration executed under penalty of perjury under the laws of the State of California attesting to the fact that the Trust has not been modified and that the trustor/beneficiary is still the beneficiary under the trust. Failure to submit such a declaration annually shall be deemed a default under these Guidelines.

Cost of Grant: Homeowner costs associated with processing the Grant (title policy, escrow, notary, recording documents, appraisals, loan processing fee, and credit reports) will be paid for from Grant proceeds. If a Grant is cancelled during the application process, any funds expended by the Agency in conjunction with the Grant application (i.e. appraisal cost) are to be reimbursed by the property owner; if the Agency has not expended such funds but costs have been incurred, payment is the responsibility of the property owner and the cost shall be deducted from the property owner’s deposit.

Permitted uses for Grant Funds: The Grant proceeds may be used for rehabilitation activities in the following order of priority.
• First - To Correct All Code Violations - Electrical, plumbing, heating and air conditioning, and structural building deficiencies that are in violation of current building codes.

Correction of any safety problems not covered by codes, such as broken windows, lack of window screens, doors and the provision of facilities for handicapped access. • Second - To Refurbish Exterior Items - New roofs, rain gutters, conversion of carports to garages, garage and entry door replacement, fencing replacement, and driveway/walkway repairs.
• Third - Exterior Cosmetic Improvements - Repainting, replacing dried or broken landscape materials and/or inoperable irrigation systems, and replacing broken or damaged awning improvements.
• Fourth - Security Improvements - Upgrade door and window locks, installing security lighting and doors and security-related fencing.

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 5 of 20 • Fifth - Energy Efficiency Improvements - Heating and cooling system replacement/upgrades, install insulation, ceiling fans, weather stripping, water heater replacement, and low flow plumbing fixtures.
• Sixth - Interior Improvements (necessary to improve general living conditions) - Interior paint, wall coverings, new flooring, repair of existing hardwood flooring, needed kitchen appliances (built in only), replacement of deteriorated kitchen or bathroom cabinets, replacement of counter tops with mid grade tile or Formica, replacement of inoperative lighting fixtures etc. Such items would be allowed only at mid grade quality. • Improvements that are not to be funded by Grant - Indoor and outdoor fireplaces, pools, Jacuzzis, hardwood flooring, expensive counter tops, washers, dryers, barbecue pits, flower boxes, greenhouses, family rooms, new patios or deck construction, decorator planters, custom concrete work on driveways and walkways, detached workshops and/or other nonpermanent structures and improvements considered to be a luxury as determined by the Executive Director.
• Work Conducted Under Program – All work conducted under the Grant must be performed with approved building permits and by state licensed contractors. Building permit fees shall not be waived by the City.

Emergency Work: The Executive Director may authorize up to $2,500 for emergency repairs while a grant application is being processed. In the event an emergency grant is approved, the Executive Director will report such grant to the Agency Board within 10 days thereafter.

Deferred Housing Improvement Loans- (“Deferred Improvement Loans”) (Change to loan amount)
Budget: Annual allocation to be determined pursuant to the Agency’s budget process and in conformance with the Agency Five –Year Implementation Plan.

Goal: To provide very low, low and moderate-income residents with sufficient funds to address health and safety deficiencies, exterior deterioration of their properties, and if funds are available, fund other needed improvements to improve the quality of their lives through a deferred two percent (2%) interest loan mechanism.

Deferred Loan Maximum: Deferred Loan amounts are provided in a maximum amount that is less than 25% of the property’s after rehabilitation value not to exceed $50,000 for very low, low and moderate-income (up to 120% of median income) persons or households on a citywide basis. Deferred Loans are funded to first address health and safety issues and exterior deterioration, and secondly, other improvements that would improve the general character and living environment of the housing unit, including providing room additions to alleviate overcrowding.

The 2% simple interest is accrued and if the home is held for the 10-year covenant period both principal and interest are forgiven in full.

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 6 of 20 Interest Rate: The loan has a 2% interest rate.

Eligibility: Homeowner of a single –family home with an annual income that does not exceed Moderate Income (120% of area median income adjusted for family size [see Appendix 1 for definitions of income category and what constitutes income]). The home to be improved must be the primary residence of the person or persons applying for the Deferred Improvement Loan. For the purposes of this program, Homeowner shall mean that person, or persons jointly, who has/have legal title to an eligible dwelling. Homeowner shall also mean and include a person, or persons jointly, who is/are the trustor(s) and beneficiary(ies) during his/her/their life or lives of the trust estate under a Family or Living Trust.

Deferred Loan Terms:
• The Deferred Loan shall accrue interest at two percent (2%) per annum on the unpaid or remaining Loan.
• The Deferred Loan may not be combined with any other type of program assistance.

Applicants may only receive one Deferred Loan during a 10-year period. The recipient must hold the property for a 12-month term or the Deferred Loan must be repaid in full with interest.
• The Homeowner must enter into an affordability covenant, in the form of a trust deed/promissory note to secure the 10-year obligation. The Loan obligation, including accrued interest, would be forgiven equally over a 10-year period. Affordability covenants are recorded against the property and apply to all subsequent purchasers. • If the property is sold before the end of the 10 year period to a non-qualified purchaser, or the owner fails to occupy the property as their principal residence, the Homeowner shall repay to the Housing Fund the remaining Loan obligation, including principal and interest.

