Montebello City Council
February 22, 2023

8 Exhibit N
1603\46\2864071.5
competent jurisdiction, such illegality or invalidity shall not affect the balance of the terms and provisions hereof, which terms and provisions shall remain binding and enforceable.

24. This Guaranty may be executed in any number of counterparts each of which shall be deemed an original and all of which shall constitute one and the same Guaranty with the same effect as if all parties had signed the same signature page. Any signature page of this Guaranty may be detached from any counterpart of this Guaranty and re-attached to any other counterpart of this Guaranty identical inform hereto but having attached to it one or more additional signature pages.

25. No failure or delay on the part of City to exercise any power, right or privilege under this Guaranty shall impair any such power, right or privilege, or be construed to be a waiver of any event of default or any acquiescence therein, nor shall any single or partial exercise of such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.

26. This Guaranty shall constitute the entire agreement between Guarantor and the City with respect to the subject matter hereof. No provision of this Guaranty or right of City hereunder may be waived nor may Guarantor be released from any obligation hereunder except by a writing duly executed by an authorized officer, director or trustee of City.

27. The liability of Guarantor and all rights, powers and remedies of City hereunder and under any other agreement now or at any time hereafter in force between City and Guarantor relating to the Phase II Project shall be cumulative and not alternative and such rights, powers and remedies shall be in addition to all rights, powers and remedies given to City by law. Separate and successive actions may be brought hereunder to enforce any of the provisions hereof at any time and from time to time. No action hereunder shall preclude any subsequent action, and Guarantor, hereby waives any covenants to the maximum extent permitted by law not to assert any defense in the nature of splitting of causes of action or merger of judgments.

28. The Director shall have the authority to implement the terms of this Guaranty, including to make approvals, issue interpretations, grant the Permitted Extensions, and execute documents on behalf of the City, including, without limitation, subordination agreements, so long as such actions do not materially change the purpose and intent of this Guaranty or add to the costs incurred or to be incurred by the City as specified herein.

CESAR CHAVEZ FOUNDATION,
a California non-profit corporation
By: ___________________,
its _____________________

9 Exhibit N
1603\46\2864071.5
Attachment “1”
Phase II Narrative

8.19Project Name
The current name of the project is The Boulevard (project), but will be changed at a later time. The Cesar Chavez Foundation (CCF) will rename the project after a founding movement member to memorialize their dedication and commitment in advocating for social, labor and civil rights of working class families.

8.20Site Location
The Project is located on five (5) commercial lots at 501, 507, 509, 513, 517, 525 Whittier Boulevard in Montebello, California 90640. The site has the following Assessor’s Parcel Numbers (APN): 6349-005-011, 012, 013, 014, 015 and 037 in the Downtown District of the City. The site is approximately 35,000 square feet or .80 acres. The census tract is 5321.01. California’s Congressional District 38, State Senate District 32, State Assembly District 58, and Los Angeles Supervisorial District 1. The TCAC/HCD opportunity map category is listed as a Low Resource area.

8.21Project Description
The Boulevard (“Project”) is zoned and approved for a mixed-use/mixed-income sixty-nine (69) units, and with the State density bonus can get ninety-three (93) units by-right. CCF is partnering with the City of Montebello, California for this development to be the catalyst in implementing the vision and goals of the City’s future Downtown Specific Plan, as proposed by the Planning & Community Development Department, by building and encouraging strong neighborhoods combining strong economic business opportunities, public transit and quality residential housing. The City’s Approved Housing Element has this site identified as part of the Downtown Specific Plan to encourage economic activity and transit orientated development in the Downtown area. The project will also assist the City in meeting its State’s Regional Hosing Needs Assessment (RHNA) as required by the State’s Housing Law.

The mixed-use development will house affordable and workforce families earning thirty percent (30%) to eighty percent (80%) of the area median income for Los Angeles County. CCF will continue its commitment to house the less fortunate population by providing thirty percent (30%) of the total units for survivors of domestic violence. The commercial component will have retail/commercial space. There will be subterranean and/or on grade podium parking. The development will utilize sustainable building methods, solar panels and will be green certified.

8.22Organizational Structure
The proposed project will be owned and operated by Montebello Housing Development, LP that will be managed by a general partner, Montebello Housing Development, LLC, a single asset limited liability company, whose sole manager and member will be Vista del Monte Affordable Housing, Inc., a California non-profit corporation whose affiliate is Cesar Chavez Foundation who is the developer. An investor will hold a 99.9% limited partner interest in the partnership.

10 Exhibit N
1603\46\2864071.5
Attachment “2”
Schedule of Performance

Site Control ENA Completed
Planning PD and ZC Approval Completed
SGVRHTF Application Completed
SGVRHTF Award Completed
City Loan Award $950,000 Completed
City HOME ARP Application Completed
HCD IIG-Catalytic Application 1 Completed
HCD IIG-Catalytic Application 2 March 2023
City HOME ARP Award April 2023
Site Plan Submittal June 2023
HCD IIG-Catalytic Award June 2023
AHSC Application March 2024
AHSC Award August 2024
Kick Off Construction Drawing October 2024
CDLAC/CTCAC 4% Submittal February 2025
Construction Drawing Submittal April 2025
CDLAC/CTCAC 4% Award May 2025
Construction Drawing Approval/Building Permits October 2025 Partnership/Construction Closing November 2025
Construction Start (24 Month Schedule) January 2026
Ground Breaking March 2026
Construction 50% Complete January 2027
Construction Complete January 2028
Grand Opening May 2028

ATTACHMENT B
CITY COUNCIL RESOLUTION NO. 23-18
SUCCESSOR AGENCY RESOLUTON NO. 23-04

A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MONTEBELLO AND MONTEBELLO SUCCESSOR AGENCY

APPROVING A PURCHASE, SALE, AND AFFORDABLE HOUSING

DEVELOPMENT AGREEMENT, RELOCATION PLAN AND APPRAISAL
FOR PHASE 1 PROJECT SITE AMONG THE CITY OF MONTEBELLO

AND THE MONTEBELLO SUCCESSOR AGENCY AND THE

MONTEBELLO AFFORDABLE HOUSING, LP FOR REAL PROPERTY
LOCATED AT 112, 114, 124, 128 AND 132 SOUTH 6TH STREET

GRAND, CITY OF MONTEBELLO

RECITALS
WHEREAS, the City is the owner of those certain parcels of real property located at 112, 114, 124, and 132 South 6th Street, City of Montebello (the “City Properties”), the Successor Agency is the owner of that certain parcel of real property located at 121 S. 6th Street, City of Montebello (the “SA Property”), and Montebello Affordable Housing LP, a California limited partnership (“Developer”), is the owner of those certain parcels of real property located at 128 and 128 ½ South 6th Street, City of Montebello (the “Developer Property”);
WHEREAS, Developer desires to purchase the City Properties from the City and the SA Property from the Successor Agency, to consolidate the City Properties with the Developer Property to create a single development parcel (the “Project Site”) for construction and operation of a sixty-three (63) unit affordable housing project with supportive services targeting families and survivors of domestic violence (the “Project”), and retain the SA Property for future development; and
WHEREAS, an Amended and Restated Purchase, Sale, and Affordable Housing Development Agreement (“Agreement”), attached hereto as Exhibit A, has been prepared by the City, Successor Agency, and Developer, and which establishes the terms and conditions by which the City will sell the City Properties to Developer and make certain loans to assist development of the Project, the Successor Agency will sell the SA Property to Developer, Developer will purchase the City Properties and SA Property, and Developer will develop the Project Site with the Project and maintain the affordability of the resulting housing units for at least fifty-five (55) years; and WHEREAS, the City Council and Governing Board of the Successor Agency have considered all evidence presented in connection with its consideration of the Agreement, including but not limited to staff reports, presentations, public testimony, and plans and specifications for the Project, and based upon the foregoing find and declare:

A. Developer’s proposed acquisition of the subject properties and construction and completion of the Project on the Project Site pursuant to the terms of this Agreement is in the best interest of the City and the health, safety and welfare of the City’s taxpayers and residents, advances stated housing goals of the

CITY COUNCIL RESOLUTION NO. 23-18
SUCCESSOR AGENCY RESOLUTON NO. 23-04

state and City and public purposes set forth in applicable law, and is expressly authorized by applicable law.

B. Implementation of the Agreement will further and is consistent with the goals and objectives of the General Plan of the City of Montebello by promoting development of affordable housing in a manner compatible with surrounding uses and on a site identified by the City as appropriate for low income housing, and the Project will provide new housing for low, very-low and extremely-low income households furthering the City’s Regional Housing Needs Assessment (RHNA) obligation.

C. Implementation of this Agreement is consistent with the requirements of the Montebello Zoning Code by advancing City goals of revitalizing the downtown district, providing affordable housing options to residents, and creating job opportunities for the community, and the Agreement advances an overriding public interest by addressing the shortage of affordable housing in the community through the creation of affordable units with supportive services.

D. Pursuant to Section 34364 of the Government Code and notwithstanding any other law, the City may sell, convey, or otherwise dispose of the subject properties to Developer for the provision of affordable housing on the terms and conditions the City deems best suited to the provision of such housing.

E. The Successor Agency’s sale of the SA Property to the City was approved by Resolution No. 18-05 of the Montebello Oversight Board adopted on June 19, 2018, and by the Agreement the City assigns and conveys its right to purchase the Property to Developer subject to the terms and conditions specified in this Agreement. The proceeds of the resulting sale will be relinquished to area taxing entities in the manner required by the Redevelopment Dissolution Law (H&S Code § 34170 et seq.) F. A relocation plan has been prepared to evaluate the present circumstances, replacement housing of displaces, and any relocation assistance required by applicable law in connection with the Project (“Relocation Plan”).

G. Appraisals have been prepared for the City Properties and SA Property to establish the fair market value thereof (the “Appraisals”) and said Appraisals have been considered in connection with this Resolution and used to establish the purchase price of the subject properties.

H. The City, as “lead agency,” has evaluated the potential environmental impacts of the this Agreement pursuant to the requirements of the California Environmental Quality Act by way of: (a) a Mitigated Negative Declaration that was approved by the City Council on June 22, 2016 (“MND”), which found that the “project” described in the original PSDA, with mitigation, would not have a significant effect on the environment; and (b) an Addendum to the MND that was approved by the City Council on November 10, 2021, and

CITY COUNCIL RESOLUTION NO. 23-18
SUCCESSOR AGENCY RESOLUTON NO. 23-04

concluded that none of the circumstances requiring preparation of a new negative declaration, mitigated negative declaration, or environmental impact report exist. This Agreement merely implements the Project analyzed in the MND and Addendum and does not result or cause any new environmental impacts not previously analyzed and disclosed therein.

WHEREAS, all other legal prerequisites to the adoption of this resolution and approval of the Agreement have been duly performed.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO

AND GOVERNING BOARD FOR THE SUCCESSOR AGENCY HEREBY RESOLVE, FIND, AND DECLARE AS FOLLOWS:

SECTION 1: Based on all evidence presented in connection with its consideration of this Resolution, including but not limited to staff reports, presentations, and public testimony, the City Council and Governing Board of the Successor Agency find and declare that the above recitals are true and correct and therefore incorporated herein as a substantive part.

SECTION 2: The City Council and the Governing Board of the Successor Agency hereby approve Appraisals and the Relocation Plan submitted herewith this Report and authorize and direct the City Manager to take such action(s) as are reasonably necessary to ensure compliance and implementation of the Relocation Plan.

SECTION 3:The Amended and Restated Purchase, Sale, and Affordable Housing Development Agreement, in substantially the form as attached to this Resolution, between the City, Successor Agency, and Montebello Affordable Housing LP. The City Council and Successor Agency further authorize and direct the City Manager and Executive Director to execute the Agreement and all other ancillary documents, including but not limited to, escrow instructions, deeds, seller affidavits, and such other customary documents consistent with and reasonably necessary to effectuate the intent of this Resolution and the Agreement, in a form approved by the City Attorney.

SECTION 4: the City Clerk shall certify to the passage and adoption of this Resolution and that the same shall be in full force and effect. Notwithstanding the foregoing, this Resolution shall be deemed adopted effective February 22, 2023.

CITY COUNCIL RESOLUTION NO. 23-18
SUCCESSOR AGENCY RESOLUTON NO. 23-04

APPROVED and ADOPTED this 22nd day of February 2023.
_______________________________
David Torres, Mayor
ATTEST:APPROVED AS TO FORM:

________________________________ ________________________________ Christopher Jimenez, City Clerk Arnold M. Alvarez-Glasman, City Attorney

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF MONTEBELLO )
I, Christopher Jimenez, City Clerk of the City of Montebello, County of Los Angeles, State of California, hereby certify that the foregoing City Council Resolution No. 23-18/ Successor Agency Resolution No. 23-04 was passed and adopted by the City Council of the City of Montebello, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 22nd day of February, 2023 and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

The undersigned, City Clerk of the City of Montebello, does hereby attest and certify that the foregoing City Council Resolution No. 23-18/ Successor Agency Resolution No. 23- 04, is a true, full and correct copy of a resolution duly adopted at a meeting of said City which was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof.

DATE:

Christopher Jimenez, City Clerk

6th Street Grand Project

RELOCATION PLAN

Prepared for:

Vista Del Monte Affordable Housing, Inc.
555 N. Broadway, Unit B103
Los Angeles, CA 90012

Prepared by:

Overland, Pacific & Cutler, LLC
3750 Schaufele Avenue, Suite 150
Long Beach, CA 90808
(562) 304-2000

February 2022

ATTACHMENT C

TABLE OF CONTENTS

INTRODUCTION 1

I. PROJECT DESCRIPTION 3
A. REGIONAL LOCATION 3
B. PROJECT SITE LOCATION 3

II. ASSESSMENT OF RELOCATION NEEDS 5
A. SURVEY METHOD 5
B. FIELD STUDY DATA 5

1. Current Occupants 5

2. Replacement Housing Needs 5

3. Income 5

4. Ethnicity/Language 6

5. Senior/Handicapped Households 6

6. Comparable Replacement Housing Needs 6

III. RELOCATION RESOURCES 7
A. METHODOLOGY 7
B. COMPARABLE REPLACEMENT HOUSING AVAILABILITY 7 C. RELATED ISSUES 8

IV. THE RELOCATION PROGRAM 9
A. ADVISORY ASSISTANCE 9
B. RELOCATION BENEFITS 11

1. Residential Moving Expense Payments 11

2. Rental Assistance to Tenants Who Choose to Rent 12

3. Downpayment Assistance to Tenants Who Choose to Purchase 14 C. PROGRAM ASSURANCES AND STANDARDS 15
D. GENERAL INFORMATION REGARDING THE PAYMENT OF RELOCATION BENEFITS15 E. LAST RESORT HOUSING 16
F. IMMIGRATION STATUS 16
G. RELOCATION TAX CONSEQUENCES 16

V. ADMINISTRATIVE PROVISIONS 18
A. NOTICES 18
B. PRIVACY RECORDS 19
C. GRIEVANCE PROCEDURES 19
D. EVICTION POLICY 19
E. CITIZEN PARTICIPATION 20
F PROJECTED DATE OF DISPLACEMENT 20
G. ESTIMATED RELOCATION COSTS 21

LIST OF TABLES

TABLE 1: Availability and Cost of Replacement Rental Housing 7 TABLE 2: Schedule of Fixed Moving Payments 12 TABLE 3: Computation of Rental Assistance Payments 14

LIST OF EXHIBITS

EXHIBIT A: HUD Income Limits
EXHIBIT B: Informational Statement
EXHIBIT C: General Information Notice
EXHIBIT D: Notice of Eligibility
EXHIBIT E: Notice to Vacate
EXHIBIT F: Advisory Notice
EXHIBIT G: Public Comments & Responses

1 Introduction

Vista Del Monte Affordable Housing, Inc.(“Developer”) has proposed the 6th Street Grand Project (“Project”), an affordable housing project consisting of the new construction of 63 affordable housing units with on-site subterranean parking and related amenities.

The Developer has proposed to purchase six City/Agency -owned parcels and enter i nto an ENA and DDA with the City of Montebello/Successor Agency for the development of the site as stated above. The parcels are located at 112, 114, 121, 124, 128, and 132 S. 6th Street, Montebello, CA 90640 (“Project site”). All parcels are vacant with the exception of two occupied residential dwellings located at 128 and 128 ½ S. 6 th Street, and that acquisition has been completed by the Developer.

The new units will be comprised of 62 tenant units plus one manager’s unit for a total of 63 units.

The units will consist of 27 one-bedroom units, 16 two-bedroom units, 19 three-bedroom units and a three-bedroom manager’s unit. Tenant units will be offered to households at 30% – 60% area median income (AMI). The proposed Project is in conformance with the local housing element.

The Developer anticipates applying for, and utilizing, the following sources of funding: a City of Montebello Land Loan Note, LACDA AHTF funding, LACDA Project-based Vouchers, CTCAC 9% LIHTC, IIG funds from HCD, Equity and a Construction Loan and Permanent Loan.

Two existing households, who currently occupy the Project site, will need to be permanently relocated to facilitate the new construction activities.

Overland, Pacific & Cutler, LLC (“OPC”), an experienced relocation consulting firm, was retained to prepare a Relocation Plan (“Plan”). In compliance with statutory requirements, this Plan has been prepared to evaluate the present circumstances and replacement housing requirements of the displacees. OPC will also provide all required relocation assistance to the households, who will be displaced.

Due to the inclusion of federally derived financing and other non-federal public funds, acquisition and relocation will be conducted under the requirements of the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as amended (URA), HUD Handbook 1378 of the Department of Housing and Urban Development (HUD), California Relocation Assistance Law, Government Code Section 7260, et seq. (Law), the Relocation Assistance and Real Property Acquisition Guidelines adopted by the Department of Housing and Community Development, and Title 25, California Code of Regulations Section 6000, et seq. (Guidelines), collectively known as “Relocation Laws”.

As of the date of this Plan, the Project would cause the permanent displacement of two tenant households that may be eligible for relocation assistance. The needs and characteristics of the permanent displacees and the Developer’s program to provide assistance to each affected person are general subjects of this Plan.

This Plan is organized in five sections:

2 1. Project description (SECTION I);

2. Assessment of the relocation needs of persons subject to permanent displacement (SECTION II);

3. Assessment of available, comparable replacement housing units within the City of Montebello and nearby communities (SECTION III);

4. Description of the Developer’s relocation program (SECTION IV);

5. Description of the Developer’s outreach efforts, Project timeline and budget (SECTION V).

3 I. PROJECT DESCRIPTION
A. REGIONAL LOCATION

The Project site is located in the City of Montebello within Los Angeles County. Montebello is located approximately nine miles southeast of Los Angeles and is easily accessible by Interstate s 5 and 605 and State Routes 19 and 60. Adjacent communities include Pico Rivera, Whittier, Commerce, Monterey Park, South San Gabriel and South El Monte. (Figure 1: Regional Project
Location.)

Figure 1:

Regional Project Location

B. PROJECT SITE LOCATION AND DESCRIPTION

The Project site consists of six parcels (0.8 acres), five of which are vacant and one that is occupied by residential tenants. The occupied parcel on the Project site is located at 128 and 128 ½ S. 6th
Street, Montebello, CA 90640
and is generally bordered by W. Whittier Boulevard, S. 5th Street, W. Los Angeles Avenue and S. 6th Street (Figure 2: Project Site Location.)

4 Figure 2:

Project Site Location

The tenants occupy a single-family residence and a converted structure considered a single-family residence for the purposes of comparable housing.

The Project households live in a densely populated mixed-use neighborhood in proximity to retail stores, public services, restaurants, schools, medical facilities, public transportation, religious facilities and a park.

5 II. ASSESSMENT OF RELOCATION NEEDS

A. SURVEY METHOD

To obtain information necessary for the preparation of this Plan, OPC staff interviewed both households in February 2021 and attempted to interview them again in February 2022 to update the household information. One household was non-responsive after numerous contact attempts, and the other household that was interviewed stated their income and household occupancy had not changed since 2021.

The data in this section of the Plan are based on the responses of those individuals, who provided verbal information about the househ olds, although, at this time, the information is unconfirmed.

Inquiries made of the residential occupants concerned household size and composition, income, monthly rent and estimated utility costs, length of occupancy, ethnicity, home language, physical disabilities, legal presence status, relocation needs, and replacement housing preferences.

B. TENANT DATA

1. Current Occupants

There are two households comprised of four adults and no children (17 years or younger) living on the Project site who will be permanently relocated for the Project and would be eligible for relocation assistance. The occupants rent a one-bedroom single-family residence (SFR) and a two- bedroom SFR with rents ranging from $900 - $1,950 per month.

2. Replacement Housing Needs

Replacement housing needs, as expressed in this plan, are defined by the total number of required replacement units and distribution of those units by bedroo m size. The projected number of required units by bedroom size is calculated by comparing current data for household size with the County’s replacement housing occupancy standards. These standards, generally, allow for up to three persons in a one-bedroom unit, five persons in a two-bedroom unit, seven persons in a three- bedroom unit and nine or more persons in a four-bedroom unit.

When determining the comparable size of the replacement unit under the State relocation programs, the number of all household members is taken into consideration regardless of legal presence status. Under the URA, when determining the size of the replacement unit needed, only the legally present members of the household are considered. based on the occupancy standard above. All households will potentially have a choice of two relocations programs, including the Federal URA or the State program, under which to submit claims for assistance and under which the size of the comparable replacement unit will be determined.

Based on available tenant data, there are no overcrowded units. The replacement units required for the current population will include one one-bedroom SR and one two-bedroom SFR.

6 3. Income

Verbal information regarding gross household income was provided by both households, although the information for one household was incomplete.

According to income standards for Los
Angeles County (Exhibit A) adjusted for family size as published by the United States Department of Housing and Urban Development (HUD), one househ old qualifies as above Low Income (greater than 80% of AMI), and the income of one household is unknown at this time.

4. Ethnicity/Language

The ethnicity of the households is Hispanic. One household speaks, reads and understands English, and the other household prefers Spanish.

5. Senior/Handicapped Households

Neither household reported having a senior head of household or spouse (62 years or older ) or having a member with a disability . If specific special needs are identified when the project occupants are ultimately displaced, appropriate steps will be taken to accommodate those needs and to locate or modify suitable replacement housing to ensure accessibility.

6. Preferred Area to Relocate

Both households would like to remain within the immediate community to remain in proximity to employment and family.

7 III. RELOCATION RESOURCES

A. METHODOLOGY

For residential replacement housing, a resource survey in February 2022 was conducted to identify available one- and two -bedroom SFRs for rent within Montebello and surrounding communities. The following sources were utilized:

-- Classified rental listings from local newspapers and For Rent publications -- Internet sources of rental opportunities
-- the MLS

B. COMPARABLE REPLACEMENT HOUSING AVAILABILITY

1. Replacement Rental Housing

The data from the resource survey is summarized in
Table 1
below. The individual figures for
number of units found by bedroom size are presented in the table alongside the number of units needed (shown in parentheses) to meet the re-housing obligations.

TABLE
1 : Availability and Cost of Replacement Rental Housing

Bedroom Size One Two
# Found (# Needed)
NnnnnEEDEDNeeded)

4 (1) 7 (1)
Rent Range $1,500 - $2,095 $2,250 - $2,600
Median Rent $1,877 $2,350

The comparable available replacement housing identified was within nine miles of the Project site, although most were within five miles . All units were in similar mixed -use neighborhoods with retail, restaurants, public services, parks, medical facilities, public transportation, schools, municipal buildings, and housing. Several units are within three miles of the Project site, which would also keep the tenants in proximity to their employment.

The median rent amount shown in the table is among the figures used to make benefit and budget projections for the Plan. This amount is, naturally, subject to change according to the market rates prevailing at the time of displacement.

2. Summary

Considering the above-described availability of replacement housing resources gathered, it appears that there are more than adequate replacement housing resources for the residential occupants. But, while adequate replacement resources exist, based on survey results of rental opportunities and the tenants’ current rents, the some of the tenant occupants will likely have an increase in monthly rent. Possible increases, if any, will be met through the Developer’s obligation under applicable Relocation Laws, including Last Resort H ousing (LHR) requirements. (See Section IV, E).

8 C. RELATED ISSUES

1. Concurrent Residential Displacement

There are no public projects scheduled in the City of Montebello for the third quarter of 2022 that may cause significant residential displacements, which would compete with the Project for needed housing resources. However, no residential displacee will be required to move without both adequate notice and access to available, affordable, decent, safe and sanitary housing.

9 IV.

THE RELOCATION PROGRAM

The Developer’s Relocation Program is designed to minimize hardship, be responsive to unique project circumstances, emphasize maintaining personal contact with all affected individuals, consistently apply all regulatory criteria to formu late eligibility and benefit determinations and conform to all applicable requirements.

The Developer will retain OPC to administer the Relocation Program. OPC has worked on more than 5,000 public acquisition and relocation projects for over 43 years. Additionally, OPC has an extensive resume of housing, redevelopment and public works projects undertaken in Los Angeles County and other Southern California communities. Experienced Developer staff will monitor the performance of OPC and be responsible to app rove or disapprove OPC recommendations concerning eligibility and benefit determinations and interpretations of the Developer’s policy.

OPC staff will be available to assist any relocated person with questions about the relocation process, relocation coun seling and/or assistance in relocating. An OPC relocation agent can be contacted at (800) 400-7356 from 8:00 am to 5:00 pm Monday through Friday and is available via voicemail and/or cellular phone after hours. The Relocation Office is located at 5000 Airport Plaza Drive, Suite 250, Long Beach, CA 90815.

The Relocation Program consists of two principal constituents: Advisory Assistance and Financial Assistance.

A. ADVISORY ASSISTANCE

Advisory assistance services are intended to:

1. inform displacees about the relocation program;

2. help in the process of finding appropriate replacement accommodations;

3. facilitate claims processing;

4. maintain a communication link with the Developer;

5. coordinate the involvement of outside service providers.

To follow through on the advisory assistance component of the relocation program and assure that the Developer meets its obligations under the Relocation Laws, OPC staff will perform the following functions:

1. Distribute appropriate written information concerning the Developer’s relocation program;

2. Inform the eligible households of the nature of, and procedu res for, obtaining available Relocation Benefits (
Exhibit B
);

10 3. Determine the needs of each displacee eligible for assistance (including through personal interviews with the persons to be displaced);

4. Provide the eligible displacees with at least three referrals to comparable replacement housing within a reasonable time prior to displacement.

Generally, a comparable replacement dwelling must satisfy the following criteria:

The unit is decent, safe and sanitary - electrical, plumbing and heating systems are in good repair - no major, observable hazards or defects . The unit is adequate in size and is comparable to the acquired dwelling with respect to number of rooms, habitable living space and type and quality of construction, but n ot lesser in rooms or living space as necessary to accommodate the displaced person. The unit is functionally equivalent, including principle features.

The unit is located in an area not subjected to unreasonable adverse environmental conditions from either natural, or man -made sources, and not generally less desirable with respect to public utilities, transportation, public and commercial facilities, including schools and municipal services and reasonably accessible to the displaced person’s place of employment.

The unit is available both on the private market and to all persons regardless of race, color, sex, marital status, religion or, national origin.

The monthly rental rate is within the financial means of the displaced residential tenant.

5. Maintain an updated database of available housing resources, and distribute referral information to displacees for the duration of the Project;

6. Provide transportation to the residential displacees, if necessary, to inspect replacement sites within the local area;

7. Inspect replacement housing to assure it meets decent, safe and sanitary standards as described in the Relocation Laws;

8. Supply information concerning federal and state programs and other governmental programs providing assistance to displaced persons;

9. Assist eligible occupants in the preparation and submission of relocation assistance claims;

10. Provide additional reasonable services necessary to successfully relocate occupants;

11 11. Make benefit determinations and payments in accordance with applicable law and the Developer’s adopted relocation guidelines;

12. Assure that no occupant is required to move without a minimum of 90 days written notice to vacate;

13. Inform all persons su bject to displacement of the Developer’s policies with regard to eviction and property management;

14. Establish and maintain a formal grievance procedure for use by displaced persons seeking administrative review of the Developer’s decisions with respect to relocation assistance; and

15. Provide assistance that does not result in different or separate treatment based on or due to an individual’s sex, marital status, race, color, religion, ancestry, national origin, physical handicap, sexual orientation, and domestic partnership status.

B. RELOCATION BENEFITS

As a function of a comprehensive relocation assistance program, relocation staff will provide the displaced tenants with required technical and advisory assistance and distribute all required notices and the informational statement (Exhibit B). Close contact will be maintained with the residents.

