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CITY OF PALO ALTO
PLANNING & DEVELOPMENT SERVICES — CODE ENFORCEMENT
285 Hamilton Avenue, Palo Alto, California 94301
DECLARATION OF ELISA VARGAS
Code Enforcement Supervisor, City of Palo Alto
Regarding Enforcement History, Compliance Record, and Current Status at 531 Stanford Avenue, Palo Alto, California 94306
(APN: 137-01-121, 137-01-002, 137-01-003)
Case No. 24PCE-00203
I. QUALIFICATIONS AND AUTHORITY
I, Elisa Vargas, am the Code Enforcement Supervisor for the City of Palo Alto Planning & Development Services Department. I have served in municipal code enforcement and building inspection roles for nine years, including extensive service with the City of Palo Alto. I hold the Certified Code Enforcement Officer (CCEO) designation and other professional certifications recognized in the California code enforcement field. In my role as Code Enforcement Supervisor, I am responsible for the management and oversight of all code enforcement cases, including the direction of individual code enforcement officers, coordination with other City departments (including the Building Department and Fire Department), and the administration of all enforcement proceedings from initial complaint through resolution.
I have direct and personal knowledge of the enforcement case involving the property at 531 Stanford Avenue, Case No. 24PCE-00203 (the "Case"). I supervised and personally participated in the enforcement actions described herein from the case's inception through the present.
This declaration is based upon my personal observations during field inspections, my review of all case records (correspondence, inspection reports, administrative citations, and related documents maintained in City enforcement files), and my professional training and experience in California municipal code enforcement.
II. CASE INITIATION AND PRELIMINARY INVESTIGATION
Case No. 24PCE-00203 was opened by the Palo Alto Code Enforcement Division in January 2024, upon receipt of information indicating that the property at 531 Stanford Avenue was being used for residential occupancy without the requisite permits and that numerous modifications to the buildings had been made without building permits. A preliminary review of City building and planning records confirmed that no permits had been issued for any of the reported modifications and that no use and occupancy certification existed for the current use of the buildings.
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A comprehensive review of City permit records confirmed a complete absence of permits for the following uses and activities:
• Use and Occupancy: No valid use and occupancy permit for residential apartment use; the R-1 hotel permit had expired without renewal. Any owner or authorized agent who intends to change the occupancy of a building or structure shall first obtain the required permit. (CBC 111.1.1; PAMC § 16.04.190)
• Address Assignment: The buildings were being operated under the address "520 Oxford Avenue," which was never formally assigned or authorized by the City. No permits on file for an address assignment request for 520 Oxford Avenue. (CBC 502.0; PAMC §
16.04.240)
• Building Alterations: No permits obtained for extensive remodeling work throughout the buildings, including modifications to unit configurations, common areas, mechanical rooms, electrical systems, plumbing systems, and structural elements. It is unlawful for any person to erect, construct, alter, extend, repair, move, remove, demolish, or occupy any building or structure in conflict with or in violation of any provision of this code. (CBC § 114.1; PAMC § 16.04.225)
• Pool Operation: No permits for pool construction, modification, or operation. (CBC 105.1).
On January 25, 2024, Lead Code Enforcement Officer Brian Reynolds issued a formal “Request to Inspect” to Aurora Rising Inc. / Atlas Star, the identified responsible party, via Certified Mail No. 7014 2120 0001 4340 4290. That letter set a deadline of February 5, 2024, for the responsible parties to contact the City to schedule a comprehensive inspection. The letter cited the following code provisions:
• CBC R105.1 — Permits Required: Any owner or authorized agent who intends to construct, enlarge, alter, repair, move, demolish, or change the occupancy of a building or structure, or to install, enlarge, alter, repair, convert, or replace any electrical, gas, mechanical, or plumbing system, shall first obtain the required permit. • CBC § 114.1 — Unlawful Acts: It shall be unlawful for any person, firm, or corporation to erect, construct, alter, extend, repair, move, remove, demolish, or occupy any building, structure, or equipment regulated by this code in conflict with or in violation of any of its provisions.
