Attachment No. 1
1 1/26/2026`1 FOOTER GOES HERE 1
252 E. 4TH ST. PROPERTY
POMONA
OPTIONS FOR
DEVELOPMENT AND/OR
DISPOSITION
(Photo Courtesy of Geoffrey Starns)
1/26/2026`1 FOOTER GOES HERE 2
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
1 2
1/27/2026
2 1/26/2026`1 FOOTER GOES HERE 3
Development and/or Disposition Options for
252 E. 4th St. Property
1. Rehabilitate
2. Sell
- Use land and grant funds to develop new affordable housing
3. Demolish
- Use proceeds from sale to purchase a comparable property for affordable housing
1/26/2026`1 FOOTER GOES HERE 4
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
3 4
1/27/2026
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
1/26/2026 FOOTER GOES HERE 5
252 E. 4TH St. Property
Option 1 – REHABILITATE
1/26/2026 252 E. 4th St, Project 6
Option 1 – REHABILITATE
Remove Hazards
Mold Asbestos Lead Based Paint
5 6
1/27/2026
4 1/26/2026 252 E. 4th Street Project 7
Option 1 – REHABILITATE
Replace roof
Exterior Interior
1/26/2026 FOOTER GOES HERE 8
Option 1 – REHABILITATE
Restore Historic Attributes
Change 57 windows to wood frame;
restore 43 windows
Clay Tiled Roof
7 8
1/27/2026
5 1/26/2026 FOOTER GOES HERE 9
Option 1 – REHABILITATE
Completely Replace Mechanical, Electrical, Plumbing
Plumbing
Electrical
(Fuse boxes)
Water
Supply
1/26/2026 FOOTER GOES HERE 10
Option 1 – REHABILITATE
Completely Renovate Kitchen and Bathrooms
9 10
1/27/2026
6 1/26/2026 FOOTER GOES HERE 11
Option 1 – REHABILITATE
Demo Plaster/Drywall and Repair Damaged Floor Joist
1/26/2026
Pricing Based on Lowest Bid Received for the Project
12 Option 1 - REHABILITATE
Scope of Work and Impact of Prevailing Wage Requirements Per industry standard labor-to-material cost ratio,
prevailing wage accounts for 35% of labor portion
TOTALPW Cost
Added
LaborMaterialsWORK 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
1/27/2026
7 1/26/2026 FOOTER GOES HERE 13
252 E. 4TH St. Property
Option 2 – 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 1/26/2026 FOOTER GOES HERE 14
252 E. 4TH St. Property
Option 2 – 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)
13 14
1/27/2026
8 Property Details
Sold for $1,935,000
Built in 1971
10 units
Projected Development Cost
Hazards T esting: $ 25,000
Rehabilitation Cost: $ 1,468,260
Relocation Cost: $ 800,000
Other Cost: $ 246,422
TOTAL ACQUISITION & DEVELOPMENT COST: $4,474,682
1/26/2026 FOOTER GOES HERE 15
252 E. 4TH St. Property
Option 2 – SELL & USE PROCEEDS TO ACQUIRE A COMPARABLE
PROPERTY FOR USE AS AFFORDABLE HOUSING
572 San Francisco
1/26/2026 FOOTER GOES HERE 16
252 E. 4TH St. Property
Option 3 – DEMOLISH & USE LAND AND GRANT FUNDS
TOWARD DEVELOPING 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
1/27/2026
9 Option 1 – Rehabilitate the Property and Award Construction 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 funding; and, City utilized HOME-ARP funds to relocate families. If the project does not result in completed housing units, the City will have to return funds to HUD, using non-federal dollars (General Funds).
1/26/2026 FOOTER GOES HERE 17
252 E. 4TH St. Property
Recommendation
1/26/2026 18
252 E. 4TH STREET PROPERTY
OPTIONS FOR DEVELOPMENT
AND/OR DISPOSITION
252 E. 4TH STREET PROPERTY
OPTIONS FOR DEVELOPMENT
AND/OR DISPOSITION
17 18