The Developer will provide relocation assistance as directed by the Uniform Relocation and Real Property Acquisition Policies Act of 1970, as amended, HUD Handbook 1378, the implementing regulations at 24 Code of Federal Regulations, Part 42, California Relocation Assistance Law, Government Code Section 7260, et seq. (Law), and the Relocation Assistance and Real Property Acquisition Guidelines adopted by the Department of Housing and Community Development as in Title 25, California Code of Regulations Section 6000, et seq. (Guidelines) , collectively the “Relocation Laws”. The Developer will pay benefits to the claimants upon submission of required claim forms and documentation in accordance with the Developer’s approved procedures.

Specific eligibility requirements and benefit plans will be detailed on an individual basis with all displacees. In the course of a personal interview and follow -up visits, each displacee will be counseled as to available options and the consequences of any choice with respect to financial assistance.

The Developer will process advance payment requests to mitigate hardships for tenants who do not have access to sufficient funds to pay move-in costs such as first month’s rent and/or security deposits. Approved requests will be processed expeditiously to help avoid the loss of desirable, appropriate replacement housing.

1. Residential Moving Expense Payments

12 All residential occupants to be permanently relocated will be eligible to receive a payment for moving expenses. Moving expense payments will be made based upon the actual cost of a professional move or a fixed payment based on a room -count schedul e or a combination of both.

a. Actual Cost (Professional Move)

Displacees may elect to have a licensed professional mover perform the move. The actual cost of the moving services, based on at least two acceptable bids, will be compensated by the Developer in the form of a direct payment to the moving company upon presentation o f an invoice. Transportation costs are limited to a distance of 50 miles in either case. In addition to the actual move, costs associated with utility reconnections (i.e., gas, water, electricity, telephone, and cable, if any), are eligible for reimbursement.

b. Fixed Payment (based on Room Count Schedule)

An occupant may elect to receive a fixed payment for moving expenses which is based on the number of rooms occupied in the displacement dwelling. In this case, the person to be relocated takes full resp onsibility for the move. The fixed payment includes all utility connections as described in Paragraph B.1.a., above.

The current schedule for fixed moving payments is set forth in Table 2
following:

TABLE 2: Schedule of Fixed Moving Payments
Unfurnished Dwelling

Room
count

1 2 3 4 5 6 7 8 Each
additional

Amount

$7
80 $
1,00
0 $1,
250

$1,
4 75

$1,
790

$
2,06
5 $2,
380

$2,
690

$2
8 5

Furnished Dwelling

Room
count

1 each additional
Amount

$
510

$
10 0

2. Rental Assistance to Tenants Who Choose to Rent

To be eligible to receive rental assistance benefits, a displaced tenant household must rent or purchase and occupy decent, safe, and sanitary comparable replacement dwelling within one year from the date they move from the displacement dwelling.

Based upon the available data regarding Project displacees, the displaced households may qualify for, and may be eligible to apply for, relocation benefits under URA and/or State provisions. Except in the case of Last Resort Housing situations, the potential payment to the household will be payable over a 42-month period and limited to a maximum of $7,200 as stated under URA guidelines. The relocation program is explained in detail in the informational brochure to be provided to each permanently displaced household ( Exhibit
B
).

13 Rental Assistance payment amounts are equal to 42 times the difference between the base monthly rent and the lesser of:

(i) The monthly rent and estimated average monthly cost of utilities for a comparable replacement dwelling; or

(ii) The monthly rent and estimated average monthly cost of utilities for the decent, safe, and sanitary replacement dwelling actually occupied by the displaced person.

The base monthly rent for the displacement dwelling is the lesser of:

(i) The average monthly cost for rent and utilities at the displacement dwelling for a reasonable period prior to displacement, as determined by the Developer.

For households, who paid little or no rent, fair market rent will be used as a substitute for actual rent; or

(ii) Thirty percent (30%) of the displaced person’s average, monthly gross household income,
if the amount is classified as “low income” by the U. S.

Department of Housing and Urban Development’s (HUD) Annual Survey of Income Limits for the Public Housing and Section 8 Programs (under the URA)
or adjusted gross monthly income under the State Guidelines .
(HUD’s
Survey is shown as
Exhibit A
.) If a displaced household e arns more than the
amount that would qualify them as a “low income” household, refuses to provide appropriate evidence of income, or is a dependent, the base monthly rent shall be determined to be the average monthly cost for rent and utilities at the displacement dwelling; or

(iii) The total of the amount designated for shelter and utilities if receiving a welfare assistance payment from a program that designates the amounts for shelter and utilities.

Table 3
on the following page portrays the benefits determination under the Relocation Laws:

14 TABLE 3: Example Computation of URA/Title 25 Rental Assistance Payments

1. Old Rent $650 Old Rent and Utilities
or

2. Ability to Pay $700 30% of the Gross Household Income (for Low Income Households-URA) or Adjusted Gross Income* (for Title 25)

3. Lesser of lines 1 or 2

$650 Base Monthly Rental
Subtracted From:

4. Actual New Rent $750 Actual New Rent and Utilities
or

5. Comparable Rent $775 Determined by Developer (includes utilities)

6. Lesser of lines 4 or 5 $750

7. Yields Monthly
Need:
$100 Subtract line 3 from line 6
Rental Assistance $4,200 Multiply line 7 by 42 months
*Gross adjusted income means the total amount of annual income of a household less the following: (1) a deduction for each dependent in excess of three; (2) a deduction of 10% of total income for the elderly or disabled head of household; (3) a deduction f or recurring extraordinary medical expenses defined for this purpose to mean medical expenses in excess of 3% of total income, where not compensated for, or covered by insurance or other sources; (4) a deduction of reasonable amounts paid for the care of c hildren or sick or incapacitate family members when determined to be necessary to employment of head of household or spouse, except that the amount shall not exceed the amount of income received by the person who would not otherwise be able to seek employm ent in the absence of such care.

3. Downpayment Assistance to Tenants Who Choose to Purchase

A displaced household may opt to apply the entire benefit amount for which they are eligible toward the purchase of a replacement unit (URA, at 49 CFR 24.402(b) and HUD Handbook 1378).

If a displaced household chooses to utilize up to the full amount of rental assistance eligibility (including any Last Resort benefits) to purchase a home, it may have the funds deposited in an open escrow account, provided that the entire amount is used for the downpayment and eligible, incidental costs associated with the purchase of a decent, safe, and sanitary replacement home. A provision shall be made in the escrow arrangements for the prompt return of the Developer funds, in the event escrow should fail to close within a reasonable period of time.

Final determination about the type of relocation benefits and assistance for which the households are eligible will be determined upon verification of the households’ occupants and incomes.

15 C. PROGRAM ASSURANCES AND STANDARDS

Adequate funds are available to permanently relocate the eligible Project households. Tax credit proceeds will be used to pay relocation benefits. Relocation assistance services will be provided to ensure that displacement does not result in different or separate treatment of households based on race, nationality, color, religion, national origin, sex, marital status, familial status, disability or any other basis protected by the federal Fair Housing Amendments Act, the Americans with Disabilities Act, Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, the California Fair Employment & Housing Act, and the Unruh Act, as well as any other arbitrary or unlawful discrimination.

D. GENERAL INFORMATION REGARDING THE PAYMENT OF

RELOCATION BENEFITS

Claims and supporting documentation for relocation benefits must be filed with the Developer no later than 18 months after the date of displacement.

The procedure for the preparation and filing of claims and the processing and delivery of payments will be as follows:

1. Claimant(s) will provide all necessary documentation to substantiate eligibility for assistance;

2. Developer staff will review all necessary doc umentation including, but not limited to, rental agreements or lease documents, moving bids, invoices and escrow material before reaching a determination as to which expenses are eligible for compensation;

3. Required claim forms will be prepared by OPC staff and presented to the claimants for review. Signed claims and supporting documentation will be returned to relocation staff and submitted to the Developer;

4. The Developer will review and approve claims for payment, or request additional information;

5. The Developer will issue benefit checks to claimants in the most secure, expeditious manner possible, wherein the Developer will issue checks to OPC staff to personally deliver the checks to the households and secure Receipts of Payment;

6. Final payments to residential displacees will be issued after confirmation that the Project premises have been completely vacated, and actual residency at the replacement unit is verified;

7. Receipts of payment and all claim material will be maintained in the relocation case file.

16 E. LAST RESORT HOUSING

Based on data derived from the surveys and analyses of the occupants in the Project area and costs of replacement housing resources, it is anticipated that “comparable replacement housing” will not be available, because the computed replacement housing assistance eligibility exceeds $7,200 and the estimated replacement dwelling monthly rental costs (including utilities) exceed 30% of the households’ average gross monthly income.

Therefore, if the Project proceeds, the Developer will authorize sufficient funds to provide housing of last resort to eligible displaced households. Due to the demonstrated number of available replacement housing resources for the displaced households, as shown above in Section III, B - 1, the need to develop a replacement housing plan to produce sufficient number of comparable replacement dwellings will not be necessary. Rather, funds will be used to make payments in excess of the monetary limits specified in the statute ($7,200); hence, satisfying the requirement that “comparable replacement housing” is available.

The Developer, at its discretion, may opt to pay Last Resort Housing payments in installments or in a lump sum. Recipients of Last Resort rental assistance, who intend to purchase rather than rent replacement housing, will have the right to request a lump sum payment of all benefits in the form of downpayment assistance, as described above, to assist with the purchase of a decent, safe and sanitary dwelling.

F. IMMIGRATION STATUS

Federal legislation (PL105-117) prohibits the payment of relocation assistance benefits under the Uniform Act to any alien not lawfully present in the United States unless such ineligibility would result in an exceptional and extremely unusual hardship to the alien’s spouse, parent, or child any of whom is a citizen or an alien admitted for permanent residence. Exceptional and extremely unusual hardship is defined as significant and demonstrable adverse impact on the health or safety, continued existence of the family unit, and any other impact determined by the Developer to negatively affect the alien’s spouse, parent or child. However, the Developer will authorize the payment of relocation assistance benefits to any otherwise eligible residential displacees from non-federally authorized reimbursable funds.

In order to track and account for relocation assistance and benefit payments, Developer staff will be required to seek immigration status information from each displacee aged 18 years or older by having them certify as to their legal status.

G. RELOCATION TAX CONSEQUENCES

In general, relocation payments are not considered income for the purpose of Division 2 of the Internal Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of 1986 (Title 26, U. S. Code), or for the purpose of determining the eligibility or the extent of eligibility of any person for assistance under the Social Security Act (42 U. S. Code 301 et seq.) or the Personal Income Tax Law, Part 10 (commencing with Section 17001) of the Revenue and

17 Taxation Code, or the Bank and Corporation Tax Law, Part II (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. The above statement on tax consequences is not intended as tax advice by the Developer. Tenants are responsible for consulting with their own tax advisors concerning the tax consequences of relocation payments.

18 V. ADMINISTRATIVE PROVISIONS

A. NOTICES

Each notice, which the Developer is required to provide to a Project site occupant, shall be personally delivered or sent by certified or registered first-class mail, return receipt requested and documented in the case file. Each notice will be written in plain, understandable language.

Persons who are unable to read and understand any notice will be provided with appropriate translation and counseling. Each notice will indicate the name and telephone number of a person who may be contacted for answers to questions or other needed help. There are four principal notices:

1) General Information Notice
2) Informational Statement
3) Notice of Eligibility
4) Ninety-Day Notice to Vacate

The General Information Notice (GIN) is intended to provide potential relocatees with a general written description of the Developer’s relocation program and basic information concerning benefits, conditions of eligibility, noticing requirements and appeal rights ( Exhibit C
). The GIN
is issued as early as is feasible in the initial stages of a Project, preferably, the planning stage.

GINs were mailed certified and regular mail to both households in February 2021.

The Informational Statement is intended to provide potential relocatees with a general written description of the Developer’s relocation program and basic information concerning benefits, conditions of eligibility, noticing requirements and appeal rights (Exhibit B).

A Notice of Relocation Eligibility (NOE) will be distributed to each eligible permanent displace (
Exhibit D
). The NOE to the residential relocatee contains a determination of eligibility for relocation assistance and a computation of a maximum entitlement based on information provided by the affected household and the analysis of comparable replacement properties undertaken by OPC staff. The NOEs will be issued to any eligible permanent displacee, once the entire Project site has been secured by the Developer and the Project funding is in place.

No lawful occupant will be required to permanently move without having received at least 90 days advance written notice of the earliest date by which the move will be necessary ( Exhibit E
).

The 90-day notice will either state a specific date as the earliest date by which the occupant may be required to move or state that the occupant will receive a further notice indicating, at least 60 days in advance, the specific date of the required move. The 90-day notice will not be issued to any residential displacee before a comparable replacement dwelling has been made available.

In addition to the four principal notices, OPC will issue a timely written notification in the form of a Reminder Notice, which discusses the possible loss of rights and sets the expiration date for the loss of benefits to those persons who:

19 1) are eligible for monetary benefits,
2) have moved from the acquired property, and
3) have not filed a claim for benefits.

Reminder Notices will be issued periodically throughout the qualification period, as appropriate.

An attempt shall be made to make written contact with all non-responsive relocatees no later than within the last six months prior to the filing expiration date.

B. PRIVACY OF RECORDS

All information obtained from the tenants is considered confidential and will not be shared without the consent of the tenants or the Developer. Developer staff will comply with federal regulations concerning the safeguarding of relocation files and their contents.

C. GRIEVANCE PROCEDURES

The Developer' Relocation Appeals process will be consistent with the Provisions of Article 5 of the State relocation guidelines (Appendix A) and 6150-6176. The right to appeal shall be described in all relocation explanatory material distributed to displacees.

As required under the State relocation guidelines, displacees will have the right to ask for administrative review when they believe themselves aggrieved by a determination as to eligibility, payment amounts, and the failure to provide comparable replacement housing referrals or the Developer' property management practices.

Requests for administrative review and informal hearings will be directed to the Developer’s Director of Business Development. All requests for review will receive written responses from the Developer within three weeks of their receipt. If an in formal appeal is denied, appellants will be entitled to file a written request for a formal hearing before an impartial and independent hearing officer.

The appellant does not have to exhaust administrative remedies first; the appeal/grievance can either go directly to the city, directly to HCD or directly to the Court. Any person and/or organization directly affected by the relocation plan may petition the Department of Housing and Community Development (HCD), located at 2020 West El Camino Ave., Sacramento, CA 95833 to review the relocation plan
.

More detail concerning the appeals process will be provided upon request. Appellants will retain their appeal rights for up to 18 months following the date of displacement from the Project premises or receipt of final payment for relocation benefits, whichever is later.

D. EVICTION POLICY

1. Eviction may cause the forfeiture of a displacee’s right to relocation assistance or benefits. Relocation records will be documented to reflect the specific circumstances surrounding any eviction action.

20 2. Eviction may be undertaken for one or more of the following reasons:

(a) Failure to pay rent, except in those cases where the failure to pay is due to the owner’s failure to keep the premises in habitable condition, is the result of harassment or retaliatory action, or is the result of discontinuation or a substantial interruption of services;
(b) Performance of a dangerous and/or illegal act in the unit; (c) A material breach of the rental agreement and failure upon notification to correct said breach within 30 days of Notice;
(d) Maintenance of a nuisance and failure to abate such nuisance upon notification within a reasonable time following Notice; (e) Refusal to accept one of a reasonable number of offers of replacement dwellings; and/or,
(f) A requirement under State or local law or emergency circumstances that cannot be prevented by reasonable efforts on the part of the Developer.

E. CITIZEN/RESIDENT PARTICIPATION

As the process for considering the Project moves forward, the Developer will observe the following protocol:

1. Provide affected tenants with full and timely access to documents relevant to the relocation program in both English and Spanish, as needed;

2. Encourage meaningful participation in reviewing the relocation plan and monitoring the relocation assistance program; including the Project area occupants, neighborhoo d groups and community organizations forming a relocation committee (due to only two displacements, a relocation committee was not formed);

3. Provide technical assistance necessary to interpret elements of the relocation program;

4. Issue a general notice concerning the availability of the Plan for public review, as required, 30 days prior to its proposed approval (both households will receive a copy of the Relocation Plan and an Advisory Notice (Exhibit E)); and

5. Include written or oral comments concerning the Plan as an attachment (Exhibit F) when it is forwarded to the City of Montebello for approval.

F. PROJECTED DATE OF DISPLACEMENT

The Developer anticipates that date specific Notices to Vacate will not be issued prior to August
2022
.

21 G. ESTIMATED RELOCATION COSTS

The total budget estimate for permanent relocation-related payments for this Project is $120,000.

The estimated relocation budget
does not
include any payments related to property acquisition.

The estimated cost does include the cost of services necessary to implement the Plan and complete the relocation element of the Project.

If the Project is implemented, and circumstances arise that should change either the number of Project occupants, or the nature of their activity, the Developer will authorize any additional funds that may need to be appropriated. The Developer pledges to appropriate, on a timely basis, the funds necessary to ensure the successful completion of the Project, including funds necessary for LRH as indicated in Section IV, E, of this Plan to meet its obligation under applicable Relocation Laws.

EXHIBIT A
HUD INCOME LIMITS – LOS ANGELES COUNTY

The following figures are approved by the U. S. Department of Housing and Urban Development (HUD) for use in the County of Los Angeles to define and determine housing eligibility by income level.

Figures are per the Department of Housing and Urban Development, updated in April 2021.

Area Median Income: $80,000

Family Size
Extremely Low Very Low Lower
1 Person
18,950 31,550 50,500
2 Person
21,650 36,050 57,700
3 Person
24,350 40,550 64,900
4 Person

27,050
45,050
72,100
5 Person
29,250 48,700 77,900
6 Person
32,960 52,300 83,650
7 Person
37,140 55,900 89,450
8 Person
41,320 59,500 95,200

EXHIBIT B

INFORMATIONAL BROCHURE

Relocation Assistance
Informational Statement
for Families and Individuals
(Federal)

Developer:

Vista Del Monte Affordable Housing, Inc.

Project Name:
6th Street Grand Project

Developer Representative:

Overland, Pacific & Cutler, LLC
5000 Airport Drive, Suite 250
Long Beach, CA 90815
Phone: (800) 400-7356

Informational Statement Content:

1. General Information

2. Assistance In Locating A Replacement Dwelling

3. Moving Benefits

4. Replacement Housing Payment - Tenants And Certain Others

5. Section 8 Tenants

6. Replacement Housing Payment – Homeowners

7. Qualification For And Filing Of Relocation Claims

8. Last Resort Housing Assistance

9. Rental Agreement

10. Evictions

11. Appeal Procedures – Grievance

12. Tax Status of Relocation Benefits

13. Legal Presence Requirement

14. Non-Discrimination and Fair Housing

15. Additional Information And Assistance Available

Spanish speaking representatives are available. Si necesita esta información en español, por favor llame a su representante.

Informational Statement for Families and Individuals
(Federal)

1. GENERAL INFORMATION
The dwelling in which you now live is in a project area to be improved by, or financed through, the Developer using federal and state funds. If and when the project proceeds, and it is necessary for you to move from your dwelling, you may be eligible for c ertain benefits. You will be notified in a timely manner as to the date by which you must move. Please read this information, as it will be helpful to you in determining your eligibility and the amount of the relocation benefits you may receive under the federal law. You will need to provide adequate and timely information to determine your relocation benefits. The information is voluntary, but if you don’t provide it, you may not receive the benefits or it may take longer to pay you. We suggest you save this informational statement for reference.

The Developer has retained the professional firm of Overland, Pacific & Cutler, LLC (OPC) to provide relocation assistance to you. The firm is available to explain the program and benefits. Their address and telephone number is listed on the cover.

PLEASE DO NOT MOVE PREMATURELY. THIS IS NOT A NOTICE TO VACATE YOUR DWELLING. However, if you desire to move sooner than required, you must contact your representative with OPC, so you wil l not jeopardize any benefits. This is a general informational brochure only and is not intended to give a detailed description of either the law or regulations pertaining to the Developer’s relocation assistance program.

Please continue to pay your rent to your current landlord, otherwise you may be evicted and jeopardize the relocation benefits to which you may be entitled to receive. Once the Developer acquires the property, you will also be required to pay rent to the Developer.

2. ASSISTANCE IN LOCATING A REPLACEMENT DWELLING
The Developer, through its representatives, will assist you in locating a comparable replacement dwelling by providing referrals to appropriate and available housing units. You are encouraged to actively seek such housing yourself. When a suitable replacement dwelling unit has been found, your relocation agent will carry out an inspection and advise you as to whether the dwelling unit meets decent, safe and sanitary h ousing requirements. A decent, safe and sanitary housing u nit provides adequate space for its occupants, proper weatherproofing and sound heating, electrical and plumbing systems. Your new dwelling must pass inspection before relocation assistance payments can be authorized.

3. MOVING BENEFITS
If you must move as a result of displacement by the Developer, you will receive a payment to assist in moving your personal property. The actual, reasonable and necessary expenses for moving your household belongings may be determined based on the following methods:

· A Fixed Moving Payment based on the number of rooms you occupy (see below); or · A payment for your Actual Reasonable Moving and Related Expenses based on at least two written estimates and receipted bills; or
· A combination of both (in some cases).

For example, you may choose a Self-Move, receiving a payment based on the Fixed Residential Moving Cost Schedule shown below, plus contract with a prof essional mover to transport your grand piano and /or other items t hat require special handling. In this case, there may be an adjustment in the number of rooms which qualify under the Fixed Residential Moving Cost Schedule.

A. Fixed Moving Payment (Self-Move)
A Fixed Moving Payment is based upon the number of
rooms you occupy and whether or n ot you own your
own furniture. The payment is based upon a schedule
approved by the Developer, and ranges, for example,
from $475.00 for one furnished room to $2,505.00 for
eight rooms in an unfurnished dwelling. (For details
see the table). Your relocation agent will inform you of the amount you are eligible to receive, if you choose
this type of payment.

If you select a fixed payment, you will be responsible
for arranging for your own move, and the Developer
will assume no liability for any loss or damage of your personal property. A fixed payment also includes utility hook-ups and other related moving fees.

B. Actual Moving Expense (Commercial Move)
If you wish to engage the services of a licensed
commercial mover and have the Developer pay the bill,
you may claim the ACTUAL cost of moving your
personal property up to 50 miles. Your relocation agent will inform you of the number of competitive moving
bids (if any) which may be required and assist you in
developing a “mover” scope of services for Developer
approval.

4. REPLACEMENT HOUSING PAYMENT – TENANTS AND CERTAIN OTHERS You may be eligible for a payment up to $7,200.00 to assist in renting or purchasing a comparable replacement dwelling. In order to qualify, you must either be a tenant or owner who has occupied the present dwelling for at least 90 days immediately prior to the initiation of negotiations.

A. Rental Assistance. If you wish to rent your replacement dwelling, your maximum rental assistance benefits will be based upon the difference over a forty-two (42) month period between the rent you must pay for a comparable replacement dwelling and the lesser of your current rent Fixed Moving Schedule
CALIFORNIA (Effective 2021)
Occupant Owns Furniture:
1 room $780
2 rooms $1,000
3 rooms $1,250
4 rooms $1,475
5 rooms $1,790
6 rooms $2,065
7 rooms $2,380
8 rooms $2,690
Each additional room $285
Occupant does NOT Own
Furniture:
1 room $510
Each additional room $100

or thirty percent (30%) of your monthly household income if your total gross income is classified as “low income” by the U. S. Department of Housing and Urban Development’s (HUD) Annual Survey of Income Limits for Public Housing and Section 8 Programs. You will be required to provide your relocation agent with monthly rent and household income verification prior to the determination of your eligibility for this payment.

- OR –
B. Down-payment Assistance. If you qualify, and wish to purchase a home as a replacement dwelling, you can apply up to the total amount of your rental assistance payment towards the down-payment and non -recurring incidental expenses. Your relocation agent will clarify procedures necessary to apply for this payment.

5. SECTION 8 TENANTS
When you do move, you may be eligible to transfer your Section 8 eligibility to a replacement site. In such cases, a comparable replacement dwelling will be determined based on your family composition at the time of displacement and the current housing program criteria. This may not be the size of the unit you currently occupy. Your relocation agent will provide counseling and other advisory services along with moving benefits.

6. REPLACEMENT HOUSING PAYMENT - HOMEOWNERS
A. If you own and occupy a dwelling to be purchased by the Developer for at least 90 days prior to the initiation of negotiation, you may be eligible to receive a payment of up to $31,000.00 to assist you in purchasing a comparable replacement unit. This payment is intended to cover the following items:

1. Purchase Price Differential - An amount which, when added to the amount for which the Developer purchased your property, equals the lesser of the actual cost of your replacement dwelling; or the amount determined by the Developer as necessary to purchase a comparable replacement dwelling. Your relocation agent will explain both methods to you.

2. Mortgage Interest Differential - The amount which covers the increased interest costs, if any, required to finance a replacement dwelling. Your relocation agent will explain limiting conditions.

3. Incidental Expenses - Those one time incidental costs related to purchasing a replacement unit, such as escrow fees, recording fees, and credit report fees. Recurring expenses such as prepaid taxes and insurance premiums are not compensable.

B. Rental Assistance Option - If you are an owner -occupant and choose to rent rather than purchase a replacement dwelling, you may be eligible for a rental assistance payment of up to the amount that you could have received under the Purchase Price Differential, explained above. The payment will be based on the difference between the fair market rent of the dwelling you occupy and the rent you must pay for a comparable replacement dwelling.

If you receive a rental assistance payment, as described above, and later decide to purchase a replacement dwelling, you may apply for a payment equal to the amount you would have received

if you had initially purchased a comparable replacement dwelling, l ess the amount you have already received as a rental assistance payment.

7. QUALIFICATION FOR, AND FILING OF, RELOCATION CLAIMS
To qualify for a Replacement Housing Payment, you must rent or purchase and occupy a comparable replacement unit within one year from the following:
· For a tenant, the date you move from the displacement dwelling. · For an owner-occupant, the latter of:
a. The date you receive final payment for the displacement dwelling, or, in the case of condemnation, the date the full amount of estimated just compensation is deposited in court; or
b. The date the Developer fulfills its obligation to make available comparable replacement dwellings.

All claims for relocation benefits must be filed with the Developer within eighteen (18) months from the date on which you receive final payment for your property, or the date, on which you move, whichever is later.

8. LAST RESORT HOUSING ASSISTANCE
If comparable replacement dwellings are not available when you are required to move, or if replacement housing is not available within the monetary limits described above, the Developer will provide Last Resort Housing assistance to enable you to rent or purchase a replacement dwelling on a timely basis. Last Resort Housing assistance is based on the individual circumstances of the displaced person. Your relocation agent will explain the process for determining whether or not you qualify for Last Resort assistance.

If you are a tenant, and you choose to purchase rather than rent a comparable replacement dwelling, the entire amount of your rental assistance and Last Resort eligibility must be applied toward the down-payment and eligible incidental expenses of the home you intend to purchase.

9. RENTAL AGREEMENT
As a result of the Developer's action to purcha se the property where you live, you may become a tenant of the Developer. If this occurs, you will be asked to sign a rental agreement which will specify the monthly rent to be paid, when rent payments are due, where they are to be paid and other pertinent information.

10. EVICTIONS
Eviction for cause must conform to applicable State and local law. Any person who occupies the real property and is not in unlawful occupancy on the date of initiation of negotiations, is presumed to be entitled to relocation benefits, unless the Developer determines that:
· The person received an eviction notice prior to the initiation of negotiations and, as a result, was later evicted; or
· The person is evicted after the initiation of negotiations for serious or repeated violati on of

material terms of the lease; and
· The eviction was not undertaken for the purpose of evading relocation assistance regulations.

Except for the causes of eviction set forth above, no person lawfully occupying property to be purchased by the Developer will be required to move without having been provided with at least 90 days written notice from the Developer.

11. APPEAL PROCEDURES - GRIEVANCE
Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by the Developer’s Relocation Assistance Program may have the appeal application reviewed by the Developer in accordance wi th its appeals procedure. Complete details on appeal procedures are available upon request from the Developer.

12. TAX STATUS OF RELOCATION BENEFITS
California Government Code Section 7269 indicates no relocation payment received shall be considered as income for the purposes of the Personal Income Tax Law, Part 10 (commencing with Section 170 01) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax law, Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxa tion Code.