• PAMC § 16.04.225 — Violations: It is unlawful for any person to violate any provision or to fail to comply with any requirement of PAMC Chapter 16.04. Each separate day or portion thereof during which any violation occurs shall constitute a separate offense.
Violators are subject to administrative enforcement pursuant to PAMC Chapters 1.12 and 1.16 and criminal enforcement pursuant to PAMC Chapter 1.08. • PAMC §§ 18.01.030 and 18.01.080 — Compliance with Zoning Regulations Required:
No land shall be used, and no facility, structure, or building shall be erected, constructed, enlarged, altered, moved, or used in any district except in accordance with the regulations established by the zoning title.
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Despite the January 25, 2024, Request to Inspect and the stated deadline of February 5, 2024, the responsible parties did not contact the City to schedule the required inspection. Written communications received from the responsible parties during this period included admissions that the property was being used for residential living purposes, which created both an obligation for the City to conduct a life-safety inspection and an urgent basis for action.
Following this failure to cooperate, I assumed direct supervisory oversight of the case and escalated the enforcement approach.
III. FINAL NOTICE TO INSPECT — MARCH 11, 2024
On March 11, 2024, I issued a “Final Notice to Inspect” (“Final Notice”) under my authority as Code Enforcement Supervisor, transmitted to the responsible parties via Certified Mail No. 7014 2120 0001 4340 4481, with copies to Chief Building Official George Hoyt and Fire Marshal Tamara Jasso. This notice advised the responsible parties that the City had received written admissions confirming residential use of the property and that City Code Enforcement staff required an immediate inspection to verify the absence of immediate life and safety hazards.
The Final Notice stated unambiguously that failure to cooperate could result in the City obtaining a judicial inspection warrant, 24-hour advance notice to tenants, and immediate interruption of utility services.
The Final Notice set a deadline of March 14, 2024, at 5:00 PM. This deadline was not met.
However, arrangements were ultimately made for an inspection to proceed on March 18, 2024.
IV. FIRST NOTICE OF VIOLATION — MARCH 21, 2024
Following the comprehensive inspection conducted on March 18, 2024, by myself, Chief Building Official Hoyt, and Fire Marshal Jasso, I coordinated preparation and issuance of the 1st Notice of Violation, dated March 21, 2024, transmitted via personal service, posting on subject property, and Certified Mail No. 7018 3090 0001 0801 1115, addressed to Aurora Rising Inc./Atlas Star LLC. The 1st Notice of Violation was signed by Chief Building Official Hoyt, with copies to the City Attorney's Office, Fire Marshal Jasso, and Dana Kennedy, attorney for the responsible party.
The 1st Notice of Violation documented the full scope of violations identified during the March 18, 2024, inspection, which are set forth in detail in the Declaration of Chief Building Official Hoyt and the Declaration of Fire Marshal Jasso. In summary, those violations included:
• Dilapidated and missing emergency exit signage and emergency lighting throughout the buildings.
• Dilapidated fire sprinkler and fire alarm systems, with no documentation of required testing, inspection, or maintenance.
• Unconfirmed records of testing for fire sprinklers and fire alarm systems, rendering the systems unreliable for emergency response.
• High combustible storage throughout all buildings; improper hazardous material storage creating corrosive environments; severely corroded electrical and plumbing systems.
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• Plastic film affixed to ceilings in some units and in exit stairways, creating an extreme fire propagation hazard.
• Unpermitted construction — shoring of the 2nd floor exit balcony for stability; potential structural failure of required egress path.
• Unpermitted remodeling of all hotel rooms and throughout the buildings, including unauthorized enclosure of decks, patios, and addition of roof coverings. • Unpermitted construction in electrical systems, mechanical systems, and plumbing throughout all buildings.