Security: Total of Homeowners existing trust deed(s) and new Deferred Loan may not exceed 95% of the value of the property after improvements. Deferred Loans will be secured by a trust deed and shall not be subordinated to any loan due to refinancing. The Agency may consider subordinating its position under the following conditions:
• A Fair Market appraisal of the property is obtained by the lender, the cost of which will be paid by the Homeowner.
• A copy of the appraisal is submitted to the Agency for its review. • All debt on the property does not exceed 80% of the property value. • The Homeowner does not receive cash out of the new loan unless the owner can prove that the cash will be used only to cure an emergency situation pertaining to the property

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 7 of 20 or will be used for medical reasons, which is verified by the Agency. The cash out of the refinancing may not be used to consolidate existing household or credit card bills. • If a Homeowner has sufficient equity in the property to provide a total loan-to- value ratio on the property that is less than 60%, the Agency will subordinate to a new loan that will allow the owner to access their equity in an amount that will maintain the 60% loan-to-value ratio.

Title: A Homeowner who is a trustor/beneficiary under a Family or Living Trust shall submit to the Agency’s Executive Director, on each subsequent anniversary date of the Loan provided hereunder, a declaration executed under penalty of perjury under the laws of the State of California attesting to the fact that the Trust has not been modified and that the trustor/beneficiary is still the beneficiary under the trust. Failure to submit such a declaration annually shall be deemed a default under these Guidelines.

Cost of Loan: Homeowner costs associated with processing the Loan (appraisals, loan processing fee, credit reports, title policy, escrow, notary, recording documents) will be paid for from Loan proceeds. If a loan is cancelled during the application process, any funds expended by the Agency in conjunction with that loan application (i.e. appraisal cost) are to be reimbursed by the property owner; if the Agency has not expended such funds but costs have been incurred, payment is the responsibility of the property owner and the cost shall be deducted from the property owner’s deposit.

Permitted uses for the Deferred Loan Funds: Deferred Loan proceeds may be used for rehabilitation activities in the following order of priority. • First - To Correct All Code Violations - Electrical, plumbing, heating and air conditioning, and structural building deficiencies that are in violation of current building codes.

Correction of any safety problems not covered by codes, such as broken windows, missing window screens, doors and the provision of facilities for handicapped access. • Second - To Refurbish Exterior Items - New roofs, rain gutters, conversion of carports to garages, garage and entry door replacement, fencing replacement, and driveway/walkway repairs.
• Third - Alleviate Overcrowding - Based upon the overcrowding standards set forth in the United States Department of Housing and Urban Development “Public Housing Occupancy Handbook” Chapter 5 b (attached as Appendix 2), fund bedroom additions to alleviate overcrowding. Additionally, if a second bathroom does not exist in a home of four bedrooms or more and each bedroom is occupied, an additional bathroom may be provided. o Because overcrowding is a condition determined by the makeup of a household, no limitation is placed on the age of the structure. Therefore, if a household is deemed overcrowded pursuant to the above noted HUD standards, and the house was built in the 1980s or 1990s, the household would be eligible for assistance if the income

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 8 of 20 requirements are met and plans to add an additional bedroom meet planning and zoning requirements of the City.
• Fourth - Exterior Cosmetic Improvements - Repainting, replacing dried or broken landscape materials and/or inoperable irrigation systems, and replacing broken or damaged awning improvements.
• Fifth - Security Improvements - Upgrade door and window locks, installing security lighting and doors and security-related fencing.
• Sixth - Energy Efficiency Improvements - Heating and cooling system replacement/upgrades, install insulation, ceiling fans, weather stripping, water heater replacement, and low flow plumbing fixtures.
• Seventh - Interior Improvements (necessary to improve general living conditions) - Interior paint, wall coverings, new flooring, repair of existing hardwood flooring, needed kitchen appliances (built in only), replacement of deteriorated kitchen or bathroom cabinets, replacement of counter tops with mid-grade tile or Formica, replacement of inoperative lighting fixtures etc. All such interior items would be allowed only at mid- grade quality. • Improvements that are not to be funded by Loan - Indoor and outdoor fireplaces, pools, Jacuzzis, hardwood flooring, expensive counter tops, washers, dryers, barbecue pits, flower boxes, greenhouses, family rooms, new patios or deck construction, decorator planters, custom concrete work on driveways and walkways, detached workshops and/or other nonpermanent structures and improvements considered to be a luxury as determined by the Executive Director.
• Work Conducted Under Program – All work conducted under the Loan must be performed with approved building permits and by state licensed contractors. Building permit fees shall not be waived by the City.

Substantial Rehabilitation Housing Improvement Loans (“SR Loans”) (Change to loan amount, covenant term, shared equity provision added)
Budget: Annual allocation to be determined pursuant to the Agency’s budget process and in conformance with the Agency Five –Year Implementation Plan.

Goal: To provide sufficient funds to rehabilitate homes that require substantial rehabilitation (as defined by the CRL), which are owned and occupied by very low, low and moderate-income households.

