CVAR's August-September Cities Report is here! Reporting all the latest from the Greater San Gabriel Valley, our late summer edition covers the most recent real estate industry updates from our local region.

CITIES REPORT - August/September 2022

LOS ANGELES COUNTY

The Los AngeleCunty Board of Supervisors voted Tuesday September 13th to definitively end pandemic-era tenantprotections at the end of the year.

The decision means that after Dec. 31, many renters in the nation’s largest county will no longer be protected from eviction if they cannot pay rent due to economic hardship related to COVID-19.

That Dec. 31 date isn’t new. Under the current rules passed by county leaders in January,COVID-19 tenant protections are only scheduled to last through Dec. 31. However, the county has repeatedly extended the protections as previous deadlines approached.

The September 13thvote is the first to explicitly set Dec. 31 as the “defined end date” for thecounty’s pandemic tenant protections. Supervisors Sheila Kuehl and Hilda Soliscast the two dissenting votes, saying it was too soon to commit to ending allpandemic tenant protections.

 

AZUSA

Azusa Light and Water(ALW) recommends reducing the outdoor watering schedule to two days per week effective immediately until further notice and continuing to implement other water use restrictions. These restrictions have been in place since 2017, which helped ALW customers meet the 20% water use reduction required by the State.

Customers who do not comply will receive a warning, followed by escalating fines up to $200 for residential users and up to $600 for commercial users.

Drought Watering Schedule (Effective  until further notice)

Residential:          

     Even Address                Thursday, Sunday

     Odd Address                 Wednesday, Saturday

Commercial/HOA:         Monday, Friday

 

Watering by a hand-held hose with a positive shut-off nozzle, a bucket or watering can; a rain barrel; a drip irrigation system; or reclaimed, recycled or gray wastewater may be done on any day.

All mandatory water conservation measures (Water Rule 21) will continue to be enforced, including:

• No excess runoff

• No watering between 9 AM to 6 PM

• Watering is limited to 30 minutes per location per day

• No washing down hardscape

• Vehicle handwashing only with bucket and hose with positive shutoff nozzle

• No watering during rain events or 48 hours afterwards

In order to facilitate recharge of the local groundwater basin in preparation for future water shortage periods, water users shall actively seek to limit the total water usage to an amount equal to or less than the corresponding month of the prior year.

 

BALDWIN PARK

The homeless population in the City of Baldwin Park decreased by 50% between January 2020 and February 2022, according to point-in-time homeless count data released by the Los Angeles Homeless Services Authority (LAHSA) on September 8.

Baldwin Park counted 275 homeless individuals during the 2022 point-in-time homeless count held in February, a sharp decrease from the 556 individuals counted in 2020. The City reported 263 homeless individuals in 2019 and 288 homeless persons in 2018, according to LAHSA.

Last November, Baldwin Park opened Esperanza Villa, a 25-bed tiny home village for unhoused individuals and the San Gabriel Valley’s first tiny home village. Esperanza Villa, which has already transitioned five residents into permanent housing, is a model for how cities can expand emergency non-congregate shelter services in their communities. Following its own example, Baldwin Park further expands its commitment to finding shelter for families in need as it prepares to open Serenity Homes, the City’s second tiny home village, which will include 50 transitional housing units for families and opens on September 24.

Earlier this year, the City purchased the 28,000 sq. ft. property that will become the site of Serenity Homes. San Gabriel Valley Regional Housing Trust (SGVRHT) provided funding to construct the tiny home community.

Funding from the San Gabriel Valley Council of Governments (SGVCOG), LAHSA and the American Rescue Plan Act (APRA) will enable experienced homeless services provider City Net to operate the tiny home village and connect neighbors experiencing homelessness to transformative care and innovative housing solutions.

The new tiny home village will provide family counseling, food assistance, medical and mental health assessments, job placements and more services to future tenants.

