written agreements serve as essential tools to safeguard HOME investments, ensure regulatory compliance, and facilitate ongoing performance monitoring and enforcement.
When a program or project has been approved to receive HOME funding, Staff will coordinate with the City Attorney to develop an agreement to be executed (signed and dated) between all parties.
At minimum the agreement will include provisions that are in accordance with the HOME Final Rule at 24 CFR Part 92.
Required Provisions in Written Agreements (as applicable)
1. Use of HOME Funds
a. Description of the project or activity to be funded. b. Detailed budget and schedule for completion.
c. Duration of the agreement.
d. Statement of the amount and source of HOME funds to be used.
2. Affordability Requirements
a. Duration of the affordability period based on project type (rental or homeownership). b. Requirements for maintaining affordability through resale or recapture provisions (as applicable).
c. Rent limits and income targeting requirements for rental housing. d. Reference to the HOME affordability requirements at 24 CFR Part 92.252 (rental) or 24 CFR Part 92.254 (homeownership).
e. Use of the HOME Tenancy Addendum (24 CFR Part 92.253) for rental housing.
3. Program Income and Reversion of Assets
a. Requirement for return or reuse of program income.
b. Guidance on the use and accounting of program income. c. Terms for reversion of any remaining HOME funds, unexpended assets, or program income upon project completion or agreement termination. d. Statement of program income rules consistent with 24 CFR Part 92.503.
4. Matching Requirements (if applicable)
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a. Description of any required match contribution (if required under project terms).
5. Uniform Administrative Requirements
a. Compliance with 2 CFR Part 200 and applicable administrative, cost principle, and audit requirements.
b. Subrecipients, CHDOs, and contractors must comply with the federal procurement standards in 2 CFR 200.318– 327. All procurement transactions must be conducted to ensure full and open competition, avoid unnecessary or duplicative costs, and include consideration of lease versus purchase alternatives where appropriate. c. Suspension and termination rules per 2 CFR Part 200.339–200.340.
6. Other Federal Requirements
a. Non-discrimination and equal opportunity (e.g., Fair Housing Act, Section 504, Title VI, ADA).
b. Environmental review compliance (per 24 CFR Part 58). c. Intergovernmental review process exemption (24 CFR Part 92.357). d. Displacement, relocation, and acquisition (URA requirements). e. Labor standards (Davis-Bacon, if applicable).
f. Lead-based paint hazard reduction (24 CFR Part 35).
g. Conflict of interest and disclosure provisions (24 CFR Part 92.356). h. Violence Against Women Act (“VAWA”) compliance, including emergency transfer plans and notice obligations (24 CFR Part 92.359).
7. Affirmative Marketing and Outreach
a. Affirmative marketing requirements for projects with five ( 5) or more HOME -assisted units.
b. Minority and women-owned business outreach provisions.
8. Requests for Disbursement of Funds
a. Conditions under which HOME funds may be drawn (e.g., only when needed for eligible costs).
b. Process for submitting payment requests and documentation required. 144
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c. Statement that program income must be used before new HOME funds are disbursed.
9. Records and Reporting
a. Required documentation and records retention period. b. Description of required reports (e.g., beneficiary characteristics, financial reports, outcomes).
c. Right of the City or HUD to access records for monitoring or audit purposes.
10. Monitoring and Evaluation
a. City’s right to monitor project activities.
b. Requirements for regular performance reviews and corrective actions if necessary. c. Compliance with property inspections and financial reviews as applicable ( 24 CFR Part
92.504(d)).
11. Remedies for Breach or Non-Compliance
a. Provisions for corrective actions, termination of agreement, repayment of funds, or other remedies in the event of non-compliance or default. b. Explicit reference to enforcement authority per 2 CFR Part 200.339–200.340.
12. CHDO-Specific Requirements (if applicable)
a. CHDO certification maintenance.
b. Developer capacity, involvement of low -income community residents, and use of proceeds provisions (for CHDO development projects).
c. Use of CHDO proceeds, homebuyer limitations (e.g., 10% cap on homebuyer assistance in 24 CFR Part 92.300(a)(5)).
d. Agreement must contain CHDO-specific provisions in 24 CFR Part 92.504(c)(5).
13. Amendment Procedures
a. Conditions and process for modifying the agreement (e.g., scope, funding levels, timelines).
b. Documentation of mutual consent and written amendment.
14. Income Determination Method
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a. Specification of whether income is calculated using IRS Form 1040, Part 5 (Section 8 method), or other method under 24 CFR Part 92.203(b)(1). See Chapter 5
15. Close-Out Requirements
a. Steps to formally close out the agreement, including reporting, disbursement reconciliation, and asset disposition.
16. Roles and Responsibilities
a. Clear delineation of responsibilities between PJ and entity (subrecipient, CHDO, owner, or contractor).
b. Inclusion of monitoring access and cooperation obligations.
FIGURE 2-1: REQUIRED PROVISIONS PER PARTNER TYPE
REQUIRED PROVISION SUBRECIPIENT CHDO CONTRACTOR HOMEOWNER Use of HOME Funds ✔ ✔ ✔ ✔
Affordability (24 CFR
Part 92.252 or 24 CFR
Part 92.254)
✔ ✔
Program Income ✔ ✔
Uniform Administration
requirements (2 CFR Part
200)
✔ ✔ ✔
Project requirements (as
applicable in Subpart F) ✔ ✔ ✔ ✔
Property Standards (24
CFR Part 92.251 and 24
CFR Part 92.355)
✔ ✔ ✔ ✔
Other Program
Requirements (Subpart H
except 24 CFR Part
92.352 and 24 CFR Part
92.357)
✔ ✔ ✔ ✔
Affirmative Marketing (24
CFR Part 92.351) ✔ ✔ ✔
Requests for
Disbursement of Funds ✔ ✔ ✔ ✔
Reversion of Assets ✔ ✔
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Records and Reports ✔ ✔ ✔ ✔
Enforcement of the
Agreement (2 CFR Part
200.339–200.340)
✔ ✔ ✔ ✔
Duration of the
Agreement ✔ ✔ ✔ ✔
CHDO Provisions (24
CFR Part 92.300 and 24
CFR Part 92.301)
✔
Suggested Provisions
(not HOME
Requirements)
✔ ✔ ✔ ✔
Roles and
Responsibilities ✔ ✔ ✔ ✔
Description of the Project ✔ ✔ ✔ ✔
Performance Standards ✔ ✔ ✔ ✔
Conflict of Interest ✔ ✔ ✔ ✔
Monitoring ✔ ✔ ✔ ✔
Close-out Requirements ✔ ✔ ✔ ✔
Non-Compliance ✔ ✔ ✔ ✔
Fees Prohibition (24 CFR
Part 92.214(b) ✔ ✔
VAWA Compliance (24
CFR Part 92.359) ✔ ✔ ✔ ✔
Project Commitment
Specifics (Address,
Budget, Schedule, 24
CFR Part 92.504(c)(3))
✔
HOME Tenancy
Addendum (24 CFR Part
92.253)
✔ ✔ ✔ ✔
Income Calculation
Method (24 CFR Part
92.203(b)(1))
✔
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CHDO Role and 10%
Homebuyer Funds Limit
(24 CFR Part
92.300(a)(5))
✔
D. APPLICANT AND BENEFICIARY APPEAL PROCESS
Applicants or beneficiaries who wish to challenge a decision related to eligibility, funding, or program participation under the HOME Program may utilize the following process:
1. Informal Resolution
a. An applicant may request a meeting with the Housing Manager to review the decision and seek clarification.
b. If unresolved, the applicant may proceed to a formal written appeal.
2. Written Appeal Submission
a. A formal appeal must be submitted within 15 business days of the decision and include:
i. A statement identifying the decision being appealed
ii. Supporting documentation or explanation
iii. The requested remedy or outcome
b. Appeals must be submitted to the Director of Community Development, City of Lynwood
3. Review & Determination
a. The Director or designee will:
i. Review all documentation
ii. Conduct a meeting or hearing if needed
iii. Issue a written response within 30 business days
4. Final Determination
a. The Director’s determination is final unless federal or HUD intervention is warranted. 148
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E. CONFLICT RESOLUTION
The City of Lynwood complies with the conflict- of-interest provisions in 24 CFR 92.356 and reinforces these requirements through internal procedures applicable to all HOME Program activities.
If a relationship exists between an applicant, contractor, or program staff member that could create a real or perceived conflict of interest, the Program Administrator must prepare a written disclosure and submit it to the Community Development Director. The disclosure must describe the nature of the relationship and request direction regarding reassignment of the case. Cases involving disclosed relationships will be reassigned to staff who do not have a preexisting relationship with the applicant or contractor.
A preexisting relationship does not disqualify an applicant from receiving HOME assistance, provided the applicant meets all eligibility requirements and all reviews, approvals, and underwriting determinations are fully documented.
No City official, employee, or agent who exercises policy or decision-making authority over HOME- funded activities may receive HOME assistance, directly or indirectly, unless the request has been reviewed and approved in accordance with HUD conflict of interest provisions. This restriction remains in effect for one (1) year after the individual leaves City service. • Conflict of Interest (“COI”) (2 CFR Part 200.318(c); 24 CFR Part 92.356) requirements apply to all City of Lynwood HOME Program agreements, including those with subrecipients, CHDOs, developers, contractors, consultants, advisory bodies, and any other parties involved in the administration or implementation of HOME-funded activities. • No employee, officer, agent, or board member with a real or apparent conflict of interest may participate in the selection, award, or administration of a contract supported by the Federal award. A conflict of interest includes when the employee, officer, a gent, or board member, any member of their immediate family, their partner, or an organization that employs or is about to employ any of the parties indicated herein, has financial or other interest(s) in or a tangible personal benefit from an entity consi dered for a contract. An employee, officer, agent, and board member of the recipient or subrecipient may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors.
However, the recipient or subrecipient may set standards for situations where the financial interest is not substantial or a gift is an unsolicited item of nominal value.
Violations of these “Conflict-Of-Interest” standards
1 are serious and will result in corrective
measures which may include:
1 Lynwood Conflict of Interest requirements https://lynnwood.municipal.codes/LMC/2.94.040 149
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a. For City Employees:
i. Written Notice: First offenses typically result in a formal written warning. ii. Suspension: Repeat or significant violations may result in a 5 –30-day suspension.
iii. Termination: Serious or repeat violations may result in discharge from employment.
iv. Forfeiture of Benefits: In cases of serious ethical breaches, certain benefits (including retirement) may be forfeited as permitted by law. b. For Elected & Appointed Officials:
i. Removal from Office: May occur following conviction or recall. ii. Disqualification: May be barred from holding future public office. iii. Official Censure: Formal reprimand, loss of committee assignments. iv. Voided Contracts: Contracts made in violation of COI provisions may be declared void.
c. For Subrecipients, CHDOs, Developers, and Contractors:
i. Contract Remedies: Contracts or agreements found in violation may be terminated, suspended, or declared void.
ii. Repayment of Funds: HUD and the City may require repayment of HOME funds expended under a conflict situation.
iii. Ineligibility for Future Funding: Organizations may be barred from applying for or receiving future HOME funds.
iv. Legal and Financial Liability: Entities may be subject to restitution, fines, or legal action under federal, state, or local law.
v. Debarment or Suspension: Contractors or organizations may be added to the federal exclusion list (SAM.gov) for serious or willful violations.
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Factors Considered in Enforcement:
a. Severity and nature of the violation (financial conflict, misuse of insider information, bribery).
b. Whether the act was willful or negligent.
c. Financial gain or benefit realized.
d. Prior history of violations by the individual or entity.
F. COMPLAINT RESOLUTION & GRIEVANCE PROCEDURES
The City of Lynwood provides a formal process for receiving and resolving complaints related to HOME Program administration.
1. All Complaints must be submitted in writing to the Housing Division at the address below and include:
• Complainant name and contact information
• Description of the issue
• Relevant documentation
Community Development Department – Housing Division
City of Lynwood
11330 Bullis Road
Lynwood, CA 90262
Email:
[email protected]
2. The City will acknowledge receipt within 5–7 business days
3. A Final written response will be issued within 15 business days. a. If unresolved, complaints may be elevated to the City Manager or HUD for further review.
G. CODE OF CONDUCT & BROAD-LEVEL CONFLICT POLICY
To uphold ethical standards in HOME Program oversight, the following policy applies to any City of Lynwood commissions, boards, advisory groups, or committees involved in HOME -related decisions.
1. Code of Conduct
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• Members may not derive personal gain from participating in HOME decisions. • Members must avoid real, potential, or perceived conflicts of interest.
2. Conflict Disclosure
• Conflicts must be disclosed before discussion or voting. • A Conflict Disclosure Form may be required.
3. Recusal
• Members must recuse themselves and may not participate or vote. • Recused members do not count toward quorum for that item.
1. Meeting Documentation
• All disclosures and recusals must be recorded in meeting minutes.
2. Annual Compliance
• Members must complete an annual conflict-of-interest acknowledgment and participate in periodic policy reviews.
6. Applicability to Related Parties
• Standards apply to immediate family members and individuals acting on behalf of board members.
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CHAPTER 3: FINANCIAL MANAGEMENT POLICIES
A. INTERNAL CONTROLS & FISCAL OVERSIGHT
The City of Lynwood maintains comprehensive internal controls and financial oversight mechanisms to ensure the effective, efficient, and compliant use of HUD HOME funds. These controls are designed to promote financial accountability, minimize risk of fraud or misuse, ensure accurate and timely reporting, and comply with federal program requirements. All financial procedures follow applicable requirements under 2 CFR Part 200, including Subpart D (Post-Award Requirements) and Subpart E (Cost Principles).
To safeguard against fraud and ensure accuracy:
a. Administrative Analyst or designated HOME Program Consultant shall initiate funding decisions and maintain project-level documentation.
b. Administrative Analysist or designated HOME Program Consultant shall manage IDIS records, prepare drawdowns, and monitor grant performance. c. Finance Analyst reviews and approves drawdowns.
d. Financial Analyst processes disbursements, maintains financial records, and conducts reconciliations.
e. Finance & Administration Director and Community Development Director review and authorize all financial actions and reports.
No single staff member is permitted to initiate, approve, and reconcile the same transaction.
Drawdown Controls and Reconciliation
a. All HOME drawdown requests are prepared by the Administrative Analysist or designated HOME Program Consultant based on verified source documentation (invoices, contracts, reports).
b. Requests are reviewed and approved by the Finance Analyst or designee for processing. c. Any discrepancies are reported to the Administrative Analyst and Finance & Administration Director and corrected before finalization.
Monthly and Quarterly Financial Reviews
a. The Community Development Department and the Finance & Administration Department conduct monthly reviews of all HUD accounts to ensure consistency across systems. b. Quarterly reviews are performed to identify:
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i. Slow-moving projects
ii. Projects not meeting milestones
iii. If issues are identified, staff develop and implement corrective action plans with timelines.
CHDO Risk-Based Monitoring and Internal Review
Additional financial controls apply to CHDO set -aside projects. The City shall maintain separate ledgers for CHDO activities, monitor predevelopment loan repayments, and ensure compliance with 24 CFR Part 92.300.
a. An annual risk assessment is conducted to classify subrecipients and CHDOs as low, medium, or high risk.
b. High-risk entities are subject to additional financial and programmatic reviews, including random sampling of expenses.
c. Internal control reviews are documented and retained in project files.
Financial Reporting and Federal Submissions
The City tracks and reports HOME program income in accordance with 24 CFR Part 92.503. All program income is deposited into the City's HOME account in IDIS and should be fully expended before drawing down additional HOME entitlement funds.
1. Funding Accountability and Transparency Act (FFATA) Reports a. At the end of each month, the Finance & Administration Department will report on all awards exceeding $30,000 via the Subaward Reporting in SAM.gov to comply with the FFATA.
2. Federal Financial Report (SF-425)
a. City staff or designated HOME Program Consultant prepares the SF- 425 Federal Financial Report semi-annually using reconciled IDIS (PR07) and General Ledger data. b. Steps for Preparation:
Step 1: Determine Draws from IDIS
i. Generate PR07 for the reporting period.
ii. Filter for completed EN (Entitlement) draws.
iii. Total draws for SF-425 Line 10a.
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iv. If requested, report disbursements by grant allocation.
Step 2: Determine Expenditures from City System
i. Generate Accounts Payable Invoice Report.
ii. Match each draw with City claims.
iii. Verify and input totals in SF-425 Line 10b.
Step 3: Filing
i. Submit SF-425 within 15 days after period end.
ii. Retain a file with all supporting documentation.
Oversight of Rebates, Refunds, and Credits
Rebates, refunds, and credits tied to HOME-funded activities will be reported and returned to the program account on a pro-rata basis.
Examples include:
a. Bid bond forfeitures (when no replacement costs apply) b. Vendor refunds
Travel and Training Costs Evaluation
All travel or training costs charged to HUD programs must:
a. Be approved by Community Development Director
b. Be evaluated by the Administrative Analyst for:
i. Relevance to HOME program objectives
ii. Compliance with OMB Uniform Guidance (2 CFR Part 200) iii. Budget availability
iv. Eligibility under HUD CPD programs
Annual Schedule of Expenditures of Federal Awards (SEFA) The Finance & Administration Department , with input from the Community Development Department, prepares the SEFA as part of the City’s annual Single Audit in accordance with 2 CFR Part 200.510.
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SEFA Preparation Guidelines:
a. Use the same basis of accounting as the City’s audited financial statements (e.g., GAAP or modified accrual).
b. Include all federal expenditures for the fiscal year, including:
i. Direct and indirect federal awards.
ii. Federal program income used in accordance with federal program requirements. iii. Outstanding loan balances (if applicable under specific program rules, such as HOME). iv. Pass-through funds and subawards to subrecipients.
c. Identify and group expenditures by Assistance Listing Number (ALN) and federal agency, as listed in SAM.gov.
i. Disclose the name of the pass -through entity and their identifying number, if funds are received as a subrecipient.
ii. Include notes to SEFA as required by 2 CFR Part 200.510(b)(6), including significant accounting policies and loan program disclosures.
Review and submission Process:
a. The Finance Analyst gathers supporting documentation and ensures expenditures are reconciled with the general ledger and grant records.
b. The Finance & Administration Director reviews the draft SEFA for accuracy, verifies Assistance Listing Numbers (formerly CFDA), confirms compliance with Uniform Guidance, and ensures required footnotes are included.
c. The SEFA is submitted to the City’s independent auditors as part of the annual Single Audit package.
d. The final SEFA is included in the City’s audited financial report and submitted to the Federal Audit Clearinghouse, along with the Data Collection Form (Form SF- SAC), within the required deadline (9 months after fiscal year end or 30 days after receipt of the auditor’s report, whichever is earlier).
Access Controls and Data Security
a. System access to IDIS, SAM.gov, and City financial systems is limited to authorized personnel.
b. Access rights are reviewed annually and updated with staffing changes. 156
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c. Data backups and security protocols are maintained by the City’s IT Department.
Financial Corrective Actions and Continuous Improvement Any discrepancies, audit findings, or monitoring results that indicate weaknesses in internal controls trigger a corrective action plan.
The Community Development Director and Finance & Administration Director oversee implementation and monitor outcomes to ensure future compliance.
B. FUND DISBURSEMENT & DRAWDOWN
The City of Lynwood disburses HOME Program funds through IDIS monthly . Prior to any disbursement, all projects and programs shall meet the definition of commitment as required under 24 CFR 92.502(b) and as stated in Chapter 1 of these Policies and Procedures. A fully executed written agreement with the dated signatures of all parties must be in place before funds are released, and complete project set -up information must be entered into IDIS in accordance with federal requirements.
All costs charged to the HOME Program must be:
a. Eligible under 24 CFR Part 92
b. Reasonable and necessary
c. Supported by complete source documentation
d. Properly authorized and approved prior to drawdown
The City ensures that HOME funds are drawn only for actual, incurred costs and that the reimbursement process aligns with the City’s fiscal management practices. Funding is disbursed on a reimbursement basis following submission and approval of eligible expenditures.
Disbursement of payments shall be made upon receipt of the Request for Reimbursement Form (Appendix A) together with true and correct copies of receipts, timesheets, invoices, and other documentation as may be reasonably requested by staff.
Expenditures shall be documented with supportive evidence for each expenditure and proof of payment, in accordance with HUD regulations. Payments may also be contingent upon certification that the subrecipient’s financial management system is in accordance with the standards specified in 2 CFR Part 200. After timely receipt of each properly documented expenditure submittal, the City will draw a warrant in favor for the approved expenditure amount within thirty (30) days. 157
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C. MONTHLY DISBURSEMENT AND DRAWDOWN PROCEDURES
Program Income Entry (if applicable)
a. The Finance Analyst monitors incoming revenue related to HOME-assisted activities. b. Any Program Income received since the last drawdown is recorded in IDIS by creating a Program Income ledger and receipt.
c. The Finance Analyst verifies the ledger and reconciles it with internal revenue records.
Invoice and Draw Schedule Reconciliation
a. The Finance Analyst generates the current Accounts Payable Invoice Report and compares it with the HOME Draw Schedule and project-level budget tracking. b. Any discrepancies or missing documentation are immediately flagged and reviewed with the Finance Analyst for resolution before proceeding with the draw.
Voucher Creation in IDIS
a. The City staff or HOME Program Consultant creates a new IDIS drawdown voucher, referencing only those costs for which:
i. Payment has been issued by the City
ii. Adequate supporting documentation has been collected (e.g., invoices, contracts, payroll, procurement records)
b. A copy of the voucher creation screen (showing date, total amount, and line items) is filed both electronically.
c. The IDIS Voucher Number is recorded on the Departmental Budget tracking document for audit traceability.
d. City staff or HOME Program Consultant notify the Finance Analyst that the draw is ready for review and approval.
Voucher Review and Approval
a. The Finance Analyst reviews the IDIS drawdown voucher for:
i. Accuracy of amounts
ii. Alignment with budgeted activities
iii. Completeness of backup documentation
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b. Once verified, the Finance Analyst approves the drawdown in IDIS. c. IDIS submits the approved voucher to eLOCCS (HUD’s Line of Credit Control System). d. Funds are typically wire transferred to the City’s designated HUD account within 2 –3 business days.
Wire Receipt and Fund Reconciliation
a. Upon receipt of the wire transfer, the Finance Analyst reviews HUD’s eLOCCS disbursement report and confirms the HOME program transfer.
b. The Finance Analyst forwards the wire confirmation to the Finance & Administration Director and or designated City staff or HOME Program Consultant for reconciliation. c. The City’s General Fund is reimbursed for any HOME -eligible expenses that were initially advanced, using the funds received.
d. A final reconciliation between the drawdown and internal ledger entries is performed to ensure accuracy.
Disbursement & Drawdown Record Retention
a. All source documentation is filed in the City’s official HOME Program Financial Drawdown File, both electronically and in hard copy as applicable, including:
i. IDIS voucher printouts
ii. Wire confirmation reports
iii. Invoices and payment records
iv. Reconciliations and internal approvals
b. These records are retained in accordance with Chapter 1 of these Policies & Procedures and are subject to review by internal and external auditors.
Financial Compliance Review
a. The City ensures no pre -drawdown of funds; disbursement requests are made only after costs are incurred and validated.
b. All disbursements are cross-checked against IDIS project budgets, and changes require prior approval.
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Project Completion and IDIS Closeout
The City of Lynwood is required to complete project closeout in accordance with HUD regulations.
For every HOME-funded project:
1. Timeline Requirement
a. Project completion data must be entered in the IDIS within 120 days of the final project drawdown.
2. Data Accuracy
a. Information entered in IDIS must match the written agreement(s) and the official project file, including at a minimum:
i. Project address
ii. Total number of units and number of HOME-assisted units iii. Beneficiary information (tenant/homebuyer household characteristics, income eligibility, and occupancy)
3. Review and Verification
a. Prior to marking a project complete in IDIS, City staff or designated HOME Program Consultant shall reconcile IDIS entries with the project file. b. The Administrative Analyst shall verify accuracy and approve the closeout.
4. Corrective Action
a. If completion data cannot be entered within 120 days, staff must document the reason, notify the Administrative Analyst , and take corrective action consistent with HUD requirements.
D. MATCH REQUIREMENTS
Under the HOME Investment Partnerships Program, the City of Lynwood must contribute a minimum 25% match for every dollar of HOME funds drawn down for eligible project costs in a given fiscal year. This match represents the City’s local, non -federal contribution to affordable housing development and reflects the City’s com mitment to leveraging HOME funds with local resources. HUD may reduce match requirements due to fiscal distress, severe fiscal distress, and President disaster declarations. If the City meets one of the distress criteria’s it may receive a 50 percent reduction and if it meets two distress criteria’s then it may receive a 100 percent reduction. 160
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Regulatory Requirements
a. The 25% match requirement applies only to project expenditures and not to administrative or planning costs.
b. Match contributions must be permanent, non-federal, and verifiable. c. HOME funds cannot be used to match other federal programs, with the sole exception of programs funded under the McKinney-Vento Homeless Assistance Act. d. Match obligations are calculated at the time of drawdown and must be reported annually in the IDIS system (Appendix B).
e. The match obligation may be reduced by HUD if the City qualifies for a match reduction due to fiscal distress or major disaster declarations.
Acceptable Match Sources
The following non-federal contributions may count toward the City’s match requirement:
a. Cash contributions from non- federal sources (City general funds, donations, private foundations)
b. Donated land or real property appraised at fair market value c. Donated materials and labor, including professional services d. Foregone fees, such as waived permit or development impact fees e. Below-market interest rate loans or financing
f. Value of infrastructure improvements paid by non-federal sources that are directly related to HOME projects
City of Lynwood Internal Match Procedures
To ensure proper tracking and compliance with match requirements, the City of Lynwood will implement the following controls:
1. Match Identification and Documentation
a. At project setup, the HOME Program Consultant and Administrative Analyst will assess potential eligible match sources and maintain documentation in the project file. b. Match contributions will be tracked on a Match Contribution Log with supporting documentation (e.g., donation letters, invoices, appraisal reports, or cost waiver documentation).
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c. The Finance Analyst will verify that the source of each match item is non-federal in origin.
2. Verification of Match Value
a. For donated labor or services, the City will apply HUD-approved valuation methods (per 24 CFR Part 92.220).
b. Donated land or materials will be valued by third-party appraisal or cost verification. c. Waived fees must be supported by fee schedules and internal approval documentation showing they were not collected.
3. Timing and Allocation
a. Match contributions must be expended or committed during the same fiscal year as the corresponding HOME funds.
b. Excess match contributions from prior years may be carried forward and applied to future match requirements.
c. The Finance & Administration Department will ensure that match contributions are recorded in the City’s general ledger and reconciled with the drawdown schedule.
4. Annual Match Reporting
a. The City will submit the HUD Form 40107 annually as part of its Consolidated Annual Performance and Evaluation Report (“CAPER”), documenting:
i. Total HOME funds expended
ii. Total match liability
iii. Match contributions provided, broken down by source and type iv. Cumulative match balance, including excess match carryover b. The Finance & Administration Director and HOME Program Consultant will certify the accuracy of match records prior to submission.
5. Monitoring and Oversight
a. Match contributions will be included in the internal quarterly financial reviews conducted by the Community Development and Finance & Administration Departments. b. All match source documentation is subject to review by HUD monitors and independent auditors.
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c. Any ineligible match contributions identified during audits will be corrected through additional eligible match contributions or returned HOME funds, as necessary.
E. PROGRAM INCOME & RECAPTURED FUNDS
The City of Lynwood is committed to ensuring full compliance with HOME Program requirements for the management and use of program income and recaptured funds. These funds are tracked separately, reported accurately, and reinvested into eligible HOME activities in accordance with 24 CFR Part 92.503 and related HUD guidance.
Program income is defined as any revenue received by the City that is directly generated from the use of HOME funds or matching contributions. Per HUD regulations and the City of Lynwood’s policies, program income includes, but is not limited to:
a. Proceeds from the sale or long -term lease of real property acquired, rehabilitated, or constructed with HOME funds;
b. Income from the use or rental of such property, minus any costs incidental to generating that income;
c. Principal and interest repayments on loans made with HOME funds or matching contributions;
d. Interest earned on program income; and
e. Any other interest or return on the investment of HOME and matching funds.
The City of Lynwood requires that all program income is returned to the City. All such income must be used prior to drawing additional HOME entitlement funds from the IDIS system.
Sources of Program Income
a. The City primarily receives program income through rehabilitation loan repayments, with reporting by a third-party loan servicer.
b. Additional income may come from residual receipts or surplus cash from housing development activities, as outlined in loan agreements.
Drawdown and Reimbursement Process for Program Income
a. Program income is drawn down first, before federal entitlement funds, for any eligible HOME activity.
b. The City’s Finance Analyst creates program income receipts in IDIS and reconciles them with the Draw Schedule.
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c. Community Development staff or designated HOME Program Consultant generates the drawdown voucher in IDIS based on actual eligible expenses. d. The Finance Analyst reviews and approves drawdowns. Funds are then wire transferred into the City’s designated account.
e. HOME costs advanced by the General Fund are then reimbursed accordingly.
Cash Management and Controls
a. All payments are made on a reimbursement basis only; no cash advances are permitted. b. Subrecipients must track and report on:
i. Funds budgeted, received, and expended,
ii. Cash on hand including program income,
iii. Any previous reimbursement requests pending payment. c. Quarterly reporting compliance is required for reimbursement. d. Any interest earnings on federal funds (including program income) must be returned to the HUD if not offset by expenditures.
Recaptured Funds & Ensuring Long-Term Affordability
To ensure long-term affordability in future homebuyer programs, the City of Lynwood administers resale and r ecapture requirements in accordance with 24 CFR 92.254(a)(5) and applicable HUD guidance ( CPD Notice 12 -003: HOME Resale and Recapture Requirements ). The City will select either the resale or recapture option at the time HOME assistance is provided.
If a HOME-assisted homebuyer sells or transfers the property before the affordability period ends, the City will enforce the selected resale or recapture provisions in compliance with HUD requirements.
Key provisions include:
a. Direct Subsidy Subject to Recapture: Only the direct HOME subsidy provided to the homebuyer (e.g., down payment assistance, closing cost assistance, or direct loans) is subject to recapture. Development subsidies provided for the project are not recaptured.
b. Affordability Period: The affordability period is determined by the total amount of HOME direct subsidy, consistent with 24 CFR 92.254(a)(4) and with Chapter 7 of this manual.
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c. Net Proceeds Approach: The amount subject to recapture is limited to the lesser of (a) the HOME direct subsidy or (b) the net proceeds from the sale. Net proceeds are defined as the sales price minus superior loan repayment and reasonable closing costs.
d. Fair Return to Owner: The homebuyer is entitled to receive a fair return on investment, including their initial down payment and the value of any capital improvements made to the property, as required under CPD 12 -003. The City must determine the original homebuyer’s fair return on investment based on an objective standard or index that is publicly accessible and can be easily measured at the time of original purchase and at resale.
e. Resale vs. Recapture: The City may implement either the resale or recapture method but must select and document the chosen method in the written agreement with the homebuyer before assistance is provided. If resale is used, the subsequent purchaser must be income-eligible, and the home must remain affordable for the remainder of the affordability period.
f. Treatment of Recaptured Funds: All recaptured funds are considered program income and must be used in accordance with 24 CFR 92.503.
These provisions are disclosed in plain language at the time of assistance and are incorporated into the written agreement and recorded as deed restrictions, liens, or other enforceable mechanisms, as appropriate.
Policy Implementation
a. The City must select the recapture or resale option before providing assistance. b. The recapture provisions are to be included in the written agreement with the home buyer and recorded as deed restrictions or liens, as appropriate. c. The City has adopted plain- language disclosures to ensure homebuyers understand their obligations.
d. HUD must approve the City’s resale and/or recapture policies separately from the ConPlan.
Disposition of Real Property
a. If real property purchased or improved with HOME funds is sold or no longer used for an eligible purpose within the applicable affordability period, and the change is not in compliance with HOME program requirements, the City must enforce the applicable resale or recaptured provisions.
b. After the five -year period, proceeds from such disposition may be treated as program income, depending on use and compliance with HUD rules. 165
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F. RETURNING FUNDS TO HUD DUE TO NONCOMPLIANCE
Occasionally, HOME funds must be returned to HUD because of noncompliance with program regulations, ineligible expenditures, or excess program income. The method of returning funds depends on the reason for the repayment and the timing of the original grant. All repayments should be coordinated with the HUD Field Office, which will confirm the appropriate method.
For detailed official HUD instructions, refer to Appendix C: “Instructions for Returning Funds to the Line of Credit and to the U.S. Treasury.”
G. FINANCIAL REPORTING & AUDITS
The City of Lynwood is committed to ensuring the accuracy, transparency, and accountability of all financial transactions associated with the HOME Program. The City follows all applicable federal regulations, including 2 CFR Part 200 Subpart F and 24 CFR Part 92, and maintains robust policies and procedures to support timely audit completion, financial reporting, and program compliance.
Annual Independent Audit
The City of Lynwood undergoes an annual independent audit in accordance with 2 CFR Part 200, Subpart F (Audit Requirements) when the City expends $1,000,000 of federal expenditures or more during the fiscal year. The audit is conducted by a certified public accounting firm a nd includes a review of all federal funds, including HOME, as part of the City's Single Audit. • Responsibility: The Finance & Administration Department coordinates the procurement, oversight, and delivery of the independent audit.
• Findings: Any audit findings related to the HOME Program are reviewed by the Community Development Department in collaboration with the Finance & Administration Department.
A corrective action plan is developed within 30 days of identification and implemented promptly to ensure resolution.
• Submission: The audit is submitted to the Federal Audit Clearinghouse (FAC) in accordance with 2 CFR Part 200.512, and a copy is provided to HUD upon request.
Consolidated Annual Performance and Evaluation Report (CAPER) As required by 24 CFR Part 91.520, the City of Lynwood prepares and submits the CAPER to HUD within 90 days after the close of the program year. This report includes detailed information on expenditures, progress and accomplishments in implementing activities funded under the HOME program.
• Responsibility: The City’s HOME Program Consultant, with the guidance of the Community Development Department, is responsible for preparing the CAPER.
The CAPER must include:
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a. A summary of HOME resources and accomplishments
b. A self-evaluation of progress toward ConPlan objectives c. Outcomes of HOME-funded activities (e.g., units completed, households assisted) d. On-site inspections of affordable rental housing, if applicable e. An assessment of affirmative marketing actions for HOME unit, if applicable f. Actions taken to foster and maintain affordable housing g. IDIS performance data and leverage/match reporting
h. Summary of subrecipient and CHDO performance, if applicable i. Amount and use of program income
Ongoing Reporting Requirements
To ensure accurate CAPER and HUD reporting, the City enforces regular internal and external reporting practices.
• Semi-Annual Project Status Reports
a. Prepared by the HOME Program Consultant or designated Program Staff. b. Includes:
i. Narrative of project milestones and status
ii. Drawdown and funding updates (including any amendments) iii. Identification of issues, delays, or risks needing HUD technical assistance c. Timeline: Submitted semi-annually for all open HOME projects (July and January) Subrecipient and CHDO Reporting Obligations
• All subrecipients and CHDOs must submit quarterly performance and financial reports, which include:
a. Budget vs. actual expenditures,
b. Cash on hand if applicable (including program income), c. Project progress and beneficiary data.
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• CHDOs must also complete an annual recertification and submit financial statements and organizational updates to confirm continued eligibility.
Internal Controls and Reconciliation
• IDIS Reconciliation: The City’s Finance Analyst reconciles all HOME program transactions monthly with IDIS draw schedules and City accounting records. • Access Control: Only authorized personnel have access to draw funds or enter data into IDIS.
• Drawdown Review: Each drawdown request is:
a. Prepared by the HOME Program Consultant,
b. Reviewed and approved by the Administrative Analyst and Finance Analyst, c. Wire transferred by the City’s Finance & Administration Department.
Reports Record Retention and Accessibility
All financial records, audit documents, CAPERs, project files, and subrecipient reports are retained for a minimum of five (5) years after project closeout or longer if required by audit resolution.
Records must be made available to HUD or other federal agencies upon request for monitoring or audit purposes.
H. SPENDING CAPS & SET-ASIDES PROCEDURES
The City of Lynwood is committed to full compliance with HOME Program spending requirements under 24 CFR Part 92. These requirements ensure that a minimum amount of funds is dedicated to affordable housing development through CHDOs, while also limiting the portion of funds used for administrative purposes.
Administrative and Planning Costs (10% Maximum – 24 CFR Part 92.207) a. The City may not use more than 10% of its annual HOME allocation for administrative and planning expenses. These include, but are not limited to:
i. Staff salaries, fringe benefits, and overhead related to general program management, ii. Office and operational costs associated with HOME program delivery, iii. Training, monitoring, travel, and reporting costs. b. The Finance & Administration Department tracks administrative expenditures monthly and conducts quarterly reviews to ensure compliance.
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c. The HOME Program Consultant and Administrative Analyst prepare an annual administrative budget and submit it for review and approval during the Annual Action Plan process.
CHDO Set-Aside Requirement (15% Minimum – 24 CFR Part 92.300) At least 15% of the City of Lynwood’s annual HOME allocation must be reserved for development activities carried out by qualified CHDOs. Eligible CHDO activities include the acquisition, new construction, or rehabilitation of affordable rental or homeownership housing.
As outlined in these policies and procedures, CHDOs must be certified annually by the City in accordance with HUD criteria. This certification process includes verification of nonprofit status, demonstrated development capacity, financial accountability, and staff expertise. a. The City may issue a Notice of Funding Availability (NOFA) or solicit proposals from HUD - certified CHDOs each year to meet the 15% set-aside requirement. b. CHDO agreements will include detailed scopes of work, budgets, and performance benchmarks.
c. The HOME Program Consultant will monitor CHDO compliance with HOME regulations through quarterly reporting and annual on-site reviews. d. If no eligible CHDO projects are identified within a reasonable timeframe, the City will work with HUD and technical assistance providers to build CHDO capacity and ensure compliance as outlined in Chapter 4 and Chapter 7.
I. ANNUAL BUDGETING & ALLOCATION
Each year, the City of Lynwood prepares and submits an AAP to HUD, in accordance with 24 CFR Part 91. This plan includes a detailed HOME budget outlining the proposed allocation of funds across eligible activities, based on the priorities identified in the City’s Five-Year ConPlan.
The budget includes allocations for:
a. Eligible HOME activities (e.g., rehabilitation, acquisition, homebuyer assistance) b. Administrative and planning costs (not to exceed 10% of the allocation per 24 CFR Part
92.207)
c. CHDO set-aside (minimum 15% per 24 CFR Part 92.300)
The City’s Community Development Department, in coordination with the Finance & Administration Department and the HOME Program Consultant, manages the budgeting and makes allocation recommendations for City Council approval.
All proposed HOME-funded activities are evaluated using criteria such as:
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a. Cost effectiveness and reasonableness per 2 CFR Part 200 b. Timeliness of prior year expenditures
c. Community need and service accessibility for Lynwood residents d. Non-HUD resources leveraged
e. Program eligibility and benefit to low-income populations Monitoring and Reallocation
The City regularly monitors HOME expenditures to ensure compliance with HUD’s spending caps and deadlines. Financial activity is tracked through IDIS and internal systems. If funds are at risk of remaining unspent, such as uncommitted CHDO funds or project underspending, the City may reallocate funds to other eligible activities.
Reallocation decisions are:
a. Based on Consolidated Plan priorities
b. Subject to City Council approval
c. Reflected in formal amendments to the Annual Action Plan, as required by HUD Training and Travel Cost Review
All training and travel costs charged to the HOME program are subject to case-by-case review.
Costs must be:
a. Eligible under 2 CFR Part 200
b. Applicable to HOME responsibilities
c. Pre-approved by the Administrative Analyst or designee Supporting documentation is retained for compliance and audit purposes. 170
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CHAPTER 4: UNDERWRITING & SUBSIDY LAYERING
This chapter outlines the City of Lynwood’s underwriting and subsidy layering policies and procedures for HOME Program projects, as required under 24 CFR Part 92.250 and HUD CPD Notice 15-11. These policies ensure that all HOME -assisted developments are financially viable, cost-reasonable, and receive only the minimum amount of federal subsidy necessary.
The City operat es a direct Homebuyer Assistance Program under 24 CFR 92.254( a) that may provide direct assistance to eligible homebuyers, including down payment assistance, closing cost assistance, and other forms of direct HOME subsidy as approved by the City. The City may also fund HOME -assisted homebuyer development projects, where units are constructed or rehabilitated for sale to HOME -eligible households. In both cases, the City must follow all underwriting, subsidy layering, cost allocation, market analysis, and sales plan requirements outlined in CPD‑15‑11.
The City performs a comprehensive underwriting review for every HOME project prior to commitment of funds. This includes verification of development and operating costs, market feasibility, the reasonableness of developer fees and return on investment, and an analysis of all project funding sources to prevent over -subsidization. Through this process, the City ensures prudent stewardship of public funds and compliance with HUD’s affordability and cost control requirements.
All project partners including CHDOs, developers, and subrecipients are required to submit complete documentation, notify the City of any material changes to the project, and adhere to the underwriting standards described in this chapter. These procedures are essential to maintain program integrity, meet federal regulatory requirements, and support the development of high- quality, sustainable affordable housing in the City of Lynwood. For detailed guidance on CHDO eligibility and roles, refer to Chapter 7.
A. UNDERWRITING PROCEDURES
Underwriting and subsidy layering procedures are aligned with HUD’s CPD Notice 15 -11, which provides the latest standards for evaluating project feasibility, cost reasonableness, market analysis, and subsidy levels. For Low-Income Housing Tax Credit (“LIHTC”) projects, underwriting procedures must align with both HOME and tax credit standards.
1. Project Review:
a. Verify proposed number and type of units, construction or rehab plans, and timeline. b. Confirm the project aligns with the City’s ConPlan and local housing priorities.
2. Development Budget:
a. Analyze all project costs for eligibility and reasonableness. (24 CFR 92.206 and 2 CFR 200). 171
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b. Confirm all sources of financing are committed or well- documented. Supporting documentation such as award letters, offer letters, commitments and other shall be collected.
c. Ensure costs align with market benchmarks and cost index tools ( example of a construction cost tool, such as, RSMeans). The City ensures that cost estimates are updated annually and reflect local market conditions.
d. Review and approve written cost estimates, construction contracts, and construction documents to ensure costs are reasonable and that the scope of work is described in adequate detail to allow for inspections in accordance with 24 CFR 92.251(a)(3)(iv).
3. Operating Pro Forma:
a. Evaluate 15–20-year pro forma including:
i. Income assumptions (rents, vacancy rate)
ii. Expense projections throughout the affordability period (utilities, maintenance, management, etc.)
iii. Reserve deposits and replacement schedules
b. Confirm debt coverage ratio (DCR) is sufficient (typically 1.15 to 1.20 for rental projects). c. Identify projected cash flow and return to developer.
4. Developer Capacity (see Developer Capacity section for more details):
a. Review organizational experience, project team qualifications, and past HOME or affordable housing performance.
b. Confirm readiness to proceed and ability to meet construction and compliance timelines.
5. HOME-Assisted Units & Cost Allocation:
a. Calculate HOME-eligible costs and number of HOME-assisted units. b. Apply proration, standard/unit-specific, or hybrid cost allocation method. c. Ensure HOME investment does not exceed maximum limits under 92.250(a).
6. Subsidy Layering Analysis:
a. Ensure HOME funds fill only the financing gap after all other sources. b. Confirm that combined public assistance does not exceed what is necessary. 172
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7. Developer Fees & Return on Investment (“R OI”) (see Developer Fees and Return on Investment (ROI) Section):
a. Evaluate total developer compensation against local and HUD caps. b. Assess projected internal rate of return (IRR) or cash -on-cash return to confirm reasonableness.
8. Loan-to-Value Compliance:
a. Ensure total financing does not exceed 80% of after-rehabilitation appraised value.
9. Affordability Compliance:
a. Confirm HOME rents, income targeting, and affordability periods are met. b. For homebuyer development projects, ensure projected sales prices comply with HOME affordability limits.
10. Documentation:
a. Staff documents underwriting conclusions and recommendations. b. Memo includes assessment of need, feasibility, cost reasonableness, ROI, and compliance with HOME rules.
Direct Homebuyer Assistance Underwriting Review (Down Payment Assistance and Related Direct Subsidy)
For direct homebuyer assistance provided under 24 CFR 92.254(a), the City will underwrite each household to ensure that (1) the homebuyer can afford the home, (2) the first mortgage is reasonable and sustainable, and (3) the HOME assistance amount is no more than necessary.
At minimum, the City’s homebuyer underwriting review must address:
Household Financial Review
a. Household income eligibility determination in accordance with 24 CFR 92.203 and Chapter 5. b. Review of recurring and monthly household expenses and obligations. c. Verification of assets available to acquire housing and required borrower contribution, if applicable.
d. Assessment of financial resources to sustain homeownership, including reserves when required by the first mortgage program or City policy.
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Housing and Total Debt Analysis
a. Evaluate housing debt and overall household debt.
b. Review affordability using front- end and back- end ratios consistent with the first mortgage program and City underwriting standards:
i. Front-end ratio evaluates total monthly housing expense (principal, interest, taxes, insurance, and required HOA if applicable) as a share of gross monthly income. ii. Back-end ratio evaluates total monthly debt obligations (housing expense plus recurring debt) as a share of gross monthly income.
c. Any underwriting exceptions must be documented with rationale and approved by the Community Development Director or designee.
First Mortgage Review and Responsible Lending Standards a. Confirm the proposed private first mortgage has reasonable terms and does not include high- risk or predatory features that could jeopardize long-term affordability. b. Prohibited loan features include adjustable -rate structures with payment shock, balloon payments, negative amortization, and excessive or unreasonable fees. c. Confirm lender fees and settlement charges are reasonable and customary. d. Confirm the lender does not charge a fee for the HOME assistance and that any non- HOME loan fees are reasonable.
Appropriateness of HOME Assistance Amount and Form
a. Confirm HOME assistance fills only the affordability gap and is not more than necessary. b. Verify other available resources to the household and coordinate with other assistance sources to prevent over-subsidization or duplication of benefits. c. Document the final HOME assistance amount determination in the file.
Property Eligibility Confirmation
a. Confirm the unit meets HOME property standards under 24 CFR 92.251 and applicable local code requirements.
b. Confirm the property meets HOME value limits and is modest housing as required under 24 CFR 92.254(a)(2)(iii).
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c. Confirm principal residence requirements and affordability obligations will be secured through the City’s written agreement and recorded instruments.
Refinancing and Subordination Review
The City shall maintain written standards for refinancing and subordination requests to protect the HOME investment and ensure long-term affordability. At minimum:
a. The City will review the proposed new loan terms to confirm the refinancing is reasonable and provides a tangible benefit such as a lower interest rate or lower monthly payment. b. Cash -out refinancing is prohibited except when proceeds are limited to City -approved rehabilitation, repairs, or improvements that protect the collateral and HOME investment. c. Subordination is permitted only when the City determines it is consistent with protection of the HOME lien, affordability, and City risk standards and the request is approved in writing by the City.
Approval & Recordkeeping
Program staff present underwriting and subsidy layering findings to the Community Development Director or designee for review and final funding approval, in accordance with the City's HOME Program oversight responsibilities.
1. All documentation is retained in the project file for HUD compliance and audits.
2. For projects involving rehabilitation of owner -occupied housing under 24 CFR Part
92.254(b):
i. An underwriting analysis of the homeowner's ability to repay the HOME -funded loan is required only if the loan is an amortizing loan. ii. A market assessment and developer capacity review are not required for such projects.
3. For HOME-funded direct homebuyer assistance under 24 CFR Part 92.254(a) that does not include development activity:
i. A market assessment and developer capacity review are not required. ii. Homebuyer household underwriting and first mortgage review are required and must be documented.
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B. DEVELOPER CAPACITY
The City must ensure that only developers, including CHDOs, have the capacity to successfully complete and operate HOME funded affordable housing projects.
1. Evaluation Criteria: Program staff shall assess a developer’s capacity using both qualitative and quantitative measures, based on the size, scope, and complexity of the proposed project.
This evaluation will cover:
a. Organizational Experience
i. History and mission of the development entity.
ii. Number and type of affordable housing projects completed. iii. Experience with HUD programs (including HOME).
iv. Track record of compliance with federal, state, and local housing regulations. b. Project Team Qualifications
i. Names and roles of key team members.
ii. Resumes and bios of development team members (project manager, construction manager, compliance officer, etc.).
iii. Relevant certifications, licenses, or designations (e.g., HCCP, CPM, AIA, LEED AP). iv. Experience with similar projects in terms of scale, complexity, and funding sources. c. Financial Capacity (Nonprofits must meet 2 CFR 200.302–303 financial management and internal controls)
i. Financial statements for the last 2 years (audited, if available). ii. Evidence of available capital or lines of credit to manage cash flow and absorb financial risks.
iii. Pro forma review to assess ability to support predevelopment, construction, and operations.
iv. Disclosure of existing obligations and pipeline projects. d. Regulatory and Compliance Knowledge
i. Demonstrated knowledge of HOME regulations (e.g., 24 CFR Part 92), including:
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a) Income eligibility
b) Rent limits
c) Property standards
a) Period of affordability
b) Davis-Bacon, lead hazard, Section 3, and historic preservation if applicable ii. Experience with layered financing and compliance for multiple sources (LIHTC, CDBG, state housing funds, etc.)
2. Review Questions : To determine capacity, Program Staff shall consider the following questions during underwriting:
a. Does the developer have the technical and managerial experience to implement the project?
b. Does the proposed team have prior experience with similar affordable housing developments?
c. Does the team demonstrate sufficient knowledge of federal requirements, particularly HOME?
d. Can the developer manage the financial obligations and risks associated with this project? e. Is the team currently managing multiple projects, and do they have bandwidth for this one?
f. Has the developer partnered with, or hired, specialists in affordable housing and HOME compliance?
g. Has the team previously handled federal overlay requirements such as Davis-Bacon, lead hazard reduction, or environmental compliance?
h. Does the development and asset management team have experience managing properties throughout the affordability period?
3. Process and Documentation
a. Submission Requirements:
i. Organizational chart
ii. Resumes of key team members
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iii. List of completed affordable housing projects
iv. Description of experience with HOME and other federal programs v. Letters of commitment for consultants or partners, if applicable vi. Audited financial statements and/or evidence of financial capacity b. Staff shall prepare a Memo summarizing findings and including:
i. Staff analysis
ii. Scores and rationale
iii. Supporting documents
iv. Recommendation to proceed or not proceed with underwriting
4. Readiness to Proceed: Developers must demonstrate:
a. Site control
b. Preliminary development plan
c. Secured predevelopment funding
d. Clear timeline for entitlements and permits
Failure to demonstrate readiness or capacity may result in disqualification or conditional approval requiring technical assistance, training, or partnerships.
C. COST ALLOCATION & FUNDING LIMITS
All project costs must be reviewed to confirm they are eligible, necessary, and reasonable. The HOME investment must be limited to the minimum amount required to ensure the project's financial viability and long-term affordability, no more and no less.
1. Funding Parameters
a. Minimum Investment: $1,000 per HOME-assisted unit.
b. Maximum Investment: The lesser of:
i. The project’s documented financing gap;
ii. The result of the cost allocation analysis; or
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iii. HUD’s annually published Section 234 Condominium Housing basic mortgage limits (elevator-type projects) as required by CPD Notice 15 -003, adjusted as applicable for high-cost or green building areas.
c. Before final commitment of HOME funds, Program Staff will:
i. Compare total development costs with similar local projects. ii. Use tools such as RSMeans or other construction cost indices. iii. Review cost estimator credentials or third-party contractor bids. iv. Confirm costs are necessary, eligible, and reasonable. d. Ensure that the loan-to-value (LTV) ratio does not exceed 80% of the post- rehabilitation appraised value.
2. Methods
Program staff will determine the appropriate allocation method based on unit comparability.
Only HOME-eligible costs may be included in the calculation. a. Proration Cost Method: For comparable units evenly distributed throughout the project. i. HOME share = (Number of HOME-assisted units / Total units) ii. Apply the proportion to total eligible development costs. b. Standard Cost Method: For non-comparable units.
i. Use square footage and detailed construction budgets to identify costs per unit. ii. Allocate common area costs proportionally (e.g., elevators, corridors). iii. Use actual cost estimates tied to unit plans/specs. c. Hybrid Cost Method: For comparable units with unequal distribution across unit types i. Determine average cost per unit type (e.g., 1BR, 2BR). ii. Multiply by number of HOME-assisted units in each unit type. iii. Derive from total HOME-eligible development costs.
3. Documentation Requirements: At minimum the following documents must be maintained in the project file:
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• Cost allocation method used and rationale.
• Unit comparability analysis (layout, size, amenities). • Cost allocation worksheet with eligible cost breakdown. • Final development budget identifying HOME-assisted vs. non-assisted costs. • Comparison of actual per- unit HOME subsidy to the maximum per -unit subsidy limits established under CPD Notice 15-003 and 24 CFR 92.250(a).
D. DEVELOPER FEES & RETURN ON INVESTMENT (ROI)
Developer fees must be within local and HUD guidelines. The City of Lynwood sets a cap of 15% on total project costs as reasonable return. Establish reasonable limits on developer compensation and monitor expected returns.
• Developer fee limits:
a. 15% for new construction
b. 12% for acquisition/rehab
• Fees must be tied to project milestones and development phases. • Pro forma must reflect a reasonable ROI, generally not exceeding 10% cash -on-cash return.
• Excessive fees or unsubstantiated returns are not permitted.
E. MARKET ASSESSMENT DEMAND AND FEASIBILITY
Feasibility studies must demonstrate that the project addresses a clearly identified housing need and is supported by market conditions. Confirm projects meet local housing needs and are market ready.
• Market assessment is required for all HOME-assisted development projects, except for:
a. Owner-occupied rehabilitation projects under 24 CFR Part 92.254(c), and b. Direct homebuyer assistance projects under 24 CFR Part 92.254( a) that do not include development activities.
• A full market analysis study is recommended and may be required for larger projects (5 or more units, particularly those involving new construction, multifamily rental, or layered financing such as LIHTC). The study must include:
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a. Local housing demand analysis
b. Comparable rents and occupancy trends
c. Projected absorption rates
• Project must align with ConPlan and demonstrate overall feasibility. • Developer capacity, financial readiness, and project timeline must be documented. • The City assesses the developer’s financial capacity and relevant experience and will require firm written financing commitments to be in place before issuing a HOME commitment.
• Market assessments must be no less than 12 months prior to the commitment of the HOME funds.
• On a project -by-project basis, the City of Lynwood may accept a market assessment prepared by an independent third- party contractor. Acceptable documentation may include data from professional appraisers, real estate agents, renter waiting lists, or rental market trend reports.
• For large or complex projects, the City may apply administrative review fee s and require enhanced market assessment documentation. The following elements must be included in the market assessments submitted for review:
a. Descriptive Data: Current demographic, economic, and housing conditions in the community (data must be no more than 10 months old).
b. Market Area: Clearly defined geographic area from which the majority of the project's tenants are expected to come.
c. Eligible Tenant Pool: Estimated household sizes, incomes, and characteristics of likely tenants (not all area residents qualify).
d. Supply and Competition: Inventory of comparable housing options, particularly other affordable rental developments in the area.
e. Market Demand: Estimated percentage of nearby households likely to qualify for and be interested in the project’s units.
f. Absorption Period Estimates: Estimated lease -up pace and projected timeline to achieve:
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ii. Stabilized occupancy for the entire project
• Staff must make determinations based on the following:
a. Whether proposed rents are competitive and comply with HOME rent limits b. Whether sufficient evidence exists to demonstrate the units will be occupied within the 18-month deadline
c. Whether the project is likely to succeed based on submitted documentation d. Whether the project is ready for approval, with no significant changes anticipated F. REVIEW AND APPROVAL PROCESS FOR SUBSIDY LAYERING
Subsidy layering reviews must be completed and documented prior to project commitment. This includes pro forma analysis, developer fee review, and gap analysis. This review must occur in advance of execution of the written agreement, as required by 24 CFR Part 92.250(b). • Required documentation:
a. Sources and uses of funds (committed and pending)
b. Certification of other government assistance
c. Complete development budget
d. 15–20 year pro forma
• The City will review the full sources and uses of funds for each project to ensure costs are reasonable and consistent with market standards. The City expects the developer to be able to document every line item in the budget.
• All projects must include firm written financial commitments for all non -HOME funding sources prior to commitment of HOME funds.
• HOME funds may only fill the financing gap after all other sources are applied. • Analysis ensures no more HOME funds are committed than necessary. • All underwriting and subsidy layering findings must be documented in the project file and reviewed prior to execution of a written agreement.
For projects that include LIHTC, the City of Lynwood will coordinate with the State’s Tax Credit Allocating Agency to avoid duplication of effort and ensure compliance with both HOME and LIHTC requirements.
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• The City may accept the State Housing Finance Agency’s subsidy layering review if it meets or exceeds the requirements of 24 CFR Part 92.250(b).
• The following elements will be reviewed:
a. Developer fee limits as defined by both HUD and the California Housing Finance Agency (CalHFA);
b. The amount and structure of deferred developer fees; c. Cash flow projections and distributions to investors; d. Verification that HOME fills only the true financing gap after LIHTC equity and other sources are applied;
e. Alignment of affordability terms between HOME and LIHTC funding streams. • The City will require the LIHTC underwriting model used by the State (e.g., TCAC underwriting template) and a copy of the final HFA approval letter or IRS Form(s) 8609, if available.
• The City retains responsibility for ensuring that the HOME-assisted portion of the project meets all HOME requirements, including maximum per-unit subsidy, affordability period, and cost reasonableness.
G. ELIGIBLE FORMS OF HOME SUBSIDY
The City of Lynwood may use any eligible form of HOME investment permitted under 24 CFR Part
92.205(b). These include:
• Interest-Bearing Loans or Advances:
a. Repayable loans issued with an interest rate (market or below -market), often amortized over 15–30 years.
• Non-Interest-Bearing Loans:
a. Repayable loans with no interest; principal is repaid on a regular schedule. • Deferred Payment Loans (“Soft Seconds”):
a. Loans where repayment is deferred until a future event such as resale, refinancing, or maturity. These may be:
ii. Forgivable (e.g., forgiven over time or at the end of affordability period), or 183
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iii. Repayable (due upon sale, transfer, or end of term). These loans may accrue interest or be interest-free and must be secured by a recorded lien. • Grants:
a. Grants are non -repayable funds provided to eligible homeowners for eligible HOME activities.
b. While HUD does not require a lien or affordability period for some HOME -funded activities, the City may impose local requirements, including occupancy periods or recapture provisions.
c. If the City elects to impose a local occupancy requirement, the obligation must be secured by a recorded Deed of Trust, Covenant, or other enforceable instrument, consistent with City policy.