Substantial Rehabilitation (“SR”) Loan Minimum and Maximum: SR Loan amounts shall be provided in amounts of a minimum of 25% of the after rehabilitation value up to a maximum of $100,000 for very low, low and moderate-income (up to 120% of median income)

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 9 of 20 persons or households on a citywide basis. SR Loans are funded to address severe cases of deterioration or overcrowding. Loan proceeds must first address health and safety issues, overcrowding and exterior deterioration, and secondly, other improvements that would improve the general character and living environment of the housing unit, including providing room additions to alleviate overcrowding. Funds can also be used to abate illegal garage conversions.

Properties may only receive one SR Loan during the 45-year affordability covenant period.

Loans are secured by a Deed of Trust and carry a 3% simple interest rate that is accrued. No loan payments are made. The property must be held for a minimum of 12 months or all Loan Funds, including principal and interest, must be repaid. The SR Loan amount and 3% interest will be discounted in equal amounts each year over a period of 20 years that Homeowner occupies dwelling. A Deed of Trust shall secure the loan.

Interest Rate: The loan has a 3% interest rate.

Eligibility: Homeowners of a single–family home with an annual income that does not exceed Moderate Income (120% of area median income adjusted for family size [see Appendix 1 for definitions of income category and what constitutes income]). The home to be improved must be the primary residence of the person or persons applying for the SR Loan. For the purposes of this program, Homeowner shall mean that person, or persons jointly, who has/have legal title to an eligible dwelling. Homeowner shall also mean and include a person, or persons jointly, who is/are the trustor(s) and beneficiary(ies) during his/her/their life or lives of the trust estate under a Family or Living Trust.

Substantial Rehabilitation Loan Terms:
• The SR Loan shall accrue interest at three (3%) percent per annum on the unpaid or remaining Loan amortized over 20 years.
• The SR Loan may not be combined with any other type of program assistance. Applicants may only receive one SR Loan during a 45-year period. The recipient must hold the property for a 12-month term or the Loan must be repaid in full with interest. • The Homeowner must enter into an affordability covenant, in the form of a trust deed/promissory note to secure the 45-year affordability obligation. The Loan obligation, including accrued interest, would be forgiven equally over a 20-year period. Affordability covenants are recorded against the property and shall apply to all subsequent purchasers.
• If the property becomes non-compliant by being sold before the end of the 45-year period to a non-qualified purchaser or the owner fails to occupy the property as their principal residence, the Homeowner shall repay to the Housing Fund the remaining Loan obligation, plus a percentage of the increased equity the property owner realized as a result of the SR Loan.

Shared Equity: In the event of a sale to a non-qualified purchaser, or the property fails to be owner occupied, in addition to the remaining loan obligation, the property owner and

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 10 of 20 Agency will share any increase in equity that occurred from the time of the SR Loan, in order for the Agency to recover funds for other low and moderate income housing. The percentage of equity increase the property owner would share with the Agency as a result of a prohibited transfer would be calculated with the percentage retained by the owner increasing throughout the term of the affordability covenant. The shared equity percentage which may be retained by the property owner has been adjusted to make provision for sale or transfer of the property to a non-qualified purchaser as a result of unanticipated life changes such as death or divorce.

Year of
Transfer
Percent of Equity Increase
Retained by Owner
Years Other Divorce Death
0 – 15 0% 0% 0%
16 – 18 2% 6% 9%
19 – 21 5% 9% 12%
22 – 24 9% 13% 16%
25 – 27 13% 17% 20%
28 – 30 17% 21% 24%
31 – 33 23% 27% 30%
34 – 36 29% 33% 36%
37 – 39 40% 44% 47%
40 – 42 69% 73% 76%
43 – 45 100% 100% 100%
Example: A property with an original appraised value of $150,000 at the time the SR Loan application was processed increased to an updated appraised value of $200,000 as a result of a $50,000 SR Loan. At the time of sale to a non-qualified purchaser 19 years after the rehab work was completed, the property has an appraised value of $250,000.

In this case, in addition to the balance of the SR Loan, which would be 1/20 of the $50,000 loan (or $2,500), the owner would be required to repay $47,500 to the Agency (95% of the $50,000 increase in value from $200,000 after the completing the improvements from the substantial rehab loan to $250,000 at the time the property is sold; the owner retains 5% of the increased value). Therefore, the owner would repay a total of $50,000 ($2,500 loan balance plus $47,500 shared equity). If the sale took place as a result of the death of a spouse, the owner would be required to repay the loan balance of $2,500 plus $44,000 (a total of $46,500) to the Agency (88% of the $50,000 increase in value; the owner retains 12% of the increased value).
45 Year Affordability Covenant Loss Mitigation Formula
Notwithstanding anything else to the contrary in these Guidelines, if the Homeowner elects to sell the property at market rate as a result of any reason other than (1) Homeowner first attempting to sell the property to a qualified purchaser, (2) Homeowner then offering to sell the property to the Agency if Homeowner should fail to sell to a qualified purchaser, and (3) Agency declining to purchase the property, all in compliance with any requirements and time

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 11 of 20 restrictions set out in the affordability covenant (as is permitted pursuant to the Agency Board’s approval of the 45 Year Affordability Covenant Loss Mitigation Formula on November 13, 2024), then the following shall ensue for any such sales that occur:

1. Homeowner shall pay back to Agency the full amount of the original loan;

2. Homeowner shall pay simple interest on the loan at 3% computed from commencement of the loan period until sale of the property;

3. Agency shall receive zero percent of any increase in equity;

4. Homeowner shall be charged an early termination fee in the amount of 10% of the original loan amount;

5. All proceeds accruing to the Agency shall be reinvested into the Housing Fund for use toward future affordable housing projects;

6. Agency shall execute and deliver to Homeowner, and cause to be recorded, a Substitution of Trustee and Full Reconveyance, reconveying any interest held in the property by Agency under the applicable Deed of Trust; and

7. Homeowner and Agency shall terminate the affordability covenant and take all other steps needed to perfect such termination.