The City directs federal Community Development Block Grant (CDBG) funding to East San Gabriel Valley Coalition for the Homeless, Domestic Violence Advocate, Church of the Redeemer Food Bank and Oath for County Foundation, all of which provide important services to homeless individuals in Baldwin Park.

Additionally Baldwin Park has created the HOME Investment Partnership Program. HOME funding will soon create homeownership opportunities thanks to an agreement between the City and San Gabriel Valley Habitat for Humanity to implement a program to acquire and rehabilitate housing in Baldwin Park.

As part of the Mid-Valley Collaborative on Homelessness, Baldwin Park, in collaboration with the cities of South El Monte and El Monte, also developed a five-year homeless plan to coordinate local efforts to respond to homelessness. The plan positions Baldwin Park and its neighbors to access funding and participate in activities that help prevent people from becoming homeless, expand access to workforce development programs and explore opportunities to increase the number of affordable and supportive housing units.

The three cities have already received $1,074,820 through the Los Angeles County Measure Homeless Implementation Plan to increase the supply of interim and permanent housing for people experiencing homelessness through the following activities.

To create systematic change, Baldwin Park has also invested in developing action plans that address barriers to affordable housing development. Through policies that intend to overcome barriers in zoning, property acquisition and other areas, Baldwin Park has charted a course to create more affordable housing in its effort to end homelessness in Baldwin Park.

To learn more about the City’s housing action plan, visit baldwinpark.com.

 

CHINO HILLS

In response to record-breaking drought conditions and the Governor’s Executive Order calling for an overall 20 to 30 percent reduction in water usage across California, the City of Chino Hills has declared a Stage III High Conservation Alert that went into effect on June 1, in accordance with the Water Conservation Ordinance. Residents and businesses are being asked to conserve 30 percent and will have to reduce outdoor watering to two days per week and shall not exceed 15 minutes per watering station, except for drip or micro-spray irrigation systems, which shall not exceed 30 minutes per station; and are prohibited from watering between the hours of 9 am and 6 pm.    

Your Outdoor Watering Days and Times are Designated Based on Your Street Address:

Residential addresses ending in an even number may use water on Wednesdays and Saturdays (except from 9 am to 6 pm)

Residential addresses ending in an odd number may use water on Thursdays and Sundays (except from 9 am to 6 pm)

Non-residential addresses may use water on Tuesdays and Fridays (except from 9 am to 6 pm)

There are additional restrictions associated with the Stage III High Water Conservation Alert:

Prohibits application of water to hard surfaces such as sidewalks, driveways, and parking areas, etc., or irrigation causing runoff

Requires the repair of leaks within 48 hours

Prohibits the use of water hose without a shutoff valve

Prohibits irrigating outdoor landscape after measurable rain (1/10 inch or more within a 48 hour period)

Limits pool-filling to the above-specified irrigation days

Decorative water fountains at commercial properties may only be operated if the water is part of a re-circulating system

Vehicles, trailers, boats, and livestock can be washed with a hand-held hose equipped with a shut-off nozzle

Restaurants may not serve water unless the customer requests water

Water may not runoff or leak from landscaped areas to streets, sidewalks, or other paved areas due to incorrectly directed or maintained sprinklers or overwatering

Fire hydrants may only be used for firefighting*

*An exception may be made for construction use through a City-designated meter when recycled water is not available.

 

Stage III Alert Does Not Apply Where Recycled Water is Being Used

The Stage III Water Alert outdoor irrigation requirements do not apply to construction projects or areas where recycled water flowing through purple pipes is used. Many of the City’s parks in the southern part of Chino Hills are irrigated using recycled water so residents may see parks being irrigated on different days than those included in the Alert. City parks, facilities, and public spaces that are not irrigated using recycled water will be irrigated on a schedule in accordance with the new Stage III Water Alert.

 

COVINA

BH Real Estate Group has completed the disposition of a restaurant property located at 1477 N. Azusa Ave. in Covina. HB Property Management acquired the asset for $4.6 million.

