City Council / Housing Authority
January 26, 2026

1/12/2026
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252 E. 4TH ST . PROPERTY
POMONA

OPTIONS FOR

DEVELOPMENT AND/OR

DISPOSITION
(Photo Courtesy of Geoffrey Starns)
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252 E. 4th St. Property
Information
• Owned by the Pomona Housing
Authority as Successor to the Pomona
Redevelopment Agency
• Built in 1928
• Land size: 0.17 acres
• Gross Building Area: 9,312 sq. ft.
• 12 units total, 6 units per floor
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ATTACHMENT NO. 1
ATTACHMENT NO. 1
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Development and/or Disposition Options for
252 E. 4th St. Property
A. Rehabilitate
B. Sell
- Use land and grant funds to develop new affordable housing C. Demolish
- Use proceeds from land sale to purchase another a comparable property for affordable housing
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Development and/or Disposition Options for
252 E. 4th St. Property

1. HOME American Rescue Plan (ARP): $2.03 M
- Homeless and at-risk of homelessness
- Targeted to tenants with incomes up to 50% of the Los Angeles area median income

2. Housing Investment Partnership (HOME) Program: $1.78 M

FUND SOURCES

3. Permanent Local Housing Allocation (PLHA) Program: $1.08 M - Targeted to tenants with incomes up to 60% of the Los Angeles area median income

4. AQ Bond Proceeds: $355K
- T enants with incomes up to 120% of the Los Angeles area median income.

Accounts for 6.7% of total funding
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3  Rehabilitation Cost = $5,264,355 (incl. 15% contingency)  Cost Considerations
 Age and condition of the property (+fire occurred in Nov. 2024)
 Presence of hazardous materials
 Property is historic
 Property will be brought up to Code
 Incremental labor cost attributable to Prevailing Wage Requirements
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252 E. 4TH St. Property
Option A – REHABILITATE
1/12/2026 252 E. 4th St, Project 6
Option A – REHABILITATE
Remove Hazards
Mold Asbestos Lead Based Paint
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4 1/12/2026 252 E. 4thStreet Project 7Option A – REHABILITATE Replace roof ExteriorInterior
1/12/2026 FOOTER GOES HERE 8Option A – REHABILITATERestore Historic AttributesChange 57 windows to wood frame; restore 43 windows Clay Tiled Roof
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5 1/12/2026 FOOTER GOES HERE 9Option A – REHABILITATE Completely Replace Mechanical, Electrical, Plumbing PlumbingElectrical(Fuse boxes) Water Supply
1/12/2026 FOOTER GOES HERE 10Option A – REHABILITATECompletely Renovate Kitchen and Bathrooms 9 10
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6 1/12/2026 FOOTER GOES HERE 11Option A – REHABILITATEDemo Plaster/Drywall and Repair Damaged Floor Joist 1/12/2026Pricing Based on Lowest Bid Received for the Project12Option A - REHABILITATEScope of Work and Impact of Prevailing Wage RequirementsPer industry standard labor-to-material cost ratio, prevailing wage accounts for 35% of labor portionTOTALPW Cost AddedLaborMaterialsWORK SCOPE$1,282,500$232,000$665,000$384,000Historic Restoration$724,1400$112,600$321,800$289,700Electrical & Plumbing$306,600$43,700$124,900$138,000HVAC / Kitchen Hood$227,000$44,000$126,200$56,800Lead, Asbestos, Mold Removal$222,300$34,600$98,800$88,900Concrete / Block Wall 11 12
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252 E. 4TH St. Property
Option B – SELL & USE PROCEEDS TO ACQUIRE A COMPARABLE

PROPERTY FOR USE AS AFFORDABLE HOUSING
 252 E 4th St Property Value
 2017 Purchase Price: $1,350,000
 2020 Appraised Value: $1,150,000
 Current Anticipated Value: Much lower price
 Factors Affecting Property Value
 Surplus Land Act – serves to delay sale of property
 Assume potential buyer will demolish the property. Requirements:
• Historic Preservation Review
• Focused Environmental Impact Report (cost $50,000 - $100,000) • Planning Commission and Council approval
These serve as disincentive to potential buyers/developers 1/12/2026 FOOTER GOES HERE 14
252 E. 4TH St. Property
Option B – SELL & USE PROCEEDS TO ACQUIRE A COMPARABLE

PROPERTY FOR USE AS AFFORDABLE HOUSING
 Purchase of Comparable Units
 Acquisition Price
 Compliance with building standards
 T esting & Remediation of Hazards
 Relocation of T enants (T emporary or Permanent)
• Permanent Relocation covers moving cost, replacement housing payment and advisory services
• Can range between $80,000 to $100,000 per household
• City paid $280,498 for 6 households relocated at 252 E. 4th St. Property  Other costs (Consultants & Landscaping)
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8 Property DetailsSold for $1,935,000Built in 197110 unitsProjected Development CostHazards T esting: $ 25,000Rehabilitation Cost: $ 1,690,500Relocation Cost: $ 800,000Other Cost: $ 246,422TOTAL ACQUISITION & DEVELOPMENT COST: $4,696,922(Excludes cost for continuing maintenance, security services and funding already invested in project)1/12/2026 FOOTER GOES HERE 15252 E. 4THSt. PropertyOption B – SELL & USE PROCEEDS TO ACQUIRE A COMPARABLE PROPERTY FOR USE AS AFFORDABLE HOUSING 572 San Francisco
1/12/2026 FOOTER GOES HERE 16252 E. 4THSt. PropertyOption C – DEMOLISH & USE LAND AND GRANT FUNDS TO DEVELOP NEW AFFORDABLE HOUSINGDemolitionInclude actual demolition cost and bid and award process to Option 2 (Demolition Considerations)New Construction of Affordable Housing Per unit cost to construction housing: $690,000 - $840,000 per OEBA- $700,712 per unit for Prisma Lofts & $819,755 per unit for Chris Hartmire PlazaNew Construction Cost for the Project: $11.04M to $13.44M for 12 market rate unitsWill require significant financial assistance and could leave land undeveloped for a considerable period 15 16
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9 Option 1 – Rehabilitate the Property and AwardConstruction Contract to Fidelity Builders, Inc. for$5,264,355Rehabilitation cost is a reasonable expense compared with alternatives and when considered within context of available Federal and State funding, and historic review & affordable housing requirementsOther options would likely lead the City back to same set of variables for a new property; but without guaranteed funding1/12/2026 FOOTER GOES HERE 17252 E. 4THSt. PropertyRecommendation 1/12/2026 18252 E. 4THSTREET PROPERTYOPTIONS FOR DEVELOPMENT AND/OR DISPOSITION252 E. 4THSTREET PROPERTYOPTIONS FOR DEVELOPMENT AND/OR DISPOSITION17 18