The above is illustrated below as an example, assuming $100,000 loan beginning 2007 and sale at market rate of $600,000.

Original Loan Amount: $100,000
Loan Type: Moderate Income Substantial Rehabilitation
Recording Date of Loan Documents: 2007

OWED TO HOUSING AUTHORITY
Original Loan $100,000
Interest at 3%for life of loan (17yrs) $51,000
Agency's Share of Appreciation $0.00
Early Termination Charge (10% of Loan) $10,000
TOTAL OWED TO AGENCY $161,000

PROCEEDS TO SELLER
Sales Price $600,000
Less Owed to Agency $161,000
Less Escrow & Title $10,000
Less Commissions $30,000
Total Proceeds $399,000
Security: Total of Homeowners’ existing trust deed(s) and new SR Loan may not exceed 95% of the value of the property after improvements. SR Loans will be secured by a trust deed and shall not be subordinated to any loan due to refinancing. The Agency may consider subordinating its position under the following conditions:

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 12 of 20 • A Fair Market appraisal of the property is obtained by the lender, the cost of which will be paid by the Homeowner.
• A copy of the appraisal is submitted to the Agency for its review. • All debt on the property does not exceed 80% of the property value. • The Homeowner does not receive cash out of the new loan unless the owner can prove that the cash will be used only to cure an emergency situation pertaining to the condition of the property or will be used for medical reasons, which is verified by the Agency. The cash out of the refinancing may not be used to consolidate existing household or credit card bills.
• If a Homeowner has sufficient equity in the property to provide a total loan-to- value ratio on the property that is less than 60%, the Agency will subordinate to a new loan that will allow the owner to access their equity in an amount that will maintain the 60% loan-to-value ratio.

Permitted uses for the Substantial Rehab Loan Funds: Loan proceeds may be used for substantial rehabilitation activities in the following order of priority. • First - To Correct All Code Violations - Electrical, plumbing, heating and air conditioning, and structural building deficiencies that are in violation of current building codes. Correct planning or zoning code violations, such as illegal garage conversions. Correction of any safety problems not covered by codes, such as broken windows, doors and the provision of facilities for handicapped access.
• Second - Alleviate Overcrowding - Based upon the overcrowding standards set forth in the United States Department of Housing and Urban Development “Public Housing Occupancy Handbook” Chapter 5 b (attached as Appendix 2) fund bedroom addition to alleviate overcrowding. . Additionally, if a second bathroom does not exist in a home of

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 13 of 20 four bedrooms or more and each bedroom is occupied, an additional bathroom may be provided.
o Because overcrowding is a condition determined by the makeup of a household, no limitation is placed on the age of the structure. Therefore, if a household is deemed overcrowded pursuant to the above noted HUD standards, and the house was built in the 1980s or 1990s, the household would be eligible for assistance if the income requirements are met and their plans to add an additional bedroom meet planning and zoning requirements of the City.
• Third - To Refurbish Exterior Items - New roofs, rain gutters, conversion of carports to garages, garage and entry door replacement, fencing replacement, and driveway/walkway repairs.
• Fourth - Exterior Cosmetic Improvements - Repainting, replacing dried or broken landscape materials and/or inoperable irrigation systems, and replacing broken or damaged awning improvements.
• Fifth - Security Improvements - Upgrade door and window locks, installing security lighting and doors and security-related fencing.
• Sixth - Energy Efficiency Improvements - Heating and cooling system replacement/upgrades, install insulation, ceiling fans, weather stripping, water heater replacement, and low flow plumbing fixtures.
• Seventh - Interior Improvements (necessary to improve general living conditions) - Interior paint, wall coverings, new flooring, repair of existing hardwood flooring, needed kitchen appliances (built in only), replacement of deteriorated kitchen or bathroom cabinets, replacement of counter tops with mid-grade tile or Formica, replacement of inoperative lighting fixtures etc. All such interior items would be allowed only at mid- grade quality. • Improvements that are not to be funded by Loan - Indoor and outdoor fireplaces, pools, Jacuzzis, hardwood flooring, expensive counter tops, washers, dryers, barbecue pits, flower boxes, greenhouses, family rooms, new patios or deck construction, decorator planters, custom concrete work on driveways and walkways, detached workshops and/or other nonpermanent structures and improvements considered to be a luxury as determined by the Executive Director.
• Work Conducted Under Program – All work conducted under the Loan shall be performed with approved building permits and by state licensed contractors. Building permit fees shall not be waived by the City.