Pollo Campero, a fast-casual restaurant, signed a 15-year,triple-net ground lease for the property. Construction is almost complete on the restaurant, which is slated to open at the end of September.

 

DIAMOND BAR

The 2022 Diamond Bar Local Hazard Mitigation Plan establishes the City's strategy to put into practice improvements and programs to lessen community impacts in the event of natural hazardous events. A requirement of the Federal Disaster Mitigation Act of 2000 (DMA 2K), the Plan comprehensively identifies potential hazards, the extent of the risks posed by hazards, the vulnerabilities of the city to those hazards and the action the City will take to mitigate or reduce the potential impact of the hazards.

The City Council adopted the 2022 Local Hazard Mitigation Plan by Resolution 2022-43. The Plan aims to minimize, or eliminate the long-term risk to human life and property from known hazards, like droughts, floods, wildfires, and other major disasters.

The 2022 Local Hazard Mitigation Plan is incorporated into the General Plan Public Safety Element by reference. The City will perform an annual update to the Plan, as well as a comprehensive update every five years.  

For information about the 2022 Local Hazard Mitigation Plan, contact Assistant to the City Manager Anthony Santos, by email or phone atasantos@diamondbarca.gov or (909) 839-7013.

 

EL MONTE

Majestic Asset Management, Inc. has purchased the 249,000-square-foot Telsta Situated on 8 acres; the building consists of 67% office and 33% industrial, with a total of 627 parking spaces, and features close proximity to I-10, I-605 and SR-60.

The County of Los Angeles leases the entire 248,961-square-foot building and recently renewed its lease for the property. The renewal also included an 86,961-square-foot expansion of industrial space. The tenant houses its public health, public social services and children and family services departments at the facility. The building is located at  9320 Telstar Avenue.

 

LA VERNE

The City of La Verne successfully closed a privately placed lease financing that provides the first financing to an Enhanced Infrastructure Financing District (EIFD).

Kosmont Transactions Services served as Municipal Advisor to the City. Kosmont Companies assisted the City with formation of the EIFD.

One of the first formed EIFDs, the La Verne EIFD is using Tax Increment Financing to pay for the cost of installing various public improvements in the City’s Old Town Area in advance of opening Metro’s Foothill Gold (L) Line station. The public facilities are designed to ensure that high quality private development takes place, as envisioned by the Old Town La Verne Specific Plan.

The City will loan the lease proceeds to the EIFD which in turn repays the loan with the Tax Increment generated by the private projects, making this the first Tax Increment based EIFD financing since the dissolution of RDAs (redevelopment agencies) 10 years ago.

 

ONTARIO

The City of Ontario is currently in Stage 3 of the Water Conservation Plan. The Ontario Municipal Utilities Company does ask that customers continue to use water efficiently as California is in a drought.

The Metropolitan Water District recently issued a requirement that agencies receiving water from the State Water Project (imported water) would have to reduce irrigation to 1 day a week. The Inland Empire Utilities Agency (IEUA) is the wholesale agency that provides imported water to the City of Ontario. IEUA member agencies are exempt from the 1 day per week irrigation requirement.

 

Stage 3 Water Use Restrictions

The following includes Stage 3 Water Use Restrictions as well as some of the Stage 1 and Stage 2 Water Use Restrictions that are also in effect:

 

No person shall irrigate between the hours of 9:00 AM and 4:00 PM and no person shall irrigate any more than 4 days a week.

Except as required for health or sanitary purposes, washing of sidewalks, driveways or other paved surfaces is prohibited.

Washing of motor vehicles shall only be done with a hand-held bucket or a hose equipped with a positive shutoff nozzle.

All water customers shall promptly repair all leaks from indoor or outdoor plumbing fixtures.

No water customer shall cause water to run off landscape areas into adjoining streets, sidewalks, or other paved areas.

All customers are prohibited from irrigating during and within 48 hours following measurable rainfall.

All persons are prohibited from irrigating with potable water any ornamental turf on public street medians.