Furthermore, federal regulations (49 CFR Part 24, Section 24.209) also indicate that no payment received under this part (Part 24) shall be considered as income for the purpose of the Internal Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of 1986. The preceding statement is not tendered as legal advice in regard to tax consequences, and displacees should consult with their own tax advisor or legal counsel to determine the current status of such payments.
(IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting marketing or recommending to another party any matters addressed herein)

13. LAWFUL PRESENCE REQUIREMENT
In order to be eligible to receive relocation benefits in federally -funded relocation projects, all members of the household to be displaced must provide information regarding their lawful presence in the United States. Any member of the household who is n ot lawfully present in the United States or declines to provide this information may be denied relocation benefits, unless such ineligibility would result in an exceptional and extremely unusual hardship to the alien’s spouse, parent, or child, any of whom is a citizen or an alien admitted for permanent residence. Exceptional and extremely unusual hardship is defined as significant and demonstrable adverse impact on the health or safety, continued existence of the family unit, and any other impact determine d by the Developer to negatively affect the alien’s spouse, parent or child. Relocation benefits will be prorated to reflect the number of household members with certified lawful presence in the US. However, all displaced tenants will be eligible for relocation assistance under the State Relocation program regardless of legal presence status.

14. NON-DISCRIMINATION AND FAIR HOUSING
No person shall on the grounds of race, color, national origin or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under the Developer’s relocation assistance program pursuant to Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968, and other applicable state and federal anti-discrimination and fair housing laws. You may file a complaint if you believe you have been subjected to discrimination. For details contact the Developer.

15. ADDITIONAL INFORMATION AND ASSISTANCE AVAILABLE
Those responsible for providing you with relocation assistance hope to assist you in every way possible to minimize the hardships involved in relocating to a new home. Your cooperation will be helpful and greatly appreciated. If you have any questions at any time during the process, please do not hesitate to contact your relocation agent at OPC.

EXHIBIT C

GENERAL INFORMATION NOTICE

General Information Notice
Residential Occupant to Be Displaced

<<DATE>>

<<Name>> and All Other Occupants
_____ S. 6th Street
Montebello, CA 90640

Dear Occupant(s):

Vista Del Monte Affordable Housing, Inc. (“Developer”) is interested in acquiring the property you currently occupy at _____ S. 6th Street, Montebello, CA 90640, for the development of an affordable housing property (Project). The Developer may receive Project Based Vouchers (PBV) from the US Department of Housing and Urban Development (HUD) as well as other non -federal funding. This notice is to inform you of your rights under federal and/or state law.

If the Developer acquires the property and you are displaced for the Project, you will be eligible for relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended and California Relocation Assistance Law (Sec 7260 et. seq. of the CA Government Code.

However, you do not have to move now.

This is not a notice to vacate the premises or a notice of relocation eligibility.

The Developer has retained the professional firm of Overland, Pacific & Cutler, LLC (OPC) to represent the Developer and assist you in the relocation process . We are in the process of preparing a Relocation Plan to address the impacts relocation would have on current site occupants and to present the relocation assistance to be offered to eligible tenants.

If you rent your unit, you should continue to pay your monthly rent to your la ndlord because failure to pay rent and meet your obligations as a tenant may be cause for eviction and loss of relocation assistance. You are urged not to move or sign any agreement to purchase or lease a unit before receiving formal notice of eligibility for relocation assistance. If you move or are evicted before receiving such notice, you will not be eligible to receive relocation assistance. Please contact us before you make any moving plans.

If the Developer acquires the property and you are eligible for relocation assistance, you will be given advisory services, including referrals to replacement housing, and at least 90 days advance written notice of the date you will be required to move. You would also receive a payment for moving expenses and may be eligible for financial assistance to help you rent or buy a replacement dwelling. Any person aggrieved by a determination as to eligibility for, or the amount of, a payment authorized by the Developer’s Relocation Assistance Program may have the appeal application reviewed by the Developer in accordance with its appeals procedure.

Complete details on appeal procedures are available upon request from the Developer.

Again, this is not a notice to vacate and does not establish eligibility for relocation payments or other relocation assistance. If the Developer decides not to purchase the property, you will be notified in writing.

If you have any questions about this or any other relocation issues, please contact Ada Fernandez (OPC) at <<AGENT PHONE NUMBE R>>. Your relocation agent will assist you with scheduling an appointment for a relocation interview.

Sincerely,

Dr. Michele Folk, SR/WA, R/W-RAC, R/W-URAC
Senior Vice President
Overland, Pacific & Cutler, LLC

____________________________ Delivered on/by: ____________/_____________ Received by

X___________________________ Posted on/by: ____________/_______________ Recipient’s Signature

____________________________ Mailed/receipt received on: _________/________ Date

EXHIBIT D

NOTICE OF ELIGIBIITY

Notice of Eligibility and Conditional Entitlement
Tenant-Occupant (Federal)
<<DATE>>
<<NAME>>
____ S. 6th Street
Montebello, CA 90640

Dear <name>>
Vista Del Monte Affordable Housing, Inc. (called here the “Developer”) is proceeding with the project known as 6th Street Grand Project. To carry out this project, it will be necessary for you to relocate from your dwelling at _____ S. 6th Street, Montebello, CA 90640.

You will not be required to move without at least 90 days advance written notice of the day by which you must vacate. However, yo u can contact us at any time for assistance with your move and to receive the benefits for which you are eligible.

This is a notice of eligibility for relocation assistance. You are eligible for relocation assistance and benefits under the Developer’s Relocation Assistance Program.

When you do move, and depending on your eligibility for specific programs, you may choose assistance under either the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), or the California Code of State Regulations Title 25, Division 1, Chapter 6 (Title 25).

Due to the federal funding of this project, under the URA, persons not lawfully present in the United States are not eligible for relocation payments or advisory assistance, unless such ineligibility would result in an exceptional and extremely unusual hardship to the alien’s spouse, parent, or child any of whom is a citizen or an alien admitted for permanent residence. Exceptional and extremely unusual hardship is defined as significant and demonstrable adverse impact on the health or safety, continued existence of the family unit, and any other impact determined by the Developer to negatively affect the alien’s spouse, parent or child. Under Title 25, this requirement does not apply.

Therefore, the entitlements stated below under the URA will reflect the number of legally present persons that have been identified in the Certification of Lawful Presence in the U.S. form provided by you, and/or persons for whom a hardship exemption has been approved. Under the URA, there are <<#>> household members out of the total of <<#>> who are entitled to assistance and benefits.

This eligible household members are <<NAME>>.

Additional information about your benefits was previously provided to you in the Informational Statement. You are eligible to receive the following benefits:

RELOCATION ADVISORY ASSISTANCE provided by Overland, Pacific & Cutler, LLC (OPC), a professional firm hired by the Developer to provide relocation assistance to you, such as referrals to replacement housing and help with filing for benefits.

Your OPC Relocation Agent
Name: <<AGENT NAME>>
Phone: (800) 400-7356
Your Case ID:

<<CASE ID>>

MOVING EXPENSES: You will receive a payment to assist in moving your personal property.

You may select one of the following payments:

Under the URA

A. A Fixed Moving Payment based on the number of rooms you occupy (from Informational Statement). Your entitlement under this option for <<#>> rooms is $______ (#/#) or B. A payment for your Actual Reasonable Moving and Related Expenses based on at least two written estimates and receipted bills; or
C. A combination of both (in some cases).

Under Title 25

A. A Fixed Moving Payment based on the numb er of rooms you occupy (from Informational Statement). Your entitlement under this option for <<#>> rooms is $______ or B. A payment for your Actual Reasonable Moving and Related Expenses based on at least two written estimates and receipted bills; or
C. A combination of both (in some cases).

REPLACEMENT HOUSING ASSISTANCE: You are eligible for a replacement housing payment to rent or purchase a replacement home. The payment will be based on several factors, including the cost of a "comparable replacement dwelling" and your average household income.

You are entitled to choose a replacement housing payment under the URA or Title 25. These two options are explained below.

Replacement Housing Assistance Under the URA

If you choose assistance und er the URA and rent replacement housing, you may file a claim for a RENTAL ASSISTANCE payment, equal to the difference between the monthly rent and utilities necessary to rent a comparable replacement dwelling (as determined by the Developer) and the base monthly rent, multiplied by 42 months (see table below).

A study was completed to determine the cost of a comparable replacement dwelling for eligible occupants most nearly representative of your current dwelling. The study indicated that the dwelling located at << ADDRESS>> with a monthly rent and estimated utilities of $_______ (rent of $________ and utilities of $____) was the most representative of your current dwelling.

Base monthly rent is defined as the lesser of:

(1) $_____, which represents the average monthly rent ($400) and average monthly utilities ($0) at your displacement dwelling (if you are paying little or no rent, the amount is based on the economic rental value of your dwelling); or
(2) $______, which represents thirty (30) percent of your gross monthly household income if your household income is classified as “low income” by the U. S. Department of Housing and Urban Development’s Annual Survey of Income Limits for the Public Housing and Section 8 Programs. (If “N/A”, income was not used in the calculation because you have been determined to not be “low income” and/or are a dependent, or the income information provided was insufficient evidence of income.)

Based on the above, your base monthly rent amount is $_______, and your maximum rental assistance payment is calculated as follows:

Maximum URA Rental Assistance Payment Calculation
1 Comparable Dwelling Cost

2 Base Monthly Rent
3 Monthly Difference (Line 1 minus Line 2)
4 Maximum payment (difference times 42 months)

Your actual payment depends on the cost of the replacement dwelling you decide to rent.

If you rent and occupy a replacement dwelling that rents for less than the comparable dwelling, your rental assistance payment will be based on the actual cost of your replacement dwelling. If you rent and occupy a replacement dwelling that rents for more than the comparable dwelling, your rental assistance payment will be limited by the cost of the comparable dwelling.

Please find attached a listing of available comp arable replacement dwellings that you may want to consider renting that reflect replacement housing needs under the URA. If you need any assistance or transportation to inspect these referrals, please contact the relocation agent identified below.

Replacement Housing Assistance Under Title 25

If you choose assistance under the State Regulations and rent replacement housing, you may file a claim for a RENTAL ASSISTANCE payment, equal to the difference between the monthly rent and utilities necessary to rent a comparable replacement dwelling (as determined by the Developer) and the base monthly rent, multiplied by 42 months.

A study was completed to determine the cost of a comparable replacement dwelling for eligible occupants most nearly representative of your current dwelling. The study indicated that the dwelling located at << ADDRESS>> with a monthly rent and estimated utilities of $________ (rent of $________ and utilities of $_____) was the most representative of your current dwelling.

Base monthly rent is defined as the lesser of:

(1) $______, which represents the average monthly rent ($_____) and average monthly utilities ($0) at your displacement dwelling (if you are paying little or no rent, the amount is based on the economic rental value of your dwelling); or
(2) $______, which represents thirty (30) percent of your adjusted gross monthly household income. (If “N/A”, income was not used in the calculation because you have been determined to not be “low income” and/or are a dependent, or the income information provided was insufficient evidence of income.)

Based on the above, your base monthly rent amount is $_______ and your maximum rental assistance payment is calculated on the following page:

Maximum Title 25 Rental Assistance Payment Calculation
1 Comparable Dwelling Cost
2 Base Monthly Rent
3 Monthly Difference (Line 1 minus Line 2)
4 Maximum payment (difference times 42 months)

Your actual payment depends on the cost of the replacement dwelling you decide to rent.

If you rent and occupy a replacement dwelling that rents for less than the comparable dwelling, your rental assistance payment will be based on the actual cost of your replacement dwelling. If you rent and occupy a replacement dwelling that rents for more than the comparable dwelling, your rental assistance payment will be limited by the cost of the comparable dwelling.

If you BUY replacement housing (Downpayment Assistance)

You may use the amount of your rental assistance payment under either the URA or Title 25 for down payment assistance. Should you choose to buy (rather than rent) a decent, safe and sanitary replacement home under the URA or Title 25, you may use the full amount of your rental assistance payment ($________ URA) or ($________ Title 25), as calculated above for a down payment and incidental expenses (typically known as “closing costs”) associated with the purchase of a replacement dwelling. Under the URA or Title 25, you are not limited in the type of home you choose.

If you have received any amount as rental supplements, then those amounts will be deducted from all eligible down payment calculations. Let us know if you would prefer to buy a replacement home , and we will help you find such housing.

To be eligible for a replacement housing payment described above, you must rent or purchase and occupy a decent, safe and sanitary replacement dwelling within 12 months, as well as file claims for replacement housing or moving payments within 18 months from the date you move from your displacement dwelling. Failure to occupy the replacement dwelling or to submit claims within the above time limits could result in loss of moving and/or replacement housing benefits.

You do not have to accept any dwelling referred to you by the Developer. You may choose your own replacement, but to qualify for relocation assistance payments it must first be inspected to assure that it meets the “decent, safe and sanitary” standards. For this reason, DO NOT MOVE from your home and DO NOT CONTRACT to rent or purchase a replacement dwelling without first contacting your relocation agent. The “decent, safe and sanitary” inspection is not a substitute for a professional housing inspection.

If you remain in occupancy of your present dwelling after the Developer has completed the purchase, you must continue to pay your rent to the Developer for the period of your tenancy, as well as meet all other conditions stated in your lease or rental agreement.

The Relocation Assistance Program is very complex. It is important that you carefully read and understand the matters explained in this notice and in the Informational Statement which was

provided to you. Any person aggrieved by a determination a s to eligibility for, or the amount of, a payment authorized by the Developer’s Relocation Assistance Program may have the appeal application reviewed by the Developer in accordance with its appeals procedure. Complete details on appeal procedures are available upon request from the Developer.

If at any time you have questions or need assistance, please contact your OPC relocation agent:

<<NAME>>
Relocation Agent
Overland, Pacific & Cutler, LLC
5000 Airport Plaza Drive, Suite 250
Long Beach, CA 90815
Phone (562) 304-2000

Sincerely,

Dr. Michele Folk
Senior Vice President
Overland, Pacific & Cutler, LLC

Attachment (referrals)

ACKNOWLEDGMENT BY OCCUPANTS

I was personally contacted by the Relocation Agent for the Developer. I have been given a copy of this notice and I have had the available services and entitlements explained to me. I have been advised that the Relocation Agent will be available to assist me if any questions arise or assistance is needed.

Name: Signature: Date:

I (We) elect to receive relocation benefits under the Uniform Relocation Act (URA). I understand my URA benefits include a Notice of Eligibility and Conditional Entitlement Letter (NOE) that states a maximum relocation benefit payment of $______________ RAP and $___________ FMP.

Signature:

Date:

I (We) elect to receive relocation benefits under the State Regulations. I understand my State benefits include a Notice of Eligibility and Conditional Entitlement Letter (NOE) that states a maximum relocation benefit payment of $___________ RAP and $_________FMP.

Signature:

Date:

EXHIBIT E

NOTICE TO VACATE

90-Day Notice to Vacate and Termination of Tenancy

<<DATE>>

<<NAME>>
____ S. 6th Street
Montebello, CA 90640

Dear <<NAME>>:

Vista Del Monte Affordable Housing, Inc. (“Property Owner”) acquired the property which you occupy at _____ S. 6th Street, Montebello, CA 90640 (“Premises”). The Property Owner has now determined that it will be necessary for you to vacate the Premises.

Notice is hereby given that the Property Owner elects to terminate your tenancy in ninety (90) days beginning <<90DAY START>> and ending <<90DAY END>> and you are hereby to quit and deliver up possession of the property you occupy on or before <<90DAY END>>, or 90 days after service of this notice, whichever date is later.

If you do not vacate the Premises by that date, the Property Owner will initiate legal proceedings to recover possession of the Premises, along with any rents and damages.

During this per iod, Overland, Pacific & Cutler, LLC (OPC) will be available to provide assistance with referrals to replacement housing, coordination with movers, the processing of relocation benefit claim forms, and other tasks to help facilitate your relocation. Please contact your relocation agent listed above, if you have any questions regarding this notice or the relocation process. Upon vacating your unit, you are responsible for removing all of your personal property, delivering the Premises in satisfactory condition and turning in the keys to your relocation agent.

State law permits former tenants to reclaim abandoned personal property left at the former address of the tenant, subject to certain conditions. You may or may not be able to reclaim property without in curring additional costs, depending on the cost of storing the property and the length of time before it is reclaimed. In general, these costs will be lower the sooner you contact your former landlord after being notified that property belonging to you was left behind after you moved out.

Sincerely,

<<NAME>>
<<TITLE>>
Overland, Pacific & Cutler, LLC
Authorized Agent of Vista Del Monte Affordable Housing, Inc. <<OFFICE ADDRESS>>
Phone <<OFFICE PHONE>>

_________________________ Delivered on/by: ___________/____________ Received by

X________________________ Posted on/by: ___________/______________ Recipient’s Signature

_________________________ Mailed/receipt received on: _______/_______ Date
Your OPC Relocation Agent
Name: <<AGENT NAME>>
Phone: <<OFFICE PHONE>>
Case ID: <<CASE ID>>

EXHIBIT F

ADVISORY NOTICE

<<DATE>>

On behalf of Vista Del Monte Affordable Housing, Inc (the Developer), we are notifying you that the Relocation Plan for the 6th Street Grand Project is available for your review. We have enclosed a copy of the Relocation Plan.

If you have any questions or comments regarding the Relocation Plan or want assistance in understanding the proposed Relocation Program, please contact <<NAME>> of OPC at (800) 400-7356.

You will have a period of 30 days for public review and comment beginning <<DATE>>. All written comments regarding the plan should be submitted no later than 5:00 p.m., <<DATE>> to:

<<NAME>>
OPC
5000 Airport Plaza Drive, Suite 250
Long Beach, CA 90815

Or

<<EMAIL ADDRESS>>

Once the Project has been approved to move forward, residents will be required to move. OPC staff will contact you to assist you throughout the relocation process. Please do not move before you have been contacted and informed of your eligibility status.

EXHIBIT G

PUBLIC COMMENTS & RESPONSES

Appraisal Of

112-132 S 6th Street
Montebello, CA 90640
APNs: 6349-005-901, 6349-005-900, 6349-005-902, 6349-005-006, 6349-005-903

Effective Date: December 7, 2021

Report Date: January 14, 2022

Mr. Steve Hernandez

Cesar Chavez Foundation

316 W. 2nd Street, Suite 600
Los Angeles, CA 90012

KINETIC VALUATION GROUP, INC.

Midwest Omaha Southern California
11060 Oak Street Suite 6 PO Box 68
Omaha, Nebraska Corona Del Mar, California
(402) 202-0771 (818) 914-1892

ATTACHMENT D

January 14, 2022

Mr. Steve Hernandez
Cesar Chavez Foundation
316 W. 2nd Street, Suite 600
Los Angeles, CA 90012

Re: Appraisal of 112-132 S 6th Street
Montebello, CA 90640
APNs: 6349-005-901, 6349-005-900, 6349-005-902, 6349-005-006, 6349-005-903

Dear Mr. Hernandez:

We are pleased to present our findings with respect to the value of the above-referenced property.

The intended user and client of this report is Cesar Chavez Foundation and their assigns. Additional intended users include the California Tax Credit Allocation Committee (TCAC)/California Debt Limits Allocation Committee (CDLAC), Department of Housing and Community Development (HCD), Los Angeles County Development Authority, and any other funding agencies, partnerships formed, and/or lenders. The intended use of the appraisal is for inve stment analysis. Neither this report nor any portion thereof may be used for any other purpose or distributed to third parties without our express written consent.

This valuation engagement was conducted in accordance with the Code of Professional Ethics and Standards of Valuation Practice of the Apprai sal Institute, and the Uniform Standards of Professional Appraisal Practice (USPA P). In accordance with these standards, we have reported our findings herein in an appraisal report as defined by USPAP.

Our value conclusions were based on general econom ic conditions as they existed on the date of the analysis and did not include an estimate of the potential impact of any sudden or sharp rise or decline in general economic conditions from that date to the effective date of our report. Events or transactions that may have occurred subsequent to the effective date of our opinion have not been considered. We are not responsible to update or revise this report based on such subsequent events, although we would be pleased to discuss with you the need for revisions that may be occasioned as a result of changes that occur after the valuation date.

Special & Extraordinary Limiting Conditions

The valuation assumes the hypothetical condition that the site is vacant. A hypothetical condition is that which is contrary to what exists but is supposed for the purpose of analysis.

The use of the hypothetical conditions may affect assignment results.

As a result of our investigation and analysis, it is our opinion that subject to the limiting conditions and assumptions contained herein, our opinion of the market value of the fee simple interest in the Subject, free and clear of financing, as of December 7, 2021, is:

THREE MILLION SEVEN HUNDRED SIXTY THOUSAND DOLLARS
$3,760,000

We appreciate this opportunity to be of service. Please contact us if you have any comments or questions.

Respectfully submitted,

K
INETIC VALUATION GROUP, INC.

Amanda Baker, MAI Charles Haase
Appraiser Appraiser
[email protected] [email protected]
(402) 305-1693 (402) 750-1805
Certified General Certified General
CA - 3002360 CA - 3004234
Expiration: 7/14/2022 Expiration: 12/21/2022

TABLE OF CONTENTS

FACTUAL DESCRIPTION ....................................................................................................................................... 1 REGIONAL AND LOCAL AREA ANALYSIS ....................................................................................................... 4 MARKET AREA ECONOMY ................................................................................................................................... 9 POPULATION & HOUSEHOLD TRENDS ........................................................................................................... 17 NEIGHBORHOOD ANALYSIS .............................................................................................................................. 23 HIGHEST AND BEST USE ANALYSIS ................................................................................................................ 31 APPRAISAL METHODOLOGY ............................................................................................................................ 32 LAND VALUATION ................................................................................................................ ................................ 32

ADDENDA

FACTUAL DESCRIPTION

Property Identification
The property appraised is located at the 112-132 S 6th Street, identified as a portion of Assessor’s Parcel Numbers 6349-005-901, 6349-005-900, 6349-005-902, 6349-005-006, 6349-005-903, located in Montebello, Los Angeles Count y, CA. The breakdown of the different parcel information is illustrated in the table below.

Address Parcel ID Acres Square Feet
112 S 6th Street 6349005901 0.10 4,356
114 S 6th Street 6349005900 0.29 12,632
124 S 6th Street 6349005902 0.14 6,098
128 S 6th Street 6349005006 0.14 6,098
132 S 6th Street 6349005903 0.14 6,098
Parcel Size Breakdow n

The developer plans to construct a total of 63 un its that will be income-restricted, as per LIHTC guidelines. Parcel 6349005006 is currently improved with a duplex that will be razed prior to construction. Photos of the Subject have been included in the Addenda.

Intended Use and Intended Users of Appraisal
The intended user and client of this report is Cesar Chavez Foundation and their assigns. Additional intended users include the California Tax Cred it Allocation Committee (TCAC)/California Debt Limits Allocation Committee (CDLAC), Department of Housing and Community Development (HCD), Los Angeles County Development Authority, and any other funding agencies, partnerships formed, and/or lenders. The intended use of the appraisal is for investment analysis.

Compliance and Competency Provision
We are aware of the compliance and competen cy provisions of USPAP, and within our understanding of those provisions, this report complies with all mandatory requirements, and the authors of this report possess the education, knowledge, technical skills, and practical experience to complete this assignment competently, in conformance with the stated regulations.

Unavailability of Information
In general, all information necessary to develop an estimate of value of the Subject property was available to the appraisers.

Legal Description
Included in the Addenda.

Property Interest Appraised
The property interest appraised is the fee simple estate.

Market value is defined as:

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each ac ting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of sale as of a specified date and the passing of titl e from seller to buyer under conditions whereby:

1. Buyer and seller are typically motivated;

2. Both parties are well informed or well advised and acting in what they consider their best interest;

3. A reasonable time is allowed for exposure in the open market;

4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and,

5. The price represents normal c onsiderations for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 1

Date of Inspection and Effective Date of Appraisal
The Subject was inspected and photographed on December 7, 2021. This sh all be the effective date of the appraisal.

Scope of Appraisal
As part of this appraisal, we have completed the following steps to gather, confirm, and analyze the data.
 Charles Haase, a California Certified General Appraiser, performed a physical inspection of the property and the Subject's neighborhood December 7, 2021.  The identification of the property to be appraised is based on information provided by the client and public records data.
 Regional, city, and county data were ba sed on information obtained from newspaper articles, city of Montebello, Los Angeles County, ESRI Demographics, the Bureau of Labor Statistics, and other res ources available to the apprai ser. This was performed by Christian Jones.
 Data collection and analysis of market conditions currently affec ting the county’s real estate market on a national and regional leve l was conducted. This included, but was not limited to, the review and analysis of data pe rtaining to supply and demand for real estate properties, availability of financing and current financing terms, current interest and yield rates, buyer preferences, and economic forecasts. This was performed by Charles Haase.  The research for land sales and listings included Montebello and the surrounding area, from 2018 to the present. The market data was collect ed from the appraiser’s office files, other appraisers, Realtors, newspapers articles, CoStar, title companies, LoopNet, and public records. This was performed by Charles Haase.
 The information gathered from these surveys and investigations was then analyzed, and comparisons were made to the property. The valuation process included the sales comparison approach.
 Amanda Baker, MAI reviewed the report but did not inspect the Subject site.

1 6th Edition of The Dictionary of Real Estate Appraisal.

Ownership and History of Subject
The table below illustrates current ownership of all the parcels.

Ownership of 6349005006 is vested in Cesar Chavez Foundation, a California Nonprofit Corporation. It transferred in October 2021 from Ying Sing, LP, a California Limited Partnership for the price of $685,000. It was considered a market-oriented transaction.

There is a pending Purchase Sale and Developmen t Agreement (PSDA) that encompasses all of the remaining parcels, that would transfer ownership of all to Cesar Chavez Foundation, a California Nonprofit Corporation, for an amount to be determined by this appraisal.

We are aware of no other transfers of any of the pa rcels in the past three years and they are not currently exposed to the market.

Add ress Parcel ID Acres Ow ner Name
112 S 6th Street 6349005901 0.10 CITY OF MONTEBELLO, a municipal corporation 114 S 6th Street 6349005900 0.29

SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MONTEBELLO, a California successor agency created and ex isting pursuant to California Health & Safety Code section 34170 et seq.
124 S 6th Street 6349005902 0.14

SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MONTEBELLO, a California successor agency created and ex isting pursuant to California Health & Safety Code section 34170 et seq.
128 S 6th Street 6349005006 0.14 Cesar Chavez Foundation, a California Nonprofit Corporation 132 S 6th Street 6349005903 0.14 CITY OF MONTEBELLO, a municipal corporation Ow ner Breakdow n

REGIONAL AND LOCAL AREA ANALYSIS
The Subject is located in the northern portion of Montebello, California. Located in the southwestern section of the San Gabriel Valley, Montebello has a total area of eight square miles.

Montebello is positioned eight miles east of dow ntown Los Angeles in Los Angeles County. As of the 2010 census, the population was 62,500 people.

Los Angeles is the second most populous city in the United States with a population of 3.83 million within its administr ative limits which consists of a land area of 498.3 sq uare miles. The greater Los Angeles area extends beyond the administra tive city limits with a population of over 14.8 million making it the 14th largest urban area in the world. The Los Angeles–Long Beach–Santa Ana metropolitan statistical area (MSA), which c onsists of Los Angeles and Orange counties, is home to nearly 12.9 million resi dents while the broader Los Angeles-Long Beach-Riverside combined statistical area (CSA) contains nearly 17.8 million people. Los Angeles is also the seat of Los Angeles County, the most populated county in the United States.

Transportation
Highway: The Greater Los Angeles area are served by a vast highway and interstate system.

The following information describes the most notable roadways in the vicinity of Montebello.

Interstate 405, a bypass of In terstate 5, is a major north/south route running along the western and southern parts of the Greater Los Angeles Area from Irvine in the south to near San Fernando in the north. The entire route is known as the northern segment of the San Diego Freeway. In terstate 405 is a heavily traveled thoroughfare by both commuters and by freight haulers along its entire length and is the busiest and most congested freeway in the United States.

California State Route 60 is a major east/west route that runs along northern Montebello. The route branches off of In terstate 5 and traverses west where it eventually joins Interstate 10 in Beaumont.

California State Route 19 is a major route running north/south and runs on the east side of Montebello. The route starts in Long Beach and runs north where it merges with California State Route 164 east of Montebello in Pico Rivera. The route serves and gives access to the southern portion of the Los Angeles Metropolitan Area.

Interstate 605, a major route running north /south, serves the central portion of the Los Angeles Metropolitan Area. Interstate 605 starts in Los Alamitos and runts north through the Los Angeles region.

Interstate 5 is a major northeast/southwest traversing route running up the coast and through western California. The route starts at the United States and Mexico border and ends at the United States and Cana da border in Washington. Interstate 5 runs on the south side of Montebello and serves the central portion of the Los Angeles Metropolitan Area.

Interstate 10 is a majo r east/west route running east from Santa Monica, on the Pacific Ocean, through Los Angeles and San Bernardino to the border with Arizona. In the greater Los Angeles area, it is known as the Santa Monica Freeway and the San Bernardino Freeway, linked by a short concurrency on Interstate 5 (the Golden State Freeway) at the East Los Angeles Interchange. The highway is located approximately 5.2 miles north of the Subject.