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 14 of 20 Below Market Rate Loans for Tenant Occupied Units (“BMR Loans”) (Change to loan amount)
Budget: Annual allocation to be determined pursuant to the Agency’s budget process and in conformance with the Agency Five –Year Implementation Plan.

Goal: To assure that renters live in safe and sanitary conditions.

Below Market Rate Loans for Tenant Occupied Units: Provides loans to property owners for general improvements to renter-occupied dwelling units. Maximum loan amounts are $25,000 per unit, not to exceed a total of $100,000; the loan amount must be less than 25% of the after rehabilitation value. Qualification is based upon tenant’s income being less than 120% of County median income (51% of units must qualify). Owners who have breached or violated any affordability covenant of any loan or grant provided by the Agency at any time shall not be eligible to receive a BMR Loan. This program will provide Below Market Rate Loans with interest rates of 6% per annum. BMR Loan funds are to used to first address health and safety issues and exterior deterioration, and secondly, other improvements that would improve the general character and living environment of the housing unit. Funds will be recaptured by monthly payments secured by a Deed of Trust. The BMR Loan may not be combined with any other programs. An agreement must be signed by the owner to rent the units at affordable rental rates for a period of 15 years.

The Agency will monitor rental rate affordability and tenant income level annually as provided for in the CRL. At any time during the term of the BMR Loan, the Agency may require, and the owner and renters shall provide, proof and confirmation of such information.

BMR Loan Terms:
• The BMR Loan shall accrue interest at six (6%) percent per annum on the unpaid or remaining balance.
• The BMR Loan recipient (“Property Owner”) must hold the property for a 12-month term or the Loan must be repaid in full with interest.
• The Property Owner must enter into an affordability covenant, in the form of a trust deed/promissory note to secure the 15 year obligation to rent at least 51% of the units to persons or families of low to moderate income and to maintain affordable rents on all of the property units. Affordable rents are those rents as defined by the Section 50053 of the California Health and Safety Code and described in Appendix 1 of these Guidelines. The Loan obligation, including accrued interest, will be amortized over the 15-year period of the loan. Affordability covenants are recorded against the property and shall apply to all subsequent purchasers for the term of the covenant, unless released pursuant to state law.
• If the Property Owner fails to comply with the loan terms, specifically that 51% of the units are occupied by low to moderate income persons or households and that all units are

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 15 of 20 rented at affordable rents per Section 50053 of the Health and Safety Code, then the Owner would be in non-compliance.
• If the Owner is in non-compliance, the BMR Loan becomes immediately due and payable and the Agency may take other actions to enforce the affordability covenant.

Security: Total of the subject property’s existing trust deed(s) and new BMR Loan may not exceed 95% of the value of the property after improvements. BMR Loans will be secured by a trust deed and shall not be subordinated to any loan due to refinancing. The Agency may consider subordinating its position under the following conditions:
• A Fair Market appraisal of the property is obtained by the lender, the cost of which will be paid by the Property Owner.
• A copy of the appraisal is submitted to the Agency for its review. • All debt on the property does not exceed 80% of the property value. • The Property Owner does not receive cash out of the new loan unless the owner can prove that the cash will be used only to cure an emergency situation pertaining to the condition of the property or will be used for medical reasons, which is verified by the Agency. The cash out of the refinancing may not be used to consolidate existing household or credit card bills.

Title: A Property Owner who is a trustor/beneficiary under a Family or Living Trust shall submit to the Agency’s Executive Director, on each subsequent anniversary date of the Loan provided hereunder, a declaration executed under penalty of perjury under the laws of the State of California attesting to the fact that the Trust has not been modified and that the trustor/beneficiary is still the beneficiary under the trust. Failure to submit such a declaration annually shall be deemed a default under these Guidelines.

Cost of Loan: Property Owner cost associated with processing the Loan (appraisals, loan processing fee, credit reports, title policy, escrow, notary, recording documents) will be paid for from Loan proceeds. If a loan is cancelled during the application process, any funds expended by the Agency in conjunction with that loan application (i.e. appraisal cost) are to be reimbursed by the property owner; if the Agency has not expended such funds but costs have been incurred, payment is the responsibility of the property owner and the cost shall be deducted from the property owner’s deposit.

Permitted uses for the BMR Loan Funds: Loan proceeds may be used for substantial rehabilitation activities in the following order of priority. • First - To Correct All Code Violations - Electrical, plumbing, heating and air conditioning, and structural building deficiencies that are in violation of current building codes. Correct planning or zoning code violations, such as illegal garage conversions.

