Out in Los Angeles, they’re not only dealing with a homelessness crisis but a significant lack of affordable housing for those who aren’t very wealthy. As usual, the local Democrats have been working hard to come up with a plan to combat that problem as well. One “issue” that’s come to the attention of the City Council is the Hillside Villa Apartments. For three decades, the complex has offered a number of units at rates well below market value, providing a great deal for those lucky enough to get one. This arrangement was part of deal worked out with the city when the building was first acquired by the present owner, Tom Botz.
But that deal expired last summer, meaning that the rent on those units should have gone up to the same rate being charged for the other apartments. This has made the tenants, along with some members of the City Council unhappy, so they’re working on a plan to remedy the situation. How? Simple. By seizing Mr. Botz’s property and running it themselves. (Reason)
Los Angeles politicians will make housing affordable, by force if necessary.
On Friday, City Councilmember Gil Cedillo introduced a motion that asks city staff to draft plans for using eminent domain to seize Hillside Villa Apartments, a 124-unit, privately-owned development in the city’s Chinatown neighborhood to avoid rent increases at the property.
The property is currently under an affordability covenant that requires its owner to rent out a number of its units at below-market rates. That covenant is set to expire soon, meaning rents on some 59 units will increase to market rates—which means rent hikes of up to $1,000 per unit.