Air: Los Angeles Internat ional Airport (LAX) is located approximately 16 miles southwest of the Subject. LAX is the fifth busiest airport in the world and second busiest in the United States, offering 692 daily flights to 85 domestic cities and 928 weekly nonstop flights to 67 cities in 34 countries on 59 passenger air carriers.

Public Transportation
The Los Angeles County Metropolitan Transportati on Authority operates bus lines, as well as subway and light rail lines across Los Angeles County, with a combined monthly ridership of 38.8 million. The bus system includes nearly 16,000 stops throughout 170 routes covering a 1,433 square mile service area. The rail system includes eight stations covering 87 miles of service that include four light rail lines and two subway lines . The nearest bus stop is located approximately

0.03 miles from the Subject.

Healthcare
The closest hospital is the Beverly Community Hospital located ap proximately 0.50 miles northeast of the Subject. Be verly Community Hospital a 224-be d acute care hosp ital offering comprehensive healthcare including an emergenc y department, cardiology, pediatrics, surgery, and orthopedic services among others.

Education
The Subject is located in the Montebello Unified School District. The Montebello Unified School District serves more than 29,000 students in pre-school through grade 12. Students who reside at the Subject will be zoned to attend Fremont Elementary School, Montebello Intermediate School, and Montebello High School which are located between 0.36 miles and 1.09 miles from the Subject.

DELINEATION OF MARKET AREA

Primary and Secondary Market Area
For the purpose of this study, it is necessary to define the mark et area, or the area from which potential tenants for the projec t are likely to be drawn. In so me areas, residents are very “neighborhood oriented” and are generally very reluctant to move from the area where they have grown up. In other areas, residents are much more mobile and will relocat e to a completely new area, especially if there is an attraction such as affordable hous ing at below market rents. The Subject is located in the southern portion of Montebello, a city in within Los Angeles County that abuts the city of Los Angeles on its eastern a nd western boundaries. The Primary Market Area consists primarily of the Southeast Los Ange les Submarket as defined by CoStar. The area encompasses the cities of Montebello, Pico Ri vera, Monterey Park, an d South El Monte, and portions of the cities of El Monte, Whittier, Norwalk, and the unincorporated area of East Los Angeles. The general PMA boundaries for the Subject are defined as follows:

North – Interstate 10
South – Imperial Highway
East – Interstate 605/Highway 60/South Hacienda Blvd/Colima Rd West – Interstate 5/Interstate 710

The PMA boundaries and overall market health assessment are based upon an analysis of demographic and socioeconomic char acteristics, target tenant popul ation, political jurisdictional boundaries, natural boundaries, experi ence of nearby comparable developments, acce ssibility to mass transit or key transportation corridors and commute patterns, and market perceptions as well as surveys of existing market rate and affordable apartment projects undertaken by Kinetic Valuation Group, Inc., and insights gained from resident managers, area planning staff, and others familiar with the multifamily market. We recogni ze a smaller sub-market may exist within this PMA; however, market data demonstrates that a significant amount of the renter base considers housing opportunities within this defined area. Given the opportunity to lo cate good quality affordable housing, the renter ba se will move within these areas. We anticipate th e majority of demand will be generated from this geographic area. However, some leakage would be anticipated from outside the PMA from other parts of Los Angeles County.

There are no natural boundaries in Montebello or Los Angeles County that would inhibit anyone from relocating to the Subject. The market area boundaries identified are a reasonable approximation regarding the potential renter mark et for the Subject. Both market rate and affordable rental housing of all types is in strong demand. Rental housing in the PMA appears to be stable, with low vacancy rates.

The secondary market area (SMA) for the Subject is the Los Angeles-Long Beach-Anaheim MSA.

Maps outlining the PMA and SMA can be found on the following page.

PMA

Subject

SMA

MARKET AREA ECONOMY
The following discussion includes an analysis of the local economy. This section will present and analyze information regarding employment by industry, the major employers, and unemployment trends. Information was provided, where available, for the Subject’s PMA. We obtained economic information from the Bureau of Labor Statistics, city of Montebello, ESRI Demographics, and the Montebello Chamber of Commerce. These data sources are considered to be the most reliable and current.

Employment by Industry
The following charts illustrate the distribution of employment sectors by industry within the PMA and SMA.

Source: ESRI Demographics

0.4%

7.0%

12.3%

5.1%

10.8%

9.0%

1.7%

5.4%

43.6%

4.7%
2021 Employed Population 16+ by Industry - PMA
Agriculture/Mining 0.4%
Construction 7.0%
Manufacturing 12.3%
Wholesale Trade 5.1%
Retail Trade 10.8%
Transportation/Utilities 9.0%
Information 1.7%
Finance/Insurance/Real Estate 5.4%
Services 43.6%
Public Administration 4.7%

The largest employment sector in the PMA is the service sector with 43.6 percent, followed by the manufacturing sector with 12.3 percent and the retail trade sector with 10.8 percent.

Source: ESRI Demographics

0.5%

6.5%

9.8%

3.2%

9.9%

6.2%

3.7%

7.1%

49.7%

3.6%
2021 Employed Population 16+ by Industry - SMA
Agriculture/Mining 0.5%
Construction 6.5%
Manufacturing 9.8%
Wholesale Trade 3.2%
Retail Trade 9.9%
Transportation/Utilities 6.2%
Information 3.7%
Finance/Insurance/Real Estate 7.1%
Services 49.7%
Public Administration 3.6%

The largest employment sector in the SMA is the service sector with 49.7 percent, followed by the retail trade sector with 9.9 percent and the manufacturing sector with 9.8 percent.

Major Employers
The following chart identifies the major employers in Los Angeles County in 2021.

Employer Location Industry
AHMC Healthcare Inc Alhambra Health Care Management
All Nations Church Sylm ar Churches
California State Univ NRTHRDG Northridge Schools-Universities & Colleges Academ ic Cedars-Sinai Health System West Hollywood Health Care Managem ent Kaiser Perm anente Los Angeles Los Angeles Hospitals
Lac Usc Medical Ctr Los Angeles Hospitals
Live Nation Los Angeles Entertainm ent Bureaus
Long Beach City Hall Long Beach City Hall
Longshore Dispatch Wilm ington Nonclassified Establishm ents Los Angeles County Sheriff Monterey Park G overnm ent Offices-County Los Angeles Intl Airport-Lax Los Angeles Airports
Los Angeles Medical Ctr Los Angeles Pathologists
Los Angeles Police Dept Los Angeles Police Departm ents National Institutes of Health Pasadena Physicians & Surgeons Security Industry Specialist Culver City Security System s Consultants Six Flags Magic Mountain V alencia Amusement & Theme Parks Sony Pictures Entertainm ent Culver City Motion Picture Producers & Studios Space Ex ploration Tech Corp Hawthorne Aerospace Industries (mfrs) Twentieth Century Fox Los Angeles Motion Picture Producers & Studios UCLA Com m unity Based Learning Los Angeles Junior-Com m unity College-Tech Institutes University of Ca Los Angeles Los Angeles Schools-Universities & Colleges Academ ic University of Ca Los Angeles Los Angeles University-College Dept/Facility/Office V ision X Los Angeles Call Centers
Walt Disney Co Burbank Water Parks
Water G arden Managem ent Santa Monica Office Buildings & Parks Source: CA EDD
Los Angeles County, CA M ajor E mp loyers - 2021

Workforce and Unemployment Trends
The table below illustrates the workforce and unemployment trends for the city of Montebello and Los Angeles County.

Ye ar Total Labor
Force
Total
Empl oyme nt
Une mpl oyme nt
Rate (% )
(% )
Change
Total Labor
Force
Total
Empl oyme nt
U nemployment
Rate (% )
(% )
Change
2010 28,130 25,075 10.9 - 4,940,672 4,318,722 12.6 -
2011 28,193 25,221 10.5 -0.4 4,941,667 4,337,370 12.2 -0.4 2012 27,975 25,329 9.5 -1.0 4,904,883 4,365,690 11.0 -1.2 2013 28,226 25,857 8.4 -1.1 4,955,806 4,471,400 9.8 -1.2 2014 28,359 26,358 7.1 -1.3 4,982,412 4,572,171 8.2 -1.6 2015 28,224 26,611 5.7 -1.4 4,973,756 4,641,054 6.7 -1.5 2016 28,708 27,079 5.7 0.0 5,018,920 4,751,209 5.3 -1.4 2017 28,995 27,474 5.2 -0.5 5,088,898 4,843,694 4.8 -0.5 2018 28,919 27,464 5.0 -0.2 5,094,301 4,857,330 4.7 -0.1 2019 28,959 27,523 5.0 0.0 5,122,843 4,888,581 4.6 -0.1 2020 28,022 24,163 13.8 8.8 4,921,499 4,291,688 12.8 8.2 2021 YTD 28,585 26,083 8.8 -5.0 5,027,344 4,632,805 7.8 -5.0 Source: Bureau of Labor Statistics
U nemployment Trends - 2010-2021 Y TD
Montebello, CA Los Angeles County, CA

The unemployment rate in Montebello has fl uctuated between 5.0 and 13.8 percent from 2010 through 2021 year to date. From 2009 to 2019 the unemployment rate declined to a decade low of

5.0 percent. Due to the COVID-19 pandemic unemployment rose to 13.8 percent in 2020. As the economy has recovered throughout 2021 the unemployment rate has declined to 8.8 percent. The county follows a similar trend.

Below we have compared the city, MSA, state, and national unemployment rates over the past 24 months.

Source: Bureau of Labor Statistics
2 4
6 8
10 12
14 16
18 20
22 Monthly Unemployment Rate Oct 19 to Oct 21
Montebello, CA
Los Angeles
County, CA
State of California
National

The city, county, and state have remained consistently above the national unemployment rate over the past 24 months. Unemployment spiked in April 2020 but began to steadily decline beginning in May 2020.

Employment Trends
The following table illustrates the employment trends in Montebello and Los Angeles County from 2010 to 2021 year to date.

Ye ar
Total
Employment
Percentage
Growth
Total
Employment
Percentage
Growth
2010 25,075 - 4,318,722 -
2011 25,221 0.6% 4,337,370 0.4%
2012 25,329 0.4% 4,365,690 0.7%
2013 25,857 2.1% 4,471,400 2.4%
2014 26,358 1.9% 4,572,171 2.3%
2015 26,611 1.0% 4,641,054 1.5%
2016 27,079 1.8% 4,751,209 2.4%
2017 27,474 1.5% 4,843,694 1.9%
2018 27,464 0.0% 4,857,330 0.3%
2019 27,523 0.2% 4,888,581 0.6%
2020 24,163 -12.2% 4,291,688 -12.2%
2021 YTD 26,083 7.9% 4,632,805 7.9%
Source: Bureau of Labor Statistics
E mp loyment Trend s - 2010 - 2021 Y TD
Montebello, CA Los Angeles County, CA

The employment level in Montebello and the county has increased every year since 2011, with the exception of 2020. Employment decreased in 2020 due to the COVID-19 pandemic, but as the economy has begun to recover in 2021 year-to-date, employment has risen 7.9 percent.

Commuting Patterns
The chart below shows the travel time to work for the PMA according to ESRI data.

Source: ESRI Demographics
1%
5% 10%
14%
13%
6%18%
3%
5%
12%
10%
3%
Average Travel Time to W ork
Less than 5 minutes 1%
5 to 9 minutes 5%
10 to 14 minutes 10%
15 to 19 minutes 14%
20 to 24 minutes 13%
25 to 29 minutes 6%
30 to 34 minutes 18%
35 to 39 minutes 3%
40 to 44 minutes 5%
45 to 59 minutes 12%

Approximately 67 percent of persons in the PMA have a commute time of less than 35 minutes indicating a majority of the persons in the PMA commute to work in nearby areas.

Wages by Occupation
The chart below shows the wages by occupation for the Los Angeles-Long Beach-Anaheim, CA MSA.

Occupational Title
Number of
E mployees
Average Hourly
Wage
Average
Annual Wage
All Occupations 5,822,510 $30.61 $63,660
Managem ent Occupations 369,510 $67.37 $140,130
Business and Financial Operations Occupations 389,820 $40.94 $85,160 Computer and Mathematical Occupations 174,170 $48.51 $100,900 Architecture and Engineering Occupations 107,080 $49.00 $101,910 Life, Physical, and Social Science Occupations 48,800 $43.50 $90,480 Com m unity and Social Service Occupations 120,690 $29.75 $61,880 Legal Occupations 61,240 $66.29 $137,890
Educational Instruction and Library Occupations 336,630 $35.35 $73,530 Arts, Design, Entertainm ent, Sports, and Media Occupations 163,890 $41.65 $86,620 Healthcare Practitioners and Technical Occupations 299,200 $49.27 $102,480 Healthcare Support Occupations 374,240 $16.44 $34,190
Protective Service Occupations 148,980 $30.29 $63,010
Food Preparation and Serving Related Occupations 482,270 $15.45 $32,140 Building and G rounds Cleaning and Maintenance Occupations 152,960 $18.32 $38,110 Personal Care and Service Occupations 114,380 $18.59 $38,660 Sales and Related Occupations 524,510 $23.62 $49,140
Office and Adm inistrative Support Occupations 787,770 $22.68 $47,170 Farm ing, Fishing, and Forestry Occupations 4,930 $17.31 $36,010 Construction and Ex traction Occupations 193,300 $30.58 $63,600 Installation, Maintenance, and Repair Occupations 165,140 $28.18 $58,610 Production Occupations 320,810 $20.09 $41,780
Transportation and Material Moving Occupations 482,170 $20.23 $42,080 Source: Bureau of Labor Statistics
Wage b y Occup ation - Los Angeles-Long Beach-Anaheim, CA M SA - 2020

The above chart shows average hourly and annual wages by employment classification. The classification with the lowest average hourly wage was food preparation and serving related occupations, at $15.45 per hour. The highest average hourly wage of $67.37 was for management occupations.

Conclusion
The Subject’s neighborhood, city of Montebe llo, and Los Angeles County include many employment options for area residents. Numerous busine sses offering a range of positions and skill levels exist within close proximity to the Subject. The wage rates within the area demonstrate a significant pool of potential tenants exist for affordable housing developments.

POPULATION & HOUSEHOLD TRENDS

In this section, we compare population, household and income trends in the PMA and SMA. All information is provided to us by ESRI Demogr aphics, which is a national proprietary data provider. Some tables reflect rounding from the data provided, however, it is nominal. The data is presented for the primary market area and seco ndary market area in which the development is located.

Total Population
The charts below illustrate total population in the PMA and SMA from 2021 through 2026.

Source: ESRI Demographics
570,000
572,000
574,000
576,000
578,000
580,000
582,000
2010 2021 2026
Total Population - PMA 574,415 580,588 580,469
Total Population - PMA

Source: ESRI Demographics
12,400,000
12,600,000
12,800,000
13,000,000
13,200,000
13,400,000
13,600,000
2010 2021 2026
Total Population - SMA 12,828,837 13,303,870 13,505,465 Total Population - SMA

The population within the PMA has continuou sly grown from 2010 to 2021 and though it is expected to decrease slightly through 2026 the demand for affordable housing is still expected to remain high. Similar to the PMA, the SMA is also considered an area of growth, which is a positive indicator for the need of additional affordable housing units.

Population by Age Group
The tables below illustrate population by age group in the PMA and SMA from 2010 through 2026.

Age Cohort 2010 2021 2026
0 - 4 39,091 36,671 36,219
5 - 9 39,445 37,906 35,237
10 - 14 43,167 38,330 37,993
15 - 19 46,804 38,878 36,356
20 - 24 42,835 40,930 37,485
25 - 34 79,994 92,595 86,080
35 - 44 81,395 76,739 84,296
45 - 54 76,018 70,324 70,222
55 - 64 57,412 63,800 63,618
65 - 74 34,273 47,589 51,113
75 - 84 24,014 25,389 29,802
85+ 9,968 11,436 12,050
Total 574,415 580,588 580,469
Age Cohort 2010 2021 2026
0 - 4 837,484 785,996 799,703
5 - 9 832,459 809,413 773,793
10 - 14 889,040 833,110 805,315
15 - 19 981,319 852,307 811,751
20 - 24 966,389 939,865 876,338
25 - 34 1,889,259 2,125,390 2,100,007
35 - 44 1,869,369 1,803,884 1,979,363
45 - 54 1,813,132 1,651,621 1,624,291
55 - 64 1,335,010 1,566,100 1,540,283
65 - 74 755,924 1,124,746 1,230,081
75 - 84 458,306 570,565 701,770
85+ 201,146 240,873 262,770
Total 12,828,837 13,303,870 13,505,465
Source: ESRI Demographics
Popul ati on by Ag e Group
PMA
Popul ati on by Ag e Group
SM A

In the PMA, population appears to be the greatest in the 25 to 54-year age group during 2021.

Number of Elderly and Non-elderly
The table below is an illustration of the elderly and non-elderly population.

Ye ar Total
Population Non-E lderly E lderly (55+) Total
Population Non-E lderly E lderly (55+)
2010 574,415 448,748 125,667 12,828,837 10,078,451 2,750,386 2021 580,588 432,374 148,214 13,303,870 9,801,586 3,502,284 2026 580,469 423,886 156,583 13,505,465 9,770,561 3,734,904 Source: ESRI Demographics
Number of E lderly and Non-El derly

PMA SM A

Within the PMA, population is greatest in the non-elderly population, those aged 54 or under. In 2021, the elderly population was approximately 25.5 percent of the total population in the PMA.

Within the SMA, the elderly population also comprised 26.3 percent of total population in 2021.

Total Number of Households
The charts below illustrate the total number of households in the PMA and SMA.

Source: ESRI Demographics
160,000
160,500
161,000
161,500
162,000
162,500
2010 2021 2026
Total Number of Households 161,060 162,447 161,897
Total Household - PMA

Source: ESRI Dem ographics
4,100,000
4,150,000
4,200,000
4,250,000
4,300,000
4,350,000
4,400,000
4,450,000
2010 2021 2026
Total Number of Households 4,233,985 4,376,140 4,439,661 Total Household - SMA

Similar to the growth in popul ation in both the PMA and SMA, growth in the number of households is expected to decrease between 2010 and 2026, however de mand for affordable multifamily housing is expected to remain high.

Total Household by Tenure
The table below illustrates total households by tenure for the total population in the PMA and SMA.

Number Percentage Number Percentage Number Percentage Number Percentage 2010 87,662 54.4% 73,398 45.6% 2,133,062 50.4% 2,100,923 49.6% 2021 86,367 53.2% 76,081 46.8% 2,127,490 48.6% 2,248,650 51.4% 2026 86,702 53.6% 75,195 46.4% 2,149,662 48.4% 2,289,999 51.6% Source: ESRI Demographics
Tenure Patterns - Total Population
Year

PMA SMA
Owner-Occupied Units Renter-Occupied U nits Ow ner-Occupied U nits Renter-Occupied Units

As indicated, the total number of renter-occ upied housing units within the PMA during 2021 is

46.8 percent. This number is projected to decrease slightly through 2026. Comparatively, the total number of renter-occupied households within the SMA during 2021 is higher, at 51.4 percent.

Average Household Size
The table below illustrates average household size.

Number Annual
Change Number Annual
Change
2010 3.57 - 3.03 -
2021 3.57 0.02% 3.04 0.03%
2026 3.59 0.06% 3.04 0.01%
Source: ESRI Demographics
Av erage Household Size
Ye ar

PMA SMA

Average household size in the PMA during 2021 was 3.57 persons; this is projected to increase slightly through 2026. Comparison to the SMA average household size of 3.04 indicates a smaller household size in the SMA than the PMA.

Median Household Income Levels
The table below illustrates the median household income in the PMA and SMA from 2021 through 2026.

Amount Annual
Change Amount Annual
Change
2021 $65,132 - $78,908 -
2026 $75,394 3.2% $89,775 2.8%
Median Household Income
Ye ar

PMA SMA

Median household income in the PMA is projected to increase 3.2 percent between 2021 and 2026, which is larger than the expected change in the SMA of 2.8 percent.

Renter Household Income Distribution
The following tables illustrate renter household income distribution in 2021 and 2026 in the PMA and SMA.

Number Percentage Number Percentage
<$15,000 6,391 8.4% 5,339 7.1%
$15,000 - $24,999 6,771 8.9% 5,414 7.2%
$25,000 - $34,999 6,163 8.1% 5,188 6.9%
$35,000 - $49,999 9,282 12.2% 8,347 11.1%
$50,000 - $74,999 13,695 18.0% 13,084 17.4%
$75,000 - $99,999 10,347 13.6% 10,377 13.8%
$100,000 - $149,999 12,934 17.0% 14,513 19.3%
$150,000 - $199,999 6,010 7.9% 7,444 9.9%
$200,000+ 4,413 5.8% 5,489 7.3%
Total 76,081 100% 75,195 100.0%
Number Percentage Number Percentage
<$15,000 200,130 8.9% 169,460 7.4%
$15,000 - $24,999 152,908 6.8% 125,950 5.5%
$25,000 - $34,999 152,908 6.8% 132,820 5.8%
$35,000 - $49,999 218,119 9.7% 194,650 8.5%
$50,000 - $74,999 344,043 15.3% 332,050 14.5%
$75,000 - $99,999 278,833 12.4% 288,540 12.6%
$100,000 - $149,999 400,260 17.8% 444,260 19.4%
$150,000 - $199,999 209,124 9.3% 254,190 11.1%
$200,000+ 290,076 12.9% 345,790 15.1%
Total 2,248,650 100% 2,289,999 100%
Source: ESRI Demographics
Renter Household Income Distribution - PMA
Income Cohort 2021 2026
Renter Household Income Distribution - SMA
Income Cohort 2021 2026

Conclusion
The PMA is comprised of 46.8
percent renter households. Demand for multifamily rental units in the PMA is expected to come from normal turnover and the limited supply of affordable properties in the area. Demand for rental units in the PMA is expected to come from natural population growth and renter turnover. The demographics presented above provide support that there is a stable renter population within the PMA. As housing and rental prices continue to increase, there will be a greater need for affordable housing units. These factors support current and future demand for the Subject.

NEIGHBORHOOD ANALYSIS

The neighborhood surrounding an apartment property often impacts the prope rty's status, image, class, and style of operation, and sometimes its ability to attract and properly serve a particular market segment. This section investigates the property's neighborhood and evaluates any pertinent location factors that could affect its rent, its occupancy, and overall profitability.

As defined by the Los Angeles Times, the Subject is located in the southeast portion of the Los Angeles Metropolitan Area within Montebello. The city consists of approximately 8.45 square miles and is located south of Monterey Park and northwest of Pico Rivera. As of the 2010 census the population was 62,500. The area is generally bounded by Highway 60 to the north, Interstate 5 to the South, the Rio Hondo Channel to the east, and Garfield Avenue to the west. The map below illustrates the Subject’s location within Montebello.

Access and Traffic Flow
Access to the site is from the east side of Sixth Street. Seventeenth Street is a two-lane north/south neighborhood connector street that provides access to Whittier Boulevard to the north. Whittier Boulevard is a four-lane thoroughfare traver sing east/west through the southern portion of Montebello providing access to Interstate 710 to the west and Interstate 605 to the east.

Visibility/Views
The site will have good visibility fr om the east side of Si xth Street. The Subject is located in a mixed-use neighborhood. To the no rth consist of mixed-use comm ercial buildings in average condition. Views to the east, we st, and south consist of mixe d-use commercial buildings, educational facilities, single-family homes, and multifamily homes, all in average condition.

Location Map
The map below illustrates the Subject and surrounding neighborhood.

Subject

Locational Amenities & Map - Overview
The map and table below illustrate the location amenities in relation to the Subject’s site.

M ap # Name Serv ice Distance
1 Bus Stop Transportation 0.03 m iles
2 First Church of the Nazarene Church 0.09 miles
3 Alvarado Market G rocery Store 0.10 miles
4 United States Postal Service Post Office 0.13 miles
5 Montebello Pharmacy Pharmacy 0.20 miles
6 Fremont Elementary School Education 0.36 miles
7 Beverly Hospital Hospital 0.50 miles
8 Montebello City Park Recreation 0.53 miles
9 Montebello Interm ediate School Education 0.74 m iles 10 U.S. Bank Bank 0.94 miles
11 Montebello Library Library 0.98 miles
12 Montebello High School Education 1.09 m iles
13 ARCO Gas Station 1.38 miles
Distance From Local Serv ices

Crime Statistics
The following crime data is provided by Neighborhood Scout.

After inspection and observation of the Subject’s neighborhood, we do not anticipate the overall crime statistics will affect the marketability for the Subject.

Summary
The Subject is planned to provide affordable housing that is in strong demand in the area. The site is located in the southern portion of the city of Montebello. All major shopping, transportation, and recreational amenities are located within a short distance of the Subject. Access to groceries, pharmacy and shopping is convenient, and within reasonable distance.

PROJECT DESCRIPTION
Our description of the Subject is based upon in formation provided by the developer and the property inspection. We assume the information supplied is accurate.

Site Description

Site Location: The Subject is located at the 112-132 S 6th Street, Montebello, Los Angeles County, CA. The site is located in Census Tract 5321.01.

Existing Improvements: The Subject currently is improved with a duplex that is planned to be razed prior to redevelopment of the site.

Size/Shape: The site contains 0.81 acres or 11,939 square feet, and is rectangular in shape.

Topography: The site topography generally level.

Vegetation: The site no notable vegetation.

Proximity to Adverse
Conditions: At this time, we are unaware of any detrimental influences that would impact on the value of the Subject.

Drainage: Appears adequate, however no specific tests were performed.

Soil and Subsoil Conditions: We were not provided with soil surveys.

Environmental: We did not observe any obvious environmental hazards during the site inspection. However, we are not experts within this field.

Zoning: The Subject is zoned a mixture of C-2-PD, General Commercial Planned District & R-3-PD, Multiple-Family
Residential Planned Di strict, Centre City Planned District Neighborhood Mixed-Use Center (MC). According to a
resolution approved by the City of Montebello Planning
Commission on October 19, 2021, the properties at 112-132 South 6
th in Montebello have been approved for the
construction of 63 affordable housing units. The Subject represents a legal conforming use.

Flood Plain: According to the Flood Insights Map Number 06073C1663F, dated September 26, 2008, the Subject is
located in Zone X. This zone is determined to be an area outside of the 100-year flood.

Photographs: Subject photos are included in the Addenda.

Location Map: The map below illustrates the location of the Subject.

Subject

HIGHEST AND BEST USE ANALYSIS

HIGHEST AND BEST USE AS VACANT

Physically Possible
The Subject site consists of approximately 0.8 1 acres or 39,240 square fe et. The site is a rectangular shaped parcel with generally leve l topography. Accessibility and visibility are considered good. The site is considered adequate for a variety of physically possible uses.

Legally Permissible
According to a resolution approved by the City of Montebello Planning Commission on October 19, 2021, the properties at 112-132 South 6
th in Montebello have been approved for the
construction of 63 affordable housing units, which appears reasonable.

Financially Feasible
The cost of the land limits those uses that are financially feasible for the site. Any use of the Subject site that provides a financial return to the land in excess of the cost of the land is those uses that are financially feasible. Given the Subject’s surr ounding land uses, the site’s physical attributes, development patterns in the area, and demand, apartment residential is considered the most likely use. It is noted the area is experiencing both market rate and affordable multifamily development.

Redevelopment of the site with affordable housing will be consistent with the city’s goals of increasing affordable housing within the city.

Maximally Productive
With development of th e Subject as proposed the tax cred it subsidy is necessary to support feasibility with restricted rents. Therefore, the maximally productive use of this site as if vacant is to construct a multifamily residential complex using tax credit equity, favorable financing, or other gap subsidies.

Conclusion Highest and Best Use “As Vacant”
The highest and best use for the property “as vacant” would be to construct a multifamily residential development with financial subsidies.

APPRAISAL METHODOLOGY

The sales comparison approach of land sale comparables intended for multifamily development to assess the value of the Subject site, as though vacant is the appropriate methodology for valuation of the Subject property. The cost and income appr oach are not applicable, and were not used in this appraisal report.

LAND VALUATION

The sales comparison approach to value is a process of comparing market data; that is, the price paid for similar propertie s, prices asked by owners, and offe rs made by pros pective purchasers willing to buy or lease. Market data is good evidence of value because it represents the actions of users and investors. The sales comparison approach is based on the principle of substitution, which states that a prudent investor would not pay more to buy or rent a property than it will cost to buy or rent a comparable substitute. The sales comparison approach recognizes that the typical buyer will compare asking prices and work through the most advantageous deal available. In the sales comparison approach, the appraisers are observers of the buyer’s actions. The buyer is comparing those properties that constitute the market for a given type and class.