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 16 of 20 Correction of any safety problems not covered by codes, such as broken windows, doors and the provision of facilities for handicapped access. • Second - To Refurbish Exterior Items - New roofs, rain gutters, conversion of carports to garages, garage and entry door replacement, fencing replacement, and driveway/walkway repairs.
• Third - Exterior Cosmetic Improvements - Repainting, replacing dried or broken landscape materials and/or inoperable irrigation systems, and replacing broken or damaged awning improvements.
• Fourth - Security Improvements - Upgrade door and window locks, installing security lighting and doors and security-related fencing.
• Fifth - Energy Efficiency Improvements - Heating and cooling system replacement/upgrades, install insulation, ceiling fans, weather stripping, water heater replacement, and low flow plumbing fixtures.
• Sixth - Interior Improvements (necessary to improve general living conditions) - Interior paint, wall coverings, new flooring, repair of existing hardwood flooring, needed kitchen appliances (built in only), replacement of deteriorated kitchen or bathroom cabinets, replacement of counter tops with mid-grade tile or Formica, replacement of inoperative lighting fixtures etc. All such interior items would be allowed only at mid-grade quality. • Improvements that are not to be funded by Loan - Indoor and outdoor fireplaces, pools, Jacuzzis, hardwood flooring, expensive counter tops, washers, dryers, barbecue pits, flower boxes, greenhouses, family rooms, new patios or deck construction, decorator planters, custom concrete work on driveways and walkways, detached workshops and/or other nonpermanent structures and improvements considered to be a luxury as determined by the Executive Director.
• Work Conducted Under Program – All work conducted under the Loan shall be performed with approved building permits and by state licensed contractors. The City shall not waive building permit fees
Substantial Rehabilitation Below Market Rate Loans for Tenant Occupied Units (“SRBMR Loans”) (Section added; reflects change to loan amount, covenant term) Budget: Annual allocation to be determined pursuant to the Agency’s budget process and in conformance with the Agency Five –Year Implementation Plan.

Goal: To assure that renters live in safe and sanitary conditions.

Below Market Rate Loans for Tenant Occupied Units: Provides loans to property owners for general improvements to renter-occupied dwelling units. Maximum loan amounts are $25,000

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 17 of 20 per unit, not to exceed a total of $100,000; the loan amount must constitute 25% or more of the after rehabilitation value of the property and an affordability covenant of 55 years is required. Qualification is based upon tenant’s income being less than 120% of County median income (51% of units must qualify). Owners who have breached or violated any affordability covenant of any loan or grant provided by the Agency at any time shall not be eligible to receive a SR-BMR Loan. This program will provide Below Market Rate Loans with interest rates of 6% per annum. SR-BMR Loan funds are to used to first address health and safety issues and exterior deterioration, and secondly, other improvements that would improve the general character and living environment of the housing unit. Funds will be recaptured by monthly payments secured by a Deed of Trust. The SR-BMR Loan may not be combined with any other programs. An agreement must be signed by the owner to rent the units at affordable rental rates for a period of 55 years.

The Agency will monitor rental rate affordability and tenant income level annually as provided for in the CRL. At any time during the term of the SR-BMR Loan, the Agency may require, and the owner and renters shall provide, proof and confirmation of such information.

SR-BMR Loan Terms:
• The SR-BMR Loan shall accrue interest at six (6%) percent per annum on the unpaid or remaining balance amortized over 15 years.
• The SR-BMR Loan recipient (“Property Owner”) must hold the property for a 12-month term or the Loan must be repaid in full with interest.
• The Property Owner must enter into an affordability covenant, in the form of a trust deed/promissory note to secure the 55 year affordability obligation to rent at least 51% of the units to persons or families of low to moderate income and to maintain affordable rents on all of the property units. Affordable rents are those rents as defined by the Section 50053 of the California Health and Safety Code and described in Appendix 1 of these Guidelines.

The Loan obligation, including accrued interest, will be amortized over the 15-year period of the loan. Affordability covenants are recorded against the property and shall apply to all subsequent purchasers for the term of the covenant, unless released pursuant to state law.
• If the Property Owner fails to comply with the loan terms, specifically that 51% of the units are occupied by low to moderate income persons or households and that all units are rented at affordable rents per Section 50053 of the Health and Safety Code, then the Owner would be in non-compliance.
• If the Owner is in non-compliance, the BMR Loan becomes immediately due and payable and the Agency may take other actions to enforce the affordability covenant.

Security: Total of the subject property’s existing trust deed(s) and new SR-BMR Loan may not exceed 95% of the value of the property after improvements. SR-BMR Loans will be secured by a trust deed and shall not be subordinated to any loan due to refinancing. The Agency may consider subordinating its position under the following conditions:

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 18 of 20 • A Fair Market appraisal of the property is obtained by the lender, the cost of which will be paid by the Property Owner.
• A copy of the appraisal is submitted to the Agency for its review. • All debt on the property does not exceed 80% of the property value. • The Property Owner does not receive cash out of the new loan unless the owner can prove that the cash will be used only to cure an emergency situation pertaining to the condition of the property or will be used for medical reasons, which is verified by the Agency. The cash out of the refinancing may not be used to consolidate existing household or credit card bills.
• If the Property Owner has sufficient equity in the property to provide a total loanto-value ratio on the property that is less than 60%, the Agency will subordinate to a new loan that will allow the owner to access their equity in an amount that will maintain the 60% loan-to-value ratio.

Cost of Loan: Property Owner costs associated with processing the Loan (appraisals, loan processing fee, credit reports, title policy, escrow, notary, recording documents) will be paid for from Loan proceeds. If a loan is cancelled during the application process, any funds expended by the Agency in conjunction with that loan application (i.e. appraisal cost) are to be reimbursed by the property owner; if the Agency has not expended such funds but costs have been incurred, payment is the responsibility of the property owner and the cost shall be deducted from the property owner’s deposit.