• Interest Subsidies:
a. A one -time payment to reduce a borrower’s loan interest rate or monthly payments. May also involve a reserve account to supplement payments. • Equity Investments:
a. HOME funds may be used in return for ownership interest. Repayment is based on project surplus, after expenses and loan obligations are met. • Loan Guarantees and Loan Guarantee Accounts:
a. HOME funds may be used to guarantee third- party loans or capitalize a loss reserve. Guarantees must be based on expected default rates and not exceed 20% of the total principal guaranteed.
• Other HUD-Approved Forms of Assistance:
a. Alternative investment forms may be used if approved by HUD and described in the City’s ConPlan.
H. ADDITIONAL PROGRAM RULES AND MONITORING
• Insurance: Fire and, if applicable, flood insurance is required with the City named as Loss Payee.
• Asset Limits: Applicants may not exceed $100,000 in liquid assets (excluding primary residence); retirement assets allowed under certain conditions. 184
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• Monitoring: Annual occupancy certification is required in accordance with the monitoring procedures outlined in Chapter 10.
• Repayment Triggers: Loans become due upon sale, non- occupancy, default, or borrower death.
• Termination of Assistance: May occur due to fraud, violations, or ineligibility. • Subordination: Permitted only under strict conditions (LTV ≤80%, lower interest, no cash-out, City retains position).
• Change Orders: Additional funding may be approved for eligible unforeseen costs within program limits.
• Non-Assumability: Loans are not assumable and must be repaid if property ownership or occupancy changes.
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CHAPTER 5: PROGRAM ELIGIBILITY & INCOME DETERMINATION
A. INCOME LIMITS & HOUSEHOLD ELIGIBILITY
1. Income Limits
Households must have annual gross incomes that do not exceed 80% of the Area Median Income (“ AMI”), adjusted for household size, as published annually by HUD for the Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area.
2. Household Size Determination
Household size includes all individuals residing in the unit, regardless of relationship. This includes:
• Tenants
• Unborn children
• Boarders
• Permanent live-in caretakers
• Non-eligible occupants (e.g., ineligible due to citizenship or program -specific restrictions)
3. Not included:
• Foster children (excluded from both household size and income calculation) • Individuals whose identity and residence cannot be verified (e.g., no valid ID or proof of current occupancy)
4. Special considerations:
• Children in shared custody are counted if they reside with the applicant at least 50% of the time.
• Students aged 18+ must provide proof of full -time enrollment to be considered dependents.
5. Documentation for Household Members
Acceptable documents to verify household size include:
• Birth certificates
• School records
• Court custody orders
• Adoption papers
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• Proof of full-time student status (18+)
6. Re-Examination of Income
• Income eligibility must be re-verified if more than six (6) months have lapsed between income certification and expenditure of funds.
B. APPROVED INCOME DEFINITIONS
The City of Lynwood adopts the "Part 5" (Section 8) definition of annual income, as found in 24 CFR Part 5.609.
1. Included Income Sources
All household income sources are considered, including but not limited to:
• Wages, salaries, overtime, tips, bonuses
• Self-employment or business income
• Social Security, SSI, pensions, annuities
• Unemployment, disability, worker’s compensation
• Child and spousal support
• Public assistance (e.g., CALWorks)
• Rental income and net income from assets
• Union benefits, adoption assistance
• Regular monetary gifts or contributions
• Other sources of income not specified above as determined by staff
2. Excluded Income
Certain types of income are specifically excluded from the calculation of annual income under the HOME Program as outlined in 24 CFR Part 5.609(c). These exclusions ensure that income assessments are fair and consistent with federal regulations. Program st aff must be familiar with these exclusions and ensure they are not included in the household’s annual income determination.
a. Earned income of children under 18 years of age
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• Wages, salaries, and other earnings of minors (under age 18) are not counted, except for full-time students 18 or older.
b. Foster care payments
• Payments received for the care of foster children or adults are excluded. c. Inheritance, insurance payments, or settlements
• Includes lump- sum additions such as inheritances, insurance settlements for health, accident, or death, or payments for personal or property losses (unless it provides ongoing income).
d. Temporary, non-recurring, or sporadic income
• Examples: one- time gifts, lottery winnings, or occasional financial assistance from friends or relatives.
e. Reimbursement of expenses
• Any reimbursement for medical, childcare, or out -of-pocket expenses (such as mileage or per diem) is excluded.
f. Educational financial assistance
• Educational financial assistance is excluded only to the extent it is received from sources under Title IV (e.g., Pell Grants, SEOG) or when the student is over 23 with dependent children. Other forms of student income may be partially included. Staff must review the source and use of funds. g. Resident service stipends
• Modest stipends (not exceeding $200 per month) received for resident services (e.g., participation in resident advisory boards).
h. Food stamp benefits (SNAP)
• These are specifically excluded from income.
i. Housing assistance payments
• Includes Section 8 and other housing subsidies, including payments under the HOME TBRA or other similar programs.
j. Income of live-in aides
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• The earnings of a live-in aide are not included in the household income. k. Earnings from employment programs
• Income earned through specific programs such as:
• Workforce Innovation and Opportunity Act (WIOA)
• AmeriCorps
• YouthBuild
• Job Corps
l. Lump-sum additions to assets
• Includes payments such as:
i. Deferred payments of Social Security and SSI benefits (only counted when received in regular monthly payments, not as a one-time payment), ii. Personal injury awards,
iii. Worker’s compensation lump sums.
m. Armed Forces host hazard pay or special pay
• For active military members in hostile fire zones, special pay is excluded. n. Payments to volunteers under federal programs
• For example, payments under VISTA, Retired Senior Volunteer Program (RSVP), Foster Grandparents, etc.
o. Adoption assistance payments
• These are excluded if they do not exceed $480 per adopted child. p. Amounts received under training programs
• This includes stipends, transportation, or equipment allowances from qualifying training programs.
q. Income tax refunds
• Both federal and state income tax refunds are excluded. 189
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r. Payments for crime victim compensation
• Excluded under the Victims of Crime Act (VOCA).
s. Economic Impact Payments or “Stimulus Checks”
• As of 2020 –2021 guidance, COVID -related Economic Impact Payments are excluded.
t. Other Federal Exclusions
• Amounts specifically excluded by any other Federal statute from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in 24 CFR Part 5.609(b) apply.
• Staff must confirm the legal citation of any additional exclusion and document a copy of the statute or official HUD guidance memo in the file.
3. Documentation of Excluded Income
Even though some income is excluded, documentation must still be collected to confirm its source and verify that the exclusion applies. Acceptable documentation includes, but is not limited to:
• Award letters
• Tax documents
• Bank statements
• Program participation letters
• Affidavits or certifications with supporting documentation
4. Staff Responsibility
Staff must:
a. Review all reported income sources to determine whether any fall under the above exclusions.
b. Maintain documentation to justify the exclusion of any source of income. c. Use sound judgment and apply exclusions consistently to all applicants. 190
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d. When in doubt, consult HUD’s Technical Guide for Determining Income and Allowances, the applicable Federal Register Notices, or seek guidance from HUD or legal counsel.
C. INCOME VERIFICATION PROCEDURES
Income must be verified using the acceptable documentation listed below and is valid for six (6) months. If more than 6 months pass without committing or expending program funds, income must be re-verified.
1. Verification Sources
Acceptable documents include:
a. Employment income: pay stubs (last 2 months), W-2s, employer verification b. Self-employment: tax returns (2 years), Schedule C, financial statements c. Social Security: award letters, SSA verifications, bank statements d. Child/Spousal Support: court orders, state agency documentation, notarized affidavits e. Rental income: lease agreements, tax returns (Schedule E), rent receipts with expenses
f. Public assistance: benefit letters, caseworker verification g. Asset income: bank statements (3 months), 1099s, investment statements h. Other income (e.g., pensions, annuities, unemployment): benefit statements or check stubs
Income from all adult household members (18+) must be included unless explicitly excluded.
2. Third-Party Verification
When required, the City will obtain third-party verification (written, verbal, fax, or email) with proper authorization forms, including:
a. Confidential Information Disclosure Authorization
b. Verification of Employment or Benefits Forms
Conversations with third parties must be documented via memo, including:
a. Contact person
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b. Information provided
c. Date and time of contact
3. Income Calculation Methodology
Staff must compute annual income using HUD-approved formulas:
a. Weekly income × 52
b. Bi-weekly income × 26
c. Twice-a-month income × 24
d. Monthly income × 12
For variable income, staff should:
a. Use year-to-date (YTD) income if the applicant has worked with the same employer since the start of the calendar year.
b. Include overtime and bonuses only if they are predictable and recurring. c. Use employer verification to assess irregular earnings.
Example Calculation:
If an applicant has a YTD income of $18,500 over 13 pay periods:
$18,500 ÷ 13 = $1,423.08 per pay period
$1,423.08 × 26 = $37,000.08 annual income
4. Special Circumstances
For unconventional or irregular income (e.g., recyclables sales, undocumented support), staff must obtain reliable documentation (e.g., receipts) and self-certification is not permitted.
5. Income Documentation Checklist (Appendix D)
6. The following must be documented in the file:
a. Income Verification Forms (e.g., verification of employment (VOE) , benefit award letters)
b. Pay stubs, tax returns, financial statements
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c. Household composition documentation
d. Completed Anticipated Income Determination Form
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CHAPTER 6: HOMEOWNER REHABILITATION PROGRAM POLCIES
This chapter outlines the policies and step- by-step procedures the City follows to administer HOME-funded homeowner rehabilitation activities in full compliance with 24 CFR Part 92 and other applicable HUD requirements. All projects must undergo a thorough underwriting process, as detailed in Chapter 4, to ensure that costs are reasonable and funding sources are fully identified. HOME funds will only be committed after project eligibility is confirmed, environmental review is complete, and readiness to proceed is established.
The City of Lynwood currently operates the Owner -Occupied Rehabilitation Program ( “OOR”).
The comprehensive Program Guidelines, approved by the City will be available to interested participants. The OOR provides financial assistance to low - and moderate -income Lynwood homeowners for critical home improvement projects that correct health and safety code deficiencies, improve livability and efficiency, and preserve the City’s housing stock.
The program is primarily funded with HOME funds. As necessary, Community Development Block Grant (“CDBG”) funds may also be used to support other programs such as the OOR Emergency Grant Program and eligible soft costs such as lead and asbestos testing and remediation.
Program Structure
The City of Lynwood will use its HOME Program funds for the following owner -occupied rehabilitation activities:
1. Owner-Occupied Rehabilitation ( “OOR”): Technical and financial assistance is available to qualifying homeowners of eligible properties within the City limits to complete rehabilitation activities. Depending on eligibility and need, assistance may be provided in one or more of the following forms:
• A zero percent (0%) deferred loan of up to $50,000; and/or • A one-time OOR Home Grant of up to $30,000; and
• An OOR Emergency Grant of up to $5,000, funded with CDBG, for qualifying emergency health and safety repairs. The OOR Emergency Grant is governed by separate CDBG policies and procedures and is not administered through the HOME Program; therefore, it is not addressed in detail within these Policies and Procedures.
When combined, an eligible homeowner may receive up to $80,000 in HOME funded OOR assistance ($50,000 loan + $30,000 grant). The Emergency Grant, when applicable, is in addition to the OOR Home Grant and does not reduce the homeowner’s $30,000 grant maximum.
All funding limits are subject to change based on annual HUD allocations, City Council- approved budgets, and the comprehensive Program Guidelines in effect at the time of application. 194
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A. OWNER-OCCUPIED REHABILITATION LOAN PROGRAM REQUIREMENTS The City of Lynwood provides deferred payment loans under the OOR. These loans assist eligible homeowners in correcting health and safety hazards and bringing properties into compliance with applicable building codes. Program loans carry 0% interest, requi re no monthly payments, and are secured by a recorded Deed of Trust. Repayment is deferred until a triggering event occurs.
Loan Types
The City may issue the following types of deferred loans:
1. Forgivable Loans
a. A portion or the full amount may be forgiven over time or upon meeting program requirements as adopted by City policy.
b. Forgiveness schedules, if applicable, will be outlined in the written agreement.
2. Repayable Deferred Loan
a. Full repayment is required when a triggering event occurs. b. Loans may accrue interest or be interest-free depending on the terms established by the City.
c. The loan must be secured by a recorded Deed of Trust. d. Only one OOR loan may be issued to an eligible owner during the occupancy period.
Repayment of Loan Funds
If a repayment is required, the City will recapture the outstanding loan balance according to the terms of the Promissory Note and Deed of Trust.
1. Amount Recaptured
a. The City will recapture the outstanding principal balance, plus any interest or fees as specified in the Promissory Note.
b. Because this is not a HOME homebuyer activity, no affordability period or HUD “net proceeds” formula applies.
2. Use of Recaptured Funds
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a. All loan repayments received by the City are considered program income and must be used in accordance with 24 CFR 92.503, which permits reuse for eligible HOME activities, including additional rehabilitation loans.
3. Disclosure
a. Repayment obligations and recapture terms will be disclosed and documented within the following:
• The Written Agreement.
• The Promissory Note.
• The Deed of Trust.
Repayment Triggers
Loans become immediately due and payable upon any of the following:
• Sale or transfer of the property.
• Refinance (unless explicitly approved for subordination per City policy). • Non-occupancy of the home as the borrower’s primary residence. • Default under any loan term.
• Borrower’s death, unless exempt transfers apply (e.g., surviving spouse or eligible children).
These provisions are secured by the recorded Deed of Trust and disclosed in all loan documents.
Occupancy Requirement
Housing Rehabilitation grant and loan activities do not require an affordability period.
Loan Closing and Recordation Procedures
Loan closing is the process by which the City executes, and records all required legal documents.
Loan documents are signed in the presence of a Notary Public; upon request, they may be provided in advance for borrower or legal counsel review.
A three-business-day right of rescission (if applicable under federal lending laws) must expire before Staff transmits the original Deed of Trust to the title company for recordation with Los Angeles County.
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After recordation:
1. Staff prepares the Request for Notice and obtains the City Manager’s notarized signature.
2. The Request for Notice is recorded once the Deed of Trust recording number is available.
3. Copies of all executed and recorded documents are placed in the project file.
4. Staff transmit applicable documents to the Finance Department for loan setup in the accounts receivable system.
Loan Database
To effectively manage the Loan Account and maintain an accurate record of all loan activity, the City shall maintain an ongoing loan database. The database will track each loan from origination through repayment or charge-off. At a minimum, the database shall include:
• Borrower name, address, and telephone number
• Assessor’s Parcel Number (APN)
• Loan amount and interest rate (if applicable)
• Date and recordation number of the Deed of Trust
• Date and recordation number of the Request for Notice • Status updates including:
a. Requests for payoff demand
b. Reconveyances
c. Subordination requests and determinations
d. Defaults or other enforcement actions
The database shall be updated promptly upon receipt of new information, in accordance with internal financial control procedures.
Loan Payoffs
The City typically receives a request for payoff when repayment is triggered by a property sale, transfer, or other event of acceleration as defined in the Promissory Note. These requests are usually submitted by an escrow company, title insurance company, or financial institution in the form of a Request for Beneficiary’s Demand.
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To minimize errors and ensure proper documentation:
1. The City will issue payoff demands only upon receipt of a written request.
2. Payoff demands will be provided in writing only; verbal payoff information will not be given.
3. Payoff calculations must be based solely on the recorded loan documents and City records.
4. Copies of all payoff requests and demand statements will be retained in the loan file and recorded in the loan database.
Responding to a Request for Demand
When a written payoff demand request is received, Staff shall:
1. Retrieve the loan file and review repayment terms; check the loan database for notes or extenuating circumstances.
2. Prepare a written payoff demand showing principal balance, applicable interest (if any), per-diem interest, and estimated payoff through the requested date.
3. Attach the request for demand and transmit the payoff letter to the requesting party.
4. File copies of both documents in the loan file.
If the request originates from a licensed escrow or title company, Staff shall initiate the reconveyance process within ten (10) days after receipt of full payoff in “good funds.” If the request is from any other party, reconveyance will occur only after funds have fully cleared.
For mobile homes, the City will transmit the original title/registration and conditional lien release to escrow if required to complete a sale.
Reconveying the Trust Deed
After the City has received payment in full of "good" funds, the deed of trust will be released as a lien against the property. ("Good" means funds that are drawn on a title company, escrow company, or financial institution . Funds drawn on a personal account must be cleared through the bank before reconveying the deed of trust.) A reconveyance of a trust deed will be prepared by Program Staff to be recorded (the document will note the borrower's name and current address). The document will be sent directly to the County Recorder or to the entity that provided the payoff funds, such as the title or Escrow Company for recordation. Upon receipt of the recorded reconveyance document, a copy of the recorded reconveyance will be maintained in the closed loan file and the original reconveyance will be sent to the borrower. 198
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Borrower Default
A borrower is considered in default if they fail to comply with any term of the Promissory Note, Deed of Trust, or Written Agreement. Default conditions include, but are not limited to:
1. Failure to occupy the property as the borrower’s primary residence.
2. Transfer or sale of the property without prior City approval, except for the following exempt transfers:
a. Transfer to a surviving joint tenant;
b. Transfer to the borrower’s child/children upon the borrower’s death; c. Transfer to a spouse resulting from marriage dissolution or legal separation; d. Transfer to a spouse upon the borrower’s death;
e. Transfer to an inter vivos trust in which the borrower remains both beneficiary and occupant.
3. Failure to maintain the property in safe, sanitary condition or in violation of applicable City building or housing codes.
4. Failure to pay senior mortgages, property taxes, insurance, or homeowner association dues.
5. Placing any additional liens, encumbrances, or security interests on the property without prior written approval from the City.
6. Entering into a reverse mortgage or any loan product prohibited by City policy.
If the City becomes aware of a default through routine monitoring or other means, the loan may be accelerated and become immediately due and payable in accordance with the loan documents.
Subordination
Subordination allows a new lender to take priority position ahead of the City’s lien. Subordination is generally prohibited, but the City may consider it under strict conditions consistent with City - wide policy:
• Loan-to-Value (LTV) ratio must remain at or below 80% • The refinance must result in a lower interest rate and lower monthly payment 199
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• No cash-out or equity withdrawal is permitted
• The City must retain its lien position
• No negative amortization, variable rate, or reverse mortgage loans • No ownership changes or addition of co-borrowers
• Total secured indebtedness cannot exceed program thresholds All subordination requests must be submitted in writing with supporting documentation.
Approval is at the sole discretion of the Director of Community Development.
The City’s loan will become immediately due and payable if the borrower, at any time:
1. Obtains any new loan secured by the property without City approval in lieu of subordination; or
2. Uses refinance proceeds to repay revolving or consumer debt in violation of City policy.
Charge Offs
A loan is considered a charge -off if it has been deemed uncollectible. Program Staff , in consultation with the City Attorney's office, shall make every effort to pursue the City's interest in the event of foreclosure, bankruptcy, or any scenario that involves the sale or transfer of the dwelling or the cessation of the borrower's occupancy of the dwelling. If a loan becomes uncollectible, the status and disposition of the case must be accounted for in the loan database such that the loan is not reflected in the outstanding loan balance figures.
Closing Loan File
After a loan is fully paid and the Deed of Trust (or mobile home title lien) is reconveyed:
1. The loan database must be updated to reflect final status.
2. Program income from repayment must be allocated to eligible current projects, ensuring revolving funds are used before drawing down new HOME funds.
3. Closed loan files must be retained for a minimum of five (5) years in accordance with 24 CFR 92.508.
B. OWNER OCCUPIED REHABILITAION GRANT PROGRAM REQUIREMENTS The City of Lynwood may provide OOR Grant assistance for up to $30,000 to eligible owner - occupants. Grants are provided at no cost to the homeowner; however, all standard program 200
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eligibility requirements, inspections, property standards, and documentation obligations apply equally to grant recipients.
Occupancy Requirement
HOME regulations require all owner -occupied housing rehabilitation be owner -occupied at the time of assistance.
C. APPLICANT ELIGIBILITY
The OOR is available to low-income homeowners residing in the City of Lynwood. Applicants must meet both income and occupancy requirements. Income limits are based on HUD’s published HOME Income Limits.
Applicants must meet the following baseline eligibility criteria:
• Meet HUD income limits (≤80% AMI);
• Own the property
• Occupy the residence as their primary residence;
• Property must be located within the City of Lynwood limits; • Must be a citizen of the United States or legal resident alien. If married, at least one must be a legal resident alien
D. INCOME VERIFICATION
Household income is verified in accordance with 24 CFR Part 92.203 using the adopted definition established in Chapter 5 of this manual.
Procedures
1. Program staff or HOME Program Consultant collects documentation for all household members age 18+.
2. Acceptable documentation includes:
a. Recent three (3) months of pay stubs
b. Social Security or pension benefit letters
c. Federal tax return and W-2/1099
d. Three months of bank statements
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e. Income is projected over a 12-month period.
3. Documentation must be dated within 6 months of project commitment.
4. File must include signed income certification form and all backup documentation.
E. OWNERSHIP AND OCCUPANCY STATUS
Ownership must be held in an eligible form per 24 CFR Part 92.254(c). The assisted unit must be the principal residence of the income-qualified owner throughout the compliance period. • The homeowners cannot be in a home loan modification process of trial period. • The property taxes, mortgage payments and home insurance must be paid to date with no late payments.
• The mortgage note cannot have any balloon payments, negative amortization, interest- only payments, or reverse equity.
Procedures
1. Program staff or designated HOME Program Consultant obtains:
a. Recorded deed or title showing eligible ownership form; b. Property tax bill and utility bills showing occupancy; c. Title search or property ownership verification must be completed.
2. For inherited properties, documentation of sole financial responsibility must be included.
3. Occupancy is verified again at final inspection.
F. ELIGIBLE PROPERTY TYPES
Properties assisted under the HOME Program must be:
• Traditional single-family housing with one to four dwelling units. For properties with more than one dwelling unit, each tenant in the non -owner-occupied units must be income - eligible and must provide income documentation as part of the application process for the property to qualify for HOME assistance.
• Condominium
• Cooperative (Co -op) housing units are eligible for HOME homeownership assistance if they are recognized under California law as a form of ownership, and the purchaser 202
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receives real ownership interest (e.g., shares in the corporation and the exclusive right to occupy a unit). The resident must also occupy the unit as their principal residence, and the ownership interest must be transferable in compliance with HOME requirements. a. Mutual housing units are not eligible under the HOME Program as a form of homeownership, as they do not provide residents with an ownership interest recognized under state law.
• Manufactured home (including mobile home) on a permanent foundation.
G. AFTER-REHABILITATION VALUE
Properties assisted under the HOME Program must be located within the City of Lynwood, meet the minimum rehabilitation investment threshold of $1,00 0, and comply with HOME program requirements, including after -rehabilitation value limits not exceeding 95% of the area median purchase price.
Procedures
1. The Program Staff will obtain the applicable 95% value limit based on:
a. HUD's HOME Homeownership Value Limits
2. The projected after-rehabilitation value of the property will be estimated using one of the following:
a. A licensed real estate appraisal, and
b. A comparable sales analysis using at least three recent sales.
3. Program Staff will certify that the projected after- rehabilitation value is within the 95% limit.
4. The Housing Inspector must prepare a work write-up documenting the scope of rehabilitation work, which must exceed $1,000 in costs.
5. All valuation records, calculations, and approvals are retained in the project file.
6. Value verification must occur before execution of the homeowner written agreement and before committing funds in IDIS.
This value will be used to support underwriting documentation and to ensure that after - rehabilitation estimates remain compliant with the 95% value limit as required by 24 CFR Part
92.254(b)(1). All supporting documentation must be retained in the project file. 203
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H. TYPES OF REHABILITATION PROJECTS
The City will categorize HOME- funded homeowner rehabilitation projects based on the scope and purpose of repairs needed. All rehabilitation scopes must meet the minimum property standards and be inspected by the Housing Inspector as outlined in Chapter 10.
Procedures
The City recognizes the following types of rehabilitation projects:
1. Health and Safety Rehabilitation:
a. Addresses immediate threats to occupant health and safety (e.g., exposed wiring, leaking roofs, broken windows, pest infestation).
b. Required for units with life -threatening deficiencies identified during initial inspection.
2. Code Compliance Repairs:
a. Focuses on bringing the unit into compliance with current building and housing codes.
b. May include upgrades to plumbing, electrical systems, HVAC, structural reinforcements.
3. Accessibility Modifications:
a. Includes improvements to enhance accessibility for elderly or disabled residents (e.g., grab bars, ramps, walk-in showers, widened doorways). b. Must be supported by medical documentation or age-related justification.
4. Weatherization and Energy Efficiency:
a. May include window replacement, insulation, caulking, energy -efficient appliances, and HVAC upgrades.
b. Work must result in measurable improvements in energy usage or comfort.
5. General Property Preservation:
a. Prevents deterioration through preventative maintenance (e.g., paint, stucco, concrete repair, siding replacement).
b. Only eligible when combined with health/safety or code repairs. 204
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6. Lead-Based Paint and Asbestos Hazard Mitigation:
a. Lead-Based Paint applies to pre-1978 homes with confirmed environmental hazards. b. Asbestos hazard mitigation applies to all residential rehabilitation work that disturbs asbestos-containing materials, in any home regardless of its age, and must follow applicable safety and regulatory requirements outlined in SCAQMD Rule 1403. c. Includes abatement, encapsulation, or replacement of hazardous materials as required by HUD regulations.
7. Other Rehabilitation
a. Demolition and disposal of dilapidated structures when they are a part of the reconstruction of an affordable housing unit.
b. Landscaping, sidewalks, garages, and driveways when accompanied by other rehabilitation needed on the property.
Ineligible Rehabilitation Items
a. Luxury items such as room additions to a home, swimming pools, garage conversions, washer or dryer, barbecues, etc.
b. Window air conditioners.
I. PROJECT SELECTION, COMMITMENT AND SET-UP
HOME funds will only be committed after project eligibility is confirmed, environmental review is complete, and readiness to proceed is established. Environmental clearance must be obtained before commitment, in accordance with procedures in Chapter 11.
Procedures
1. The HOME Program Consultant will assess project feasibility based on program criteria and property conditions.
2. The Housing Inspector and/or HOME Program Consultant will conduct a pre-inspection to prepare a work write-up.
3. Program Staff must confirm environmental clearance per Chapter 11.
4. Projects must demonstrate readiness to begin work within 12 months of agreement execution. The City further requires that rehabilitation work be completed within a reasonable timeframe, consistent with the project schedule and City policy, but no later than the 4-year HOME completion deadline.
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5. Program Staff will ensure that project setup in IDIS follows execution of the legally binding written agreement.
6. All written agreements must be signed and dated prior to IDIS commitment.
7. A dedicated project file will be created and maintained for each unit.
J. APPLICATION PROCESS
An application is provided to the homeowner for completion and must be submitted to Program Staff, along with supporting documentation. Once submitted, the application forms and documentation are reviewed ( Program Staff may use Sample Rehabilitation Program Checklist (Appendix E). Verifications are obtained for income, assets, employment, benefits, supplemental income, insurance, property taxes, mortgage, utility, property Title/Deed, and Tax Returns. All supporting documents must align with the eligibility verification standards in Chapter 5.
If Program Staff encounters material discrepancies such as misrepresentations, and/or income, assets, household composition, other important questions that cannot be resolved, the City reserves the right to deny assistance to the household.
The following items must be submitted with a completed and signed program application:
• Copy of mortgage “Note.”
*Note: This is NOT the Deed of Trust or Quit Claim Deed. A copy is typically obtained by calling the mortgage loan lender.
• Most recent Home Mortgage Statement.
• Copy of current Home Insurance Policy.
• Annual Property Tax Information Statement/Certification of Payment, if not included with home mortgage payment.
• Benefit letter from Social Security, pensions, child support, Supplemental Security Income (“SSI”), rental income, disability, public assistance, etc. - for all adults 18 years of age & older, if applicable.
• Copies of the last three (3) months of consecutive paycheck stubs/earning statements for all full-time and part -time employed adults 18 years of age & older from all streams of income. Note: Paychecks older than 6 months will not be accepted. Streams of income include:
a. Social Security
b. Pension/Retirement
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c. Public Assistance
d. Alimony and child support
e. Disability
f. Self-employed
g. Gig work (Uber, Lyft, Door Dash, etc.)
h. Rental Property
i. Interest from Bank Accounts and Cash Funds
j. Any source of regular income
• Copy of latest Federal Tax Return AND W -2 or 1099 Forms from the homeowner. All copies must be signed copies, and all pages must be provided; incomplete taxes will not be accepted. If no taxes are available, an affidavit shall be signed by the homeowner. • Proof of full-time college student enrollment: school transcripts/schedule if the student works.
• Copies of the last three (3) consecutive monthly bank statements for ALL bank accounts for all adults 18 years of age & older. Provide ALL pages of statement; incomplete statements or older than 6 months will not be accepted. • Proof of Assets for all adults 18 years of age & older, if applicable. • Copy of utility bill.
• Copy of California Identification (ID) or other valid identifications for all household members 16 years of age & older.
K. BENEFICIARY WRITTEN AGREEMENT
A written agreement must be executed with the homeowner prior to the commitment of HOME funds. The agreement must document all HOME -required elements to ensure compliance and serve as the legal basis for assistance. Written agreements must incorporate affo rdability, occupancy, and property standard terms as required in this manual.
All written agreements must include
• Agreement signed by all parties (Participation Agreement, Construction Contract) • Grant amounts
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• Owner occupancy requirements
• Rehabilitation work to be performed
• Completion Date
• Property standards
Procedures
1. Program staff or designated HOME Program Consultant prepares the written agreement including:
a. HOME grant amount and terms;
b. Estimated after-rehabilitation property value;
c. Scope of work;
d. Anticipated start and completion dates;
e. HOME property standards per Chapter 10;
f. Occupancy as principal residence;
2. Agreements are reviewed by the Program Staff prior to distributi on for internal signatures.
3. The homeowner, contractor, and City representatives sign and date the agreement.
4. A copy is stored in the project file and scanned into the electronic record system.
5. The homeowner must occupy the unit as their primary residence at the time of application and must continue to occupy the unit during and after rehabilitation.
Occupancy is verified at application, prior to commitment of HOME funds, and at project close-out. The City reserves the right to implement a local occupancy retention requirement for a period of up to ten (10) years following project completion, subject to program terms.
L. PROCUREMENT AND CONTRACTOR OVERSIGHT
While general procurement requirements are outlined in Chapter 11, the City maintains specific procedures for procurement and oversight of contractors under the OOR Program. • Contractors must be licensed and bonded by the State of California and be active and in good standing with the Contractors Licensing Board. Contractors must also provide evidence of 208
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Workers’ Compensation Insurance, Comprehensive General Liability, Property Damage Insurance with Combined Single Limits of at least $1,000,000, and proof of current City of Lynwood business license. The City of Lynwood must be listed as additional insured on the contractor’s Certificate of Liability insurance.
• Program Staff determine the eligibility of the contractor by checking the State Contractors License Board Site and checking that the contractor has not been debarred. Contractors must be General Class B Licensed Contractors and obtain a Unique Entity Identification Number (UEI) under sam.gov. Program staff will verify through s am.gov that the contractor is not listed on the Federal debarred list.
• A contractor with a vested interest in the property cannot bid on a rehabilitation job. Such a contractor may act as owner/builder, subject to standard construction procedures.
Procedures
1. The City’s Community Development Department will maintain a list of pre -screened, licensed, and insured contractors, also referred to as the “Contractors Courtesy List” that will be available to applicants for bid solicitations.
2. Homeowners are required to solicit at least three (3) written bids from qualified general contractors or may request bids from the City's Contractors Courtesy List. If three bids cannot be obtained after reasonable documented efforts, the homeowner may proceed with a minimum of two (2) bids, consistent with HUD procurement requirements at 2 CFR 200.320(b)(1).
3. Contractors must provide itemized bids based on the City's work write-up.
4. Bids are reviewed for cost reasonableness and lowest responsible bid is selected, pending Program Staff approval.
5. A contractor agreement is executed prior to any work beginning ; an agreement is considered executed once the agreement is signed by all parties (homeowner, contractor, and City).
6. The Housing Inspector or HOME Program Consultant monitors contractor performance throughout the project.
7. Change orders must be pre-approved in writing and justified with documentation by the homeowner, the contractor, and the City.
8. Progress payments are made subject to s pecific Program Guidelines and as stated in written agreement.
9. Final payment is made only after final inspection and homeowner acceptance. 209
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M. DISBURSEMENT PROCEDURES
The City will disburse funds in accordance with the following procedures:
1. Verification of Work Completed
Upon receipt of a contractor’s invoice, Program Staff, contractor and homeowner must inspect the property to confirm that all invoiced work items are 100% complete according to the Work Description.
a. The homeowner must sign the Progress Inspection Report and Payment Authorization form.
b. If work is incomplete or unsatisfactory, Program Staff or the homeowner will notify the contractor in writing so corrective action can occur.
2. Progress Payments (95% Disbursement and 5% Retention) a. Progress payments shall equal 95% of the cost of completed work items. b. The City shall withhold 5% retention, consistent with California Public Contract Code §7201.
c. Retention is released only after the project is complete and the statutory lien period has passed.
3. Notice of Completion & Lien Period
The Notice of Completion must be recorded within ten (10) days of project completion.
Recordation initiates the State -mandated thirty -five (35) day lien period during which subcontractors and suppliers may file claims. Retention funds will not be released until the lien period has expired and no valid lien claims remain.
4. Approval of Payments
After Staff verifies satisfactory completion of work and receipt of invoice(s):
a. Staff prepare a Request for Disbursement for the Director of Community Development.
b. Upon approval, the Finance Department processes payment to the contractor.
5. Release of Retention (5%)
The 5% retention will be released to the contractor thirty -five (35) days after the Notice of Completion is recorded, and once Staff has confirmed:
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a. No outstanding liens or claims,
b. All contract items are satisfactorily completed,
c. Any deficiencies have been corrected.
N. ONGOING REHABILITATION PROCEDURES
All rehabilitation work must be documented and inspected to ensure compliance with the City's property standards and approved scope of work. All inspections must follow the City's adopted property standards outlined in Chapter 10.
Procedures
1. The Housing Inspector conducts an initial inspection to identify deficiencies to be addressed in the rehabilitation.
2. A detailed work write-up is prepared and included in the project file.
3. Progress inspections are conducted by the Housing Inspector to confirm work is completed per specifications.
4. A final inspection is conducted to verify all work is completed and the unit meets the City's adopted property standards.
5. The homeowner signs a Notice of Acceptance form after all work is approved.
6. All inspection records, photos, and signed forms are retained in the project file.
O. PROJECT COMPLETION
HOME-assisted homeowner rehabilitation projects must be completed and reported in compliance with HUD timelines and data accuracy standards. All IDIS reporting and documentation must meet HUD closeout requirements in Chapter 3.
Procedures
1. All rehabilitation activities must be completed within four (4) years from the date HOME funds were committed to the project.
2. Upon final draw down of HOME funds, the Program staff or designate Home Program Consultant must enter completion data into IDIS within 120 days.
3. IDIS data must match the written agreement and project file records, including:
a. Property address
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b. Beneficiary household data
c. Completion date
4. The project file must include:
a. Final inspection report
b. Homeowner sign-off
c. Contractor final invoice and payment confirmation
5. The HOME Program Consultant verifies that IDIS reflects accurate and complete project information.
6. Project file must be kept for 5 years after project completion.
P. PROJECT DELAYS
Timely completion of rehabilitation work is essential to ensure program effectiveness and compliance with the approved Performance and Payment Schedule. Delays may occur for various reasons; however, responsibility for additional costs depends on the source of the delay. The City will monitor all projects for timely progress and issue corrective actions when necessary.
A delay is defined as the failure to meet agreed -upon timelines established in the approved rehabilitation contract, including the Performance and Payment Schedule.
All parties (City, contractor, and homeowner) are expected to take reasonable actions to avoid delays and to promptly address any conditions that may affect project completion.
Contractor-Caused Delays
Contractor-caused delays may include, but are not limited to:
a. Failure to report to the job site
b. Insufficient staffing or improper resource allocation c. Poor scheduling or mismanagement
d. Defective, incorrect, or incomplete work requiring correction e. Failure to order materials in a timely manner
f. Any other avoidable contractor action or omission
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City Policy
• The City will not pay for additional costs arising from contractor-caused delays. • The contractor is fully responsible for all expenses associated with correcting or mitigating such delays, including additional labor, materials, or subcontractor costs. • The City may issue corrective notices, suspend progress payments, or take other actions permitted under the construction contract until the contractor resumes work in accordance with the approved schedule.
Homeowner-Caused Delays
Homeowner-caused delays include, but are not limited to:
a. Failure to provide reasonable access to the property b. Interference with contractor operations or staff
c. Unauthorized project changes or additions
d. Failure to remove personal property that obstructs work e. Delayed signatures, decisions, or approvals needed for project progression City Policy
• The homeowner is responsible for any additional costs resulting from homeowner-caused delays, including contractor remobilization, extended labor or equipment charges, or rescheduling fees.
• The City may temporarily pause project activity until the homeowner resolves the cause of delay.
• Continued or unremedied homeowner-caused delays may result in project suspension or cancellation in accordance with program guidelines.
Q. DISPUTE RESOLUTION AND CITY'S LIMITED ROLE
The City of Lynwood administers its homeowner rehabilitation program in accordance with Federal HOME Program regulations and local policies. The City is not a party to the construction contract and assumes no liability for disputes between the homeowner and contractor beyond the scope of the approved project.
The homeowner acknowledges that assistance under this program is limited to the specific repairs and improvements listed in the final City -approved scope of work and any approved 213
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change orders. Any concerns raised by the homeowner regarding items not included in the approved scope, such as damage, defects, or dissatisfaction with components not identified or approved for repair (for example, a broken window not listed in the work write -up), are considered outside the City's responsibility and must be resolved between the homeowner and the contractor independently.
If City inspections confirm that all contracted work has been completed in accordance with program standards and the approved scope, the project will be considered complete, and final payment will be issued. The City shall not delay payment or extend proje ct timelines based on disputes regarding unapproved or omitted items.
Note:
• Homeowners are responsible for thoroughly reviewing the proposed scope of work prior to approval and notifying Program Staff of any known deficiencies at that time. Post- construction claims for unlisted items will not be eligible for additional assistance. • Any disputes between the homeowner and contractor regarding workmanship, damages, or other contractual matters outside the approved scope must be pursued by the homeowner directly through civil court or other legal remedies. The City will not participate in, mediate, or otherwise intervene in these matters R. OTHER HOME REHABILITATION REQUIREMENTS
When HOME funds are used to rehabilitate owner-occupied units in buildings with multiple units (2–4 units), the City must follow specific requirements regarding the use of funds for shared or rental spaces.
• Owner-Occupied Units Only: If HOME funds are used solely to rehabilitate the owner - occupied unit in a 2 - to 4-unit residence, then rental housing rules do not apply to the remaining units.
• Shared/Common Areas: Costs associated with common areas (e.g., roof, foundation, HVAC, site improvements) must be pro-rated based on the number of units, regardless of whether the rehabilitation targets only the owner’s unit. • Prohibited Use Without Compliance: HOME funds cannot be used for any portion of costs attributable to rental units unless the project complies with applicable HOME rental housing requirements, including income eligibility, rent limits, and affordability periods.
Procedures
1. Determine Project Scope
• Confirm whether the rehabilitation is limited to the owner-occupied unit. 214
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• Identify any shared systems or site improvements included in the scope of work.
2. Pro-Rata Costs for Common Elements
• Divide costs proportionally by the total number of units in the property. • Example: In a 3-unit property, if the roof is replaced, only 1/3 of the total roof cost is eligible for HOME funding under an owner-occupied-only project.
3. Document Cost Allocation
• Maintain records showing how shared costs were calculated. • Include breakdowns in project files to demonstrate compliance. • Cost allocation procedures are consistent with those described in Chapter 4.
4. Rental Housing Rules Trigger
If any portion of HOME funds is used for rental units or shared improvements not properly pro - rated, then full rental housing requirements apply to those units. 215
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CHAPTER 7: CHDO PROJECTS AND AFFORDABLE HOUSING PROGRAM POLICIES This chapter outlines the City of Lynwood's policies and procedures for the administration of its Affordable Housing Program using HOME Program funds. This chapter is intended to guide developers, CHDOs, nonprofit organizations, and Program Staff through the requirements and processes necessary for funding, developing, and maintaining eligible affordable housing projects.
A. PROJECT SELECTION AND ELIGIBLE ACTIVITIES
CHDO and Affordable Housing Application Information
The City of Lynwood provides information and application materials for the HOME Affordable Housing Program on an ongoing yearly basis through its official website https://www.lynwoodca.gov/174/Housing-Division The City maintains an up-to-date page on the Housing Division section of its website where interested applicants can access:
• CHDO-specific requirements, application, and documentation. • Affordable housing requirements, application procedures, and eligibility guidelines. • Current funding availability, if applicable.
• City affordable housing priorities and scoring criteria.
Eligible applicants may include property owners, developers, CHDOs, nonprofit organizations, and other qualified entities.
Submitted proposals will be evaluated, underwritten, and scored in accordance with standardized criteria established by the City. Projects must align with the City’s housing goals and comply with all applicable HOME Program regulations.
Eligible Program Activities
The following activities are eligible for HOME funding under the Affordable Housing Program:
• Acquisition of Standard Rental Properties
a. The property must be move-in ready and meet the minimum property standards at the time of acquisition.
b. Existing tenants must meet income eligibility requirements. In some cases, relocation requirements may apply (see Chapter 5).
c. Acquisition-only projects may be ineligible if the property requires rehabilitation to meet minimum standards.
• Rehabilitation (with or without Acquisition):
a. Includes rehabilitation of residential properties and conversion of non- residential buildings to residential use.
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b. May include demolition and reconstruction if the original structure was destroyed within 12 months prior to commitment.
c. If reconstruction increases or decreases the total number of units, the project will be treated as new construction and must meet all applicable new construction requirements.
d. Projects that expand beyond existing exterior walls are considered new construction. • Rehabilitation of Scattered-Site Single-Family Rentals a. Eligible when multiple single -family rental units are rehabilitated within a defined, single neighborhood.
• New Construction of Rental Units
b. New construction must comply with federal HOME new construction standards, as well as state and local building codes.
• Development of Mixed-Income Housing
c. Projects may include both HOME-assisted and market-rate units, provided that cost allocation is clearly documented and compliant with HOME regulations.
Project-Specific Predevelopment Assistance
The City may allocate up to 10% of its CHDO set-aside for predevelopment loans. These loans are only available to CHDOs pursuing a HOME-eligible project. a. Predevelopment loans may be used for customary and reasonable project costs such as feasibility studies, legal services, architectural or engineering expenses, title clearance, site control, or zoning approvals.
b. General operating costs of the CHDO are not eligible. c. Loans must be repaid from the project's construction financing or future project income, unless the project is deemed infeasible due to factors beyond the CHDO’s control.
Eligible Property Structures / Project Types
1. Multifamily apartment complex
2. Garden-style apartments
3. Scatter site single-family homes
4. Group homes
• Typically, one unit with separate bedrooms for occupants • Includes shared living spaces and common areas
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• Rent applies to the unit as a whole, and individual tenant rents may be proportionately divided
Transitional housing
• Often used for individuals with disabilities
• Includes supportive services to assist residents in transitioning to permanent, independent housing
Single Room Occupancy (SRO)
• Consist of single -room dwellings with or without in- unit sanitary and food preparation facilities
• Intended primarily for persons who are homeless, extremely low-income, or disabled • Must comply with the City’s zoning and building regulations • SRO units should be designated as 0-bedroom or efficiency units • If SRO units lack individual food preparation and/or sanitary facilities, rent must be set at 75% of the applicable HOME rent limit
Ineligible Project Types
• Nursing Homes
• Homeless Shelters
• Dormitories
• Half-way houses
• Student Housing
B. ELIGIBLE COSTS AND FEES
HOME funds may be used to cover a broad range of development expenses associated with new construction, rehabilitation, or acquisition of rental housing. However, funds may not be committed or disbursed until all project commitment requirements are met, including:
• Secured site control;
• Completed environmental review (as applicable);
• Confirmed and committed financing for the full scope of the project.
Note: Land acquisition, demolition, and site preparation alone do not constitute a complete, fundable HOME project.
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Eligible Costs
HOME funds may be used for the following types of costs when associated with an eligible affordable housing project:
a. Acquisition of land and existing structures
b. Predevelopment and soft costs, including:
• Environmental reviews
• Architectural and engineering services
• Legal fees
• Appraisals and market studies
c. Demolition and site preparation (when part of an eligible development) d. Construction labor and materials (including related general requirements) e. Relocation assistance (as required under the Uniform Relocation Act) f. Refinancing costs, in limited cases when associated with rehabilitation of eligible properties
g. Developer fees (reasonable and within City-approved limits) h. On-site infrastructure improvements, including utility connections at the property line i. Operating Deficit Reserve (ODR) for up to 18 months during lease-up (see below) Ineligible Costs
HOME funds may not be used for the following expenses:
a. Creation or funding of reserves beyond the 18-month Operating Deficit Reserve b. Development, operations, or modernization of public housing c. Acquisition of property owned by the Participating Jurisdiction (PJ), i.e., City -owned land or buildings
d. Project-based rental assistance or long-term operating subsidies e. Payment of delinquent taxes, fees, or charges associated with the project f. Matching funds for other federal programs
g. Luxury amenities or features not required for standard occupancy, such as:
• Pools
• Hot tubs
• Clubhouses
• Stand-alone playgrounds or recreation areas
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h. Community facilities not exclusively reserved for use by project tenants i. Other costs not explicitly authorized in the HOME regulations Operating Deficit Reserve
To ensure the financial stability of new rental projects during the initial lease-up period, the City of Lynwood requires developers to include an Operating Deficit Reserve (ODR) in their development budgets.
a. The reserve is limited to a maximum of 18 months and may be used to cover:
• Property management expenses
• Security
• Maintenance staffing
• Utilities
• Debt service
b. HOME funds may be used to capitalize this reserve, subject to underwriting approval. c. Any unused ODR funds at the end of the lease -up period must be returned to the City of Lynwood.
d. This reserve is not renewable or extendable, and it cannot be repurposed for ongoing operations or other reserve types.
CHDO Proceeds vs. Program Income
For CHDO set-aside projects, it is important to distinguish between program income and CHDO proceeds:
• CHDO proceeds are defined at 24 CFR Part 92.300(a)(6) and refer to income received by a CHDO from a HOME -assisted rental project that it develops, owns, or sponsors. These proceeds may be retained by the CHDO and reused for HOME -eligible activities, subject to the terms of the written agreement with the City and must be tracked by the City for compliance.
• Program income, as defined in 24 CFR Part 92.2 and Part 92.503, refers to income received by the City or its subrecipients as a direct result of HOME funds. Program income must be returned to the City’s HOME account and used in accordance with HUD regulati ons. It must be reported in IDIS.
The City will ensure that all written agreements with CHDOs clearly identify whether and how CHDO proceeds may be retained, and what activities they may be used for. Proceeds not addressed in a written agreement shall be treated as program income and returned to the City’s HOME account.
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C. UNDERWRITING AND SUBSIDY LAYERING
All projects receiving HOME funds through the City of Lynwood’s Affordable Housing Program must undergo a comprehensive underwriting review to ensure cost efficiency, feasibility, and appropriate use of public funds. Underwriting helps the City determine the amount of HOME funds required are reasonable and necessary and ensures that the City does not invest more HOME funds than necessary.
Purpose of Underwriting and Subsidy Layering
Underwriting and subsidy layering shall be performed by Program Staff or contracted professionals in accordance with the procedures outlined in Chapter 4 of this manual. The review must:
• Ensure that the requested HOME funding amount is reasonable, necessary, and within the per-unit subsidy limits;
• Confirm overall project feasibility, using available cost estimates, development pro formas, and funding commitments;
• Validate that other sources of financing are firmly committed and that the project has sufficient resources to reach completion.
• Verify compliance with HUD’s maximum per- unit subsidy limits under 24 CFR 92.250(a) and CPD Notice 15 -003, which require use of Section 234 Condominium Housing basic mortgage limits (elevator-type projects), as annually published by HUD. Documentation comparing City subsidy levels against these limits must be maintained in the project file.
When Underwriting Must Occur
Underwriting is required at the following points in the project development process:
• At initial commitment: Based on available cost estimates and identified financing sources. • Upon significant cost changes: For example, when change orders, updated bids, or scope changes occur.
• At final draw request: A final assessment must be performed to verify actual costs and confirm compliance with HOME requirements before disbursing final funds.
D. MARKET ASSESSMENT
Each project application must include a market demand analysis as outlined in Chapter 4 of this manual.
The assessment must:
• Analyze local housing demand in the neighborhood where the project is located; 221
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• Demonstrate that the proposed project is appropriate in scale, unit mix, design, and affordability for the area;
• Confirm that rents, bedroom sizes, and amenities are consistent with the needs of the target population;
• Establish that the project will be competitive and lease -up successfully within the required 18-month period following project completion.
E. DEVELOPER CAPACITY REVIEW
This section provides detailed guidance on the qualifications, roles, and responsibilities of CHDOs as they relate to the City of Lynwood's HOME -funded Affordable Housing Program. All general procedures for reviewing developer capacity are found in Chapter 4 ; this section supplements that guidance with specific information about CHDO eligibility and use of CHDO set-aside funds.
What is a CHDO?
A Community Housing Development Organization or CHDO is a private nonprofit, community - based organization that meets specific federal requirements under the HOME Program. CHDOs must have staff with demonstrated development experience and must be capable of owning, developing, or sponsoring affordable housing for the community they serve.
To be designated a CHDO, an organization must meet detailed requirements regarding:
• Legal status
• Organizational structure
• Board composition
• Staff capacity
• Community accountability
CHDOs may only receive HOME set -aside funds when undertaking affordable housing activities as defined in this chapter . CHDO certifications must be reviewed and renewed annually to confirm continued eligibility, in alignment with 24 CFR Part 92.300(a).
CHDO Project Completion Timeline
HOME regulations require that any project receiving CHDO set- aside funds must be completed within four (4) years of the date of the executed written agreement committing the funds. If a project cannot be completed within that timeframe, the City of Lynwood may request a one-year extension from HUD, with documented evidence that the project is still feasible.
Eligible CHDO Roles in Rental Housing
A CHDO may serve in one of three roles in HOME -assisted affordable housing projects: Owner, Developer, or Sponsor. These roles are defined as follows:
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• CHDO as Owner: To qualify as a CHDO in the Owner role, the organization must:
a. Hold fee simple title to the property or have a long-term ground lease; b. Be the sole owner (no partnership ownership structures permitted); c. If not self- developing, hire a developer and oversee rehabilitation or construction; and
d. Hire or contract with a qualified project manager to manage the entire process, including:
i. Securing zoning and entitlements
ii. Obtaining financing (non-HOME sources)
iii. Selecting contractors
iv. Monitoring construction
v. Evaluating cost reasonableness
• CHDO as Developer - A CHDO acting as a Developer must:
a. Own the project site through fee simple title or long-term ground lease (covering the affordability period); and
b. Be solely responsible for all aspects of the development process, including:
i. Zoning and permitting
ii. Securing all financing
iii. Hiring design and construction professionals
iv. Construction oversight
v. Cost verification and control
Note: To be considered a “CHDO Developer” the organization must also be the Owner of the project.
• CHDO as Sponsor: There are two ways a CHDO may qualify as a Sponsor:
a. Option 1: Project Ownership through Affiliated Entity i. The housing is owned or developed by:
A wholly owned subsidiary of the CHDO;
A limited partnership (LP) in which the CHDO or its subsidiary is the sole general partner; or
A limited liability company (LLC) in which the CHDO or subsidiary is the sole managing member.
Additional requirements:
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The subsidiary may be nonprofit or for -profit but must be wholly owned by the CHDO.
The operating agreement must only allow CHDO removal “for cause,” and any replacement must be another CHDO.
HOME set -aside funds must be provided directly to the ownership entity (e.g., LP, LLC).
b. Option 2: Transfer to Another Nonprofit
i. A CHDO may develop affordable housing with the intent to transfer ownership to another pre-identified nonprofit upon completion.
Requirements:
The CHDO must hold title or a long -term ground lease during development and control all development activities.
The successor nonprofit must be selected before the CHDO receives HOME funds.
The recipient nonprofit must not have been created by a governmental entity.
The successor assumes all compliance obligations (including affordability and repayment requirements).
If transfer does not occur post- construction, the original CHDO retains full responsibility.
CHDO Legal and Organizational Requirements
To be eligible for CHDO designation, an organization must:
• Be formally organized under state or local law;
• Hold valid IRS tax-exempt status (501(c)(3) or 501(c)(4)); • Be independent of any governmental entity (e.g., PJ, housing authority, redevelopment agency);
• Include in its charter, bylaws, or articles of incorporation a stated purpose to provide affordable housing to low- and moderate-income households; • Prohibit net earnings from benefitting members, founders, or private individuals; • Be free from control by for-profit entities that could benefit from its activities.
CHDO Board Composition and Community Accountability
CHDOs must demonstrate accountability to the community they serve in two primary ways:
1. Board Composition Requirements
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• At least one-third of the CHDO’s board members must represent the low- income community. These board members must be one of the following:
a. Low-income residents;
b. Residents of a low-income neighborhood; or
c. Elected representatives of low-income neighborhood organizations. • The City of Lynwood will require CHDO Board Member Certification (Appendix F) from each board member, verifying residence in or representation of a neighborhood that is at least 51% low-income.
• It is strongly encouraged that these members come directly from the community served by the CHDO project.
2. Community Input in Project Design
• CHDOs must maintain a formal process for securing community input on their affordable housing activities. This includes conducting outreach, community meetings, and direct engagement with neighborhood groups or service providers.
Limitations on CHDOs Formed by For-Profit Sponsors
If a CHDO is formed or sponsored by a for-profit entity, strict independence must be maintained:
• The for-profit’s primary purpose must not be housing development or management; • The CHDO must be free to procure goods and services from any vendor; • The for-profit sponsor may not appoint more than one-third of the board; • Any board members appointed by the for -profit may not appoint the remaining two - thirds;
• No officers or employees of the for-profit entity may simultaneously serve as officers or employees of the CHDO.
F. TENANT ELIGIBILITY
All tenants residing in HOME-assisted rental units must meet the income eligibility requirements established by HUD. At the time of initial occupancy, each household must be verified to have an income at or below the applicable AMI limit for the unit depending on unit designation and project structure.
• Income must be calculated and verified in accordance with HUD’s Part 5 definition of annual income and verified using acceptable third- party documentation as outlined in Chapter 5.
• Tenants are subject to annual income recertification to ensure continued compliance throughout the affordability period. Any unit that no longer qualifies must be replaced with another income-eligible tenant at the next available opportunity. 225
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• If a tenant’s income increases above 80% of AMI after initial occupancy, the project owner must comply with the HOME over -income requirements under 24 CFR Part 92.252(i), including:
a. Reclassifying the unit as "over-income:" The unit remains a HOME-assisted unit but is no longer considered occupied by a low-income household. b. Adjusting rent appropriately:
• If the tenant occupies a low HOME rent unit, the rent may be increased to High HOME Rent.
• If the tenant occupies a High HOME rent unit, the rent must remain affordable and reasonable per HUD standards, even if the tenant is over-income.
c. Maintaining unit mix compliance: The project owner must ensure that the required number of units continues to be occupied by income -eligible households. If a tenant becomes over-income, the next available comparable unit must be rented to a new income-eligible tenant to maintain the proper mix of HOME-assisted units. d. Continued compliance monitoring: The over-income tenant’s rent and status must be tracked annually, and the project owner must demonstrate how compliance with unit targeting is maintained.
• Project owners must maintain tenant files and provide documentation to the City upon request, demonstrating compliance with income targeting requirements and unit mix. • Additional requirements and documentation standards are detailed in Chapter 5.
G. LEASE REQUIREMENTS
All HOME -assisted rental projects must achieve full lease -up within 18 months of the official project completion date, which is defined as the date when construction is finished, the property meets all HOME requirements, and it is ready for occupancy. If any units remain vacant six (6) months after project completion, the owner is required to submit a marketing and outreach plan to the City of Lynwood to demonstrate active efforts to lease the units to eligible tenants.
Should HOME-assisted units remain vacant at the 18 -month mark, those units will be deemed ineligible under the HOME Program, and the proportional share of HOME funds associated with the vacant units must be repaid to the City.
Project owners are responsible for ensuring that all leases comply with lease and tenant requirements throughout the affordability period.
H. LEASE & TENANT PROTECTIONS
The City of Lynwood requires that all leases and tenancy policies for HOME -assisted rental units meet federal regulations to ensure fairness, security, and housing stability for tenants. These protections apply throughout the entire affordability period of the project. 226
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Written Lease Requirement
• All tenants in HOME-assisted units must be provided with a written lease that:
a. Clearly outlines the rights and responsibilities of both tenant and landlord b. Has a minimum term of one year, unless both parties mutually agree in writing to a shorter lease period
Prohibited Lease Provisions
• In accordance with 24 CFR Part 92.253(b), leases for HOME -assisted units must not include the following:
a. Agreement to be sued or to admit guilt or judgment in favor of the owner b. Agreement allowing the owner to take, hold, or sell tenant property without legal process
c. Waiver of the owner's responsibility for negligence or wrongdoing d. Agreement allowing legal action without notice to the tenant e. Agreement allowing eviction without legal proceedings or court decision f. Waiver of the right to a jury trial
g. Waiver of the right to appeal a court decision
h. Agreement to pay legal fees regardless of case outcome (except when the tenant loses in court)
i. Agreement to accept mandatory supportive services (unless in transitional housing)
Termination of Tenancy and Non-Renewal
• Leases may only be terminated and not renewed for good cause, including:
a. Serious or repeated lease violations
b. Violation of federal, state, or local law
c. Other good cause, such as chronic late payment or disruptive behavior • Additional Requirements:
a. Tenants must be given at least 30 days’ written notice of termination or non- renewal
b. Terminations for reasons not listed above are prohibited during the affordability period
Tenant Selection Policies & Fair Housing Compliance
• Property owners must adopt and implement written tenant selection criteria that:
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a. Are consistent with federal fair housing laws
b. Are applied uniformly to all applicants
c. Do not discriminate based on race, color, national origin, religion, sex, familial status, disability, or other protected class
d. Allow for reasonable accommodations for persons with disabilities e. Consider alternative credit or rental histories to promote access • The City will review these policies during initial project approval and as part of ongoing compliance monitoring.
Violence Against Women Act (VAWA) Protections
• While not required under HOME regulations, the City strongly encourages property owners to adopt VAWA protections, which prohibit evictions or lease terminations due to a tenant's status as a victim of:
a. Domestic violence
b. Dating violence
c. Sexual assault
d. Stalking
• Owners should include VAWA language in leases and provide the HUD- approved VAWA notice and certification forms to tenants.