To arrive at an opinion of land value for the Subject site, we researched and analyzed sales of comparable sites in the competitive area. In performing the market valuation, an extensive search for recent transfers of land zone d for multifamily development within the Montebello area was made. Due to the lack of multifamily sales in Montebello, the search was expanded to include sales from Los Angeles, La Puen te, and El Monte. Following is a summary of sales, land sales map, individual land data sheets, and analysis of sales.

Data No. Property Identification Date of Sale Sale Price Property Size/Acres
Property
Size/ SF
Price per
SF
Price per
Unit
4641-4655 E. 3rd Street
1 Los Angeles, CA 90022 Jun-21 $2,826,120 0.52 22,651 $124.77 $36,232 5250-017-900; -01, 02, 03, 04, 06
1040 N Unruh Ave
2 La Puente, CA 91744 Jul-19 $3,000,000 1.08 47,045 $63.77 $40,541 8472-037-027, -009, -010, -012, -013, -026
2704-2728 Santa Anita Avenue
3 El Monte, CA 91733 Mar-18 $2,330,000 1.76 76,666 $30.39 $58,250 8104-013-003, 007, 008, 051
M ultifamily Land Sales

Land Sales Map

Land Sale 1
Property Identification
Add ress/Location 4641-4655 E. 3rd Street
Los Angeles, CA 90022
APN 5250-017-900; -01, 02, 03, 04, 06
Property Characteristics Sale Data
Zoning LCC2 Sale Price $2,826,120
Property Use Multifamily Cash Equivalent $2,826,120
Size (Acres) 0.52 Number of Units Planned 78
Size (SF ) 22,651 Price per SF $124.77
Shap e Rectangular Sale Date Jun-21
Topography Level Price per U nit $36,232
Streets Paved Cash Equivalent Ye s
Off-site Improvements To Site Seller County of Los Angeles Other Improv ements None Buyer 3rd & Dangler Lp
U tilities To Site Sale Cond itions Market
Location Average Property Rights Fee Simple
Access Average Marketing Time (Mo.) N/A
Visibility Average Comp ID 11398
Comments
Sale information was confirmed with the developer, Lesley Hampton (909-483-2444). The buyer intends to build 78 multifamily LIHTC units.

Land Sale 2
Prop erty Id entification
Address/Location 1040 N Unruh Ave
La Puente, CA 91744
APN 8472-037-027, -009, -010, -012, -013, -026
Property Characteristics Sale Data
Zoning LPC2 Sale Price $3,000,000
Property Use Multifamily Cash Equivalent $3,000,000
Size (Acres) 1.08 Number of Units Planned 74
Size (SF) 47,045 Price per SF $63.77
Shap e Irregular Sale Date Jul-19
Topography Level Price per Unit $40,541
Streets To Site Cash Equivalent Yes
Off-site Improvements To Site Seller Gutierrez Family Trust Other Imp rov ements None Buyer Unruh 1040 LP
U tilities To Site Sale Cond itions Market
Location Average Property Rights Fee Simple
Access Average Marketing Time (Mo.) n/a
Visib ility Average Comp ID 5008
Comments
The sale includes 6 parcels of land with LPC2 zoning. There was previously a single fam ily residence on one of the parcels. Approved plans for 74 units of affordable housing were in place at the tim e of the sale. The buyer obtained financing from the state for the p roject. The seller was m otivated to divest the property because he could not find a developer to build the 74 units. The buyer was attracted to the property because of the approved plans in place. The sale date, sale price, size of land, buyer inform ation, seller inform ation, and proposed use of land were confirm ed by both parties of the transaction.

Land Sale 3
Property Identification
Addres s / Locati on 2704-2728 Santa Anita Avenue
El Monte, CA 91733
APN 8104-013-003, 007, 008, 051
Property Characteristics Sale Data
Zoning R3, R1A Sale Price $2,330,000
Property Use Multifamily Cash Equivalent $2,330,000
Size (Acres) 1.76 Number of U nits Planned40
Size (SF) 76,666 Price per SF $30.39
Shap e Irregular Sale Date Mar-18
Topography Level Price per U nit $58,250
Streets Paved Cash Equivalent Ye s
Off-site Improvements To Site Seller SFT Enterprises Inc Other Imp rov ements Commercial Buildings Buyer City Ventures U tilities To Site Sale Cond itions Market
Location Average Property Rights Fee Simple
Access Average Mark e ti ng Ti me (Mo.)n/a
Visibility Average Comp ID 5006
Comments
Planned developm ent of 40 units. Data sources include Costar and m arketing package.

The table below summarizes the adjustments.

Subject Sale 1 Sale 2 Sale 3
Address/Location 112-132 South
6th Street
4641-4655 E.
3rd Street
1040 N
Unruh Ave
2704-2728
Santa Anita
Avenue
Montebello,
CA 90640
Los Angeles,
CA 90022
La Puente,
CA 91744
El Monte, CA
91733
Sale P r ic e $2,826,120 $3,000,000 $2,330,000
Price per Unit $36,232 $40,541 $58,250
Comparison Comparison Adj. Comparison Adj.

Property Rights Fee Simple Fee Simple Fee Simple
Adjusted Price Per Unit $36,232 $40,541 $58,250
Terms Yes Yes Yes
Adjusted Price Per Unit $36,232 $40,541 $58,250
Sale Conditions Ma rke t Ma rke t Ma rke t
Adjusted Price Per Unit $36,232 $40,541 $58,250
Sale Date Jun-21 Jul-19 10% Mar-18 15%
Adjusted Price Per Unit $36,232 $44,595 $66,988
Expenditures After Purchase No No No
Adjusted Price Per Unit $36,232 $44,595 $66,988
Physical Characteristics Comparison Comparison Adj. Comparison Adj. Comparison Adj.

Zoning PD LCC2 LPC2 R3, R1A
Size (A c r es) 0.81 0.52 1.08 5% 1.76 10%
Size (SF ) 35,284 22,651 47,045 76,666
Density 78 150 69 23
Topography Level Level Level Level
Street Paved Paved To Site Paved
Off-site Improv ements To Site To Site To Site To Site
On-site Improv ements None None None Commercial
Buildings
Utilities To Site To Site To Site To Site
Locati on Average Inferior 25% Similar Simiar
Total Physical Adjustment 25% 5% 10%
Adjusted Price Per Unit $45,290 $46,824 $73,686
$45,290
$73,686
$55,267
Land Sale Analysis
Minimum S ale
Maximum S ale
Av erage Sale

Explanation of Adjustments

Market Conditions
Real estate values change over time. The rate of this change fluctuates due to investors’ perceptions and responses to prevailing market conditions. This adjustment category reflects market differences occurring between the effective date of the appraisal and the sale date of comparables, when values have appreciated or depreciated. In this analysis, market cond itions of Montebello County indicate that adjustments for time and market conditions are necessary.

The land sales occurred between March 2018 and June 2021. Nationally and regionally, land values peaked during the prior cycle near 2008, and stalled during the economic recession. During the time period between 2008 and 2012, there were softened market conditions, and declining market values. Appreciation in land values started being report ed in late 2012 and continued to rise through year to date. In terviews with local broker’s rev ealed prices increased on average between five and 10 percent per year during this time frame.

Based on this methodology, Sales 2 and 3 were adjusted 10 and 15 percent, respectively.

Zoning/Density
All of the sales are zoned and approved for multifamily purposes; therefore, no adjustments are necessary. The land valuation is based on a price per allowable unit basis, and the density of allowable units is accounted for when multiplying the price paid per unit times the number of units allowable for the site. No further adjustments are necessary for development density.

Size
Typically, an inverse relationship exists between site size and price per unit indication. The Subject site contains 0.81 acres. Sales 2 and 3 are larger size sites then the Subject and adjusted upward five and 10 percent, respectively. Sale 1 is similarly sized, and no adjustment is warranted.

On-Site Improvements
The opinion of market value represents the site as if vacant. Sales 1 and 2 were vacant at the time of sale and warranted no adjustment. Sale 3 was improved with commercial buildings. No effects on sale price due to demolition costs were reported; therefore, no adjustment was necessary for Sale 3.

Location
The sales are located in the citi es of Los Angeles, La Puente, and El Monte. These areas are comparable locations to the Subject’s location; however, differences do exist. In order to determine a location adjustment, the median contract rent of the Subject’s zip code was compared with the median contract rent of the zip code for each sale. Sale 1 is in an area considered inferior to the Subject’s; therefore, an upward adjustme nt of 25 percent is requ ired. The table below illustrates this analysis.

S al e Zi p Code
Medi an
Contract
Rent
% Difference Matri x
Adjustment
Subject 90640 $1,247 - -
Sale 1 90022 $1,003 24% 25%
Location Adjustment

Summary of Land Value
After adjustments, the comparables range in price from $45,290 to $73,686 per unit, with an average of $55,267 per unit. Greatest weight is placed on Sales 2 and three as they are located in the most similar areas to the Subject’s, and secondary weight is placed on Sale 1. A conclusion of $60,000 per unit or $3,780,000 is considered reasonable and market oriented.

The Subject site is currently developed with a two-unit residential deve lopment (approximately 2,500 square feet), which will be razed prior to construction. The existing improvements are in fair condition and have limited contributory value. The previously determined highest and best use of the site is redevelopment with higher density multifamily development. As such, it is necessary to take in account the costs of demolition and subt racting them from our previous concluded land value to determine the “as is” value of land.

According to the client, demolition costs are estimated to be $20,000. To evaluate if this estimate is reasonable, we have calculated the cost of demolition utilizing the Marshall & Swift Service Handbook. According to the handbook, demolition costs are approximately $5.52 to $8.21 per square-foot for a Class C structure. As such, demolition costs are estimated to be $17,163 utilizing the average demolition cost of $6.87. The client’s estimate of $20,000 appears reasonable, as it is just above our calculation. As such, we have deducted approximately $20,000 from our underlying land value “as if vacant” to account for demolition.

The value indication for the site is below.

# of U nits $/U nit Ind ication
63 $60,000 $3,780,000
Demolition -$20,000
Total $3,760,000
Indication of Value

Marketing/Exposure Time
Marketing Time is defined as the period from the date of initial listing to the settlement date. The projected marketing time for the Subject prop erty will vary greatly, depending upon the aggressiveness of the marketing agent, the met hod of marketing, the market that is targeted, interest rates and the availabil ity of credit at the time the property is marketed, the supply and demand of similar properties for sale or having been recently purchased, and the perceived risks at the time it is marketed.

Discussions with area Realtors indicate that a marketing period of twelve months is reasonable for properties such as the Subject. This is supporte d by data obtained on seve ral of the comparable sales and consistent with in formation obtained from the PWC Real Estate Investor Survey. This estimate assumes a strong advertising and marketing program during the marketing period.

The exposure/marketing time of the subject property is very diff icult to judge in that the buy/sell decision involving investment properties is interrelated with the assumption that the property is priced reasonably and is adequately exposed to the proper market. Marke ting Time differs from Exposure Time in that the estima te of Marketing Time is a proj ection into the fu ture with the associated estimates as to future trends and factors that are likely to impact the market segment in which the subject is participating. In an attempt to forecast Marketing Time, consideration is given to the fact that the sales and opi nions that have been elicited in the estimation of Exposure Time have been formulated during current economic conditi ons that are expected to be very similar in the foreseeable future.

Investment property brokers, inve stors, and sellers familiar with the market, report that the exposure time can range from 30 days to as long as twelve months. This assumes that financing is available and that there are no significant negative items affecti ng the property. Based upon information gathered during the co urse of this assignment it is our opinion that the appropriate estimate of the exposure time is equal to the marketing time for the subject and is estimated at six to twelve months.

ADDENDUM A

Assumptions and Limiting Conditions, Certification

ASSUMPTIONS AND LIMITING CONDITIONS

1. In the event that the client provided a legal description, building plans, title policy and/or survey, etc., the appraiser has relied extensiv ely upon such data in the formulation of all analyses.

2. The legal description as supplied by the client is assumed to be co rrect and the author assumes no responsibility for legal matters, and renders no opi nion of property title, which is assumed to be good and merchantable.

3. All encumbrances, including mortgages, liens, leases, and servitudes, were disregarded in this valuation unless specified in the report. It was recognized, however, that the typical purchaser would likely take advantage of the best available financing, and the effects of such financing on property value were considered.

4. All information contained in the report whic h others furnished was assumed to be true, correct, and reliable. A reasonable effort was made to verify such information, but the author assumes no responsibility for its accuracy.

5. The report was made assumin g responsible ownership and capable management of the property.

6. The sketches, photographs, and other exhibits in this report are solely for the purpose of assisting the reader in visu alizing the property. The author made no property survey, and assumes no liability in connection with such matters. It was also assumed there is no property encroachment or trespass unless noted in the report.

7. The author of this report assumes no responsib ility for hidden or unapparent conditions of the property, subsoil or structures, or the correction of any defects now existing or that may develop in the future. Equipment compone nts were assumed in good working condition unless otherwise stated in this report.

8. It is assumed that there are no hidden or unapparent conditions for the property, subsoil, or structures, which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering, which may be required to discover such factors.

9. The investigation made it reas onable to assume, for report pu rposes, that no insulation or other product banned by the Consumer Product Safety Commission has been introduced into the Subject premises. Visual inspection by the appraiser did not indicate the presence of any hazardous waste. It is suggested the client obtain a professional environmental hazard survey to further define the condition of the Subject soil if they deem necessary.

10. Any distribution of total property value be tween land and improvements applies only under the existing or specified program of property utilization. Separa te valuations for land and buildings must not be used in conjunction wi th any other study or a ppraisal and are invalid if so used.

11. A valuation estimate for a prope rty is made as of a certain day. Due to the principles of change and anticipation the value estimate is only valid as of the date of valuation. The real estate market is non-static and change and mark et anticipation is analyzed as of a specific date in time and is only valid as of the specified date.

12. Possession of the report, or a c opy thereof, does not carry with it the right of publication, nor may it be reproduced in whole or in part, in any manner, by any person, without the prior written consent of the author particularly as to value conclusions, the identity of the author or the firm with which he or she is connected. Neither all nor any part of the report, or copy thereof shall be disseminated to the general public by the use of advertising, public relations, news, sales, or other media for public communication without the prior written consent and approval of the appraiser. Nor shall the apprai ser, firm, or professional organizations of which the appraiser is a member be identified without written consent of the appraiser.

13. Disclosure of the contents of this report is governed by the Bylaws and Regulations of the professional appraisal organizati on with which the appraiser is affiliated: specifically, the Appraisal Institute.

14. The author of this report is not required to give testimony or attendance in legal or other proceedings relative to this report or to th e Subject property unless satisfactory additional arrangements are made prior to the need for such services.

15. The opinions contained in this report are those of the author and no responsibility is accepted by the author for the results of actions taken by others based on information contained herein.

16. Opinions of value contained herein are estima tes. There is no guarantee, written or implied, that the Subject property will sell or lease for the indicated amounts.

17. All applicable zoning and use regulations and restrictions are assumed to have been complied with, unless nonconformity has been stated, defined, and considered in the appraisal report.

18. It is assumed that all required licenses, permits, covenants or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.

19. All general codes, ordinances, regulations or statutes affecting the property have been and will be enforced and the property is not Subject to flood plain or utility restrictions or moratoriums, except as reported to the appraiser and contained in this report.

20. The party for whom this report is prepared has reported to the appraiser there are no original existing condition or development plans that would Subject this property to the regulations of the Securities and Exchange Commission or similar agencies on the state or local level.

21. Unless stated otherwise, no percolation test s have been performed on this property. In making the appraisal, it has been assumed the property is capable of passing such tests so as to be developable to its highest and best use, as detailed in this report.

22. No in-depth inspection was made of existing plumbing (including well and septic), electrical, or heating systems. The appraiser does not warrant the condition or adequacy of such systems.

23. No in-depth inspection of ex isting insulation was made. It is specifically assumed no Urea Formaldehyde Foam Insulation (UFFI), or an y other product banned or discouraged by the Consumer Product Safety Commission has been introduced into the appraised property. The appraiser reserves the right to review and/or modify this appraisal if said insulation exists on the Subject property.

Acceptance of and/or use of this report cons titute acceptance of all assumptions and the above conditions.

CERTIFICATION

The undersigned hereby certify that, to the best of our knowledge and belief:

 The statements of fact contained in this report are true and correct;  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, im partial, and unbiased professional analyses, opinions, conclusions, and recommendations;
 We have no present or prospective interest in the property that is the subject of this report, and we have no personal interest with respect to the parties involved;  We have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment;
 We have not performed consulting assignments involving the Subject in the past three years;  Our engagement in this a ssignment was not contingent upon developing or reporting predetermined results;
 Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal;  Our analyses, opinions, and conclusions were de veloped, and this report has been prepared, in conformity with the requirements of the Co de of Professional Et hics & Standards of Valuation Practice of the Appraisal Institute and USPAP;  Charles Haase, a California Certified General Appraiser, performed a physical inspection of the property and the Subject's neighborhood December 7, 2021. Amanda Baker, MAI did not inspect the Subject site, but did review the report;
 We do not authorize the out of context quoting from or partial reprinting of this market analysis report. Further, neither all nor any part of this repo rt shall be disseminated to the general public by the use of media for public communication without the prior written consent of Kinetic Valuation Group, Inc.;
 The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives;
 As of the date of this report, Amanda Bake r, MAI and Charles Haase have completed the requirements of the continuing education program of the Appraisal Institute.

Amanda Baker, MAI Charles Haase
Appraiser Appraiser
[email protected] [email protected]
(402) 305-1693 (402) 750-1805
Certified General Certified General
CA - 3002360 CA - 3004234
Expiration: 7/14/2022 Expiration: 12/21/2022

ADDENDUM B

Subject Photographs and Information

SUBJECT PHOTOGRAPHS

Subject Subject

Subject Subject

Subject Subject

SUBJECT PHOTOGRAPHS

Subject (existing duplex to be razed) Subject

Subject Subject

Adjacent parking lot Nearby school

SUBJECT PHOTOGRAPHS

Nearby single family home Nearby commercial

Nearby commercial Nearby commercial

South 6th Street traversing north South 6th Street traversing south

ADDENDUM C

Legal Description

ADDENDUM D

Qualifications of Consultants

STATEMENT OF PROFESSIONAL QUALIFICATIONS
JAY A. WORTMANN, MAI
Qualifications of Partners & Key Personnel

STATEMENT OF PROFESSIONAL QUALIFICATIONS
JAY A. WORTMANN, MAI

ASSOCIATION MEMBERSHIPS
Member of the Appraisal Institute with the MAI Designation, No. 519881

STATE CERTIFICATIONS
State of California Certified General Real Estate Appraiser (3001293) State of Hawaii Certified General Real Estate Appraiser (CGA 1146) State of Iowa Certified General Real Estate Appraiser (CG03319) State of Minnesota Certified General Real Estate Appraiser (40392083) State of Missouri Certified General Real Estate Appraiser (2013040219) State of Nebraska Certified General Real Estate Appraiser (CG2014002) State of New Mexico Certified General Real Estate Appraiser (03455-G) State of Oklahoma Certified General Real Estate Appraiser (13111CGA) State of Texas Certified General Real Estate Appraiser (TX 1380393 G) State of South Dakota Certified General Real Estate Appraiser (1527CG) State of Florida Certified General Real Estate Appraiser (RZ4153)

EDUCATION
University of Nebraska, Bachelor of Science in Business Administration with an emphasis in Finance and Management, 2004
All educational requirements successfully completed for the Appraisal Institute MAI designation.

Consortium Institute of Management and Business Analysis (CIMBA) Undergraduate Program, Spring Semester 2004, Paderno del Grappa, Italy

EXPERIENCE
06/2018 to Present Kinetic Valuation Group, President
10/2015 to 06/2018 Lea & Company, President
01/2007 to 10/2015 Lea & Company, Director Midwest Offices 11/2006 to 5/2008 Assumption-Guadalupe Catholic School - South Omaha CORE Development Director 06/2004 to 10/2006 Novogradac & Company LLP, Real Estate Analyst

PROFESSIONAL TRAINING
Appraisal Courses Completed:
x Basic Appraisal Procedures 10/2008
x Basic Appraisal Principles 12/2008
x Income Approach Part I 07/2010
x Income Approach Part II 08/2010
x General Appraiser Sales Comparison Approach 04/2011
x Market Analysis & Highest & Best Use 05/2011
x Real Estate Finance Statistics and Valuation Modeling 08/2011 x Advanced Income Capitalization 09/2011
x General Appraiser Site Valuation & Cost Approach 10/2011 x General Appraiser Report Writing and Case Studies 12/2011

Jay A. Wortmann, MAI-Statement of Professional Qualifications

x National USPAP 15-Hour Course 01/2012
x Nebraska National Appraiser Examination 04/2012
x Advanced Concepts & Case Studies 11/2013
x MAI Comprehensive Exam Module II, III, & IV 04/2014
x MAI Comprehensive Exam Module I 11/2014
x MAI General Demonstration Report-Capstone Program – 11/2014

REAL ESTATE ASSIGNMENTS
A representative sample of various types of projects involved with includes:
x Prepared market studies for proposed Low-Income Housing Tax Credit, market rate, HOME financed, USDA Rural Development, and HUD subsidized properties, on a national basis.

Analysis includes property screenings, market analysis, comparable rent surveys, demand analysis based on the number of income qualified renters in each market, supply analysis, and operating expenses analysis. Property types include proposed multifamily, senior independent living, large family, and acquisition with rehabilitation. x Prepare appraisals of proposed new construction, rehabilitation, and existing Low-Income Housing Tax Credit properties, USDA Rural Development, and market rate multifamily developments. Analysis includes property screenings, valuation analysis, rent comparability studies, expense comparability analysis, determination of market rents, and general market analysis.
x Prepare appraisal work for retail and commercial properties in various parts of the country for various lenders. The client utilized the study for underwriting purposes. x Conducted market studies for projects under the HUD Multifamily Accelerated Processing program.
x Prepare appraisals of proposed new construction properties under the HUD Multifamily Accelerated Processing program.
x Prepare Rent Comparability Studies for expiring Section 8 HAP contracts for subsidized properties located throughout the United States. Engagements included site visits to the subject property, interviewing and inspecting potentially comparable properties, and the analyses of collected data including adjustments to comparable data to determine appropriate adjusted market rents using HUD form 92273.
x Performed all aspects of data collection and data mining for web-based rent reasonableness systems for use by local housing authorities.

Work assignments completed in various states include:

Arizona Kentucky Oklahoma
Arkansas Michigan Pennsylvania
California Minnesota South Carolina
Colorado Mississippi Tennessee
Connecticut Missouri Texas
Florida Montana Utah
Hawaii Nebraska Washington
Idaho New Jersey Wisconsin
Iowa New Mexico Wyoming
Kansas North Dakota

STATEMENT OF PROFESSIONAL QUALIFICATIONS
AMANDA M. BAKER, MAI
I. Professional Affiliation
Member of the Appraisal Institute with the MAI Designation, No. 511086 II. State Certifications
State of Arizona Certified General Real Estate Appraiser (32065) State of California Certified General Real Estate Appraiser (3002360) State of Colorado Certified General Real Estate Appraiser (CG.200000747) State of Kansas Certified General Real Property Appraiser (G-2960) State of Missouri Certified General Real Estate Appraiser (2014021680) State of Nebraska Certified General Real Property Appraiser (CG2016006R) State of Nevada Certified General Real Estate Appraiser (A.0207150-CG) State of Washington Certified General Real Estate Appraiser (1102380) III. Education
University of Nebraska-Omaha, Bachelor of Science in Business Administration -Specialization in Real Estate and Land Use Economics
-Specialization in Marketing
-Secondary Specialization in Economics
IV. Professional Experience
-Vice President-Kinetic Valuation Group, June 2018-Present -Manager-Lea & Company, November 2011-June 2018
-Senior Real Estate Analyst, Novogradac & Company LLP, April 2005–October 2011 V. Professional Training
-MAI General Demonstration Report-Capstone Program July 2016 -2016-2017 National USPAP Update March 2016
-MAI Comprehensive Exam August 2015
-Advanced Market Analysis and Highest & Best Use May 2015 -Advanced Income Capitalization October 2014
-Quantitative Analysis June 2014
-Advanced Concepts & Case Studies May 2014
VI. Real Estate Assignments
A representative sample of Due Diligence and Valuation Engagements includes:
x Prepared market studies for proposed Low-Income Housing Tax Credit, market rate, HOME financed, USDA Rural Development, and HUD subsidized properties, on a national basis.

Analysis includes property screenings, market analysis, comparable rent surveys, demand analysis based on the number of income qualified renters in each market, supply analysis, and operating expenses analysis. Property types include proposed multifamily, senior independent living, large family, and acquisition with rehabilitation. x Prepare appraisals of proposed new construction, rehabilitation, and existing Low-Income Housing Tax Credit properties, USDA Rural Development, and market rate multifamily developments. Analysis includes property screenings, valuation analysis, rent comparability studies, expense comparability analysis, determination of market rents, and general market analysis.

Amanda M. Baker, MAI-Statement of Professional Qualifications

x Prepare appraisal work for retail and commercial properties in various parts of the country for various lenders. The client utilized the study for underwriting purposes. x Conducted market studies for projects under the HUD Multifamily Accelerated Processing program.
x Prepare appraisals of proposed new construction properties under the HUD Multifamily Accelerated Processing program.
x Prepare Rent Comparability Studies for expiring Section 8 HAP contracts for subsidized properties located throughout the United States. Engagements included site visits to the subject property, interviewing and inspecting potentially comparable properties, and the analyses of collected data including adjustments to comparable data to determine appropriate adjusted market rents using HUD form 92273.
x Performed all aspects of data collection and data mining for web-based rent reasonableness systems for use by local housing authorities.

STATEMENT OF PROFESSIONAL QUALIFICATIONS
CHARLES K. HAASE

STATE CERTIFICATIONS
State of California Certified General Real Estate Appraiser (3004234) State of Ohio Certified General Real Estate Appraiser (2017003033) State of Utah Certified General Real Estate Appraiser (10536692-CG00) State of Oklahoma Certified General Real Estate Appraiser (13344CGA)

EDUCATION
University of Nebraska Omaha, Bachelor of Arts in International Studies - Specialization in Global Strategic Studies.

EXPERIENCE
06/2018 to Present - Kinetic Valuation Group, Certified General Real Estate Appraiser 10/2011 to 06/2018 - Lea & Company, Certified General Real Estate Appraiser 06/2009 to 10/2011 - Nebraska Title Company – Escrow Closer/Title Agent/Searcher

PROFESSIONAL TRAINING
Certified General Real Property Appraisal Courses Completed:
x Basic Appraisal Procedures 05/2012
x Basic Appraisal Principles 10/2012
x Statistics, Modeling, and Finance 05/2013
x General Site Valuation and Cost Approach 07/2013
x General Sales Comparison Approach 08/2013
x General Appraiser Income Approach Part I 04/2014
x General Appraiser Market Analysis 08/2014
and Highest & Best Use
x General Appraiser Report Writing and Case Studies 10/2014 x National USPAP 15-Hour Course 11/2014
x Business Practice and Ethics 08/2015
x General Appraiser Income Approach Part II 09/2015
x Advanced Income Capitalization 10/2015
x Advanced Concepts & Case Studies 07/2019
x Advanced Market Analysis and Highest & Best Use 11/2019

REAL ESTATE ASSIGNMENTS
A representative sample of various types of projects involved with includes:
x Prepared market studies for proposed Low-Income Housing Tax Credit, market rate, HOME financed, USDA Rural Development, and HUD subsidized properties, on a national basis.

Analysis includes property screenings, market analysis, comparable rent surveys, demand analysis based on the number of income qualified renters in each market, supply analysis, and operating expenses analysis. Property types include proposed multifamily, senior independent living, large family, and acquisition with rehabilitation. x Prepare appraisals of proposed new construction, rehabilitation, and existing Low-Income Housing Tax Credit properties, USDA Rural Development, and market rate multifamily developments. Analysis includes property screenings, valuation analysis, rent comparability studies, expense comparability analysis, determination of market rents, and general market analysis.
x Prepare Rent Comparability Studies for expiring Section 8 HAP contracts for subsidized properties located throughout the United States. Engagements included site visits to the subject property, interviewing and inspecting potentially comparable properties, and the analyses of collected data including adjustments to comparable data to determine appropriate adjusted market rents using HUD form 92273.
x Performed all aspects of data collection and data mining for web-based rent reasonableness systems for use by local housing authorities.