Permitted uses for the SR-BMR Loan Funds: Loan proceeds may be used for substantial rehabilitation activities in the following order of priority. • First - To Correct All Code Violations - Electrical, plumbing, heating and air conditioning, and structural building deficiencies that are in violation of current building codes. Correct planning or zoning code violations, such as illegal garage conversions. Correction of any safety problems not covered by codes, such as broken windows, doors and the provision of facilities for handicapped access.
• Second - To Refurbish Exterior Items - New roofs, rain gutters, conversion of carports to garages, garage and entry door replacement, fencing replacement, and driveway/walkway repairs.

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 19 of 20 • Third - Exterior Cosmetic Improvements - Repainting, replacing dried or broken landscape materials and/or inoperable irrigation systems, and replacing broken or damaged awning improvements.
• Fourth - Security Improvements - Upgrade door and window locks, installing security lighting and doors and security-related fencing.
• Fifth - Energy Efficiency Improvements - Heating and cooling system replacement/upgrades, install insulation, ceiling fans, weather stripping, water heater replacement, and low flow plumbing fixtures.
• Sixth - Interior Improvements (necessary to improve general living conditions) - Interior paint, wall coverings, new flooring, repair of existing hardwood flooring, needed kitchen appliances (built in only), replacement of deteriorated kitchen or bathroom cabinets, replacement of counter tops with mid-grade tile or Formica, replacement of inoperative lighting fixtures etc. All such interior items would be allowed only at mid-grade quality. • Improvements that are not to be funded by Loan - Indoor and outdoor fireplaces, pools, Jacuzzis, hardwood flooring, expensive counter tops, washers, dryers, barbecue pits, flower boxes, greenhouses, family rooms, new patios or deck construction, decorator planters, custom concrete work on driveways and walkways, detached workshops and/or other nonpermanent structures and improvements considered to be a luxury as determined by the Executive Director.

Work Conducted Under Program – All work conducted under the Loan shall be performed with approved building permits and by state licensed contractors. The City shall not waive building permit fees
Agency Home Purchase-Improvement and Resale (“Agency Purchase & Resale”) (Change to covenant term, shared equity provision added)
Budget: Annual allocation to be determined pursuant to the Agency’s budget process and in conformance with the Agency Five –Year Implementation Plan.

Goal: To increase the number of affordable housing units within the City and address structural deterioration.

The Agency will actively seek the purchase of homes that come on the market for resale. The Agency would purchase the homes, rehabilitate them if necessary, and then resell them to very low, low- or moderate-income households structuring the purchase to ensure that the housing payment is affordable to the purchaser.

The Agency shall take a first trust deed on the property for the amount determined to be affordable to the purchaser. A Second Trust Deed shall be placed on the unit to cover the amount representing the difference between the purchase price of the unit and the Agency’s First

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U:\Housing\Rehab Loan-Grant Program\Rehab Loan Programs1.doc Page 20 of 20 Trust Deed. (The total of the two would equal the market value of the home.) This will ensure affordability as required by the CRL. The First Trust Deed would be a 30 year fully amortized mortgage at an interest rate that is equal to the “FNMA 30 Year Fixed Rate, 30 Day Delivery First Trust Deed Loan”. The Second Trust Deed shall have a 3% interest rate. The Second Trust Deed shall be discounted in equal amounts each year over a period of 45 years and be secured by a Deed of Trust. A covenant shall be placed on the First and Second Trust Deeds requiring that if the property is sold within the term of the Trust Deeds, the unit shall either have to be sold to a lowto moderate-income household or the loan recipient shall repay the remaining portion of the Second Trust Deed, including principal and interest, in full. If the property is sold to a nonqualified buyer and the property increased in value, the Agency and the owner shall share proportionately in the increase resulting from the appreciation.

Attachments
Appendix 1: Affordable Housing Information

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EQUITY SHARING POLICY
(SUBSTANTIAL REHABILITATION PROGRAM)
(FIRST TIME HOMEBUYER PROGRAM)
Adopted November 13, 2024
Section 33334.3 of the Health and Safety Code permits equity sharing programs to be established allowing sale of owner-occupied units prior to expiration of the 45-year affordability period established through a Regulatory Agreement entered into between an agency and affordable homeowner for a price in excess of the affordable housing price, so long as the agency’s investment of moneys from the Low and Moderate Income Housing Fund is protected, including through implementation of a schedule of equity sharing that permits seller and the agency to retain a portion of sale proceeds based on length of occupancy prior to sale. This means that so long as the agency’s loan or any current balance of the loan is paid back (including any interest), the agency’s investment of moneys from the Low and Moderate Income Housing Fund is protected. Any excess monies collected from the sale retained by the agency are to be deposited in the Low and Moderate Income Housing Fund.

Historically, the equity sharing practices of the Irwindale Housing Authority (“Authority”) provided for the Authority to retain a significant majority of the excess sale proceeds until year 40 of the 45-year affordable housing period which, when compared against several other affordable housing programs within the State, was within the highest end of the spectrum. Accordingly, it was very difficult for affordable homeowners in the City of Irwindale to build meaningful equity in their affordable homes towards improving their financial status which is one of the paramount objectives of affordable housing programs, including the Authority’s programs, throughout the State.