 

POMONA

Senate Bill 2 (SB2), known as the Building Homes and Jobs Act, and supported by the California Association of REALTORS®, established the Permanent Local Housing Allocation (PLHA) Program and instituted a $75 recording fee on real estate transactions. Its goal is to provide a permanent funding source to cities and counties to help meet the unmet need for affordable housing and increase the supply of affordable housing units. For entitlement jurisdictions such as the City of Pomona, the amount of PLHA funding is based on the formula funding for the Community Development Block Grant (CDBG) Program for a 5-year period. In this regard, the City is eligible to receive $6,410,670 over 5 years.  It is important to note that the 5-year funding is an estimate since the funding source is from real estate transactions, which may fluctuate from year to year.  The City’s PLHA allocation for 2020 is $1,068,445; 2021 Allocation is $1,660,695; and, 2022 Allocation is $1,827,543.

To receive the funds, the City must submit a 5-Year PLHA Plan City that describes the following: a) the manner in which PLHA funds will be used; b) how investments will be prioritized to increase the supply of housing for households at or below 60% of the area median income; c) how thePlan is consistent with the programs set forth in the City’s Housing Element;and d) evidence that the Plan was approved and adopted by the City of PomonaCouncil.  The City Council approved andadopted the PLHA 5-Year Plan on July 20, 2020. The Plan distributed the PLHA annual allocation between two (2) eligibleactivities: a) the predevelopment, development, acquisition and rehabilitationof affordable rental and ownership housing, including Accessory Dwelling Units(ADUs); and, 2) Homeownership opportunities, including down payment assistance.

 

On August 2, 2021, the City Council approved an amendment tothe 5 Year PLHA Plan to add another activity: matching portions of funds to theSan Gabriel Regional Housing Trust Funds. Beginning Year 2, the Plan re-allocated 40% of the annual funding tothis activity.

 

The City is now amending the 5-Year Plan.  Beginning Year 3, the amended Plan willre-allocate 40% of the annual PLHA funding from matching portions of funds tothe San Gabriel Housing Trust Fund, to the predevelopment, development,acquisition and rehabilitation of affordable rental and ownership housing.  The balance will remain with the creation ofAccessory Dwelling Units (40% of annual funds) and Homeownership assistance (20%of annual funds).

 

The 5- Year PLHA Plan amendment is available in the linkbelow for public comment from September 2, 2022 through October 3, 2022. Publiccomments should be submitted no later than 6:00 p.m. on October 2, 2022 toMaria Siacunco, Housing Grants Supervisor at Maria.Siacunco@pomonaca.gov or bymail at:

 

Maria Siacunco

Neighborhood Services Department – Housing Services Division

City of Pomona

505 S. Garey Avenue

Pomona, CA 91766

 

RANCHO CUCAMONGA

The 55-and-older Village on 5th apartment complex in RanchoCucamonga has been sold to investors for $97 million.

The buyer was the multifamily property investment firm Greystar Real Estate Partners in Charleston, S.C. The seller was Acacia CapitalCorp. in San Mateo.

The 264-unit, three-story complex includes four sprawling residential buildings over 218,508 square feet. The community was completed in2005 on nearly 10 acres and has a mix of 12 studios, 135 one-bed, one-bath units, 35 two-bed, one-bath units 84 two-bed, two-bath apartments.

Amenities include an onsite salon, fitness center and spa, clubhouse and swimming pool.

Rent at the complex ranges from $1,880 to $2,755.

 

SAN DIMAS

According to the California Department of Food and Agriculture, San Dimas has confirmed cases of a disease impacting citrus trees Asian Citrus Psyllid and Huanglongbing in California (californiacitrusthreat.org).  The disease is called Huanglongbing (HLB) and is not a threat to people or animals.

To limit the spread of the deadly citrus plant disease, a citrus quarantine has been placed into effect in Los Angeles County, including San Dimas.  As such, you may not:

Move citrus plant material out of HLB quarantine boundaries. Host material includes all plant parts, including stems and leaves. If fruit is free of all stems and leaves and washed thoroughly, residents may share their backyard harvest inside of the HLB quarantine area in small quantities.

