Seem’s way back in 1986. LA helped fund an apartment building. signed agreement said the developer would have some of the apartments at lower rates for 30 years.
30 years is up, building owner sends out notices that the agreement with the City has ended and rents will be increasing. City tries to negotiate with building owner, negotiations fail.
So what’s the city’s answer?
and on the required procedures to acquire the
property through eminent domain, and to report on the use of eminent domain to acquire other
similarly situated housing developments whose affordable housing covenants are now reaching an
expiration date, which would effectively remove affordability requirements, and allowthe property
owner to raise rents to market-rate.
That’s right ladies and gentlemen. The city doesn’t like the agreement they agree’d to, and now they want to seize private property through eminent domain! Not just the one property that has fulfilled their obligation to the city, but to any and all developers who don’t want to extend the agreement!
Right to the source, the city!
And how much could LA be on the hook for paying in eminent domain?
Jacob Woocher, an organizer with the Los Angeles Tenants Union, said he thinks Hillside Villa could be worth as much as much as $15 million, roughly $2 million more than the city was looking to spend to ensure that rents on the property stay low for another 10 years.
$15 million just to aquire the building. Wonder if they will let the wealthy people in the non subsudized units continue to live in the building, or will they be evicted by the city and the units opened up to only low income people?
This my friends is why liberals should NEVER be in office. Case study number 8 million.
After reading the story- the city might not actually have the power to do it.
And there is something to be said about sticking to agreements…if one side is going to renege on an agreement because it didn’t go their way, they’re going to have a hard time entering into future agreements.
If affordable housing is the issue, the city should look to solve that issue…not use some dubious legal tactics to force developers to solve the issue for them.
I don’t have an opinion on agreeing with this, and would want to side with private investors, withstanding more under standing of how it was originally funded. A deal is a deal.
I don’t know if there is a solution to replacing affordable housing, I think that is why they are taking desperate measures. Southern California can’t really increase population density, it is already choked…