Additional City Requirements
• All leases and tenant policies for HOME -assisted units are subject to City review and approval
• Owners must retain all executed lease agreements and make them available upon request • The City may deny HOME funding to property owners with a history of discriminatory or abusive lease practices
I. RENT LIMITS & UTILITY ALLOWANCES
All HOME -assisted rental units must comply with HUD- established rent and utility allowance limits. These limits are designed to ensure affordability for low- and very low-income households while providing flexibility to developers and property managers in maintaining viable rental operations. This section provides detailed guidance for determining allowable rents, applying utility allowances, and understanding requirements for specific project types, including group homes and SROs.
Rent Limits
Rents for all HOME -assisted units must not exceed HUD’s published High HOME or Low HOME rent limits, which are released annually and are specific to the local jurisdiction. 228
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• High HOME rents apply to units designated for households earning up to 60% of AMI. • Low HOME rents apply to units designated for households earning at or below 50% AMI and are typically lower to serve very low-income households.
At the time of initial occupancy, all tenants must have incomes at or below 60% of AMI. After initial occupancy, owners may lease High HOME rent units to households earning up to 80% of AMI, but Low HOME rent units must always remain income targeted.
The City of Lynwood Housing Division will distribute the most current HUD HOME rent limits at the start of each program year and as updates are published. Current limits can also be accessed at: https://www.hudexchange.info/programs/home/home-rent-limits.
Rent Limits for Group Homes
For group homes assisted with HOME funds, the rent limit for the entire home is based on the Fair Market Rent ( “FMR”) for a unit with the appropriate number of bedrooms. The total rent collected from tenants must not exceed the FMR. Individual tenants may pay an equal portion of the FMR, or a proportionate share based on room size or desirability.
Rent Limits for Single Room Occupancy (SRO) Units
For SRO projects, rent limits depend on the presence of in-unit facilities:
• If the unit includes either food preparation or sanitary facilities (or neither), the rent limit is 75% of the FMR for an efficiency (0-bedroom) unit.
• If the unit includes both food preparation and sanitary facilities, the rent limit is the lesser of:
a. The High or Low HOME rent limit (depending on designation) for an efficiency unit, or
b. The FMR for an efficiency unit.
Minimum Income Targeting Requirements
For projects with five or more HOME -assisted units, at least 20% of the HOME units must be designated as Low HOME rent units to serve very low- income tenants. The remaining 80% may be rented at the High HOME rent limit, provided tenant incomes meet the applicable threshold.
Reasonable Fees
Property owners may charge tenants for optional services (e.g., parking, meals, transportation) as long as:
• The fees are customary and reasonable for the neighborhood; • The services are voluntary;
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• The charges are not included in the gross rent used to determine compliance with HOME limits.
Utility Allowances
HOME rent limits are gross rents, meaning they include the cost of utilities typically paid by the tenant. If tenants are required to pay utilities directly, property owners must deduct an approved Utility Allowance from the published HOME rent limits to determine the maximum allowable tenant rent.
Example Calculation:
High HOME Rent Limit: $725
Utility Allowance: $50
Maximum Tenant Rent: $675
Utility Allowance Policy and Administration
The City of Lynwood, through the Los Angeles County Development Authority (LACDA) Utility Allowance Study, establishes allowances based on standard appliances present in all rental units.
The study includes a fixed allowance for a range/microwave and refrigerator in every unit. Other costs such as heating, cooking fuel, water heating, trash collection, and additional electric use are itemized separately as reflected in the HUD-52667 Utility Allowance Schedule.
The full Utility Allowance Schedule is available on the City’s webpage https://www.lynwoodca.gov/174/Housing-Division and can also be requested by email at [email protected].
J. COST ALLOCATION
Cost allocation is a required process under the HOME Program to ensure that HOME funds are used only for the eligible costs attributable to HOME-assisted units and a proportionate share of common area costs. The purpose is to prevent the over -subsidization of projects with both HOME-assisted and non-assisted units.
For each rental project that includes a mix of HOME -assisted and market-rate units, the City of Lynwood must perform a cost allocation analysis to determine the maximum amount of HOME funds that can be invested. This includes reviewing the number of assist ed units, their square footage, bedroom sizes, and any exclusive or shared use of amenities or systems.
In all cases, the total HOME investment must also comply with HUD’s maximum per-unit subsidy limits, as outlined annually by HUD and referenced in Chapter 4 of these policies and procedures.
The City of Lynwood will follow the cost allocation procedures established in Chapter 4 when evaluating and underwriting projects. This process must be completed before committing HOME funds and may be re-evaluated if there are substantial project changes. 230
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K. OCCUPANCY AND AFFORDABILITY
All HOME-assisted affordable housing projects must comply with minimum affordability periods as outlined in 24 CFR Part 92.252. The affordability period is determined by the total amount of HOME funds invested per unit and is established during the underwriting process. The City of Lynwood reserves the right to require longer affordability periods than the federal minimum based on project structure, public benefit, or funding levels.
The required minimum period of affordability for HOME-assisted affordable housing is as follows:
FIGURE 7-1: MINIMUM PERIOD OF AFFORDABILITY
Affordable Housing Activity Minimum Period of Affordability (Years) Rehabilitation or acquisition of existing
housing per -unit amount of HOME funds:
Under $25,000
5 years
$25,000 - $50,000 10 years
Over $50,000 or rehabilitation involving
refinancing
15 years
New construction or acquisition of newly
constructed housing
20 years
If additional HOME funds are awarded after the original affordability period has ended, the City may execute a new written agreement to extend the affordability period by an additional 10 years, provided the project remains eligible.
Enforcement of Affordability Restrictions
As required by HUD, all HOME -assisted rental projects subject to an affordability period must have legally enforceable restrictions in place, regardless of whether the HOME loan is repaid or the property is transferred to another entity. These restrictions will be recorded with the Los Angeles County Registrar-Recorder/County Clerk and shall include, at a minimum:
• A fully executed written agreement between the City and the owner outlining HOME obligations;
• Deed restrictions or restrictive covenants that bind current and future owners for the duration of the affordability period.
These documents ensure the long-term benefit of public investment and protect the affordability of units for income-eligible tenants throughout the required term. 231
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L. ONGOING COMPLIANCE AND PROPERTY INSPECTIONS
All HOME-assisted rental properties are subject to ongoing monitoring by the City of Lynwood to ensure compliance with federal regulations throughout the affordability period. This includes physical inspections, income and rent verifications, and financial oversight.
Property Inspections
Properties will be inspected on a recurring schedule, ranging from every one (1) to three (3) years, depending on the total number of HOME-assisted units and the length of the affordability period.
Inspections will assess compliance with HUD’s property standards and health and safety requirements.
All inspections will be conducted in accordance with the policies and procedures outlined in Chapter 10, which describes the City’s adopted inspection standards, notification protocols, and re-inspection process. All physical inspections conducted during the affordability period shall use HUD’s NSPIRE standards, in accordance with CPD Notice 25 -01, effective for HOME inspections as of October 1, 2024.
Corrective Actions for Non-Compliance
If any deficiencies are identified during inspections or monitoring reviews, the property owner will be required to submit and implement a Corrective Action Plan within a specified timeframe.
Continued non- compliance may result in enforcement actions, including repayment of HOME funds or loss of eligibility for future funding.
Reserve Requirements
To promote the long -term sustainability of affordable rental housing, project owners are required to maintain adequate replacement reserves and operating reserves throughout the affordability period. These reserves must be sufficient to:
• Address capital repairs or system failures,
• Cover temporary operating deficits,
• Ensure continued property upkeep and livability for tenants.
Reserve levels will be reviewed during underwriting and monitored throughout the life of the project.
M. AFFORDABILITY ENFORCEMENT AND PROPERTY TRANSFERS
To ensure long -term compliance with the HOME Program, the City of Lynwood enforces affordability restrictions on all HOME -assisted affordable housing projects throughout the required affordability period, as defined in Section J.
These affordability obligations remain in effect even if the property is sold, transferred, refinanced, or the HOME loan is repaid.
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To enforce these requirements, the City requires the execution and recording of the following legal documents at project commitment:
• A written agreement outlining the owner’s obligations under the HOME Program, including affordability terms, income targeting, rent limits, and property standards; and • A recorded deed restriction or restrictive covenant that binds current and future owners to these terms for the full affordability period.
These documents must be recorded with the Los Angeles County Registrar-Recorder/County Clerk and shall remain in effect for the entire affordability period, regardless of changes in ownership or repayment status.
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CHAPTER 8: HOMEBUYER ASSISTANCE POLICIES
The City of Lynwood operates a HOME-funded Homebuyer Assistance Program to expand access to sustainable homeownership opportunities for income -eligible households. The program provides HOME -eligible financial assistance to qualified first -time homebuyers to support the purchase of an owner -occupied home within the City limits. All homebuyer assistance is administered in accordance with 24 CFR Part 92, applicable HUD guidance, and the City’s adopted policies and procedures.
The City will implement detailed Program Guidelines, forms, and underwriting standards to support consistent program administration.
A. ELIGIBLE HOMEBUYER ACTIVITIES
In accordance with 24 CFR 92.254(a)(2), HOME funds may be used to support one or a combination of the following homebuyer activities:
Home Purchase Assistance
• Assistance to low-income households to acquire housing in move-in condition through:
a. Down payment assistance,
b. Closing cost assistance,
c. Secondary financing provided in conjunction with a private first mortgage, and/or d. Direct HOME loans provided to the homebuyer.
Acquisition, Rehabilitation, and Resale
• HOME funds may be provided to the City, a CHDO, subrecipient, or developer to:
a. Acquire and rehabilitate substandard housing, and
b. Sell the rehabilitated unit to an eligible low-income homebuyer.
New Construction for Homeownership
• HOME funds may be used to support the construction of new housing intended for sale to eligible low -income homebuyers, either directly by the City or through qualified developers or CHDOs.
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Lease-Purchase Programs
• The homebuyer must qualify as a low -income family at the time of signing the lease - purchase agreement.
• The lease-purchase agreement must require purchase of the housing within 36 months of execution.
• If the first homebuyer does not acquire the housing, the owner must sell the unit to another eligible low -income homebuyer within 48 months of execution of the original lease-purchase agreement.
• If the unit is not sold within the required timeframe, the housing becomes subject to the HOME rental requirements at § 92.252.
B. HOMEBUYER ELIGIBILITY REQUIREMENTS
Income Eligibility
• Homebuyers must be low-income households, defined as households with incomes at or below 80% of Area Median Income (AMI), adjusted for household size. • Income must be determined in accordance with 24 CFR 92.203 and Chapter 5 of this manual.
First-Time Homebuyer Requirement
• Homebuyers must meet HUD’s definition of a first-time homebuyer at 24 CFR 92.2, unless an exception permitted by HUD applies and is documented.
Eligible Forms of Ownership
• Ownership must be fee simple or another HUD-approved equivalent form of ownership. • Contracts for deed, installment contracts, or land contracts are not eligible forms of owner
Principal Residence Requirement
• The assisted unit must be occupied by the homebuyer as their principal residence for the full affordability period consistent with 24 CFR 92.254(a)(4). • Subleasing is not permitted during the affordability period. • The principal residency requirement will be imposed in the written agreement and secured through recorded legal instruments, as applicable. 235
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C. PROPERTY ELIGIBILITY AND STANDARDS
Eligible properties must:
• Be located within the City of Lynwood;
• Meet HOME Property Standards at 24 CFR 92.251, including applicable health and safety requirements as outlined in Chapter 10 of this manual;
• Comply with lead-based paint requirements at 24 CFR Part 35; • Meet applicable accessibility, fair housing, and local building code requirements.
Property Value Limits
• The purchase price and/or after -rehabilitation value must not exceed 95% of the applicable HOME Homeownership Value Limits, unless HUD -approved local limits are adopted.
• In the case of acquisition of newly constructed housing or standard housing, the housing has a purchase price for the type of single family housing that does not exceed 95 percent of the median purchase price for the area, as described in paragraph (a)(2)( iii) of this section.
• In the case of acquisition with rehabilitation, the housing has an estimated value after rehabilitation that does not exceed 95 percent of the median purchase price for the area, described in paragraph (a)(2)(iii) of this section.
• If a participating jurisdiction intends to use HOME funds for homebuyer assistance or for the rehabilitation of owner -occupied single family properties, the participating jurisdiction must use the HOME affordable homeownership limits provided by HUD for newly constructed housing and for existing housing.
a. HUD will provide limits for affordable newly constructed housing based on 95 percent of the median purchase price for the area using Federal Housing Administration (FHA) single family mortgage program data for newly constructed housing, with a minimum limit based on 95 percent of the U.S. median purchase price for new construction for nonmetropolitan areas.
b. HUD will provide limits for affordable existing housing based on 95 percent of the median area purchase price for the area using FHA single family mortgage program data for existing housing and other appropriate data that are available Nation-wide for purchase of existing housing, with a minimum limit based on 95 percent of the State-wide nonmetropolitan area median area purchase price using this data. 236
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• In lieu of the limits provided by HUD, the participating jurisdiction may determine 95 percent of the median area purchase price for single family housing in the jurisdiction annually, as follows:
a. The participating jurisdiction must set forth the limits for single family housing of one, two, three, and four units, for the jurisdiction. The participating jurisdiction may determine separate limits for existing housing and newly constructed housing. b. For the limits on housing located outside of metropolitan areas, a State may aggregate sales data from more than one county if the counties are contiguous and similarly situated.
c. The participating jurisdiction must include the following information in the annual action plan of the Consolidated Plan submitted to HUD for review and must update the information in each action plan.
i. The 95 percent of median area purchase price must be established in accordance with a market analysis that ensured that a sufficient number of recent housing sales are included in the survey;
ii. Sales must cover the requisite number of months based on volume: For 500 or more sales per month, a 1 -month reporting period; for 250 through 499 sales per month, a 2-month reporting period; for less than 250 sales per month, at least a 3 -month reporting period. The data must be listed in ascending order of purchase price;
iii. The address of the listed properties must include the location within the participating jurisdiction. Lot, square, and subdivision data may be substituted for the street address;
iv. The housing sales data must reflect all, or nearly all, of the single family housing sales in the entire participating jurisdiction; and. v. To determine the median area purchase price, a participating jurisdiction must take the middle sale on the list if an odd number of sales, and if an even number, take the higher of the middle numbers and consider it the median.
After identifying the median area purchase price, the amount should be multiplied by 0.95 to determine the 95 percent of the median area purchase price.
D. HOMEBUYER COUNSELING REQUIREMENTS
All HOME -assisted homebuyers must complete housing counseling prior to receiving HOME assistance, in accordance with 24 CFR 92.254(a)(3) and 24 CFR Part 214. Counseling must be 237
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provided by a HUD- approved housing counseling agency and delivered by a HUD- certified housing counselor.
Counseling method can be completed in- person, phone, or internet. Documentation of counseling completion must be maintained in the project file.
E. UNDERWRITING AND SUBSIDY LAYERING
The City will underwrite each HOME -assisted homebuyer to ensure the purchase is affordable and the HOME subsidy is no more than necessary, consistent with HUD Notice CPD 15 -11 and City underwriting procedures under Section 4 .
Underwriting must address, at minimum:
• Housing and total debt obligations;
• Household income, assets, and recurring expenses;
• Reasonableness of first mortgage terms and prevention of predatory lending features; • Appropriateness of HOME assistance amount and form; and • The homebuyer’s ability to sustain homeownership over time.
Homebuyer Underwriting Standards
The City will evaluate affordability using both front-end and back-end debt-to-income ratios:
• Front-end ratio: total monthly housing costs (PITI) as a percentage of gross monthly household income.
• Back-end ratio: total monthly debt obligations (including PITI and all recurring debt) as a percentage of gross monthly household income.
The City shall establish front-end and back-end ratio standards in its underwriting guidelines and apply them consistently. Any exceptions must be documented and approved in accordance with City policy.
Responsible Lending and Predatory Lending Prevention
The City will review first mortgage loan terms to ensure they are reasonable and do not include predatory or high -risk features that could jeopardize long -term affordability. Prohibited loan features include, but are not limited to:
• Adjustable-rate mortgages with payment shock;
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• Balloon payments;
• Negative amortization; and
• Excessive or unreasonable fees.
HOME assistance shall not be provided in conjunction with loan products that undermine housing stability or long-term affordability.
F. MAXIMUM HOME INVESTMENT
HOME assistance will not exceed the HOME maximum per -unit subsidy limits applicable to the City’s jurisdiction and must meet HOME requirements for cost reasonableness, subsidy layering, and eligible cost allocation.
G. AFFORDABILITY PERIODS
HOME-assisted homebuyer units are subject to affordability periods established at 24 CFR
92.254(a)(4), based on the amount of HOME direct subsidy provided to the homebuyer. The affordability period begins when the homebuyer takes title to the assisted unit.
H. RESALE AND RECAPTURE REQUIREMENTS
The City will impose either resale or recapture requirements for each HOME-assisted homebuyer unit, in accordance with 24 CFR 92.254(a)(5) and Chapter 3 of this manual. • The City will select the applicable method prior to providing assistance. • The selected method will be clearly stated in the written agreement and secured through recorded legal instruments.
I. WRITTEN AGREEMENTS AND LEGAL INSTRUMENTS
All HOME homebuyer assistance must be governed by a written agreement executed prior to assistance and must include:
• Amount and form of HOME assistance;
• Affordability period;
• Resale or recapture provisions;
• Principal residence requirements;
• Refinancing and subordination policies, if applicable; and 239
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• Default and enforcement remedies.
Recorded instruments may include a deed restriction, covenant, Deed of Trust, or other enforceable mechanism consistent with City policy and the selected resale or recapture method.
Refinancing and Subordination Policy
The City may consider subordination of its HOME loan to a refinanced first mortgage when the refinancing:
• Has reasonable terms;
• Provides a tangible benefit to the homebuyer; and
• Preserves long-term affordability and protects the HOME investment.
Cash-out refinancing is prohibited, except when proceeds are used solely for City -approved property maintenance or improvements.
J. MONITORING AND ENFORCEMENT
The City will monitor compliance throughout the affordability period, including:
• Verification of owner occupancy;
• Review of title transfers, refinancing requests, and subordination requests; and • Enforcement of resale or recapture provisions when required.
Noncompliance may result in repayment obligations, legal enforcement, or other remedies permitted by the written agreement and applicable regulations.
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CHAPTER 9: TENANT-BASED RENTAL ASSISTANCE (TBRA) POLCIES [RESERVED] The City of Lynwood does not currently operate a HOME-funded Tenant-Based Rental Assistance (TBRA) Program. This chapter is reserved for future use, should the City elect to implement such a program. Any future TBRA activities will comply with the requirements outlined in 24 CFR Part
92.209, including eligibility, rent reasonableness, unit inspections, lease requirements, and program administration.
1. Eligibility & Selection
a. TBRA assistance will be limited to low -income households with incomes at or below 80% of Area Median Income (AMI), as published annually by HUD. b. Priority populations may be established through the City’s Consolidated Plan and may include:
• Homeless individuals and families
• Victims of domestic violence
• Persons with disabilities
c. Eligibility will be determined through a formal application and verification process.
2. Eligible Uses of Assistance
a. TBRA may be used to assist with any combination of the following costs:
• Monthly rent
• Security deposits
• Utility deposits (only when provided in conjunction with rental or security deposit assistance)
b. TBRA may be used as a short - to medium -term bridge until a household secures permanent housing or transitions to other long-term rental subsidy programs.
3. Rent Calculations & NSPIRE Standards
a. Tenant payments will be calculated based on Fair Market Rents (FMRs) and adjusted by household income, in accordance with HUD guidance.
b. Assisted units must meet rent reasonableness criteria and undergo a NSPIRE Standards inspection prior to occupancy.
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c. Ongoing inspections will be conducted in accordance with program requirements or in response to complaints.
4. Lease & Program Requirements
a. A minimum one-year written lease is required.
b. Leases must comply with HOME regulations under 24 CFR Part 92.253, including the prohibition of specific unfavorable lease terms.
c. The City will ensure tenants are provided with reasonable notice and protection as required by federal law.
5. Recertification Process
a. Participants will undergo annual recertification to verify continued income eligibility and household composition.
b. Changes in income, family size, or housing circumstances may require an interim adjustment of the TBRA amount.
c. Households that no longer meet eligibility requirements will be transitioned out in accordance with program procedures.
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CHAPTER 10: PROPERTY STANDARDS & LONG TERM COMPLIANCE
A. WRITTEN PROPERTY STANDARDS
To ensure all housing developed, rehabilitated, or acquired with HOME Program funds is safe, decent, and sustainable, the City of Lynwood has adopted written Property Standards in accordance with 24 CFR Part 92.251. These standards establish minimum requirements for design, construction quality, materials, and ongoing property condition. They apply to all HOME- assisted projects and are organized by activ ity type, including new construction, rehabilitation, manufactured housing, and acquisition of standard housing. • This manual shall be reviewed annually and updated as necessary to ensure alignment with current federal regulations, California Building Code updates, and changes in City of Lynwood policies.
• All contractors, developers, and sub recipients of HOME funds are required to adhere to the most recent version of the Property Standards in effect at the time of project commitment.
• All construction activities funded under the HOME Program must be governed by clear and comprehensive written documentation, including a defined scope of work, itemized cost estimates, and a formal, legally binding construction contract. These documents are essential to ensure consistency, quality control, and compliance with all applicable requirements.
• In accordance with 24 CFR 92.251(a)(3)(iv), the City of Lynwood will review and approve all written cost estimates, construction contracts, and construction documents. These materials must describe the work to be undertaken in adequate detail to allow inspections to be conducted and to verify that costs are reasonable.
NSPIRE Compliance:
In alignment with HUD regulations, the City of Lynwood requires that all HOME -assisted units comply with the National Standards for the Physical Inspection of Real Estate ( “NSPIRE”), as outlined in 24 CFR Part 5, subpart G. NSPIRE replaces previous Housing Quality Standards (“HQS”) and introduces a unified, health- and safety-focused framework for physical inspections. These standards ensure that all housing units are structurally sound, hazard-free, and provide safe and functional systems for occupants. NSPIRE standards must be me t at the time of acquisition and maintained throughout the affordability period. The City will implement NSPIRE inspections by the HUD-mandated deadline of October 1, 2025, and encourage early compliance where feasible.
Property owners and developers are responsible for ensuring that units remain in compliance with NSPIRE throughout the duration of their HOME affordability period.
FIGURE 6-1: PROPERTY STANDARDS
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City of Lynwood Building Code Regulations:
Important Notice Regarding the 2025 California Code of Regulations, Title 24. If you are a City of Lynwood property owner or an architect, engineer, designer, or contractor that performs work within the City, please be advised that the City will be enforcing the following Building Standards, effective January 1, 2026:
• 2025 California Administrative Code (Part 1),
• 2025 California Building Code (Part 2 Volume I and II), • 2025 California Residential Code (Part 2.5),
• 2025 California Electrical Code (Part 3),
• 2025 California Mechanical Code (Part 4),
• 2025 California Plumbing Code (Part 5),
• 2025 California Energy Code (Part 6),
• 2025 California Historical Building Code (Part 8),
• 2025 California Existing Building Code (Part 10),
• 2025 California Green Building Standards Code (Part 11), • 2025 California Referenced Standards Code (Part 12), also • 2024 Uniform Solar, Hydronics and Geothermal Code (IAPMO) and, • 2024 Uniform Swimming Pool, Spa and Hot Tub Code (IAPMO).
All new plan review applications submitted after December 31, 2025 will be required to comply with the above referenced code editions.
Building codes are available for purchase from the International Code Council.
Swimming Pool and Solar Codes are available for purchase from the International Association of Plumbing and Mechanical Officials.
Training classes are available through the following organizations:
• ICC (International Code Council)
• CALBO (California Building Officials)
• Local ICC Los Angeles Basin Chapter
• IAPMO (International Association of Plumbing and Mechanical Officials) o IAEI (International Association of Electrical Inspectors) Building Standards Currently Enforced:
• 2025 California Administrative Code,
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• 2025 California Building Code,
• 2025 California Residential Code,
• 2025 California Electrical Code,
• 2025 California Mechanical Code,
• 2025 California Plumbing Code,
• 2025 California Existing Building Code,
• 2025 California Historical Building Code,
• 2025 California Green Building Standards Code,
• 2025 California Energy Code,
• 2025 California Referenced Standards Code, and
• 2025 California Building Standards Code.
• 2025 California Fire Code.
• 2024 Uniform Swimming Pool, Spa and Hot Tub Code.
• 2024 Uniform Solar, Hydronics and Geothermal Code.
Links to the following applicable documents are provided:
• City of Lynwood Municipal Code, Chapter 11 – Building and Housing City of Lynwood Municipal Code Chapter 11
• 2025 California Green Building Standards Code
www.bsc.ca.gov/Home/CALGreen.aspx
I. Property standards for all HOME funded projects and programs regardless of the activity type:
1. NSPIRE Physical Condition Standards
A. All HOME-assisted housing units must comply with HUD’s NSPIRE, as codified in 24 CFR Part 5, subpart G. NSPIRE standards apply to new construction, rehabilitation, acquisition, and ongoing compliance throughout the affordability period. Properties must demonstrate:
• Safe and functional major systems (electrical, HVAC, plumbing) • Structural soundness and weather resistance
• Sanitary, hazard-free living environments
• Adequate lighting, ventilation, and egress
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• All required inspections must be performed using NSPIRE protocols by qualified personnel, with documentation retained in the project file.
2. Building Codes and Local Regulations
A. All housing units must meet or exceed the State and Local building codes including the California Building Code (“CBC”) and the California Residential Code (“CRC”).
B. Projects must comply with 24 CFR Part 92.251(a)(1), which requires adherence to state/local building codes or, in their absence, the International Existing Building Code (“IEBC”) for rehabilitation and the International Residential Vode ( “IRC” ) for new
construction projects.
C. Projects must comply with the City of Lynwood zoning codes, building codes, health and safety codes.
D. Projects must obtain all required building permits and pass final inspections.
3. Lead-Based Paint
A. All housing units involving structures built before 1978 must comply with HUD's Lead Safe Housing Rule at 24 CFR Part 35 including:
• Lead hazard evaluation (risk assessment or paint inspection). • Appropriate hazard reduction measures.
• Occupant protection during abatement, if applicable.
• Clearance examinations post-abatement, if applicable.
4. Accessibility
A. Projects must meet accessibility standards under:
• Section 504 of the Rehabilitation Act (24 CFR Part 8) where applicable. • Americans with Disabilities Act (Titles II and III)
• Fair Housing Act design standards (24 CFR Part 100.205), for buildings with 4+ units. • California Building Code
B. At least one unit or 5% (whichever is greater) must meet full accessibility standards when applicable.
5. Energy Efficiency
A. Projects must meet HUD- established energy efficiency standards in accordance with Section 109 of the Cranston-Gonzalez National Affordable Housing Act.
B. All rehabilitated and newly constructed units must meet or exceed:
• California Title 24 Energy Code
• Energy Star-rated appliances and systems
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• LED lighting throughout
• Low-flow Water Sense-certified plumbing fixtures
C. All new windows, appliances, HVAC systems, and lighting must meet or exceed current energy performance standards.
D. Homes exceeding per-unit subsidy caps must meet a green building standard approved by HUD (e.g., ENERGY STAR Certified New Homes, Enterprise Green Communities).
6. Carbon Monoxide and Smoke Detectors
A. All HOME -assisted housing units must include carbon monoxide ( “CO”) alarms that meet or exceed HUD standards for occupant safety.
B. Alarms must be installed:
• Outside each separate sleeping area, in the immediate vicinity of bedrooms. • On both sides of any door separating living areas from sleeping areas • On each level of the dwelling unit, including basements. • Within 21 feet of bedroom doors
• Units with fuel -burning appliances or attached garages must have CO detection devices.
C. Acceptable devices include hardwired, battery -operated, or plug -in with battery backup.
D. Must include features for hearing-impaired individuals.
7. Disaster Mitigation
A. Structures must meet standards to resist seismic, flood, and wind hazards as defined in local hazard mitigation plans and FEMA guidance.
B. All work must comply with current seismic retrofitting standards, particularly for older homes and multifamily dwellings.
C. Construction must include features that mitigate natural disaster impacts in accordance with applicable codes.
• Seismic: Anchor bolts, seismic strapping for water heaters, and cripple wall bracing per CBC.
• Flooding: Use flood-resistant materials below BFE; elevate mechanical/electrical systems.
• Fire Safety: Hardwired smoke and CO detectors, Class A roofing materials, defensible space in wildfire-prone zones.
• Wind: Roof-to-wall anchorage and window bracing per wind zone requirements. 247
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II. Property standards applicable to new construction projects Note: The new construction property standards also apply to any property that was newly constructed less than 12 months before commitment of HOME funds to the project. If a project does not include rehabilitation, then the property must meet all the new co nstruction standards before it can be acquired.
1. Minimum Construction and Material Specifications
A. All materials and methods must comply with CBC, IRC, and HUD’s Model Energy Codde, and shall meet the following minimum standards:
• Electrical:
o AFCI/GFCI protection where required;
o 200-amp service minimum (100-amp for SFR if 200-amp is not feasible); o Smart panel readiness;
o Minimum 15-year life expectancy.
• Plumbing:
o Copper or PEX piping;
o Low-flow fixtures, WaterSense-rated fixtures;
o Minimum 20-year life expectancy.
• Roofing:
o Class A-rated roofing;
o Composition asphalt shingles or equivalent;
o All roof penetrations must be properly flashed; drip edge required; o Minimum 30-year life expectancy.
• HVAC:
o High-efficiency systems;
o Meets of exceeds SEER rating as per current Title 24; o ENERGY STAR certified;
o Minimum 20-year life expectancy.
• Water Heater:
o Minimum 30 gallon capacity;
o Seismic strapping required;
o ENERGY STAR certified;
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o Minimum 15-year life expectancy.
• Windows:
o Dual-pane/Double Glazed;
o Vinyl or composite frames, Low-E glass;
o ENERGY STAR rated;
o Minimum 20-year life expectancy.
• Insulation:
o Attic: R-38 minimum;
o Walls: R-13 (2x4) or R-19 (2x6);
o Floor Over Crawlspace: R-19;
o All penetrations sealed with spray foam or caulking;
o Sealing: Spray foam or caulking around all penetrations and joints; o Meets or exceeds local code and Title 24 standards;
o Minimum 15-year life expectancy.
• Interior Finishes:
o Non-toxic Low-VOC paints and finishes;
o Drywall: ½" gypsum board, finished to Level 4 minimum; o Interior doors: Hollow or solid core; minimum 1-3/8" thickness; o Flooring:
Common Areas: Vinyl plank, ceramic tile, or laminate
Bedrooms: Carpet (optional), minimum 30 oz
No carpet in kitchens, bathrooms, or laundry rooms
o Minimum 10-year life expectancy.
• Kitchen/Bath Fixtures:
o WaterSense/energy-efficient models;
o Cabinetry: Plywood or MDF with factory-finished, water-resistant surfaces; o Countertops: Solid surface, high-pressure laminate, or quartz (granite optional);
o Kitchen must have at least a single or double bowl kitchen sink; o Permanently installed oven and stove (or range), refrigerator, and garbage disposal;
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o Accessible design incorporated where required.
o Minimum 15-year life expectancy.
• Exterior Finishes & Cladding:
o Stucco: Minimum 3-coat system over building paper and lath; o Fiber cement siding: Minimum 5/16" thickness;
o Engineered wood siding with weather-resistant barrier (e.g., Tyvek or equivalent) required;
o All window and door openings must be fully flashed;
o Doors:
Insulated steel or fiberglass
Solid core with deadbolt
Minimum R-7 thermal resistance
Weather-stripped, sealed, and ENERGY STAR-rated
o Durable, low-maintenance materials;
o Minimum 15-year life expectancy.
• Foundation and Structural:
o Concrete or engineered slab/pier foundation;
o Framing Lumber: Minimum #2 grade or better;
o Pressure-treated wood required where in contact with concrete or moisture; o All structural elements must meet soil and seismic design requirements per CBC.
• Site Requirements:
o Positive grading away from building to prevent water intrusion; o ADA-accessible pathways,
o Drought-tolerant landscaping,
o Irrigation: Drip systems with smart timers;
o Driveways/walkways constructed of concrete or permeable pavers. • Accessibility:
o Must comply with all applicable accessibility codes;
o At least one unit and all common areas must be visitable; o At least one accessible ground-level entrance;
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o Incorporate visitable and adaptable features per Section 504 when required. • Broadband Infrastructure:
o Must include broadband infrastructure per 24 CFR Part 92.251(b)(1)(i) and the definition of broadband in 24 CFR Part 5.100:
High-speed internet capability via cable, fiber optics, DSL, or wireless o Required for new construction multifamily rental buildings with 4+ units unless:
Installation is infeasible due to site conditions or technical limitations Costs impose an undue financial burden or fundamentally alter the program
o Any exemption must be documented in the project file in accordance with 24 CFR Part 92.508(a)(3)(iv)
• Green Building Standards:
o Must meet at least one recognized green building standard. Acceptable certified include:
ENERGY STAR Certified Homes
Enterprise Green Communities
LEED (Silver or higher)
National Green Building Standard (NGBS)
GreenPoint Rated
o If HOME per-unit subsidy limit is exceeded, green certification is mandatory. o Developer must provide documentation of compliance at project closeout. o All materials and systems used must reflect sustainable design and energy efficiency.
III. Property standards for rehabilitation projects
Note: Post-rehab condition must meet NSPIRE even when systems are upgraded. For example:
• Functional ventilation (bathroom/kitchen exhausts)
• Elimination of trip hazards, infestations, mold, inoperable fixtures • Emergency egress from sleeping rooms
1. Minimum Construction and Material Specifications
A. All materials and methods must comply with CBC, IRC, and HUD’s Model Energy Code, and shall meet the following minimum standards: All rehabilitation work must bring 251
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components to a standard equivalent to new construction, where feasible. Any deteriorated or hazardous systems must be replaced:
• Electrical:
o Upgrade panels, wiring, and grounding as needed for code compliance; o AFCI/GFCI protection where required;
o 200-amp service minimum (100-amp for SFR if 200-amp is infeasible); o Smart panel readiness;
o Minimum 15-year life expectancy.
• Plumbing:
o Replace non-code compliant pipes;
o Copper or PEX piping;
o Install WaterSense-rated, low-flow fixtures;
o Minimum 20-year life expectancy.
• Roofing:
o Replace if past useful life or compromised;
o Class A-rated;
o Composition asphalt shingles or equivalent;
o All penetrations must be properly flashed; drip edge required; o Minimum 30-year life expectancy.
• HVAC:
o Replace non-functioning or inefficient units; ensure sealed ductwork; o High-efficiency units, ENERGY STAR certified;
o Minimum SEER rating per current Title 24;
o Minimum 20-year life expectancy.
• Water Heater:
o Replace non-functioning or inefficient units;
o Minimum 30-gallon capacity;
o Seismic strapping required;
o Minimum 15-year life expectancy.
• Windows:
o Replace single-pane or damaged units;
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o Dual-pane/Double Glazed;
o Vinyl or composite frames, Low-E glass;
o ENERGY STAR rated;
o Minimum 20-year life expectancy.
• Insulation:
o Attic: R-38 minimum;
o Walls: R-13 (2x4) or R-19 (2x6);
o Floor Over Crawlspace: R-19;
o Seal all penetrations with spray foam or caulking;
o Minimum 15-year life expectancy.
• Interior Finishes:
o Replace unsafe or deteriorated surfaces; ensure cleanable finishes; o Drywall: ½" gypsum board, level 4 finish;
o Paints: Non-toxic, Low-VOC;
o Doors: Hollow or solid core; minimum 1-3/8" thickness; o Flooring:
Common Areas: Vinyl plank, ceramic tile, or laminate
Bedrooms: Carpet (optional), 30 oz minimum
No carpet allowed in kitchens, bathrooms, or laundry rooms o Slip-resistant flooring in wet areas required;
o Minimum 10-year life expectancy.
• Kitchen/Bath Fixtures:
o Replace non-functional or inefficient units;
o WaterSense and energy-efficient appliances;
o Cabinetry: Plywood or MDF with factory-finish water-resistant surfaces; o Countertops: Solid surface, high-pressure laminate, or quartz (granite optional);
o Appliances: Oven and stove (or range), refrigerator, and garbage disposals; o Must have at minimum a single or double bowl kitchen sink; o Accessible design where required;
o Minimum 15-year life expectancy.
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• Exterior Finishes/Cladding:
o Repair/replace damaged siding, stucco, or paint;
o Stucco: 3-coat system minimum;
o Fiber cement: 5/16" thickness minimum;
o Engineered wood siding with weather-resistant barrier (e.g., Tyvek or equivalent);
o Windows and doors fully flashed;
o Doors: Replace rotted or insecure doors; meet egress and energy standards. Insulated steel or fiberglass; R-7 minimum;
Solid core with deadbolt
ENERGY STAR rated
o Minimum 15-year life expectancy.
• Foundation/Structural:
o Repair water damage, cracks, or stability issues;
o Concrete or engineered slab/pier foundation;
o Framing Lumber: No. 2 grade or better; all structural wood must be pressure- treated where in contact with concrete or exposed to moisture; o Must meet CBC Chapter 18 standards.
• Site Requirements (if applicable):
o Ensure safe and accessible walkways;
o Address hazardous grading and drainage.
• Special Accessibility Features (if applicable):
o Install as required by funding scope;
o 32” clear door openings;
o Lever-style door handles;
o Reinforced walls in bathrooms for grab bars.
• Broadband Infrastructure (if applicable):
o Install in compliance with 24CFR Part 92.251 (b)(1) when triggered by substantial rehabilitation
• Green Building Standards (if applicable):
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o Use low-VOC paints, energy-efficient lighting/appliances, and sustainable materials where feasible.
IV. Property Standards for Manufactured Housing
1. General Requirements
A. All manufactured housing units funded under the HOME Program must meet the following baseline standards:
• Must be installed on a permanent foundation system engineered to withstand Lynwood’s seismic and soil conditions.
• Must comply with HUD Manufactured Home Construction and Safety Standards (24 CFR Part 3280).
• Foundations must meet the requirements of the HUD Permanent Foundations Guide for Manufactured Housing (“PFGMH”)
o Foundation system must include:
Reinforced concrete footings and piers
Load-bearing perimeter walls or approved skirting systems Full frost-depth footings (where applicable)
Adequate anchoring and moisture protection
o Anchoring systems must:
Comply with the CBC, FEMA 85, and the manufacturer’s requirements Be designed to resist uplift and lateral movement
Include steel strapping, diagonal bracing, or other HUD -approved reinforcement methods
Be inspected and certified upon completion
Include a foundation/anchoring compliance report
B. Must include permanent utility connections (electric, water, sewer, gas). • All manufactured units must include the following permanent utility connections:
o Electrical: Code-compliant wiring with weather-resistant service panels. o Plumbing: Permanent connection to public water and sewer systems or approved alternatives.
o Gas: Flexible connectors with seismic shut-off valves, and backflow prevention. • The underside of the home must be:
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o Skirted or fully enclosed using durable, weather -resistant materials to prevent water intrusion and pest infestation
• Utility tie-ins must include:
o Accessible shut-off valves
o Backflow prevention devices on potable water systems. o Seismic shut-off valves for gas lines.
• All units must be suitable for year-round occupancy, and comply with state standards for:
o Thermal Protection
o Moisture control
o Fire safety, wind resistance and egress
C. Installer Certification:
• All manufactured homes must be installed by contractors certified under the HUD Manufactured Home Installation Program.
• Documentation of installer certification must be maintained in the project file for HUD monitoring.
D. Building Code Compliance
• All manufactured housing units must comply with:
o California Building Code
o Local municipal code requirements for structural safety, seismic resistance, wind loads and fire safety.
2. Rehabilitation Requirements for Manufactured Housing A. All manufactured housing rehabilitation projects funded under the HOME Program must bring the unit into compliance with:
• HUD Manufactured Home Construction and Safety Standards (24 CFR Part 3280). • California Health and Safety Code for manufactured homes. • Local housing and safety codes applicable to mobile/manufactured units. • Rehabilitation must include repair or replacement of all deteriorated or unsafe systems and components.
3. Minimum Construction and Material Specifications
A. Manufactured housing units undergoing rehabilitation with HOME funds must meet the following minimum property standards:
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• Electrical:
o Upgrade panels and wiring to current code if outdated. o Ensure all outlets are GFCI/AFCI protected where required. o Replace or repair fixtures and connections as needed. • Plumbing:
o Replace leaking or outdated pipes with code-compliant materials (PEX, copper).
o Install low-flow, WaterSense-rated fixtures.
o Confirm functional water heater with seismic strapping. • Roofing:
o Repair or replace roofing systems that are deteriorated or past useful life. o Minimum 20-year life expectancy; all penetrations properly sealed. • HVAC:
o Replace inefficient or non-functional units.
o ENERGY STAR-rated equipment required where replacement occurs. o Ductwork must be sealed and insulated per Title 24.
• Windows & Doors:
o Replace damaged or single-pane windows with dual-pane, ENERGY STAR-rated units.
o Ensure exterior doors are weather-sealed and secure.
• Insulation & Sealing:
o Improve thermal envelope where feasible (floor, wall, ceiling). o Use spray foam or caulking to seal all penetrations.
• Interior Finishes:
o Repair or replace deteriorated flooring, wall coverings, ceilings. o Use durable, low-VOC, cleanable finishes.
• Kitchen & Bathroom Fixtures:
o Replace broken or inefficient fixtures.
o Ensure functionality of sinks, showers/tubs, toilets, cabinets. • Foundation & Anchoring:
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o Verify and upgrade foundation and anchoring systems to current standards (per HUD PFGMH and CBC).
o Any deficiencies must be corrected and certified.
• Undercarriage & Skirting:
o Skirting must be repaired or replaced with moisture- and pest-resistant materials.
o Underside must be enclosed and insulated as needed.
• Health & Safety
o All units must be free from:
Mold, water damage, or structural hazards.
Infestations (rodents, termites, insects).
o Install or verify:
Smoke detectors in sleeping areas.
Carbon monoxide detectors near fuel-burning appliances. Fire extinguishers and adequate egress.
• Utility Systems
o All rehabilitated units must have:
Code-compliant utility connections (electric, gas, water, sewer). Accessible shut-off valves and backflow prevention devices. Upgraded systems as needed for safe, permanent occupancy. • Accessibility (If Applicable)
o Projects receiving HOME funds must incorporate accessible or visitable features where required by:
Section 504 of the Rehabilitation Act.
Fair Housing Act (for multi-unit contexts).
Local accessibility codes.
V. Property Standards for Acquisition of Standard Housing
1. General Requirements
A. Housing units acquired using HOME funds must, at the time of purchase, meet all applicable local and state building codes and the following minimum standards to qualify as “standard housing”:
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• NSPIRE
o Units must meet or exceed HUD’s NSPIRE standards as established under 24 CFR Part 5, subpart G and related guidance, including but not limited to:
Structural integrity and soundness
Safe and functional heating, plumbing, and electrical systems Sanitary, safe, and hazard-free interior and exterior environments Secure, weather-tight, and operable windows and doors Fully functional and safe kitchens and bathrooms
• Lead-Based Paint Compliance
o All units built before 1978 must comply with 24 CFR Part 35 (Lead Safe Housing Rule), including:
Risk assessment or paint inspection prior to acquisition. Interim controls or abatement of lead-based paint hazards, if identified. Occupant protection and clearance testing.
Documentation retained in the project file.
• Smoke and Carbon Monoxide Detection
o All units must include:
Hardwired or sealed 10-year battery smoke detectors in each sleeping room and hallway outside bedrooms.
Carbon monoxide detectors outside sleeping areas and near any fuel- burning appliances or attached garages.
Installation must comply with California Health and Safety Code §§13113.7 and 17926.
2. City of Lynwood-Specific Safety Requirements
A. All acquired housing must meet additional City of Lynwood safety and mitigation standards to ensure long-term resilience and code compliance:
• Seismic Safety
o Cripple wall bracing must be present in homes with raised foundations. o Water heaters must have dual seismic strapping, per CBC requirements. o Foundation anchoring must be confirmed through inspection if not visible. • Fire Safety
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o Hardwired smoke and CO detectors are required in all new acquisitions, regardless of previous standards.
o Where applicable (especially in hillside or high-fire zones), defensible space landscaping must be established to reduce wildfire risk. • Flood Mitigation
o For homes located in a FEMA-designated flood zone, the following must be verified:
Use of flood-resistant materials for all below-base flood elevation (BFE) systems or enclosures.
Mechanical, electrical, and HVAC systems must be elevated or flood protected as required.
Flood zone status must be confirmed and documented using FIRM maps and/or Elevation Certificates.
3. Documentation and Verification
A. All compliance items must be verified prior to acquisition and included in the project file. Required documentation includes:
• Inspection reports confirming housing standards and code compliance. • Lead-based paint assessment and clearance (if applicable). • Photos and/or certifications showing seismic and fire safety features. • Flood zone verification and mitigation documentation, if required. • Any permits or correction notices must be closed and documented prior to closing.
B. PROPERTY STANDARDS COMPLIANCE PROCEDURES
• Physical inspections of HOME-assisted units and common areas are conducted every one (1) to three (3) years, depending on project size and risk level. • Additional inspections may be scheduled based on:
a. Risk indicators such as prior findings, tenant complaints, or financial concerns b. Drive-by observations or issues identified during desk reviews • Inspections follow HUD NSPIRE standards using the NSPIRE Checklist ( Appendix G) as a guide, and must include:
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a. A statistically reasonable sample of HOME -assisted units, consistent with HUD inspection protocols
b. At least one unit per building for multi-building projects, including common areas and building systems
c. A review of any accessible units to verify compliance with applicable accessibility requirements, including the Uniform Federal Accessibility Standards ( “UFAS”) and/or Section 504 of the Rehabilitation Act, where applicable Note: As of October 1, 2024, the City conducts all HOME property inspections in accordance with HUD’s NSPIRE standards, per CPD Notice 25-01.
Property Inspections
The City of Lynwood will ensure that all HOME -assisted properties meet and are maintained to applicable NSPIRE standards, including lead -based paint requirements, during the affordability period. Inspections serve to:
a. Verify compliance with local codes and HOME Program property standards. b. Detect and enforce remediation of deficiencies.
c. Safeguard long-term habitability, accessibility, and affordability.
FIGURE 6-2: REQUIRED PROVISIONS PER PARTNER TYPE
Property Size Required Inspection Frequency
1 – 4 Units Every 3 Years
5 – 25 Units Every 2 Years
26 + Units Annually
Inspection Process
1. Pre-Rehabilitation Inspection
a. Conducted prior to the start of any HOME-funded rehabilitation. The inspection assesses the scope of work required to meet minimum property standards and identifies:
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i. Code violations
ii. Lead-based paint hazards
iii. Health/safety issues
iv. Accessibility improvements under UFAS
2. Progress Inspections
a. Inspections will be conducted on the following project milestones:
i. Pre-construction: Verifies readiness and contractor compliance. ii. During construction: Ensures work follows approved scope, quality, and applicable codes.
iii. Final inspection: Confirms project completion, property standards compliance, and readiness for occupancy.
Ongoing Property Monitoring and Enhanced Oversight
The City of Lynwood will apply a risk- based approach to identify properties requiring more frequent or intensive oversight. Risk indicators include:
a. Inexperienced ownership or management
b. Limited operating or replacement reserves
c. Properties with previous compliance deficiencies
d. High-risk neighborhoods or projects with layered funding e. Concerns raised during financial review or staff observations Annual Monitoring Plan will:
a. Identify all HOME-assisted properties and assign inspection and file review frequencies. b. Specify properties selected for on-site monitoring and file review. c. Include additional monitoring based on internal risk assessments Unit Sampling Protocol
During inspections:
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• For properties with 20 or fewer units: Inspect 15 to 20 percent of HOME-assisted units • For properties with more than 20 units: Inspect 10 to 15 percent of HOME-assisted units • For multi-building properties: Inspect at least one unit per building • In all cases, inspect a minimum of 3 to 5 units to ensure meaningful review If deficiencies are found:
a. The City will expand inspections to all HOME-assisted units b. Owners must submit a corrective action plan with defined timelines as established in agreements
c. Follow-up inspections will be conducted to confirm resolution Physical Maintenance Review
As part of the inspection process, Staff will evaluate:
a. Common areas and building systems
b. Landscaping, lighting, and ground maintenance
c. Trash removal, graffiti, and signs of neglect or visible deterioration d. Structural integrity of buildings
Issues identified will be documented and may prompt additional monitoring.
Drive-By Inspections
Program Staff may conduct drive -by inspections between scheduled visits to identify concerns such as:
a. Trash or litter accumulation
b. Overgrown or unmaintained landscaping
c. Graffiti or vandalism
d. Structural damage or disrepair
e. Broken or inadequate exterior lighting or signage
Any observed issues may result in follow-up contact or full inspection. 263
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Accessibility Compliance
Properties with accessible units must maintain compliance with the UFAS throughout the affordability period.
Owners are required to:
a. Maintain accessible features as originally designed
b. Ensure modifications do not compromise accessibility c. Comply with ADA and Section 504 standards
Inspector Qualifications
All inspectors must:
a. Be trained and certified in NSPIRE protocols
b. Receive annual continuing education on:
i. Lead-based paint compliance.
ii. Accessibility and UFAS standards
iii. HUD property standards and fair housing regulations C. DESK MONITORING AND ON-SITE REVIEWS
Consistent with HUD regulations and best practices, the City outlines the procedures for assessing project risk, conducting desk and on- site reviews, issuing monitoring reports, and ensuring compliance with program requirements, including property standards, income eligibility, rent limits, and affordability periods. It also details the Standard Operating Procedures (“SOPs”) for inspecting HOME -assisted rental units, issuing corrective actions, and maintaining documentation. These monitoring protocols are essential to ensure ongoing compliance, protect federal investments, and demonstrate effective stewardship of public funds.
Risk Assessment Framework
The objective is to evaluate the relative risk of noncompliance in HOME -funded projects and prioritize monitoring activities accordingly.
1. Risk Evaluation Factors:
a. Total amount of HOME investment
b. Number of HOME-assisted units
c. Duration of affordability period
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d. Past monitoring findings
e. Tenant complaints
f. Project age and last monitoring date
2. Risk Level Assignment:
a. Assign a risk level: Low, Moderate, or High
3. Annual Review:
a. Update risk scores annually and use them to schedule monitoring and inspections. b. Risk scores shall be led by Program Staff and/or HOME Consultants Monitoring Schedule and Strategy
The objective is to conduct systematic monitoring of HOME -assisted projects through desk reviews and on-site inspections.
1. Desk Reviews:
a. Conducted throughout the program year as reimbursement requests and quarterly status reports are submitted.
b. Analyze submitted reports, IDIS reports, draw requests, invoices, and risk factors. c. Trigger on-site monitoring for high-risk projects.
2. On-Site Monitoring:
a. Involves site visits to review documents and assess physical conditions of HOME - assisted units.
b. Conducted at construction commencement, project completion, or as warranted by risk assessment.
c. Includes entrance and exit conferences, data documentation, staff and beneficiary interviews conducted with respect for tenant confidentially.
3. Pre-Site Visit Preparation:
a. Review HOME funding application, written agreement, progress reports, draw requests, IDIS reports, correspondence, previous monitoring reports, and financial audits. b. Prepare a pre -visit Monitoring Letter ( Appendix H) outlining the visit's agenda and required documentation.
c. Utilize appropriate monitoring checklists during the site visit.
HOME Rental Program Monitoring Operating Procedures
1. Preparation:
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a. Obtain a list of HOME -assisted rental properties, including addresses, owners, managers, number of HOME-assisted units, and unit designation (Fixed/Floating). b. Review agreements for funding amounts, unit designations, affordability periods, and inspection frequencies.
c. Develop an annual monitoring and inspection schedule based on risk levels.
2. Initial Monitoring Letter:
a. Send 30 days prior to the visit.
b. Include project details, scheduled visit date and time, units to be inspected, names of Program Staff involved, and a description of the monitoring process. c. Request the Annual Rental Monitoring Report prior to the visit. d. Coordinate with property management to adjust the schedule if necessary.
3. Conducting Site Visit:
a. Use monitoring and NSPIRE checklists (Appendix G) for unit inspections. b. Ensure sufficient copies for all units being inspected. c. Document compliance and non-compliance issues, including photographs of all units. d. Maintain thorough documentation of findings.
4. Monitoring Report Letter (Appendix I):
a. Send within 30 days of the site visit.
b. Describe conclusions about areas of good performance, noncompliance, or poor performance.
c. Clearly categorize issues as:
i. Findings: Violations of federal regulations/statutes that require immediate corrective action.
ii. Concerns: Program weaknesses or potential noncompliance risks that should be addressed to prevent future issues. Concerns should be documented with actionable recommendations to mitigate potential risks. iii. Observations: Recommendations to improve performance; not violations, but worth noting for quality improvement.
d. Specify corrective actions required, deadlines, and necessary documentation. e. Cite regulatory or statutory bases for findings.
f. Identify opportunities and resources for technical assistance if appropriate.
5. Follow-Up and Close Out (Appendix I):
a. Allow 15–30 days for corrective actions as stated in the agreement. 266
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b. If responses are unsatisfactory, send follow- up letters specifying additional required actions and deadlines.
c. If issues remain unresolved, escalate to formal enforcement as per the HOME written agreement.
d. Upon satisfactory resolution, issue a closeout letter and retain all correspondence in the project file.
D. CORRECTIVE ACTIONS
The objective is to ensure compliance through prompt and documented corrective measures.
1. Documentation:
a. Record all noncompliance in a formal monitoring report. b. Specify required corrective actions, HUD regulatory citations, and response deadlines (15–30 days).
2. Follow-Up Communication:
a. Send follow-up letters if corrective actions are incomplete. b. If unresolved, initiate enforcement remedies as per the HOME written agreement. c. Issue a close out letter upon satisfactory resolution.
E. HUD REPORTING
The objective is to fulfill HUD reporting requirements in a timely and accurate manner. a. Administrative Analyst with the assistance from the HOME Program Consultant must submit the CAPER annually.
b. Update project status in IDIS.
c. Respond to HUD requests for additional reports or audits.
Monitoring Recordkeeping Requirements
The objective is to maintain comprehensive records that demonstrate compliance with HOME program requirements for five (5) years. Records must be readily available for HUD review and audit upon request.
Records to include:
a. Written agreements and deed restrictions.
b. Monitoring checklists and reports.
c. NSPIRE inspection forms.
d. Tenant income certifications and leases.
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e. Rent schedules.
f. Photographic evidence of inspections.
g. All correspondence and technical assistance documentation.
Monitoring Roles and Staff Responsibilities
This section outlines the specific roles and responsibilities of Program Staff and consultants involved in the HOME program’s monitoring and compliance activities, ensuring clear accountability and effective coordination throughout the process. • Administrative Analyst II, or designated HOME Program Consultant:
o Provides administrative oversight of the HOME monitoring process. Drafts, reviews and approves all monitoring letters and reports , schedules , and coordinates monitoring visits. Oversee corrective action follow -up and ensure timely submission of required reports. Coordinates and supervises monitoring activities.
o Conducts desk and on-site monitoring, including inspections (with assistance from the Housing Inspector). P rovides regular updates throughout the monitoring process.
• City Housing Inspector , or designated HOME Program Consultant : Conducts physical inspections of HOME -assisted rental properties, including compliance with HUD NSPIRE Standards. Documents inspection findings and support the Program Staff during site visits as needed.
F. ANNUAL MONITORING CALENDAR
The following schedule outlines the City’s planned timeline for annual HOME program monitoring activities.
• February – Issue Initial Monitoring Letters and begin scheduling site visits • March – Begin desk reviews and on-site inspections
• April – Complete site visits and issue Monitoring Reports • May – Allow for corrective actions and issue closeout letters • June – Finalize documentation before fiscal year ends on June 30 G. STAFF TRAINING PROTOCOL
The Community Development Department - Housing Division will require all staff involved in HOME monitoring to complete HUD training or equivalent sessions annually. 268
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CHAPTER 11: CROSS-CUTTING FEDERAL REQUIREMENTS
A. ENVIRONMENTAL REVIEW RECORD (“ERR”)
This section outlines the City of Lynwood’s policies and procedures for conducting environmental review records (“ERR”) in accordance with the National Environmental Policy Act ( “NEPA”) and HUD’s Environmental Review Procedures under 24 CFR Part 58, using the HUD Environmental Review Online System (“HEROS”).
The purpose of the environmental review process is to ensure that potential environmental impacts are evaluated and that appropriate measures are taken to comply with all applicable federal laws and authorities before any commitment of funds or execution of program or project agreements.
As the Responsible Entity, the City must complete and document all required environmental determinations in HEROS prior to undertaking any physical or choice-limiting actions.
Roles and Responsibilities – Environmental Review Process The following summarizes the roles and responsibilities of Program staff and consultants specific to the environmental review process under 24 CFR Part 58:
• City Manager : Serves as the Certifying Officer and is legally responsible for all environmental reviews conducted through HEROS. Reviews and signs the RROF and Environmental Certification confirming accuracy and completeness. May delegate review coordination but not the legal responsibility for compliance. • Community Development Director: Provides programmatic oversight of the HEROS-based environmental review process and may be authorized to review and route draft documents within HEROS, subject to delegation from the Certifying Officer. • Administrative Analyst: Oversees the day- to-day implementation of the HEROS process for HOME activities. Ensures all environmental reviews are initiated, completed, and stored in HEROS. Reviews staff entries and coordinates HEROS submissions for public notices, RROF, and HUD ap proval. The Administrative Analyst serves as the preparer for Environmental Reviews with assistance from the HOME Program Consultant or partner. • HOME Program Consultant : Consultants serve as partners and assists with technical documentation, checklists, and supporting materials for HEROS entries. May draft HEROS reviews for staff review and approval. Ensures all required documentation is uploaded and formatted according to HUD guidance. Consultants shall create an account via HEROS as a partner to the City of Lynwood.
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Procedures for environmental review in HEROS
Step 1. Determine Level of Environmental Review in HEROS Using HEROS, the preparer (or partner) must select the appropriate level of review for each activity:
• Exempt (24 CFR Part 58.34)
• Categorically Excluded Not Subject to 24 CFR Part 58.5 (24 CFR Part 58.35(b)) • Categorically Excluded Subject to 24 CFR Part 58.5 (24 CFR Part 58.35(a)) • Environmental Assessment (EA) (24 CFR Part 58.36)
• Environmental Impact Statement (EIS) (24 CFR Part 58.37) Step 2. Avoid Choice-Limiting Actions
Per 24 CFR Part 58.22, no choice -limiting actions (e.g., signing contracts, issuing permits, acquiring property) may occur until:
• The environmental review is completed in HEROS
• Public notice (if applicable) has been issued
• The RROF and Certification are submitted in HEROS
• HUD has issued an Authorization to Use Grant Funds (“AUGF”) Step 3. Complete the Environmental Review in HEROS
The preparer (or partner) must:
• Enter the project description and funding sources
• Complete the compliance checklist for all applicable federal laws ( 24 CFR Part 58.5 and 24 CFR Part 58.6)
• Upload required supporting documentation (maps, site photos, agency correspondence) • Identify any required mitigation and include implementation steps • Ensure the ERR in HEROS is complete and internally reviewed by the responsible entity (City Staff)
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Step 4. Public Notices (if required)
If the project requires public notification (e.g., NOI/RROF or FONSI):
• Staff must publish or post the notice and upload proof to HEROS (e.g., newspaper affidavit)
• HEROS will manage the public comment period timing and prompt for the next steps Step 5. RROF and HUD Authorization in HEROS
Once the public comment period has closed:
• The Certifying Officer signs the Certification
• The system submits the RROF and Certification to HUD via HEROS • No funds may be obligated until HUD issues an AUGF via HEROS Step 6. Mitigation Tracking
If any compliance item results in a condition or mitigation measure:
• It must be documented in HEROS under the “Mitigation” section • The Administrative Analyst is responsible for tracking and ensuring implementation during project execution
• Compliance actions must be uploaded to HEROS as part of the final ERR Environmental Review Record Maintenance (in HEROS)
The HEROS system serves as the City’s official ERR.
