Michael ([info]nebris) wrote in [info]los_angeles,
@ 2007-03-23 18:24:00
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Current mood: Militant

Elderly Face Eviction;
This is a building that CES has been organizing the tenants at to prevent their eviction and preserve the affordable housing. The complex had a HUD subsidized flex mortgage on it, which expired a couple of years ago without anyone being aware of, until the tenants contacted CES. Because it was a "flex" HUD subsidized mortgage, instead of a regular HUD subsidized mortgage, the tenants were not eligible for "enhanced" Section 8 vouchers, which who have guaranteed their right to remain, as long as Congress provided funding, and would have required the owner to accept the vouchers. Unfortunately, this is not the case and, thus, we face the story that follows.

Saturday, March 17, 2007
BY KERRY CAVANAUGH, Staff Writer
LA DAILY NEWS

RESEDA - A long-standing fight over Los Angeles ' subsidized housing program has spilled into the San Fernando Valley , where more than a dozen low-income and senior renters at a Reseda complex risk being evicted from their homes.

The Reseda Village Green tenants, mostly elderly and disabled, receive federal Section 8 subsidies to help pay their rent. But the landlord has stopped accepting the government checks and is demanding that the renters pay the full amount themselves - or get out.

"I don't know what I'd do if I had to leave," said Wilda Harmon, who is 89 and unable to walk. She relies on the Section 8 program to pay $485 of the $929 monthly rent for her one-bedroom apartment.

"I've looked in the paper and talked to people, and there's not a lot out there. Some of the places that rent for this price are not livable. I couldn't stand it."

The scenario in Reseda is playing out across Los Angeles , where rents continue to rise and apartment vacancy rates remain low. As a result, many landlords seeking to find higher-paying tenants are opting out of the bureaucratic government program.

Attorneys representing apartment owners say a court ruling last year allows landlords to get out of the Section 8 business. But tenant advocates and housing officials say the some landlords are breaking the law in the process.

Caught in the middle of the dispute are tenants like Harmon and Trudee Whetstone, who have been given three days to pay their rent themselves or get out.

Whetstone, 73, who has emphysema and gets by on Social Security, said she'll have to sleep on her daughter's couch if she is evicted.

The Los Angeles Housing Authority now pays $682 a month toward Whetstone's rent on a small one-bedroom unit. If Whetstone wants to stay, her landlord has warned, she'll have to pay the full $910 a month rent herself.

"I may have to move at a moment's notice. It takes away your whole confidence, and when you're older, it's worse," she said.

Legal morass

Munger Tolles & Olson, a law firm that is working pro bono, and the Legal Aid Foundation of Los Angeles have warned the women's landlord that he cannot simply refuse to accept Section 8 checks, then evict them for nonpayment.

To legally evict tenants from a rent-controlled building - like Reseda Village Green - the landlord must meet stringent criteria and pay tenants thousands of dollars in relocation money, the attorneys said.

The landlord, West Los Angeles-based Danmour & Associates and its owner, Daniel T. Alvy, did not return repeated calls.

Christian Abasto, a housing attorney with the Legal Aid Foundation, said Danmour is trying to get around rent control laws and pricey relocation costs.

"Our position is that Section 8 voucher tenants, who are most vulnerable and needy, should have equal rent-control rights to tenants not on Section 8," Abasto said.

But the Apartment of Association of Greater Los Angeles has argued that evicting a rent-controlled tenant is so difficult that landlords essentially become trapped in Section 8 contracts.

"(The city has) obligated an eternal contract," said Arnie Corlin, vice president of the association.

His group believes that's illegal and has advised landlords who want to terminate their Section 8 contracts to just send the monthly checks back to the city Housing Authority.

The authority administers the program for the city, which receives about $380 million a year from the U.S. Department of Housing and Urban Development for Section 8 vouchers.

The city has roughly 40,000 Section 8 vouchers for families.

But battles over the program have flared since at least 2002, when city leaders declared an affordable-housing crisis in Los Angeles .

That year, the city Housing Authority reported landlords terminated 6,000 Section 8 contracts, forcing low-income and disabled tenants to find new homes in an increasingly expensive rental market.

Tenants' rights advocates argued that landlords were terminating the contracts to get rent-controlled tenants out so they could re-lease their units for more money.

In response, the City Council passed an ordinance prohibiting landlords from canceling Section 8 contracts and collecting the full rent from tenants. The apartment association sued and last year won its case in The California Supreme Court.

The association's Corlin argues the City Council and mayor are not addressing a major reason landlords are getting out of the Section 8 business: a tangled bureaucracy that results in late rent payments and delays processing annual rent increases.

"It has nothing to do with tenants; it has to do with the management of the program," Corlin said.

The Housing Authority has acknowledged problems with its Section 8 unit and is trying to make the system less cumbersome without violating federal law.

"This is a heavily regulated program. Every step, there is a rule for what we have to do," said Housing Authority Section 8 Director Lourdes Castro-Ramirez.

Yet the city and landlords continue to fight over what protections - if any - should be given to rent-controlled tenants like those at Reseda Village Green.

Tenants' fears

Recently, a half-dozen elderly and disabled tenants gathered in Whetstone's apartment to share their concerns about the threatened eviction.

While 15 tenants have received notices so far, there are 50 Section 8 tenants in the complex - and they fear they will be next.

"Do you know how hard it is to find a place that takes Section 8 that is nice, like this?" said Fimi Safiri, 88, who has not gotten notice that her Section 8 contract is being canceled but worries she will.

