Berkeley: “Conflict of interest corrupts Berkeley’s public housing privatization scheme,” by Lynda Carson, San Francisco Bayview, May 27, 2010
On Friday, April 23, ICF International’s vice president, Carole Norris from the multi-national’s corporate office in San Francisco, could be found at the North Berkeley Senior Center pushing for the termination of Berkeley’s public housing program from her lofty position as the chair of the Berkeley Housing Authority (BHA).
BHA Chair Norris of ICF International initiated the actions taking place to terminate Berkeley’s public housing program, set in motion the process to privatize Berkeley’s 75 public housing units and is seeking a way to leverage financing for the privatization scheme by grabbing much needed Section 8 voucher subsidies from the poor. The BHA is expecting approval from HUD to dispose of its public housing by May or June.
New York: “Tenants and Landlords Criticize Paterson’s Rent Regulation Proposal,” by Cara Buckley, The New York Times, May 26, 2010
Gov. David A. Paterson proposed changes to housing laws on Wednesday that would make it harder for landlords to lift apartments out of rent regulation but would also override a landmark pro-tenant court ruling so that it could not apply in future cases.
Under existing rules, landlords of rent-stabilized apartments can begin charging market rates when apartments become vacant and monthly rents hit $2,000. Citing “a chaotic housing market,” the governor is suggesting that the cap be raised to $3,000. Mr. Paterson’s changes would also reverse aspects of the New York Court of Appeals ruling in 2009 that said the owners of Stuyvesant Town and Peter Cooper Village had improperly charged market rates on some apartments while receiving tax breaks for making renovations.
San Francisco: “Parkmerced in default,” by Andrew S. Ross, San Francisco Chronicle, May 25, 2010
The commercial real estate meltdown has caught up with one of the largest apartment complexes in the country — San Francisco’s Parkmerced.
The complex’s owner is due to announce that the loan on the property is in default.
“Parkmerced and its lenders engaged a special servicer (a company that specializes in handling loans in default) to support the payments of the loan on the property,” said Seth Mallen, an executive vice president of Stellar Management, a co-owner of Parkmerced, in a statement to be released Wednesday.
The statement did not disclose the amount owed, much of it in October, but real estate analysts have said there are two notes due amounting to $500 million, or more.
New York: “Vanishing Treasure: The Rent-Regulated Apartment,” by Christine Haughney, The New York Times, May 24, 2010
Rent-controlled and rent-stabilized apartments carry mythic significance to New Yorkers starved for space. These are the high-ceiling homes featured in Woody Allen movies, the places secured by celebrities like Carly Simon, Cyndi Lauper and Ed Koch.
They are the reason that Monica on “Friends” was able to afford her apartment on a chef’s salary.
Of course, Monica is a fictional character, but awe-inspiring, teeth-clenching deals still do exist. An informal survey of some major landlords and real estate agencies turned up an Upper East Side woman paying $156.20 for two conjoined studios, a Lower East Side man paying $60 a month for a walk-up, and octogenarians and nonagenarians sprinkled through Little Italy paying $58 to $102 a month.
Santa Monica: “Rent wars rage on,” by Bill Bauer, Santa Monica Daily Press, May 24, 2010
Santa Monica’s gonzo Action Apartment Association is up to its old tricks. They’ve filed another lawsuit in Santa Monica Superior Court challenging Santa Monica’s 31-year-old rent control laws. And, yes Virginia, it’s an election year.
Action’s latest complaint contends that apartment owners haven’t been allowed to “pass through” to tenants the full cost of five property tax surcharges established since 1979 when rent control took effect.
Los Angeles: “L.A. council blocks rent freeze, triggering protests,” by Phil Willon and Joel Rubin, Los Angeles Times, May 22, 2010
The Los Angeles City Council on Friday effectively scuttled a proposed four-month freeze on rent increases in the city, igniting a chaotic protest by tenant rights advocates inside the City Hall chambers that led to three arrests.
The proposed ordinance would have prevented owners of 630,000 rent-controlled apartments from raising rents between now and Oct. 31 to provide a respite for tenants buffeted by the recession. Instead, the council voted 10 to 5 to send the measure to a committee for further study, a procedural move killing the proposed freeze and allowing landlords to raise rents by up to 3% on July 1.