• Provides a centralized platform for review completion, approval, and record retention • Organizes all required documents by project
• Satisfies HUD’s requirement for ERR availability to the public and auditors • The City must retain HEROS records for a minimum of five (5) years following project closeout
Tiered Environmental Reviews in HEROS
For multi-site programs (e.g., scattered-site rehabilitation), the City may use HEROS to complete Tiered Environmental Reviews, including:
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• A broad-level review covering common environmental impacts, and • Site-specific reviews uploaded to HEROS as individual locations are identified. • HEROS tracks each site-specific review under the master Tier 1 record.
Staff Access, Training, and Quality Assurance
• All staff and consultants involved in environmental reviews must obtain HEROS accounts and complete required HUD HEROS training.
• The Administrative Analyst ensures users have active logins and access levels appropriate to their role.
• Regular internal audits will be conducted to ensure HEROS entries are complete, accurate, and meet HUD standards.
• Any updates to HUD guidance on HEROS must be adopted and incorporated into staff procedures within 30 days.
B. DAVIS-BACON ACT
The Davis-Bacon Act and related federal labor standards apply to HOME -funded projects that involve construction or rehabilitation of housing with 12 or more HOME -assisted units. These labor requirements are designed to ensure workers are paid prevailing wages as determined by the U.S. Department of Labor (“DOL”).
The City of Lynwood retains qualified labor compliance consultants to oversee and enforce all applicable Federal and State wage and labor standards for HOME -funded projects. Consultant selection may vary by project depending on the specific department, scope and requirements.
These consultants ensure compliance with both F ederal regulations and California state labor requirements, including monitoring for conformance with the following:
Federal Labor Standards Requirements:
• Davis-Bacon Act: Requires payment of federal prevailing wages and fringe benefits to all laborers and mechanics working on federally assisted construction contracts over $2,000. • Copeland “Anti -Kickback” Act: Prohibits contractors from making unauthorized deductions from workers’ wages and mandates submission of certified weekly payrolls. • Contract Work Hours and Safety Standards Act ( “CWHSSA”): Establishes standards for overtime compensation (1.5x base rate) for work exceeding 40 hours per week. • HUD Federal Labor Standards Provisions (Form HUD -4010): Must be included in all Federally funded construction contracts and subcontracts. 272
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• Required Job Site Postings: Contractors must prominently display applicable federal wage decisions and labor standards notices on the construction site.
State of California Labor Compliance Requirements:
• California Prevailing Wage Laws: Contractors must comply with wage rates and classifications established by the California Department of Industrial Relations (“DIR”). • DIR Registration: All contractors and subcontractors must be registered with the DIR to be eligible for public works contracts.
• Electronic Certified Payroll Reporting: Contractors are required to submit payroll records to the DIR using its electronic certified payroll reporting (“eCPR”) system.
City Responsibility and Monitoring Procedures:
• Prior to project commencement, the City and its labor compliance consultant will:
a. Determine if Davis-Bacon and/or state prevailing wage laws apply. b. Issue applicable wage determinations and ensure they are included in project bidding and contract documents.
c. Conduct pre-construction conferences to inform contractors of all labor standards obligations.
• During construction, the City will:
a. Require submission of weekly certified payrolls for all laborers and mechanics on site.
b. Perform periodic on-site employee interviews to verify compliance. c. Review payrolls for accuracy, wage classification, and any unauthorized deductions or violations.
• In the event of non-compliance, the City will work with the consultant to:
a. Notify contractors of violations,
b. Ensure restitution of back wages and penalties, and
c. Report serious or unresolved violations to HUD and the DOL as required.
Compliance with labor standards is a condition of funding. Failure to comply may result in suspension of payments, project delays, or legal enforcement actions. 273
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C. HUD SECTION 3 [24 CFR PART 75]
Section 3 of the Housing and Urban Development Act of 1968 (as amended by 24 CFR Part 75) ensures that economic opportunities generated by certain HUD financial assistance are directed to the greatest extent feasible to low- and very low-income persons, particularly those receiving government assistance for housing, and to Section 3 business concerns.
Applicability
• The total amount of HUD financial assistance provided to the project exceeds $200,000, and
• The project involves housing rehabilitation, housing construction, or other public construction activities that are subject to the Federal Labor Standards requirements.
The threshold applies to the aggregate amount of assistance for the project, not just to individual contracts or activities.
Compliance
To support compliance with Section 3 labor and hiring goals, the City of Lynwood, through its labor compliance consultant, implements the following oversight and monitoring procedures for all covered projects:
Labor Hour Benchmarks: Section 3 compliance is measured using total labor hours worked on a covered project:
• Section 3 Workers must perform at least 25% of the total labor hours. • Targeted Section 3 Workers must perform at least 5% of total labor hours (included within the 25%).
Definitions
• Section 3 Worker: A worker who, within the past five (5) years, is:
a. Income-qualified under HUD limits;
b. Employed by a Section 3 business concern; or
c. A YouthBuild program participant.
• Targeted Section 3 Worker: A Section 3 worker who is:
a. Employed by a Section 3 business concern;
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b. Residing within one mile (or within a service area of 5,000 people) of the project site; or
c. A YouthBuild participant.
• Section 3 Business Concern: A business that meets at least one of the following:
a. 51% or more owned and controlled by low- or very low-income individuals; b. Over 75% of labor hours over the past 3 months were performed by Section 3 workers;
c. 51% or more owned by residents of public housing or Section 8-assisted housing.
Labor Compliance Oversight and Monitoring
The City’s labor compliance staff or consultant, in coordination with contractors and subcontractors, is responsible for:
• Identifying Section 3 Obligations:
a. At pre-construction meetings, contractors will be advised of applicable Section 3 thresholds and reporting requirements.
• Collecting and Monitoring Reports:
a. Bi-weekly or monthly collection of labor hours worked by:
i. All workers;
ii. Section 3 workers; and
iii. Targeted Section 3 workers.
• Ongoing Compliance Checks:
a. Review and verify contractor-submitted reports;
b. Ensure documentation supports Section 3 status, such as:
i. Self-certifications of income;
ii. Proof of local residency;
iii. Employer certifications; and
iv. YouthBuild enrollment.
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• Final Project Analysis:
a. At project closeout, cumulative labor data will be reviewed to determine if Section 3 benchmarks (25% and 5%) were met.
• Contractor Coordination and Support:
a. Provide technical assistance, training, and document templates; b. Work with contractors to resolve data gaps or discrepancies.
Reporting and Recordkeeping Requirements
Contractors must maintain and submit documentation supporting Section 3 compliance, including:
• For Section 3 Workers:
a. Income self-certifications;
b. Employer-provided wage data;
c. Employment records linking the worker to a Section 3 business concern. • For Targeted Section 3 Workers:
a. Proof of address within the service area;
b. Documentation of YouthBuild participation;
c. Employer confirmations.
• Additional Requirements:
a. Total labor hours for the project;
b. Hours worked by Section 3 and Targeted Section 3 workers; c. Compliance summaries and any required HUD reporting.
Ongoing Compliance and Technical Assistance
The City of Lynwood is committed to promoting successful Section 3 outcomes. The labor compliance consultant will provide project -specific guidance, assist with documentation, and support contractors throughout the duration of each project to ensure full compliance with HUD regulations under 24 CFR Part 75. At the completion of construction, the consultant shall provide all final documentation to the City verifying Section 3 compliance, including summary labor hour 276
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reports, worker classifications, and supporting records to be included in the City’s official project file.
D. PROCUREMENT
This section outlines the procurement policies and procedures the City of Lynwood must follow when using HUD HOME funds to acquire contractors, consultants, goods, or services. These procedures ensure full compliance with federal procurement standards under 2 CFR Part 200.317–326, as well as local requirements in Lynwood Municipal Code Chapter 6-3 Purchasing.
In addition, all HOME subrecipients, CHDOs, and contractors are required to comply with the federal procurement requirements at 2 CFR 200.318–327. The City of Lynwood shall ensure that subrecipient agreements explicitly bind all partners to these standards. • The policies and procedures in this procurement section apply to the acquisition of contractors, consultants, vendors, and service providers, as governed by 2 CFR Part 200.318–327 and applicable local requirements.
• The selection of subrecipients and nonprofit organizations to carry out HOME -funded programs (e.g., TBRA, homeowner rehabilitation, or down payment assistance) is not a procurement action and is therefore not subject to federal procurement rules. Instead, the City of Lynwood uses a competitive NOF A process to identify and award funding to eligible organizations as outlined in Chapter 2.
Authorized Personnel & Approval Levels
To ensure accountability and compliance with federal procurement standards (2 CFR 200.318 – 327), the City of Lynwood designates the following personnel (Appendix J) as authorized to review and approve procurement activities under the HOME Program:
• City Council: Responsible for approval of formal procurement requests, selections, and awards for contracts ≥ $350,000, including construction projects and competitive proposals.
• Community Development Director : Authorized to approve procurement requests, selections, awards, and contract closeouts for micro -purchases (< $15,000) and small purchases ($15,000–$350,000).
• Finance Analyst: Responsible for invoice verification, approval of payment requests, and financial closeout documentation in alignment with procurement rules. • Administrative Analyst and/or HOME Program Consultant: May assist with procurement solicitations, evaluations, and documentation preparation, but does not have authority to approve selections, awards, or closeouts.
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All procurement approvals must be documented in the contract file, consistent with federal recordkeeping requirements under 2 CFR 200.334 and HOME Program regulations.
General Procurement Standards
The City must conduct all procurement transactions in a manner that is:
• Transparent and free of conflicts of interest;
• Conducted with full and open competition;
• Aligned with applicable federal, state, and local regulations; • Designed to avoid the acquisition of unnecessary or duplicative items, and to include analysis of lease versus purchase alternatives where appropriate (2 CFR 200.318(d)). • Proposals must be solicited from an adequate number of qualified offerors. For practicality, the City will ensure at least two (2) proposals are obtained whenever feasible.
The City shall maintain procurement records including solicitations, quotes, evaluations, cost/price analysis, and contract justifications for a minimum of five (5) years after project completion, in accordance with 24 CFR Part 92.508 and 2 CFR Part 200.334. Procurement records must also include cost/price analyses (required by 2 CFR Part 200.324(a)) for contracts over $350,000.
FIGURE 11-1 Applicable Procurement Thresholds
Procurement Type Dollar Threshold Required Process
Micro-Purchase Method < $15,000 May be awarded without soliciting competitive quotations if the price is
reasonable. Document price reasonableness.
Small Purchase Method $15,000 – $350,000 Obtain price or rate quotes from an adequate number (minimum of 3) of qualified sources.
Sealed bids (formal
procurement)
≥ $350,000 Use formal advertising with a firm fixed -price contract awarded to the lowest responsible
bidder. This method shall be required for all
construction projects.
Competitive Proposal
(RFP)
Professional services or
purchases over
$350,000
Use when sealed bidding is not appropriate.
Evaluate based on price and technical
qualifications.
Non-Competitive
Procurement
Any dollar amount
(under limited
circumstances)
Must meet federal criteria (e.g., only one
source available, public emergency, etc.).
Requires written justification and pre -
approval.
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Effective October 1, 2025
https://www.federalregister.gov/documents/2025/08/27/2025-16412/federal-acquisition-regulation-inflation-adjustment-of-acquisition-related-thresholds Procurement Methods
1. Competitive Sealed Bids (Formal Procurement): Required for all construction contracts regardless of dollar amount; and for the procurement of goods valued at $350,000 or more. • City Must:
a. Complete and realistic specifications;
b. Obtain three (at least two if three are not feasible) qualified bidders; c. Procurement suitable for firm fixed-price contract.
• Requirements:
a. Notice Inviting Bids (“NIB”) published for at least 14 days in advance in a newspaper of general circulation.
b. Federal funding disclosure must be included in all advertisements. c. Bids must include itemized line -item costs. No lump- sum or “miscellaneous” costs allowed.
d. Public bid opening conducted by City Clerk.
e. Awarded to the lowest responsive and responsible bidder. f. Bids may be rejected with justification.
g. If sealed bidding fails, negotiations may proceed under 2 CFR Part 200.320(c).
2. Competitive Proposals: Used when sealed bidding is not appropriate, including:
• Professional Services > $350,000 (planning, auditing, management, compliance) • Architectural or Engineering Services (regardless of dollar amount) • The City must maintain a written method for conducting technical evaluations of proposals and documenting the basis for selection.
• They include:
a. Request for Proposals (“RFP”):
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i. Requires scope of work, evaluation criteria, and pricing proposals. ii. Evaluations must be documented and transparent.
iii. Either a fixed-price or cost-reimbursement contract type may be awarded under this method.
b. Request for Qualifications (“RFQ”) used only for:
i. Architectural/Engineering (A/E), or
ii. To pre-qualify firms before issuing an RFP.
iii. When conducting qualifications -based procurement of architectural or engineering professional services, the City will evaluate strictly on demonstrated competence and qualifications. The most qualified firm will be selected, subject to negotiation of fair and reasonable compensation. c. Cost proposals are not requested in RFQs.
3. Small Purchase Procedures: Applies to purchases between $15,000 and $350,000. • Minimum of three (3) written quotes.
• Evaluation based on best value, including price, quality, and service. • May be used for:
a. Commodities (equipment, supplies),
b. Environmental reviews or planning,
c. Single-family rehab projects <$100,000.
• Not permitted for:
a. Construction (except rehab as noted),
b. Architectural or engineering services (must use RFP/RFQ).
4. Noncompetitive Proposals:
• May be used when competition is not feasible and one of the following applies:
a. The aggregate amount of the procurement transaction does not exceed the micro- purchase threshold;
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b. The procurement transaction can only be fulfilled by a single source; c. The public exigency or emergency for the requirement will not permit a delay resulting from providing public notice of a competitive solicitation; d. The recipient or subrecipient requests in writing to use a noncompetitive procurement method, and the Federal agency or pass -through entity provides written approval; or
e. After soliciting several sources, competition is determined inadequate. • Requires:
a. Written justification,
b. Prior approval where applicable,
c. Documentation of all efforts made to solicit competition.
Other Procurement Requirements
• Conflict of Interest (“COI”) (2 CFR Part 200.318(c); 24 CFR Part 92.356) No employee, officer, agent, or board member with a real or apparent conflict of interest may participate in the selection, award, or administration of a contract supported by the Federal award. A conflict of interest includes when the employee, officer, agent, or board member, any member of their immediate family, their partner, or an organization that employs or is about to employ any of the parties indicated herein, has financial or other interest in or a tangible personal benefit from an entity consider ed for a contract. An employee, officer, agent, and board member of the recipient or subrecipient may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors.
However, the recipient or subrecipient may set standards fo r situations where the financial interest is not substantial or a gift is an unsolicited item of nominal value.
Violations of these Conflict of Interest standards are serious and will result in corrective measures, which may include:
a. For City Employees:
i. Written Notice: First offenses typically result in a formal written warning. ii. Suspension: Repeat or significant violations may result in a 5 - to 30-day suspension.
iii. Termination: Serious or repeat violations can result in discharge from employment.
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iv. Forfeiture of Benefits: In cases of serious ethical breaches, certain benefits (including retirement) may be forfeited as permitted by law. b. For Elected & Appointed Officials:
i. Removal from Office: May occur following conviction or recall. ii. Disqualification: May be barred from holding future public office. iii. Official Censure: Formal reprimand, loss of committee assignments. iv. Voided Contracts: Contracts made in violation of COI provisions may be declared void.
c. For Subrecipients, CHDOs, Developers, and Contractors:
i. Contract Remedies: Contracts or agreements found in violation may be terminated, suspended, or declared void.
ii. Repayment of Funds: HUD and the City may require repayment of HOME funds expended under a conflict situation.
iii. Ineligibility for Future Funding: Organizations may be barred from applying for or receiving future HOME funds.
iv. Legal and Financial Liability: Entities may be subject to restitution, fines, or legal action under federal, state, or local law.
v. Debarment or Suspension: Contractors or organizations may be added to the federal exclusion list (SAM.gov) for serious or willful violations.
Factors Considered in Enforcement:
a. Severity and nature of the violation (financial conflict, misuse of insider information, bribery).
b. Whether the act was willful or negligent.
c. Financial gain or benefit realized.
d. Prior history of violations by the individual or entity. • Verification of Contractor Eligibility
a. All contractors, subcontractors, and consultants must be screened through SAM.gov to confirm they are not debarred, suspended, or ineligible. 282
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b. Verification must be conducted before contract execution, in accordance with 2 CFR Part 2424 and 2 CFR Part 200.214.
• Bonding Requirements (2 CFR Part 200.326; 24 CFR Part 92.357) a. For construction or facility improvement contracts > $350,000 using federal funds:
i. Bid Guarantee of 5% of bid price;
ii. Performance Bond of 100% of contract price;
iii. Payment Bond of 100% of contract price.
• Affirmative Steps (2 CFR Part 200.321)
a. The City must take affirmative steps to ensure inclusion of:
i. Small businesses,
ii. Minority- and women-owned enterprises (“M/WBEs”),
iii. Labor surplus area firms.
b. These include placing notices in relevant trade journals and working with organizations that support such businesses.
• Contract Cost and Price (2 CFR 200.324)
a. The City and all HOME subrecipients must perform a cost or price analysis for every procurement transaction, including contract modifications, in excess of the simplified acquisition threshold. Independent cost estimates must be prepared before receiving bids or proposals.
b. Costs or prices are allowable only if consistent with federal cost principles under 2 CFR Part 200, Subpart E.
c. The City and its subrecipients are strictly prohibited from using “cost plus a percentage of cost” and “percentage of construction cost” methods of contracting.
Recordkeeping and Documentation Requirements
The City must maintain, for a minimum of five (5) years after project completion, a complete procurement history as required by 2 CFR 200.318(i) and 2 CFR 200.334. Procurement records must include:
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• Rationale for the method of procurement chosen;
• Basis for the type of contract selected;
• Basis for contractor/vendor selection or rejection, including standards for evaluating integrity, compliance with public policy, record of past performance, financial/technical capacity, and ability to perform successfully;
• Basis for determining that the contract price is fair and reasonable; • Documentation of specific award(s), eligible activity type(s), and budget amount(s) under which each procurement is funded;
• Copies of solicitations, bids, proposals, evaluations, and contracts; • SAM.gov verification results;
• Documentation of affirmative steps taken to engage M/WBEs and small businesses; • Written justification for any noncompetitive procurement; • Evidence of cost/price analyses as required under 2 CFR 200.324(a).
Note: To ensure objective contractor performance and eliminate unfair competitive advantage, contractors, consultants, or entities that develop or draft specifications, requirements, statements of work, invitations for bids, or requests for proposals are stric tly prohibited from competing for those same procurements, in accordance with 2 CFR 200.319(b).
E. RELOCATION POLICIES
The City of Lynwood is committed to ensuring that any displacement resulting from HOME - funded housing projects and programs complies fully with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), Section 104(d) of the Housing and Community Development Act of 1974, and applicable HUD regulations. These procedures provide timely and accurate notices, fair and adequate relocation assistance, and minimize hardship for tenants, homeowners, and occupants impacted by HOME-funded housing activities.
Applicability
Prior to initiating any HOME -funded housing project involving acquisition, rehabilitation, or demolition that may displace residents, the City requires a thorough relocation analysis and a formal Relocation Plan.
Procedures
1. Project Site Assessment
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a. Identify all residential properties subject to displacement due to HOME -assisted activities.
b. Document project boundaries and nature of housing activities that may cause displacement.
2. Relocation Needs Assessment
a. Survey tenants and homeowners to collect data on:
i. Occupancy, income, ethnicity, language, and special needs (e.g., seniors, persons with disabilities).
ii. Preferences for relocation and housing types.
3. Replacement Housing Availability
a. Assess local affordable housing stock to locate comparable replacement units that meet HOME affordability and habitability standards.
4. Development and Approval of Relocation Plan
a. Prepare a detailed plan outlining relocation assistance measures, advisory services, budgets, timelines, and compliance with URA and Section 104(d). b. Obtain City approval prior to displacement.
5. Ongoing Monitoring
a. Track the delivery of relocation assistance and compliance with all HUD and City requirements.
Notice Requirements
• Notice to Owner: Property owners targeted for acquisition through the HOME Program will receive a formal Notice to Owner explaining voluntary acquisition rights and procedures.
• Notice to Tenants: Tenants residing in HOME -assisted properties will receive timely written notice of potential displacement or temporary relocation, including information on their rights under URA and Section 104(d), and details of available relocation assistance.
• Timing: All displacement -related notices will be provided at least 90 days prior to the required move date, with documentation maintained in project files. 285
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Relocation Assistance
• The City will provide relocation advisory services to displaced tenants and owner- occupants, including counseling on their rights and available assistance. • Eligible relocation costs include moving expenses, temporary housing, security deposits, and other reasonable expenses related to the move.
• Up to $500 in relocation advisory assistance may be provided for temporary relocations during rehabilitation, consistent with HUD guidelines and funding availability. • All relocation expenses incurred by the City are reimbursable under HUD HOME Program regulations.
• Rental assistance or downpayment assistance will be provided in accordance with HOME program rules.
• Temporary relocation assistance will be offered during rehabilitation or construction phases.
Special Considerations
• Additional assistance and reasonable accommodations will be provided for seniors, persons with disabilities, and low-income households.
Relocation Benefits
• Eligible Costs Include:
a. Moving expenses for displaced tenants and homeowners. b. Rental assistance for comparable, affordable housing. c. Downpayment assistance for tenants opting to purchase replacement housing. d. Staff and administrative costs related to relocation activities for HOME projects.
Program Assurances and Administrative Procedures
• Relocation activities will comply fully with HUD regulations and HOME Program requirements.
• Confidentiality of occupant information will be strictly maintained. • A grievance procedure will be available for tenants and homeowners to address concerns regarding relocation.
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• Evictions will only be permitted with appropriate notices and in compliance with “just cause” eviction protections under applicable laws, prohibiting retaliation or discrimination.
Implementation and Monitoring
• Program Staff will oversee relocation procedures for HOME housing projects, coordinating with subrecipients and developers.
• The City may retain relocation specialists to assist with surveys, advisory services, and plan development.
• Public participation will be encouraged to ensure transparency and community input throughout the relocation process.
Projected Displacement and Cost Estimates
• Anticipated relocation costs will be estimated during the planning phase and incorporated into the project budget and Relocation Plan submitted to HUD.
Tenant Protections
• Tenants shall not be required to move without proper notification and relocation assistance as required by law.
• The City will ensure tenants receive their right of first refusal to return to rehabilitated properties when applicable.
• HOME-assisted properties will be maintained as affordable housing to prevent involuntary displacement due to market conversions.
• Evictions will only be permitted for just cause and in compliance with federal and local laws, prohibiting retaliation or discrimination.
Compliance and Documentation
• The City’s HOME Program staff will monitor all projects to ensure full compliance with URA and Section 104(d) requirements.
• Documentation of notices, relocation assistance, and tenant communications will be retained for audit and monitoring purposes.
• Training and technical assistance will be provided to subrecipients and developers to facilitate adherence to these procedures.
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F. BUILD AMERICA, BUY AMERICA ACT (BABA) REQUIREMENTS
The Build America, Buy America Act (BABA), enacted through the Infrastructure Investment and Jobs Act on November 15, 2021, requires that iron, steel, manufactured products, and construction materials used in federally funded public infrastructure projects be domestically sourced (2 CFR 184.3; Sec. 70914(a)). HOME- assisted housing must comply when the project is considered public infrastructure under the Act, including multifamily projects of five (5) or more units or any HOME-funded activity involving construction, alteration, maintenance, or repair of a building or real property structure.
Determining BABA Applicability
HOME project proponents must complete HUD’s BABA Applicability Checklist ( Appendix K) to document whether the project uses federal funds for public infrastructure activities and involves covered materials.
When BABA Applies to HOME Projects
BABA applies to HOME-assisted projects when:
• The project is multifamily housing with 5+ units, or
• It involves construction, alteration, maintenance, or repair of real property structures. • HUD has confirmed, “Housing projects with one to four units are private and not subject to BA BA, whereas those with five or more units are typically treated as public infrastructure”
Projects Typically Not Covered
Projects exempt from BABA under CPD‑25‑01 include:
• One-to-four-unit residential projects, classified as private homes . • Purely soft-cost activities (e.g., planning, legal or environmental work).
General Waivers Available
CPD‑25‑01 identifies several HUD-wide general waivers that may relieve BABA obligations:
• Small Grants waiver (total project cost ≤ $250,000)
• Exigent Circumstances waiver (urgent, life/safety need) • De Minimis waiver (≤5% of total materials cost, up to $1M) 288
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HOME Policies and Procedures
• Tribal and Pacific Territory waivers also apply in specific circumstances These waivers can be used without a project- specific waiver request. Developers should document this in project records.
Timeline of BABA Requirements
Per CPD-25‑01, effective FY 2025, BABA is fully in effect for all materials (not just iron/steel). For HOME obligations on or after August 23, 2024, all covered materials must meet the domestic preference unless a waiver applies.
Documentation and Compliance
HOME project files must include:
• Completed BABA Checklist,
• Any waiver documentation (general or project-specific), • Procurement documents with Buy America clauses,
• Supplier certifications or manufacturer documentation confirming compliance.
The BABA requirements shall be followed by subrecipients, contractors, and developers. 289
City of Lynwood
HOME Policies and Procedures
CHAPTER 12: CONCLUSION & POLICY REVIEW
These HOME Investment Partnerships Program Policies and Procedures serve as the comprehensive operational guide for the City of Lynwood’s administration of its HOME Program.
It provides direction to staff, subrecipients, developers, CHDOs, and other stakeholders in the planning, implementation, and long-term compliance of HOME-funded activities.
The policies outlined in this manual are based on the federal regulations in 24 CFR Part 92, relevant HUD notices, and current program guidance. The manual supports consistent, transparent decision -making and promotes regulatory compliance throughout the l ifecycle of HOME projects.
A. OVERSIGHT AND ACCOUNTABILITY
The City of Lynwood’s Housing Division is responsible for the oversight and implementation of these policies and procedures. All staff, contractors, and partners administering HOME funds are expected to understand and follow these policies and procedures in the execution of program activities. This includes ensuring:
1. Compliance with applicable federal, state, and local laws,
2. Proper use and documentation of HOME funds,
3. Timely reporting and file maintenance,
4. Ongoing monitoring of funded projects during the period of affordability.
B. POLICY REVIEW, UPDATES AND AMENDMENTS
To ensure continued compliance with HUD regulations and consistency in program administration, the City of Lynwood will review these Policies and Procedures at least annually or more frequently if significant regulatory, programmatic, or operational changes occur.
Triggers for Updates
Revisions may be required when:
• HUD issues new regulations, CPD Notices, or other formal guidance; • Federal requirements under 24 CFR Part 92, 2 CFR Part 200, or other applicable laws are amended;
• Monitoring or audit findings identify areas requiring correction; • Internal program evaluations indicate a need for improved procedures. 290
City of Lynwood
HOME Policies and Procedures
Update Procedures
The Community Development Department will:
1. Identify sections requiring revision;
2. Draft proposed updates;
3. Conduct internal review with program staff and City management;
4. Submit revisions to the appropriate approving authority (e.g., Community Development Director, City Manager, or City Council, depending on policy scope);
5. Issue updated versions to all relevant stakeholders.
C. DOCUMENTATION AND DISTRIBUTION
• Updated sections will be distributed to Program Staff, subrecipients, contractors, and CHDOs, as applicable.
• The most current version of the policies and procedures will be posted on the City’s website and available upon request.
• All prior versions will be archived to maintain audit readiness and transparency.
D. COMMITMENT TO FAIR, EFFECTIVE, AND COMPLIANT PROGRAM DELIVERY The City of Lynwood is committed to delivering the HOME Program in a manner that is equitable, efficient, and compliant with HUD regulations. These policies and procedures reflect the City’s dedication to affordable housing development, long -term stewardship of public resources, and strong partnerships with mission-aligned organizations.
291
City of Lynwood
HOME Policies and Procedures
APPENDIX:
A. Request for Reimbursement Form
B. HUD Form 40107
C. Instructions for Returning Funds to the Line of Credit and to the U.S. Treasury D. Sample Income Documentation Checklist
E. Sample Rehabilitation Program Checklist
F. CHDO Board Self Certification
G. NSPIRE Checklist
H. Sample Monitoring Letter
I. Sample Monitoring Report Letter/ Close-out Letter
J. City of Lynwood Personnel
K. BABA Checklist
292
City of Lynwood
HOME Policies and Procedures
Appendix A
Request for
Reimbursement Form
293
Instructions for Submitting Reimbursement Requests (RFR) • Invoice : Complete all the fields on the form .
• Request for Reimbursement Form : Complete all the fields on the form, including contract amount and balance, funding source, reimbursement period (check boxe s), and signatures. o List only the items for which you are seeking reimbursement . o E
ach item should be listed separately, in its own line and include a clear description (i.e., “Rent for May 2022” or “Salary for Case Manager J. Smith for June 2022 ”) o If additional lines are needed, please include additional sheets. • Section Sheets
o For each item listed, the subrecipient shall include a section sheet identifying the item number, description, and cost .
o If the subrecipient is submitting one PDF attachment/ document the order of the documents shall follow: 1) Request for Reimbursement Form, Item No. 1 Section Sheet, Back Up Document(s) for that item, Item No. 2 Section Sheet, Back Up Document(s) for that item, etc. o If the subrecipient is submitting multiple PDF attac hments/ documents, each attachment must have a Section Sheet as a cover sheet, followed by the actual backup document(s). See requested naming conventions below under “How to Submit”
• Back Up Documents
o Each item must be accompanied by documentation supporting that the expense was incurred and paid by the subrecipient
o Acceptable documents may include invoices and receipts, other receipts, timecards and payroll registers, rental agreements and receipts, bank statements, etc. 1 o If
the documentation lists multiple expenses (like a credit card statement or payroll register), the requested item should be highlighted
• Due Dates
o Reimbursement Requests may be submitted monthly or quarterly o In either case Reimbursement Requests must be submitted n o later than the 15th of the following month
Quarter 1 due – Oct. 15 th
Quarter 2 due – Jan. 15th
Qua
rter 3 due – Apr. 15 th
Qua
rter 4 due -Jul. 15 th
• How to Submit
o You may submit your reimbursement request in the following manners ☐ Mail to: ATTN: ______________
_________________ ____
_____________________
☐ Email to: __________________________
Subject Line: RFR Quarter _____ - Name of Subrecipient • Please use the following naming conventions for attached document s If Monthly If Quarterly
RFR RFR Quarter 1 Jan 22 RFR RFR Quarter1
Supporting
Sheets Item No. 1 Q1 Jan 22 Supporting
Sheets Item No. 1 Q1
1 This list is not mean t to be exhaustive ; if you have questions, please reach out to CDBG staff 294
INVOICE
Invoice # Date
Bill To:
City: __________________________
Address: _______________________
_______________________________
Description Amount
Funding Source: _____________________________
F
iscal Year: ________
Quarter: __________
M
onth: ___________________
TOTAL
Re
mit Payment To:
___________________________________
_
__________________________________
_
__________________________________
_
__________________________________
295
REQUEST FOR REIMBURSEMENT FORM
Project/Activity Title: Invoice No:
Subrecipient Name:
Address:
FUNDING SOURCE- Select only one. A separate reimbursement request is required for each funding source.
CDBG CDBG - CV
☐ ☐
CONTRACT AMOUNT CURRENT REIMBURSEMENT CONTRACT BALANCE
$ $ $
P
ERIOD OF REIMBURSEMENT REQUEST - please check the appropriate box (es) ☐ Q UARTER 1 ☐ Q UARTER 2 ☐ Q UARTER 3 ☐ Q UARTER 4
☐ July 202____
☐ August 202____
☐ September 202____
☐ October 202____
☐ November 202____
☐ December 202____
☐ January 202____
☐ February 202____
☐ March 202____
☐ April 202____
☐ May 202____
☐ June 202____
ITEM
NO. DATE OF INVOICE DESCRIPTION OF ITEM
BACKUP
DOCUMENTATION
INLUCED (YES/NO)
AMOUNT
REQUESTED
1 $
2 $
3 $
4 $
5 $
6 $
7 $
8 $
9 $
10 $
11 $
12 $
Total: $
I certify that we have not previously billed the City for the costs covered by this invoice. Supporting documentation for all staff time have been attached to this Request for Reimbursement and verified by authorized signature.
P
repared by:
Signature: _____________________________________
Printed Name : _________________________________
Title : _________________________________________
Date: _________________________________________
Phone/Email: __________________________________
A
pproved by:
Print: ________________________________________
Sign: _________________________________________
Date:_________________________________________
Account No: ___________________________________
Office Use Only
296
CDBG
Section Sheet
Item No:
A
mount: $
Description:
297
City of Lynwood
HOME Policies and Procedures
Appendix B
HUD Form 40107
298
form HUD-40107-A (10/2020) page 1 of 4 pages
Part II Fiscal Year Summary
1. Excess match from prior Federal fiscal year $
2. Match contributed during current Federal fiscal year (see Part III.9.) $
3. Total match available for current Federal fiscal year (line 1 + line 2) $
4. Match liability for current Federal fiscal year $
5. Excess match carried over to next Federal fiscal year (line 3 minus line 4) $ HOME Match Report U.S. Department of Housing and Urban Development Office of Community Planning and Development
Part III Match Contribution for the Federal Fiscal Year Part I Participant Identification
1. Participant No. (assigned by HUD) 2. Name of the Participating Jurisdiction 3. Name of Contact (person completing this report)
5. Street Address of the Participating Jurisdiction 4. Contact's Phone Number (include area code)
6. City 7. State 8. Zip Code
Match Contributions for
Federal Fiscal Year (yyyy)
OMB Approval No. 2506-0171
(exp. 09/30/2023)
7. Site Preparation,
1. Project No. 2. Date of 3. Cash 4. Foregone Taxes, 5. Appraised 6. Required Construction Materials, 8. Bond 9. Total or Other ID Contribution (non-Federal sources) Fees, Charges Land / Real Property Infrastructure Donated labor Financing Match (mm/dd/yyyy)
299
page 2 of 4 pages
7. Site Preparation,
1. Project No. 2. Date of 3. Cash 4. Foregone Taxes, 5. Appraised 6. Required Construction Materials, 8. Bond 9. Total or Other ID Contribution (non-Federal sources) Fees, Charges Land / Real Property Infrastructure Donated labor Financing Match Name of the Participating Jurisdiction Federal Fiscal Year (yyyy) (mm/dd/yyyy)
form HUD-40107-A (10/2020)
form HUD-40107-A (10/2020) 300
page 3 of 4 pages
Instructions for the HOME Match Report
3. Total match available for current Federal fiscal
year: The sum of excess match carried over from the
prior Federal fiscal year (Part II. line 1) and the total match contribution for the current Federal fiscal year
(Part II. line 2). This sum is the total match available for the Federal fiscal year.
4. Match liability for current Federal fiscal year: The amount of match liability is available from HUD and
is provided periodically to PJs. The match must be
provided in the current year. The amount of match that must be provided is based on the amount of HOME
funds drawn from the U.S. Treasury for HOME projects.
The amount of match required equals 25% of the
amount drawn down for HOME projects during the
Federal fiscal year. Excess match may be carried over
and used to meet match liability for subsequent years
(see Part II line 5). Funds drawn down for administra- tive costs, CHDO operating expenses, and CHDO
capacity building do not have to be matched. Funds
drawn down for CHDO seed money and/or technical
assistance loans do not have to be matched if the
project does not go forward. A jurisdiction is allowed to get a partial reduction (50%) of match if it meets one of two statutory distress criteria, indicating “fiscal
distress,” or else a full reduction (100%) of match if it meets both criteria, indicating “severe fiscal distress.” The two criteria are poverty rate (must be equal to or
greater than 125% of the average national family
poverty rate to qualify for a reduction) and per capita income (must be less than 75% of the national average
per capita income to qualify for a reduction). In
addition, a jurisdiction can get a full reduction if it is declared a disaster area under the Robert T. Stafford
Disaster Relief and Emergency Act.
Applicability:
The HOME Match Report is part of the HOME APR and
must be filled out by every participating jurisdiction that incurred a match liability. Match liability occurs when FY 1993 funds (or subsequent year funds) are drawn down
from the U.S. Treasury for HOME projects. A Participat- ing Jurisdiction (PJ) may start counting match contribu- tions as of the beginning of Federal Fiscal Year 1993
(October 1, 1992). A jurisdiction not required to submit this report, either because it did not incur any match or because it had a full match reduction, may submit a HOME Match Report if it wishes. The match would count as
excess match that is carried over to subsequent years. The match reported on this form must have been contributed
during the reporting period (between October 1 and Sep- tember 30).
Timing:
This form is to be submitted as part of the HOME APR on or before December 31. The original is sent to the HUD Field Office. One copy is sent to the
Office of Affordable Housing Programs, CGHF
Room 7176, HUD, 451 7th Street, S.W.
Washington, D.C. 20410.
The participating jurisdiction also keeps a copy.
Instructions for Part II:
1. Excess match from prior Federal fiscal year: Excess match carried over from prior Federal fiscal year.
2. Match contributed during current Federal fiscal
year: The total amount of match contributions for all
projects listed under Part III in column 9 for the
Federal fiscal year.
5. Excess match carried over to next Federal fiscal
year: The total match available for the current Federal fiscal year (Part II. line 3) minus the match liability for the current Federal fiscal year (Part II. line 4). Excess match may be carried over and applied to future HOME
project match liability.
Instructions for Part III:
1. Project No. or Other ID: “Project number” is as-
signed by the C/MI System when the PJ makes a
project setup call. These projects involve at least some Treasury funds. If the HOME project does not involve
Treasury funds, it must be identified with “other ID” as follows: the fiscal year (last two digits only), followed by a number (starting from “01” for the first non-
Treasury-funded project of the fiscal year), and then at least one of the following abbreviations: “SF” for
project using shortfall funds, “PI” for projects using
program income, and “NON” for non-HOME-assisted
affordable housing. Example: 93.01.SF, 93.02.PI,
93.03.NON, etc.
Shortfall funds are non-HOME funds used to make up
the difference between the participation threshold and
the amount of HOME funds allocated to the PJ; the
participation threshold requirement applies only in the PJ’s first year of eligibility. [§92.102]
Program income (also called “repayment income”) is
any return on the investment of HOME funds. This
income must be deposited in the jurisdiction’s HOME
account to be used for HOME projects. [§92.503(b)]
Public reporting burden for this collection of information is estimated to average 45 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not conduct or spon sor, and a person is not required to respond to, a collection of information unless that collection displays a valid OMB control number.
The HOME statute imposes a significant number of data collection and reporting requirements. This includes information on assi sted properties, on the owners or tenants of the properties, and on other programmatic areas. The information will be used: 1) to assist HOME participants in managing their programs; 2) to track per formance of participants in meeting fund commitment and expenditure deadlines; 3) to permit HUD to determine whether each participant meets the HOME statutory income targeting and affordability r equirements; and 4) to permit HUD to determine compliance with other statutory and regulatory program requirements. This data collection is authorized under Title II of the Cranston-Gonzalez Nati onal Affordable Housing Act or related authorities. Access to Federal grant funds is contingent on the reporting of certain project-specific data elements. Records of information collected will be maint ained by the recipients of the assistance. Information on activities and expenditures of grant funds is public information and is generally available for disclosure. Recipients are responsible for en suring confidentiality when public disclosure is not required. form HUD-40107-A (10/2020) 301
page 4 of 4 pages
Non-HOME-assisted affordable housing is investment
in housing not assisted by HOME funds that would
qualify as “affordable housing” under the HOME Pro-
gram definitions. “NON” funds must be contributed to
a specific project; it is not sufficient to make a contri- bution to an entity engaged in developing affordable
housing. [§92.219(b)]
2. Date of Contribution: Enter the date of contribution.
Multiple entries may be made on a single line as long as the contributions were made during the current fiscal
year. In such cases, if the contributions were made at different dates during the year, enter the date of the last contribution.
3. Cash: Cash contributions from non-Federal resources.
This means the funds are contributed permanently to the HOME Program regardless of the form of investment the
jurisdiction provides to a project. Therefore all repay- ment, interest, or other return on investment of the con- tribution must be deposited in the PJ’s HOME account to be used for HOME projects. The PJ, non-Federal public
entities (State/local governments), private entities, and individuals can make contributions. The grant equiva-
lent of a below-market interest rate loan to the project is eligible when the loan is not repayable to the PJ’s HOME account. [§92.220(a)(1)] In addition, a cash contribution can count as match if it is used for eligible costs defined under §92.206 (except administrative costs and CHDO
operating expenses) or under §92.209, or for the follow- ing non-eligible costs: the value of non-Federal funds
used to remove and relocate ECHO units to accommo-
date eligible tenants, a project reserve account for re- placements, a project reserve account for unanticipated increases in operating costs, operating subsidies, or costs relating to the portion of a mixed-income or mixed-use
project not related to the affordable housing units.
[§92.219(c)]
4. Foregone Taxes, Fees, Charges: Taxes, fees, and charges that are normally and customarily charged but have been waived, foregone, or deferred in a manner that achieves affordability of the HOME-assisted housing. This in-
cludes State tax credits for low-income housing develop- ment. The amount of real estate taxes may be based on the post-improvement property value. For those taxes, fees, or charges given for future years, the value is the present discounted cash value. [§92.220(a)(2)]
5. Appraised Land/Real Property: The appraised value,
before the HOME assistance is provided and minus
any debt burden, lien, or other encumbrance, of land or other real property, not acquired with Federal re-
sources. The appraisal must be made by an indepen-
dent, certified appraiser. [§92.220(a)(3)]
6. Required Infrastructure: The cost of investment, not made with Federal resources, in on-site and off-site
infrastructure directly required for HOME-assisted
affordable housing. The infrastructure must have been
completed no earlier than 12 months before HOME
funds were committed. [§92.220(a)(4)]
7. Site preparation, Construction materials, Donated
labor: The reasonable value of any site-preparation
and construction materials, not acquired with Federal
resources, and any donated or voluntary labor (see
§92.354(b)) in connection with the site-preparation
for, or construction or rehabilitation of, affordable
housing. The value of site-preparation and construc-
tion materials is determined in accordance with the
PJ’s cost estimate procedures. The value of donated or voluntary labor is determined by a single rate (“labor
rate”) to be published annually in the Notice Of Fund-
ing Availability (NOFA) for the HOME Program.
[§92.220(6)]
8. Bond Financing: Multifamily and single-family
project bond financing must be validly issued by a
State or local government (or an agency, instrumental-
ity, or political subdivision thereof). 50% of a loan
from bond proceeds made to a multifamily affordable
housing project owner can count as match. 25% of a
loan from bond proceeds made to a single-family
affordable housing project owner can count as match.
Loans from all bond proceeds, including excess bond
match from prior years, may not exceed 25% of a PJ’s
total annual match contribution. [§92.220(a)(5)] The
amount in excess of the 25% cap for bonds may carry
over, and the excess will count as part of the statutory limit of up to 25% per year. Requirements regarding
bond financing as an eligible source of match will be
available upon publication of the implementing regu-
lation early in FY 1994.
9. Total Match: Total of items 3 through 8. This is the total match contribution for each project identified in item 1.
Ineligible forms of match include:
1. Contributions made with or derived from Federal re-
sources e.g. CDBG funds [§92.220(b)(1)]
2. Interest rate subsidy attributable to the Federal tax- exemption on financing or the value attributable to
Federal tax credits [§92.220(b)(2)]
3. Contributions from builders, contractors or investors, including owner equity, involved with HOME-assisted
projects. [§92.220(b)(3)]
4. Sweat equity [§92.220(b)(4)]
5. Contributions from applicants/recipients of HOME
assistance [§92.220(b)(5)]
6. Fees/charges that are associated with the HOME Pro-
gram only, rather than normally and customarily
charged on all transactions or projects [§92.220(a)(2)]
7. Administrative costs
form HUD-40107-A (10/2020) 302
City of Lynwood
HOME Policies and Procedures
Appendix C
Instructions for Returning
Funds to the Line of Credit
and to the U.S. Treasury
303
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-7000
OFFICE OF COMMUNITY PLANNING
AND DEVELOPMENT
www.hud.gov espanol.hud.gov
MEMORANDUM FOR: All Field Office Community Planning and Development Division Directors
FROM: Kevin J. Bush, Deputy Assistant Secretary for Grant Programs, DG SUBJECT: Methods for Returning Community Development Block Grant Funds
This document provides basic instructions on returning Community Development Block Grant (CDBG) funds due to noncompliance with applicable regulations. This document consolidates the instructions for all methods of returning funds and provides revised instructions to report grant funds that have been returned to a grantee’s local account. This document also provides instructions concerning excess program income in the Entitlement CDBG program.
For HUD-directed repayments from a grantee, the HUD Field Office will determine the appropriate repayment method. For grantee-directed repayments resulting from a grantee’s monitoring and review of subrecipients or subgrantees, the grantee should consult with the HUD field office regarding the method of repayment. The applicable scenarios for each repayment method are as follows:
I. Returning funds to the program Line of Credit
Return grant funds to a grant account in the Line of Credit Control System (LOCCS). This is the required repayment method when a reasonable amount of time remains to expend the funds before the account cancellation at the end of the eighth federal fiscal year from the federal fiscal year of the appropriation. See 24 CFR 570.200(k) and 24 CFR 570.480(h).
II. Returning funds to the U.S. Treasury
Scenario 1: Interest is accrued/earned on funds that are not disbursed within established timeframes after a draw. See 24 CFR 570.500(a)(2)(i).
Scenario 2: Interest is earned on the cash balance of Entitlement CDBG revolving loan funds. See 24 CFR 570.500(b).
Scenario 3: Interest is earned by units of general local government on State CDBG grant funds during the time between receipt of funds from the State and disbursement by the unit of general local government. See 24 CFR 570.489(c)(2).
Scenario 4: Interest is earned on loans or other CDBG-assisted activities that are subsequently determined to be ineligible. See 24 CFR 570.500(a)(2)(ii).
III. Returning grant funds to a grantee’s local program account Funds repaid to a grant that is past the eight-year limitation on use of funds. See 24 CFR 570.200(k) and 24 CFR 570.480(h).
304
2 IV. Returning program income funds to a grantee’s local program account If an activity funded with program income (PI), revolving funds (RL), or state revolving funds (SF) is determined to be ineligible or disallowed, the repayment for PI, RL, and SF should be deposited in grantee’s local program account.
V. Returning excess program income to HUD (Applies to the CDBG Entitlement Communities, Hawaii Counties, and Insular Areas)
At the end of each program year, if a grantee has program income on hand in an amount that is more than one-twelfth of the most recent grant amount, the excess program income shall be remitted to HUD. See 24 CFR 570.504(b)(iii).
For each method described above, detailed guidance is provided below regarding both the financial transactions and IDIS reporting. Note that this guidance does not apply to reimbursements made under the Section 108 Loan Guarantee Program.
Any questions about Section 108 reimbursements should be directed to the Financial Management Division, Office of Block Grant Assistance, at 202-708-1871.
305
3 I. Returning Funds to The Program Line of Credit
Return grant funds to a grant account in the Line of Credit Control System (LOCCS). This is the required repayment method when a reasonable amount of time remains to expend the funds before the account cancellation at the end of the eighth federal fiscal year from the federal fiscal year of the appropriation. See 24 CFR 570.200(k) and 24 CFR 570.480(h).
When a grantee returns funds to line of credit, they must be returned to the same origin year grant(s) from which funds were drawn.
Please note: Funds returned to a grant must be drawn before the September 30th of the eighth federal fiscal year from that grant’s origin year. Any unexpended funds in the line of credit will be recaptured, return to Treasury and lost to the grantee. For example, 2014 origin year grants will expire after September 30, 2021. If a grantee returned grant funds to its 2014 origin year, any unexpended 2014 grant funds in the line of credit will be recaptured, return to the Treasury and lost to the grantee after September 30, 2021.
A. Financial Transactions When Returning Funds to the Line of Credit
i. Returning Grant Funds to HUD via Check
A remittance to the line of credit of less than $2000 may be made by sending a check for the amount to HUD’s Miscellaneous Lockbox at the following address. The check should be made payable to U. S. Department of HUD:
US Bank
HUD-FAD Collections Ft Worth
PO Box 6200-05
Portland, OR 97228-6200
Be sure to identify the Grant Number and Account Number #86011101 in the memo field on the check. Normal time span for processing: 4 – 6 weeks before showing as a negative draw in IDIS.
ii. Returning Grant Funds via Wire Transfer
Any remittance to the line of credit of $2000 or more must be sent via wire transfer. Wire transfer payments must be sent using the Department of U.S. Treasury’s Financial Communications System (TFCS). For funds and deposit messages to be routed correctly and efficiently, all wire transfer messages should conform to the applicable structured format described below. All wire transfers must be returned through the participant’s local financial institution. If the local financial institution is not a member of the TFCS, it must have a correspondent bank relationship with a member bank that will actually transfer the funds by wire to the Treasury. Normal time span for processing funds returned to the line of credit: 10 – 15 days before showing as a negative draw in IDIS.
306
4 Figure 1: Bank information - Wire transfer funds to LOC Bank Federal Reserve Bank of NY
Bank Address 33 Liberty St., New York, NY 10045
ABA Routing Number (Treasury
Department Code)
021030004
Account Number (Agency Location Code) 86011101
Beneficiary Code D
Account Holder U.S. Department of HUD (Ft. Worth, TX)
Memorandum/Third Party Information Grantee Name
Grant Number
Attn: HUD CPD/ CDBG/IDIS
Memo: $$$ (enter dollar amount being wired) and
State: Drawn on ineligible activity to line of credit
B. Actions That Must be Taken in IDIS When Funds are Returned to the Line of Credit.
When grant funds returned to the line of credit are processed back into IDIS, IDIS does not automatically attribute returned funds to the activity being repaid. Rather, the amount returned shows as a negative draw under activity #2 for the origin year grant to which the funds were returned.
Use the following steps to revise the negative draw voucher(s) for the program from which the funds were originally drawn so that the returned funds may then be used for other eligible activities:
1) Select the Funding/Drawdown Tab.
2) Click the Search Voucher link on the left side under Drawdown. 3) The Search Vouchers page will appear.
4) Enter the number 2 in the IDIS Activity ID field for the returned funds. 5) Click the Search button.
6) The search results will appear. Find the voucher with the exact repayment as a negative amount.
7) Click the Maintain-Approve link under the Action column. 8) The Maintain and Approve Voucher page will appear.
9) Click the Revise link under the Action column.
10) The Revise Voucher Line Item page will appear.
307
5 11) Under the Revise Funds to Another Activity section, enter the IDIS Activity ID for the ineligible activity for which the funds were originally drawn and the dollar amount to be associated with the activity, proceeded by a negative sign.
12) Click the Save button.
13) Voucher revised successfully message will appear.
14) Once the Voucher(s) has been revised, it is necessary to revise the funding for the activity from which the funds were returned. The funded amount and drawn amount must be equal.
In the case of full repayment, the funded amount and drawn amount would both be zero.
15) Cancel the activity if funds are paid in full.
16) Decreasing the funding for the ineligible activity simultaneously increases the available for funding amount for the given grant funding source being repaid. Those funds represent the returned funds which must be added to a new (or existing) eligible activity.
17) Repeat these steps for each return of funds to ensure the returned funds are available to be used for other eligible activities.
308
6 II. Returning Funds to The U.S. Treasury
Scenario 1: Interest is accrued/earned on funds that are not disbursed within established timeframes after a draw. See 24 CFR 570.500(a)(2)(i).
Scenario 2: Interest is earned on the cash balance of Entitlement CDBG revolving loan funds. See 24 CFR 570.500(b).
Scenario 3: Interest is earned by units of general local government on State CDBG grant funds during the time between receipt of funds from the state and disbursement by the unit of general local government. See 24 CFR 570.489(c)(2).
Scenario 4: Interest is earned on loans or other CDBG-assisted activities that are subsequently determined to be ineligible. See 24 CFR 570.500(a)(2)(ii).
Note: Funds returned to the U.S. Treasury are not added to a grant account in LOCCS. The funds are not available for future obligations and expenditures.
Figure 2: Bank Information – Wire Transfer Funds to Treasury Bank
Federal Reserve Bank of NY
Bank Address 33 Liberty St., New York, NY 10045
ABA Routing Number (Treasury
Department Code)
021030004
Account Number (Agency Location Code) 86011101
Beneficiary Code D
Account Holder
U.S. Department of HUD
(Ft Worth, TX)
Memorandum/Third Party Information
Grantee Name
Attn: HUD CPD/CDBG
Account: 863200
Memo: $$$ (enter dollar amount being wired) and
state which type of interest is being returned:
1. Return to Treasury interest earned on funds
not used within 15 days of draw;
2. Return to Treasury interest earned on CDBG
revolving loan fund;
3. Return to Treasury interest earned by unit of
government on funds receipted from state
before disbursement; or
4. Return to Treasury interest earned on
ineligible activity.
309
7 III. Returning Grant Funds to a Grantee’s Local Program Account Funds are to be repaid for an activity drawn from a grant that is past the eight-year limitation on use of funds. See 24 CFR 570.200(k) and 24 CFR 570.480(h).
When reporting the return of grant funds to a grantee’s local program account, the processes for reporting in IDIS have recently changed. Grantees shall now use the Local Account (LA) fund in IDIS as described below. The prior method of revising vouchers from the ineligible activity to an eligible activity will no longer be used. Under the new method the vouchers against grant funds for the ineligible activity will not be revised. See below for more details.
While both repaid grant funds and program income funds reside in a grantee’s local program account, the IDIS actions for reporting repayments of grant funds and program income differ greatly. See below section IV for more information on reporting repayments of program income in IDIS.
IDIS Actions When Returning Grant Funds to a Grantee’s Local Program Account 1) Receipt the Repayment:
The repayment of grant funds to a grantee’s local program account is reported in IDIS through the creation of a receipt to the LA fund. To create an LA receipt, the user will fill in the Add Receipt screen as shown below. Users will indicate that a repayment has been made to their local account by creating a receipt under the LA fund type. The grantee will associate the repayment with the activity ID and the specific origin year grant being repaid.
The grantee will also report on the re-use or expenditure of the funds by origin year grant.
Figure 3: Add Receipt Screen for the LA Fund Type
The user enters the required fields, including the ID of the activity being repaid, and clicks the [Show Activity Funds] button. The system displays a table with one row for each Grant Year and Fund Type from which funds were drawn for the activity.
For each Grant Year and Fund Type, the table shows the drawn amount, any previous LA repayments, and the remaining balance. The user enters the Receipt Amount and, optionally, the Grantee Receipt #.
310
8 When the receipt is saved, individual receipts, with distinct receipt numbers, are created for each source.
Figure 4: Search Receipts Screen
2) Do NOT revise the vouchers; instead Cancel the Activity with Draws.
When an LA receipt is created to indicate that CDBG funds expended on an activity have been repaid to a local account, the grantee will treat the vouchers for that activity as follows:
The grantee will leave vouchers for grant funds (EN, AD, SU, and TA) untouched and request that the activity to be cancelled with draws after required repayments have been paid in full. These vouchers cannot be cancelled and the grantee shall NOT revise them.
When requesting the activity to be cancelled with draws, the grantee must provide an explanation for why this activity can legitimately be cancelled with draws. The grantee should list all the LA receipts numbers and amounts for the LA funds that have been returned.
If an activity included both eligible and ineligible costs, and the LA funds only represent the ineligible portion of the costs, the grantee will not cancel the activity with draws. Instead, it should include the LA receipt number and the amount that has been repaid in the activity description field and adjust accomplishments accordingly. Then “Complete” the activity if appropriate. For example, an activity consisted of rehabilitating six single housing units, and two units failed to meet a national objective. Funds are returned to the local program account for the two noncompliant units. When creating a LA receipt for the returned funds, the grantee should enter the addresses of the failed units in the LA receipt note field. The grantee will also adjust the accomplishments to four units to reflect the actual accomplishments. In the activity description field, the grantee should enter the LA receipt number and the amount that has been repaid for the activity. Then Complete the activity.
Remember that only repayments of grant funds utilize the LA receipt. See section IV for repayments of program income funds.
3) Re-Use the LA Funds.
By funding and drawing LA funds for new or existing activities, grantees will record in IDIS how CDBG grant funds repaid to their local account were expended and the accomplishments that were achieved with them. The LA funds were originally associated with a specific origin year grant. The re-use of those funds will be associated with that same origin year grant.
Note: A grantee must disburse LA funds prior to drawing additional CDBG grant funds to pay for activity-related costs. This may mean that an ongoing activity with a draw request may need to be funded with LA funds in the amount of the necessary draw. As a consequence, that activity’s grant funding may need to be reduced by the amount of LA funding added. If a grantee has both LA funds and program income on hand, use program income before LA funds.
311
9 IV. Returning Program Income Funds to a Grantee’s Local Program Account
When an activity was funded with program income (PI), revolving funds (RL), or state revolving funds (SF), the repayments of program income, revolving funds, and state revolving funds should be deposited in a grantee’s local program account.
IDIS Actions When Returning Program Income Funds to a Grantee’s Local Account Upon confirmation that the grantee has reimbursed its local program account, the grantee may cancel all the original draws/vouchers that were made against PI/RL/SF for the activity and defund the activity for the same amount. Use the following steps to cancel the program income vouchers. 1) Select the Funding/Drawdown Tab.
2) Click the Search Voucher link on the left side under Drawdown. 3) The Search Voucher page will appear.
4) Enter the IDIS Activity Number in the IDIS Activity ID field for which the funds were originally drawn.
5) Click the Search button.
6) The search results will appear.
7) Click the Maintain-Approve link under the Action column. 8) Click the Cancel link under the Action column.
9) The Confirm Voucher Line Item Cancellation page will appear. 10) Click the check box “Also reduce the activity funding by $xxxx and return the fund to Community Development Block Grant Receipt Account.”
