2026-04-21 CC Agenda Packet - ITEM E19 - Park VistaPark Vista:
State of the Union
Tim Whelan for the El Segundo Senior
Citizen Housing Corporation Board
April 21, 2026
Background
Current State
• � Future Challenges
Options
Request of City Council
Park Vista Background
• Senior living facility owned by the City of El Segundo
Built in 1987
• 97 residential units
• Rent for new rentals at 60% of market rate per month
o 1 bedroom monthly = now $1,635.00 vs $1,487.00 in 2024 vs
$1,486.00 in 2023, $1,152.00 in 2022
o Studio monthly = now $1,295.00vs $1,039.00 in 2024 vs
$1,039.00/month in 2023, $846.00 in 2022.
• On average 5-7 units turn each year
• Approximately 70% of 97 units not paying 50% of market rates.
Park Vista Background (2)
• Recently, rent increases of 2% have been passed annually The last
instruction from City Council was an automatic 2% increase a year.
• Wait list of over 75 people
• What is the purpose of Park Vista?
1. Board Bylaws
Provide affordable housing opportunities for El Segundo Seniors
Promote the common good and general welfare of Senior
Residents of the City of El Segundo
2. Plan of Operations
Provide a Quality Living Opportunity at an Affordable Cost
Current State
The Good News?
Following an October Property Condition Assessment of Park Vista the
City prepared a 20-year forecast showing Park Vista would be
financially stable through 2045
The Catch?
The forecast was conditioned on: 1) continued 2% annual rental raises for
current senior residents; and 2) a continuing annual contribution of $200k
from the City to the City's 504 Fund for Senior Housing
Without the contributions Park Vista is operating in the red by 2040
Future Challenges 1
The cost
of capital
expenditures, building
maintenance, and building
materials
has gone
up substantially
from
year to year.
• Beginning in 2029 projected capital expenditures per year range from
$200k - $765k a year.
• Despite conservative projections unforeseen operational cost increases
for things like upgraded security and insurance in California's volatile
insurance market eat into the projected Park Vista budget/forecast.
s $50,000.00 projected as a place holder for 2026 is already earmarked for
improvements to the buildings gated entry, security, etc.
Future Challenges 2
• Over the past few years the Board has recommended that the City charge
new tenants 60% of market rates for like units.
• Even with the staggering increase in the rental market prices in El Segundo
and the South Bay the Board believes that 65% of market rate is needed to
continue to operate Park Vista as planned.
• Per the Plan of Operations Park Vista is supposed to 1) operate off its own
rental income; and 2) hold a replacement reserve of 10% of operating
expense + 2 years of capital.
• Lately we're seeing more frequently El Segundo senior residents pass on
moving into Park Vista because they ""can't afford it" or its "too expensive."
OPTIONS
Financials 1 - assumes 2% CPI and $200K from
the City -held 504 funds annually
Park Vista 20•vear Forecast (Scenario: S200k annual contribution from GF 2026.2%CPI Rent Increase)
2026
2027
2028
2029
2030
2031
2032
2033
2034
0�35
2036
2037
2038
2039
2040
2041
2042
2043
2044
20455
Revenue
$1,176,746
$1,231,567
$1,297,494
$1,307,320
51,367,B96
$1,430.836
$1,495,035
$1,560,517
$1,624,910
$1,693,038
$1,762,529
51,833,4D9
$1,905,708
$1,979,452
$2,054,671
52,131,394
$2,209,652
$2,289.475
$2,370,895
$2,453,942
Expenses
159%115)
(S990.363)
(51.027,1u% 151.06S.933)
IS1.10S,6021 ISl.14b,9241
IS1.189.9151 (51.2341111
151.711,575)
t51,330.3141
(51.111.0911
(51.434.0171
151-319,350)