Different rules apply to commercial growers, fruit sellers, and vendors. Contact your local California Department of Food and Agriculture or county agricultural commissioner’s office for details.

Move equipment such as pruning tools used to harvest citrus plant material out of an HLB quarantine.

Purchase a citrus tree not grown in an approvedACP-resistant structure. Retailers and nurseries without ACP-resistant structures within the HLB quarantine area are prohibited from selling citrus in these areas.

If you suspect your tree is infected with HLB, act fast.  Call the free statewide pest hotline at 800-491-1899 to speak to an expert. For other inquiries, use the online contact form. https://californiacitrusthreat.org/contact/

 

UPLAND

The Upland City Council voted unanimously on August 8th to place a Sales Tax Measure on the November2022 ballot. The Measure would enact a 1-cent local sales tax until ended byvoters, providing a stable source of locally controlled funds.

If voters say yes, the measure will provide an estimated $16 million a year to address significant public infrastructure and public safety needs within the City of Upland.

The proposed Measure was placed on the ballot following significant community engagement with residents and business owners. An independent City Manager’s Advisory Panel, who reviewed Uplands’ financial documents, prior budget balancing measures and fiscal task force reports, staffing levels, and infrastructure materials issued recommendations to the City Council on potential solutions to address local financial and service needs. Placing a local funding measure on the ballot for Upland voters to consider was among their recommendations.

The funding Measure includes strict fiscal accountability provisions, including independent citizens’ oversight, public disclosure of all spending and annual independent financial audits. No measure funds can be taken by the county, state, or federal governments.

 

WEST COVINA

With online shopping slowing in the post-pandemic economy, Amazon.com has hit pause on 49 distribution warehouses across the U.S., including industrial sites in West Covina and Oceanside.

The Seattle-based e-commerce giant canceled, closed or delayed opening more than 50 million square feet of warehouse space, the Orange County Register reported, citing MWPVL International. Canceled warehouses total to nine in the Golden State.

The nine nixed Amazon warehouses statewide – five of them in the Bay Area – add up to 4.4 million square feet. The company will scale back plans in West Covina, Oceanside, Hayward, San Leandro, Santa Rosa, Sonoma, Salinas and Bakersfield, according to MWPVL.

In West Covina, Amazon canceled the opening of a 177,000-square-foot delivery station. While MWPVL blamed the decision on public protests, an Amazon spokeswoman wouldn’t confirm it.

In Oceanside, the company canceled the opening of a 143,000-square-foot delivery station after it failed to obtain a permit.

Despite the cutbacks, Amazon is moving forward with development of several new, fully automated fulfillment centers. They include a 4.1-million-square foot warehouse under construction in Ontario, the biggest of the company’s delivery processing sites.

Space for Amazon’s delivery operations jumped to 379 million square feet since March 2020, up by 214 million square feet as of May.

But faced with a net loss of nearly $5.9 billion in the first half of the year, Amazon halted its expansion.

After more than doubling its warehouse capacity during the pandemic, the Seattle-based e-commerce giant announced last spring it would shed between 10 million and 30 million square feet.

Despite the cutbacks, warehouse rents continue to soar across Southern California.

Demand for commercial real estate’s “hottest sector” remains strong, especially near the ports of Los Angeles and Long Beach, according to the Pasadena Star-News.

Vince Tibone, head of industrial research at Newport Beach-based analytics firm Green Street, said warehouse demand remains strong, especially in Southern California, a market he called “the best in the nation for industrial warehouse space.”

Before the pandemic began in early 2020, online sales growth led to above-average demand for warehouse space, he said. After COVID, warehouse market rents grew 18 percent last year nationwide, and are expected to do better this year.

He said Southern California warehouse asking rents should be up 65 percent over that same two-year period, with Bay Area rents up 40 to 45 percent.