11) Click the Cancel This Line Item. The Maintain and Approve Voucher page will appear. 12) Voucher Cancelled Successfully message will appear. 312
10 V. Returning Excess Program Income to HUD (Applies to the CDBG Entitlement Communities, Hawaii Counties, and Insular Areas)
At the end of each program year, if a grantee has program income on hand in an amount that is more than one-twelfth of its most recent grant amount, the excess program income shall be remitted to HUD.
A. Financial Transactions When Returning Program Income to HUD
1) To return excess program income to HUD in accordance with 24 CFR 570.504(b)(iii), a CDBG grantee must complete a wire transfer request using the following information:
Bank U.S. Treasury FRB New York
Bank Address New York, NY
ABA Routing Number (Treasury Dept.
Code)
021030004
Agency location code/Account Number 86010300
Beneficiary Code D
Account Holder U.S. Dept. of HUD (Washington, DC)
Memorandum/Third Party Information
Grantee Name
Attn: HUD CPD/CDBG
Account code: 86X6760
Memo: $$$(enter dollar amount wired)
and state “Returning Excess Program
Income”
2) CPD Notification of returned funds: HUD’s Office of the Chief Financial Officer - Accounting Monitoring & Analysis Division will receive notification when a CDBG grantee has completed a wire transfer of excess program income to account 86X6760. The designated person handling this account for that Division will notify the Entitlement Communities Division in CPD of the return, identifying the name of the grantee that has returned excess program income, as well as the amount of funds and the date returned. The Entitlement Communities Division will then e-mail this information to the appropriate Field Office CPD Division Director, requesting that the Division Director ensure the grantee has the information below on the steps to follow to request a draw of the excess program income the grantee has returned.
B. Drawing Returned Excess Program Income
1) The grantee official authorized to approve CDBG drawdowns in the Integrated Disbursement and Information System (IDIS) will send an e-mail requesting a drawdown from account 86X6760 to a person designated by the Field Office CPD Division Director.
A completed SF-1034, Public Voucher for Purchases and Services Other Than Personal, must be attached to the grantee’s e-mail.
313
11 2) Upon receipt, the Field Office CPD designee will review the SF 1034 for completeness and send an e-mail to the grantee stating whether the request is approved or not approved. If the request is not approved, the request is to be returned to the grantee, via e-mail, stating why it was not approved. (Generally, a request will only be disapproved if the form is incomplete, the amount requested exceeds the amount available, and/or the form is not signed by a grantee official authorized to approve CDBG drawdowns in IDIS.) Any questions about approval should be directed to the respective field office. 3) The Field Office CPD designee will forward the approved drawdown request by e-mail to the designated person in CFO Accounting (see Note below) for processing. The designated person in the Entitlement Communities Division must be copied on the e-mail. [Note: As of the date of this memorandum, the persons in HUD Headquarters designated to receive the e-mail (with attachment) requesting payment:
Send to –Tomas E. Medina, ([email protected]) CFO, AMAD, Monitoring and Analysis Branch
Copy – Puping Huang, ([email protected]) CPD, Entitlement Communities Division
In the future, you will be notified via e-mail of any change to either of these designees.] 4) The CFO Accounting Monitoring and Analysis Division (AMAD), Program Support Branch, will process the payment via wire transfer.
C. Reporting the Use of Excess Program Income in IDIS
Any excess program income returned in accordance with 24 CFR 570.504(b)(iii) must be used by the grantee prior to making draws from the line of credit. The use of the excess program income is to be reported in IDIS in the same manner as regular program income; the only difference between the two is the location of the accounts in which the money is held. a. Excess program income returned in accordance with the process identified above should have been receipted in IDIS at the time it was actually received. No revision should be made to the original receipt in IDIS to reflect the amount returned as excess, nor should the excess program income be receipted a second time. Once a drawdown request for returned excess program income has been submitted to HUD, processed, and the funds received by the grantee, use of the program income is reported in IDIS by simply identifying program income as the source of funds when a draw voucher is created. b. If the excess program income was not receipted in IDIS before it was returned to HUD, it should be receipted in IDIS. However, in this situation, the date of receipt in IDIS will not reflect the date the program income was actually received by the grantee; therefore, when the PR26, Financial Summary Report, is done, it will generally be necessary to make adjustments in Part IV, Public Service (PS) cap calculation, and Part V, Planning and Administration (PA) cap calculation. After being receipted in IDIS, the use of program income will be reported when a draw is created in IDIS. 314
12 VII. Questions?
Grantees with questions concerning this memorandum should direct their inquiries to their local HUD Field Office Community Planning and Development Division. HUD Field Offices should direct their questions to the following Headquarters staff as applicable:
Puping Huang at 202-708-1577 ([email protected]) for the Entitlement CDBG program
Robert Peterson at 202-708-1322 ([email protected]) for the State, Nonentitlement Hawaii Counties and Insular Areas CDBG programs 315
City of Lynwood
HOME Policies and Procedures
Appendix D
Sample Income
Documentation Checklist
316
HOUSEHOLD SIZE DETERMINATION:
Adoption Papers
Household size includes all individuals residing in the unit regardless of relationship YES NO DATE COLLECTED N/A HOUSEHOLD SIZE DETERMINATION: Household size includes all individuals residing in the unit, regardless of relationship.
All household members have been included when determining household size? (Except: Foster children and individuals whose residence cannot be verified) Identification Card
Birth Certificate
School Records
Court Custody Order
Proof of full-time status (18+)
INCOME SOURCE DOCUMENTATION: All household members (18+) must Emplyer Verification
STAFF CERTIFICATION
rovide income source documentation YES NO DATE COLLECTED Income Tax Returns (2 years for self-employed individuals) Employment Income W-2s (last two (2) months)
Unemployment, Disability, Workers Compensation Documentation Social Security: Award letter, SSA verification, bank statements Child/Spousal Support: court order, agency documentation, notarized affidavits Regular Monetary Gifts or Contributions
Rental Income: Lease agreements, tax returns (Schedule E), rent receipts Public Assistance (e.g. CALWorks): Benefit letters, caseworker verification Asset Income: Bank statements (last 3 months), 1099s, investment Statements Other Income (describe below)
1)
2)
3)
DOCUMENTATION
COLLECTED:
EXCLUDED INCOME: Certain types of income are specifically excluded from the calculation of annual income under the HOME Program as outlined in 24 CFR Part 5.609(c). Describe below
INCOME CALCULATION METHODOLOGY: Staff must compute annual income using one of the following methods depending on check frequency.
Mark N/A if not applicable
MONTH 1 MONTH 2 CHECK
FREQUENCY TOTAL DATE COLLECTED
Weekly Income x 52
Bi-weekly Income x 26
Twice-a-month Income x 24
Monthly Income x12
Variable Income:
Year-to-date (YTD) Income
Bonuses (only include if predictable and recurring)
Overtime (only include if predictable and recurring)
THIRD PARTY VERIFICATION YES NO DATE COLLECTED
Confidential Information Disclosure Authorization
Verification of Employment or Benefits Forms
Third Party Company Name:
Contact Person:
NAME OF PERSON COMPLETING FORM: DATE:
N/A
N/A
1)
2)
3)
4)
5)
Household income is verified in accordance with the City of Lynwood HOME Policies and Procedures. Households must have annual gross incomes that do not exceed 80% of the Area Median Income (AMI), adjusted for household size, as published annually by HUD for the California:Los Angeles-Long Beach-Glendale, CA HUD Metro FMR Area.
https://www.hudexchange.info/programs/home/home-income-limits/
CITY OF LYNWOOD
INCOME DOCUMENTATION CHECKLIST
317
City of Lynwood
HOME Policies and Procedures
Appendix E
Sample Rehabilitation
Program Checklist
318
Monitoring HOME Program Performance
1. Are written informational materials about the program available? a. Marketing materials for prospective applicants that include a program description b. Information that describes homeowner responsibilities c. Financial information for homeowners (loan terms, assistance levels, etc.) d. Other educational materials
2. Have special conditions been established to target program assistance?
3. Is an initial screening of prospective applicants performed to determine eligibility prior to completing a full application?
4. Do program staff meet with eligible homeowners to inform them of their responsibilities under the program?
5. Do program staff involve the homeowner in the following activities? a. Initial Inspection
b. Work Write-Up/Cost Estimate
c. Soliciting Proposals for Rehabilitation
d. Construction Progress Inspections
e. Final Inspection
6. Does the program have relationships with local financial institutions? What leveI of private funding leverage is being achieved?
7. Are there procedures for notifying applicants of awards and refusals?
8. Are HOME funds used to refinance existing homeowner debt? If so, what are the procedures to ensure that homeowners' (overall housing) costs are reduced? Program Overview: Homeowner RehabilitationHOME Monitoring Checklist 4-A
The following list of questions can be used to gather initial background information and to guide interviews with program staff. Additional questions may be added to this list.
PJ Name: __________________________________________________________________________________ Subrecipient Name (if applicable):___________________________________________________________ Reviewer: __________________________________________ Date: ____________________________ 1 of
1 319
A HOME Program Model
HOME Monitoring
Checklist 4-B
Owner Name: ______________________________________ Project ID:_______________________ Reviewer: _________________________________________ Date: ____________________________ ANSWER
ARE ITEMS IN PROJECT CASE FILE? Y N NOTES
UNDERWRITING INFORMATION
1. Pre-Screening Questionnaire
2. Project Underwriting Worksheet
3. Origination Checklist
4. Project Activity Log
5. Other Underwriting Checklists
APPLICANT INFORMATION
6. Authorization to Release Information
7. Verification of Utility Expenses
(for past 12 mos.)
8. Verification of Employment/Income
9. Verification of Expenses
10. Credit Report
11. Program Application Form
12. Approval of Rehabilitation Assistance Notice
LEGAL DOCUMENTS
13. Copy of Deed
14. Title Search and/or Title Opinion
15. Closing Documents
16. Copies of Post Closing Documents
17. Written Homeowner HOME Agreement
PROPERTY INFORMATION
18. Environmental Screening Checklist
19. Appraisal/Market Analysis
20. Work Write-Up/Cost Estimate
21. Rehabilitation Contract
22. Addendum to Construction Contract
23. Sub-Contractor Agreements
24. HUD Debar/Suspension Clearance Forms
25. Lead-Based Paint Compliance Documentation
(including copies of notices, lead hazard
evaluation and clearance reports)1
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2 Documentation: Homeowner Rehabilitation Project
320
Monitoring HOME Program Performance
ANSWER
ARE ITEMS IN PROJECT CASE FILE? Y N NOTES
CONSTRUCTION MANAGEMENT
26. Initial Inspection Form
27. Pre-construction Conference Report
28. Notice to Proceed
29. Progress Inspection Reports
30. Punch List
31. Change Orders (if applicable)
32. Contractor Payment Requests
33. Subcontractors Final Lien Releases
(if applicable)
34. Contractors Final Lien Release
35. Documentation of Final Inspection
36. Receipt of Final Payment Form
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2 HOME Monitoring
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A HOME Program Model
ANSWER
QUESTIONS Y N NOTES
A. PROGRAM RECORDKEEPING
1. Based upon a review of project case files, are all
files complete with adequate documentation?
B. PARTICIPANT ELIGIBILITY
2. Do project files demonstrate full compliance with
participant eligibility requirements—income,
ownership, and principal residence?
3. Are the PJ’s HOME income limits consistently
observed?
4. Are there adequate procedures to properly
determine the income eligibility of applicants?
5. Are income verification procedures in place and
applied consistently?
6. Do all applicants certify that the property serves
as their principal residence either in the
application or elsewhere in the case file?
7. Are there adequate procedures for documenting
the applicant's ownership of the property?
(NOTE: A copy of the deed alone is not
sufficient.)
8. If the PJ has placed additional eligibility
requirements on applicants, are these
requirements non-discriminatory?
C. FINANCIAL MANAGEMENT
9. Do project files demonstrate full compliance with
eligibility requirements—property type,
minimum/maximum HOME investment,
property value?
10. During initial inspection, does the inspector
confirm that the unit qualifies as a single-family
property (1-4 units) under the program?
11. Are there adequate procedures for identifying
projects that do not meet the minimum
investment thresholds?
12. Are there adequate procedures for identifying
projects that exceed the maximum investment of
HOME funds?
13. Are after-rehabilitation value estimates
determined by qualified staff or fee appraisers?
HOME Monitoring
Checklist 4-D
1 of
4 Monitoring Summary: Homeowner Rehabilitation Program
PJ Name: __________________________________________________________________________________ Subrecipient Name (if applicable):___________________________________________________________ Reviewer: __________________________________________ Date: ____________________________ 322
Monitoring HOME Program Performance
ANSWER
QUESTIONS Y N NOTES
14. Are there adequate procedures for assessing
whether properties are located in target areas?
D. PROPERTY STANDARDS
15. Do work write-ups, inspection documentation,
and other construction documentation in the
project files demonstrate that all applicable
property standards are being observed?
16. Does the program observe recognized standards
for construction work?
17. Are there procedures to ensure that completed
work meets all applicable property standards?
18. Are there procedures to carry out required
inspections?
E. ELIGIBLE COSTS
19. Do work write-ups, proposals, and contracts in
the project files show that all costs are allowable
and any fees are reasonable?
20. Are there adequate written procedures for
evaluating construction proposals to check that
all costs are allowable?
F. CONTRACTOR SELECTION
21. If the PJ selects the contractors, is a competitive bid process used? (i.e., was there a public
invitation for bids, was an effort made to solicit
at least three bids? Were bids reviewed using
consistent criteria?)
22. Were the proposals selected cost reasonable (i.e.,
within 10 percent of the original cost estimate)?
23. Are there procedures to verify that contractors
have not been suspended or debarred from work
on projects receiving Federal funds during the
time of project work?
24. Are any contractors used that were suspended or
debarred?
25. Is a list of pre-qualified contractors maintained?
If yes:
a. Are the contractors regularly reviewed to
assure continued eligibility?
b. Are any contractors on the list currently
debarred or suspended from receiving Federal
funds?
26. Does the program involve a sufficient number of
contractors given its volume?2
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4 HOME Monitoring
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A HOME Program Model
ANSWER
QUESTIONS Y N NOTES
G. CONSTRUCTION MANAGEMENT
27. Are preconstruction conferences held with
contractors and homeowners?
28. Do construction documents show that all work
was approved, completed, and inspected prior to
payment?
29. Does a spot-check of project files indicate that
the HOME minimum and maximum limits have
been applied properly?
H. INCOME VERIFICATION
29. Do files contain evidence that regular inspections
of projects were completed to assess the progress
of rehabilitation work?
30. Are procedures for construction management
adequate? (e.g., construction delays and canceled
projects not excessive)
31. Is a contingency incorporated in the construction
contract?
32. Is there a retainage (holdback) for each payment?
33. Is there a system for reviewing requests for
change orders?
34. Are properly executed change orders used?
35. Does someone other than the person doing the
inspection authorize all change orders? (if
applicable)
36. Do any HOME funds need to be repaid due to
ineligible expenses?
37. Are there arbitration/grievance procedures to
resolve disputes between the contractor and PJ?
38. Are there adequate procedures for resolving
disputes between the contractor and the
homeowner?
39. Are final payments made only after all work is
completed?
40. Are there adequate construction contract close-
out procedures, including:
a.
final invoice?
b. statements from all subcontractors on the
project?
c. contractor non-kickback certificate?
d. waivers of liens releasing the project from lien
action?
e. certificate of final completion?
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Monitoring HOME Program Performance
ANSWER
QUESTIONS Y N NOTES
H. LOAN PROCESSING AND SERVICING
41. Are the loans being made under the PJs program
consistent with its objectives and local needs?
42. Did homeowner sign all loan agreements?
43. If the loans were used for refinancing, did the
project files document that the household's
overall housing costs were reduced?
44. If any significant event occurred, such as
foreclosure or retirement of debt, were these
events recorded in the project files?
45. Were all loan instruments properly executed and
recorded?
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City of Lynwood
HOME Policies and Procedures
Appendix F
CHDO Board Self
Certification
326
CHDO BOARD CERTIFICATION
FORM
Agency and Board Composition
Agency:
Date of Incorporation:
Contact Person:
Contact Phone
SAM Unique Entity
Identification (UEI) Number:
EIN Number:
IRS Tax Status:
Service Area:
Board Composition
NAME Board Position Low Income
Representative?
Legal Status
A. Nonprofit that is organized under state or local laws.
B. No part of earnings benefits any member, founder, contributor or individual.
C. Has among its purposed the provision of decent housing that is affordable to low and moderate-income individuals.
D. Has a tax-exempt ruling from the IRS under section 501 (c) of the IRS code.
Signature Print Name Title Date
327
BOARD MEMBER INFORMATION
As a board member of a designated Community Housing Development Organization (CHDO), please provide the following information.
BOARD MEMBER NAME:
HOME ADDRESS:
PHONE:
OCCUPATION:
PLEASE CHECK ALL OF THE FOLLOWING THAT APPLY TO YOU:
( ) I am a resident of a low-income neighborhood. (This does not mean that you must qualify for low-income status, only that your residence is located in a low-income neighborhood.) ( ) I am a low-income resident of the community. (Community is defined as: neighborhood, city, county, or metropolitan area.)
( ) I am an elected representative of a low-income neighborhood organization. (Low income organizations are composed primarily of residents of a low-income neighborhood.
Examples of such organizations are: block groups, town watch organizations, civic associations, neighborhood church groups, etc.)
( ) I am a representative of the public sector. (A public sector representative is any elected public official, any appointed public official, any public/government employee of a public agency or department, or any individual who is appointed by a public official to serve on a CHDO board.)
I certify that the information is true and correct.
Board Member
Signature
r Print Full Name Title Date
328
*HUD income limits are published annually
Family
Size
Total Annual
Family Income
is
Above
Total Annual
Family Income is
at or
Below
2025 HUD Income Limits
for Los Angeles-Long
Beach-Glendale CA Area*
1 $84,850
2 $96,950
3 $109,050
4 $121,150
5 $130,850
6 $140,550
7 $150,250
8 $159,950
329
City of Lynwood
HOME Policies and Procedures
Appendix G
NSPIRE Checklist
330
Correction Timeframe (P/F)
Life-Threatening - 24 Hours (Fail)
Severe - 30 Days (Fail)
*Affirmative Habitability Requirement per 24 CFR 5.703(d) and NSPIRE Final Rule Moderate - 30 Days (Fail) Mark all that apply: Low - N/A (Pass)
Defi ciency Description Unit Inside Outside Inspector Comments Address and Signage Address, signage, or building identification codes are broken, illegible, or not visible. M Only 1 bathtub or shower is present and it is inoperable or does not drain. SL A bathtub or shower is inoperable or does not drain and at least 1 bathtub or shower is present elsewhere that is operational. ML
Bathtub component or shower component is damaged, inoperable, or missing such that it may limit the resident's ability to maintain personal hygiene. ML
Bathtub component or shower component is damaged, inoperable, or missing and it does not limit the resident's ability to maintain personal hygiene. L
Bathtub or shower cannot be used in private.* *M M
Food storage space is not present.* *M
Storage component is damaged, inoperable, or missing. ML System is blocked, or pull cord is higher than 6 inches off the floor. LT LT System does not function properly. LT LT
Carbon monoxide alarm is missing, not installed, or not installed in a proper location.* LT Carbon monoxide alarm is obstructed. LT LT
Carbon monoxide alarm does not produce an audio or visual alarm when tested. LT LT Ceiling has an unstable surface. MM
Ceiling has a hole. MM
Ceiling component(s) is not functionally adequate. SS
A visually accessible chimney, flue, or firebox connected to a fireplace or wood-burning appliance is incomplete or damaged such that it may not safely contain fire and convey smoke and combustion gases to the exterior.
LT LT LT
Chimney exhibits signs of structural failure. LT
Inspector:
Type of Inspection:
Carbon Monoxide
Ceiling
Housing Type:
Year Constructed: Date of Inspection:
Cabinet and Storage
Summary Decision on Unit (Pass/Fail):
LT
Chimney
Bathtub and Shower
M
Health & Safety Designation
NSPIRE HCV
Area
/PBV INSPECTION CHECKLIST
PHA:
Family Identifier:
Any children under 6 reside or expected to reside in the unit? (Y/N):
Address of Unit:
Owner:
Call-For-Aid System
Owner Contact Information:
Number of Bedrooms:
L
S
331
Area Deficiency Description Unit Inside Outside Inspector Comments Electric dryer transition duct is detached or missing. LT LT Gas dryer transition duct is detached or missing. LT LT Electric dryer exhaust ventilation system has restricted airflow. LT LT LT Dryer transition duct is constructed of unsuitable material. LT LT Gas dryer exhaust ventilation system has restricted airflow. LT LT LT Exterior dryer vent cover, cap, or a component thereof is missing. L Cooking range, cooktop, or oven does not ignite or produce heat. SL Cooking range, cooktop, or oven component is damaged or missing such that the device is unsafe for use. MM Primary cooking appliance is missing.* *M
A microwave is the primary cooking appliance and it is damaged. S A burner does not produce heat, but at least 1 other burner is present on the cooking range or cooktop and does produce heat. MM
Entry door will not open. MM
Entry door will not close. SM
Entry door self-closing mechanism is damaged, inoperable, or missing. SM Hole, split, or crack that penetrates completely through entry door. MM Entry door is missing. LT S
Entry door surface is delaminated or separated. MM
Entry door frame, threshold, or trim is damaged or missing. MM Entry door seal, gasket, or stripping is damaged, inoperable, or missing. MM Entry door component is damaged, inoperable, or missing and it does not limit the door’s ability to provide privacy or protection from weather or infestation. LL Entry door cannot be secured. SM
Fire labeled door does not open. SS
Fire labeled door does not close and latch or the self-closing hardware is damaged or missing such that the door does not self-close and latch. SS
Fire labeled door assembly has a hole of any size or is damaged such that its integrity may be compromised. SS
Fire labeled door seal or gasket is damaged or missing. SS An object is present that may prevent the fire labeled door from closing and latching or self-closing and latching. SS
Fire labeled door cannot be secured. SM
Fire labeled door is missing. LT LT
A passage door does not open. MM
A passage door component is damaged, inoperable, or missing and the door is not functionally adequate. LL A door that is not intended to permit access between rooms has a damaged, inoperable, or missing L An exterior door component is damaged, inoperable, or missing. M Door - Fire
Door - General
Clothes Dryer Exhaust
Ventilation
Door - Entry
Cooking Appliance
332
Area Deficiency Description Unit Inside Outside Inspector Comments Drain Drain is fully blocked. MMM
Obstructed means of egress. LT LT LT
Sleeping room is located on the 3rd floor or below and has an obstructed rescue opening. LT Fire escape access is obstructed. LT
Outlet or switch is damaged. LT LT LT
Testing indicates a three-pronged outlet is not properly wired or grounded. SSS Outlet does not have visible damage and testing indicates it is not energized. SSS Exposed electrical conductor. LT LT LT
Water is currently in contact with an electrical conductor. LT LT GFCI outlet or GFCI breaker is not visibly damaged and the test or reset button is inoperable. SSS AFCI outlet or AFCI breaker is not visibly damaged and the test or reset button is inoperable. SSS An unprotected outlet is present within six feet of a water source.* *S *S *S Electrical service panel is not readily accessible. MMM The overcurrent protection device is damaged. LT LT LT
The overcurrent protection device is contaminated. SSS
Elevator is inoperable. M
Elevator door does not fully open and close. M
Elevator cab is not level with the floor. M
Safety edge device has malfunctioned or is inoperable. M Exit Sign Exit sign is damaged, missing, obstructed, or not adequately illuminated. LT LT Fence component is missing. M
Gate does not open, close, latch, or lock. M
Fence demonstrates signs of collapse. M
Fire Escape Fire escape component is damaged or missing. LT Fire extinguisher pressure gauge reads over or under-charged. LT LT LT Fire extinguisher service tag is missing, illegible, or expired. LT LT LT Fire extinguisher is damaged or missing. LT LT LT
Flammable and
Combustible Item
Flammable or combustible item is on or within 3 feet of an appliance that provides heat for thermal comfort or a fuel-burning water heater.
OR
Improperly stored chemicals.
LT LT LT
Floor substrate is exposed. MM
Floor component(s) is not functionally adequate. MM
Food preparation area is not present.* *M
Food preparation area is damaged or is not functionally adequate. MM Elevator
Fence and Gate
Egress
Fire Extinguisher
Food Preparation
Floor
Electrical - Service
Panel
Electrical - Conductor,
Outlet, and Switch
Electrical - GFCI/AFCI
333
Area Deficiency Description Unit Inside Outside Inspector Comments Foundation is cracked. MMM
Foundation has exposed rebar or foundation is spalling, flaking, or chipping. MMM Foundation is infiltrated by water. MM
Foundation support post, column, beam, or girder is damaged. MMM Foundation vent cover is missing or damaged. M
Garage door has a hole. MMM
Garage door does not open, close, or remain open or closed. MMM Grab bar is not secure. MM
*LT *LT *LT
Guardrail is not functionally adequate. LT LT LT
Handrail is missing. MMM
Handrail is not secure. MMM
Handrail is not functionally adequate. MMM
Handrail is not installed where required. LL
The inspection date is on or between October 1 and March 31 and the permanently installed heating source is not working or the permanently installed heating source is working and the interior temperature is below 64 degrees Fahrenheit.*
*LT
The inspection date is on or between October 1 and March 31 and the permanently installed heating source is working and the interior temperature is 64 to 67.9 degrees Fahrenheit.* *S Air conditioning system or device is not operational. ML Unvented space heater that burns gas, oil, or kerosene is present.* *LT *LT Combustion chamber cover or gas shutoff valve is missing from a fuel burning heating appliance. LT LT Heating system or device safety shield is damaged or missing. SS The inspection date is on or between April 1 and September 30 and a permanently installed heating source is damaged, inoperable, missing, or not installed.* *M *M Fuel burning heating system or device exhaust vent is misaligned, blocked, disconnected, improperly connected, damaged, or missing. LT LT LT
The inspection date is on or between October 1 and March 31 and the permanently installed heating source is inoperable. M
Evidence of cockroaches. MM
Extensive cockroach infestation. SM
Evidence of bedbugs. MM
Extensive bedbug infestation. SM
Evidence of mice. MM
Extensive mouse infestation. SM
Evidence of rats. MMM
Extensive rat infestation. SS
Evidence of other pests. MM
Infestation
Foundation
Garage Door
Handrail
HVAC
Guardrail is missing or not installed.*
Guardrail
Grab bar
334
Area Deficiency Description Unit Inside Outside Inspector Comments Leak - Gas/Oil Natural gas, propane, or oil leak. LT LT LT Blocked sewage system. SSS
Leak in sewage system. SSS
Cap to the cleanout or pump cover is detached or missing. MMM Cleanout cap or riser is damaged. MMM
Environmental water intrusion. MM
Plumbing leak. MM L
Fluid is leaking from the sprinkler assembly. MM L
Lighting - Auxiliary Auxiliary lighting is damaged, missing, or fails to illuminate when tested. SS Lighting - Exterior A permanently installed light fixture is damaged, inoperable, missing, or not secure. M A permanently installed light fixture is inoperable. MM A permanently installed light fixture is not secure. MM At least one (1) permanently installed light fixture is not present in the kitchen and bathroom.* *M *M Litter Litter is accumulated in an undesignated area. ML Minimum Electrical
and Lighting
At least two (2) working outlets are not present within each habitable room. OR At least one (1) working outlet and one (1) permanently installed light fixture is not present within each habitable room.* *M Presence of mold-like substance at moderate levels is observed visually. ML Presence of mold-like substance at high levels is observed visually. SM Presence of mold-like substance at extremely high levels is observed visually. LT S Elevated moisture level. ML
Parking lot has any one pothole that is 4 inches deep and 1 square foot or greater. M Parking lot has ponding. M
Paint in a Unit or Inside the target property is deteriorated – below the level required for lead-safe work practices by a lead-certified firm or for passing clearance. MM Paint in a Unit or Inside the target property is deteriorated – above the level required for lead-safe work practices by a lead-certified firm and passing clearance. SS Paint Outside on a target property is deteriorated – below the level required for lead-safe work practices by a lead-certified firm or for passing clearance. M
Paint Outside on a target property is deteriorated – above the level required for lead-safe work practices by a lead-certified firm and passing clearance. S
Road or driveway access to the property is blocked or impassable for vehicles. S Road or driveway has any one pothole that is 4 inches deep and 1 square foot or greater. M Refrigerator is inoperable such that it may be unable to safely and adequately store food. MM Refrigerator component is damaged such that it impacts functionality. MM Refrigerator is missing.* *M
Parking Lot
Private Roads and
Driveways
Refrigerator
Potential Lead-Based
Paint Hazards - Visual
Assessment
Leak - Sewage
Leak - Water
Lighting - Interior
Mold-Like Substance
335
Area Deficiency Description Unit Inside Outside Inspector Comments Retaining wall is leaning away from the fill side. M
Retaining wall is partially or completely collapsed. M
Restricted flow of water from a roof drain, gutter, or downspout. M Gutter component is damaged, missing, or unfixed. M
Roof surface has standing water. M
Substrate is exposed. M
Roof assembly has a hole. M
Roof assembly is damaged. M
Sharp Edges A sharp edge that can result in a cut or puncture hazard is present. SSS Sidewalk, walkway, or ramp is blocked or impassable. M
Sidewalk, walkway, or ramp is not functionally adequate. M Sink or sink component is damaged or missing and the sink is not functionally adequate. ML Water is directed outside of the basin. LL
Sink is not draining. MM
Sink is improperly installed, pulling away from the wall, leaning, or there are gaps between the sink and wall. MM
Sink component is damaged or missing and the sink is functionally adequate. LL Cannot activate or deactivate hot and cold water.* *M M Sink is missing or not installed within the primary kitchen.* *M Water runoff is unable to flow through the site drainage system. L Erosion is present. L
Grate is not secure or does not cover the site drainage system’s collection point. M Smoke alarm is not installed where required.* *LT *LT
Smoke alarm is obstructed. LT LT
Smoke alarm does not produce an audio or visual alarm when tested. LT LT Sprinkler head assembly is encased or obstructed by an item or object that is within 18 inches of the sprinkler head. LT LT LT
Sprinkler assembly component is damaged, inoperable, or missing and it is detrimental to performance. LT LT Sprinkler assembly has evidence of corrosion. LT LT LT
Sprinkler assembly has evidence of foreign material that is detrimental to performance. LT LT LT Tread is missing or damaged. MMM
Stringer is damaged. MMM
Steps and Stairs Step or stair is not functionally adequate. M Structure Structural system exhibits signs of serious failure. LT LT LT Stairs
Sprinkler Assembly
Sidewalk, Walkway,
Ramp
Sink
Site Drainage
Smoke Alarm
Retaining Wall
Roof Assembly
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Area Deficiency Description Unit Inside Outside Inspector Comments Only 1 toilet was installed, and it is missing. LT M
A toilet is missing and at least 1 toilet is installed elsewhere that is operational. MM Only 1 toilet was installed, and it is damaged or inoperable. SM A toilet is damaged or inoperable and at least 1 toilet is installed elsewhere that is operational. MM Toilet component is damaged, inoperable, or missing such that it may limit the resident’s ability to safely discharge human waste. MM
Toilet is not secured at the base. MM
Toilet component is damaged, inoperable, or missing and it does not limit the resident’s ability to discharge human waste. LL
Toilet cannot be used in private.* *M M
Chute door does not open or self-close and latch. M
Chute is clogged. M
Trip Hazard Trip hazard on walking surface. MMM
Exhaust system does not respond to the control switch. MM Exhaust system has restricted airflow. MM
Exhaust system component is damaged or missing. MM
Bathroom does not have proper ventilation or dehumidification. MM Exterior wall covering has missing sections of at least 1 square foot per wall. M Exterior wall has peeling paint of 10 square feet or more. M Exterior wall component(s) is not functionally adequate. M Interior wall has a loose or detached surface covering. MM Interior wall component(s) is not functionally adequate. MM Interior wall has a hole that is greater than 2 inches in diameter or there is an accumulation of holes that are cumulatively greater than 6 inches by 6 inches. MM
Temperature pressure relief (TPR) valve has an active leak or is obstructed or relief valve discharge piping is damaged, capped, has an upward slope, or is constructed of unsuitable material. SSS No hot water. SL
The relief valve discharge piping is missing or terminates greater than 6 inches or less than 2 inches from waste receptor flood-level. MMM
Chimney or flue piping is blocked, misaligned, or missing. LT LT LT Gas shutoff valve is damaged, missing, or not installed. LT LT LT Window will not open or stay open. ML
Window cannot be secured. ML
Window will not close. SM
Window component is damaged or missing and the window is not functionally adequate. MM Trash Chute
Toi
let
Water Heater
Window
Wall - Exterior
Wall - Interior
Ventilation
Burden Statement: The purpose of this information collection is to strengthen the U.S. Department of Housing and Urban Development (HUD)’s physical condition standards and improve HUD’s oversight of housing pursuant to the National Standards for the Physical Inspection of Real Estate (NSPIRE) inspection regulations, requirements, and procedures. The information collected on this optional checklist form will be used by Public Housing Agencies (PHAs) to determine if a housing unit meets NSPIRE Standards for the Housing Choice Voucher (HCV) and Project Based Voucher (PBV) programs. This is a voluntary form and not required for use. Additionally, assurances of confidentiality are not provided under this collection. The public reporting burden for this collection of information is estimated to average 1 hour per response , including the time for reviewing instructions, searching existing data sources, gathering, and maintaining the data needed, and completing and reviewing the collection of information.
Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions to reduce this burden, to the Office of Policy and Partnerships, Real Estate Assessment Center, Office of Public and Indian Housing, Department of Housing and Urban Development, 550 12th Street SW, Suite 100, Washington, DC 20410‐4000. HUD may not conduct and sponsor, and a person is not required to respond to, a collection of information unless the collection displays a valid control number. 337
City of Lynwood
HOME Policies and Procedures
Appendix H
Sample Monitoring Letter
338
Community Development Department
11330 Bullis Road, Lynwood, CA 90262
(310) 603 - 0220
�
[DATE]
Attn: [NAME OF RENTAL PROJECT]
[ADDRESS]
RE: HOME Investment Partnerships Program (HOME)
Annual Monitoring – [ADDRESS]; [YEAR UNDER REVIEW]
Dear Property Manager:
The City of Lynwood provided a HOME loan to [PROPERTY MANAGEMENT]. As part of the agreement, HOME units must be monitored by the City as required by the U.S. Department of Housing and Urban Development (HUD).
The desk monitoring will include a review of financial documentation, record keeping, organization, and tenant files.
The on-site inspections include a general assessment of the HOME assisted units to ensure all units comply and maintain the applicable property standards.
The City has scheduled an on-site visit for [DATE]. Staff will arrive for an introductory meeting to discuss the purpose and scope of the visit and begin unit inspections by [TIME]. Please be sure to provide adequate written notice to all HOME-assisted tenants that their unit will be inspected. City staff should be accompanied by a property manager/staff person to answer questions and provide access into the selected units.
Three types of files should be maintained for HOME-funded rental projects:
1) Financial/Administrative File;
2) Property Maintenance File; and
3) Tenant Files for HOME-assisted units.
In order for your agency to prepare for the annual review, the following list of items should be available for review during the monitoring.
1. FINANCIAL
1.1 A copy of current year’s budget
1.2 1.3
A copy of most current independent Financial Audit
General Ledgers and Financial Statements from [DATES]
2. INCOME, RENT AND OCCUPANCY REQUIREMENTS
2 Completed HOME Rental Compliance Report
2 Source documentation to verify tenant income eligibility at initial lease up 2 Verification that Project Manager recertifies tenant incomes annually
SAMPLE MONITORING LETTER
339
2 Rent structure that meet HOME requirements (Low or High Home rents) 2 Verification that utility allowances are deducted from the HOME rent (applicable where tenant pays utilities)
2 If a unit is occupied by Housing Choice V oucher (HCV)/Section 8, that the rent charged does not exceed the allowable HOME rent
2 If any tenant has become over-income (above 80% of AMI), that the correct rent is being charged. 2 If the project has five (5) or more HOME-assisted units, 20% of those units are being occupied by tenants below 50% of are median income.
2 That leases and addendums are free of prohibited provisions
3. RECORD KEEPING
3 Policies and procedures for marketing and lease-up of units 3 Copy of unit applications
3 Copy of lease
3 Copy of documents used to verify income, project rents, and unit inspections retained throughout the affordability period
3 Affirmative Marketing
3 Asset Management
3 Lead Based paint (if applicable)
Please contact [CONTACT NAME] by email at [EMAIL] or by phone at [PHONE] regarding the monitoring review and on-site inspections.
Sincerely,
[NAME]
[TITLE]
Enclosures: HOME Rental Project Compliance Report
A copy of this letter will be delivered to your organization via U.S. mail and e-mail. 340
CHART 3
HOME RENTAL PROJECT COMPLIANCE REPORT
Project: ________________________________ Date: ________________ Address: _______________________________ Reporting Period: ____________________ No. of Units: __________ No. of HOME Units: __________
Low HOME Rent Units: __________
High HOME Rent Units: __________
A B D E F G H I J L M
Unit #
No. of
Bedrooms
C Low or
High HOME
Rent Unit
Designation Tenant Name
Household
Size
Annual
(Gross)
Income
Low or
Very-Low
Income (L or
VL)
Date of Last
Income
Re-Examination
Low or
High HOME
Rent
Utility
Allowance
K
Maximum
Actual
Rent (H-I)
Unit in
Compliance?
(Y or N) Comments
341
City of Lynwood
HOME Policies and Procedures
Appendix I
Sample Monitoring Report
Letter / Close-out Letter
342
Community Development Department
11220 Bullis Road, Lynwood, CA 90262
www.lynwoodca.gov
(310) 603-0220
[DATE]
Attn: [NAME OF RENTAL PROJECT]
[ADDRESS]
RE: HOME Investment Partnerships Program (HOME)
Annual Monitoring – [ADDRESS]; [YEAR UNDER REVIEW]
Dear Property Manager,
The City of Lynwood Community Development Department enlisted the services of [HOME PROGRAM CONSULTANT]. to conduct on-site unit inspections and monitoring for various locations owned by [PROPERTY OWNER/MANAGEMENT]. The monitoring consisted of a review for tenant, financial, and administrative files, and HOME unit inspections. The purpose of the monitoring visit was to determine whether the HOME-assisted rental properties are in compliance with applicable U.S. Department of Housing and Urban Development (HUD) regulations and requirements.
As a result of this monitoring, we have outlined the following findings, concerns and/or observations. A finding is defined as a program element that does not comply with a federal statute or regulation that must be addressed immediately, a concern is either a potential finding or a program weakness that should be improved to avoid future problems, an observation are comments about areas that can be improved, these are not a violation in terms of compliance but have the potential to affect program performance.
Summary of Results and Conclusions:
This section of the report specifically details the results of the HOME monitoring and inspection reviews and contains [X] Finding, [X] Concerns, and [X] Observations.
CONCERN OR FINDING #
x PROVIDE SUMMARY OF CONCERN OR FINDING (Provide photographs or evidence of concern/finding)
Recommended Action:
x PROVIDE SUMMARY OF RECOMMENDED ACTION TO REMEDY CONCERN OR FINDING.
Please provide all above referenced documentation within [X] calendar days from the date of the City’s issuance of its notice.
All documentation can be emailed directly to [NAME], [TITLE]; [CONTACT INFORMATION], or uploaded to the shared Dropbox folder.
SAMPLE REPORT LETTER
343
Community Development Department
11220 Bullis Road, Lynwood, CA 90262
www.lynwoodca.gov
(310) 603-0220
[DATE]
Attn: [NAME OF RENTAL PROJECT]
[ADDRESS]
RE: HOME Investment Partnerships Program (HOME)
Annual Monitoring – [ADDRESS]; [YEAR UNDER REVIEW]
Dear Property Manager:
The City of Lynwood (“City”) conducted an on-site unit inspection and monitoring of the HOME program to assess your organization’s performance and compliance with applicable Federal program regulations and requirements. A monitoring report letter was sent on [DATE], that provided details of our review and outlined [# of findings, concerns, observations].
A finding is defined as a program element that does not comply with a federal statute or regulation that must be addressed immediately, a concern is either a potential finding or a program weakness that should be improved to avoid future problems, observations are comments about areas that can be improved, these are not a violation in terms of compliance but have the potential to affect program performance. A response was not required for concerns and observations.
The purpose of this letter is to close the HOME monitoring for [PROPERTY] at [ADDRESS] which consisted of tenant file reviews and unit inspections for the years [YEAR UNDER REVIEW]. The findings, concerns and/or observations are detailed below:
Finding #1:
[OUTLINE FINDING]
Response:
[OUTLINE RESPONSE]
This concludes HOME Monitoring for [PROPERTY]. I would like to thank you and your staff for your professionalism and cooperation during the review.
Sincerely,
[NAME]
[TITLE]
SAMPLE CLOSE OUT LETTER
344
Community Development Department
11220 Bullis Road, Lynwood, CA 90262
www.lynwoodca.gov
(310) 603-0220
[DATE]
Attn: [NAME OF RENTAL PROJECT]
[ADDRESS]
RE: HOME Investment Partnerships Program (HOME)
Annual Monitoring – [ADDRESS]; [YEAR UNDER REVIEW]
Dear Property Manager:
The City of Lynwood (“City”) conducted an on-site unit inspection and desk monitoring of the HOME program to assess your organization’s performance and compliance with applicable Federal program regulations and requirements. A monitoring report letter was sent on [DATE], that provided details of our review and outlined (X) finding, (X) concern, and (X) observations.
During monitoring, it was found that [FINDINGS]. As a corrective action, Property Management was required to [CORRECTION].
The response provided by [Property Manager Name] demonstrates that tenants at [ADDRESS] have [ENTER DESCRIPTION].
Based on the evidence obtained during our review, the City has determined that [NAME OF PROPERTY MANAGERS] is in noncompliance in accordance with [CFR]. Please be aware that Noncompliance with HOME requirements can result in the repayment of HOME funds to HUD.
To remedy this noncompliance, [NAME] will have to meet the following:
Please be advised that this concludes monitoring for [ADDRESS]. HUD reserves the right to audit at their own discretion. I would like to thank you and your staff for your professionalism and cooperation during the review.
The assistance provided by the management staff throughout the monitoring was a valuable contribution.
Please contact [CITY CONTACT] by email at [EMAIL] or [HOME PROGRAM CONSULTANT] at [EMAIL] if you have any questions.
Sincerely,
[NAME]
[TITLE]
SAMPLE NON-COMPLIANT LETTER
345
City of Lynwood
HOME Policies and Procedures
Appendix J
City of Lynwood Personnel
346
HOME Program Administrative Organizational Chart
City of Lynwood
City Manager
Community Development Department Finance & Administration Department
Housing and Grant Programs
Administrative Analyst II
Finance Director
Finance Analyst
HOME Program Consultant
Community Development Director
Housing Inspector
Suja Lowenthal
[email protected]
Harry Wong
[email protected]
Suzanne Trejo
[email protected]
Chanthavy Wise
[email protected]
Avant Garde, Inc.
Program Director: Tina Roseberry
[email protected]
Avant Garde, Inc.
Program Manager: Ishah Ahumada
Isha [email protected]
Avant Garde, Inc.
Housing Specialist: Maria Lennox
[email protected]
Vacant Position
City of Lywood
Community Development Department
Housing Division
11330 Bullis Rd.
Lynwood, CA 90262
(310) 603-0220
347
City of Lynwood
HOME Policies and Procedures
Appendix K
BABA Checklist
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The BAP establishes a
domestic preference for
construction materials.
For more information:
hudexchange.info
Build America, Buy America Act:
Buy America Preference
Overview for CPD Programs
What is the Buy America Preference?
The Build America, Buy America Act (BABA) requires that all iron, steel, manufactured products, and construction materials used for federally funded infrastructure projects are produced in the United States, unless otherwise exempt or subject to an approved waiver. This requirement is known as the “Buy America Preference (BAP)” and the specific requirements are codified in 2 CFR § 184.
QUICK GUIDE
This BABA CPD Overview Quick Guide provides
grantees with the following details about the BAP:
• Products Covered by the BAP
• BAP Applicability to CPD-funded Projects and Activities • When the BAP Doesn’t Apply
• BAP Implementation Timeline for CPD Programs
• Project/Product-Specific Waivers
• Project Implementation and Recordkeeping
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Build America, Buy America Act BABA CPD Overview Quick Guide - 2 -
Photo by Scott Webb on Pexels
Products covered under the BAP include:
1. Iron and steel
2. Construction materials
3. Manufactured products
Products should be classified into just one of these
categories. The classification must be made based on the product’s status when brought to the work site.
Products Covered by the BAP
Grantees are encouraged to work closely with
subrecipients, developers, and contractors to ensure
that products used in federally funded infrastructure
projects are produced in the United States as
required. Federal financial assistance includes grants, cooperative agreements, non-cash contributions
or donations, direct assistance, loans and loan
guarantees, and other financial assistance.
Iron and Steel
What is it?
Items that consist completely or predominantly of iron, steel, or a combination of both. “Predominantly” means the cost of the iron and steel content exceeds 50% of the total cost of all the item’s components.
Production Requirements
All manufacturing processes, starting from the initial melting stage and continuing through the application of coatings, must occur in the United States.
Construction Materials
What is it?
Articles, materials, or supplies used for construction activities that consist of only one of the items described below. For the purposes of the HUD Phased Implementation Waiver timeline described below, construction materials are divided into two categories: specifically listed construction materials and not listed construction materials.
Specifically Listed Construction Materials: Items include (1) non-ferrous metals; (2) lumber; and (3) plastic- and polymer- based composite building materials, pipe, and tube.
Not Listed Construction Materials: Items include (1) all other plastic- and polymer-based materials (such as polymers used in fiber optic cables), (2) glass, (3) fiber optic cable, (4) optical fiber, (5) engineered wood, and (6) drywall.
Construction Material Standards (2 CFR 184.6)
All manufacturing processes for the construction material must occur in the United States.
Minor additions of materials, supplies,
or binding agents to a construction
material (such as the binding agent
used in engineered wood) do not
change the categorization of the
construction material.
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Build America, Buy America Act BABA CPD Overview Quick Guide - 3 -
Photo by Pixabayon Pexels
Photo by Marissa Daeger on Unsplash
Photo by Freepik
What is it?
Manufactured products include articles, materials, or
supplies that have either been:
1. Processed into a specific form or shape, or
2. Combined with other articles, materials, or supplies to create a product with different properties than the
individual articles, materials, or supplies.
A manufactured product may include components that are
construction materials or iron and steel products, unless the manufactured product also meets the definition of iron and steel or construction materials. In such instances, the product should be recategorized in the appropriate category.
Determining the Cost of Components for
Manufactured Products (2 CFR 184.5)
Manufactured products must meet two production
requirements. First, the final product must be manufactured in the United States. Second, at least 55% of the cost of the components making up the manufactured product must be
associated with components that were mined, produced, or manufactured in the United States.
What materials and activities aren’t covered by the BAP? Manufactured Products1
1 Cement and cementitious materials; aggregates such as stone, sand, or gravel; or aggregate binding agents or additives (collectively known as Section 70917(c) materials) are generally exempt from the BAP . However, Section 70917(c) materials may be used to produce a manufactured product, such as pre-cast concrete. Manufactured products that incorporate Section 70917(c) components are subject to the BAP .
1. Temporary products and materials that are
removed at or before project completion, such as
temporary scaffolding, equipment, or tools
2. Equipment and furnishings such as movable
chairs, desks, and portable computer equipment,
that are used at or within the finished
infrastructure project but are not an integral part
of or permanently affixed to the structure
3. Technical assistance and management costs
4. Design and planning costs, project scoping,
or advance assistance. However, domestic
preferences must be considered in planning to
ensure compliance for construction projects e.g.,
design-build contracts
5. Acquisition and demolition projects where there
are no articles, materials, or supplies that are
incorporated into an infrastructure project
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Build America, Buy America Act BABA CPD Overview Quick Guide - 4 -
Photo by Pixaby on Pexels
CPD-funded infrastructure projects, as broadly defined by 2 CFR 184, are subject to the BAP once the obligation date has passed according to HUD’s Phased Implementation Waiver (see section below), unless the project is covered by another general waiver. For the purposes of the BAP , an infrastructure project is defined as any project that includes construction, alteration, maintenance, or repair of infrastructure regardless of whether infrastructure is the primary purpose of the project.
BAP Applicability to CPD-funded Projects and Activities Examples of CPD-funded activities
that may be subject to the BAP:
Examples of CPD-funded activities
that may NOT be subject to the BAP:
• Rehabilitation of buildings and real property
• Construction of public facilities and improvements,
such as water and sewer facilities, streets,
sidewalks, neighborhood centers, and the
conversion of buildings for eligible purposes
• Utility installation or improvements
• Water systems (drinking water and wastewater)
• Electrical transmission facilities and systems
• Broadband infrastructure
• Transportation infrastructure
• Acquisition of real property
• Relocation and demolition
• Public services
• Shelter or public facility operating expenses
• Supportive services
• Short-term payments to prevent homelessness
• Special economic development activities
• Administrative activities
• Disaster and emergency response
Projects that exclusively use CDBG-DR, CDBG-MIT , CDBG-CV, ESG-CV, and/or HOPWA-CV funding are not subject to the BAP because funds for disaster and emergency purposes are exempt from the BAP .
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Build America, Buy America Act BABA CPD Overview Quick Guide - 5 -
In addition to the Phased Implementation Waiver described in the section below, HUD has approved three Department-wide public interest general waivers for BAP applicability. If all the conditions for a general waiver are met, the BAP requirements may be waived for that project, or a portion of the materials used in a project.
CPD grantees can employ these waivers without the need
for a formal request to HUD and should maintain records to substantiate the waiver’s application to a project. For example, a grantee may write a memo to the project file documenting how it determined that a general waiver applied to a
specific project.
When the BAP Doesn’t Apply
HUD General
Waivers What is it? Examples
Exigent
Circumstances
This public interest general waiver
is effective through November 23,
2027 , for projects that must be
completed immediately to protect
life, ensure safety, or prevent the
destruction of property
A HOME-funded multi-family rental development is
damaged by a burst hot water pipe in the middle of
winter. Repairs to the damaged structure must be
completed immediately to protect the life, safety, and
property of the residents of the housing development.
Following a tornado, CDBG funds are used to repair
public facilities made structurally unsound during the
disaster. Stabilizing these buildings is critical to prevent further destruction of property.
De Minimis and
Small Grants
This public interest general waiver
is effective through November 23,
2027 , for projects whose total cost
(from all sources) does not exceed
the simplified acquisition threshold
value ($250,000), OR
If covered BAP materials for a
portion of the project comprise no
more than 5 percent of the total
cost of covered materials used in a
project (not to exceed $1 million),
the BAP can be waived for that
portion of the project.
A homeless service provider is rehabilitating an
emergency shelter to update bathroom facilities. The
provider is using $100,000 in ESG funding for the
project and a State grant is contributing an additional $100,000. Because the total project cost does not exceed $250,000, the BAP does not apply.
A city is using CDBG funds for construction of a
playground. The total cost of materials used in the
project is $1 million. The city can source domestic
materials for nearly all the items needed for the
playground but cannot find a domestically produced
equivalent of a particular slide. The slide costs $20,000.
Because this is less than 5% of the total cost of materials used in the project, the city can use the De Minimis
Waiver to waive the BAP for the slide. The other materials used in the project still must comply with the BAP.
Tribal Recipients The BAP does not apply for HUD
funds to Tribes, Tribally Designated
Housing Entities, and other Tribal
Entities covered by this public
interest general waiver effective
until May 23, 2024.
After receiving Tribal feedback, HUD will implement
the BAP through an approach that does not serve as
a major barrier to Tribal community efforts to develop
infrastructure. HUD’s Phased Implementation Waiver
does not apply to funds awarded to Tribes.
Pacific Island/
Territory Recipients
HUD accepted public comment
on a proposed general waiver for
Pacific Island/Territory recipients
through September 1, 2023.
HUD will consider the public comments received and
base its decision for adoption of the BAP in Pacific
Island/Territory Communities in a future general waiver published in the Federal Register.
353
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Build America, Buy America Act BABA CPD Overview Quick Guide - 6 -
The BAP will apply on or after the date
HUD obligates new funds for the following:
2022 2023 2024 2025
Nov 15, 2022
IRON AND STEEL
SPECIFICALLY LISTED
CONSTRUCTION
MATERIALS
FY24 appropriations
MANUFACTURED
PRODUCTS
FY25 appropriations
NOT LISTED
CONSTRUCTION
MATERIALS
CDBG Formula Grants
2022 2023 2024 2025
Aug 23, 2023
IRON AND STEEL
SPECIFICALLY LISTED
CONSTRUCTION
MATERIALS
FY24 appropriations
MANUFACTURED
PRODUCTS
FY25 appropriations
NOT LISTED
CONSTRUCTION
MATERIALS
Recovery Housing
Program (RHP) Grants
SPECIFICALLY LISTED CONSTRUCTION MATERIALS
MANUFACTURED PRODUCTS
NOT LISTED CONSTRUCTION MATERIALS
2022 2023 2024 2025
Feb 22, 2024
IRON AND STEEL Aug 23, 2024
All CPD programs,
except HOME and
Housing Trust Fund
SPECIFICALLY LISTED CONSTRUCTION MATERIALS
MANUFACTURED PRODUCTS
NOT LISTED CONSTRUCTION MATERIALS
2022 2023 2024 2025
IRON AND STEEL
Aug 23, 2024
All CPD Programs,
including HOME
and HTF
To facilitate a smooth transition to the BAP requirements, HUD established a Phased Implementation Waiver for its
programs based on the date when funds are obligated (i.e., typically the date when HUD executes the grant agreement).
As illustrated below, the BAP is phased both by program and the type of product (iron and steel, construction materials, and manufactured products).
BAP Implementation Timeline for CPD Programs
HUD chose to initially implement the BAP for all iron
and steel products used in CDBG infrastructure projects using funding obligated on or after November 15, 2022.
The specific focus on iron and steel in infrastructure
projects will gradually extend to encompass the full
implementation of the BAP across all HUD programs.
354
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Build America, Buy America Act BABA CPD Overview Quick Guide - 7 -
Photo by freestockcenter on Freepik
Photo by raxpixel.com on Freepik
Photo by Zohair Mirza on Unsplash
A grantee is using FY2023 CDBG funds (grant agreement
executed by HUD in September 2023) to construct a
new senior center. Because the project is using funds
obligated after November 15, 2022, the grantee must
ensure that the iron and steel used in the project complies with the BAP requirements. However, the project
does not need to comply with the BAP requirements
for construction materials or manufactured products
because the funds do not include funding obligated
from FY24 or FY25 appropriations.
Senior Center New Construction Single-Family Owner-
Occupied Rehab Program
A participating jurisdiction (P J) operates a single-family owner-occupied rehabilitation program using HOME
funds obligated after August 23, 2024. The P J determines that since the total project costs from all sources for each activity do not exceed $250,000, individual rehabilitation activities are covered by the Small Grant Waiver and do not need to comply with the BAP .
Project Examples
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Build America, Buy America Act BABA CPD Overview Quick Guide - 8 -
Project/product-specific waivers are available on a limited, case-by-case basis, after HUD’s review, a public comment period, and final approval from the Office of Management and Budget’s Made In America Office (MIAO). Project-specific waivers are generally available for three reasons:
• Public interest: Adhering to the BAP would be
inconsistent with the public interest.
• Nonavailability: Covered materials are not produced in the USA in sufficient and reasonably available quantities or of a satisfactory quality.
• Unreasonable cost: Inclusion of domestically produced covered materials will increase the cost of the overall project by more than 25 percent.
If more than one Federal agency is funding an infrastructure project, project-specific waivers will require coordination among those Federal agencies prior to a determination
by the MIAO.
Project/Product-Specific Waivers
CPD grantees engaging in infrastructure projects must comply with the BAP . Since the terms and conditions of the BAP flow down to subrecipients, the BAP language found in the “Special Conditions” section should be incorporated into all agreements, even if the BAP does not yet apply based on the phased implementation date.
Grantees may want to use activity by grant expenditure
reports to help identify which projects might be subject to BAP requirements. In some instances, grantees may need to amend existing agreements or other award documents.
The BAP requirements must be included in the terms
and conditions for subrecipient agreements, contracts,
subawards, and purchase orders for all infrastructure projects.
Grantees must maintain documentation of compliance with BAP requirements or exemption due to a waiver in accordance with program-specific recordkeeping requirements and 2 CFR § 200.334 as applicable to Federal grants.
Project Implementation and Recordkeeping
CPD grantees should retain documentation that demonstrates:
1. All the iron, steel, manufactured products, and construction materials used in infrastructure projects are produced in the United States in accordance with HUD’s Phased Implementation Waiver, or
2. The project is covered by a HUD general waiver and is therefore exempt from the BAP , or
3. A project/product-specific waiver was reviewed by HUD and approved by the MIAO. 356
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Build America, Buy America Act:
Buy America Preference
for CDBG Grantees
QUICK GUIDE
• BABA on HUD Exchange
• BABA on HUD.gov
• 2 CFR 184
• 2 CFR 200.322
• What is Build America, Buy America Factsheet (OMB)
• Made in America (OMB)
Additional Resources
This material is based upon work supported, in whole or in part, by Federal award number C-21-TA-MD-0009 awarded to Enterprise Community Partners, Inc. by the US Dept of HUD. The substance and findings of the work are dedicated to the public. Neither the United States Government, nor any of its employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately-owned rights.
Reference herein to any individuals, agencies, companies, products, process, services, service by trade name, trademark, manufacturer, or otherwise does not constitute or imply an endorsement, recommendation, or favoring by the author(s), contributor(s),the U.S. Government or any agency thereof. Opinions contained herein are those of the author(s) and do not necessarily reflect the official position of, or a position that is endorsed by, HUD or any Federal agency.
357
- - - -
-
CHECKLIST
Build America, Buy America Act:
Optional Buy America Preference
CO UNITY(BAP) Applicability Checklist PLANNING
&
DEVELOPMENT
Overview
This checklist is an optional tool that may be used or adapted to assist For more information on BABA with determining if the Buy America Preference (BAP) applies to an and the BAP , visit the BABA infrastructure project funded by a covered CPD program. This checklist follows the analysis steps as described in Notice CPD 2023-12 and may page on the HUD exchange. be retained for recordkeeping purposes.
Project Information
Grantee
Grant Number
Activity Name
Activity Number (IDIS/DRGR)
Step 1:
Is the project an infrastructure project, as defined by the BABA statute? Yes Continue to Step 2.
No The BAP does not apply. The BAP only applies to infrastructure projects. Stop here.