tS1.547,0421
(SI.b11 4131
(SI,670.ISSI
161.7116,7101
151801 It, .
7.';46.N341
Net
sn%411
s241.t04
SMAX
S741J10
262 S,2%
SZM912
S705,060
$32S.686
SM31.31S
f361.724
5311,431
399 S.392
S416,357
432,
$410
SM3,2S1
S461.235
$03.942
S41S6K
5491112
_,;
SS07131
Capital Expense
ISS010001
ISS0,000)
1550.0001
1$361.9221
1SS94A311
ISS61.4651
(516Sd321
t5464.1251
(S317,059)
(5221.87SI
15729,7051
(S2M,2491
IS392.6M)
(5213A1SI
(S120,4101
fS261 V61
ISMI.Iii
152904WI
(S2MO,0001
11200.OD01
Transfer in From Fund
504
s0
So
50
so
50
50
5o
so
50
So
s0
$0
s1
s0
50
so
SO
so
s0
50
Return to Equity
S110.431
S1922M
$209,636
(5124.SM)
IS322A79)
ISSM M31
15460.2721
(Stw"91
IS41.7241
$13M"
$153.733
St2S.L63
S1473S
$199.995
5122,8L
5192.929
$192.112
$19S.20
$397 112
S307131
Beginning Equity
52,344,408
52,514,838
$2,706,043
$2,915,678
$2,791,142
$2,468,704
$1,889,151
$1,428.879
$1,290,240
$1,246,516
$1,380,412
$1,532,146
$1,661,289
$1,785,007
$1,9B5,002
$2,107,830
$2,300,75B
$2,492,870
$2,688,077
$2,985,199
Ending Equity
S1s14838
$1706.043
$2915678
$7791142
SZ*A704
$IAM s1
$14261 r9
SI290,240
S3.241,S16
$SAWU
S1533146
S1661219
$1.719A07
S4915,M
$2107.030
S2.3M7S$
$2493.870
s2.f01,077
$2.9/S.189
$3.297.127
Transfer in From Fund
001
$200,000
$0
$D
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$D
50
$0
$0
s0
City's 504 Fund
$1,490,916
$3,480,916
$1,480,916
$1.490,916
$1,480,916
$1,480,916
$1,480,916
$1,480,916
$1,490,916
$1,480,915
$1,480,916
$2,480,916
$1,490,916
51,480,916
$1.480.916
$1,490,916
$1,480,916
51,480,916
$1,480,916
53.480.916
T4W iarikAwW W q
—
Park Vista
$3,995,754
$4,186,959
$4,396,594
$4,272,056
$3,949,620
$3,370,067
$2,909,795
$7.771,256
$2,727,432
$2,161,328
$3,013,062
$3,142,205
$3,265,923
$3A65,911
$3,511,746
$3,782,674
$3,973,786
$4,161,993
$4,466,105
$4,773,243
Recommended
Reserve: 10%of
operating expense i 2
years of Capital
$195,632
$199,036
$518,707
$1,057,248
$1,558,758
$1,743,489
$1,348,654
$974,867
$744,044
$591,564
$638,063
$706,290
$673,989
$707.549
$749,877
$717,152
$455,401
$470,861
5387,378
5394.680
Over or (under)
recommended
reserves
$3,800,123
$3,987,922
53,877,887
$3,214,810
$2,390.862
$1,626,577
51,561,140
$1,796.289
$1,983.381
$2.269.764
$2,374.999
S2A35.915
$2,591.934
$2.758,369
52.838 868
53,064,522
53.519 385
$3,698-132
54,078 727
$4-378,563
Revenue Assumptions: 2%increase m rents (2022-20451, 2%in parking lee every year, 4 urn Is turning over per year 1 new tenants assessed at 65% of market rate beginning in 2023 (2023 - 2042)
Expense Assumptions: 2% annual increase for management centracl, 3% for utilities (water at 5%), 5% far all other expenses
Capital Assumptions Based on the City's independent facility assess men plan of Park Vista; conducted by the City's Public Works Department
Financials 2 - assumes 0% CPI and $0 annual contribution
from the City -held 504 funds
Park Vista 20-year Forecast (Scenario: $0 annual contribution from GF 2026 to 2045 and 0%[PI Rent Increase)
Revenue
2026
$1,176,746
2027
$1,209 551
2029
$1,242,364
2029
51,237,985
2030
$1,273,215
2031
51 309,653
2032
$1,346,301
2033
$1,382,557
2034
$1,416,622
2035
$1,453,096
2036
$1,489,561
2037
$1,526,074
2038
$1.562,578
2039
S1,599,091
2040
$1,635,615
2041
$1,672.150
2042
$1,708,695
2043
$1,745,251
2044
$1,781,818
2045
$1,818,396
Expenses
(5956.31$1