• Blocked egress on the Stanford Avenue side and throughout the interior; non- functioning and missing egress exits including missing and inoperable fire-rated doors. • Exposed mold growth in the basement; signs of vermin infestation; swimming pool with visible mold growth, no current Santa Clara County permits or clearances. • Inoperable elevators with expired operating certifications. • Unauthorized change of occupancy from R-1 (hotel) to R-2 (residential) without permit or approval.
The 1st Notice of Violation set the following compliance deadlines:
1. By Friday, March 22, 2024, at 5:00 PM: Fire watch services required to be in place and monitoring the building. The City conducted an inspection at the compliance deadline time to confirm.
2. By Monday, March 25, 2024, at 2:00 PM: (a) All tenants to vacate the 2nd and 3rd floors of all buildings with access restricted; (b) Smoke detectors and carbon monoxide detectors provided to all units and common occupied areas; (c) All deadbolts and paddle lock latches removed from required exit fire-rated doors; (d) All unpermitted barriers removed from exit pathways; (e) Names and addresses of all tenants in all buildings provided to the City.
3. By Tuesday, March 26, 2024, at 5:00 PM: Pool water to be tested for chemical content and a strategy/schedule submitted for draining the pool no later than March 29, 2024.
V. SECOND NOTICE OF VIOLATION — MARCH 28, 2024
A follow-up inspection conducted by City Code Enforcement and the Palo Alto Fire Department at 5:00 PM on March 22, 2024, confirmed that fire watch services were in place. A second follow-up inspection on March 25, 2024, at 2:00 PM confirmed partial compliance with the immediate life-safety corrections required by the 1st Notice of Violation: tenants had vacated upper floors, smoke and carbon monoxide detectors had been installed, deadbolts and barriers had been removed from required exits, and names and contact information for all tenants had been provided.
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Despite this partial progress, I issued the 2nd Notice of Violation on March 28, 2024, cited under PAMC §§ 16.40.010, 16.40.020, Chapter 9.56, and Chapter 1.12, setting a next compliance deadline of Tuesday, April 2, 2024, at 5:00 PM, to confirm the draining of all pool water. The 2nd Notice of Violation also reiterated the full list of outstanding building violations that had not yet been addressed and advised the responsible parties that they remained subject to all potential enforcement consequences.
VI. EMERGENCY NOTICE AND ORDER TO REPAIR OR ABATE — APRIL 2, 2024 Having determined, in coordination with Chief Building Official Hoyt, that the condition of the buildings at 531 Stanford Avenue constituted a continuing immediate danger to occupants and the public, I worked with CBO Hoyt to prepare and serve the Emergency Notice and Order to Repair or Abate ("Emergency N&O"), dated April 2, 2024, signed by CBO Hoyt and delivered via posting, first-class mail, and Certified Mail No. 7018 3090 0001 0801 1146, addressed to Aurora Rising Inc./Atlas Star and citing PAMC §§ 15.04.010, 16.40.010(a)(n)(p), 16.40.020(i)(j)(l)(m); CFC §§ 107.3, 311.2.2, 311.3; CBC § 105.1; CRC § R113.1; and CCR Title 8 § 3001.
The Emergency N&O established a compliance deadline of April 9, 2024, and formally notified the responsible parties, all tenants, and interested parties of: (1) the City's determination that the buildings were dangerous and substandard; (2) the obligation to commence remediation within five business days; (3) the availability of the temporary Firewatch solution to allow continued occupancy for up to seven calendar days; and (4) the right of each tenant to relocation benefits under California Health and Safety Code Section 17975 et seq. and PAMC Chapter 9.68.