This material is based upon work supported, in whole or in part, by Federal award number C 21 TA MD 0009 awarded to Enterprise Community Partners, Inc. by the US Dept of HUD. The substance and findings of the work are dedicated to the public. Neither the United States Government, nor any of its employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any individuals, agencies, companies, products, process, services, service by trade name, trademark, manufacturer, or otherwise does not constitute or imply an endorsement, recommendation, or favoring by the author(s), contributor(s),the U.S. Government or any agency thereof. Opinions contained herein are those of the author(s) and do not necessarily reflect the oficial position of, or a position that is endorsed by, HUD or any Federal agency. 358
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Build America, Buy America Act Optional Buy America Preference (BAP) Applicability Checklist
Step 2:
Is the project funded using a covered CPD program? (Check the box below for each CPD program funding this project.) Group A: Covered CPD Programs
CDBG SHOP
Section 108 VHRMP
HOME CPF/EDI
HTF Section 4
RHP Rural Capacity Building
ESG PRO Housing
CoC PRICE
HOPWA FY23 PSH Funds
Group B: CPD Programs Not Covered by the BAP
CDBG-DR CDBG-CV
CDBG-MIT HOPWA-CV
CDBG-NDR ESG-CV
HOME-ARP
If you selected any Group A programs (even if Group B programs are also selected), answer yes. If you selected only Group B programs, answer no.
Yes Continue to Step 3.
No The BAP does not apply to this project because it is not funded by a covered CPD program. Stop here. - 2 - 359
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Build America, Buy America Act Optional Buy America Preference (BAP) Applicability Checklist 3 - -
Step 3:
Will the project use covered materials?
Each material should be classified into only one category: iron and steel, specifically listed construction materials, not listed construction materials, or manufactured products. This classification is necessary to apply HUD’s Phased Implementation waiver.
Check the box below for each type of covered material incorporated into this infrastructure project.
Iron or steel
Specifically Listed Construction materials
Not Listed Construction materials
Manufac
tured products
If you checked any boxes above, answer yes.
Yes Continue to Step 4.
No The BAP does not apply to this project because it will not incorporate any covered materials. Stop here. 360
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Build America, Buy America Act Optional Buy America Preference (BAP) Applicability Checklist
Step 4:
Based on the obligation date of the covered CPD program funds, does the BAP apply to the funding source and covered materials that will be used in the project? Use the phased implementation table to determine whether the BAP applies based on the obligation date for the covered CPD program funds and classification of materials. The BAP may only apply to some covered materials used in the project.
The obligation date is generally the date that HUD executed the grant agreement for covered CPD program funds to the grantee.
This date may be found in the grant agreement. The obligation date is not the date when the grantee commits funds to a project under a subrecipient agreement.
BAP will apply to… Iron and Steel Specifically Listed
Construction Materials
Not Listed
Construction Materials Manufactured Products
CDBG CDBG funds obligated
on or after 11/15/22
Projects using
FY24 CDBG funds
Projects using
FY25 CDBG funds
Projects using
FY25 CDBG funds
RHP RHP funds obligated
on or after 8/23/23
Projects using FY24
RHP funds
Projects using FY25
RHP funds
Projects using FY25
RHP funds
A
ll other CPD
programs except
HOME and HTF
Funds obligated
on or after 2/22/24
Funds obligated
on or after 8/23/24
Funds obligated
on or after 8/23/24
Funds obligated
on or after 8/23/24
HOME
and HTF
HOME or HTF
funds obligated
on or after 8/23/24
HOME or HTF
funds obligated
on or after 8/23/24
HOME or HTF
funds obligated
on or after 8/23/24
HOME or HTF
funds obligated
on or after 8/23/24
Yes Indicate here which covered materials the BAP applies to and continue to Step 5:
Iron and steel
Specifically listed construction materials
Not listed construction materials
Manufactured products
No The B
AP does not apply to this project because the funds were obligated before the effective date for the program/materials used in the project. Stop here. - 4 - 361
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Build America, Buy America Act Optional Buy America Preference (BAP) Applicability Checklist
Step 5:
HUD has issued several general waivers. Check the box next to any conditions that apply to the project.
Infrastructure projects that meet the conditions of a general waiver may be exempt in whole or in part from the BAP .
The total cost of the project from all sources (Federal and non-Federal) is an amount equal to or less than the 2 CFR 200.1 simplified acquisition threshold, which is currently $250,000. If checked, the Small Grants Waiver applies, and the project is exempt from the BAP. (Waiver effective until November 23, 2027 .) There is an urgent need to immediately complete the project because of a threat to life, safety, or property. If checked, the Exigent Circumstances Waiver applies, and the project is exempt from the BAP. (Waiver effective until November 23, 2027 .)
The project is in Guam, American Samoa, or the Northern Mariana Islands. If checked, the Pacific Island Territories Waiver applies, and the project is exempt from the BAP. (Waiver effective until February 15, 2025.)
The project is being funded by a Tribal recipient. If checked, the Tribal Recipients Waiver may apply, and the project is exempt from the BAP. (Waiver effective until September 30, 2024.)
If you
checked any of the boxes above, answer yes below.
Yes The HUD general waiver selected above is being applied to this project, so the BAP does not apply to the entire project. Documentation of the conditions of the waiver should be attached.
No Proceed to
Step 5a.
Step 5a:
Calculate the De Minimis limit for the project:
The total cost of all covered materials includes all iron and steel, construction materials, and manufactured products used in the project, regardless of whether the BAP currently applies under the Phased Implementation waiver.
Enter the total cost of all covered materials:
Multiply that amount by 0.05 (5%):
Enter the lower of the number calculated
in the row above or $1,000,000:
The am
ount in the third row above is the De Minimis limit for this project. The BAP can be waived for covered materials from foreign or unknown sources at a cost not to exceed the De Minimis limit of 5% of the total cost of materials or $1,000,000 (whichever is less). The BAP will still apply to other covered materials used in the project. Attach a list of covered materials and their associated costs to which the De Minimis limit has been applied. - 5 - 362
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Build America, Buy America Act Optional Buy America Preference (BAP) Applicability Checklist 6 - -
Step 6:
Is there a need for a project-/product-specific waiver? If the BAP applies to a project and all general waiver flexibilities have been utilized, but there are remaining covered materials that can only be sourced from foreign or unknown sources, then a grantee may apply for a project-/product-specific waiver.
Yes Refer to guidance in Section VII Step 6 of Notice CPD 2023-12.
No Stop here and retain this analysis in project records.
Completed by Date Completed
CO UNITY
PLANNING
&
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CHECKLIST
Build America, Buy America Act:
Optional Buy America Preference
(BAP) Applicability Checklist
363
This space for filing stamp only
OR#:
O R A N G E C O U N T Y R E P O R T E R
~ SINCE 1921 ~
600 W. Santa Ana Blvd., Suite 205, Santa Ana, California 92701-4542 Telephone (714) 543-2027 / Fax (714) 542-6841
PROOF OF PUBLICATION
(2015.5 C.C.P.)
State of California )
County of Orange ) ss
Notice Type:
Ad Description:
I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the ORANGE COUNTY REPORTER, a newspaper published in the English language in the City of Santa Ana, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of Orange, State of California, under date of June 2, 1922, Case No. 13,421. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:
Executed on: 10/10/2004
At Los Angeles, California
I certify (or declare) under penalty of perjury that the foregoing is true and correct.
Signature
LYNWOOD PRESS WAVE
1007 N SEPULVEDA BLVD STE 1357, MANHATTAN BEACH, CA 90266 (323) 556-5720 (213) 835-0584
WWA 4032702
Suzanne Trejo
CITY OF LYNWOOD/COMMUNITY CDBG COMMISSI
11330 BULLIS RD 310-603-0220, EXT. 60
LYNWOOD, CA - 90262
HRG - NOTICE OF HEARING
NOTICE OF PUBLIC HEARING AND 30-DAY COMMENT PERIOD
FOR THE 2026-2027 ANNUAL ACTION PLAN
I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the LYNWOOD PRESS WAVE, a newspaper published in the English language in the city of LYNWOOD, county of LOS ANGELES, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of LOS ANGELES, State of California, under date 02/27/1933, Case No. LBC-5394. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:
04/16/2026
04/16/2026
LOS ANGELES
!A000007375004!
Email
LYNWOOD CITY COUNCIL
NOTICE OF PUBLIC HEARING AND 30 -DAY
COMMENT PERIOD FOR THE
2026 -2027 ANNUAL ACTION PLAN
NOTICE IS HEREBY GIVEN that the Lynwood
City Council will hold a public hearing to receive
input and provide direction concerning the draft
Annual Action Plan for the Fiscal Year (FY) 2026 -
2027 allocation of Community Development Block
Grant (CDBG) and HOME Investment
Partnership (HOME) program funds.
Date : Tuesday, May 19, 2026 (City Council
Meeting)
Time: 6:00 P.M. (or as soon thereafter as the
ma tter may be heard)
Place: In person Public Meeting
City Hall Annex Council Chambers, 11350 Bullis
Rd., Lynwood, CA 90262
Subject: Lynwood City Council will conduct a
public hearing concerning the draft 2026 -2027
Annual Action Plan for the allocation of
Com munity Development Block Grant (CDBG)
and HOME Investment Partnership (HOME)
program funds.
As an entitlement jurisdiction, the City is required
by the United States Department of Housing and
Urban Development (HUD) to prepare and submit
an Annual Action P lan that describes how the
City will utilize federal money during the next
fiscal year to meet the goals and objectives
approved by the City Council in the Five -Year
Consolidated Plan. The City will receive $972,433
in CDBG funds and $379,345.56 in HOME fu nds
for FY 2026 -2027.
Public Review and Comment Period: The Draft
2026 -2027 Annual Action Plan will be available
for a 30 -day public review and comment period
beginning on April 16, 2026 and ending on May
18, 2026. These documents will be available for
pub lic review and copying at the City Clerk's
Office 11330 Bullis Road., California 90262, and
on the City of Lynwood's website at
https://www.lynnwoodwa.gov/Government/City -
Clerk/Public -Notices.
The City of Lynwood encourages citizen
participation in the pla nning process. A Public
Hearing will be held in -person on May 19, 2025,
6:00 p.m. at the City Hall Annex Council
Chambers in Lynwood.
Invitation to be heard : All interested persons are
invited to the Public Hearing to be heard. In
addition, written comment s may be submitted to
the City Council prior to the hearing. Comments
may be submitted in writing by mailing comments
to City of Lynwood, Community Development
Department, Attn: Suzanne Trejo, Administrative
Analyst II, 11330 Bullis Rd., Lynwood, CA 90262.
Accessibility: In compliance with the Americans
with Disability Act, if you require special
assistance to participate in this public hearing,
please contact the City Clerk at (310) 603 -0220,
Ext. 214. Notification at least 72 hours prior to the
scheduled hearing will enable the City to make
reasonable arrangements to facilitate
participation.
For more information and/or to provide written
comment, contact Suzanne Trejo, Administrative
Analyst II, City of Lynwood, Community
Development Department at (310) 6 03 -0220, ext
601 or via e -mail at [email protected].
4/16/26
WWA -4032702#
LYNWOOD PRESS WAVE
364
This space for filing stamp only
OR#:
O R A N G E C O U N T Y R E P O R T E R
~ SINCE 1921 ~
600 W. Santa Ana Blvd., Suite 205, Santa Ana, California 92701-4542 Telephone (714) 543-2027 / Fax (714) 542-6841
PROOF OF PUBLICATION
(2015.5 C.C.P.)
State of California )
County of Orange ) ss
Notice Type:
Ad Description:
I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the ORANGE COUNTY REPORTER, a newspaper published in the English language in the City of Santa Ana, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of Orange, State of California, under date of June 2, 1922, Case No. 13,421. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:
Executed on: 10/10/2004
At Los Angeles, California
I certify (or declare) under penalty of perjury that the foregoing is true and correct.
Signature
LYNWOOD PRESS WAVE
1007 N SEPULVEDA BLVD STE 1357, MANHATTAN BEACH, CA 90266 (323) 556-5720 (213) 835-0584
WWA 4032708
Suzanne Trejo
CITY OF LYNWOOD/COMMUNITY CDBG COMMISSI
11330 BULLIS RD 310-603-0220, EXT. 60
LYNWOOD, CA - 90262
HRG - NOTICE OF HEARING
NOTICE OF PUBLIC HEARING AND 30-DAY COMMENT PERIOD
FOR THE 2026-2027 ANNUAL ACTION PLAN spanish
I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the LYNWOOD PRESS WAVE, a newspaper published in the English language in the city of LYNWOOD, county of LOS ANGELES, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of LOS ANGELES, State of California, under date 02/27/1933, Case No. LBC-5394. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:
04/16/2026
04/16/2026
LOS ANGELES
!A000007375006!
Email
AYUNTAMIENTO DE LYNWOOD
AVISO DE AUDIENCIA PÚBLICA Y PERIODO
DE COMENTARIOS DE 30 DÍAS PARA EL
PLAN DE ACCIÓN ANUAL 2026 -2027
POR LA PRESENTE SE NOTIFICA de que el
Concejo Municipal de la Ciudad de Lynwood
celebrará una audiencia pública para recibir
opin iones y proporcionar orientación sobre el
borrador del Plan de Acción Anual para el año
fiscal (FY) 2026 -2027 de la asignación de fondos
de Community Development Block Grant (CDBG)
y HOME Investment Partnership (HOME).
Fecha : Martes, 19 de mayo de 2026 (Re unión
del Ayuntamiento)
Tiempo: 6:00 P.M. (o tan pronto como se pueda
conocer el asunto)
Lugar: Reunión pública presencial
Sala del Ayuntamiento, 11350 Bullis Rd.,
Lynwood, CA 90262
Asunto: El Ayuntamiento de Lynwood celebrará
una audiencia pública respec to al borrador del
Plan de Acción Anual 2026 -2027 para la
asignación de fondos de la Community
Development Block Grant (CDBG) y del
programa HOME Investment Partnership
(HOME).
Como jurisdicción de derechos, el United States
Department of Housing and Urban Development
(HUD) exige a la Ciudad preparar y presentar un
Plan de Acción Anual que describa cómo la
Ciudad utilizará el dinero federal durante el
próximo año fiscal para cumplir las metas y
objetivos aprobados por el Concejo Municipal en
el Plan Consoli dado Quinquenal. La ciudad
recibirá $972,433 dólares en fondos CDBG y
$379,345.56 dólares en fondos HOME para el
año fiscal 2026 -2027.
Periodo de Revisión y Comentarios Públicos:
El Borrador del Plan de Acción Anual 2026 -2027
estará disponible para un peri odo de revisión
pública y comentarios de 30 días que comenzará
el 16 de abril de 2026 y finalizará el 18 de mayo
de 2026. Estos documentos estarán disponibles
para su revisión y copia pública en la Oficina del
Secretario Municipal 11330 Bullis Road.,
Calif ornia 90262, y en la página web de la ciudad
de Lynwood en
https://www.lynnwoodwa.gov/Government/City -
Clerk/Public -Notices.
La ciudad de Lynwood fomenta la participación
ciudadana en el proceso de planificación. La
audiencia pública se celebrará en persona el 19
de mayo de 2025 a las 18:00 horas en la Sala del
Ayuntamiento de Lynwood.
Invitación a ser escuchada : Todas las personas
interesadas están invitadas a la Audiencia
Pública para ser escuchadas. Además, se
pueden presentar comentarios por escrito al
Ayuntamiento antes de la audiencia. Los
comentarios pueden enviarse por escrito
enviándolos por correo a la Ciudad de Lynwood,
Departamento de Desarrollo Comunitario,
Atención: Suzanne Trejo, Analista Administrativa
II, Sala del Ayuntamiento, 11330 Bullis R d.,
Lynwood, CA 90262
Accesibilidad: En cumplimiento con la Ley de
Estadounidenses con Discapacidad, si necesita
asistencia especial para participar en esta
audiencia pública, por favor contacte con el
Secretario Municipal en el (310) 603 -0220, Ext.
214. Una notificación al menos 72 horas antes de
la audiencia programada permitirá a la Ciudad
tomar medidas razonables para facilitar la
participación.
Para más información y/o para proporcionar un
comentario por escrito, contacte con Suzanne
Trejo, Analista A dministrativa II del Departamento
de Desarrollo Comunitario de la Ciudad de
Lynwood, en el (310) 603 -0220, ext. 601 o por
correo electrónico [email protected].
Publicado: 16 de abril de 2026
4/16/26
WWA -4032708#
LYNWOOD PRESS WAVE
365
AGENDA STAFF REPORT
DATE:
June
2, 2026
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Suja Lowenthal, City Manager
PREPARED BY:
Carol Molina, Interim Director of Finance & Administration Mohammad Islam, Accounting Technician
SUBJECT:
APPROVAL OF THE WARRANT REGISTER
Agenda Item # 9.1.
Recommendation:
Staff recommends the City Council approve the warrant register dated June 02, 2026 for FY 2025–26. Staff certifies the accuracy of the demands.
Executive Summary:
Request for approval of the warrant register dated June 02, 2026 for 2025–26. (FIN)
Background:
Discussion and Analysis:
Fiscal Impact:
This is an administrative item, as such as no fiscal impact.
Coordinated With:
City Manager's Office
City Attorney's Office
ATTACHMENTS:
Description
City Council City Council Regular Meeting 366
1. 06-02-2026-CITY__COUNCIL__WARRANT__RESOLUTION__TEMPLATE-2026.docx
2. WARRANT RUN CITY COUNCIL-6-2-2026.pdf
City Council City Council Regular Meeting 367
RESOLUTION NO. 2026.xxx
Warrant Registers Dated 06–02–2026
PASSED, APPROVED, and ADOPTED this 2nd day of June, 2026.
Gabriela Camacho, Mayor
ATTEST:
__________________________
Maria Quiňonez Suja Lowenthal
City Clerk City Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
________
Noel Tapia Carol Molina
City Attorney Interim Director of Finance & Administration
368
STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a meeting held on the 2nd day of June, 2026.
AYES: COUNCILMEMBERS CUELLAR, SOTO, MUṄOZ-GUEVARA, MAYOR PRO
TEM AVILA MOORE, AND MAYOR CAMACHO
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
_____________________ Date: _______________________
Maria Quiňonez
City Clerk
STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true , and correct copy of Resolution No. 2026.xxx on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 2nd day of June, 2026.
__________________________ Date: _________________________ Maria Quiňonez
City Clerk
369
apCkHist Void Check Listing Page: 1
05/21/2026 3:26PM City of Lynwood
Bank code: c-ap01
Void Check# Date Vendor ClearNoid Date Invoice Inv. Date Amount Paid Check Total 303151 03/16/2026 014978 ERIK MATTHEW CAMPOS 05/18/2026 REISSUED-303745 07/01/2025 500.00 500.00 303208 04/07/2026 013245 CARLO MAGNO 05/18/2026 REISSUED-303746 03/06/2026 1,600.00 1,600.00 303285 04/07/2026 011922 NORTH STAR LAND CARE 04/28/2026 REISSUED-303621 02/28/2026 62,300.00 04/28/2026 1601-1261 03/15/2026 52,965.00
04/28/2026 1601-1190 12/05/2025 19,840.00
04/28/2026 1601-1248 02/28/2026 13,820.00
04/28/2026 1601-1262 03/15/2026 812.00 149,737.00
303606 05/05/2026 002912 WATERLINE 05/05/2026 REISSUED-303606 04/16/2026 931.96 05/05/2026 5788132 04/09/2026 898.07
05/05/2026 5788131 04/09/2026 508.40
05/05/2026 5789333 04/16/2026 423.60
05/05/2026 5789332 04/16/2026 338.90 3,100.93
1006301 11/05/2025 000019 CITY NATIONAL BANK 05/14/2026 REISSUED-1006337 11/05/2025 7,500.00 7,500.00 c-ap01 Total: 162,437.93
5 checks in this report Total Checks: 162,437.93
Page: 1
370
vchlist
05/04/2026
Bank code:
Voucher
1006336
4:36:59PM
c-ap01
Date Vendor
3/25/2026 013107 JPMORGAN CHASE BANK, N.A
Electronic Financial Transaction List
City of Lynwood
Invoice
013107-022726-A
013107-022726-B
013107-022726-C
013107-022726-D
013107-022726-E
013107-022726-F
013107-022726-G
PO#
------
Description/Account
BANKCARD CHARGES
BANKCARD CHARGES
BANKCARD CHARGES
BANKCARD CHARGES
BANKCARD CHARGES
BANKCARD CHARGES
BANKCARD CHARGES
Page: 2
Amount
16,591.17
2,633.64
5,386.26
5,770.25
2,605.44
1,182.12
211.77
Total : 34,380.65
Page: 2
371
vchlist
05/14/2026
Bank code:
Voucher
1006337
1006338
4:24:50PM
c-ap01
Date Vendor
11/5/2025 014836 EXTTI, INCORPORATED
4/16/2026 014836 EXTTI, INCORPORATED
3 Vouchers for bank code :
3 Vouchers in this report
c-ap01
Electronic Financial Transaction List
City of Lynwood
Invoice PO#
014836-Deposit 05-002012
22218-1 05-002012
Page: 3
Description/Account Amount
LEGAL SERVICES 7,500.00
Total: 7,500.00
LEGAL SERVICES 14,662.50
Total: 14,662.50
Bank total: 56,543.15
Total vouchers: 56,543.15
Page: 3
372
vchlist Prepaid-Check List Page: 4
04/28/2026 11:31:17AM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount 303609 4/27/2026 006399 AT&T 000025039081 TELEPHONE SERVICES 782.26 000025040294 TELEPHONE SERVICES 197.93
000025087432 TELEPHONE SERVICES 30.08
Total : 1,010.27
303610 4/27/2026 013403 CA-NV AWWA SECTION 013403-042126 REGISTRATION FEES-CHRISTIAN 385.00 Total: 385.00
303611 4/27/2026 000955 CENTRAL BASIN MUNICIPAL WATER LYN-MAR26 06-010427 IMPORTED DRINKING WATER 5,780.95 Total: 5,780.95
303612 4/27/2026 014843 CMDBARR PROPERTY HOLDINGS LLC 6-D 11-002522 PLHA RENTAL ASSISTANCE 1,404.96 Total: 1,404.96
303613 4/27/2026 002699 CONTROL BOARD, STATE WATER SW-0341261 ANNUAL PERMIT FEE 565.00 Total: 565.00
303614 4/27/2026 012020 DANDRIDGE, ANTHONY 012020-031926 REIMBURSEMENT-MILEAGE-IMSA 635.80 Total: 635.80
303615 4/27/2026 014026 IBE DIGITAL 596698800 PRINTING SERVICES-APRIL LEASE 1,297.45 Total: 1,297.45
303616 4/27/2026 012518 IRIARTE, ROBERTO 012518-031926 REIMBURSEMENT-MILEAGE-IMSA 589.40 Total: 589.40
303617 4/27/2026 013689 LEON MEDINA, ESPERANZA 0039531 EMPLOYEE RECOGNITION 2,200.00 Total: 2,200.00
303618 4/27/2026 000450 LIEBERT CASSIDY WHITMORE 306800 05-002011 LEGAL SERVICES 120.00 Total: 120.00
303619 4/27/2026 015017 LIL' LIBROS 22372 FEES FOR SERVICES 250.00 Total: 250.00
303620 4/27/2026 009041 LOYA, RUUD AND ROMO, ATKINSON, 785150 05-002005 LEGAL AND LABOR RELATIONS 13,158.99 Page: 4
373
vchlist Prepaid-Check List Page: 5
04/28/2026 11:31:17AM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount --
303620 4/27/2026 009041 009041 LOYA, RUUD AND ROMO, ATKINSON, (Continued) Total: 13,158.99 303621 4/27/2026 011922 NORTH STAR LAND CARE 1601-1190 06-010589 TREE TRIMMING, MAINTENANCE 19,840.00 1601-1247 06-010589 TREE TRIMMING, MAINTENANCE 62,300.00 1601-1248 06-010589 TREE TRIMMING, MAINTENANCE 13,820.00 1601-1261 06-010589 TREE TRIMMING, MAINTENANCE 8,065.00 1601-1262 06-010589 TREE TRIMMING, MAINTENANCE 812.00
Total: 104,837.00
303622 4/27/2026 015063 SAL"S BACKYARD BBQ LLC 015063-031926 LUNCHEON FIRST RESPONDERS 3,200.00 Total: 3,200.00
303623 4/27/2026 000163 SOUTHERN CALIFORNIA EDISON 000163-042226 LIGHT & POWER SERVICES 33,043.43 Total: 33,043.43
303624 4/27/2026 013288 SPECTRUM 262671001040126 INTERNET 223.93 Total: 223.93
303625 4/27/2026 013288 SPECTRUM 188407901041426 INTERNET 219.99 Total: 219.99
303626 4/27/2026 013288 SPECTRUM 188407201041426 INTERNET 179.99 Total: 179.99
303627 4/27/2026 013288 SPECTRUM 188407001041426 INTERNET 142.36 Total: 142.36
303628 4/27/2026 014944 STAFFORD HR CONSUL TING, LLC 023-001 05-002020 CONSUL TING SERVICES 19,350.00 Total: 19,350.00
303629 4/27/2026 000164 THE GAS CO. 000164- GAS SERVICES 624.42 Total: 624.42
303630 4/27/2026 002386 T-MOBILE USA, INC 983463843-032226 CELL PHONE SERVICE 500.79 Total: 500.79
303631 4/27/2026 011963 WEX BANK 111878045 06-010502 FUEL CHARGES FOR CITY 13,817.14 Page: 5
374
vchlist
04/28/2026 11:31:17AM
Bank code: c-ap01
Voucher Date Vendor
303631 4/27/2026 011963 011963 WEX BANK
Prepaid-Check List
City of Lynwood
Invoice
(Continued)
PO# Description/Account
Page: 6
Amount
Total: 13,817.14
Page: 6
375
vchlist Prepaid-Check List Page: 7
05/04/2026 12:57:21PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount 303632 5/4/2026 007551 AFSCME DISTRICT COUNCIL 36 Ben178490 ASSOCIATION DUES: PAYMENT 2,373.16 Ben178834 ASSOCIATION DUES: PAYMENT 2,344.88
Total: 4,718.04
303633 5/4/2026 013747 AMERIFLEX Ben178496 HEAL TH FSA PRE-TAX: PAYMENT 308.34 Ben178840 HEAL TH FSA PRE-TAX: PAYMENT 308.34
Total: 616.68
303634 5/4/2026 013463 CITY EMPLOYEES ASSOCIATES, LLC Ben178494 MGMT. ASSOCIATION DUES: 246.50 Ben178838 MGMT. ASSOCIATION DUES: 232.00
Total: 478.50
303635 5/4/2026 005282 FRANCHISE TAX BOARD Ben179198 FRANCHISE TAX BOARD: PAYMENT 125.00 Total: 125.00
303636 5/4/2026 013730 INSURANCE COMPANY, COLONIAL LIFE Ben178492 ACCIDENT PRETAX: PAYMENT 1,645.48 Ben178836 ACCIDENT PRETAX: PAYMENT 1,588.18
Total: 3,233.66
303637 5/4/2026 010048 LEGAL SHIELD Ben178498 LEGAL SHIELD: PAYMENT 49.84 Ben178842 LEGAL SHIELD: PAYMENT 49.84
Total: 99.68
303638 5/4/2026 013096 STATE DISBURSEMENT UNIT Ben179200 STATE DISBURSEMENT UNIT: 113.99 Total: 113.99
303639 5/4/2026 003836 GOODLOE, JAMEL 003836-051426 PER DIEM- 2026 CAPIO ANNUAL 260.00 Total: 260.00
303640 5/4/2026 014941 LOWENTHAL, SUJATHA J. 014941-051726 PER DIEM-CALIFORNIA CONTRACT 210.00 Total: 210.00
303641 5/4/2026 014097 POCASANGRE, VANIA 014097-051326 PER DIEM-COMMUNICATIONS 260.00 Total: 260.00
303642 5/5/2026 002912 WATERLINE TECHNOLOGIES,INC 5788131 06-010485 OPERATING SUPPLIES 508.34 5788132 06-010485 OPERATING SUPPLIES 898.07
--
Page: 7
376
vchlist
05/04/2026 12:57:21PM
Bank code: c-ap01
Voucher Date Vendor
303642 5/5/2026 002912 WATERLINE TECHNOLOGIES.INC
Prepaid-Check List
City of Lynwood
Invoice
(Continued)
5789332
5789333
5789334
Page: 8
PO# Description/Account Amount
06-010485 OPERATING SUPPLIES 338.90
06-010485 OPERATING SUPPLIES 423.62
06-010485 OPERATING SUPPLIES 931.96
Total: 3,100.89
Page: 8
377
vchlist Prepaid-Check List Page: 9
05/11/2026 12:32:58PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount 303643 5/11/2026 006399 AT&T 000025130833 TELEPHONE SERVICES 1,244.84 Total: 1,244.84
303644 5/11/2026 005344 AT&T MOBILITY 287341717172X050426 CELL PHONE SERVICE 4,757.21 Total: 4,757.21
303645 5/11/2026 013531 CIVIC PLUS, LLC 362248 12-000521 CIVIC PLUS ANNUAL RENEWAL 12,603.30 Total: 12,603.30
303646 5/11/2026 001987 DISTRICT OF SOUTHERN CALIF., WATER 001987-033126 06-010506 GROUNDWATER PRODUCTION 184,914.20 Total: 184,914.20
303647 5/11/2026 001357 EMPLOYMENT DEVELOPMENT DEPT. L2071971376 UNEMPLOYMENT INSURANCE 11,700.00 Total: 11,700.00
303648 5/11/2026 013930 HD SUPPLY.INC 0882742683 06-010544 SUPPLIES EXPENSE 661.18 0882805951 06-010544 SUPPLIES EXPENSE 149.00
0882811217 06-010544 SUPPLIES EXPENSE 481.85
1805149350 06-010544 SUPPLIES EXPENSE -484.44
1805193286 06-010544 SUPPLIES EXPENSE 345.98
Total: 1,153.57
303649 5/11/2026 014026 IBE DIGITAL 491480-1 PRINTING SERVICES 35.97 Total: 35.97
303650 5/11/2026 014696 INDUSTRIES, INC, ENVIRONMENTAL 260301-1 MOLD INSPECTION 4/21/2026 1,500.00 Total: 1,500.00
303651 5/11/2026 014941 LOWENTHAL, SUJATHA J. 014941-050831 PER DIEM-SOUTHERN CALIFORNIA 140.00 Total: 140.00
303652 5/11/2026 015064 MCCI, LLC RN28093 12-000523 LASERFICHE CLOUD 13,692.00 Total: 13,692.00
303653 5/11/2026 009647 MV CHENG & ASSOCIATES, INC. 4/30/2026 02-002706 PROF & CONTRACTUAL SERVICES 29,117.50 Total: 29,117.50
Page: 9
378
vchlist Prepaid-Check List Page: 10
05/11/2026 12:32:58PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount 303654 5/11/2026 001313 QUINONEZ, MARIA 001313-053126 ELECTRONIC MEDIA & AUTO 500.00 Total: 500.00
303655 5/11/2026 002386 T-MOBILE USA, INC 983463843-042126 CELL PHONE SERVICE 508.50 Total : 508.50
303656 5/11/2026 002912 WATERLINE TECHNOLOGIES,INC 5790747 06-010485 OPERATING SUPPLIES 881 .13 5791599 06-010485 OPERATING SUPPLIES 440.56
5791600 06-010485 OPERATING SUPPLIES 728.62
5791602 06-010485 OPERATING SUPPLIES 338.90
5791604 06-010485 OPERATING SUPPLIES 881.13
Total: 3,270.34
379
vchlist
05/13/2026
Bank code:
Voucher
303738
303739
4:34:10PM
c-ap01
Date Vendor
5/13/2026 014836 EXTTI, INCORPORATED
5/13/2026 000163 SOUTHERN CALIFORNIA EDISON
Prepaid-Check List
City of Lynwood
Invoice
---------
22218
000163-051326
PO# Description/Account
-------
05-002012 LEGAL SERVICES
Total:
LIGHT & POWER SERVICES
Total:
Page: 11
Amount
45,246.97
45,246.97
31,302.04
31,302.04
Page: 11
380
vchlist
05/18/2026 3:30:36PM
Bank code: c-ap01
Voucher Date Vendor
303740 5/18/2026 015073 HR INTERRUPTED, LLC
303741 5/18/2026 013721 MUNOZ-GUEVARA, JUAN
303742 5/18/2026 014944 STAFFORD HR CONSULTING, LLC
303743 5/18/2026 000164 THE GAS CO.
303744 5/18/2026 007187 U.S. POSTMASTER
303745 5/18/2026 014978 CAMPOS, ERIK MATTHEW
303746 5/18/2026 013245 CARLO MAGNO
57 Vouchers for bank code : c-ap01
57 Vouchers in this report
Prepaid-Check List
City of Lynwood
Invoice
1800-01
013721-042426-1
023-003
000164-051326
007187-050426
014978-070125
131142
Page: 12
PO# Description/Account Amount
CIVILITY LEARNING 5,000.00
Total: 5,000.00
REIMBURSEMENT-LEAGUE 159.40
Total: 159.40
05-002020 HR CONSUL TING SERVICES 17,100.00
Total: 17,100.00
GAS SERVICES 47.06
Total: 47.06
01-001919 FEES FOR SERVICES 20,000.00
Total: 20,000.00
KID MAYOR SCHOLARSHIP-JULY 500.00
Total: 500.00
EQUIPMENT AND SUPPLIES 1,600.00
Total: 1,600.00
Bank total: 602,846.21
Total vouchers : 602,846.21
Page: 12
381
vchlist Check List Page: 13
05/11/2026 3:34:26PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount 303657 6/2/2026 013312 ENCISO, NESTOR ALEXIS 000052 SENIOR CENTER EVENT -MUSIC 192.94 Total: 192.94
303658 6/2/2026 000743 ADMINISTRATIVE SVCS. CO-OP 260305 08-005438 DIAL A RIDE PROGRAM 18,378.40 Total: 18,378.40
303659 6/2/2026 013931 AETNA RESOURCES FOR LIVING E0369510 EMPLOYEE ASSISTANCE PROGRAM 234.91 Total: 234.91
303660 6/2/2026 010746 ALVAREZ-GLASMAN & COLVIN 2025-12-21690-CL 01-001901 LEGAL SERVICES 123.20 2025-12-21692-PER-1 01-001901 LEGAL SERVICES 8,082.50
2026-01-21072-PER-2 01-001901 LEGAL SERVICES 4,982.00
2026-01-21700-CD 01-001901 LEGAL SERVICES 3,065.00
2026-01-21700-PW 01-001901 LEGAL SERVICES 920.00
2026-01-21 703-COM M 01-001901 LEGAL SERVICES 3,021.00
2026-01-21704-ICRMA 01-001901 LEGAL SERVICES 1,453.54
Total: 21,647.24
303661 6/2/2026 013738 AMAZON CAPITAL SERVICES INC 134D-PHCT-DNTM SUPPLIES EXPENSE 519.40 1 MM6-Y9F9-FPKP SUPPLIES EXPENSE 31.00
1 PKW-47R1-JVQF SUPPLIES EXPENSE 741.92
1 RRY-P63L-FWMW SUPPLIES EXPENSE 47.61
Total: 1,339.93
303662 6/2/2026 003312 AMERICAN RENTALS 609266 06-010422 SUPPLIES AND EQUIPMENT 337.97 Total: 337.97
303663 6/2/2026 000926 AMERICAN TRANSPORTATION SYSTEM 149893 08-005386 FIELD TRIP TRASPORTATION 1,306.25 Total: 1,306.25
303664 6/2/2026 004285 AVANT GARDE, INC. 12982 06-010599 PROF & CONTRACTUAL SERVICES 450.00 12983 06-010583 PROF & CONTRACTUAL SERVICES 2,268.00
13051 06-009906 PROF & CONTRACTUAL SERVICES 1,817.50
13051-1 06-010087 PROF & CONTRACTUAL SERVICES 1,360.00
13051-2 06-010359 PROF & CONTRACTUAL SERVICES 3,946.25
13051-3 06-010340 PROF & CONTRACTUAL SERVICES 657.50
Page: 13
382
vchlist Check List Page: 14
05/11/2026 3:34:26PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount 303664 6/2/2026 004285 004285 AVANT GARDE, INC. (Continued) Total: 10,499.25 303665 6/2/2026 004986 BIOMETRICS4ALL, INC COLYN0143 LIVE SCAN RELAY 46.75 Total: 46.75
303666 6/2/2026 000884 BLUE DIAMOND MATERIALS 4517048 06-010491 OPERATING SUPPLIES 1,274.05 4530864 06-010491 OPERATING SUPPLIES 459.77
Total: 1,733.82
303667 6/2/2026 005848 BOWMAN INFRASTRUCTURE ENG LTD 549195 11-002571 PLAN CHECK SVCS & BUILDING 3,328.00 549915 11-002571 PLAN CHECK SVCS & BUILDING 9,598.23
554742 11-002571 PLAN CHECK SVCS & BUILDING 13,681.83
Total: 26,608.06
303668 6/2/2026 014074 CALIFORNIA ENERGY COMMISSION 12507 PRINCIPAL-CALIFORNIA ENERGY 66,955.11 Total: 66,955.11
303669 6/2/2026 015028 CANADA, JUAN 003794-0057 REFUNDABLE DEPOSIT- SENIOR 68.00 Total: 68.00
303670 6/2/2026 010398 CAPPO 300017732 MEMBERSHIP FEE 145.00 Total: 145.00
303671 6/2/2026 014660 CARE LLC, ECO-DRY 005511 DEEP UPHOLSTERY CLEANING 750.00 005512 DEEP UPHOLSTERY CLEANING 250.00
Total: 1,000.00
303672 6/2/2026 001552 CARRILLO, ROSALIA 001552-043026 REIMBURSEMENT-FIRST 107.67 001552-050526 REIMBURSEMENT-DECOR 118.89
Total: 226.56
303673 6/2/2026 014687 COMMERCIAL TRUCK EQUIPMENT CO. 15243 11-002501 ANIMAL CONTROL TRUCK 92,160.37 Total: 92,160.37
303674 6/2/2026 014709 COMPANY, LLC, SPRINGBROOK TMINV-011120 02-002705 SUBSCRIPTION 9,967.12 Total: 9,967.12
303675 6/2/2026 012021 CONCENTRA MEDICAL CENTERS 90620615 05-002010 PRE-EMPLOYMENT PHYSICALS 608.00 Page: 14
383
vchlist Check List Page: 15
05/11/2026 3:34:26PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount 303675 6/2/2026 012021 012021 CONCENTRA MEDICAL CENTERS (Continued) Total: 608.00 303676 6/2/2026 001306 CORELOGIC SOLUTIONS, LLC. 30852223 PROPERTY LOOKUP SERVICE 298.53 Total: 298.53
303677 6/2/2026 010638 COURT OF CALIFORNIA, COUNTY OF LA 010638-March2026 COUNTY FEES 22,611.50 Total: 22,611.50
303678 6/2/2026 007223 COX, CASTLE & NICHOLSON LLP 631171 LEGAL SERVICES 260.00 Total: 260.00
303679 6/2/2026 000138 DAILY JOURNAL CORPORATION 84032702 11-002461 PUBLICATION SERVICES 685.00 Total: 685.00
303680 6/2/2026 015068 DE LEON, BRYAN 015068-041126 BARTENDAR SERVICE 375.00 Total: 375.00
303681 6/2/2026 014467 DELGADILLO, LILIANA 014467-053126 ELECTRONIC/MEDIA AND AUTO 500.00 Total: 500.00
303682 6/2/2026 003352 DEPT. OF JUSTICE CTRL SERVICES 035040 FEES FOR SERVICES 354.00 Total: 354.00
303683 6/2/2026 015027 DIAZ, VICTOR 003725-0036 REFUNDABLE DEPOSIT 100.00 Total: 100.00
303684 6/2/2026 003317 FAIR HOUSING FOUNDATION QUARTER3-030526 11-002537 CDBG SUBRECIPIENT 1,304.54 QUARTER3-041026 11-002537 CDBG SUBRECIPIENT 958.90
Total: 2,263.44
303685 6/2/2026 001087 FANTASY FLOWERS AND GIFTS 297813 08-005411 RECREATION SPECIAL EVENTS 1,594.80 297817 08-005411 RECREATION SPECIAL EVENTS 2,292.53
297833 08-005411 RECREATION SPECIAL EVENTS 581.44
297834 08-005411 RECREATION SPECIAL EVENTS 232.58
320482 08-005411 RECREATION SPECIAL EVENTS 387.63
320493 08-005411 RECREATION SPECIAL EVENTS 487.30
320500 08-005411 RECREATION SPECIAL EVENTS 232.58
Page: 15
384
vchlist Check List Page: 16
05/11/2026 3:34:26PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount --
303685 6/2/2026 001087 001087 FANTASY FLOWERS AND GIFTS (Continued) Total: 5,808.86 303686 6/2/2026 003334 FED EX 9-269-82790 06-010437 COURIER SERVICES 10.42 9-270-41850 COURIER SERVICES 10.34
Total: 20.76
303687 6/2/2026 003983 GALLS QUARTERMASTER 034734949 11-002506 CODE COMPLIANCE DIVISION 90.59 034748864 11-002506 CODE COMPLIANCE DIVISION 149.18
034748889 11-002506 CODE COMPLIANCE DIVISION 90.59
034748890 11-002506 CODE COMPLIANCE DIVISION 301.63
034796589 11-002506 CODE COMPLIANCE DIVISION 668.20
Total: 1,300.19
303688 6/2/2026 013838 GEORGE, LINDA MAE 013838-041626 PERSONNEL BOARD 50.00 Total: 50.00
303689 6/2/2026 015062 GORESH INC BD2600206 REFUND-INCORRECT PERMIT 134.00 BD2600209 REFUND-INCORRECT PERMIT 80.00
Total: 214.00
303690 6/2/2026 001510 GRAINGER, INC. 9882343305 11-002498 OPERATING SUPPLIES 103.31 9888493575 06-010441 OPERATING SUPPLIES 1,600.66
9890530596 06-010441 OPERATING SUPPLIES 612.06
Total: 2,316.03
303691 6/2/2026 012031 HARMONY PROJECT QUARTER2-011526 11-002538 CDBG SUBRECIPIENT 7,793.20 Total: 7,793.20
303692 6/2/2026 013930 HD SUPPLY.INC 0882785308 06-010544 BUILDING MAINTENANCE 421 .30 Total: 421.30
303693 6/2/2026 012589 HILL, VADA 003702-0022 REFUNDABLE DEPOSIT-BATEMAN 100.00 Total: 100.00
303694 6/2/2026 014026 IBE DIGITAL 491778 NETWORK SUPPORT 1,440.00 Total: 1,440.00
303695 6/2/2026 000353 INFOSEND, INC. 307269 02-002713 PRINTING/MAILING OF UTILITY 4,651.21 Page: 16
385
vchlist Check List Page: 17
05/11/2026 3:34:26PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount 303695 6/2/2026 000353 000353 INFOSEND, INC. (Continued) Total: 4,651.21 303696 6/2/2026 001269 JOHN L. HUNTER & ASSOCIATES L YN1 MS412601 06-010538 PLANNING & LAND DEVELOPMENT 1,561.25 Total: 1,561.25
303697 6/2/2026 001483 JOHNSON, ILU 001483-040326 REIMBURSEMENT FOR SENIOR 121.37 Total: 121.37
303698 6/2/2026 000001 KING FENCE, INC 59919 06-010447 FENCE RENTALS 65.50 Total: 65.50
303699 6/2/2026 006146 LOPEZ, ROSEMILLIE 006146-041626 PERSONNEL BOARD 50.00 Total: 50.00
303700 6/2/2026 002761 MARCO POWER EQUIPMENT 41212821 06-010496 SUPPLIES, REPAIRS, MACHINERY 25.00 41212824 06-010496 SUPPLIES, REPAIRS, MACHINERY 107.59
Total: 132.59
303701 6/2/2026 015025 MARISCAL, LOURDES SILVA 003926-0014 REFUNDABLE DEPOSIT-AVALOS 200.00 Total: 200.00
303702 6/2/2026 013330 MARNEE MELENDEZ 003774-0061 REFUNDABLE DEPOSIT-THOMPSON 600.00 Total: 600.00
303703 6/2/2026 015026 MIRANDA LOPEZ, NORMA 003439-0076 REFUNDABLE DEPOSIT-THOMPSON 310.00 Total: 310.00
303704 6/2/2026 000982 MITY-LITE 00199450 08-005449 EQUIPMENT FOR RECREATION 5,647.86 Total: 5,647.86
303705 6/2/2026 011975 MOMAR, INC. PSl670423 06-010452 JANITORIAL OPERATING SUPPLIES 332.35 Total: 332.35
303706 6/2/2026 013440 MUNISERVICES LLC INV06-022575 02-002718 PROPERTY/SALES TAX ANALYSIS 1,921.90 INV06-022576 02-002718 PROPERTY/SALES TAX ANALYSIS 1,977.73 Total: 3,899.63
303707 6/2/2026 002592 NAULLS SR, BRUNO M 002592-041626 PERSONNEL BOARD 50.00 Page: 17
386
vchlist Check List Page: 18
05/11/2026 3:34:26PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount 303707 6/2/2026 002592 002592 NAULLS SR, BRUNO M (Continued) Total: 50.00 303708 6/2/2026 015021 NEGRETE 003940-0123 REFUNDABLE DEPOSIT-BATEMAN 400.00 003955-0039 REFUNDABLE DEPOSIT-BATEMAN 200.00
Total: 600.00
303709 6/2/2026 011922 NORTH ST AR LAND CARE 1601-1300 06-010589 TREE TRIMMING, MAINTENANCE 13,820.00 Total: 13,820.00
303710 6/2/2026 000078 ODP BUSINESS SOLUTIONS,LLC 464101607001 OFFICE SUPPLIES 104.91 464101812001 OFFICE SUPPLIES 33.09
465298411001 02-002709 OFFICE SUPPLIES 177.00
465307417001 02-002709 OFFICE SUPPLIES 12.38
465623621001 06-010459 OFFICE SUPPLIES 55.94
465988445001 06-010459 OFFICE SUPPLIES 40.17
465989822001 06-010459 OFFICE SUPPLIES 33.57
466380843001 OFFICE SUPPLIES 335.18
Total: 792.24
303711 6/2/2026 012548 PARKING COMPANY OF AMERICA INVM0020729 06-010529 FIXED-ROUTE MUNICIPAL TRANSIT 99,054.51 Total: 99,054.51
303712 6/2/2026 004854 PETTY CASH- FINANCE 004854-042126 PETTY CASH 424.17 Total: 424.17
303713 6/2/2026 001057 RAMIREZ, JUAN E. 260421 03-000461 JUAN E. RAMIREZ SPANISH 1,274.00 Total: 1,274.00
303714 6/2/2026 009571 RAMON'S LINEN 1003 FIRST RESPONDERS EVENT 540.00 Total: 540.00
303715 6/2/2026 005067 ROADLINE 22766 06-010466 SUPPLIES, PARTS AND PAINTS 929.19 Total: 929.19
303716 6/2/2026 015023 ROJAS, LAURA 003774-0016 REFUNDABLE DEPOSIT-BATEMAN 100.00 Total: 100.00
303717 6/2/2026 008745 SAN FRANCISCO LAUNDRY 71110 DRY CLEANING OF LINEN 529.05 Page: 18
387
vchlist Check List Page: 19
05/11/2026 3:34:26PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/ Account Amount 303717 6/2/2026 008745 008745 SAN FRANCISCO LAUNDRY (Continued) Total: 529.05 303718 6/2/2026 015056 SERRANO, LEON 03102026 MLS GO YOUTH SOCCER CAMP 600.00 Total: 600.00
303719 6/2/2026 015059 SEVENELLO, JAVIER 4102026 SENIOR PROM TRANSPORT 1,500.00 Total: 1,500.00
303720 6/2/2026 014997 SILVA, OSCAR 003394-0029 REFUNDABLE DEPOSIT 2,940.00 Total: 2,940.00
303721 6/2/2026 014623 ST. EMYDIUS CHURCH 003996-0036 REFUNDABLE DEPOSIT FOR PARK 100.00 Total: 100.00
303722 6/2/2026 009040 STOTZ EQUIPMENT 177642 06-010474 REPAIRS AND MAINTENANCE 1,098.02 184618 06-010474 REPAIRS AND MAINTENANCE 1,693.66
184686 06-010474 REPAIRS AND MAINTENANCE 838.45
Total: 3,630.13
303723 6/2/2026 007558 SUBSTANCES CONTROL, DEPARTMENT 25SM4002 11-002572 ALAMEDA TRIANGLE - DTSC 3,209.40 Total: 3,209.40
303724 6/2/2026 002938 TAJ OFFICE SUPPLY 07909 06-010476 OPERATING SUPPLIES 52.05 Total: 52.05
303725 6/2/2026 012294 TRANSTECH ENGINEERS, INC. 20263092 06-010318 PROF & CONTRACTUAL SERVICES 13,280.00 20263093 06-010318 PROF & CONTRACTUAL SERVICES 1,470.00 20263094 06-010318 PROF & CONTRACTUAL SERVICES 420.00
Total: 15,170.00
303726 6/2/2026 012489 TRIPEPI, SMITH AND ASSOCIATES 16136 01-001903 MEDIA RELATIONS 100.41 Total: 100.41
303727 6/2/2026 008828 TURF SPECIAL TIES, INC, PROFESSIONAL 7278 08-005455 LYNWOOD CITY PARK- BASEBALL 26,800.00 Total: 26,800.00
303728 6/2/2026 007742 ULINE, INC. 203405521 08-005408 OPERATING SUPPLIES 1,228.04 207484315 06-010481 OPERATING SUPPLIES 298.59
Page: 19
388
vchlist Check List Page: 20
05/11/2026 3:34:26PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount --
303728 6/2/2026 007742 007742 ULINE, INC. (Continued) Total: 1,526.63 303729 6/2/2026 000166 UNDERGROUND SERVICE ALERT/SC 25-263634 06-010482 UNDERGROUND SERVICE ALERT 72.94 420260450 06-010482 UNDERGROUND SERVICE ALERT 326.05
Total: 398.99
303730 6/2/2026 013465 UNION PACIFIC RAILROAD COMPANY 90155011 06-009387 PRELIMINARY ENGINEERING 5,688.18 90155011-1 06-010541 PRELIMINARY ENGINEERING 1,027.26
Total: 6,715.44
303731 6/2/2026 015024 VALDEZ, MARISSA 003854-0001 REFUNDABLE DEPOSIT-BATEMAN 200.00 Total: 200.00
303732 6/2/2026 006136 VASQUEZ & COMPANY LLP 2260530-IN 02-002710 AUDITING SERVICES 825.00 Total: 825.00
303733 6/2/2026 014061 VCA ANIMAL HOSPITALS INC 5869814215 11-002569 ANIMAL EMERGENCY VET 1,198.14 5869814218 11-002569 ANIMAL EMERGENCY VET 476.40
5869814219 11-002569 ANIMAL EMERGENCY VET 476.40
5869814220 11-002569 ANIMAL EMERGENCY VET 476.40
5869814222 11-002569 ANIMAL EMERGENCY VET 476.40
5869814725 11-002569 ANIMAL EMERGENCY VET 3,000.00
Total: 6,103.74
303734 6/2/2026 000040 WAXIE SANITARY SUPPLY 83901267 06-010486 JANITORIAL SUPPLIES 2,621.70 Total: 2,621.70
303735 6/2/2026 007609 WILLDAN FINANCIAL SERVICES 010-65766 11-002474 USER FEE/IMPACT FEE STUDY 645.00 Total: 645.00
303736 6/2/2026 015066 WILSON, ROBERT 015066-041026 REIMBURSEMENT-MILEAGE 220.87 Total: 220.87
303737 6/2/2026 013287 WINSTAR DONUTS 399197 08-005421 SPECIAL EVENTS 80.20 Total: 80.20
Page: 20
389
vchlist Check List Page: 21
05/21/2026 3:16:56PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount --
303747 6/2/2026 000743 ADMINISTRATIVE SVCS. CO-OP 2604015 08-005438 DIAL A RIDE PROGRAM 15,868.71 Total: 15,868.71
303748 6/2/2026 007439 ALL CITY MANAGEMENT SVCS, INC. PS-INV105661 11-002460 PROF & CONTRACTUAL SERVICES 17,987.98 PS-I NV106008 11-002460 PROF & CONTRACTUAL SERVICES 17,987.98 Total: 35,975.96
303749 6/2/2026 014963 ALUMINUM ATHLETIC EQUIPMENT CO INV-116345 08-005441 EQUIPMENT FOR RECREATION 2,370.00 Total: 2,370.00
303750 6/2/2026 010746 ALVAREZ-GLASMAN & COLVIN 2026-01-21700-CM 01-001901 LEGAL SERVICES 7,253.50 2026-01-21700-CO 01-001901 LEGAL SERVICES 9,535.00
2026-02-21720-CM 01-001901 LEGAL SERVICES 15,251.50
2026-02-21720-CO 01-001901 LEGAL SERVICES 6,329.50
2026-02-21720-REC 01-001901 LEGAL SERVICES 94.00
2026-02-21721-Cannab 01-001878 LEGAL SERVICES 2,326.50
Total: 40,790.00
303751 6/2/2026 002452 AMERICAN LANGUAGE SVCS. 93370 01-001879 PROF & CONTRACTUAL SERVICES 311.90 93395 01-001879 PROF & CONTRACTUAL SERVICES 424.50
Total: 736.40
303752 6/2/2026 011094 AM-TEC TOTAL SECURITY, INC. 648081 ALARM MONITORING SERVICE 91.50 Total: 91.50
303753 6/2/2026 013882 ANTHEM SPORTS 456002 EQUIPMENT FOR BASEBALL 1,194.01 Total: 1,194.01
303754 6/2/2026 004285 AVANT GARDE, INC. 13085 06-010599 PROF & CONTRACTUAL SERVICES 900.00 13086 06-010583 PROF & CONTRACTUAL SERVICES 1,512.00
Total: 2,412.00
303755 6/2/2026 014330 AZTECA PARTY RENTAL, INC F595C592 EVENT SERVICE EXPENSE 592.50 Total: 592.50
303756 6/2/2026 015071 AZTECA SOCCER INC 4272026 SUPPLIES EXPENSE FOR MLS GO 1,355.81 Page: 21
390
vchlist Check List Page: 22
05/21/2026 3:16:56PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount --
303756 6/2/2026 015071 015071 AZTECA SOCCER INC (Continued) Total: 1,355.81 303757 6/2/2026 000884 BLUE DIAMOND MATERIALS 4520799 06-010491 OPERATING SUPPLIES 926.07 Total: 926.07
303758 6/2/2026 005848 BOWMAN INFRASTRUCTURE ENG LTD 556377 06-010088 PROF & CONTRACTUAL SERVICES 17,000.00 Total: 17,000.00
303759 6/2/2026 000300 BUBBS HARDWARE 343 06-010425 MATERIALS AND SUPPLIES 6.63 344 06-010425 MATERIALS AND SUPPLIES 19.41
345 06-010425 MATERIALS AND SUPPLIES 10.97
346 06-010425 MATERIALS AND SUPPLIES 8.71
Total: 45.72
303760 6/2/2026 015075 BURGIN, RICHARD 0037 41-0003 REFUNDABLE DEPOSIT 4,000.00 Total: 4,000.00
303761 6/2/2026 007782 CAMACHO, GABRIELA 007782-063026 ELECTRONIC/MEDIA AND AUTO 500.00 Total: 500.00
303762 6/2/2026 001552 CARRILLO, ROSALIA 001552-050726 REIMBURSEMENT-MOTHER'S DAY 78.28 Total: 78.28
303763 6/2/2026 000702 CINTAS DOCUMENT MANAGEMENT 8408300281 05-002001 SUPPLIES EXPENSE 874.93 Total: 874.93
303764 6/2/2026 007129 CODE PUBLISHING COMPANY, INC. GC00134947 ANNUAL WEB FEE 940.00 Total: 940.00
303765 6/2/2026 014709 COMPANY, LLC, SPRINGBROOK INV-023706 02-002705 SUBSCRIPTION FOR SERVICES 71,431.20 Total: 71,431.20
303766 6/2/2026 010754 COOL IMAGE WATER, DBA/ AMERICAN 2882 08-005390 WATER SERVICES 49.50 2886 08-005390 WATER SERVICES 33.00
2888 WATER SERVICES 115.50
2891 08-005390 WATER SERVICES 16.50
Total: 214.50
Page: 22
391
vchlist Check List Page: 23
05/21/2026 3:16:56PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount 303767 6/2/2026 001306 CORELOGIC SOLUTIONS, LLC. 30863314 PROPERTY LOOKUP SERVICE 298.53 Total: 298.53
303768 6/2/2026 015079 CORONA, ALBA 003856-0016 REF\JNDABLE DEPOSIT 2,180.00 Total: 2,180.00
303769 6/2/2026 014521 CORP, KITTRICH 1571470 SHIRTS FOR YOUTH BASKETBALL 643.86 Total: 643.86
303770 6/2/2026 013751 CUELLAR, LUIS GERARDO 013751-063026 ELECTRONIC/MEDIA AND AUTO 500.00 Total: 500.00
303771 6/2/2026 013973 ENTERPRISE FM TRUST FBN5636231 06-010436 PROF & CONTRACTUAL SERVICES 33,128.28 Total: 33,128.28
303772 6/2/2026 009633 EVENT STEP AND REPEAT 21990 EVENT SERVICE EXPENSE 272.51 Total: 272.51
303773 6/2/2026 015080 FARGOSO, LATASIA 003935-0049 REFUNDABLE DEPOSIT- AVALOS 200.00 Total: 200.00
303774 6/2/2026 006902 FULMORE, DENNIS 006902-042526 EVENT SERVICE EXPENSE 375.00 006902-050826 EVENT SERVICE EXPENSE 375.00
006902-050926 EVENT SERVICE EXPENSE 375.00
Total: 1,125.00
303775 6/2/2026 003983 GALLS QUARTERMASTER 034853301 11-002506 SUPPLIES EXPENSE 170.60 034867517 11-002506 SUPPLIES EXPENSE 170.60
034867519 11-002506 SUPPLIES EXPENSE 1,656.32
034867522 11-002506 SUPPLIES EXPENSE 1,489.51
034871962 11-002506 SUPPLIES EXPENSE -1 ,489.51
034881220 11-002506 SUPPLIES EXPENSE 79.80
034881345 11-002506 SUPPLIES EXPENSE 104.98
034894358 11-002506 SUPPLIES EXPENSE 1,237.57
034909073 11-002506 SUPPLIES EXPENSE 170.60
Total: 3,590.47
303776 6/2/2026 000593 GLADWELL GOVERNMENTAL SVCS.INC 6078 RECORDS RETENTION LEGAL 400.00 Page: 23
392
vchlist Check List Page: 24
05/21/2026 3:16:56PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount - -
303776 6/2/2026 000593 000593 GLADWELL GOVERNMENTAL (Continued) Total: 400.00 303777 6/2/2026 013694 GLOBAL URBAN STRATEGIES, INC 1170 11-002463 CALHOME GRANT PROGRAM 2,375.00 1171 11-002463 CALHOME GRANT PROGRAM 612.50
1172 11-002463 CALHOME GRANT PROGRAM 450.00
Total: 3,437.50
303778 6/2/2026 014112 GONZALEZ, CHLOE 014112-053126 08-005400 PROF & CONTRACTUAL SERVICES 912.00 Total: 912.00
303779 6/2/2026 000993 GRM INFORMATION MANAGEMENT 0551263-0551277 01-001886 STORAGE FEE 940.20 0552971 05-002008 STORAGE FEE 19.64
0553144 STORAGE FEE 202.41
Total: 1,162.25
303780 6/2/2026 009832 HARDING, ELIZABETH B. 009832-043026 PROF & CONTRACTUAL SERVICES 170.00 Total: 170.00
303781 6/2/2026 001681 HUMAN SERVICES ASSOCIATION 04302526 08-005443 SENIOR MEAL PROGRAM 2,723.75 Total: 2,723.75
303782 6/2/2026 000353 INFOSEND, INC. 309122 02-002713 PRINTING/MAILING OF UTILITY 3,634.61 Total: 3,634.61
303783 6/2/2026 013434 KILEY & ASSOCIATES,LLC 56 01-001888 PROF & CONTRACTUAL SERVICES 5,000.00 Total: 5,000.00
303784 6/2/2026 003331 L.A. COUNTY SHERIFF DEPT. 262652AY 08-005420 LAW ENFORCEMENT SERVICES 1,809.08 262699AY 01 -001890 LAW ENFORCEMENT SERVICES 6,918.22
262700AY 01-001890 LAW ENFORCEMENT SERVICES 5,440.54
262701AY 01-001890 LAW ENFORCEMENT SERVICES 7,657.06
262702AY 01 -001890 LAW ENFORCEMENT SERVICES 5,742.80
262776AY 01-001889 LAW ENFORCEMENT SERVICES 1 , 143,096.22 262777AY 01-001890 LAW ENFORCEMENT SERVICES 25,114.82
Total: 1,195,778.74
303785 6/2/2026 015081 LEWIS, JOSHUA 003774-0067 REFUNDABLE DEPOSIT- BATEMAN 100.00 Page: 24
393
vchlist Check List Page: 25
05/21/2026 3:16:56PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount 303785 6/2/2026 015081 015081 LEWIS, JOSHUA (Continued) Total: 100.00 303786 6/2/2026 002683 MAY TOOL INC. 209254-A 06-010516 OPERATING SUPPLIES, REPAIRS 720.00 Total: 720.00
303787 6/2/2026 015064 MCCI, LLC NE28699 LASERFICHE TRANSCRIPTION 1,312.50 Total: 1,312.50
303788 6/2/2026 015031 MITCHELLE, SHANIQUCA 003896-0098 REFUNDABLE DEPOSIT- BATEMAN 200.00 Total: 200.00
303789 6/2/2026 015030 MONETTE, DIANA 003869-0036 REFUNDABLE DEPOSIT- BATEMAN 400.00 Total: 400.00
303790 6/2/2026 014469 MOORE, LORRAINE 014469-063026 ELECTRONIC/MEDIA AND AUTO 500.00 Total: 500.00
303791 6/2/2026 013721 MUNOZ-GUEVARA, JUAN 013721-063026 ELECTRONIC/MEDIA AND AUTO 500.00 Total: 500.00
303792 6/2/2026 000475 NATIONWIDE ENVIRONMENTAL SVCS. 35559 06-010457 PROF & CONTRACTUAL SERVICES 31,063.02 35559-1 11-002566 PROF & CONTRACTUAL SERVICES 30,000.00 35560 11-002566 PROF & CONTRACTUAL SERVICES 3,341.41
35582 06-010457 PROF & CONTRACTUAL SERVICES 8,794.98
Total: 73,199.41
303793 6/2/2026 014574 NUNEZ, MAURICIO 014574-051226 COMMISSIONER STIPEND 50.00 Total: 50.00
303794 6/2/2026 000078 ODP BUSINESS SOLUTIONS,LLC 466332554001 OFFICE SUPPLIES 47.61 466334154001 OFFICE SUPPLIES 55.81
466380843002 OFFICE SUPPLIES 24.99
466383346001 OFFICE SUPPLIES 55.09
466906589001 OFFICE SUPPLIES 87.68
466906942001 OFFICE SUPPLIES 61.13
Total: 332.31
303795 6/2/2026 014964 PACIFIC WEST AIR CONDITIONING 2-040126 06-010606 SENIOR CENTER HVAC 30,875.00 Page: 25
394
vchlist Check List Page: 26
05/21/2026 3:16:56PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount 303795 6/2/2026 014964 014964 PACIFIC WEST AIR CONDITIONING (Continued) Total: 30,875.00 303796 6/2/2026 015032 PARKER, LATOYA 003953-0016 REFUNDABLE DEPOSIT- BATEMAN 100.00 Total: 100.00
303797 6/2/2026 014025 PARTY WHOLESALE USA LLC 64247515 08-005417 CITY-WIDE SPECIAL EVENTS 476.30 Total: 476.30
303798 6/2/2026 013659 PAX8 INC 2026-1-1428484 OFFICE 365 EXCHANGE ONLINE 191.09 Total: 191.09
303799 6/2/2026 010945 PETDATA, INC. 15155 11-002504 PET LICENSING SERVICES 500.00 Total: 500.00
303800 6/2/2026 008307 PHOENIX GROUP INFORMATION SYS 0320261204 11-002467 PROF & CONTRACTUAL SERVICES 652.07 032026204 11-002467 PROF & CONTRACTUAL SERVICES 26,358.75 032026902 11-002467 PROF & CONTRACTUAL SERVICES 665.42
Total: 27,676.24
303801 6/2/2026 014580 PINA, JOSE LUIS 014580-051226 COMMISSIONER STIPEND 50.00 Total: 50.00
303802 6/2/2026 015033 PITTS, PAMELA 003508-004 7 REFUNDABLE DEPOSIT-BATEMAN 200.00 Total: 200.00
303803 6/2/2026 001057 RAMIREZ, JUAN E. 260514 03-000461 PROF & CONTRACTUAL SERVICES 546.00 Total: 546.00
303804 6/2/2026 014586 RIVERA, RUBY 014586-051226 COMMISSIONER STIPEND 50.00 Total: 50.00
303805 6/2/2026 015070 RODRIGUEZ, BRYAN 444132390 REFUND-PARKING CITATION 146.00 Total: 146.00
303806 6/2/2026 015035 SALAS, SEQOUIA 003881-0022 REFUNDABLE DEPOSIT- BATEMAN 200.00 Total: 200.00
303807 6/2/2026 010757 SALAZAR RIVERO, YUNUEE 010757-050226 EVENT SERVICE EXPENSE 375.00 Page: 26
395
vchlist Check List Page: 27
05/21/2026 3:16:56PM City of Lynwood
Bank code: c-ap01
Voucher Date Vendor Invoice PO# Description/Account Amount 303807 6/2/2026 010757 010757 SALAZAR RIVERO, YUNUEE (Continued) Total: 375.00 303808 6/2/2026 008745 SAN FRANCISCO LAUNDRY 71259 DRY CLEANING OF LINEN 244.87 Total: 244.87
303809 6/2/2026 007205 SANCHEZ AWARDS 2888 08-005435 SPECIAL EVENTS/ AWARDS 287.95 Total: 287.95
303810 6/2/2026 015074 SANCHEZ, LILIANA 003675-0057 REFUNDABLE DEPOSIT 3,280.00 Total: 3,280.00
303811 6/2/2026 012692 SOTO, RITA 012692-063026 ELECTRONIC/MEDIA AND AUTO 500.00 Total: 500.00
303812 6/2/2026 014812 SOUTHWEST PATROL, INC 82303 11-002535 PROF & CONTRACTUAL SERVICES 16,640.00 82514 11-002535 PROF & CONTRACTUAL SERVICES 19,200.00
82592 11-002535 PROF & CONTRACTUAL SERVICES 20,480.00
82633 08-005436 PROF & CONTRACTUAL SERVICES 2,340.00
82797 11-002535 PROF & CONTRACTUAL SERVICES 19,840.00
82798 08-005436 PROF & CONTRACTUAL SERVICES 1,240.00
82827 08-005436 PROF & CONTRACTUAL SERVICES 2,120.00
82889 11-002535 PROF & CONTRACTUAL SERVICES 19,200.00
82890 08-005436 PROF & CONTRACTUAL SERVICES 960.00
83025 08-005436 PROF & CONTRACTUAL SERVICES 1,640.00
Total: 103,660.00
303813 6/2/2026 015029 TASSIN, DAJAH 003938-0044 REFUNDABLE DEPOSIT- SENIOR 200.00 Total: 200.00
303814 6/2/2026 012294 TRANSTECH ENGINEERS, INC. 20263737 06-010318 PROF & CONTRACTUAL SERVICES 14,080.00 20263739 06-010318 PROF & CONTRACTUAL SERVICES 6,203.00 Total: 20,283.00
303815 6/2/2026 007742 ULINE, INC. 207654792 08-005408 SUPPLIES EXPENSE 1,753.05 Total: 1,753.05
303816 6/2/2026 014061 VCA ANIMAL HOSPITALS INC 5869815056 11-002569 ANIMAL SERVICE EXPENSE 476.40 5869816056 11-002569 ANIMAL SERVICE EXPENSE 476.40
Page: 27
396
vchlist
05/21/2026
Bank code:
Voucher
303816
303817
303818
303819
303820
303821
3:16:56PM
c-ap01
Date Vendor
6/2/2026 014061 VCA ANIMAL HOSPITALS INC
6/2/2026 015082 VERGARA, MYRNA
6/2/2026 014116 W.G. ZIMMERMAN ENGINEERING INC
6/2/2026 002912 WATERLINE TECHNOLOGIES.INC
6/2/2026 014570 WATKINS, MISHAUN
6/2/2026 008846 YANEZ, JACQUELINE
156 Vouchers for bank code : c-ap01
Check List
City of Lynwood
Invoice
(Continued)
5869816057
5869816189
5869816309
5869816522
003835-0030
25-11-907
26-01-951
26-04-050
26-04-051
26-04-052
5792988
5792989
5793883
5793884
5793918
014570-051226
008846-050926
Page: 28
PO# Description/Account Amount
11-002569 ANIMAL SERVICE EXPENSE 476.40
11-002569 ANIMAL SERVICE EXPENSE 667.36
11-002569 ANIMAL SERVICE EXPENSE 2,513.31
11-002569 ANIMAL SERVICE EXPENSE 3,114 .73
Total: 7,724.60
REFUNDABLE DEPOSIT-BATEMAN 600.00
Total: 600.00
06-010548 PROF & CONTRACTUAL SERVICES 157.50
06-010548 PROF & CONTRACTUAL SERVICES 12,240.00
06-010548 PROF & CONTRACTUAL SERVICES 6,287.00
06-010548 PROF & CONTRACTUAL SERVICES 3,160.00
06-010548 PROF & CONTRACTUAL SERVICES 2,380.00
Total: 24,224.50
06-010485 OPERATING SUPPLIES 338.90
06-010485 OPERATING SUPPLIES 982.80
06-010485 OPERATING SUPPLIES 440.56
06-010485 OPERATING SUPPLIES 393.12
06-010485 OPERATING SUPPLIES 847.24
Total: 3,002.62
COMMISSIONER STIPEND 50.00
Total: 50.00
EVENT SERVICE EXPENSE 425 .00
Total: 425.00
Bank total: 2,266,982.50
Page: 28
397
AGENDA STAFF REPORT
DATE:
June
2, 2026
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Suja Lowenthal, City Manager
PREPARED BY:
Shanell Shipe, Assistant to the City Manager
SUBJECT:
RATIFICATION OF LETTER OF OPPOSITION FOR ASSEMBLY BILL
1383 (AB 1383)
Agenda Item # 9.2.
