Market Overview

LA/Westlake--36 Rent-Stabilized Apts. Face Wrecking Ball: Press Conf. TODAY (Mon., Aug 13th, 11am) Grand View Street by MacArthur Park

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Wrecking Ball Would Destroy Beloved Bungalow Community in Westlake
Housing Two Generations of 36 Latino & Working-class Households

What: Press Conference to Oppose the Proposed Bulldozing of
Well-Maintained Low-Income Units
When: Monday, Aug. 13,
11:00am
Where: 741-742
S. Grand View Street
, Los Angeles
Translator Provided
for Spanish Media

Replacing one group of low-income tenants with another -- by evicting
and destroying their housing to build other housing for other
low-income tenants -- 
will NEVER solve LA's
affordability housing crisis.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180813005344/en/

A wrecking ball would destroy a beloved bungalow community in Westlake, two generations of 36 Latino ...

A wrecking ball would destroy a beloved bungalow community in Westlake, two generations of 36 Latino and working-class households (Photo: Business Wire)

A broad array of affordable housing advocacy groups will challenge a
proposed project at the site of the targeted demolition, on Monday,
August 13, at 11 am at 741-742
S. Grand View Street
 Los Angeles.

The proposed 100-unit project, first
reported in Curbed LA
, should be rejected by the City of Los Angeles
because the math and human disruption is unconscionable.

This proposed affordable housing project turns the concept of
"affordable housing" upside-down:

— The proposed $640,000/unit is enough to BUY a large house in the
Valley, Eastside or South LA.

— By destroying 36 solid, well-maintained bungalow units, the project
will kill permanently rent-stabilized housing (RSO) that is home
to dozens of people.

— The math is unconscionable no matter how you look at it:

1. This "100-unit project" has a net of only 64 units after destroying
36 units. At $640,000 per unit those 64 additional units would actually
cost $1M per unit.

2. Figured another way, after destroying 36 well-maintained
homes worth $525,000 each, the cost of the net 64 new units
would work out to $829,000 each.

Speakers include:

  • Rev. Kelvin Sauls, former Senior Pastor, Holman United
    Methodist Church; Los Angeles Housing Services Authority
    Commissioner; Faith Community Organizer for Yes on 10
  • Jill Stewart, Executive Director, Coalition to Preserve LA
  • Susan Hunter, Los Angeles Tenants Union
  • Tenants of the bungalows

Los Angeles Tenants Union has conducted in-depth interviews with the
mostly Spanish-speaking households. Tenants of the bungalows will be
speaking at the press conference.

Reform is Needed:

When rent-stabilized units are destroyed with City Hall permission,
developers should be required to pay relocation fees closer to $100,000
per household. Fees of $10,000 or $20,000 do not keep families off the
streets.

According to some tenants, agents of the developer have informed tenants
that if they are not legal citizens, they will not qualify for
affordable units at another location and will not qualify for relocation
help.

The City of Los Angeles has not sufficiently reformed its relocation
oversight amidst the city's worst eviction crisis in decades.

Media Background Sheet:

BACKGROUND ON DESTRUCTION OF RENT-STABILIZED HOUSING IN LOS ANGELES

THREE YEARS AGO: June 2015, the L.A. City Council
Housing Committee Issues a Report & Motion to Preserve L.A.'s
Rent-Controlled Housing Stock

TODAY: L.A. is Killing Rent-Stabilized Units Like
There's No Tomorrow

June 2015 City Council File 5-0728 Summarized Housing Report:

"... Many development proposals are targeting property with existing
residential development already in place. Typically this puts at risk
the City's affordable housing stock and dislocates tenants, many of whom
cannot afford increased rents."

And, with state law placing constraints on which units
can be rent-controlled and housing construction subsidy limitations
impeding the production of an adequate number of new restricted
affordable rental units, the preservation of existing units covered by
the City's RSO becomes a policy and pragmatic imperative.

For the purposes of ensuring affordability,
diversity, and fairness for the renters who constitute a majority of the
City's population, the City should develop mechanisms that preserve as
many RSO units as is feasible
. Council referred Motion to
the Housing Committee for consideration.

On June 10, 2015, Council considered Motion (Koretz - O'Farrell,
Council file No. 14-0268-S4) relative to amending the RSO and the City's
Ellis Act provisions. Motion states that real estate values in Los
Angeles have been rising steadily at rates that have outstripped the
rate of economic growth. This trend has had an alarming impact on the
rental housing market in the City. Los Angeles has been identified as
the least affordable housing market in the United States.

THE SITUATION NOW: The 2015 motion to preserve RSO
housing, by Councilmembers Paul Koretz and Mitch O'Farrell, was replaced
in 2017 by a far narrower ordinance that helps only tenants who are
displaced by condo conversions.

The loss of RSO apartments and bungalows continues across L.A. We
have a city of people living in fear of homelessness.

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