The Authority Board has now adopted and established equity sharing ratios under both the Substantial Rehabilitation Program (“SRP”) and First Time Homebuyer Program (“FTHP”) so that the percentage of the equity sharing appreciation amount (“ESAA”) retained by homeowners is now much larger than the amount allowed previously. For purposes of this Equity Sharing Policy, ESAA is the difference between the sale price that is in excess of the affordable housing price of what is allowable under the Regulatory Agreement and the original purchase price of the home paid by the affordable homeowner.

Substantial Rehabilitation Program Equity Sharing Ratio:

For the SRP, the Authority loan will be forgiven by 1/20 on an annual basis for 20 years after which time the entire loan will be forgiven. During that 20-year period, the equity sharing ratio (“ESR”) will be 10%, meaning the Authority will retain 10% of the ESAA and the homeowner will retain 90% of the ESAA; thereafter, until expiration of the 45-year period, the 10% ESR will decrease by 0.4% per annum.

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First Time Homebuyer Program Equity Sharing Ratio:

For the FTHP, the Authority loan will be forgiven by 1/30 on an annual basis for 30 years after which time the entire loan will be forgiven. During that 30-year period, the ESR will be 15%, meaning the Authority will retain 15% of the ESAA and the homeowner will retain 85% of the ESAA; thereafter, until expiration of the 45-year period, the 15% ESR will decrease by 1% per annum.

Examples of how the foregoing operates follow below. An overarching assumption in the examples is that the loan term for the Authority loan will be 20 years under the SRP and 30 years for the FTHP, the latter being an attempt to align with the typical private 30-year loan obtained by homeowners in a standard purchase of a home.

Assumption for Example 1:

SRP (for sales within first 20 years) and FTHP (for sales within first 30 years):
• $500,000 (sale price) – $400,000 (original purchase price) = $100,000 (ESAA).

Assumption for Example 2:

SRP (for sales after first 20 years) and FTHP (for sales after first 30 years):
• $600,000 (sale price) – $400,000 (original purchase price) = $200,000 (ESAA).

Substantial Rehabilitation Program Examples:

Loan Details:
• Loan period to be 20 years.
• Principal on the loan to be reduced by 5% (1/20) per annum during the 20-year period.
• The entire loan is forgiven after 20 years.

Equity Sharing Details:
• For the first 20 years of the loan, the ESR to be retained by the Authority is 10% of the ESAA.
• For years 21 through 45, the ESR will decrease by 0.4% per annum starting in year 21 until year 45 is reached.

Example 1:
• Assume ESAA of $100,000 and sale during year 5 of 45-year term. Under this assumption:
o The homeowner would need to repay the remaining balance of the Authority loan; and

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o After applying a 10% ESR to the $100,000 ESAA, the amount of sale proceeds retained by the Authority will be $10,000 and the homeowner retains the remaining $90,000.

Example 2:
• Assume ESAA of $200,000 and sale just after year 25 of 45-year term. Under this assumption:
o The Authority loan has been forgiven after 20 years. Therefore, the homeowner is not required to repay any portion of the loan. o After applying a 8% ESR (10% is reduced by 0.4% per year for 5 years resulting in an ESR of 8%) to the $200,000 ESAA, the amount of sale proceeds retained by the Authority is $16,000 and the homeowner retains the remaining $184,000.

First Time Homebuyer Program Examples:

Loan Details:
• Loan period to be 30 years.
• Principal on the loan to be reduced by 1/30 per annum during the 30-year period. • The entire loan is forgiven after 30 years.

Equity Sharing Details:
• For the first 30 years of the loan, the ESR to be retained by the Authority is 15% of the ESAA.
• For years 31 through 45, the ESR will decrease by 1% per annum starting in year 31 until year 45 is reached.

Example 1:
• Assume ESAA of $100,000 and sale during year 5 of 45-year term. Under this assumption:
o The homeowner would need to repay the remaining balance of the Authority loan; and
o After applying a 15% ESR to the $100,000 ESAA, the amount of sale proceeds retained by the Authority will be $15,000 and the homeowner retains the remaining $85,000.

Example 2:
• Assume ESAA of $200,000 and sale just after year 35 of 45-year term. Under this assumption:
o The Authority loan has been forgiven after 30 years. Therefore, the homeowner is not required to repay any portion of the loan.

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o After applying a 10% ESR (15% is reduced by 1% per year for 5 years resulting in an ESR of 10%) to the $200,000 ESAA, the amount of sale proceeds retained by the Authority is $20,000 and the homeowner retains the remaining $180,000.
45 Year Affordability Covenant Loss Mitigation Formula
Notwithstanding anything else to the contrary in this Equity Sharing Policy, if the homeowner provided a loan under the SRP elects to sell the property at market rate as a result of any reason other than (1) homeowner first attempting to sell the property to a qualified purchaser, (2) homeowner then offering to sell the property to the Authority if homeowner should fail to sell to a qualified purchaser, and (3) Authority declining to purchase the property, all in compliance with any requirements and time restrictions set out in the applicable Regulatory Agreement (as is permitted pursuant to the Authority Board’s approval of the 45 Year Affordability Covenant Loss Mitigation Formula on November 13, 2024), then the Authority shall receive zero percent of any increase in equity.

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Irwindale City CouncilNovember 13, 2024

Irwindale City Council
November 13, 2024