On the same date, April 2, 2024, I coordinated the posting and service of the Notice to Tenants required by California Health and Safety Code Section 17975.1(c), which documented the relocation benefits owed to each displaced tenant on a per-unit basis:
• Return of security deposits
• Two months’ fair market rent (ranging from $4,766 for studio units to $8,022 for three- bedroom units under State law)
• Utility security deposit: $50.00
• Local renter relocation assistance under PAMC Chapter 9.68: ranging from $7,971.16 for studio units to $19,358.57 for three or more-bedroom units, with additional assistance available for tenants 60 years of age or older, disabled persons, or households with minors
VII. THIRD NOTICE OF VIOLATION AND ADMINISTRATIVE CITATIONS — APRIL 3, 2024 On April 3, 2024, following the emergency inspection conducted on April 1, 2024, which confirmed that fire watch services had been discontinued without authorization from March 31 through April 1, 2024, I issued the 3rd Notice of Violation under case number 24PCE-00203, cited under PAMC §§ 15.04.010, 15.04.040, 15.04.070, 15.04.130, 16.40.090(a)(b); CFC § 901.7;
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CBC § 114.1. This notice established a compliance deadline of Friday, April 5, 2024, at 12:00 PM, and documented the issuance of two administrative citations:
4. Administrative Citation No. TJ040324 (issued by Fire Marshal Jasso): $500.00 for the unauthorized discontinuation of fire watch services for the 24-hour period from March 31, 2024, at 5:00 PM through April 1, 2024, at 5:00 PM, in violation of PAMC Sections
15.04.010, 15.04.130, 15.04.140, and 15.04.070, and CFC Section 901.7.
5. Administrative Citation No. BA0040324 (issued by me as Code Enforcement Supervisor): $5,000.00 ($500.00 × 10 days) for failure to provide physical addresses for all identified tenants as required by the March 25, 2024, compliance deadline of the 1st Notice of Violation, in violation of PAMC §§ 16.40.010, 16.40.020, Chapter 9.56, and Chapter 1.12. This citation further advised that the $500.00 daily fine would continue to accrue until a compliant list was submitted.
I also noted in the 3rd Notice of Violation that pool water test results had been submitted by attorney Isaac Weiner on March 31, 2024, and that the results indicated chlorine levels too high for safe discharge to the sanitary system. The responsible parties were directed to retest and provide updated results to the City.
VIII. FOURTH NOTICE OF VIOLATION AND BUILDING POSTING — APRIL 9, 2024 On April 9, 2024, I issued the 4th Notice of Violation, establishing a compliance deadline of Friday, April 12, 2024, at 5:00 PM. That notice cited 2021 IPMC Appendix A (boarding standards) and PAMC § 16.04.010, and confirmed the results of follow-up inspections conducted on April 5 and April 9, 2024:
• All tenants had vacated the 2nd and 3rd floors of all buildings and access was restricted. • All unpermitted installed barriers in exit pathways were continuing to be removed. • Pool water levels were on schedule for 100% water removal by April 12, 2024. • Tenants were no longer residing in the buildings (confirmed April 9, 2024). • Efforts were underway for the removal of personal belongings and loose combustible items.
The 4th Notice of Violation also formalized the agreement reached with the responsible parties and their legal representative at the April 9, 2024 on-site meeting, specifying the conditions under which fire watch services could be discontinued, the required permanent closure steps to be completed by April 17, 2024, the requirement for periodic inspections by Code Enforcement and Fire Department to confirm continued non-occupancy, and the requirement for a Hazardous Materials Closure Permit by April 12, 2024 at 5:00 PM.
Also on April 9, 2024, at 5:00 PM, CBO Hoyt ordered the buildings to be posted with "UNSAFE — DO NOT ENTER OR OCCUPY" placards pursuant to PAMC Section 16.40.070. From that date,
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the buildings were required to be locked and secured at all times, with access permitted only during construction hours for the specific purpose of completing permanent closure activities.
IX. POST-VACATION MONITORING AND ONGOING ENFORCEMENT (2024–2025) Following the vacation of the buildings in April 2024, Code Enforcement Division maintained periodic oversight of the subject property pursuant to the direction of CBO Hoyt and as documented in the enforcement record. Field observations during this period documented conditions of concern:
• Continued deterioration and vegetation overgrowth on the Stanford Avenue frontage, compromising the building envelope.
• Damage to and unauthorized openings in the perimeter chain link fencing, indicating unauthorized access.