Work assignments completed in various states include:

Arizona Nebraska
Arkansas New Mexico
California New York
Colorado North Dakota
Florida Ohio
Hawaii Oklahoma
Iowa Oregon
Kansas Pennsylvania
Michigan Texas
Missouri Utah
Minnesota West Virginia
Montana Washington
Nevada Wisconsin
Wyoming

Appraisal Of

121 S 6th Street
Montebello, CA 90640
APN: 6349-006-900

Effective Date: December 7, 2021

Report Date: January 14, 2022

Mr. Steve Hernandez

Cesar Chavez Foundation

316 W. 2nd Street, Suite 600
Los Angeles, CA 90012

KINETIC VALUATION GROUP, INC.

Midwest Omaha Southern California
11060 Oak Street Suite 6 PO Box 68
Omaha, Nebraska Corona Del Mar, California
(402) 202-0771 (818) 914-1892

ATTACHMENT E

January 14, 2022

Mr. Steve Hernandez
Cesar Chavez Foundation
316 W. 2nd Street, Suite 600
Los Angeles, CA 90012

Re: Appraisal of
121 S 6th Street
Montebello, CA 90640
APN: 6349-006-900

Dear Mr. Hernandez:

We are pleased to present our findings with respect to the value of the above-referenced property.

The intended user and client of this report is Cesar Chavez Foundation and their assigns. Additional intended users include the California Tax Cred it Allocation Committee (TCAC)/California Debt Limits Allocation Committee (CDLAC), Department of Housing and Community Development (HCD), Los Angeles County Development Authority, and any other funding agencies, partnerships formed, and/or lenders. The intended use of the appraisal is for inve stment analysis. Neither this report nor any portion thereof may be used for any other purpose or distributed to third parties without our express written consent.

This valuation engagement was conducted in accordance with the Code of Professional Ethics and Standards of Valuation Practice of the Apprai sal Institute, and the Uniform Standards of Professional Appraisal Practice (USPA P). In accordance with these standards, we have reported our findings herein in an appraisal report as defined by USPAP.

Our value conclusions were based on general econom ic conditions as they existed on the date of the analysis and did not include an estimate of the potential impact of any sudden or sharp rise or decline in general economic conditions from that date to the effective date of our report. Events or transactions that may have occurred subsequent to the effective date of our opinion have not been considered. We are not responsible to update or revise this report based on such subsequent events, although we would be pleased to discuss with you the need for revisions that may be occasioned as a result of changes that occur after the valuation date.

As a result of our investigation and analysis, it is our opinion that subject to the limiting conditions and assumptions contained herein, our opinion of the market value of the fee simple interest in the Subject, free and clear of financing, as of December 7, 2021, is:

FOUR HUNDRED TWENTYTHOUSAND DOLLARS
$420,000

We appreciate this opportunity to be of service. Please contact us if you have any comments or questions.

Respectfully submitted,

K
INETIC VALUATION GROUP, INC.

Amanda Baker, MAI Charles Haase
Appraiser Appraiser
[email protected] [email protected]
(402) 305-1693 (402) 750-1805
Certified General Certified General
CA - 3002360 CA - 3004234
Expiration: 7/14/2022 Expiration: 12/21/2022

TABLE OF CONTENTS

FACTUAL DESCRIPTION ....................................................................................................................................... 1 REGIONAL AND LOCAL AREA ANALYSIS ....................................................................................................... 4 MARKET AREA ECONOMY ................................................................................................................................... 9 POPULATION & HOUSEHOLD TRENDS ........................................................................................................... 16 NEIGHBORHOOD ANALYSIS .............................................................................................................................. 21 HIGHEST AND BEST USE ANALYSIS ................................................................................................................ 30 APPRAISAL METHODOLOGY ............................................................................................................................ 31 LAND VALUATION ................................................................................................................ ................................ 31

ADDENDA

FACTUAL DESCRIPTION

Property Identification
The property appraised is located at the 121 S 6th Street , identified as Assessor’s Parcel Number 6349-006-900, located in Montebello, Los Angeles County, CA. The site area is 0.14 acres and is currently vacant. The developer does not have a proposed use of the site at this time. Photos of the Subject have been included in the Addenda.

Intended Use and Intended Users of Appraisal
The intended user and client of this report is Cesar Chavez Foundation and their assigns. Additional intended users include the California Tax Cred it Allocation Committee (TCAC)/California Debt Limits Allocation Committee (CDLAC), Department of Housing and Community Development (HCD), Los Angeles County Development Authority, and any other funding agencies, partnerships formed, and/or lenders. The intended use of the appraisal is for investment analysis.

Compliance and Competency Provision
We are aware of the compliance and competen cy provisions of USPAP, and within our understanding of those provisions, this report complies with all mandatory requirements, and the authors of this report possess the education, knowledge, technical skills, and practical experience to complete this assignment competently, in conformance with the stated regulations.

Unavailability of Information
In general, all information necessary to develop an estimate of value of the Subject property was available to the appraisers.

Legal Description
Included in the Addenda.

Property Interest Appraised
The property interest appraised is the fee simple estate.

Market value is defined as:

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each ac ting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of sale as of a specified date and the passing of titl e from seller to buyer under conditions whereby:

1. Buyer and seller are typically motivated;

2. Both parties are well informed or well advised and acting in what they consider their best interest;

3. A reasonable time is allowed for exposure in the open market;

4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and,

5. The price represents normal c onsiderations for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 1

1 6th Edition of The Dictionary of Real Estate Appraisal.

Date of Inspection and Effective Date of Appraisal
The Subject was inspected and photographed on December 7, 2021. This sh all be the effective date of the appraisal.

Scope of Appraisal
As part of this appraisal, we have completed the following steps to gather, confirm, and analyze the data.
 Charles Haase, a California Certified General Appraiser, performed a physical inspection of the property and the Subject's neighborhood December 7, 2021.  The identification of the property to be appraised is based on information provided by the client and public records data.
 Regional, city, and county data were ba sed on information obtained from newspaper articles, city of Montebello, Los Angeles County, ESRI Demographics, the Bureau of Labor Statistics, and other res ources available to the apprai ser. This was performed by Christian Jones.
 Data collection and analysis of market conditions currently affec ting the county’s real estate market on a national and regional leve l was conducted. This included, but was not limited to, the review and analysis of data pe rtaining to supply and demand for real estate properties, availability of financing and current financing terms, current interest and yield rates, buyer preferences, and economic forecasts. This was performed by Charles Haase.  The research for land sales and listings included Montebello and the surrounding area, from 2018 to the present. The market data was collect ed from the appraiser’s office files, other appraisers, Realtors, newspapers articles, CoStar, title companies, LoopNet, and public records. This was performed by Charles Haase.
 The information gathered from these surveys and investigations was then analyzed, and comparisons were made to the property. The valuation process included the sales comparison approach.
 Amanda Baker, MAI reviewed the report but did not inspect the Subject site.

Ownership and History of Subject
Ownership of the site is vested in The SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MONTEBELLO, a California successor agency created and existing pursuant to California Health & Safety Code section 34170 et seq. (“Successor Agency.”) Th ere is an Exclusive Negotiation Agreement between the Successor Agency and the Cesa r Chavez Foundation, a California Nonprofit Corporation and any of its affiliates (CCF) in order to purchase the parcel valued in this appraisal.

The price is to be determined from this appraisal. We are aware of no transfers of the parcel in the past three years and it is not currently exposed to the market.

REGIONAL AND LOCAL AREA ANALYSIS
The Subject is located in the northern portion of Montebello, California. Located in the southwestern section of the San Gabriel Valley, Montebello has a total area of eight square miles.

Montebello is positioned eight miles east of dow ntown Los Angeles in Los Angeles County. As of the 2010 census, the population was 62,500 people.

Los Angeles is the second most populous city in the United States with a population of 3.83 million within its administr ative limits which consists of a land area of 498.3 sq uare miles. The greater Los Angeles area extends beyond the administra tive city limits with a population of over 14.8 million making it the 14th largest urban area in the world. The Los Angeles–Long Beach–Santa Ana metropolitan statistical area (MSA), which c onsists of Los Angeles and Orange counties, is home to nearly 12.9 million resi dents while the broader Los Angeles-Long Beach-Riverside combined statistical area (CSA) contains nearly 17.8 million people. Los Angeles is also the seat of Los Angeles County, the most populated county in the United States.

Transportation
Highway: The Greater Los Angeles area are served by a vast highway and interstate system.

The following information describes the most notable roadways in the vicinity of Montebello.

Interstate 405, a bypass of In terstate 5, is a major north/south route running along the western and southern parts of the Greater Los Angeles Area from Irvine in the south to near San Fernando in the north. The entire route is known as the northern segment of the San Diego Freeway. In terstate 405 is a heavily traveled thoroughfare by both commuters and by freight haulers along its entire length and is the busiest and most congested freeway in the United States.

California State Route 60 is a major east/west route that runs along northern Montebello. The route branches off of In terstate 5 and traverses west where it eventually joins Interstate 10 in Beaumont.

California State Route 19 is a major route running north/south and runs on the east side of Montebello. The route starts in Long Beach and runs north where it merges with California State Route 164 east of Montebello in Pico Rivera. The route serves and gives access to the southern portion of the Los Angeles Metropolitan Area.

Interstate 605, a major route running north /south, serves the central portion of the Los Angeles Metropolitan Area. Interstate 605 starts in Los Alamitos and runts north through the Los Angeles region.

Interstate 5 is a major northeast/southwest traversing route running up the coast and through western California. The route starts at the United States and Mexico border and ends at the United States and Cana da border in Washington. Interstate 5 runs on the south side of Montebello and serves the central portion of the Los Angeles Metropolitan Area.

Interstate 10 is a majo r east/west route running east from Santa Monica, on the Pacific Ocean, through Los Angeles and San Bernardino to the border with Arizona. In the greater Los Angeles area, it is known as the Santa Monica Freeway and the San Bernardino Freeway, linked by a short concurrency on Interstate 5 (the Golden State Freeway) at the East Los Angeles Interchange. The highway is located approximately 5.2 miles north of the Subject.

Air: Los Angeles Internat ional Airport (LAX) is located approximately 16 miles southwest of the Subject. LAX is the fifth busiest airport in the world and second busiest in the United States, offering 692 daily flights to 85 domestic cities and 928 weekly nonstop flights to 67 cities in 34 countries on 59 passenger air carriers.

Public Transportation
The Los Angeles County Metropolitan Transportati on Authority operates bus lines, as well as subway and light rail lines across Los Angeles County, with a combined monthly ridership of 38.8 million. The bus system includes nearly 16,000 stops throughout 170 routes covering a 1,433 square mile service area. The rail system includes eight stations covering 87 miles of service that include four light rail lines and two subway lines . The nearest bus stop is located approximately

0.03 miles from the Subject.

Healthcare
The closest hospital is the Beverly Community Hospital located ap proximately 0.50 miles northeast of the Subject. Be verly Community Hospital a 224-be d acute care hosp ital offering comprehensive healthcare including an emergenc y department, cardiology, pediatrics, surgery, and orthopedic services among others.

Education
The Subject is located in the Montebello Unified School District. The Montebello Unified School District serves more than 29,000 students in pre-school through grade 12. Students who reside at the Subject will be zoned to attend Fremont Elementary School, Montebello Intermediate School, and Montebello High School which are located between 0.36 miles and 1.09 miles from the Subject.

DELINEATION OF MARKET AREA

Primary and Secondary Market Area
For the purpose of this study, it is necessary to define the mark et area, or the area from which potential tenants for the projec t are likely to be drawn. In so me areas, residents are very “neighborhood oriented” and are generally very reluctant to move from the area where they have grown up. In other areas, residents are much more mobile and will relocat e to a completely new area, especially if there is an attraction such as affordable hous ing at below market rents. The Subject is located in the southern portion of Montebello, a city in within Los Angeles County that abuts the city of Los Angeles on its eastern a nd western boundaries. The Primary Market Area consists primarily of the Southeast Los Angele s Submarket as defined by CoStar. The area encompasses the cities of Montebello, Pico Ri vera, Monterey Park, an d South El Monte, and portions of the cities of El Monte, Whittier, Norwalk, and the unincorporated area of East Los Angeles. The general PMA boundaries for the Subject are defined as follows:

North – Interstate 10
South – Imperial Highway
East – Interstate 605/Highway 60/South Hacienda Blvd/Colima Rd West – Interstate 5/Interstate 710

The PMA boundaries and overall market health assessment are based upon an analysis of demographic and socioeconomic char acteristics, target tenant popul ation, political jurisdictional boundaries, natural boundaries, experi ence of nearby comparable developments, acce ssibility to mass transit or key transportation corridors and commute patterns, and market perceptions as well as surveys of existing market rate and affordable apartment projects undertaken by Kinetic Valuation Group, Inc., and insights gained from resident managers, area planning staff, and others familiar with the multifamily market. We recogni ze a smaller sub-market may exist within this PMA; however, market data demonstrates that a significant amount of the renter base considers housing opportunities within this defined area. Given the opportunity to lo cate good quality affordable housing, the renter ba se will move within these areas. We anticipate th e majority of demand will be generated from this geographic area. However, some leakage would be anticipated from outside the PMA from other parts of Los Angeles County.

There are no natural boundaries in Montebello or Los Angeles County that would inhibit anyone from relocating to the Subject. The market area boundaries identified are a reasonable approximation regarding the potential renter mark et for the Subject. Both market rate and affordable rental housing of all types is in strong demand. Rental housing in the PMA appears to be stable, with low vacancy rates.

The secondary market area (SMA) for the Subject is the Los Angeles-Long Beach-Anaheim MSA.

Maps outlining the PMA and SMA can be found on the following page.

PMA

Subject

SMA

MARKET AREA ECONOMY
The following discussion includes an analysis of the local economy. This section will present and analyze information regarding employment by industry, the major employers, and unemployment trends. Information was provided, where available, for the Subject’s PMA. We obtained economic information from the Bureau of Labor Statistics, city of Montebello, ESRI Demographics, and the Montebello Chamber of Commerce. These data sources are considered to be the most reliable and current.

Employment by Industry
The following charts illustrate the distribution of employment sectors by industry within the PMA and SMA.

Source: ESRI Demographics

0.4%

7.0%

12.3%

5.1%

10.8%

9.0%

1.7%

5.4%

43.6%

4.7%
2021 Employed Population 16+ by Industry - PMA
Agriculture/Mining 0.4%
Construction 7.0%
Manufacturing 12.3%
Wholesale Trade 5.1%
Retail Trade 10.8%
Transportation/Utilities 9.0%
Information 1.7%
Finance/Insurance/Real Estate 5.4%
Services 43.6%
Public Administration 4.7%

The largest employment sector in the PMA is the service sector with 43.6 percent, followed by the manufacturing sector with 12.3 percent and the retail trade sector with 10.8 percent.

Source: ESRI Demographics

0.5%

6.5%

9.8%

3.2%

9.9%

6.2%

3.7%

7.1%

49.7%

3.6%
2021 Employed Population 16+ by Industry - SMA
Agriculture/Mining 0.5%
Construction 6.5%
Manufacturing 9.8%
Wholesale Trade 3.2%
Retail Trade 9.9%
Transportation/Utilities 6.2%
Information 3.7%
Finance/Insurance/Real Estate 7.1%
Services 49.7%
Public Administration 3.6%

The largest employment sector in the SMA is the service sector with 49.7 percent, followed by the retail trade sector with 9.9 percent and the manufacturing sector with 9.8 percent.

Major Employers
The following chart identifies the major employers in Los Angeles County in 2021.

Employer Location Industry
AHMC Healthcare Inc Alhambra Health Care Management
All Nations Church Sylm ar Churches
California State Univ NRTHRDG Northridge Schools-Universities & Colleges Academ ic Cedars-Sinai Health System West Hollywood Health Care Managem ent Kaiser Perm anente Los Angeles Los Angeles Hospitals
Lac Usc Medical Ctr Los Angeles Hospitals
Live Nation Los Angeles Entertainm ent Bureaus
Long Beach City Hall Long Beach City Hall
Longshore Dispatch Wilm ington Nonclassified Establishm ents Los Angeles County Sheriff Monterey Park G overnm ent Offices-County Los Angeles Intl Airport-Lax Los Angeles Airports
Los Angeles Medical Ctr Los Angeles Pathologists
Los Angeles Police Dept Los Angeles Police Departm ents National Institutes of Health Pasadena Physicians & Surgeons Security Industry Specialist Culver City Security System s Consultants Six Flags Magic Mountain V alencia Amusement & Theme Parks Sony Pictures Entertainm ent Culver City Motion Picture Producers & Studios Space Ex ploration Tech Corp Hawthorne Aerospace Industries (mfrs) Twentieth Century Fox Los Angeles Motion Picture Producers & Studios UCLA Com m unity Based Learning Los Angeles Junior-Com m unity College-Tech Institutes University of Ca Los Angeles Los Angeles Schools-Universities & Colleges Academ ic University of Ca Los Angeles Los Angeles University-College Dept/Facility/Office V ision X Los Angeles Call Centers
Walt Disney Co Burbank Water Parks
Water G arden Managem ent Santa Monica Office Buildings & Parks Source: CA EDD
Los Angeles County, CA M ajor E mp loyers - 2021

Workforce and Unemployment Trends
The table below illustrates the workforce and unemployment trends for the city of Montebello and Los Angeles County.

Ye ar Total Labor
Force
Total
Empl oyme nt
Une mpl oyme nt
Rate (% )
(% )
Change
Total Labor
Force
Total
Empl oyme nt
U nemployment
Rate (% )
(% )
Change
2010 28,130 25,075 10.9 - 4,940,672 4,318,722 12.6 -
2011 28,193 25,221 10.5 -0.4 4,941,667 4,337,370 12.2 -0.4 2012 27,975 25,329 9.5 -1.0 4,904,883 4,365,690 11.0 -1.2 2013 28,226 25,857 8.4 -1.1 4,955,806 4,471,400 9.8 -1.2 2014 28,359 26,358 7.1 -1.3 4,982,412 4,572,171 8.2 -1.6 2015 28,224 26,611 5.7 -1.4 4,973,756 4,641,054 6.7 -1.5 2016 28,708 27,079 5.7 0.0 5,018,920 4,751,209 5.3 -1.4 2017 28,995 27,474 5.2 -0.5 5,088,898 4,843,694 4.8 -0.5 2018 28,919 27,464 5.0 -0.2 5,094,301 4,857,330 4.7 -0.1 2019 28,959 27,523 5.0 0.0 5,122,843 4,888,581 4.6 -0.1 2020 28,022 24,163 13.8 8.8 4,921,499 4,291,688 12.8 8.2 2021 YTD 28,585 26,083 8.8 -5.0 5,027,344 4,632,805 7.8 -5.0 Source: Bureau of Labor Statistics
U nemployment Trends - 2010-2021 Y TD
Montebello, CA Los Angeles County, CA

The unemployment rate in Montebello has fl uctuated between 5.0 and 13.8 percent from 2010 through 2021 year to date. From 2009 to 2019 the unemployment rate declined to a decade low of

5.0 percent. Due to the COVID-19 pandemic unemployment rose to 13.8 percent in 2020. As the economy has recovered throughout 2021 the unemployment rate has declined to 8.8 percent. The county follows a similar trend.

Below we have compared the city, MSA, state, and national unemployment rates over the past 24 months.

Source: Bureau of Labor Statistics
2 4
6 8
10 12
14 16
18 20
22 Monthly Unemployment Rate Oct 19 to Oct 21
Montebello, CA
Los Angeles
County, CA
State of California
National

The city, county, and state have remained consistently above the national unemployment rate over the past 24 months. Unemployment spiked in April 2020 but began to steadily decline beginning in May 2020.

Employment Trends
The following table illustrates the employment trends in Montebello and Los Angeles County from 2010 to 2021 year to date.

Ye ar
Total
Employment
Percentage
Growth
Total
Employment
Percentage
Growth
2010 25,075 - 4,318,722 -
2011 25,221 0.6% 4,337,370 0.4%
2012 25,329 0.4% 4,365,690 0.7%
2013 25,857 2.1% 4,471,400 2.4%
2014 26,358 1.9% 4,572,171 2.3%
2015 26,611 1.0% 4,641,054 1.5%
2016 27,079 1.8% 4,751,209 2.4%
2017 27,474 1.5% 4,843,694 1.9%
2018 27,464 0.0% 4,857,330 0.3%
2019 27,523 0.2% 4,888,581 0.6%
2020 24,163 -12.2% 4,291,688 -12.2%
2021 YTD 26,083 7.9% 4,632,805 7.9%
Source: Bureau of Labor Statistics
E mp loyment Trend s - 2010 - 2021 Y TD
Montebello, CA Los Angeles County, CA

The employment level in Montebello and the county has increased every year since 2011, with the exception of 2020. Employment decreased in 2020 due to the COVID-19 pandemic, but as the economy has begun to recover in 2021 year-to-date, employment has risen 7.9 percent.

Commuting Patterns
The chart below shows the travel time to work for the PMA according to ESRI data.

Source: ESRI Demographics
1%
5% 10%
14%
13%
6%18%
3%
5%
12%
10%
3%
Average Travel Time to W ork
Less than 5 minutes 1%
5 to 9 minutes 5%
10 to 14 minutes 10%
15 to 19 minutes 14%
20 to 24 minutes 13%
25 to 29 minutes 6%
30 to 34 minutes 18%
35 to 39 minutes 3%
40 to 44 minutes 5%
45 to 59 minutes 12%

Approximately 67 percent of persons in the PMA have a commute time of less than 35 minutes indicating a majority of the persons in the PMA commute to work in nearby areas.

Wages by Occupation
The chart below shows the wages by occupation for the Los Angeles-Long Beach-Anaheim, CA MSA.

Occupational Title
Number of
E mployees
Average Hourly
Wage
Average
Annual Wage
All Occupations 5,822,510 $30.61 $63,660
Managem ent Occupations 369,510 $67.37 $140,130
Business and Financial Operations Occupations 389,820 $40.94 $85,160 Computer and Mathematical Occupations 174,170 $48.51 $100,900 Architecture and Engineering Occupations 107,080 $49.00 $101,910 Life, Physical, and Social Science Occupations 48,800 $43.50 $90,480 Com m unity and Social Service Occupations 120,690 $29.75 $61,880 Legal Occupations 61,240 $66.29 $137,890
Educational Instruction and Library Occupations 336,630 $35.35 $73,530 Arts, Design, Entertainm ent, Sports, and Media Occupations 163,890 $41.65 $86,620 Healthcare Practitioners and Technical Occupations 299,200 $49.27 $102,480 Healthcare Support Occupations 374,240 $16.44 $34,190
Protective Service Occupations 148,980 $30.29 $63,010
Food Preparation and Serving Related Occupations 482,270 $15.45 $32,140 Building and G rounds Cleaning and Maintenance Occupations 152,960 $18.32 $38,110 Personal Care and Service Occupations 114,380 $18.59 $38,660 Sales and Related Occupations 524,510 $23.62 $49,140
Office and Adm inistrative Support Occupations 787,770 $22.68 $47,170 Farm ing, Fishing, and Forestry Occupations 4,930 $17.31 $36,010 Construction and Ex traction Occupations 193,300 $30.58 $63,600 Installation, Maintenance, and Repair Occupations 165,140 $28.18 $58,610 Production Occupations 320,810 $20.09 $41,780
Transportation and Material Moving Occupations 482,170 $20.23 $42,080 Source: Bureau of Labor Statistics
Wage b y Occup ation - Los Angeles-Long Beach-Anaheim, CA M SA - 2020

The above chart shows average hourly and annual wages by employment classification. The classification with the lowest average hourly wage was food preparation and serving related occupations, at $15.45 per hour. The highest average hourly wage of $67.37 was for management occupations.

Conclusion
The Subject’s neighborhood, city of Montebe llo, and Los Angeles County include many employment options for area residents. Numerous busine sses offering a range of positions and skill levels exist within close proximity to the Subject. The wage rates within the area demonstrate a significant pool of potential tenants exist for affordable housing developments.

POPULATION & HOUSEHOLD TRENDS

In this section, we compare population, household and income trends in the PMA and SMA. All information is provided to us by ESRI Demogr aphics, which is a national proprietary data provider. Some tables reflect rounding from the data provided, however, it is nominal. The data is presented for the primary market area and seco ndary market area in which the development is located.

Total Population
The charts below illustrate total population in the PMA and SMA from 2021 through 2026.

Source: ESRI Demographics
570,000
572,000
574,000
576,000
578,000
580,000
582,000
2010 2021 2026
Total Population - PMA 574,415 580,588 580,469
Total Population - PMA

Source: ESRI Demographics
12,400,000
12,600,000
12,800,000
13,000,000
13,200,000
13,400,000
13,600,000
2010 2021 2026
Total Population - SMA 12,828,837 13,303,870 13,505,465 Total Population - SMA

The population within the PMA has continuously grown from 2010 to 2021 a nd is expected to decrease slightly through 2026. The SMA is considered an area of growth, as it is expected to increase through 2026.

Population by Age Group
The tables below illustrate population by age group in the PMA and SMA from 2010 through 2026.

Age Cohort 2010 2021 2026
0 - 4 39,091 36,671 36,219
5 - 9 39,445 37,906 35,237
10 - 14 43,167 38,330 37,993
15 - 19 46,804 38,878 36,356
20 - 24 42,835 40,930 37,485
25 - 34 79,994 92,595 86,080
35 - 44 81,395 76,739 84,296
45 - 54 76,018 70,324 70,222
55 - 64 57,412 63,800 63,618
65 - 74 34,273 47,589 51,113
75 - 84 24,014 25,389 29,802
85+ 9,968 11,436 12,050
Total 574,415 580,588 580,469
Age Cohort 2010 2021 2026
0 - 4 837,484 785,996 799,703
5 - 9 832,459 809,413 773,793
10 - 14 889,040 833,110 805,315
15 - 19 981,319 852,307 811,751
20 - 24 966,389 939,865 876,338
25 - 34 1,889,259 2,125,390 2,100,007
35 - 44 1,869,369 1,803,884 1,979,363
45 - 54 1,813,132 1,651,621 1,624,291
55 - 64 1,335,010 1,566,100 1,540,283
65 - 74 755,924 1,124,746 1,230,081
75 - 84 458,306 570,565 701,770
85+ 201,146 240,873 262,770
Total 12,828,837 13,303,870 13,505,465
Source: ESRI Demographics
PMA
Popul ati on by Ag e Group
SM A
Popul ati on by Ag e Group

In the PMA, population appears to be the greatest in the 25 to 54-year age group during 2021.

Number of Elderly and Non-elderly
The table below is an illustration of the elderly and non-elderly population.

Ye ar Total
Population Non-E lderly E lderly (55+) Total
Population Non-E lderly E lderly (55+)
2010 574,415 448,748 125,667 12,828,837 10,078,451 2,750,386 2021 580,588 432,374 148,214 13,303,870 9,801,586 3,502,284 2026 580,469 423,886 156,583 13,505,465 9,770,561 3,734,904 Source: ESRI Demographics
Number of E lderly and Non-El derly

PMA SM A

Within the PMA, population is greatest in the non-elderly population, those aged 54 or under. In 2021, the elderly population was approximately 25.5 percent of the total population in the PMA.

Within the SMA, the elderly population also comprised 26.3 percent of total population in 2021.

Total Number of Households
The charts below illustrate the total number of households in the PMA and SMA.

Source: ESRI Demographics
160,000
160,500
161,000
161,500
162,000
162,500
2010 2021 2026
Total Number of Households 161,060 162,447 161,897
Total Household - PMA

Source: ESRI Demographics
4,100,000
4,150,000
4,200,000
4,250,000
4,300,000
4,350,000
4,400,000
4,450,000
2010 2021 2026
Total Number of Households 4,233,985 4,376,140 4,439,661 Total Household - SMA

Similar to the growth in popul ation in both the PMA and SMA, growth in the number of households is expected to decrease between 2010 and 2026.

Total Household by Tenure
The table below illustrates total households by tenure for the total population in the PMA and SMA.

Number Percentage Number Percentage Number Percentage Number Percentage 2010 87,662 54.4% 73,398 45.6% 2,133,062 50.4% 2,100,923 49.6% 2021 86,367 53.2% 76,081 46.8% 2,127,490 48.6% 2,248,650 51.4% 2026 86,702 53.6% 75,195 46.4% 2,149,662 48.4% 2,289,999 51.6% Source: ESRI Demographics
Tenure Patterns - Total Population
Year

PMA SMA
Owner-Occupied Units Renter-Occupied U nits Ow ner-Occupied U nits Renter-Occupied Units

As indicated, the total number of renter-occ upied housing units within the PMA during 2021 is

46.8 percent. This number is projected to increase slightly through 2026. Comparatively, the total number of renter-occupied households within the SMA during 2021 is higher, at 51.4 percent.

Average Household Size
The table below illustrates average household size.