Safiri said Section 8 pays $689 of her $997 monthly rent.

"I have been here 18 years and I have not heard a shout or a loud voice or anybody being trouble," said Safiri, who uses a walker to get around. "We all love each other. We're very close.

COALITION for ECONOMIC SURVIVAL (CES)
514 Shatto Place, Suite 270 Los Angeles , CA 90020
Tel: 213-252-4411 * Fax: 213-252-4422
Email: contactces@earthlink.net
Web site: http://www.CESinAction.org




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[info]betnoir
2007-03-24 07:10 pm UTC (link)
My quetion is: How do these landlords get INTO renting Section 8 buildings?

Is this a mandate from the city?

Because otherwise, at least from the apartment association people quoted here, why WOULD they?

Unless the city tells them that they have no other choice.

(Reply to this) (Thread)


[info]nebris
2007-03-25 03:22 am UTC (link)
Years ago, there was actually an apartment surplus in LA. There had been an economic downturn and basically, landlords had priced many of the renters out of the market. So Section 8 was very attractive in that it filled apartments, garnered tax breaks, and the money was guaranteed by the govt.

Now that the market has shifted, the landlords want to break those contracts by screaming 'property rights'. That is their hypocrisy. If a renter tried the same thing on them, their ass would be on the sidewalk in 30 days. But this is just a symptom of a larger problems.

Just one of the major underlying socio-economic problems here is that renters cannot take a tax deduction on rent payments. Franky, I think that's unconstitutional, but legislation to allow that gets shot down over and over again.

In this country, if you don't own property, you are functionally a second class citizen. And the present socio-economic trends are relegating a majority of Americans to that status.

~M~

(Reply to this) (Parent)

Managers / Owner Point of view
(Anonymous)
2007-10-08 06:44 am UTC (link)
My parents own a 8 unit apartment, and I curently manage it. Let me say this, if we knew what we were getting into we would have never bought a rent controled property. First off, rent control is so unfair and wrong, it is stealing money from one group of people and giving it to others, when most of them can afford to pay more or at market rate. The Apartment was purchased in 2000 and the building was built in the 1920's. The tenants paid about $450 to $650 for a large one bedroom in the mid wilshire area of LA. I found out later in the last 20 years, there were 5 different owners, and i understand why know. This property is such a high mainatence property you cant believe it, termite damage, sewer pipes need to replace, water pipes need to be replaced, roof needs to be redone. So Basically what happened is that before rent control it was well maintained, neighborhood was ok, somewhere in 1979-1980 period. Then rent conrol came about becuase of high inflation because of the oil crisis. The old owner died, a few years later and his son took ownership but he didnt know how to repair it himself and hired contractors/plumbers/etc.. to make repairs and figured it wasnt worth it and did some cosmetic work and sold to next owner. The next owner took it over and noticed it need a lot of maintance due to age and also mostly cause renters very rearly take good care of there units, and it is very difficult to evict in LA under rent control. So probably did a makeup job and sold to next owner etc... until we got it. I went thru hell with this property. The tenants treat the owner, my parents like crap, like if they owned it, most of the tenants have lived there for 15 to 30 years and in a sense i understand how they feel and given they have seen so many owners sell. Unfortunaly for them, i became manager, because my parents didnt want the headaches of management any more and property values have gone up they wanted to sell and get out like the previous owners. But since i was not working at the time, i took full management. This building needed some work, and required about 100K+ to fix plumbing, roof etc... Found out you can do a major rehab and evict everyone and pay relocation fee of $2000/$4000 and you can get new tenants with market rate, this happened sometime in 2002/2003. My parents refused because they payed $250K for the property and spending $110K+ was not smart. I understand there reasoning but i tried to persuade them, didnt work. Then soon after the city of LA stoped the major rehab as a reason for eviction and eventually changed it so you can only charge 10% more for new tenants after major rehab. So basically after you spend all the money for major rehab ($110K) i can only charge tenants 10% of $450-600, which is like $45-60, thats stupid didnt even try talking my parents into that one but i got pissed at them for not doing it before. So time passed, and the dam property was a major headache, tenants were being assholes, had a Inpection from housing come over, got cited, spent about $4500 on repairs(cosmetic bullshit and everyone knows it). So basically i ended up doing what every other owner did, just come by once a month to pick up rent check and when tenants called for repairs. Wasnt a joy too manage, but a headache, I actually hated going to pick up the rent, i wished i had no tenants and it was all vacant. Can you believe that, but its true. I finally got tired of this, and evicted them all slowly. One died of natural causes, one saved up money and bought a condo before property prices went thru the roof. Others i bribed, others threatened them with stuff i know they were doing but could not prove in court. Know i'm fixing up the place, and can ask for market rent, twice the rent i got before. My parents and i regret every buying rent control property, and if we had an opportunity to do it over again we would have spent our money elswhere.

P.S Rent control sounds good, but in the long run it will ruin neighborhoods and make the housing problem worst and more important its STEALING and you know it.

(Reply to this) (Thread)

its STEALING and you know it
[info]nebris
2007-10-08 07:04 am UTC (link)
Capitalism and Government is broken. Period. All the resistance to allowing rent to be a tax deduction is just one small symptom.

Go spend a night in the New Images shelter down on Skid Row among the mentally ill, the broken Vets, and those who lost their housing because their jobs vanished, and then you can talk to me.

~M~

(Reply to this) (Parent)


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