Recommendation:
Staff recommends that the City Council:
1 .
Ratify the Mayor’s previously approved and submitted letter of opposition for Assembly Bill 1383 (McKinnor), which was transmitted to meet legislative deadlines; and 2 .
Receive and file this report.
Executive Summary:
The City of Lynwood regularly expresses its support or opposition regarding legislative matters that impact the City. As recommended by staff, a letter of opposition for Assembly Bill 1383 (McKinnor) was previously approved and submitted to meet legislative deadlines. AB 1383 is currently being considered by the Senate Labor, Public Employment and Retirement Committee. This item is presented for City Council ratification of that action and formal inclusion in the public record.
Assembly Bill 1383 would make several significant changes to the Public Employees’ Pension Reform Act (PEPRA), including increasing pensionable compensation caps and modifying retirement formulas for public safety employees. While intended to support recruitment and retention of essential public safety personnel, the bill would substantially increase pension costs for cities and other public agencies and create long-term fiscal pressures that could negatively impact essential municipal services. (CM)
Background:
City Council City Council Regular Meeting 398
The Legislature of the State of California periodically proposes legislation addressing public employment, retirement systems, and local government operations. These measures often affect cities’ fiscal obligations, workforce management, and long-term financial planning.
The Public Employees’ Pension Reform Act (PEPRA), enacted in 2013, established comprehensive pension reforms intended to improve the long-term sustainability of California’s public retirement systems and reduce unfunded liabilities for public agencies. PEPRA was designed to address a broad range of pension-related issues and represented a significant step toward helping local agencies better manage future pension obligations while protecting the long-term solvency of the California Public Employees’ Retirement System (CalPERS).
According to the League of California Cities (Cal Cities), PEPRA reforms have generated an estimated $5.8 billion in savings to date and are projected to generate approximately $26.5 billion in savings over the next ten years. These reforms have served as an important fiscal management tool for cities already facing increasing pension obligations and budgetary pressures.
Past Council Actions
Meeting Date
Description
February 17, 2026
RECEIVE AND FILE: MAYOR'S LETTER OPPOSING
PROPOSED COUNTY SALES TAX MEASURE
April 7, 2026
RATIFICATION OF LETTER OF SUPPORT FOR
ASSEMBLY BILL 2396
(AB 2396)
April 21, 2026
RATIFICATION OF LETTER OF OPPOSITION FOR
SENATE BILL 866 (SB866)
Discussion and Analysis:
AB 1383 would make several substantial changes to PEPRA that would increase pension- related costs for cities and other public employers throughout California.
Specifically, the bill would increase the pensionable compensation cap for PEPRA public employees and reduce the retirement age for public safety employees from age 57 to age 55 on a prospective basis. In addition, the bill would establish a new fourth-tier public safety retirement formula of 3% at age 55, subject to collective bargaining agreements.
The bill would also authorize local agencies to prospectively modify local pension formulas and benefit structures moving forward. While intended to provide flexibility to local agencies and support recruitment and retention efforts for public safety personnel, the cumulative impact of these changes would significantly increase employer contribution rates and long- term pension liabilities.
Cities throughout California are already facing increasing pension obligations, stagnant City Council City Council Regular Meeting 399
1. AB 1383 (McKinnor) - Letter of Opposition.pdf
revenues, and expanding federal and state mandates that place significant pressure on local budgets. The fiscal volatility in the market, combined with the increased benefit costs associated with AB 1383, could lead to serious long-term cost increases for local governments and further strain municipal finances.
Higher pension costs could reduce cities’ ability to maintain core services, staffing levels, workforce compensation, infrastructure investments, and community programs. Additionally, modifying key provisions of PEPRA would undermine more than a decade of pension reform efforts that were implemented to improve fiscal sustainability and stabilize public retirement systems.
While the City supports competitive recruitment and retention for all public employees, staff believes AB 1383 represents an unfunded mandate that does not adequately balance sustainable retirement benefits with taxpayer fairness and long-term financial stability.
The League of California Cities is also conducting a statewide survey to evaluate the potential fiscal impacts of AB 1383 on city budgets, staffing, and municipal services. The survey is intended to estimate city-level cost exposure, identify impacts on workforce and service delivery, and assist advocacy efforts regarding the legislation.
Fiscal Impact:
There is no immediate fiscal impact associated with the recommended action.
Coordinated With:
City Manager's Office
City Attorney's Office
ATTACHMENTS:
Description
City Council City Council Regular Meeting 400
May 26, 26
The Honorable Tina McKinnor
Chair, Assembly Committee on Public Employment and Retirement 1020 N Street, Room 153
Sacramento, CA 95814
RE: AB 1383 (McKinnor) Public employees’ retirement benefits.
OPPOSE (As Amended May 13, 2026)
Dear Assembly Member McKinnor,
The City of Lynwood must respectfully oppose AB 1383, which would make several significant changes to public employees’ retirement benefits and lead to increased pension liability for public agencies.
The Public Employees’ Pension Reform Act (PEPRA) was designed to address a wide range of issues involving public employee pensions and was a major step in helping local agencies better manage future pension costs and prevent the California Public Employees Retirement System from sliding into insolvency. AB 1383 would upend many of the reforms put in place in 2013 by PEPRA.
While we recognize and appreciate the intent of the bill to support recruitment and retention of essential public safety professionals, the bill would increase mandated costs without funding. The potential cost of this bill comes at a time of uncertainty. The fiscal volatility in the market compounded with the increased benefit costs from this bill could lead to serious cost increases for local government.
While our city supports competitive recruitment and retention for all public employees, AB 1383 represents an unfunded mandate that fails to balance sustainable retirement benefits with taxpayer fairness and long -term financial stability.
For these reasons, the City of Lynwood respectfully opposes AB 1383.
Incorporated 1921
Strength Through Community
11330 Bullis Road, Lynwood, CA 90262
(310) 603-0220 x 200
OFFICE OF THE
CITY COUNCIL
401
Sincerely,
Gabriela Camacho
Mayor
City of Lynwood
Cc: The Honorable Tina McKinnor , Chair, Assembly Committee on Public Employment and Retirement
Honorable Members, Senate Labor, Public Employment and Retirement Committee
Senator Lena Gonzalez, Senate District 33
Assemblymember Jose Luis Solache, Assembly District 62
Nicholas Cabeza, Regional Public Affairs Manager (via email) League of California Cities, (via email: [email protected])
402
AGENDA STAFF REPORT
DATE:
June
2, 2026
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Suja Lowenthal, City Manager
PREPARED BY:
Carol Molina, Interim Director of Finance and Administration SUBJECT:
ANNUAL RETIREMENT FUND TAX LEVY CERTIFICATION
Agenda Item # 9.3.
Recommendation:
Staff recommends the City Council adopt a resolution (
Attachment 2
) declaring its intention to
order the levy and collection of taxes for the City’s contribution to the Retirement Fund.
Executive Summary:
Each year, the City of Lynwood is required to certify its retirement property tax rate to the County of Los Angeles for inclusion on property tax bills. The retirement tax was approved by Lynwood voters in 1946 to support City employees’ retirement costs and contributions to the State-administered retirement system (CalPERS). Pursuant to a 1998 court settlement, the tax rate is fixed at $0.125 per $100 of assessed valuation. Adoption of the proposed resolution authorizes the annual certification of this rate to the County for collection in the upcoming fiscal year. (FIN)
Background:
On April 16, 1946, the City of Lynwood’s residents approved and adopted a property levy tax (Retirement Tax). The City’s retirement tax was approved by voters to support City employees’ and former public safety employees’ retirement costs and contributions to the City’s State- administered retirement system (CalPERS). On October 13, 1998, the City Council adopted Resolution No. 98-177, approving a settlement in the matter of Howard Jarvis Taxpayers Association v. City of Lynwood. One of the conditions of the settlement was to fix the rate of City Council City Council Regular Meeting 403
1. Reso No. 98-177.pdf
2. Reso_Retirement Fund Tax Levy_260602.pdf
the tax related to the Retirement Fund at $0.125 per $100 of assessed valuation.
Discussion and Analysis:
Each year, the City is required to submit a formal statement, certified by the City Clerk, to the County of Los Angeles for inclusion of the City’s tax rate on the property tax bills. The City Clerk certifies that the City Council has approved the property tax rate for the upcoming fiscal year and forwards a copy of the approved resolution or ordinance establishing the tax rate to the County of Los Angeles.
The City also submits to the County of Los Angeles the required CR52 Report A Input Form certifying the retirement tax rate of 0.125000 ($0.125 per $100 of assessed valuation), together with the City Council resolution and the City Clerk’s certification of the resolution.
Fiscal Impact:
There is no fiscal impact associated with the recommended action.
Coordinated With:
City Manager’s Office
Finance and Administration Department
ATTACHMENTS:
Description
City Council City Council Regular Meeting 404
RESOLUTION 98- 177
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LYNWOOD ADJUSTING THE RATE OF
AND LEVYING TAXES FOR THE CITY'S
CONTRIBUTION TO THE RETIREMENT FUND.
WHEREAS, on April 16, 1946, the electors of the City of Lynwood adopted Ordinance No. 426, that approved the State Employees' Retirement system as the retirement system for officials and employees of the City of Lynwood and authorized the City Council to levy taxes to maintain the City's share of contributions to that retirement system; anii
WHEREAS, On November 4, 1974, the electors of the City of Lynwood adopted Ordinance No. 975, that amended Ordinance No. 426, as well as the contract between the Cfty and the Public Employees Retirement system, to include improved retirement benefits for local safety members in the City of Lynwood and further authorized the City Council to levysuch taxes as may be determined to maintain the City's share of those improvedbenefits; and
WHEREAS, on August 6, 1997, the City Council adopted Resolution No. 97- 124, adjusting the rate of the tax levy to pay for the costs and expenses related to the maintenance and operations of the Retirement Fund during prior years; and WHEREAS, on October 13 , 1998, the City Council adopted Resolution No. 96-177 , approving a settlement in the matter of Howard Jarvis Taxpayers Association v. City of Lynwood; and
WHEREAS, one of the conditions of the settlement is to fix the rate of tax to be collected for the costs and expenses related to the Retirement Fund at $ 0. 125 per r . $
100 of assessed valuation.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES RESOLVE AS FOLLOWS:
Section 1. The specfic rate of the tax to be collected to pay for the costs and expenses related to the Retirement Fund for fiscal year 1998- 1999 is hereby determined and established as $ 0. 125 for each $ 100 of assessed valuation.
Section 2. The tax shall be collected in the same manner as ordinary ad valorem property taxes are collected.
Section 3. The Auditor- Conroller of Los Angeles County is requested to enter on the next County assessment roll on which taxes will become due, opposite each lot or parcel of land affected, the installment of the tax that is then due and the rate of that tax.
July 1, 1998.
eetion 4. The effective date of the new tax rate, as established herein, is ection 5. The City Clerk is directed to certify to the passage and adoption of this resolution and to transmit a cert~ed copy of this resolution to the Auditor- Controller of Los Angeles County.
PASSED, APPROVED AND ADOPTED this 13th day of October 1998. 1 ~.
Armando Rea, Mayor
City of Lynwood
405
ATTEST:
ANDREA L. HOOPER, City Clerk
City of Lynwood
APPROVED AS TO FORM:
CCL ~_c
City Attorney
City of Lynwood
STATE OF CALIFORNIA )
Ss.
COUNTY OF LOS ANGELES )
APPROVED AS TO CONTENT:
1 RAL H . D III
Interim City Manager
Alf tt F. Earnest
Director of Finance
I, the undersigned,-City Clerk of the City of Lynwood, do hereby certify that the foregoing resolution was passed and adopted by the City Council of the City of Lynwood at a regular meeting held on the 13th day of October , 1998.
AYES' COUNCILMAN BYRD, SANCHEZ, REA
NOES: COUNCILMAN RICHARDS, REA
ABSENT: NONE
City Clerk, City of Lynwood
STATE OF CALIFORNIA )
Ss.
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. 98- 177 on file in my office and that said resolution was adopted on the date and by the vote therein stated. Dated this lath day of October , 1998.
4 City Clerk, City of Lynwood
406
RESOLUTION NO. _____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD DECLARING
ITS INTENTION TO ORDER THE LEVY AND COLLECTION OF TAXES FOR THE CITY’S CONTRIBUTION TO THE RETIREMENT FUND
WHEREAS, on April 16, 1946, the electors of the City of Lynwood adopted Ordinance No. 426, that approved the State Employees’ Retirement system as the retirement system for officials and employees of the City of Lynwood and authorized the City Council to levy taxes to maintain the City’s share of contributions to the retirement system; and
WHEREAS, on November 4, 1974, the electors of the City of Lynwood adopted Ordinance No. 975, that amended Ordinance No. 426, as well as the contract between the City and the Public Employees Retirement system, to include improved retirement benefits for local safety members in the City of Lynwood and further authorized the City Council to le vy such taxes as may be determined to maintain the City’s share of those improved benefits; and
WHEREAS, on August 6, 1997, the City Council adopted Resolution No. 97- 124, adjusting the rate of the tax levy to pay for the costs and expenses relating to the maintenance and operations of the Retirement Fund; and
WHEREAS, on October 13, 1998, the City Council adopted Resolution No. 98- 177, adjusting the rate of and levying taxes for the City’s contribution to the retirement fund and approving a settlement in the matter of Howard Jarvis Taxpayers Association v.
City of Lynwood; and
WHEREAS, one of the conditions of the settlement in the matter of Howard Jarvis Taxpayers Association v . City of Lynwood was to fix the rate of the tax related to the Retirement Fund at $0.125 per $100 of assessed valuation; and
WHEREAS, the County of Los Angeles requires the City to approve the tax rate annually.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Lynwood hereby finds and declares that foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. The specific rate of the tax to be collected to pay for the costs and expenses related to the Retirement Fund for fiscal year 2026-27 is hereby determined and established as $0.125 for each $100 of assessed valuation.
407
Section 3. The tax shall be collected in the same manner as ordinary ad valorem property taxes are collected.
Section 4. The Auditor-Controller of Los Angeles County is requested to enter on the next County assessment roll on which taxes will become due, opposite each lot or parcel of land affected, the installment of the tax that is then due and the rate of that tax.
Section 5. The City Clerk is directed to certify to the passage and adoption of this resolution and to transmit a certified copy of this resolution to the Auditor -Controller of Los Angeles County.
Section 6. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.
Section 7. This Resolution shall take full force and effect immediately upon adoption by the City Council.
PASSED, APPROVED AND ADOPTED THIS 2
nd day of June, 2026.
______________________________
Gabriela Camacho
Mayor
ATTEST:
___________________________ ______________________________ Maria Quinonez Suja Lowenthal City Clerk C ity Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
___________________________ ______________________________ Noel Tapia Carol Molina
City Attorney Interim Director of Finance & Administration
408
STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a meeting held on the ___
nd day of _______, 2026.
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________
Maria Quiňonez,
City Clerk
STATE OF CALIFORNIA )
)
§
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution N o. 2026.XXX on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this ____ nd
day of _________, 2026.
___________________________
Maria Quiňonez,
City Clerk
409
AGENDA STAFF REPORT
DATE:
June
2, 2026
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Suja Lowenthal, City Manager
PREPARED BY:
Peter Han, Director of Information Technology
SUBJECT:
LEGISLATIVE BODY MEETING EQUIPMENT OUTAGE POLICY
Agenda Item # 9.4.
Recommendation:
Staff recommends the City Council adopt the Legislative Body Meeting Disruption and Equipment Outage Policy (
Attachment 1
), in compliance with Senate Bill 707, to establish
formal procedures for responding to technical disruptions during hybrid meetings and to preserve public access, transparency, and participation.
Executive Summary:
Senate Bill 707 (SB 707), signed into law on October 3, 2025, amends the Ralph M. Brown Act and, beginning July 1, 2026, imposes new hybrid meeting and teleconferencing requirements on eligible legislative bodies, including the City of Lynwood. Among other requirements, SB 707 mandates that the City Council, on or before July 1, 2026, approve at a noticed public meeting in open session a policy addressing the disruption of telephonic or internet services occurring during meetings subject to these provisions. The proposed Legislative Body Meeting Disruption and Equipment Outage Policy ( Attachment 1
) fulfills this
statutory requirement. The policy establishes clear procedures and staff responsibilities for identifying, responding to, and documenting technical disruptions, including audio loss, Zoom outages, captioning or translation failures, and network outages, that may affect the public’s ability to observe and participate in meetings. Adoption of the policy ensures that the City is in compliance with SB 707 prior to the July 1, 2026, effective date. (IT) Background:
City Council City Council Regular Meeting 410
SB 707 (Open Meetings: Meeting and Teleconference Requirements) amends the Ralph M.
Brown Act (Government Code Section 54950 et seq.) and was chaptered by the Secretary of State on October 3, 2025 (Chapter 327, Statutes of 2025). The legislation, which takes effect July 1, 2026, and remains in effect through January 1, 2030, imposes significant new meeting and teleconferencing requirements on eligible legislative bodies of local agencies. The City of Lynwood qualifies as an eligible legislative body under the statute. Among other provisions, SB 707 requires that all open and public meetings of eligible legislative bodies include an opportunity for members of the public to attend via a two-way telephonic service or two-way audiovisual platform, and that the agency take specified actions to encourage residents to participate in public meetings.
SB 707 specifically requires that, on or before July 1, 2026, each eligible legislative body approve at a noticed public meeting in open session a policy regarding disruption of telephonic or internet services occurring during meetings subject to the bill’s provisions. The statute further requires the legislative body to comply with specified disruption response requirements, including, for certain disruptions, recessing the open session for at least one hour and making a good-faith attempt to restore service. Adoption of the proposed policy at this meeting fulfills the statutory deadline and provides the framework for the City’s response to technical disruptions.
Because hybrid meetings rely on multiple technology systems—including audio/visual equipment, internet connectivity, live streaming platforms, remote conferencing software, and accessibility tools—technical disruptions may occasionally occur. Equipment outages or platform failures can affect the public’s ability to observe proceedings, provide public comment, or access language assistance services. In addition to the disruption policy required by this action, SB 707 imposes other compliance requirements on eligible legislative bodies, including translation of agendas into all applicable languages (which, based on Lynwood’s demographics, is anticipated to require Spanish translation of agendas beginning July 1, 2026) and expansion of the oral compensation report requirement to cover department heads and similar administrative officers. Staff will return to the City Council with separate actions to implement these additional SB 707 requirements before the July 1, 2026, effective date.
Discussion and Analysis:
The proposed Legislative Body Meeting Disruption and Equipment Outage Policy applies to all legislative bodies of the City subject to the Ralph M. Brown Act, including the City Council, boards, commissions, committees, and advisory bodies. The policy is designed to satisfy both the specific disruption-policy requirement of SB 707 and the broader Brown Act framework for hybrid meeting accessibility. Key provisions of the policy include: a clear definition of "disruption" covering loss of Zoom connectivity, audio or video failure, failure of Spanish captioning or translation, platform instability affecting two-way communication, and power or network outages; tiered response protocols establishing actions and timeframes for minor disruptions (five minutes or less), moderate disruptions (five to fifteen minutes), and major disruptions (more than fifteen minutes or loss of participation); an explicit one-hour recess procedure for major disruptions consistent with the statutory good-faith restoration requirement; public participation safeguards ensuring that missed speakers due to technical issues have an opportunity to speak later in the meeting or at the next meeting; defined roles City Council City Council Regular Meeting 411
1. Disruption and Equipment Outage Policy - Final 6.2.26 v2.docx for IT staff, the City Clerk or Clerk of the Board, and the Mayor or Presiding Officer during disruptions; cybersecurity and Zoom-bombing response procedures; accessibility safeguards specific to Spanish translation and ADA compliance; backup and continuity measures, including pre-meeting checklists and hot-standby equipment; documentation requirements for after-action reporting; and an annual policy review provision.
Adoption of the policy at this meeting positions the City to be in full compliance with the SB 707 disruption-policy requirement before the July 1, 2026, effective date. The policy is intended to support compliance with open meeting requirements, preserve meaningful public access and participation during hybrid meetings, maintain transparency, protect accessibility for Spanish-speaking and disabled members of the public, and provide staff with clear and consistent procedures during unexpected technical incidents. The policy includes an annual review provision so that it can be updated to reflect changes in state law, meeting technology, or operational experience.
Fiscal Impact:
There is no fiscal impact associated with the recommended action.
Coordinated With:
City Manager's Office
City Attorney's Office
City Clerk's Office
ATTACHMENTS:
Description
City Council City Council Regular Meeting 412
I. PURPOSE
This policy ensures continued public access, transparency, and participation and applies to all legislative bodies of the City subject to the Ralph M. Brown Act, including the City Council, boards, commissions, committees, and advisory bodies established by the City in the event of technical disruptions, consistent with state open meeting laws and SB 707 requirements.
This policy shall be interpreted consistent with the Ralph M. Brown Act (Government Code §§ 54950 et seq.), including teleconferencing and public participation provisions under Government Code § 54953, as amended.
II. REMOTE PUBLIC ACCESS REQUIREMENTS
A. Consistent with SB 707, the City emphasizes meaningful public access.
1. The public must be able to both hear and address the body,
2. Livestream alone is insufficient,
3. The inability to provide public comment remotely constitutes a disruption.
B. A meeting shall not be considered fully accessible if remote attendees can observe proceedings but are unable to provide real-time public comment.
III. MEETING FORMAT
City Council and Commission meetings are conducted in a hybrid format:
A. In-person at the designated Council Chambers or the Commission Meeting room.
B. Remote participation via Zoom.
C. Two-way public comment (in-person and remote).
D. Spanish translation for Council meetings provided in-person and via Zoom closed captioning.
CITY OF LYNWOOD
ADMINISTRATIVE POLICY
LEGISLATIVE BODY MEETING
EQUIPMENT OUTAGE POLICY
413
2 | P a g e
L e g i s l a t i v e B o d y M e e t i n g E q u i p m e n t O u t a g e P o l i c y
IV. ROLES AND RESPONSIBILITIES
A. IT Staff:
1. Set up and monitor Zoom meeting, audio/visual systems, and captioning
2. Troubleshoot issues in real time
3. Communicate technical status to the Mayor/Presiding Officer, City Manager, and City Clerk/Clerk of the Board.
B. City Clerk/Clerk of the Board:
1. Tracks speaker queue (in-person and remote)
2. Announces delays, disruptions, and procedural actions
C. Mayor/Presiding Officer:
1. Maintains order
2. Determines when to pause, recess, or continue meetings due to disruptions
V. DEFINITION OF DISRUPTION
A “disruption” includes, but is not limited to:
A. Loss of Zoom connectivity
B. Audio failure preventing the public from hearing proceedings
C. Video failure affecting public participation
D. Failure of Spanish captioning/translation (City Council meetings only)
E. Platform instability affecting two-way communication
F. Power or network outages
VI. RESPONSE PROTOCOLS
A. Minor Disruptions (≤ 5 minutes)
1. Examples: brief audio lag, temporary caption interruption Action:
IT staff attempts immediate fix and meeting may continue if:
• Audio remains intelligible
• Public participation is not significantly impacted
B. Moderate Disruptions (5–15 minutes)
1. Examples: Zoom disconnect, captioning failure, partial loss of participation 414
3 | P a g e
L e g i s l a t i v e B o d y M e e t i n g E q u i p m e n t O u t a g e P o l i c y
Action:
• Mayor/Presiding Officer announces a temporary pause
• IT staff troubleshoots
• Clerk informs public (in room and online)
If resolved within 15 minutes:
1. Meeting resumes
2. Additional time provided for missed public comment if needed
C. Major Disruptions (> 15 minutes or loss of participation) Examples:
1. Loss of Zoom platform preventing remote participation
2. Failure of two-way communication
3. Loss of translation services preventing meaningful access (City Council meetings only)
Action:
1. Mayor/Presiding Officer declares a recess
2. IT staff continues troubleshooting
If NOT resolved within 60 minutes:
1. The legislative body may have to cancel the re mainder of its meeting. If the meeting is adjourned remaining agenda items are continued to a future meeting
2. The Council may only proceed without remote participation if they formally vote that the public interest in continuing outweighs the delay.
3. During a significant technology outage preventing meaningful public participation, the legislative body should avoid taking substantive action items until access is restored or the meeting is continued.
VII. CYBERSECURITY / SECURITY EVENT SECTION
In the event of a cybersecurity threat or unauthorized disruption affecting the integrity or security of the meeting platform, the Mayor/Presiding Officer may temporarily suspend remote participation while IT staff implements corrective measures . These ev ents may include:
A. Zoom bombing
B. Malicious disruptions
C. Cybersecurity incidents
D. Unauthorized access attempts.
415
4 | P a g e
L e g i s l a t i v e B o d y M e e t i n g E q u i p m e n t O u t a g e P o l i c y
VIII. PUBLIC PARTICIPATION SAFEGUARDS
To comply with SB 707 principles:
A. Public must be able to observe AND participate remotely
B. If Zoom fails , the meeting cannot proceed with action items unless participation is restored
C. Missed speakers due to technical issues must be given an opportunity to speak later in the meeting or at the next meeting
IX. ACCESSIBILITY
A. Spanish Translation
1. Spanish captioning is considered an essential access service
2. If captioning fails:
o IT staff attempts immediate restart
o If not restored within 10–15 minutes, meeting is paused
3. If translation cannot be restored:
o Meeting should not proceed with public comment or action items
B. ADA
The City shall make reasonable efforts to ensure meetings remain accessible to persons with disabilities consistent with the Americans with Disabilities Act (ADA) and related accessibility laws, including but not limited to:
1. Auxiliary aids
2. Screen reader accessibility
3. Reasonable accommodations requests
4. Accessibility contact information.
X. BACKUP MEASURES
A. Pre-meeting checklist is required:
1. Test Zoom audio/video
2. Verify captioning function
3. Confirm internet stability
B. Backup options:
1. Secondary device logged into Zoom (hot standby)
2. Backup hotspot for internet
416
5 | P a g e
L e g i s l a t i v e B o d y M e e t i n g E q u i p m e n t O u t a g e P o l i c y
3. Printed agenda and speaker list for manual fallback
XI. COMMUNICATION DURING DISRUPTIONS
A. Clerk announces status every 5–10 minutes during outages
B. If Zoom drops:
o On-site signage and verbal updates provided
If possible:
o Status updates posted to city website or social media
XII. DOCUMENTATION
A. After any disruption, IT staff logs the following:
1. Time of issue
2. Duration
3. Resolution
B. Clerk includes summary in meeting minutes
C. If a disruption affects recording:
1. note whether recording resumed
2. preserve partial recordings
3. document missing segments
XIII. AUTHORITY TO DEVIATE
The Mayor/Presiding Officer may take reasonable actions to ensure compliance with open meeting laws, including:
A. Extending public comment time
B. Reordering agenda items
C. Continuing items to a future meeting
XIV. Policy Review
This policy should be reviewed annually or upon:
A. Changes to state law
B. Changes in meeting technology
C. Recurring technical issues
XV. ACTION
Adopted by the City of Lynwood City Council on June 2, 2026 417
AGENDA STAFF REPORT
DATE:
June
2, 2026
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Suja Lowenthal, City Manager
PREPARED BY:
Marina L. Ramirez, Partner, Alvarez-Glasman & Colvin
Yolanda Delgadillo, Senior Human Resources Analyst
SUBJECT:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
AUTHORIZING APPROVAL OF THE FIRST AMENDMENT TO THE
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF
LYNWOOD AND STAFFORD HR CONSULTING
Agenda Item # 9.5.
Recommendation:
Staff recommends the City Council adopt a resolution (
Attachment 1
) approving the first
amendment to the Professional Services Agreement between the City of Lynwood and Stafford HR Consulting (
Attachment 2
) to extend the agreement term through December 31,
2026, and increase the total compensation amount from $50,000 to an amount not-to-exceed $100,000 for continued Human Resources consulting and personnel management services, and authorizing the City Manager to execute and the City Clerk to attest the amendment.
Executive Summary:
Staff requests City Council approval of the First Amendment to the Professional Services Agreement with Stafford HR Consulting to extend the term of the agreement through December 31, 2026 and increase the total compensation authority from $50,000 to an amount not-to-exceed $100,000. Due to increased Human Resources operational demands and the continued need for specialized personnel consulting services, the Human Resources Department has nearly exhausted the current authorized contract amount. Approval of the amendment would allow the City to continue receiving professional Human Resources support services necessary to address employee relations matters, labor and employment compliance, policy development, investigations, and other personnel-related operational needs. (HR) City Council City Council Regular Meeting 418
Background:
On January 22, 2026, the City entered into a Professional Services Agreement with Stafford HR Consulting to provide specialized Human Resources consulting and personnel management services to support City operations. The agreement included services related to employee relations, classification and compensation support, policy development, labor and employment compliance, workplace investigations, and general Human Resources advisory services.
Since execution, Stafford HR Consulting has continued to provide operational and professional support to the Human Resources Department and City administration on a variety of personnel-related matters. Due to the continued need for consulting support and expanded Human Resources assistance, staff recommends an amendment to extend the agreement term and increase the authorized compensation amount.
Discussion and Analysis:
The proposed First Amendment would amend the existing agreement to extend the contract term from January 22, 2026 through December 31, 2026. In addition, the amendment would increase the total compensation amount from $50,000 to an amount not-to-exceed $100,000.
The additional funding would allow the consultant to continue providing specialized Human Resources services and support for ongoing personnel administration needs, including:
Employee relations and workplace matters;
Classification and compensation support;
Policy and procedure development;
Labor and employment compliance assistance;
Workplace investigations and advisory services; and
General Human Resources operational support.
Staff has determined that continuation of these services is necessary to support current operational needs and assist the City in maintaining compliance with applicable employment laws, personnel practices, and organizational objectives.
The proposed amendment does not modify the overall scope or nature of services being provided under the original agreement, but instead extends the availability and continuity of those services through the remainder of calendar year 2026.
City Council City Council Regular Meeting 419
1. Resolution 2026-_PSA_Stafford HR Consulting.docx
2. First Amendment - Stafford_HR_Consulting.docx
Fiscal Impact:
Approval of the proposed First Amendment would increase the total contract amount by $50,000, for a revised total compensation amount not-to-exceed $100,000. Funding for these services is available in the Human Resources Department professional services General Fund budget for FY 2025–26 and FY 2026–27.
Coordinated With:
City Manager’s Office
Human Resources Department
City Attorney’s Office
ATTACHMENTS:
Description
City Council City Council Regular Meeting 420
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
APPROVING FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
WITH STAFFORD HR CONSULTING
WHEREAS, the City is a municipal corporation organized and existing under the laws of the State of California and is authorized to enter into contracts for professional services related to the administration and management of its municipal operations; and
WHEREAS, the City requires specialized Human Resources and personnel management services, including but not limited to employee relations, classification and compensation support, policy development, labor and employment compliance, investigations, and advisory services; and
WHEREAS, Stafford HR Consulting represents that it possesses the necessary qualifications, expertise, experience, and professional skill to provide said Human Resources and personnel services to public agencies; and
WHEREAS, the City desires to continue engaging Stafford HR Consulting to provide Human Resources and personnel services on a professional services basis, and Stafford HR Consulting is able and willing to perform such services; and
WHEREAS, under the authority of the City Manager the City entered into a Professional Services Agreement with Stafford HR Consulting and the City would like to extend the amount of the current Agreement not -to-exceed $100,000.00 with an expiration date of December 31, 2026.
NOW, THEREFOR E THE CITY COUNCIL OF THE CITY OF LYNWOOD,
CALIFORNIA DOES HEREBY FIND, DETERMINE, ORDER , AND RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Lynwood hereby finds and declares that the foregoing recitals are true and correct and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. The City Council hereby approves the First Amendment to the Professional Services Agreement between the City and Stafford HR Consulting, effective May 1, 2026.
Section 3. The Stafford HR Consulting shall serve at the pleasure of the City Manager and shall have the full authority and responsibility as set forth in the Professional Services Agreement between the City and Stafford HR Consulting for the duration set forth in the First Amendment, or until services are completed, whichever comes first.
421
Section 4. The Mayor is authorized to execute the professional services agreement for and on behalf of the City of Lynwood. The Mayor is also authorized to execute this Resolution for and on behalf of the City of Lynwood.
Section 5. This Resolution shall take full force and effect immediately upon adoption by the City Council.
Section 6. The City Clerk shall certify as to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED THIS 2ND DAY OF June 2026.
Gabriela Camacho
Mayor
ATTEST:
Maria Quiñonez
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Noel A. Tapia Suja J. Lowenthal
City Attorney City Manager
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FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
BETWEEN CITY OF LYNWOOD AND STAFFORD HR CONSULTING
This First Amendment (the “First Amendment”) is made and entered into by and between the between the CITY OF LYNWOOD, a California municipal corporation (the “CITY”) and Stafford HR Consulting (the “CONSULTANT”) and is an amendment to the Professional Services Agreement between the CITY and the CONSULTANT, dated January 22, 2026 (“Agreement”). CITY and CONSULTANT are also referred to individually as “Party,” and collectively as “Parties.” In consideration of the following terms and conditions, the Parties agree as follows:
RECITALS
WHEREAS, the City is a municipal corporation organized and ex isting under the laws of the State of California and is authorized to enter into contracts for professional services related to the administration and management of its municipal operations; and
WHEREAS, the City requires specialized Human Resources and personnel management services, including but not limited to employee relations, classification and compensation support, policy development, labor and employment compliance, investigations, and advisory services; and
WHEREAS, Consultant represents that it possesses the necessary qualifications, expertise, experience, and professional skill to provide such Human Resources and personnel services to public agencies; and
WHEREAS, the City desires to continue engaging Consultant to provide Human Resources and personnel services on a professional services basis, and Consultant is willing to perform such services under the terms and conditions set forth in this Agreement; and
WHEREAS, the Parties previously entered into a Professional Services Agreement effective January, 22, 2026 at an amount not-to-exceed of $50,000.00.
WHEREAS, The Parties desire to amend the Agreement by extending the contract amount to not-to-exceed 100,000.00 under the terms of the Agreement, effective May 1, 2026 with an expiration date of December 31, 2026.
NOW, THEREFORE, the Parties hereby agree as follows:
1. Paragraph 3.a of the Agreement is hereby amended to extend the term of the Agreement from January 22, 2026 to December 31, 2026.
2. Paragraph 2.c of the Agreement is hereby amended to replace the sum amount not-to-exceed of Fifty Thousand Dollars ($50,000.00) to One Hundred Thousand Dollars ($100,000.00).
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3. Except as expressly modified or supplemented by this First Amendment, all other provisions of the Agreement shall remain unaltered and in full force and effect. In the event of a conflict between the provisions of this First Amendment and the provisions of the Agreement, the provisions of this First Amendment shall control.
IN WITNESS WHEREOF, the City Council of the City of Lynwood has authorized this First Amendment to be executed by City-authorized signatures.
Date of City Council Meeting: June 2, 2026
(“CITY”) (“CONSULTANT”)
CITY OF LYNWOOD STAFFORD HR CONSULTING
Suja Lowenthal, City Manager Cynthia Stafford, Principal
ATTEST:
Maria Quiñonez, City Clerk
APPROVED AS TO FORM:
Noel Tapia, City Attorney
424
AGENDA STAFF REPORT
DATE:
June
2, 2026
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Suja Lowenthal, City Manager
PREPARED BY:
Carol Molina, Interim Director of Finance & Administration SUBJECT:
FY 2024–25 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) Agenda Item # 9.6.
Recommendation:
Staff recommends the City Council receive and file the City's Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025.
Executive Summary:
The City’s independent auditor, Vasquez and Company, has completed the audit of the City’s financial statements for the fiscal year ended June 30, 2025, and has issued an unmodified ("clean") opinion. The audit forms the basis of the City’s Annual Comprehensive Financial Report (ACFR) for FY 2024–25, which presents the City’s financial position, results of operations, and cash flows in accordance with Generally Accepted Accounting Principles (GAAP). Key results for the fiscal year include an $18.6 million increase in net position to $244.8 million, total revenues of $103.3 million against total expenses of $84.7 million, and a General Fund balance increase from $49.2 million to $50.3 million. Staff recommends the City Council receive and file the ACFR. (FIN)
Background:
Vasquez and Company (Vasquez), the City of Lynwood’s independent auditor, completed the audit of City's financial statements as of June 30, 2025 and for the fiscal year then ended, and City Council City Council Regular Meeting 425
has issued its report on the financial statements which have been incorporated into the Annual Comprehensive Financial Report (ACFR).
Vasquez conducted a thorough examination of the City’s financial records and has issued an unmodified ("clean") opinion on the financial statements. This unmodified opinion signifies that the City's financial data is accurately presented in accordance with Generally Accepted Accounting Principles (GAAP) in the United States and adheres to the standards outlined in the Government Audit Standards issued by the Comptroller General of the United States.
These standards require that the auditors plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement and accurately reflect the City’s financial position.
Discussion and Analysis:
Annual Comprehensive Financial Report
The Annual Comprehensive Financial Report (ACFR) was prepared in accordance with the Governmental Accounting Standards Board (GASB) Statements. The City's ACFR includes financial information for all City funds, and it is presented in three sections:
1 .
The Introductory Section of the report includes a table of contents, organizational chart, transmittal letter, and financial awards.
2 .
The Financial Section contains the independent auditor’s report, management discussion and analysis (MD&A), financial statements, accompanying notes, and supplementary details.
3 .
The Statistical Section includes ten years of financial data, debt computations, and a variety of demographic, economic and social information that potential readers may find useful for assessing the City’s financial condition.
T
he government-wide statements, presented through the Statement of Net Position and the Statement of Activities, present the City as a whole and provide a longer-term view. These statements include all assets and deferred outflows of resources and all liabilities and deferred inflows of resources using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.
The fund financial statements provide detailed information about the most significant funds, and not the City as a whole. Some funds are required to be established by State law and/or by bond covenants. However, the City Council establishes many other funds to help control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other restricted sources. The City’s two kinds of funds— governmental and proprietary—use different accounting approaches. Governmental funds use modified accrual accounting, while proprietary funds use the full accrual basis of accounting.
Financial Highlights
City Council City Council Regular Meeting 426
1. City of Lynwood ACFR FY 2025 - Final (Book version).pdf Net Position
: As of June 30, 2025, the City's net position increased by $18.6 million from the previous year, totaling $244.8 million. This includes $243.2 million from governmental activities and $1.6 million from business-type activities.
Revenues and Expenses
: For FY 2024–25, City total revenues from all sources were $103.3 million, and total expenses were $84.7 million. Of the total revenues, program revenues were $43.2 million and general revenues were $60.2 million. Program revenues comprise charges for services of $19.9 million and operating grants and contributions of $23.3 million.
General revenues comprise primarily property taxes of $21.0 million, sales and use tax of $17.7 million, utility users taxes of $7.0 million, franchise tax of $2.3 million, business license tax of $1.4 million, and other taxes totaling $5.9 million.
Governmental Funds
: The City’s governmental funds reported combined ending fund balance of $93.1 million at June 30, 2025. In FY 2024–25, governmental expenditures and other financing uses exceeded revenue and other financing sources by $9.9 million. The decrease in the governmental funds balance was primarily attributed to a net decrease in Housing Authority Special Revenue Fund, Landscape Maintenance Special Revenue Fund, and Grants Special Revenue Fund.
General Fund Outlook
In FY 2024–25, General Fund revenues and other financing sources totaled $46.5 million, while expenditures and transfers out amounted to $45.5 million. As a result, the total fund balance increased from $49.2 million to $50.3 million, representing an increase of $1.1 million.
The $1.1 million net increase in the General Fund balance was attributed to an overall slight increase in tax revenues to the General Fund and increases in Use of Money and Property.
Fiscal Impact:
There is no fiscal impact associated with this action.
Coordinated With:
City Manager's Office
ATTACHMENTS:
Description
City Council City Council Regular Meeting 427
428
429
Annual Comprehensive Financial Report
City of Lynwood, California
Year ended June 30, 2025
With Independent Auditor’s Report
Prepared by: Finance Department
430
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431
City of Lynwood
Table of Contents
PAGE
INTRODUCTORY SECTION
Letter of Transmittal i
City of Lynwood Organizational Chart vii
Finance & Administration Department Organizational Chart viii City Officials ix
FINANCIAL SECTION
Independent Auditor’s Report 1
Management’s Discussion and Analysis (Unaudited) 5
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 16
Statement of Activities 18
Fund Financial Statements
Balance Sheet 20
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position 22
Statement of Revenues, Expenditures, and Changes in Fund Balances 23 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities 25
Proprietary Funds
Statement of Net Position 26
Statement of Revenues, Expenses, and Changes in Net Position 28 Statement of Cash Flows 29
Fiduciary Fund
Statement of Fiduciary Net Position 31
Statement of Changes in Fiduciary Net Position 32
Notes to the Basic Financial Statements 33
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan 103
Schedule of the City’s Proportionate Share of the Net Pension Liability – Safety Plan 105
Schedule of Plan Contributions – Pension – Miscellaneous Plan 107 Schedule of Plan Contributions – Pension – Safety Plan 109 Schedule of Changes in the Net OPEB Liability and Related Ratios 111 Schedule of Contributions – Other Postemployment Benefits Plan 113 Budgetary Comparison Schedules
General Fund 115
Housing Authority Special Revenue Fund 116
Landscape Maintenance Special Revenue Fund 117
American Rescue Plan Special Revenue Fund 118
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City of Lynwood
Table of Contents
PAGE
REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED)
Budgetary Comparison Schedules (Continued)
Grants Special Revenue Fund 119
Retirement Special Revenue Fund 120
Notes to Required Supplementary Information 121
SUPPLEMENTARY INFORMATION
Nonmajor Governmental Funds
Description of Nonmajor Governmental Funds 122
Combining Balance Sheet 124
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 131 Budgetary Comparison Schedules
Lighting Maintenance Special Revenue Fund 138
Public Art Special Revenue Fund 139
Business Improvement District Special Revenue Fund 140
Enterprise Zone Program Special Revenue Fund 141
Impact Fees Special Revenue Fund 142
Urban Farming Special Revenue Fund 143
Air Quality Improvement Special Revenue Fund 144
Gas Tax Special Revenue Fund 145
SB 1 Special Revenue Fund 146
Prop A Special Revenue Fund 147
Prop C Special Revenue Fund 148
Measure M Special Revenue Fund 149
Measure R Special Revenue Fund 150
Transportation Special Revenue Fund 151
HSIP Special Revenue Fund 152
Litter Abatement Special Revenue Fund 153
Safe Clean Water Special Revenue Fund 154
Capital Improvement Capital Projects Fund – Major Fund 155 Measure M Bond Capital Projects Fund 156
2017 Lease Revenue Bonds (LRB) Capital Projects Fund 157 2019 Lease Revenue Bonds (LRB) Capital Projects Fund 158 2020 Lease Revenue Bonds (LRB) Capital Projects Fund 159 City of Lynwood Debt Service Fund 160
Internal Service Funds
Description of Internal Service Funds 161
Combining Statement of Net Position 162
Combining Statement of Revenues, Expenses and Changes in Net Position 163 Combining Statement of Cash Flows 164
STATISTICAL SECTION
Description of Statistical Section Contents 165
Net Position by Component - Last Ten Fiscal Years 166
Changes in Net Position - Last Ten Fiscal Years 168
Fund Balances of Governmental Funds - Last Ten Fiscal Years 170 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 172 Tax Revenues by Source - Governmental Activities - Last Ten Fiscal Years 174
433
City of Lynwood
Table of Contents
PAGE
STATISTICAL SECTION (CONTINUED)
Assessed Value - Last Ten Fiscal Years 175
Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years 177 Principal Property Taxpayers – Current Year and Ten Years Ago 179 Property Tax Levies and Collections - Last Ten Fiscal Years 180 Taxable Sales by Category – Last Ten Fiscal Years 181
Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years 183 Principal Sales Tax Remitters – Current and Nine Years Ago 184 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 185 Direct and Overlapping Government Activities Debt - As of June 30, 2025 187 Legal Debt Margin Information - Last Ten Fiscal Years 188 Pledged-Revenue Coverage – Last Ten Fiscal Years 190
Demographic and Economic Statistics - Last Ten Fiscal Years 192 Principal Employers – Current Year and Nine Years Ago 193 Full-Time Equivalent City Employees by Function / Program - Last Ten Fiscal Years 194 Operating Indicators by Function/Program - Last Ten Fiscal Years 196 Capital Assets by Function - Last Ten Fiscal Years 198
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INTRODUCTORY SECTION
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i
April 30, 2026
To the Honorable Mayor, Members of City Council and Residents of the City of Lynwood:
We are pleased to present to you and the Lynwood residents the City's Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2025. The ACFR presents the City's financial position and changes therein, for its various funding sources.
These statements and
supporting schedules have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (US GAAP), as established by the Governmental Accounting Standards Board (GASB) and audited in accordance with the generally accepted auditing standards by an independent public accounting firm of licensed certified public accountants.
This report consists of management’s representations concerning finances of the City.
Responsibility for both accuracy of the data, and completeness and fairness of presentation, including all disclosures, rests with management. To provide a reasonable bas is for making these representations, management has established a comprehensive internal control framework that is designed to both protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for preparation o f financial statements in conformity with GAAP. Because the cost of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements.
Management asserts that to the best of its knowledge and belief, the enclosed data is accurate in all material respects, and reported in a manner designed to present fairly the financial position and results of operations of various funds and component units of the City.
All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included.
The City’s financial statements for the fiscal year ended June 30, 2025, have been audited by Vasquez + Company LLP, an independent public accounting firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2025, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and, evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended June 30, 2025, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component in the financial section of this report.
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ii
The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City’s separately issued Single Audit Report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found immediately following the independent auditor’s report.
The City’s Annual Comprehensive Financial Report is presented in three sections:
The Introductory Section includes management's transmittal letter and the organizational structure and profile of the City.
The Financial Section is prepared in accordance with the GASB 34 requirements and contains the Management's Discussion and Analysis (MD&A), the Basic Financial Statements including notes, the Required Supplemental Information, and the Disclosure of Restricted Net Position. The Basic Financial Statements include the government-wide financial statements that present an overview of the City's entire financial operations, and fund financial statements that present the financial information of each of the City's major funds, as well as non-major governmental funds.
Also, included in this section is the Independent Auditor's Report. The City's MD&A can be found immediately following the report of the independent auditor.
The Statistical Section is prepared in accordance with GASB 44 requirements and reflects the Economic Condition of Reporting entities. It includes ten years of financial data, debt computations, and a variety of demographic, economic and social information that may be of interest to potential investors in the City's bonds and to other interested readers. The Statistical Section can be found following the Financial Section.
THE REPORTING ENTITY AND ITS SERVICES
The City has defined its reporting entity in accordance with the accounting principles generally accepted in the United States of America (US GAAP), which provide guidance for determining which governmental activities, organizations, and functions should be included in the reporting entity. The Basic Financial Statements present information on the activities of the City and its component units.
The following elements are included in the City's ACFR:
• Government-Wide Financial Reporting
• Management's Discussion and Analysis (MD&A)
• Fund Financial Statements and its Notes
• Expanded Budgetary Reporting
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iii
US GAAP requires that the component units be separated into either blended or discretely presented units for reporting purposes. The City does not have any discretely presented component units, but it presents blended units. These include the Lynwood Publi c Financing Authority (LPFA), the Lynwood Utility Authority (LUA), and the Lynwood Housing Authority (LHA).