Number Annual
Change Number Annual
Change
2010 3.57 - 3.03 -
2021 3.57 0.02% 3.04 0.03%
2026 3.59 0.06% 3.04 0.01%
Source: ESRI Demographics
Av erage Household Size
Ye ar

PMA SMA

Average household size in the PMA during 2021 was 3.57 persons; this is projected to increase slightly through 2026. Comparison to the SMA average household size of 3.04 indicates a smaller household size in the SMA than the PMA.

Median Household Income Levels
The table below illustrates the median household income in the PMA and SMA from 2021 through 2026.

Amount Annual
Change Amount Annual
Change
2021 $65,132 - $78,908 -
2026 $75,394 3.2% $89,775 2.8%
Median Household Income
Ye ar

PMA SMA

Median household income in the PMA is projected to increase 3.2 percent between 2021 and 2026, which is larger than the expected change in the SMA of 2.8 percent.

Conclusion
Total population and households are projected to slightly decrease in the PMA through 2026; however, both are projected to increase in the SMA. Additionally, the median household income in both the PMA and SMA is anticipated to increase through 2026.

NEIGHBORHOOD ANALYSIS

The neighborhood surrounding an apartment property often impacts the prope rty's status, image, class, and style of operation, and sometimes its ability to attract and properly serve a particular market segment. This section investigates the property's neighborhood and evaluates any pertinent location factors that could affect its rent, its occupancy, and overall profitability.

As defined by the Los Angeles Times, the Subject is located in the southeast portion of the Los Angeles Metropolitan Area within Montebello. The city consists of approximately 8.45 square miles and is located south of Monterey Park and northwest of Pico Rivera. As of the 2010 census the population was 62,500. The area is generally bounded by Highway 60 to the north, Interstate 5 to the South, the Rio Hondo Channel to the east, and Garfield Avenue to the west. The map below illustrates the Subject’s location within Montebello.

Access and Traffic Flow
Access to the site is from the west side of Sixth Street. Seventeenth Street is a two-lane north/south neighborhood connector street that provides access to Whittier Boulevard to the north. Whittier Boulevard is a four-lane thoroughfare traver sing east/west through the southern portion of Montebello providing access to Interstate 710 to the west and Interstate 605 to the east.

Visibility/Views
The site will have good visibility from the west side of Sixth Street and the north side of Commercial Street. The Subject is located in a mixed-use neighborhood. To the north consist of mixed-use commercial buildings in average condition. Views to the east, west, and south consist of mixed-use commercial buildings, single-family homes, and multifamily homes, all in average condition.

Location Map
The map below illustrates the Subject and surrounding neighborhood.

Subject

Locational Amenities & Map - Overview
The map and table below illustrate the location amenities in relation to the Subject’s site.

M ap # Name Serv ice Distance
1 Bus Stop Transportation 0.03 m iles
2 First Church of the Nazarene Church 0.09 miles
3 Alvarado Market G rocery Store 0.10 miles
4 United States Postal Service Post Office 0.13 miles
5 Montebello Pharmacy Pharmacy 0.20 miles
6 Fremont Elementary School Education 0.36 miles
7 Beverly Hospital Hospital 0.50 miles
8 Montebello City Park Recreation 0.53 miles
9 Montebello Interm ediate School Education 0.74 m iles 10 U.S. Bank Bank 0.94 miles
11 Montebello Library Library 0.98 miles
12 Montebello High School Education 1.09 m iles
13 ARCO Gas Station 1.38 miles
Distance From Local Serv ices

Crime Statistics
The following crime data is provided by Neighborhood Scout.

After inspection and observation of the Subject’s neighborhood, we do not anticipate the overall crime statistics will affect the marketability for the Subject.

Summary
The site is located in the southern portion of the city of Montebello. All major shopping, transportation, and recreational amenities are located within a short distance of the Subject. Access to groceries, pharmacy and shopping is convenient, and within reasonable distance.

PROJECT DESCRIPTION
Our description of the Subject is based upon in formation provided by the developer and the property inspection. We assume the information supplied is accurate.

Site Description

Site Location: The Subject is located at th e 121 S 6th Street, Montebello, Los Angeles County, CA. The site is located in Census Tract 5321.01.

Existing Improvements: The Subject currently is vacant.

Size/Shape: The site contains 0.14 acres or 6,057 square feet, and is rectangular in shape.

Topography: The site topography is generally level.

Vegetation: The site has no notable vegetation.

Proximity to Adverse
Conditions: At this time, we are unaware of any detrimental influences that would impact on the value of the Subject.

Drainage: Appears adequate, however no specific tests were performed.

Soil and Subsoil Conditions: We were not provided with soil surveys.

Environmental: We did not observe any obvious environmental hazards during the site inspection. However, we are not experts within this field.

Zoning: The Subject is zoned C-2, General Commercial. According to the City of Montebello C ode of Ordinances, “The C-2 zone is established to provide for business centers in areas where a wide range of retail sales and service establishments are needed to accommodate the surrounding community.

Uses permitted in the general commercial (C-2) zone shall generally be those with higher traffic and longer hours such as retail sales, medical and professional offices, general office, as well as service stations and automobile sales yards subject to conditional use permits.”

Flood Plain: According to the Flood Insights Map Number 06073C1663F, dated September 26, 2008, the Subject is
located in Zone X. This zone is determined to be an area outside of the 100-year flood.

Photographs: Subject photos are included in the Addenda.

Location Map: The map below illustrates the location of the Subject.

Subject

HIGHEST AND BEST USE ANALYSIS

HIGHEST AND BEST USE AS VACANT

Physically Possible
The Subject site consists of approximately 0.14 acres or 6,057 square feet. The site is a rectangular shaped parcel with generally level topography. Accessibility and visibility are considered good.

The site is considered adequate for a variety of physically possible uses.

Legally Permissible
The Subject is zoned C-2, General Commercial. A ccording to the City of Montebello Code of Ordinances, “The C-2 zone is established to provide for business centers in areas where a wide range of retail sales and service establishmen ts are needed to accommodate the surrounding community. Uses permitted in the general commerci al (C-2) zone shall ge nerally be those with higher traffic and longer hours such as retail sales, medical and professional offices, general office, as well as service stations and automobile sales yards subject to conditional use permits.” A variety of commercial uses would be considered legally permissible and reasonable on the site.

Financially Feasible
The cost of the land limits those uses that are financially feasible for the site. Any use of the Subject site that provides a financial return to the land in excess of the cost of the land is those uses that are financially feasible.

The Subject’s feasible uses are restricted to those that are a llowed by zoning classifications, and are physically possible. As noted in the zoning section, the site can be used for commercial uses.

Given the Subject’s surrounding land uses, the site’s physical attributes, development patterns in the area, and demand, commercial use is considered the most likely use.

Maximally Productive
Based upon our analysis, commercial use is financially feasible ; therefore, the maximally productive use of this site as if vacant would be to construct a commercial property.

Conclusion Highest and Best Use “As Vacant”
The highest and best use for the property “as vacant” would be to construct commercial uses.

APPRAISAL METHODOLOGY

The sales comparison approach of land sale comparables intended for commercial use to assess the value of the Subject site, as though vacant is the appropriate methodology for valuation of the Subject property. The cost and income approach are not applicable , and were not used in this appraisal report.

LAND VALUATION

The sales comparison approach to value is a process of comparing market data; that is, the price paid for similar propertie s, prices asked by owners, and offe rs made by pros pective purchasers willing to buy or lease. Market data is good evidence of value because it represents the actions of users and investors. The sales comparison approach is based on the principle of substitution, which states that a prudent investor would not pay more to buy or rent a property than it will cost to buy or rent a comparable substitute. The sales comparison approach recognizes that the typical buyer will compare asking prices and work through the most advantageous deal available. In the sales comparison approach, the appraisers are observers of the buyer’s actions. The buyer is comparing those properties that constitute the market for a given type and class.

To arrive at an opinion of land value for the Subject site, we researched and analyzed sales of comparable sites in the competitive area. In performing the market valuation, an extensive search for recent transfers of land zoned for commercial development within the Subject’s area was made.

Due to the lack of recent comparable commercial sales in Montebello, the search was expanded to include additional sales from El Monte, which is an area considered similar to the Subject’s.

Following is a land sales map, summary of sales, analysis of sales, and individual land data sheets.

Data No. Property Identification Date of Sale Sale Price Property Size/Acres
Property
Size/ SF
Price per
SF
3248 Santa Anita Ave.
1 El Monte, CA 91733 Oct-21 $3,205,000 0.75 32,670 $98.10 8580-018-027; -028, 029
716 Washington Boulevard
2 Montebello, CA 90640 Aug-21 $2,200,000 0.88 38,333 $57.39 6352-028-012
9710 Garvey Avenue
3 El Monte, CA 91733 Feb-21 $1,650,000 0.58 25,265 $65.31 8102-028-005
M ultifamily Land Sales

Land Sales Map

Land Sale 1
Property Identification
Add ress/Location 3248 Santa Anita Ave.

El Monte, CA 91733
APN 8580-018-027; -028, 029
Property Characteristics Sale Data
Zoning EMC2D Sale Price $3,205,000
Property Use Commercial Cash Equivalent $3,205,000
Size (Acres) 0.75 Number of Units Planned --
Size (SF ) 32,670 Price per SF $98.10
Shap e Rectangular Sale Date Oct-21
Topography Level Price per U nit -
Streets Paved Cash Equivalent Ye s
Off-site Improvements To Site Seller Veterinary Investments Inc Other Improv ements None Buyer Power 2626 Llc
U tilities To Site Sale Cond itions Market
Location Average Property Rights Fee Simple
Access Average Marketing Time (Mo.) N/A
Visibility Average Comp ID 11403
Comments
Sale information was confirmed with CoStar.

Land Sale 2
Prop erty Id entification
Address/Location 716 Washington Boulevard
Montebello, CA 90640
APN 6352-028-012
Property Characteristics Sale Data
Zoning CM Sale Price $2,200,000
Property Use Co mmercial Cash Equivalent $2,200,000
Size (Acres) 0.88 Number of Units Planned --
Size (SF) 38,333 Price per SF $57.39
Shap e Rectangular Sale Date Aug-21
Topography Level Price per Unit -
Streets Paved Cash Equivalent Yes
Off-site Improvements To Site Seller Draneb Properties 5 Llc Other Imp rov ements Previously developed lot Buyer 716 Washington LLC U tilities To Site Sale Cond itions Market
Location Average Property Rights Fee Simple
Access Average Marketing Time (Mo.) 180 days
Visib ility Average Comp ID 11399
Comments
Sale inform ation was confirm ed with CoStar.

Land Sale 3
Property Identification
Addres s / Locati on 9710 Garvey Avenue
El Monte, CA 91733
APN 8102-028-005
Property Characteristics Sale Data
Zoning C3EM Sale Price $1,650,000
Property Use Commercial Cash Equivalent $1,650,000
Size (Acres) 0.58 Number of U nits Planned--
Size (SF) 25,265 Price per SF $65.31
Shap e Rectangular Sale Date Feb-21
Topography Level Price per U nit -
Streets Paved Cash Equivalent Ye s
Off-site Improvements To Site Seller Blume Barry L Trust Other Imp rov ements Auto repair building Buyer G ol den Mi ssi on L L C U tilities To Site Sale Cond itions Market
Location Average Property Rights Fee Simple
Access Average Mark e ti ng Ti me (Mo.)N/A
Visibility Average Comp ID 11401
Comments
Sale inform ation was confirm ed with CoStar, The buyer intends to build an office building and lease it out. There was a previously developed auto repair building on-site.

The table below summarizes the adjustments.

Subject Sale 1 Sale 2 Sale 3
Address/Location 121 S 6th Steet 3248 Santa
Anita Ave.
716 Washington
Boulevard
9710 Garvey
Avenue
Montebello, CA 90640 El Monte, CA
91733
Montebello, CA
90640
El M onte, CA
91733
Sale Price $3,205,000 $2,200,000 $1,650,000
Price per S q. Ft. $98.10 $57.39 $65.31
Comparison Comparison Adj. Comparison Adj.

Property Rights Fee Simple Fee Simple Fee Simple
Ad justed Price Per Sq. Ft. $98.10 $57.39 $65.31
Terms Yes Yes Yes
Ad justed Price Per Sq. Ft. $98.10 $57.39 $65.31
Sale Cond itions Ma rke t Ma rke t Ma r ke t
Ad justed Price Per Sq. Ft. $98.10 $57.39 $65.31
Sale Date Oct-21 Aug-21 Feb-21
Ad justed Price Per Sq. Ft. $98.10 $57.39 $65.31
Expenditures After Purchase No No No
Ad justed Price Per Sq. Ft. $98.10 $57.39 $65.31
Physical Characteristics Comparison Comparison Adj. Comparison Adj. Comparison Adj.

Zoning C-2, General Commercial EM C2D CM C3EM
Size (Acres) 0.14 0.75 5% 0.88 5% 0.58 5%
Size (SF) 6,057 32,670 38,333 25,265
Topography Level Level Level Level
Street Paved Paved Paved Paved
Off-site Improvements To Site To Site To Site To S ite
On-site Improvements None None Previously
developed lot
Auto repair
building 1.5%
Utilities To Site To Site To Site To S ite
Locati on Average Similar Similar Similar
Total Physical Adjustment 5% 5% 7%
Adjusted Price Per Sq. Ft. $103.01 $60.26 $69.55
$60.26
$103.01
$77.61
Land Sale Analysis
Mi ni mum S al e
Maximum Sale
Av erage Sale

Explanation of Adjustments

Market Conditions
Real estate values change over time. The rate of this change fluctuates due to investors’ perceptions and responses to prevailing market conditions. This adjustment category reflects market differences occurring between the effective date of the appraisal and the sale date of comparables, when values have appreciated or depreciated. In this analysis, market cond itions of Montebello County indicate that adjustments for time and market conditions are necessary.

The land sales occurred between February 2021 and October 2021. Nationally and regionally, land values peaked during the prior cycle near 2008, and stalled during the economic recession.

During the time period between 2008 and 2012, there were softened market conditions, and declining market values. Appr eciation in land values started being reported in late 2012 and continued to rise through year to date. Interviews with local broker’s revealed prices increased on average between five and 10 percent per year during this time frame.

Based on this methodology, it was determined that all of the sales required no adjustment.

Zoning
All the sales were zoned to allow commercial uses at the time of the sale; therefore, no adjustments were necessary.

Size
Typically, an inverse relationship exists between site size and price per unit indication. The Subject site contains 0.14 acres. All of the sales are sligh tly larger than the Subj ect; therefore, all are adjusted upward five percent.

Onsite Improvements
The Subject is currently vacant. Sale 1 is al so vacant and requires no ad justment. Sale 2 is improved with a surface parking lot and demolition is considered factored into the purchase price.

Sale 3 is improved with a vacant 3,600 square foot auto repair bu ilding. Marshall & Swift cost demolition estimates for a Class C building average $6.87 per square foot, or in this sales case, 1.5 percent of the purchase price. An upward adjustment of 1.5 percent has been applied to Sale 3.

Location
All of the sales are located in areas considered similar to the Subject ba sed of analysis of the Subject’s zip code versus those of the sales. No adjustment for location is required.

Summary of Land Value
After adjustments, the Sales range in price from $60.26 per square foot to $103.01 per square foot, with an average of $77.61 per square foot. Greater weight is placed on Sale 2 in determination of a market price per square foot as it is located in Montebello clos est to the Subjec t. Secondary weight is placed on the remaining sales. A value indication of $70.00 per square foot is considered reasonable and market oriented. The value computes as illustrated in the table below.

Square
Footage $/Sq . Ft Ind ication
6,057 $70.00 $420,000
Indication of Value

Marketing/Exposure Time
Marketing Time is defined as the period from the date of initial listing to the settlement date. The projected marketing time for the Subject prop erty will vary greatly, depending upon the aggressiveness of the marketing agent, the met hod of marketing, the market that is targeted, interest rates and the availabil ity of credit at the time the property is marketed, the supply and demand of similar properties for sale or having been recently purchased, and the perceived risks at the time it is marketed.

Discussions with area Realtors indicate that a marketing period of twelve months is reasonable for properties such as the Subject. This is supporte d by data obtained on seve ral of the comparable sales and consistent with in formation obtained from the PWC Real Estate Investor Survey. This estimate assumes a strong advertising and marketing program during the marketing period.

The exposure/marketing time of the subject property is very diff icult to judge in that the buy/sell decision involving investment properties is interrelated with the assumption that the property is priced reasonably and is adequately exposed to the proper market. Marke ting Time differs from Exposure Time in that the estima te of Marketing Time is a proj ection into the fu ture with the associated estimates as to future trends and factors that are likely to impact the market segment in which the subject is participating. In an attempt to forecast Marketing Time, consideration is given to the fact that the sales and opi nions that have been elicited in the estimation of Exposure Time have been formulated during current economic conditi ons that are expected to be very similar in the foreseeable future.

Investment property brokers, inve stors, and sellers familiar with the market, report that the exposure time can range from 30 days to as long as twelve months. This assumes that financing is available and that there are no significant negative items affecti ng the property. Based upon information gathered during the co urse of this assignment it is our opinion that the appropriate estimate of the exposure time is equal to the marketing time for the subject and is estimated at six to twelve months.

ADDENDUM A

Assumptions and Limiting Conditions, Certification

ASSUMPTIONS AND LIMITING CONDITIONS

1. In the event that the client provided a legal description, building plans, title policy and/or survey, etc., the appraiser has relied extensiv ely upon such data in the formulation of all analyses.

2. The legal description as supplied by the client is assumed to be co rrect and the author assumes no responsibility for legal matters, and renders no opi nion of property title, which is assumed to be good and merchantable.

3. All encumbrances, including mortgages, liens, leases, and servitudes, were disregarded in this valuation unless specified in the report. It was recognized, however, that the typical purchaser would likely take advantage of the best available financing, and the effects of such financing on property value were considered.

4. All information contained in the report whic h others furnished was assumed to be true, correct, and reliable. A reasonable effort was made to verify such information, but the author assumes no responsibility for its accuracy.

5. The report was made assumin g responsible ownership and capable management of the property.

6. The sketches, photographs, and other exhibits in this report are solely for the purpose of assisting the reader in visu alizing the property. The author made no property survey, and assumes no liability in connection with such matters. It was also assumed there is no property encroachment or trespass unless noted in the report.

7. The author of this report assumes no responsib ility for hidden or unapparent conditions of the property, subsoil or structures, or the correction of any defects now existing or that may develop in the future. Equipment compone nts were assumed in good working condition unless otherwise stated in this report.

8. It is assumed that there are no hidden or unapparent conditions for the property, subsoil, or structures, which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering, which may be required to discover such factors.

9. The investigation made it reas onable to assume, for report pu rposes, that no insulation or other product banned by the Consumer Product Safety Commission has been introduced into the Subject premises. Visual inspection by the appraiser did not indicate the presence of any hazardous waste. It is suggested the client obtain a professional environmental hazard survey to further define the condition of the Subject soil if they deem necessary.

10. Any distribution of total property value be tween land and improvements applies only under the existing or specified program of property utilization. Separa te valuations for land and buildings must not be used in conjunction wi th any other study or a ppraisal and are invalid if so used.

11. A valuation estimate for a prope rty is made as of a certain day. Due to the principles of change and anticipation the value estimate is only valid as of the date of valuation. The real estate market is non-static and change and mark et anticipation is analyzed as of a specific date in time and is only valid as of the specified date.

12. Possession of the report, or a c opy thereof, does not carry with it the right of publication, nor may it be reproduced in whole or in part, in any manner, by any person, without the prior written consent of the author particularly as to value conclusions, the identity of the author or the firm with which he or she is connected. Neither all nor any part of the report, or copy thereof shall be disseminated to the general public by the use of advertising, public relations, news, sales, or other media for public communication without the prior written consent and approval of the appraiser. Nor shall the apprai ser, firm, or professional organizations of which the appraiser is a member be identified without written consent of the appraiser.

13. Disclosure of the contents of this report is governed by the Bylaws and Regulations of the professional appraisal organizati on with which the appraiser is affiliated: specifically, the Appraisal Institute.

14. The author of this report is not required to give testimony or attendance in legal or other proceedings relative to this report or to th e Subject property unless satisfactory additional arrangements are made prior to the need for such services.

15. The opinions contained in this report are those of the author and no responsibility is accepted by the author for the results of actions taken by others based on information contained herein.

16. Opinions of value contained herein are estima tes. There is no guarantee, written or implied, that the Subject property will sell or lease for the indicated amounts.

17. All applicable zoning and use regulations and restrictions are assumed to have been complied with, unless nonconformity has been stated, defined, and considered in the appraisal report.

18. It is assumed that all required licenses, permits, covenants or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.

19. All general codes, ordinances, regulations or statutes affecting the property have been and will be enforced and the property is not Subject to flood plain or utility restrictions or moratoriums, except as reported to the appraiser and contained in this report.

20. The party for whom this report is prepared has reported to the appraiser there are no original existing condition or development plans that would Subject this property to the regulations of the Securities and Exchange Commission or similar agencies on the state or local level.

21. Unless stated otherwise, no percolation test s have been performed on this property. In making the appraisal, it has been assumed the property is capable of passing such tests so as to be developable to its highest and best use, as detailed in this report.

22. No in-depth inspection was made of existing plumbing (including well and septic), electrical, or heating systems. The appraiser does not warrant the condition or adequacy of such systems.

23. No in-depth inspection of ex isting insulation was made. It is specifically assumed no Urea Formaldehyde Foam Insulation (UFFI), or an y other product banned or discouraged by the Consumer Product Safety Commission has been introduced into the appraised property. The appraiser reserves the right to review and/or modify this appraisal if said insulation exists on the Subject property.

Acceptance of and/or use of this report cons titute acceptance of all assumptions and the above conditions.

CERTIFICATION

The undersigned hereby certify that, to the best of our knowledge and belief:

 The statements of fact contained in this report are true and correct;  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, im partial, and unbiased professional analyses, opinions, conclusions, and recommendations;
 We have no present or prospective interest in the property that is the subject of this report, and we have no personal interest with respect to the parties involved;  We have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment;
 We have not performed consulting assignments involving the Subject in the past three years;  Our engagement in this a ssignment was not contingent upon developing or reporting predetermined results;
 Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal;  Our analyses, opinions, and conclusions were de veloped, and this report has been prepared, in conformity with the requirements of the Co de of Professional Et hics & Standards of Valuation Practice of the Appraisal Institute and USPAP;  Charles Haase, a California Certified General Appraiser, performed a physical inspection of the property and the Subject's neighborhood December 7, 2021. Amanda Baker, MAI did not inspect the Subject site, but did review the report;
 We do not authorize the out of context quoting from or partial reprinting of this market analysis report. Further, neither all nor any part of this repo rt shall be disseminated to the general public by the use of media for public communication without the prior written consent of Kinetic Valuation Group, Inc.;
 The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives;
 As of the date of this report, Amanda Bake r, MAI and Charles Haase have completed the requirements of the continuing education program of the Appraisal Institute.

Amanda Baker, MAI Charles Haase
Appraiser Appraiser
[email protected] [email protected]
(402) 305-1693 (402) 750-1805
Certified General Certified General
CA - 3002360 CA - 3004234
Expiration: 7/14/2022 Expiration: 12/21/2022

ADDENDUM B

Subject Photographs and Information

SUBJECT PHOTOGRAPHS

Subject Subject

Subject Subject

Subject Subject

SUBJECT PHOTOGRAPHS

Nearby duplex Nearby vacant land

Adjacent parking lot Nearby school

Nearby single family home Nearby commercial

SUBJECT PHOTOGRAPHS

Nearby commercial Nearby commercial

South 6th Street traversing north South 6th Street traversing south

ADDENDUM C

Legal Description

ADDENDUM D

Qualifications of Consultants

STATEMENT OF PROFESSIONAL QUALIFICATIONS
JAY A. WORTMANN, MAI
Qualifications of Partners & Key Personnel

STATEMENT OF PROFESSIONAL QUALIFICATIONS
JAY A. WORTMANN, MAI

ASSOCIATION MEMBERSHIPS
Member of the Appraisal Institute with the MAI Designation, No. 519881

STATE CERTIFICATIONS
State of California Certified General Real Estate Appraiser (3001293) State of Hawaii Certified General Real Estate Appraiser (CGA 1146) State of Iowa Certified General Real Estate Appraiser (CG03319) State of Minnesota Certified General Real Estate Appraiser (40392083) State of Missouri Certified General Real Estate Appraiser (2013040219) State of Nebraska Certified General Real Estate Appraiser (CG2014002) State of New Mexico Certified General Real Estate Appraiser (03455-G) State of Oklahoma Certified General Real Estate Appraiser (13111CGA) State of Texas Certified General Real Estate Appraiser (TX 1380393 G) State of South Dakota Certified General Real Estate Appraiser (1527CG) State of Florida Certified General Real Estate Appraiser (RZ4153)

EDUCATION
University of Nebraska, Bachelor of Science in Business Administration with an emphasis in Finance and Management, 2004

All educational requirements successfully completed for the Appraisal Institute MAI designation.

Consortium Institute of Management and Business Analysis (CIMBA) Undergraduate Program, Spring Semester 2004, Paderno del Grappa, Italy

EXPERIENCE
06/2018 to Present Kinetic Valuation Group, President
10/2015 to 06/2018 Lea & Company, President
01/2007 to 10/2015 Lea & Company, Director Midwest Offices 11/2006 to 5/2008 Assumption-Guadalupe Catholic School - South Omaha CORE Development Director 06/2004 to 10/2006 Novogradac & Company LLP, Real Estate Analyst

PROFESSIONAL TRAINING
Appraisal Courses Completed:
• Basic Appraisal Procedures 10/2008
• Basic Appraisal Principles 12/2008
• Income Approach Part I 07/2010
• Income Approach Part II 08/2010
• General Appraiser Sales Comparison Approach 04/2011
• Market Analysis & Highest & Best Use 05/2011
• Real Estate Finance Statistics and Valuation Modeling 08/2011 • Advanced Income Capitalization 09/2011
• General Appraiser Site Valuation & Cost Approach 10/2011 • General Appraiser Report Writing and Case Studies 12/2011

Jay A. Wortmann, MAI-Statement of Professional Qualifications

• National USPAP 15-Hour Course 01/2012
• Nebraska National Appraiser Examination 04/2012
• Advanced Concepts & Case Studies 11/2013
• MAI Comprehensive Exam Module II, III, & IV 04/2014
• MAI Comprehensive Exam Module I 11/2014
• MAI General Demonstration Report-Capstone Program – 11/2014

REAL ESTATE ASSIGNMENTS
A representative sample of various types of projects involved with includes:

• Prepared market studies for proposed Low -Income Housing Tax Credit, market rate, HOME financed, USDA Rural Development, and HUD subsidized properties, on a national basis.

Analysis includes property screenings, market analysis, comparable rent surveys, demand analysis based on the number of income qualified renters in each market, supply analysis, and operating expenses analysis. Property types include proposed multifamily, senior independent living, large family, and acquisition with rehabilitation. • Prepare appraisals of proposed new construction, rehabilitation, and existing Low -Income Housing Tax Credit properties, USDA Rural Developmen t, and market rate multifamily developments. Analysis includes property screenings, valuation analysis, rent comparability studies, expense comparability analysis, determination of market rents, and general market analysis.
• Prepare appraisal work for retail and commercial properties in various parts of the country for various lenders. The client utilized the study for underwriting purposes. • Conducted market studies for projects under the HUD Multifamily Accelerated Processing program.
• Prepare app raisals of proposed new construction properties under the HUD Multifamily Accelerated Processing program.
• Prepare Rent Comparability Studies for expiring Section 8 HAP contracts for subsidized properties located throughout the United States. Engagements included site visits to the subject property, interviewing and inspecting potentially comparable properties, and the analyses of collected data including adjustments to comparable data to determine appropriate adjusted market rents using HUD form 92273.
• Performed all aspects of data collection and data mining for web -based rent reasonableness systems for use by local housing authorities.