• Debris accumulation in the entry area of the building. • Evidence of an unauthorized tap into the property's irrigation supply line from the public water meter, potentially indicating the presence of unauthorized occupants. • A mattress, pillow, and bedding observed on the floor of what appeared to be an exterior walkway or balcony area, consistent with potential unauthorized occupancy.
These observations were documented and shared with CBO Hoyt and Fire Marshal Jasso.
Throughout 2024 and into 2025, Code Enforcement continued to monitor the required permanent closure activities. No remediation, permitting, or rehabilitation work was performed by the responsible parties. The hazardous materials closure process was the subject of multiple communications between the City, the Fire Department, and the responsible parties, with certain hazmat closure work remaining incomplete as late as August 2025. Hazmat Closure Permits 24HZM-00040 and 23FDP-00929 remained open, with the responsible parties submitting extension requests as late as August 19, 2025.
X. NOTICE AND ORDER TO DEMOLISH AND OWNER RESPONSE (2025) I worked closely with CBO Hoyt in the preparation of the Notice and Order to Demolish/Deconstruct and Remove the Buildings ("Demolition N&O"), dated October 17, 2025, issued pursuant to H&SC § 17980.6 and PAMC Chapter 16.40. I confirmed service of the Demolition N&O and the associated Certified Mail Receipt (USPS Tracking No. 9589 0710 5270 2033 2917 42). I further confirmed in writing to the responsible parties' attorney Brian O’Neill from Patterson & O’Neill, PC, that the 15-day appeal period would run from October 29, 2025.
On November 7, 2025, the firm of Patterson & O'Neill, PC, submitted a written response to the Demolition N&O raising objections including: (1) improper service; (2) the claim that the buildings do not meet the fifty-percent deterioration threshold; (3) the claim that
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deconstruction requirements do not apply to dangerous buildings; and (4) the claim that the May 18, 2026 removal deadline is unreasonable.
On November 13, 2025, a formal Appeal of the Demolition N&O was filed with the City Clerk by Stanford Orion (property manager and owner's representative), represented by attorney Brian O'Neill of Patterson & O'Neill, PC, and executed by property manager Sophia Huang. The appeal raises the same four issues as the November 7 response letter.
XI. PROFESSIONAL OPINION AND CONCLUSION
Based upon my nine years of municipal code enforcement experience — including direct personal involvement in every significant enforcement action taken at 531 Stanford Avenue from January 2024 through the present — it is my professional opinion that this case represents one of the most significant and complex code enforcement matters I have encountered in my career. The scope of the violations was extraordinary; the habitability and life safety hazards were real, severe, and well-documented; and the displacement of long-term tenants was a serious and adverse consequence compelled by the conditions created by the property owner, not by any punitive intent on the part of the City.
Throughout this enforcement action, City staff endeavored to work collaboratively with the responsible parties — providing multiple opportunities for voluntary compliance, working to identify short-term solutions that would allow tenants to remain in place while remediation was arranged, and communicating clearly at every step about what was required, why it was required, and what the consequences of noncompliance would be. The record of this case — fourteen separate enforcement communications over less than three months in early 2024, followed by nearly eighteen months of ongoing monitoring and coordination — reflects a sustained and good-faith effort by the City to achieve a resolution that protected public safety while giving the responsible parties every reasonable opportunity to comply.
The Notice and Order to Demolish was issued only after eighteen months of post-vacancy monitoring confirmed that no rehabilitation, permitting, or remediation work was undertaken by the responsible parties, and that the buildings continued to deteriorate. The City remains committed to achieving a lawful resolution that results in the safe and complete removal of these dangerous structures and the restoration of this property to a condition that is safe for the surrounding community.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct, and that this declaration is based upon my personal knowledge, professional training, and experience.
Executed on: _______________________________
_____________________________________________
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Elisa Vargas, CCEO
Code Enforcement Supervisor
Planning & Development Services Department, City of Palo Alto 285 Hamilton Avenue, Palo Alto, California 94301
(650) 885-8565