159%.3631
451,037,8491
iS1.065.9331
(51.105.602)
(SI.I46.9241
1S1.189.w S) 1S3.134.631)
151261.575)
151,3300141
(SI.381,0911
(S1.434,0171
61.489,3SO)
451,547,041)
(51.611.4131
(51,6MIS9)
1$l.735. i101
151.W3.766i
(SSa73,7821
(51.9468041
Net
5220.431
Stl9,lft
$214,515
5172,OS3
5367.613
S162.729
SIS6,126
$147.726
513S.047
SIM783
$108,490
MA I,
573.226
$520So
S24202
$1990
($2701S)
IV IS30
(591.9N)
(SI144M
Capital Expense
155AO=
ISSO.0001
I550,000)
(536S.9221
ISS84,7331
(5861.4651
(5765.312)
IS464.3251
15187.059)
IS2768761
(S729705)
($270,249)
($292,639)
(S71742S1
IS110,4101
IS266,3061
IS761630)
0790,4611
(S7o0.0(101
-52000001
Transfer in From Fund
504
So
so
So
So
So
So
$o
50
SO
SO
$0
S46,453
S219.411
SI60.366
S296-227
S266,116
$271 143
$0
$0
$0
Return to Equity
$170,431
$169.1111111
SIW,SIS
($193.670)
15417,1201
($700,716)
(S609,206)
IS316,S991
(S2S2,012)
IS106,04S1
(5121,21S)
(S131,7391
(SO)
51
(SI)
s0
(S16,702)
IS349,016)
15291 964)
(5326.4031
Beginning Equity
$2,344,408
$2,514,938
$2,684.027
$2,848,542
$2,654,672
$2,237,552
$1,536,817
$927,610
$611,011
$359,000
$252,954
5131,739
(so)
(so)
SO
(So)
50
(536,702)
($385,720)
(5677,6841
Ending Equity
$2,514,838
$2,684,027
$2,048,542
$2,654,672
$2,237,552
$1,536,817
$927,610
$611,011
$359,000
$252,954
$131,739
($0)
(50)
$0
(SO)
SO
($36.702)
(S385.720)
19677,6841
(91.006,092)
Transfer in From Fund
001
$0
$o
$0
$0
$0
$0
$0
50
$0
$0
$0
s0
$0
$0
$0
So
$0
$0
$0
$o
City', 504 Fund
$1,280,916
$1,290,916
$1,280,916
$1,280,916
$1,290,916
$1,280,916
$1,280,916
$1,280,916
$1,280,916
$1,280,916
$1,280,916
$1,234,463
$1,015,052
$B34,686
$538,459
$272,143
$0
$0
$0
$0
Total Funds Available to
Park Vista
$3,79S,754
$3.964,943
$4.129.458
$3,935,593
53.518.466
52.817,733
52.208.526
$1,891.977
51.639,916
$2.533.670
51.412,65S
$1,234.463
S1.015,052
$934.646
S539.459
S272,143
1$36.7021
-
WSS,720t
IS677,684)
151.006,0921
Recommended
Reserve: 30%u1
opera Ling expense + 2
years of capital
$195,632
$199.036
$518,707
$1,057,248
$1,558,758
$1,743,489
$1,34B,654
$974,867
$744,044
$591,564
$638,063
$706,290
$673,989
$707,549
$749,877
$717,152
$455,401
$470,961
$387.378
S394.680
Over or (under)
recommended
reserves
_ $3,600,123
$3,765,906
$3,610,751
$2,876,340
$1,959,710
$1,074,243
$859,872
$917,060
$895,871
$942,306
$774,592
$528,173
$341,062
$127,137
(5211,419)
($445,009)
($492,103)
($856,581)
(51,065,062)
($1,400,772)
Revenue Assumptions: 0%increase in rents (2022-2045), 2%in parking fee every year, 4 units turning over per year & new tenants assessed at 65% of market rate beginning in 2023 (2023 - 2045)
Expense Assumptions: 2% annual increase for management contract, 3%for utilities (water at 5%), 5%for all other expenses
Capital Assumptions: Based on the City's independent facility assessment plan of Park Vista; conducted by the Clty's Public Works Department
Request of City Council
• Stay the Course:
1) Continue to raise current tenant rental rates at 2% a year;
2) Continue to charge new tenants 60% of current market rates;
3) Continue to contribute $200k to the City's 504 Fund for Senior Housing.
• Evaluate from year-to-year whether Park Vista can provide 'more affordable"
housing opportunities by discontinuing current tenant rental rate increases,
lowering the percentage of market rate charged to new tenants, etc.