The Lynwood Unified School District was not included due to its limited relationship with the City.
The City is also represented by a number of regi onal agencies that are excluded from the City's reporting entity.
PROFILE OF THE GOVERNMENT
The City of Lynwood voters approved the City's incorporation on July 1, 1921. The City is situated approximately 13 miles south of downtown Los Angeles at the intersection of the 710 and 105 freeways in Los Angeles County. The City has grown from an agricultural area in the early 1900's to its present residential and growing industrial and commercial importance. The City covers 4.9 square miles and serves a residential population of over 66,271.
The City Council is the governing body of the City and is comprised of five elected officials. All Council members are elected at large to serve four -year terms. One of the Council members is elected by the other four members to be the Mayor for the upcomi ng year. The City Council appoints a City Manager who carries out the City Council policies and provides administrative direction to the City.
The City provides a full range of services contemplated by statute, including those functions delegated to cities under state law. These services include public safety (which are contracted to Los Angeles County), public works, recreational and cultural ac tivities, public improvements, planning, zoning, and general administrative services. Other services - such as sanitation, flood control and transportation - are provided by special districts with the City being a member.
The City's budget is a detailed operating plan that identifies estimated costs in relation to estimated revenues. The budget includes: (1) the programs, services, and activities to be carried out during the fiscal year; (2) the estimated revenue available to finance the operating plan; and (3) the estimated spending requirements for the operating plan. The budget represents a process wherein policy decisions by the City Council are adopted, implemented and controlled. The Notes to the Basic Financial Statements summarize the budgetary roles of various City officials and the timetable for their budgetary actions according to City policy.
City policy prohibits expending monies for which there is no legal appropriation. The City Manager is authorized to administer the budget and may transfer monies from one activity, program, or project to another within the same fund and department. Supplemental appropriations or transfer of appropriations that affect a fund or department level budget must be approved by City Council.
The City also maintains an encumbrance accounting system to provide budgetary controls for governmental funds. Encumbrances, which would result in an overrun of an account balance, are suspended until additional funding is made available via budget change requests or are withdrawn due to a lack of funding. Encumbrances outstanding at June 30 th and carried forward are reported
as reservations of the appropriate governmental fund's fund balance. They represent the estimated amount of the expenditure ultimatel y to result if unperformed contracts in- process at fiscal year-end are completed. They do not constitute expenditures or liabilities.
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iv
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates.
ECONOMIC CONDITION
Over the past year, economic conditions locally are showing signs of improvement, with slight decreases in unemployment and slightly rising household incomes. The City is experiencing an increase in development with commercial projects, such as the grand opening of Northgate Market in July 2024 and the Commercial Façade Program.
Lynwood is conveniently located near two major freeways, the 710 and the 105, providing residents with easy access to Los Angeles and Long Beach Downtowns and airports.
Incorporated in 1921, Lynwood has a rich history as ranch land and the site of a dairy and creamery. Today, the City offers an exceptional quality of life, with well -managed municipal services and a business - friendly environment that attracts new commerce while supporting existing businesses. Lynwood is a safe, self-sufficient, and family -oriented community that takes pride in its approximately 66,271 residents
Continued demand for housing in the Southern California area helps keep property values up, which escalates property values for new assessments and ownership turnover. Such value has led to strong returns in property tax revenue. Property tax is a major revenue source for general government purposes. Rising property values increases the revenues for both the General Fund and the Retirement Special Revenue Fund.
According to Beacon Economics Outlook, the U.S economy continues to recover, "solid but unspectacular" growth, with US GDP essentially flat at around 2.2%. The Federal reserve is expected to cut rates further, bringing them toward a neutral range after pausing in late 2025.
While the outlook is stable, analysts maintain a roughly 30%–40% probability of recessionary risks due to geopolitical or policy shocks. Job growth is expected to remain modest but stable, potentially picking up in the latter half of 2026. The FY 2025-26 budget was developed in the context of growing economic uncertainties and concerns of a potential recession.
The FY 2025-26 City-wide adopted budget contained revenues of $118.3M, transfer-in of $29.4M, expenditures of $144.8M, and transfers-out of $29.4M with all funds included.
The General Fund FY 2025-26 budget includes $51.1M in recommended expenditures and transfers to other funds. Personnel costs, which include salaries and benefits, represent $9.7M of the total expenditures. Operational costs, which include materials, services and supplies, account for $35.9M of the budget. Debt service and transfers to other funds costs total $5.4M.
Overall, FY 2025-26 General Fund expenditures have decreased by 6% or $3.1M over the FY 2024-25 budget. However, excluding the decrease in transfers to other funds, the actual change from FY 2024-25 was an increase of 2.5% or $1.2M. Most of this increase c an be attributed to increases in public safety costs and personnel expenses. These increases were partially offset by Public Works Department’s reduction of expenditures.
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v
The General Fund committed fund balance designation is expected to increase from $17.0M in FY 2024-25, to $18.3M in FY 2025-26 to ensure compliance of the City’s Municipal Code and City Council Resolution 2006.110. City Council Resolution 2006- 110 Adopting a Policy on Reserves and Contingencies requiring that the City Council appropriate $500,000 annually into the Contingency Set Aside Fund. City of Lynwood’s Municipal Code Section 6-2.10 Budget Stabilization Fund (known as the Rainy Day Fund) states that the General Fund transfer 10% of general tax revenues generated each year by the 2016 transactions and use tax ordinance. The FY 2025-26 General Fund Adopted Budget includes $747,400 for this purpose. Finally, the City’s FY 2025-26 General Fund adopted budget includes $200,000 contribution to the Retirement Reserve Fund, increasing the estimated reserve fund from $6.6M to $6.8M by 6/30/2026.
The City’s Water Fund budget includes an approved a five-year rate increase plan that went into effect in FY 2023-24. The second rate increase was implemented in FY 2024-25 resulting in the Water and Sewer revenue in FY 2024-25 being significantly higher than FY 2023-24. The fund’s expenses have been relatively flat with transfers out for capital projects increasing compared to prior year. The total FY 2024-25 operating expense budget for the Water Fund is $13.8M, which is $0.7M over the $13.1M in revenues.
The Capital Improvement Project (“CIP”) total proposed budget of $41.0M includes both new and carryover projects from prior fiscal years.
CASH MANAGEMENT POLICIES AND PRACTICES
The City’s cash management policy is to maximize interest income while maintaining adequate liquidity by pooling operating cash across its various funds and investing these monies in securities with diversified maturities. All City and Agency funds are inv ested in accordance with the City’s Investment Policy and in compliance with Section 53601 of the California Government Code.
Authorized investment vehicles include the Local Agency Investment Fund (State Pool), U.S.
Treasury obligations, U.S. Government agency securities, certificates of deposit, commercial paper, as well as mutual funds and money market funds composed of eligible securities.
The primary objectives of the Investment Policy are to preserve capital, ensure sufficient liquidity to meet the City’s cash flow needs, and achieve market-average rates of return. Investments are secured by collateral as required by law, and maturities ar e carefully staggered to ensure funds are available when needed. The City Council receives regular reports from the City Treasurer regarding the performance of the City’s pooled investment program.
Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's Investment Policy.
The City manages its exposure to interest rate risk by purchasing a combination of shorter -term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
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RISK MANAGEMENT
To finance its general liability and worker's compensation risks, the City maintains its membership in the Independent Cities Risk Management Authority (ICRMA). The ICRMA is a Joint Powers Authority (JPA), which consists of neighboring southern California cities, whose purpose is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurances or reinsurances, and to arrange for group-purchased insurance for property, liability, flood, cybersecurity, workers’ compensation and other coverage.
The City participates in programs for worker's compensation and general liability coverage administered by ICRMA. The Worker’s Compensation limit is the California Statutory Limit for Worker’s Compensation claims or maximum limit allowed by law, with the C ity's retention of $500,000 for each occurrence. General liability coverage is $35,000,000 with the City’s retention set at $250,000 for each occurrence. The City Attorney believes that the above designation is adequate to cover any losses. Costs related to litigation of claims are expensed as incurred.
In addition, the City participates in the ICRMA Property Insurance Program including earthquake and flood insurance. The “all risk”, including earthquake and flood, property coverage is $250,000,000 with $10,000 for each occurrence deductible. The property coverage limit is shared by 13 other member cities. Premiums for these policies are paid annually and are not subject to retroactive adjustments.
During the past five fiscal (claim) years, none of the above programs of protection have had statements or judgments that exceeded pooled or insured coverage nor have there been any significant reductions in pooled or insured liability coverage from the prior year.
LONG-TERM FINANCIAL PLANNING
The City continues to carefully evaluate a range of revenue-generating opportunities and cost - containment strategies to meet community service expectations. The annual budget is balanced through a combination of disciplined spending limits, targeted cost r eductions, strategic fee adjustments, and the responsible use of reserves. The City remains committed to a conservative approach and sound fiscal management.
ACKNOWLEDGMENTS
Special recognition is extended to the entire staff of the Finance and Administration Department for their ongoing dedication and support to all City departments and residents on a daily basis.
Special recognition is also extended specifically to the Accounting staff, for their professionalism, dedication, and efficiency in the preparation of this report. We also thank Vasquez for their assistance and guidance. Finally, we would like to thank the Mayor and members of the City Council for their interest and continued support planning and conducting the City’s financial operations in a responsible and progressive manner.
Respectfully submitted,
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Finance & Administration Department
Organizational Chart
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City of Lynwood
Elected Officials as of June 30, 2025
Mayor Rita Soto
Mayor Pro-Tem Gabriella Camacho
Council Member Lorraine Avila Moore
Council Member Luis Gerardo Cuellar
Council Member Juan Munoz Guevara
City Treasurer Liliana Delgadillo
City Clerk Maria Quinonez
Administrative Staff as of June 30, 2025
Interim City Manager Julian Lee
Director of Finance & Administration Harry Wong
Sheriff Captain Christopher R. Minott
Director of Public Works Julian Lee
Director of Community Development Gabriel Linares
Director of Technology Services Peter Han
Director of Human Resources Patrick Matson
Director of Recreation & Community Services Mark Flores
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FINANCIAL SECTION
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1 Independent Auditor’s Report
The Honorable Mayor and the Members of the City Council City of Lynwood, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Lynwood, California (the City), as of and for the year ended June 30, 2025, and the related notes to financial statements, which collectively comprise the City's basic financial statements, as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Lynwood, California, as of June 30, 2025, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards).
Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
450
2 Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
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3 We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 5 through 15 and the required supplementary information on pages 103 through 12 1 be presented to supplement the basic financial statements.
Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund financial statements and budgetary comparison schedules as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises th e introductory and the s tatistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated.
If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 452
4 Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards , we have also issued our report dated April 30, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Glendale, California
April 30, 2026
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City of Lynwood
Management’s Discussion and Analysis (Unaudited)
Year ended June 30, 2025
5 The Management Discussion and Analysis of the City of Lynwood’s financial performance provides readers of the City’s financial statements an overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2025 . We encourage readers to consider information noted below in conjunction with the City’s financial statements, the transmittal letter and notes to the basic financial statements.
FINANCIAL HIGHLIGHTS
• The City’s net position equaled $244.8 million at June 30, 2025, increased $18.6 million from previous year. Net position is the amount by which total assets and deferred outflows of resources exceed total liabilities and deferred inflows of resources. The net position from governmental activities at June 30, 2025 was $243.2 million, and from business-type activities was $1.6 million.
• For FY 2024-25, City total revenues from all sources were $10 3.4 million and total expenses were $84.7 million. Of the total revenues, program revenues were $43. 2 million and general revenues were $60.2 million. Program revenues are broken into: Charges for services at $19.9 million, and operating grants and contributions at $23. 3 million. General revenues comprised primarily of property taxes in the amount of $21.0 million, sales and use taxes in the amount of $17.7 million, utility taxes in the amount of $7.0 million, franchise taxes, business license taxes and other taxes, and other revenues in the amount of $14.5 million.
• The City’s governmental funds reported a combined ending fund balance of $93.1 million at June 30, 2025 . In FY 2024 -25, expenditures and other financing uses exceeded the governmental revenue and other financing sources by $9.9 million. The decrease in the governmental funds balance was primarily attributed to net decreases in the Housing Authority Special Revenue Funds of $( 2.8) million, Landscape Maintenance Special Revenue Fund of $(2.0) million, Grants Special Revenue fund of $(3.7) million and Nonmajor Governmental Funds of $(6. 0) million, which was offset by a net increase in General Fund $1.0 million, Retirement Special Revenue fund $2.2 million, and Capital Improvement Capital Projects Fund $1.5 million, resulting a negative net change in governmental funds of $(9.9) million.
ROAD MAP FOR THE FY 2024-2025 FINANCIAL AUDIT REPORT
The Management’s Discussion and Analysis section is intended to serve as the introduction to the City’s basic financial statements, which contain the basic financial data, as well as important supplemental information. Included in this report are the activ ities of the City of Lynwood and its component units, the Lynwood Public Financing Authority, the Lynwood Housing Authority and the Lynwood Utility Authority. The activities are presented using the integrated approach prescribed by the Government Accounting Standards Board (GASB) Statement No. 34. Also according to GASB Statement No. 34, certain interfund receivables, payables, and other interfund activities have been eliminated from the financial statements as they do not have a net impact.
The City’s basic financial statements contain a number of elements. The Statement of Net Position and the Statement of Activities provide information about the activities of the City as a whole and present a longer -term view of the City’s finances. The f und financial statements explain how these services were financed in the short -term as well as what remains for future spending. The f und financial statements also report the City’s operations in more detail than the government -wide statements, by providing information about the City’s most significant funds. The remaining statements provide financial information about activities for which the City acts solely as a trustee or agent for the benefit of those outside of the government.
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City of Lynwood
Management’s Discussion and Analysis (Unaudited)
Year ended June 30, 2025
6 Reporting the City as a Whole: Statement of Net Position and Statement of Activities
One of the most important questions on the City’s finances is, “Is the City as a whole better off or worse off as a result of this year’s activities?” The Statement of Net Position and the Statement of Activities report information about the City as a whol e and about its activities in a way that helps answer this question. These statements include all assets and deferred outflows of resources and all liabilities and deferred inflows of resources using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.
These two statements provide detail on the City’s net position and changes affecting it. The City’s net position – total assets and deferred outflows of resources, net of total liabilities and deferred inflow of resources – is a way to measure the City’s overall financial health, or financial position. Over time, increases or decreases in the City’s net position may be a good indicator of whether its financial health is improving or deteriorating. However, the need exists to consider other non- financial factors, such as changes in the City’s property tax base and the condition of the City’s roads, to assess the overall health of the City.
The Statement of Net Position and the Statement of Activities present information about the following:
• Governmental Activities - All of the City’s basic services are considered to be governmental activities, including general government, community development, public safety, public works and parks and recreation. Property taxes, sales taxes, charges for services, franchise fees and other similar revenue sources pay for most of these activities.
• Business-type Activities - All of the City’s functions that are intended to recover all or a significant portion of their costs through users fees and charges including water system and sanitary sewer activities.
• Component Units - The City’s governmental activities include the blending of the Lynwood Public Financing Authority and Lynwood Housing Authority. Although legally separate, th ese “component units” are important because of the significance of their operational and financial relationship with the City. The Lynwood Utility Authority is included in the business -type activities in the Statement of Net Position and Statement of Activities.
Reporting the City’s Most Significant Funds: Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds, and not the City as a whole. Some funds are required to be established by State law and by bond covenants.
However, the City Council establishes many other funds t o help control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other restricted sources. The City’s two kinds of funds, governmental and proprietary, use different accounting approaches.
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City of Lynwood
Management’s Discussion and Analysis (Unaudited)
Year ended June 30, 2025
7 • Governmental Funds - Most of the City’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds, and the balance left at year-end that is available for spending. These funds are reported using an accounting method called the modified accrual basis of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides.
Governmental fund information helps to determine whether there are more or less financial resources that can be spent in the near future to finance the City’s programs. We describe the relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in the reconciliation following the fund financial statements.
• Proprietary Funds - The City maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for the operations for its water system and sanitary sewer activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to report activities that provide services for the City’s other programs and activities, such as the City’s Vehicle and Equipment Maintenance/Replacement Fund, Information Technology Fund, Facilities Maintenance Fund and Self Insurance Fund. Individual fund data for the internal service funds is provided in the form of combining statements in this report.
Reporting the City’s Fiduciary Responsibilities: Fiduciary Fund
The City maintains a separate fund to report the activities of the Successor Agency to the Dissolved Redevelopment Agency. The Successor Agency is presented as a Private-Purpose Trust Fund in the financial statements. The accounting used for fiduciary funds is much like that used for proprietary funds.
Notes to the Financial Statements
The notes to the financial statements provide additional information that is important to obtain a full understanding of the data in the government-wide and fund financial statements. The notes are located immediately following the basic financial statements.
Other information
In addition to the basic financial statement and accompanying notes, this report also presents certain required supplementary information. Required supplementary information may be found immediately following the notes to the financial statements. This section includes the budgetary comparison for the General Fund and major special revenue funds, the schedules of changes in net pension liabilities – miscellaneous plan, the schedule of proportionate share of the net pension liabilities – safety plan, the schedules of contribution, and the schedules of changes in net OPEB liabilities. The combing statements for other governmental funds, the individual fund schedule, and the internal service fund statements are presented immediately following the required supplementary information.
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City of Lynwood
Management’s Discussion and Analysis (Unaudited)
Year ended June 30, 2025
8 THE CITY AS A WHOLE
Table 1 provides a summary of the City’s net position, for the Governmental and Business -Type Activities.
Table 2 reflects change in the net position due to differences in actual revenues and expenses. The City reports its sewer and water activities as business-type activities.
Net position serves as an indicator of a government’s financial position over time. As of June 30, 2025, the City’s combined net position (governmental and business-type activities) totaled $244.8 million, up by $18.6 million from the prior year.
Total assets were $ 437.8 million, deferred outflows of resources were $12.1 million. Total liabilities, including net pension and other postemployment benefits liabilities, were $196.8 million, deferred inflows of resources were $8.3 million as of June 30, 2025.
Net position consists of three categories: net investment in capital assets, restricted, and unrestricted.
The largest portion of the City’s net position, approximately $ 173.0 million at June 30, 2025, was the City’s investment in capital asset including land, building, equipment, and infrastructure net of accumulated depreciation and amortization and related debt for acquiring these capital assets. Since the capital assets are used to provide services to citizens; they are not available to fund the City’s day- to-day activities.
The restricted net position totaled $5 7.6 million at June 30, 2025. These are resources subject to external restrictions limits on how they can be used. The restricted net position includes primarily grants, retirement/pension, various nonmajor special revenue funds, debt service funds and capital projects funds. The remaining unrestricted net position was $14.2 million.
Governmental
activities
Business-type
activities Total
Governmental
activities
Business-type
activities Total
Current and other assets 158,630,656$ 31,213,006$ 189,843,662$ 185,324,296$ 32,524,084$ 217,848,380$ Capital assets 224,354,096 23,622,106 247,976,202 208,458,033 24,349,172 232,807,205 Total assets 382,984,752 54,835,112 437,819,864 393,782,329 56,873,256 450,655,585
Deferred outflows of resources 10,075,680 2,010,692 12,086,372 13,129,086 2,650,393 15,779,479 Current and other liabilities 19,758,368 2,314,621 22,072,989 46,964,246 2,353,092 49,317,338 Long-term debt outstanding 122,116,349 52,618,707 174,735,056 127,047,857 54,097,827 181,145,684 Total liabilities 141,874,717 54,933,328 196,808,045 174,012,103 56,450,919 230,463,022
Deferred inflows of resources 8,003,149 300,181 8,303,330 9,297,757 529,066 9,826,823 Net position:
Net investment in capital assets 171,761,905 1,246,987 173,008,892 158,628,357 935,770 159,564,127 Restricted 56,026,140 1,602,457 57,628,597 81,205,444 1,259,882 82,465,326 Unrestricted 15,394,521 (1,237,149) 14,157,372 (16,232,246) 348,012 (15,884,234) Total net position 243,182,566$ 1,612,295$ 244,794,861$ 223,601,555$ 2,543,664$ 226,145,219$ Statements of Net Position
Table 1
Fiscal year 2024-25 (CURRENT) Fiscal year 2023-24
457
City of Lynwood
Management’s Discussion and Analysis (Unaudited)
Year ended June 30, 2025
9 City’s overall net position at June 30, 2025, increased from $226.1 million to $244.8 million. There is a surplus between the actual revenues of $ 103.3 million and the actual expenses of $84.7 million. As reflected in the above table, the difference in revenue and expenses is a surplus of $18.6 million.
Governmental Activities resulted in a surplus $16.1 million before transfers; and Business-Type Activities had a surplus of $2.6 million before transfers.
City’s FY2024-25 revenue increased $18. 0 million from $85.3 million to $103. 3 million, which was primarily attributed to a $3.1 million increase in charges for services, increase of $11.5 million in operating and capital grants received by the City, and an increase of general revenue of $3.4 million.
City’s FY 2024-25 expenses increased $6.9 million from $77.8 million to $84.7 million. Of which the biggest increase was $3.3 million increase in Community Development, which was due to increase in Alameda Triangle Affordable Housing and baseball field improvements. Public Safety increased $1.8 million primarily due to increased expenditures for law enforcement. Public Works increased by $1. 4 million mainly due to a 40% increase in capital project spending of the City.
Governmental
activities
Business-type
activities Total
Governmental
activities
Business-type
activities Total
Revenues
Program revenues
Charges for services 3,117,249$ 16,794,701$ 19,911,950$ 2,413,847$ 14,437,523$ 16,851,370$ Operating grants and contributions 23,260,382 - 23,260,382 11,732,271 - 11,732,271 Capital grants and contributions - - - - - - Subtotal 26,377,631 16,794,701 43,172,332 14,146,118 14,437,523 28,583,641 General revenues
Property Taxes 21,030,617 - 21,030,617 19,887,440 - 19,887,440 Sales and use taxes 17,737,227 - 17,737,227 17,433,441 - 17,433,441 Utility user tax 7,030,394 - 7,030,394 6,308,756 - 6,308,756 Franchise taxes 2,264,151 - 2,264,151 2,684,139 - 2,684,139 Business license taxes 1,392,153 - 1,392,153 1,109,123 - 1,109,123 Other taxes 5,876,095 - 5,876,095 4,818,393 - 4,818,393 Use of money and property 3,624,248 791,725 4,415,973 2,955,977 743,502 3,699,479 Miscellaneous 413,566 - 413,566 772,669 - 772,669 Subtotal 59,368,451 791,725 60,160,176 55,969,938 743,502 56,713,440 Total revenues 85,746,082 17,586,426 103,332,508 70,116,056 15,181,025 85,297,081 Expenses
General government 6,237,894$ - 6,237,894 6,983,203 - 6,983,203 Public safety 22,591,516 - 22,591,516 20,749,951 - 20,749,951 Public works 18,939,241 - 18,939,241 17,566,243 - 17,566,243 Community development 13,887,039 - 13,887,039 10,580,665 - 10,580,665 Parks and recreation 5,502,148 - 5,502,148 4,739,717 - 4,739,717 Interest and fiscal charges 2,522,471 - 2,522,471 2,272,821 - 2,272,821 Water and sewer - 15,002,557 15,002,557 - 14,924,442 14,924,442
Total expenses 69,680,309 15,002,557 84,682,866 62,892,600 14,924,442 77,817,042 Excess of revenue over expenses
before transfers 16,065,773 2,583,869 18,649,642 7,223,456 256,583 7,480,039 Transfers 3,515,238 (3,515,238) - 1,000,000 (1,000,000) - Total transfers 3,515,238 (3,515,238) - 1,000,000 (1,000,000) - Change in net position 19,581,011 (931,369) 18,649,642 8,223,456 (743,417) 7,480,039 Net position - beginning 223,601,555 2,543,664 226,145,219 215,378,099 3,287,081 218,665,180 Net position - ending 243,182,566$ 1,612,295$ 244,794,861$ 223,601,555$ 2,543,664$ 226,145,219$ Fiscal year 2024-25 (CURRENT) Fiscal year 2023-24
Table 2
Change in Net Position
458
City of Lynwood
Management’s Discussion and Analysis (Unaudited)
Year ended June 30, 2025
10 Governmental Activities
Table 3 presents the cost of each of the City’s Governmental Activities: general government, public safety, public works, community development, parks and recreation, and interest on long- term debt, along with each program’s net cost (total cost less revenues generated by the activities.) The net cost shows the financial burden that was placed on the City’s taxpayers by each of these functions.
In FY 2024-25, the cost of the City’s Governmental activities amounted to $69.7 million, reflecting an increase of $6.8 million compared to the FY 2023-24 expenditure of $62.9 million. Concurrently, the program revenues generated by Governmental Activities increased by $12.2 million from $14.1 million in FY 2023-24 to $26.4 million in FY 202 4-25. As a result of these respective changes in expenses and program revenues, the net cost of Governmental Activities amounted to $43.3 million in FY 2024- 25, representing a decrease of $5.5 million compared to the net cost of $48.8 million recorded in FY 2023-24.
Overall, the cost of government in FY 2024-25 exceeded the program revenues generated to support it.
Expenses
Program
Revenues Net Expenses Expenses
Program
Revenues Net Expenses
Expenses:
General government 6,237,894$ 2,399,745$ (3,838,149)$ 6,983,203$ 1,596,807$ (5,386,396)$ Public safety 22,591,516 293,585 (22,297,931) 20,749,951 353,171 (20,396,780) Public works 18,939,241 17,901,214 (1,038,027) 17,566,243 5,726,688 (11,839,555) Community development 13,887,039 5,291,341 (8,595,698) 10,580,665 5,936,189 (4,644,476) Parks and recreation 5,502,148 491,746 (5,010,402) 4,739,717 533,263 (4,206,454) Interest and fiscal charges 2,522,471 - (2,522,471) 2,272,821 - (2,272,821) Total expenses 69,680,309$ 26,377,631$ (43,302,678)$ 62,892,600$ 14,146,118$ (48,746,482)$ Fiscal year 2024-25 (CURRENT) Fiscal year 2023-24
Table 3
Net Cost of Services
Governmental Activities
459
City of Lynwood
Management’s Discussion and Analysis (Unaudited)
Year ended June 30, 2025
11 BUSINESS-TYPE ACTIVITIES
Table 4 below reflects the cost of the City’s Business-Type Activities: water and sewer, along with the programs’ net cost:
In FY 2024-25, the cost of the water and sewer activities amounted to $15.0 million. Concurrently, the program revenues generated by these activities totaled $16.8 million, resulting in a net revenues or operating income $1.8 million. This positive net gain is attributed to a water and sewer rate increase in July 2024, and higher consumption.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
The City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. The focus of the City’s governmental funds is to provide information on near- term inflows and outflows during the fiscal year and balances of spendable resources at the end of the fiscal year. Such information is useful in assessing the City’s financing requirements to meet the current needs. Unassigned fund balance may serve as a useful measure of the City’s net resources available for appropriations.
At fiscal year-end, the City’s governmental funds reported combined fund balances of $93.1 million, a $9.9 million decrease from the prior fiscal year's fund balance of $103.0 million, as restated. This decrease was primarily driven by $(2.8) million decrease in Housing Authority Special Revenue Fund, a $(2.0 ) million decrease in the Landscape Maintenance Special Revenue Fund, $(3.7) million decrease in Grants Special Revenue Fund and $(6.0) million decrease in nonmajor governmental funds, which was offset by a $1.0 million increase in the General Fund, $2.2 million increase in Retirement Special Revenue, and $1.4 million increase in Capital Improvement Capital Projects Fund.
The fund balance categories of governmental funds displayed $55.7 million in restricted fund balance, $17.8 million in committed fund balance, $28.0 million in assigned fund balance, and $(8.4 ) million in unassigned fund balance. The unassigned amount comprised $4.2 million from the General Fund, $(10.0) million from the Landscape Maintenance Special Revenue Fund, $(2.1 ) million from Grants Special Revenue Fund, and $(0.5) million from the nonmajor governmental funds.
There are seven major funds which are General Fund, Housing Authority Special Revenue Fund, Landscape Maintenance Special Revenue Fund, American Rescue Plan Act Special Revenue Fund, Grants Special Revenue Fund, Retirement Special Revenue Fund, and Capital Improvement Capital Projects Fund and twenty-four nonmajor governmental funds in the governmental funds.
General Fund is the primary operating fund of the City, financing a wide range of services including public safety, public works, community development, park and recreation, and general administrative services. In FY 2024-25 , General Fund revenues and other financing sources totaled $46.5 million, Expenses
Program
Revenues Net Revenues Expenses
Program
Revenues Net Revenues
Expenses:
Water and Sewer 15,002,557$ 16,794,701$ 1,792,144$ 14,924,442$ 14,437,523$ (486,919)$ Total expenses 15,002,557$ 16,794,701$ 1,792,144$ 14,924,442$ 14,437,523$ (486,919)$ Fiscal year 2024-25 (CURRENT) Fiscal year 2023-24
Table 4
Business-Type Activities
Net Cost of Services
460
City of Lynwood
Management’s Discussion and Analysis (Unaudited)
Year ended June 30, 2025
12 while expenditures and transfers out amounted to $45. 5 million. As a result , the total fund balance increased from $49.2 million to $50.3 million, representing an increase of $1.0 million.
Taxes and assessments increased by $1.6 million or 4.2 percent. Property taxes and u se of money and property main contributors to this increase. Property taxes increased $.9 million due to higher assed valuations. Use of money and property increased by $.7 million due to higher rate of return on cash and investments.
Housing Authority Special Revenue Fund accounts for financial activities of low and moderate income housing fund in accordance with the applicable housing -related regulations. Housing Fund received payments from Success Agency ROPS payments to satisfy obligation of pending construction of low- moderate income units. The fund balance in FY 2024- 25 was $6.5 million, a decrease of $2.8 million from FY 2023- 24, as restated. The City reviewed the classification of loans receivable that had not previously been reported as unavailable revenue in the Housing Fund. Based on their nature, these receivables are now presented as unavailable revenues . Accordingly, the beginning fund balance was restated by $(17.5) million to effect the correction.
Landscape Maintenance Special Revenue Fund accounts for financial activities of landscape maintenance special revenue fund. The fund balance in FY 2024- 25 was $(10.0) million, a decrease of $2.0 million from FY 2023 -24. The shortfall and growing of the fund deficit is because the district was first established in 1978 and the assessment rate has not been updated for decades, which does not fully cover the growing expenditures.
American Rescue Plan Special Revenue Fund accounts for financial activities of the American Rescue Plan Act (ARPA) funds and expenditures. On March 10, 2021, ARPA was approved by the federal government, the plan provides stimulus to the United State economy. City allocated $24.4 million. The first allocation $12.2 million was received in August 2021 and the second was received in September 2022. In October 2021, City adopted Economic & Community Enhancement Plan to outline the spending plan which majority in road, building, park, water and sewer infrastructure. The FY2024- 25 revenue amounted to $2.1 million while expenditure and transfers out amounted to $ 2.1 million, which resulted in $0 ending fund balance as of June 30, 2025.
Grants Special Revenue Fund accounts for financial activities of federal and local grants of the City.
In FY 2024- 25, revenues and other financing sources totaled $8 .0 million, while expenditures and transfers out amounted to $11.7 million. As a result, the total fund balance decreased $(3 .7) million from $1.5 million to $(2.1) million. The decrease in fund balance is primarily due to transfers to Capital Projects Fund.
Retirement Special Revenue Fund accounts for revenue received from property tax levy to cover retirement costs. It had a fund balance of $6.6 million at the end of the fiscal year which represents a net increase of $2.2 million. The increase in fund balance is due to increase tax remitta nces to City from LA County.
Capital Improvement Fund accounts for activities related to capital improvement projects within the City. This fund is primarily funded through various sources, including special grant funds, bond proceeds, and local returns. These funds are dedicated to financing essential infrastructure projects such as roads, bridges, public buildings, parks, and other major investments aimed at improving the community's overall quality of life and infrastructure. The ending fund balance for this fund is $1.9 million.
461
City of Lynwood
Management’s Discussion and Analysis (Unaudited)
Year ended June 30, 2025
13 General Fund Budgetary Highlights
In the final general fund budget for FY 2024-25, estimated revenues and other financing sources were projected at $46.4 million. However, the actual revenues for the General Fund, including other financing sources, totaled $46.5 million, exceeding the budgeted amount by $.1 million.
The adopted general fund expenditures (including transfer out) budget for this fiscal year was $48.3 million. The final general fund expenditures budget (including transfer out) was $51.0 million while the actual expenditures (including transfers out) totaled $45.5 million. The $5.5 million variance was mainly due to decreases in expenditures across all departments of the City.
Capital Assets
At the end of Fiscal Year 2024-25 , the City had $248.0 million invested in capital assets. Of this amount, $224.4 million is related to Governmental Activities and $ 23.6 million to Business -type Activities. These amounts represent an increase from the previous year (FY 2024-25) of $15.2 million, when the City’s overall capital assets were $232.8 million, including $208.5 million in Governmental Activities and $24.3 million in Business-type Activities.
Additional information on the City’s Capital Assets can be found in the notes to the basic financial statements (Note 8).
Governmental
activities
Business-type
activities Total
Governmental
activities
Business-type
activities Total
Capital assets not being
depreciated 102,511,069$ 3, 557,813$ 106,068,882$ 92,717,355$ 5,529,793$ 98,247,148$ Capital assets, net of
accumulated depreciation 121,843,027 20, 064,293 141,907,320 115,740,678 18,819,379 134,560,057 Total 224,354,096$ 23,622,106$ 247,976,202$ 208,458,033$ 24,349,172$ 232,807,205$ Fiscal year 2024-25 (CURRENT) Fiscal year 2023-24
Table 5
Capital Assets
462
City of Lynwood
Management’s Discussion and Analysis (Unaudited)
Year ended June 30, 2025
14 Long-Term Debt
At fiscal year-end, the City’s governmental activities accounted for approximately $128.0 million in total long-term debt, which consist of revenue bonds, loans, lease payable, subscription payable claims payable, compensated absences, accrual for postemployment benefits and net pension liability.
Another $53.8 million in long term debt was outstanding for the business-type activities.
Additional information on the City’s long- term debt can be found in the notes to the basic financial statements (Note 9).
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City implemented a Two-Year Operating Budget for FY 2025-26 and FY2026-27. The fiscal year 2025-27 biennial budget was approved in June 2025, and the fiscal year 2026-27 (second year of the 2025-27 biennial budget) revised budget will be adopted in June 2026. The adopted revised General Fund operating revenue budget for FY 2025-26 is $44.2 million. The adopted General Fund operating expenditure budget for FY 2025- 26 is $48.0 million with an additional $2.8 million for nonoperating transfers out for a total of $50.8 million. The $6.6 million deficit is primarily due to $2.8 million transfers out to the reserve funds to enhance the City’s reserve balance and fiscal health. The $2.8 million transfers include $0.2 million transfer to Retirement Reserve Fund, $0.5 million transfer to the Contingency Reserve Fund and $0.7 million transfer out to the Rainy Day Reserve fund, $0.9 million to Litter Abatement Fund, and $0.5 million to Debt Service Fund.
Balance
July 1, 2024 Additions
Deletions/
Repayments
Balance
June 30, 2025
Due Within
One Year
Governmental Activities:
Compensated absences 1,497,694$ 401,782$ -$ 1,899,476$ 474,869$ Net pension liability 37,341,944 - (1,850,827) 35,491,117 - Net OPEB liability 16,856,681 - (530,891) 16,325,790 - Claims payable 5,030,000 561,000 - 5,591,000 1,322,857 Lease payable 531,576 853,982 (194,204) 1,191,354 283,937 Subscription liabilities 119,030 81,614 (82,249) 118,395 51,913 Loans, bonds and certificates 70,993,582 - (3,626,199) 67,367,383 3,734,590 Total 132,370,507$ 1,898,378$ (6,284,370)$ 127,984,515$ 5,868,166$ Business-type Activities:
Compensated absences 307,177$ 214,608$ (30,547)$ 491,238$ 122,810$ Net pension liability 7,315,255 - (406,400) 6,908,855 - Net OPEB liability 4,232,043 - (132,724) 4,099,319 - Lease payable 1,560 - (1,337) 223 223 Revenue bonds 43,374,925 - (1,042,820) 42,332,105 1,090,000 Total 55,230,960$ 214,608$ (1,613,828)$ 53,831,740$ 1,213,033$ Table 6
Outstanding Long-Term Debt
463
City of Lynwood
Management’s Discussion and Analysis (Unaudited)
Year ended June 30, 2025
15 The City’s budget was prepared using Zero Based Budgeting (ZBB). ZBB is an approach to budgeting in which each budgeted year’s activities are evaluated in a self -contained fashion, with little or no weight given to the precedents of past year. City Manager have developed fiscal policies such as minimize use “one- time money” for ongoing operations, and provide departments a consistent and strategic approach in preparing Two -Year Operating Budget. Every department and function budget were analyzed and expenses justified. Departments need to ensure that they are spending within their means. The overall general fund revenues have continued to improve due the approved Measure PS sales taxes along with strong Bradley Burns sales tax growth. Costs to provide servic es to the community have also continued to increase due to rising personnel and pension cost. City continues to explore additional sources of revenue to meet expectations for community service, public safety and needed infrastructure and capital improvement.
The adopted operating budget for FY 2025- 26 was developed in the context of growing economic uncertainties and concerns of a possible recession. Cautionary factors such as international tariff disputes, global supply chain disorder, continued inflationary pressures and higher recessionary fears have clouded the City’s economic outlook. Economists and financial analysts forecast either a mild recession or a very low GDP growth for the near future. Overall, the economic outlook is a mild decline or a very slow growth for the City, and staff continues to monitor the City’s exposure to these changing economic conditions
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report is intended to provide Lynwood citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances. If you have any questions about this report, or need additional fiscal information, contact the Department of Finance and Administration at 11330 Bullis Road, Lynwood, California, 90262, phone (310) 603-0220.
464
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465
BASIC FINANCIAL STATEMENTS
466
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467
GOVERNMENT-WIDE FINANCIAL STATEMENTS
468
City of Lynwood
Statement of Net Position
June 30, 2025
See notes to basic financial statements.
16 Governmental Business-Type
Activities Activities Total
ASSETS
Current assets
Cash and investments $ 84,919,290 $ 6,676,624 $ 91,595,914 Receivables
Accounts and taxes, net 9,055,918 3,038,115 12,094,033 Interest 394,039 - 394,039 Intergovernmental 8,056,702 - 8,056,702 Lease receivable, due in one year 149,420 - 149,420 Prepaid items 75,129 64,902 140,031 Total current assets 102,650,498 9,779,641 112,430,139 Noncurrent assets
Restricted cash and investments
Held by City 7,336 - 7,336 Held by fiscal agent 29,365,449 21,433,365 50,798,814 Deposit in trust 300,000 - 300,000 Lease receivable, due in more than one year 4,960,468 - 4,960,468 Notes and loans receivable 21,346,905 - 21,346,905 Capital assets
Nondepreciable 102,511,069 3,557,813 106,068,882 Depreciable, net 121,843,027 20,064,293 141,907,320 Total capital assets 224,354,096 23,622,106 247,976,202 Total noncurrent assets 280,334,254 45,055,471 325,389,725 Total assets 382,984,752 54,835,112 437,819,864
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding - 126,301 126,301 Pensions related 7,476,655 1,231,790 8,708,445 Other postemployment benefits related 2,599,025 652,601 3,251,626 Total deferred outflows of resources 10,075,680 2,010,692 12,086,372 (Continued)
Primary Government
469
City of Lynwood
Statement of Net Position (Continued)
June 30, 2025
See notes to basic financial statements.
17 Governmental Business-Type
Activities Activities Total
LIABILITIES
Current liabilities
Accounts payable $ 6,961,652 $ 805,919 $ 7,767,571 Accrued liabilities 990,934 173,025 1,163,959 Retention payable 695,043 - 695,043 Deposits 3,531,258 122,644 3,653,902
Advances from Successor Agency 957,380 - 957,380 Unearned revenue 753,935 - 753,935 Long-term liabilities, due within one year 5,868,166 1,213,033 7,081,199 Total current liabilities 19,758,368 2,314,621 22,072,989 Noncurrent liabilities
Long-term liabilities, due in more than one year 70,299,442 41,610,533 111,909,975 Net pension liability 35,491,117 6,908,855 42,399,972 Net other postemployment benefits liability 16,325,790 4,099,319 20,425,109 Total noncurrent liabilities 122,116,349 52,618,707 174,735,056 Total liabilities 141,874,717 54,933,328 196,808,045
DEFERRED INFLOWS OF RESOURCES
Pensions related 587,444 - 587,444 Other postemployment benefits related 1,195,487 300,181 1,495,668 Lease 6,220,218 - 6,220,218
Total deferred inflows of resources 8,003,149 300,181 8,303,330
NET POSITION
Net investment in capital assets 171,761,905 1,246,987 173,008,892 Restricted
Community development 13,709,256 - 13,709,256 Public works 13,308,539 - 13,308,539 Capital projects 17,165,651 - 17,165,651 Retirement 6,577,697 - 6,577,697 Debt service 4,964,997 1,602,457 6,567,454
Self-insurance 300,000 - 300,000 Unrestricted 15,394,521 (1,237,149) 14,157,372 Total net position $ 243,182,566 $ 1,612,295 $ 244,794,861 (Concluded)
Primary Government
470
City of Lynwood
Statement of Activities
Year ended June 30, 2025
See notes to basic financial statements.
18 Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental activities
General government $ 6,237,894 $ 323,424 $ 2,076,321 $ - Public safety 22,591,516 - 293,585 - Public works 18,939,241 1,211,708 16,689,506 - Community development 13,887,039 1,096,095 4,195,246 - Parks and recreation 5,502,148 486,022 5,724 - Interest 2,522,471 - - - Total governmental activities 69,680,309 3,117,249 23,260,382 - Business-type Activities
Water and sewer 15,002,557 16,794,701 - - Total business-type activities 15,002,557 16,794,701 - - Total primary government $ 84,682,866 $ 19,911,950 $ 23,260,382 $ - (Continued)
Program Revenues
471
City of Lynwood
Statement of Activities (Continued)
Year ended June 30, 2025
See notes to basic financial statements.
19 Governmental Business-Type
Functions/Programs Activities Activities Total
Governmental activities
General government $ (3,838,149) $ - $ ( 3,838,149) Public safety (22,297,931) - (22,297,931) Public works (1,038,027) - (1,038,027) Community development (8,595,698) - (8,595,698) Parks and recreation (5,010,402) - (5,010,402) Interest (2,522,471) - (2,522,471) Total governmental activities (43,302,678) - (43,302,678) Business-type Activities
Water and sewer - 1,792,144 1,792,144 T
otal business-type activities - 1,792,144 1,792,144 Total primary government (43,302,678) 1,792,144 (41,510,534) General revenues and transfers
General revenues
Taxes:
Property taxes 21,030,617 - 21,030,617 Utility users taxes 7,030,394 - 7,030,394 Sales and use taxes 17,737,227 - 17,737,227 Franchise taxes 2,264,151 - 2,264,151 Business license taxes 1,392,153 - 1,392,153 Other taxes 5,876,095 - 5,876,095 Total taxes 55,330,637 - 55,330,637 Investment earnings 3,624,248 791,725 4,415,973 Miscellaneous 413,566 - 413,566 Total general revenues 59,368,451 791,725 60,160,176 Transfers 3,515,238 (3,515,238) -
Total general revenues and transfers 62,883,689 (2,723,513) 60,160,176 Change in net position 19,581,011 (931,369) 18,649,642 Net position, beginning of year 223,601,555 2,543,664 226,145,219 Net position - end of year $ 243,182,566 $ 1,612,295 $ 244, 794,861 (Concluded)
Net (Expense) Revenue and
Changes in Net Position
472
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473
FUND FINANCIAL STATEMENTS
474
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475
GOVERNMENTAL FUND FINANCIAL STATEMENTS
476
City of Lynwood
Balance Sheet
Governmental Funds
June 30, 2025
See notes to basic financial statements.
20 Housing Landscape American Rescue
General Authority Maintenance Plan Act Grants
ASSETS
Cash and investments $ 19,027,054 $ 2,162,487 $ 19,218 $ 807,386 $ 3,223,847 Receivables
Accounts and taxes, net - - - - 8,846,082 Interest 269,344 124,695 - - - Intergovernmental 3,665,660 - 17,245 - 3,531,150 Notes and loans receivables, net 40,833 18,109,037 - - 3,197,035 Lease receivable 5,109,888 - - - - Due from other funds 34,072,445 - - - - Restricted cash and investments
Cash and investments 7,336 - - - - Cash and investments with fiscal agents 1,001,078 5,774,216 - - - Total assets $ 63,193,638 $ 26,170,435 $ 36,463 $ 807,386 $ 18,798,114
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities
Accounts payable $ 3,750,986 $ 25,525 $ 47,821 $ 54,615 $ 621,960 Accrued liabilities 318,280 - 19,218 3,141 14,941 Retention payable - - 629 - - Deposits 1,686,221 1,500,037 - - - Due to other funds - - 9,922,808 - 14,219,230 Advances from Successor Agency 957,380 - - - - Unearned revenue - - - 749,630 - Total liabilities 6,712,867 1,525,562 9,990,476 807,386 14,856,131 Deferred inflows of resources
Lease 6,220,218 - - - - Unavailable revenue 10,142 18,109,037 - - 6,075,816 Total deferred inflows of resources 6,230,360 18,109,037 - - 6,075,816 Fund balances (deficits)
Restricted
Public works 1,008,414 - - - - Community development - 6,535,836 - - - Retirement - - - - - Capital projects - - - - - Debt service - - - - - Committed 17,018,538 - - - - Assigned 28,012,425 - - - - Unassigned 4,211,034 - (9,954,013) - (2,133,833) Total fund balances (deficits) 50,250,411 6,535,836 (9,954,013) - (2,133,833) Total liabilities, deferred inflows of
resources, and fund balances $ 63,193,638 $ 26,170,435 $ 36,463 $ 807,386 $ 18,798,114 (Continued)
Special Revenue Funds
477
City of Lynwood
Balance Sheet (Continued)
Governmental Funds
June 30, 2025
See notes to basic financial statements.
21 Capital Projects
Fund Nonmajor Total
Capital Governmental Governmental
Retirement Improvement Funds Funds
ASSETS
Cash and investments $ 6,474,212 $ 3,532,691 $ 27,872,921 $ 63,119,816 Receivables
Accounts and taxes, net - - 202,636 9,048,718 Interest - - - 394,039 Intergovernmental 103,485 - 739,162 8,056,702 Notes and loans receivables, net - - - 21,346,905 Lease receivable - - - 5,109,888 Due from other funds - - - 34,072,445 Restricted cash and investments
Cash and investments - - - 7,336 Cash and investments with fiscal agents - - 22,590,155 29,365,449 Total assets $ 6,577,697 $ 3,532,691 $ 51,404,874 $ 170,521,298
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities
Accounts payable $ - $ 947,369 $ 1,372,340 $ 6,820,616 Accrued liabilities - - 32,331 387,911 Retention payable - 694,414 - 695,043 Deposits - - 345,000 3,531,258 Due to other funds - - 9,468,810 33,610,848 Advances from Successor Agency - - - 957,380 Unearned revenue - - 666 750,296 Total liabilities - 1,641,783 11,219,147 46,753,352 Deferred inflows of resources
Lease - - - 6,220,218 Unavailable revenue - - 230,750 24,425,745 Total deferred inflows of resources - - 230,750 30,645,963 Fund balances (deficits)
Restricted
Public works - - 12,300,125 13,308,539 Community development - - 7,173,420 13,709,256 Retirement 6,577,697 - - 6,577,697 Capital projects - 1,890,908 15,274,743 17,165,651 Debt service - - 4,964,997 4,964,997 Committed - - 769,218 17,787,756 Assigned - - - 28,012,425 Unassigned - - (527,526) (8,404,338) Total fund balances (deficits) 6,577,697 1,890,908 39,954,977 93,121,983 Total liabilities, deferred inflows of
resources, and fund balances $ 6,577,697 $ 3,532,691 $ 51,404,874 $ 170,521,298 (Concluded)
Special
Revenue Fund
478
City of Lynwood
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position
June 30, 2025
See notes to basic financial statements.
22 Total fund balances - total governmental funds 93,121,983$ A
mounts reported for governmental activities in the statement of net position are different because:
Nondepreciable assets 102,511,069$
Depreciable and amortizable assets, net 121,843,027
Less: Amount reported in Internal Service Fund (1,539,471) 222,814,625 24,425,745
Compensated absences (1,899,476)
Revenue bonds, certificates, loans, lease and subscription payable (67,431,045) (69,330,521) Net pension liability (35,491,117)
Defe
rred outflows of resources 7,476,655
Deferred inflows of resources (587,444) (28,601,906) Net OPEB liability (16,325,790)
Deferred outflows of resources 2,599,025
Deferred inflows of resources (1,195,487) (14,922,252) (529,488)
16,204,380
Net position of governmental activities 243,182,566$
Net OPEB liability and related deferred outflows and inflows of resources are not due and payable in the current period; therefore, are not reported as government funds' liabilities.
They are reported in the Statement of Net Position.
Internal service funds are used by management to charge the costs of certain activities, such as self-insurance, to individual funds. The assets and liabilities of the internal service funds are added to the statement of net position.
Amount reported in government-wide statement of position:
Accrued interest payable due on long-term debt not reported in the governmental funds.
Capital assets used in governmental activities are not current financial resources and therefore are not reported in governmental funds. Those assets consist of:
Unavailable revenues are not available to pay for current period expenditures and therefore are deferred in the funds but recognized as revenue in the Statement of Activities.
Long-term liabilities are not due and payable in the current period and therefore, are not reported in the governmental funds. Governmental funds report the effect of premiums, discounts and gains or losses on debt refundings when the debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities.
Net pension liability and related deferred outflows and inflows of resources are not due and payable in the current period; therefore, are not reported as government funds' liabilities.
They are reported in the Statement of Net Position.
479
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480
City of Lynwood
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year ended June 30, 2025
See notes to basic financial statements.
23 Housing Landscape American Rescue
Gener
al Authority Maintenance Plan Act Grants
REVENUES
Taxes and assessments $ 37,922,120 $ - $ 1,069,206 $ - $ - Licenses and permits 1,276,885 - - - - Fines, forfeitures and penalties 1,548,235 - - - - Use of money and property 2,502,521 205,651 6,834 14,208 45,331 Intergovernmental 213,938 - - 2,076,321 7,930,501 Charges for services 2,687,454 - - - - Miscellaneous 379,175 - - - 69,680 Total revenues 46,530,328 205,651 1,076,040 2,090,529 8,045,512
EXPENDITURES
Current
General government 4,117,214 - - 599,705 - Public safety 22,338,388 - - - 70,880 Public works 3,956,340 - 3,093,127 - 22,258 Community development 6,207,729 818,482 - - 6,480,331 Parks and recreation 4,877,210 - - - 189,163 Capital outlay 54,362 - - - 1,420,798 Debt service
Principal retirement 1,346,514 1,755,000 - - - Interest and fiscal charges 1,321,344 430,324 - - - Total expenditures 44,219,101 3,003,806 3,093,127 599,705 8,183,430
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,311,227 (2,798,155) (2,017,087) 1,490,824 (137,918)
OTHER FINANCING SOURCES (USES)
Transfers in 8,190 - - - - Transfers out (1,292,543) - - (1,490,824) (3,542,378) Total other financing uses (1,284,353) - - (1,490,824) (3,542,378) CHANGES IN FUND BALANCES 1,026,874 (2, 798,155) (2,017,087) - (3,680,296)
FUND BALANCES (DEFICITS)
Fund balances (deficits), July 1, as previously
reported 49,223, 537 26,814,837 (7,936,926) - 1,546,463 Change within financial reporting entity
(nonmajor to major fund) - - - - - Restatement - (17,480,846) - - - Fund balances, July 1, as restated 49,223,537 9,333,991 (7,936,926) - 1,546,463 End of year $ 50,250,411 $ 6,535,836 $ (9,954,013) $ - $ (2,133,833) (Continued)
Special Revenue Funds
481
City of Lynwood
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
Year ended June 30, 2025
See notes to basic financial statements.
24 Capital Projects
Fund Nonmajor T otal
Capital Governmental Governmental
Retirement Improvement Funds Funds
REVENUES
Taxes and assessments $ 7,992,433 $ - $ 6,971,832 $ 53,955,591 Licenses and permits - - 115,268 1,392,153 Fines, forfeitures and penalties - - - 1,548,235 Use of money and property - 12,551 828,976 3,616,072 Intergovernmental - - 5,711,521 15,932,281 Charges for services - - 435,519 3,122,973 Miscellaneous - - 34,391 483,246 Total revenues 7,992,433 12,551 14,097,507 80,050,551
EXPENDITURES
Current
General government 955,949 - 15,968 5,688,836 Public safety 857,629 - - 23,266,897 Public works 1,275,742 179,523 8,207,715 16,734,705 Community development 651,354 - 143,688 14,301,584 Parks and recreation 343,658 - 14,664 5,424,695 Capital outlay - 17,498,022 1,071,558 20,044,740 Debt service
Principal retirement - - 609,725 3,711,239 Interest and fiscal charges - - 790,621 2,542,289 Total expenditures 4,084,332 17,677,545 10,853,939 91,714,985
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,908,101 (17,664,994) 3,243,568 (11,664,434)
OTHER FINANCING SOURCES (USES)
Transfers in - 19,114,379 2,754,645 21,877,214 Transfers out (1,757,637) - (12,036,231) (20,119,613) Total other financing sources (uses) (1,757,637) 19,114,379 (9,281,586) 1,757,601 CHANGES IN FUND BALANCES 2,150,464 1, 449,385 (6,038,018) (9,906,833)
FUND BALANCES (DEFICITS)
Fund balances (deficits), July 1, as previously
reported - 441,523 50,420,228 120,509,662 Change within financial reporting entity
(nonmajor to major fund) 4,427,233 - (4,427,233) - Restatement - - - (17,480,846) Fund balances, July 1, as restated 4,427,233 441,523 45,992,995 103,028,816 End of year $ 6,577,697 $ 1,890,908 $ 39,954,977 $ 93,121,983 (Concluded)
Special
Revenue
Fund
482
City of Lynwood
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities Year ended June 30, 2025
See notes to basic financial statements.
25 (9,906,833)$
A
mounts reported for governmental activities in the Statement of Activities are different because:
Capital outlay expenditures 20,044,740$
Deletions to capital assets (1,178,238)
Depreciation and amortization expenses (3,800,904) 15,065,598 5,695,531
Principal repayments 3,711,239
Interest on bonds 34,048
Pension expense (670,267)
OPEB expense 934,329
Net change in compensated absences (401,782) (103,672) Amortization of debt premium 40,481
Amortization of debt discount (54,709) (14,228) 5,133,376
Change in net position of governmental activities 19,581,011$ Internal service funds are used by management to charge the costs of certain activities, such as vehicle, information technology, self-insurance, and facility maintenance to individual funds.
The net revenues of the internal service funds are reported with governmental activities.
Changes in fund balances - total governmental funds
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation and amortization expenses. This is the amount by which capital expenditures exceeded depr
eciation and amortization in the current period:
Revenues that are measurable but not available and are reported as unavailable revenue under the modified accrual basis of accounting in the governmental funds.
Proceeds from long-term debt provided current financial resources to governmental funds, but issuing debt increased long-term liabilities in the Government-Wide Statement of Net Position.
Repayment of principal was an expenditure in the governmental funds, but the repayment r
educed long-term liabilities in the Government-Wide Statement of Net Position.
Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds:
Under the modified accrual basis of accounting used in the governmental funds, expenditures are not recognized for transactions that are not normally paid with expendable available financial resources. In the Statement of Activities, however, which is presented on the ac
crual basis, expenses and liabilities are reported regardless of when financial resources are available:
483
PROPRIETARY FUND FINANCIAL STATEMENTS
484
City of Lynwood
Statement of Net Position
Proprietary Funds
June 30, 2025
See notes to basic financial statements.
26 Business-Type Governmental
Activities Activities
W
ater and
Sewer Enterprise Internal
Fund Service Funds
ASSETS
Current Assets
Cash and investments $ 6,676,624 $ 21,799,474
Accounts receivable, net 3,038,115 7,200
Prepaid items 64,902 75,129
Total current assets 9,779,641 21,881,803
Noncurrent assets
Restricted cash and investments
Held by fiscal agents 21,433,365 -
Deposit in trust - 300,000
Capital assets
Capital assets, not being depreciated 3,557,813 - Capital assets, being depreciated and amortized, net 20,064,293 1,539,471 Total capital assets, net 23,622,106 1,539,471
Total noncurrent assets 45,055,471 1,839,471
Total assets 54,835,112 23,721,274
DEFERRED OUTFLOWS OF RESOURCES
Deferred loss on refunding 126,301 -
Pensions related 1,231,790 -
Other postemployment benefits related 652,601 - Total deferred outflows of resources 2,010,692 - (Continued)
485
City of Lynwood
Statement of Net Position (Continued)
Proprietary Funds
June 30, 2025
See notes to basic financial statements.
27 Business-Type Governmental
Activities Activities
Water and
Sewer Enterprise I nternal
Fund Service Funds
LIABILITIES
Current liabilities
Accounts payable $ 805,919 $ 141,036
Accrued expenses 48,561 73,535
Accrued interest 124,464 -
Deposits 122,644 -
Unearned revenues - 3,639
Due to other funds - 461,597
Compensated absences, due within one year 122,810 - Claims payable, due within one year - 1,322,857 Lease payable, due within one year 223 303,542 Revenue bonds payable, due within one year 1,090,000 - Total current liabilities 2,314,621 2,306,206
Noncurrent liabilities
Compensated absences, due in more than one year 368,428 - Claims payable, due in more than one year - 4,268,143 Lease payable, due in more than one year - 942,545 Revenue bonds payable, due in more than one year 41,242,105 - Net pension liabilities 6,908,855 -
Net other postemployment benefits liabilities 4,099,319 - Total noncurrent liabilities 52,618,707 5,210,688 Total liabilities 54,933,328 7,516,894
DEFERRED INFLOW OF RESOURCES
Other postemployment benefits related 300,181 - Total deferred inflow of resources 300,181 -
NET POSITION
Net investment in capital assets 1,246,987 293,384 Restricted
Debt service 1,602,457 -
Self-insurance - 300,000
Unrestricted (1,237,149) 15,610,996
Total net position $ 1,612,295 $ 16,204,380
(Concluded)
486
City of Lynwood
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year ended June 30, 2025
See notes to basic financial statements.
28 Business-Type Governmental
Activities Activities
Water and
Sewer Enterprise Internal
Fund Service Funds