Oak Park Apartments - looking north from Olive. Image from Google Street View.
The 156-unit Oak Park apartment complex between 125 West Olive Avenue and 150 West Colorado Boulevard may be turned into 100% low-income housing.
Foothill Oak Park Apartments, LLC, a newly formed non‐profit, needs $65 million to buy and refurbish the complex. That money would come from a bond authorized by the city, but the city would simply "serve as the conduit issuer of the bonds" for the money which would be provided by the California Statewide Communities Development Authority and which would be repaid solely through revenue earned by the apartment complex. The staff report says there would be no financial obligation on the part of the city. The city council will consider the matter at its Tuesday, April 1 meeting. Details.
- Brad Haugaard
For anyone that wants to listen, this is a really bad purchase price. The idea behind it is commendable but you are way over paying for it. The rents are out of line. You are way over paying for it and as a steward of the city you are a fool to support this. I’ll add numbers to it later.
ReplyDeleteLook at skid row housing trust and what became of them. You need way more information about operating expenses, property management, reserves, maintenance etc.
ReplyDeleteSo it says there is no fiscal impact to the city. But what happens if the company buying it defaults or doesn’t have enough money to maintain property?
ReplyDeleteQuick calculations for you:
Current market monthly rent collected is $337,428. $2,163 x 156 units
If I use $65 million at 4% rate, 30 year amortization monthly p&i is $312,405
Vacancy factor 5% =$16k a month
Reserves 3% =$10k
Management 5%=$16k
Property tax?
Utilities, repairs etc?
Gross rents at market $337k (This will be reduced per guidelines)
Debt $312k ((guess on finance terms)
Monthly expenses 42k
337-354= loss of 17k a month
It only gets worse as rent will be decreased. It would be prudent for the council to ask more questions about the terms and if there is a shortfall where that money comes from.
Bad idea unless there is more info
I think this is amazing! So many people have had to leave this beautiful city due to not being able to afford the rent. The enrollment rates have dropped, and it is have a huge adverse affect on our children’s quality of education. Low income doesn’t equate to skid row. That’s a completely different type of housing complex. Everyone deserves the chance to live in a safe place. I hope this actually goes through.
ReplyDeleteNo one said it equated to skid row the area of Los Angeles. Skid row housing trust had thousands of low income housing across LA including new buildings and they went broke for a myriad of reasons.
DeleteWell aid 🙌
DeleteI use to live kitty corner from that complex. Too many ambulance and fire dept calls. It will drop property values and bring more of a nuisance to already established neighborhood
DeleteYou live where you can afford to. If other people pay for you it's socialism. Or communism
DeleteWow! so many people named anonymous here in Monrovia...Hard to know which is which!
ReplyDeleteSo many anonymous because liberals are evil and vindicative. Put your name and there's retribution. I've lived here for a long time it's obvious most people don't remember when Monrovia had it's revitalization. The city before was ghetto. And they eliminated liquor stores, bars, protested planned parenthood. It was a conservative move that saved this city. And now the city is backing it again, who's getting kickbacks?? This is the worst move and cost the city can ever make. Who's going to pay this bond, the taxpayer. How on earth can this be a non profit? This is all bull shit. Why does the city have to get involved? What's happened to the citys BS housing by the gold line? If there is no fiscal impact why should the city be involved at all?? What's with the city conduit to the. "Non profit"? Fraud fraud fraud!!! A NEWLY FORMED NON PROFIT?? I CALL BS!! WHOSE RELATIVE IS IT??
ReplyDeleteYou're in a cult, sir.
DeleteWith the amount of corruption that city management has displayed in some of its recent ventures, I would take a very hard look at anything that is out of normal city duties.
ReplyDelete