Work assignments completed in various states include:

Arizona Kentucky Oklahoma
Arkansas Michigan Pennsylvania
California Minnesota South Carolina
Colorado Mississippi Tennessee
Connecticut Missouri Texas
Florida Montana Utah
Hawaii Nebraska Washington
Idaho New Jersey Wisconsin
Iowa New Mexico Wyoming
Kansas North Dakota

STATEMENT OF PROFESSIONAL QUALIFICATIONS
AMANDA M. BAKER, MAI

I. Professional Affiliation
Member of the Appraisal Institute with the MAI Designation, No. 511086

II. State Certifications
State of Arizona Certified General Real Estate Appraiser (32065) State of California Certified General Real Estate Appraiser (3002360) State of Colorado Certified General Real Estate Appraiser (CG.200000747) State of Kansas Certified General Real Property Appraiser (G-2960) State of Missouri Certified General Real Estate Appraiser (2014021680) State of Nebraska Certified General Real Property Appraiser (CG2016006R) State of Nevada Certified General Real Estate Appraiser (A.0207150-CG) State of Washington Certified General Real Estate Appraiser (1102380)

III. Education
University of Nebraska-Omaha, Bachelor of Science in Business Administration -Specialization in Real Estate and Land Use Economics
-Specialization in Marketing
-Secondary Specialization in Economics

IV. Professional Experience
-Vice President-Kinetic Valuation Group, June 2018-Present -Manager-Lea & Company, November 2011-June 2018
-Senior Real Estate Analyst, Novogradac & Company LLP, April 2005–October 2011

V. Professional Training
-MAI General Demonstration Report-Capstone Program July 2016 -2016-2017 National USPAP Update March 2016
-MAI Comprehensive Exam August 2015
-Advanced Market Analysis and Highest & Best Use May 2015 -Advanced Income Capitalization October 2014
-Quantitative Analysis June 2014
-Advanced Concepts & Case Studies May 2014

VI. Real Estate Assignments
A representative sample of Due Diligence and Valuation Engagements includes:

• Prepared market studies for proposed Low -Income Housing Tax Credit, market rate, HOME financed, USDA Rural Development, and HUD subsidized properties, on a national basis.

Analysis includes property screenings, market analysis, comparab le rent surveys, demand analysis based on the number of income qualified renters in each market, supply analysis, and operating expenses analysis. Property types include proposed multifamily, senior independent living, large family, and acquisition with rehabilitation.

• Prepare appraisals of proposed new construction, rehabilitation, and existing Low -Income Housing Tax Credit properties, USDA Rural Development, and market rate multifamily developments. Analysis includes property screenings, valuation analysis, rent comparability studies, expense comparability analysis, determination of market rents, and general market analysis.

Amanda M. Baker, MAI-Statement of Professional Qualifications

• Prepare appraisal work for retail and commercial properties in various parts of the country for various lenders. The client utilized the study for underwriting purposes.

• Conducted market studies for projects under the HUD Multifamily Accelerated Processing program.

• Prepare appraisals of proposed new construction properties under the HUD Multifamily Accelerated Processing program.

• Prepare Rent Comparability Studies for expiring Section 8 HAP contracts for subsidized properties located throughout the United States. Engagements included site visits to the subject property, interviewing and inspecting potentially comparable properties, and the analyses of collected data including adjustments to comparable data to determine appropriate adjusted market rents using HUD form 92273.

• Performed all aspects of data collection and data mining for web -based rent reasonableness systems for use by local housing authorities.

STATEMENT OF PROFESSIONAL QUALIFICATIONS
CHARLES K. HAASE

STATE CERTIFICATIONS
State of California Certified General Real Estate Appraiser (3004234) State of Ohio Certified General Real Estate Appraiser (2017003033) State of Utah Certified General Real Estate Appraiser (10536692-CG00) State of Oklahoma Certified General Real Estate Appraiser (13344CGA)

EDUCATION
University of Nebraska Omaha, Bachelor of Arts in International Studies - Specialization in Global Strategic Studies.

EXPERIENCE
06/2018 to Present - Kinetic Valuation Group, Certified General Real Estate Appraiser

10/2011 to 06/2018 - Lea & Company, Certified General Real Estate Appraiser

06/2009 to 10/2011 - Nebraska Title Company – Escrow Closer/Title Agent/Searcher

PROFESSIONAL TRAINING
Certified General Real Property Appraisal Courses Completed:
 Basic Appraisal Procedures 05/2012
 Basic Appraisal Principles 10/2012
 Statistics, Modeling, and Finance 05/2013
 General Site Valuation and Cost Approach 07/2013
 General Sales Comparison Approach 08/2013
 General Appraiser Income Approach Part I 04/2014
 General Appraiser Market Analysis 08/2014
and Highest & Best Use
 General Appraiser Report Writing and Case Studies 10/2014  National USPAP 15-Hour Course 11/2014
 Business Practice and Ethics 08/2015
 General Appraiser Income Approach Part II 09/2015
 Advanced Income Capitalization 10/2015
 Advanced Concepts & Case Studies 07/2019
 Advanced Market Analysis and Highest & Best Use 11/2019

REAL ESTATE ASSIGNMENTS
A representative sample of various types of projects involved with includes:

 Prepared market studies for proposed Low-In come Housing Tax Credit, market rate, HOME financed, USDA Rural Development, and HUD subsidized properties, on a national basis.

Analysis includes property screenings, market an alysis, comparable rent surveys, demand analysis based on the number of income qualified renters in each market, supply analysis, and operating expenses analysis. Property types incl ude proposed multifamily, senior independent living, large family, and acquisition with rehabilitation.

 Prepare appraisals of proposed new construc tion, rehabilitation, and existing Low-Income Housing Tax Credit properties, USDA Rural Development, and market rate multifamily developments. Analysis includes property scr eenings, valuation analysis, rent comparability studies, expense comparability analysis, determin ation of market rents, and general market analysis.

 Prepare Rent Comparability Studies for expiring Section 8 HAP contracts for subsidized properties located throughout the United States. E ngagements included site visits to the subject property, interviewing and inspecting potentially comparable properties, and the analyses of collected data including adjustments to comparable data to determine appropriate adjusted market rents using HUD form 92273.

 Performed all aspects of data collection and da ta mining for web-based rent reasonableness systems for use by local housing authorities.

Work assignments completed in various states include:

Arizona Nebraska
Arkansas New Mexico
California New York
Colorado North Dakota
Florida Ohio
Hawaii Oklahoma
Iowa Oregon
Kansas Pennsylvania
Michigan Texas
Missouri Utah
Minnesota West Virginia
Montana Washington
Nevada Wisconsin
Wyoming

ITEM # 5

CITY OF MONTEBELLO

CITY COUNCIL AND SUCCESSOR AGENCY AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: Arnold M. Alvarez-Glasman, City Attorney

BY: Arnold Glasman, City Attorney

SUBJECT: CONSIDERATION AND ADOPTION OF RESOLUTION NO. 23-17

ESTABLISHING RULES OF ORDER FOR THE CONDUCT OF ALL CITY

COUNCIL AND SUCCESSOR AGENCY MEETINGS, PROCEEDINGS

AND BUSINESS

DATE: February 22, 2023

RECOMMENDATION(S):

It is recommended that the City Council:

1. Consider and adopt Resolution No. 23-17 establishing rules of order for the conduct of all City Council and Successor Agency meetings, proceedings, and business; and

2. Provide further direction for a date to conduct a Study Session to review the rules of procedure; and

3. Take other action as directed by the City Council.

FISCAL IMPACT:

None.

BACKGROUND/DISCUSSION:

At its meeting of October 27, 2022, the City Council adopted Ordinance No. 2443 amending and restating the rules of order for the conduct of all City Council and Successor Agency meeting, proceedings, business, and rescinding Resolution Nos. 89- 70, 06-22, 11-89 and 19-124.

At the City Council meeting of January 11, 2023, at the request of Mayor Torres, the City Council introduced and conducted the first reading of Ordinance No. 2459 which would repeal the previously adopted Ordinance No. 2443. Ordinance No. 2459 was adopted at

CITY COUNCIL AND SUCCESSOR AGENCY AGENDA REPORT - MEETING OF FEBRUARY 22, 2023

the City Council meeting of January 25, 2023 and will take effect on February 24, 2023.

Once Ordinance No. 2459 takes effect, the previously rescinded Resolution Nos. 89-70, 06-22, 11-89 and 19-124 will become reinstated as a result, unless the City Council adopts the attached Resolution to supersede the previously rescinded ones.

ENVIRONMENTAL:

N/A

ANALYSIS:

N/A

SUMMARY:

It is recommended that the City Council adopt Resolution No. 23-17 establishing Rules of Order for the conduct of all City Council and Successor Agency meetings, proceedings, and business to supersede those previously rescinded and provide further direction for a date to conduct a Study Session to review the rules of procedure. These Rules of Order would be temporary and in place until a City Council study session is conducted to address a full and complete review of the Rules of Order.

ATTACHMENT(S)

1. Attachment A - Resolution 23-17, Rules of Order

NEXT STEPS:

N/A

RESOLUTION NO. 23-17 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTEBELLO, CALIFORNIA, ESTABLISHING RULES OF ORDER FOR THE CONDUCT OF ALL CITY COUNCIL AND SUCCESSOR AGENCY MEETINGS, PROCEEDINGS AND BUSINESS RECITALS WHEREAS, section 54954(a) of the Government Code requires a legislative body of a local agency to provide by ordinance, resolution, bylaws, or other form the conduct of business by the legislative body; and WHEREAS, the City Council of the City of Montebello (“City”) has, by prior Resolutions, the last of which was Resolution No. 89-70, 06-22, and 11-89, adopted rules for the conduct of its City Council (“Council”) and Successor Agency (“Agency”) meetings.; and WHEREAS, the City Council has, by prior Resolutions, the last of which was Resolution No. 19-124, canceled on an annual basis the City Council meeting in the First week of July and the second meeting of November and December to honor future summer vacations and holiday schedules; and WHEREAS, on October 27, 2021, the City Council adopted Ordinance No. 2443 amending and restating the rules of order for the conduct of all City Council and Successor Agency meeting, proceedings, business, and rescinding Resolution Nos. 89-70, 06-22, 11-89 and 19-124; and WHEREAS, on January 25, 2023, the City Council repealed Ordinance No. 2443 and as a result repealed Chapter 2.14 “City Council/Agency Meeting Rules of Order” of the Montebello Municipal Code, causing the previously rescinded Resolution Nos. 89-70, 06-22, 11-89 and 19-124 to become reinstated, except as provided herein; and WHEREAS, from time-to time there is a need to update and restate such rules, whether as a result of subsequent policy decisions and to ensure the orderly conduct of city business; and WHEREAS, the City has received a letter expressing certain legal concerns regarding the alleged curtailing of free speech rights protected by the First Amendment in Ordinance No. 2443 and threatened legal action; and

RESOLUTION NO. 23-17 Page 2 of 12 WHEREAS, the City Council desires to amend and restate the rules of order to facilitate effective and efficient meeting management, greater transparency, and meaningful public participation; and WHEREAS, the City Council wishes to establish new rules of order for the conduct of City Council and Successor Agency Meetings by the adopted of this Resolution (“Rules of Conduct”). NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO HEREBY RESOLVES, FINDS, AND DECLARES AS FOLLOWS: SECTION 1. RECITALS. The foregoing recitals are true and correct and are hereby incorporated as substantive findings in this Resolution. SECTION 2. RULES OF ORDER. The temporary rules of order for the conduct of City Council and Successor Agency Meetings shall be established as the following: CITY COUNCIL/AGENCY MEETING RULES OF ORDER Section 1. Open to the Public. The Council and Agency are subject to the Brown Act Open Meetings Law. (Government Code section 54950 et seq). All meetings of the Council and Agency are open to the public, except for closed sessions which are authorized to be held in accordance with the applicable provisions of the Brown Act. Section 2. Time and Place of Council/Agency Meetings. Regular Meetings. Regular meetings of the City Council and Agency shall be held at the City Hall Council Chambers at 1600 West Beverly Boulevard, Montebello, California 90640, except as otherwise provided from time-to-time and authorized by the Brown Act. The regular meetings of the City Council and Agency shall be held on the second and fourth Wednesdays of each month. Regular meeting agendas shall be posted on the City’s website and at City Hall no later than 72 hours prior to the meeting. Closed Session. The City Council Closed Session will start at 6:00 p.m. The Mayor/Chairperson may recess the City Council/Agency meeting to discuss closed session items. Closed Session shall not exceed 1 hour. If at the end of the one-hour Closed Session items remain for discussion, Council may recess closed session to consider regular business and reconvene closed session at the end of the regular

RESOLUTION NO. 23-17 Page 3 of 12 business portion of the meeting. If there is no Closed Session, the regular meeting will start at 6:00 p.m. Special Meetings. Special meetings are “Special” because the presiding officer or majority of the legislative body can call them on a minimum of 24 hours’ notice, as authorized by the Brown Act. Special meetings need not be held at City Hall, as long as the alternate location is within the City. Special meeting agendas shall be posted on the City’s website and at the meeting location, if located away from City Hall in a place to which the public has unrestricted access and where the notice and agenda are not likely to be removed or obscured by other posted materials. The Council/Agency will make every effort to provide notice well in advance of 24 hours, especially when the special meeting is for the purpose of conducting a Study Session. Study Sessions. Study Sessions are meetings during which the Council/Agency receives information about Council/Agency business in an informal setting. The informal study session setting is intended to encourage in-depth discussion and detailed questioning and brainstorming by Council/Agency on issues of significant interest, including but not limited to City/Agency policy matters, budget and financial matters zoning applications, major public works projects and other related topics. The Council/Agency may discuss the material freely without following formal rules of parliamentary procedure. Staff may be directed to bring matters back for future Council/Agency consideration as no action can be taken at a study session. The Decorum rules still apply to the behavior of the Council/Agency and public. Holidays. Whenever the day for holding any of the meetings falls on a holiday, the meeting shall be held on the next business day unless otherwise ordered by the City Council/Agency at a prior meeting. Agenda Materials. The City Clerk office shall post the agenda materials and supplemental agenda materials on the City’s agenda website. The agenda packets are available for public inspection at the City’s website. The agenda cover sheets may also be emailed upon written request. Broadcasting of Meetings. All regular Council/Agency meetings shall be live streamed on the City’s website and broadcasted on the City’s Government Access Channel (Channel 3) and will be video-recorded, unless the City/Agency is unable to do so due to unforeseen technical circumstances or circumstances beyond the City’s/Agency’s control, in which case the meeting will be audio recorded. Section 3. Cancelled Meetings.

RESOLUTION NO. 23-17 Page 4 of 12 The City Council/Agency regular meetings may, by resolution, be cancelled during the regularly scheduled second meetings of November and December, or any other meetings the council deems appropriate. Section 4. General Requirements. Attendance. Council/Agency Members, the City Clerk, City Attorney, and City Manager, along with any other city officers and department heads that have been requested to be present, shall take their regular stations in the Council chamber prior to the start of any meeting, except during recognized absences. The Council/Agency expects its members to attend regularly and notify the City Clerk, Senior Deputy City Clerk, Assistant City Manager, or City Manager of any planned absences at least two (2) hours prior to the start of any meeting. Notification shall be made via formal written and/or email notice, or confirmed verbally. Quorum. The City of Montebello has a five-member body, three (3) members of the Council/Agency shall constitute a quorum and shall be sufficient to transact business. If less than the quorum Council/Agency members appear at a regular meeting, the Mayor/Chairperson, Mayor Pro Tem/Vice Chairperson in the absence of the Mayor/Chairperson, any Council/Agency member in the absence of the Mayor/Chairperson and Mayor Pro Tem/Vice Chairperson, or in the absence of all Council/Agency members, the City Clerk or Senior Deputy City Clerk, shall adjourn the meeting to a stated day and hour. The Council/Agency shall not take any action on any item which does not appear on the posted agenda except as follows in accordance with Government Code Section 54942.2: 1. Emergency Situation. An emergency situation, as defined in Cal. Govt. Code § 54956.5 exists. Before proceeding to act upon an emergency item not appearing on the agenda, the Council/Agency shall by a majority vote determine that an emergency situation exists and that prompt action is required by the Council/Agency. The Council/Agency shall include in the minutes of its meeting the facts upon which it relied in finding the existence of an emergency situation. 2. Need to Take Action on Non-Agenda Items. The Council/Agency may act upon an item not appearing on the agenda if it finds, by a two-thirds vote of the members present at the meeting or if less than two-thirds of the members are present, by a unanimous vote of the members present, that there is a need to take immediate action on the non-agenda item and such need to act came to the Council/Agency attention after the posting of the agenda. If such a determination is to be made, a statement of facts upon which the determination is based shall be (presented and) included in the minutes supporting the action taken.

RESOLUTION NO. 23-17 Page 5 of 12 3. Held over items. Items not appearing on the posted agenda for a specific meeting may be acted upon at that meeting if: a) The item appeared on a properly posted agenda for a previous meeting; b) The previous meeting occurred not more than five calendar days prior to the date of the meeting at which the item is proposed to be considered; and c) The item was continued from a previous meeting ot the meeting at which action is proposed to be taken. Tentative Council Calendar. The Tentative Council Calendar shall list items pending to come before Council/Agency within the next 12 month period and will be included as part of each council meeting’s agenda packet. City staff will post the Tentative Council Calendar on the city’s website and make updates to the Tentative Council Calendar as necessary. Consent Calendar Categories. The consent calendar section is where administrative and non-controversial items shall be presented. The Mayor/Chairperson and City Manager should be sensitive to high dollar value items and consider placing those items in the regular business section. Ordinances, Resolutions, and Contracts. All ordinances, resolutions and contracts shall be prepared by the City Attorney. No ordinance shall be prepared for presentation to the Council/Agency unless ordered by a majority vote of the Council/Agency, or requested by the Mayor/Chairperson, or City Manager, or prepared by the City Attorney on his or her initiative. The following ordinances and resolutions may appear on a consent calendar: 1. Second Reading of Ordinances. 2. Resolutions that are ceremonial in nature. 3. Budget amendments that accept funding such as grants or gifts provided the council has previously approved the activity or program. 4. Resolutions approving funding applications, such as grants or loans, provided that the program or activity has been previously approved by Council. Section 5. Teleconference Attendance of Council/Agency Members at Meetings. The specific requirements relating to teleconferencing per the Brown Act and related amendments shall apply to Council/Agency members. At least a quorum of the Council/Agency must participate from a location within the City (Government Code Section 54953(b)(3)).

RESOLUTION NO. 23-17 Page 6 of 12 If these two threshold requirements are met, the Council/Agency member who will be appearing telephonically must ensure that: • The meeting agenda identifies the teleconference location and is posted at that location in an area that is accessible and visible 24 hours a day for at least 72 hours prior to the meeting. • The teleconference location is open and fully accessible to the public, and fully accessible under the Americans with Disabilities Act, throughout the entire meeting. These requirements apply to private residences, hotel rooms, and similar facilities, all of which must remain fully open and accessible throughout the meeting, without requiring identification or registration. • The teleconference technology used is open and fully accessible to all members of the public to participate, including those with disabilities. • Members of the public who attend the meeting at the teleconference location have the same opportunity to address the Council/Agency from the remote location that they would if they were present in Council Chambers. • The teleconference location must not require an admission fee or any payment for attendance. • All votes must be by roll call. • If the meeting will include a closed session, the Council/Agency member must also ensure that there is a private location available for that portion of the meeting. Approved Teleconference Guidelines for Council/Agency Members. Council/Agency member must give notice in advance of the publication of the agenda to the City Clerk’s office. The notice must include: • The address at which the teleconferenced meeting will occur; • The address the Council/Agency packet should be mailed to; • Who is to initiate the phone call to establish the teleconference connection; and • The phone number of the teleconference location. If cellular telephones are used to participate in teleconferenced meetings, Council/Agency members need to ensure the speaker phone option is functioning. The Council/Agency member is responsible for posting the Council/Agency agenda in the remote location, or having the agenda posted by somebody at the location and confirming that posting has occurred. The City Clerk will assist, if necessary, by emailing, faxing or mailing the agenda to whatever address or fax number the Council/Agency member requests; however, it is the Council/Agency member’s responsibility to ensure that the agenda arrives and is posted. If the Council/Agency member will need the assistance of the City Clerk in delivery of the agenda, the fax number or address must be included in the advance written notice above.

RESOLUTION NO. 23-17 Page 7 of 12 The Council/Agency member must ensure that the location will be publicly accessible while the meeting is in progress. The Council/Agency member must state at the beginning of the meeting that the posting requirement was met at the location and that the location is publicly accessible and must describe the location. Notwithstanding the above, any temporary or permanent statutory regulations, authority or restrictions established by the provisions of the Brown Act, as amended, shall apply for teleconferencing or other remote participation and shall be incorporated in and apply to these Rules of Conduct. Section 6. Order of Business. Call to Order – 6:00 p.m. Roll Call Announcement of Closed Session Items Public Comments on Closed Session Items Closed Session Closed Session Report Invocation Pledge of Allegiance Corrections to the Agenda Ceremonial Items/Presentations Public Comments on Non-Agenda Items - Each speaker will have 3 minutes. All other comments which exceed the initial 30-minute period, unless otherwise provided by a majority of Council/Agency to extend time, will be continued to the end of the meeting. Note: Public Comments for Public Hearings, Regular Business and/or Consent Calendar shall be received at the time that matter of business is heard. Staff Communications on Items of Community Interest Public Hearing Regular Business Consent Calendar Public Comments on Non-Agenda Items. (Continued from the initial Public Comment period if necessary.) AB 1234 Travel Reports Council/Agency Orals Closed Session. (Continued from the initial Closed Session period if necessary.) Adjournment

RESOLUTION NO. 23-17 Page 8 of 12 The Mayor shall have the discretion to change the order of business. Council/Agency members may change the order of business by majority vote of the Council/Agency. Section 7. Procedure for Addressing the City Council/Agency. When a speaker is called, the speaker shall promptly approach the audience microphone and is requested but not required to give his/her name, whom they represent and/or city of residence in an audible tone of voice for the records. Failure to approach the audience microphone when called may preclude an opportunity to speak during that subject public comment period. A member of the public shall only address the legislative body from the audience microphone, unless authorized by the Mayor/Chairperson to speak from another location. During the Public Comment period any member of the public may address the Council/Agency on any non-agenda and agenda item at the time set forth in the order of business. Speakers shall be limited to three (3) minutes, with a total limit of thirty (30) minutes for Public Comments at the beginning of the meeting for non-agenda items. Mayor/Chairperson, in his/her discretion, and/or in consultation with the legislative body, may limit or extend time for public comment as he/she may find reasonable under the circumstances. Public Comments on non-agenda items will continue, if necessary, after all other business of the meeting is concluded. No person shall be permitted to interrupt members of the body, staff presentations, or members of the public who are at the microphone during a meeting. Members of the public can speak on any item on the agenda including Consent Calendar items. Comments on Consent Calendar items will be heard at the time the item is up for discussion or at the beginning of the Consent Calendar being consider at the direction of the Mayor/Chair. In order to expedite Council/Agency business and to avoid repetitious presentations, whenever an organization or group of persons wishes to address the Council or Agency on the same subject matter, it shall be proper for the presiding officer to inquire whether the organization or group has a spokesperson. If so, spokespersons may be allotted up to six (6) minutes to speak. A Council/Agency member wishing to ask questions of a member of the public should first be recognized by the Presiding Officer. State law does not permit the Council/Agency to act on or discuss an item raised during Public Comment, but Council/Agency members may ask brief clarifying questions and may ask City staff to follow up any concerns that are raised. Alternatively, the Council/Agency may request the issue to be agendized for discussion at a future Council/Agenda meeting.

RESOLUTION NO. 23-17 Page 9 of 12 Any person may record a meeting unless the body finds that the recording cannot continue without noise, illumination, or obstruction of view that constitutes, or would constitute, a persistent disruption of the proceedings. Section 8. Agency/Council Oral Reports and Action Items. The purpose of Council/Agency Orals is to allow Council/Agency to question staff briefly on matters which the Council/Agency has taken action or given direction; to make general comments as a reference to staff on factual matters of community concern; and provide updates or make brief announcements in a manner consistent with Government Code Section 54952.2. All Council/Agency requests for oral communications to be placed on an agenda shall be expressed in complete sentences and shall provide sufficient information to be in compliance with the Brown Act. All oral communications shall provide a brief, general description of each item of business to be transacted or discussed at the meeting and need not exceed 20 words. If a Council/Agency oral communication fails to comply with these requirements, the City Manager will not place the newly requested item on the agenda. Any Council/Agency member may bring a matter of business before the Council during Council/Agency orals to add an item to a future agenda. Placing an item on a future agenda requires a majority roll call vote. At that time, the Mayor/Chairperson shall coordinate with the City Manager or City Attorney as to the requisite time needed for City Staff to fully research the matter(s) requested and a reasonable time in which to present the matter(s) for Council/Agency discussion and/or action. All individual Council/Agency agenda items requested shall be placed on the future agenda under New Business. Commission/Committee appointment recommendations may be made during Council/Agency Orals. Pending background check clearance, all appointments will be made at a future meeting during presentations. Commission/Committee appointments do not need a vote of the City Council unless as otherwise required by resolution or ordinance of the Agency/Council. Section 9. Standards of Decorum. The Mayor/Chairperson shall be the presiding officer at Council/Agency meetings. The Chairperson shall be the presiding officer at Agency meetings. In the absence of the Mayor/Chairperson, the Mayor Pro Tem/Vice Chairperson shall be presiding officer. It shall be the duty of the Mayor/Chairperson to ensure that the rules of decorum and procedure contained herein are observed. The presiding officer shall have the right to terminate any oral communication where such is not within the subject matter jurisdiction of the Council/Agency or is

RESOLUTION NO. 23-17 Page 10 of 12 redundant or repetitious. Debates between Council/Agency members and the public should be discouraged Council/Agency Members: Council/Agency members shall conduct themselves in an orderly, professional, and businesslike manner to ensure that the business of the City shall be attended to efficiently and thoroughly and to ensure that the integrity of the deliberative process of the Council/Agency is maintained at all times. Council/Agency members shall maintain a polite, respectful, and courteous manner when addressing one another, the City Staff, and members of the public during Council/Agency meetings. City staff shall not engage in dialogue with members of the public during City Council meetings and shall limit conversations between themselves as much as possible. City Staff shall direct all comments and presentations to the Council/Agency and/or Presiding Officer. When addressed by a Council/Agency member, Staff shall respond in a polite, professional, and courteous manner. All requests to speak by members of the City Staff shall be made to the Presiding Officer. Speakers shall not engage in willful conduct which interrupts the meeting or interferes with the orderly conduct of the meeting. Any speaker who becomes boisterous while addressing the Council/Agency or who otherwise disrupts the orderly conduct of the Council/Agency business shall be called to order by the Mayor/Chairperson. If the conduct continues, the Mayor/Chairperson may bar the speaker from speaking and/or attending the meeting. Any disruption of the meeting shall be addressed in a manner consistent with AB 1100. Section 10. Enforcement of Decorum. The Chief of Police, or his/her designee shall be sergeant-at-arms of the Council/Agency meetings. The sergeant-at-arms shall carry out all orders and instructions given by the presiding officer for the purpose of maintaining order and decorum at Council/Agency meetings. The sergeant-of-arms shall enforce the rules of decorum and remove and/or arrest any person upon the direction of the Presiding Officer, or upon his or her own discretion, as applicable. Section 11. Handbook of Procedural Rules. The council shall adopt by resolution a handbook of procedural rules governing any aspect of the conduct of meetings and hearings for the council and its standing committees, including but not limited to agenda requirements, the order of business, rules of order, rules of evidence, closed session procedures and rules for public participation in meetings. The handbook of procedural rules shall be deemed guidelines and failure to comply with any procedural rule shall not be the basis for challenge to or invalidation of any action of the council, nor shall they be construed to create any independent remedy or right of action of any kind.

RESOLUTION NO. 23-17 Page 11 of 12 SECTION 2. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall certify to the passage and adoption of this resolution. This Resolution shall remain in effect until the City Council conducts a study session and adopts a final Resolution setting the Rules of Order of the City Council/Agency meetings. SECTION 3. This Resolution to the extent that any provision is inconsistent with previous Resolutions Nos. 89-70, 06-22, 11-89 and 19-124, which adopted rules of conduct for City Council and Successor Agency meetings shall regulate and control the conduct of City Council/Agency meetings. APPROVED AND ADOPTED THIS 22nd DAY OF FEBRUARY 2023. _______________________________ David N. Torres, Mayor ATTEST: APPROVED AS TO FORM: ________________________________ ________________________________ Christopher Jimenez, City Clerk Arnold M. Alvarez-Glasman, City Attorney STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS: CITY OF MONTEBELLO ) I, Christopher Jimenez, City Clerk of the City of Montebello, County of Los Angeles, State of California, hereby certify that the foregoing Resolution No. 23-17 was passed and adopted by the City Council of the City of Montebello, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 22nd day of February 2023 and that said Resolution was adopted by the following vote, to-wit: AYES: NOES:

RESOLUTION NO. 23-17 Page 12 of 12 ABSTAIN: ABSENT: The undersigned, City Clerk of the City of Montebello, does hereby attest and certify that the foregoing Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of said City which was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof. DATE: Christopher Jimenez, City Clerk