Is the city getting in the way of its own affordable housing goals? One developer thinks so

Heritage Housing Partners blames the city for its lingering affordable housing listings

TRD LOS ANGELES /
Jun.June 26, 2017 10:30 AM

Don’t blame the player, blame the game.

That’s what Heritage Housing Partners wants you to know about its Whittier affordable condo project, which has had trouble finding buyers that meet the city’s restrictive income qualifications.
The condos on the corner of Comstock Avenue and Penn Street hit the market last year but only seven of the 11 units have sold, the Pasadena Star News reported.

The developer blames the slow process on the qualifiable income margin dictated by city officials. For instance, a family of four can could buy a condo at the building only if it reported income between $69,450 and $77,750.

“We have a lot of people interested but getting that sweet spot is tough,” said Heritage Housing’s executive director, Charles Loveman. “It’s finding a needle in a haystack.”

Buyers are also deterred by the city’s limits on refinancing and reselling, he added. A homeowner cannot resell the condo unless the new buyer also meets the income qualifications.

 

Heritage received $2.3 million from the city to build the condos. The Pasadena developer was also gifted the land, which is worth $1.8 million. A recent report found that L.A. is the single most unaffordable city in the United States for both renters and buyers. [PSN]Cathaleen Chen


Related Articles

arrow_forward_ios
Garcetti bans residential rent increases on rent-controlled units in LA
(Credit:iStockphoto)

As schools, work shut down, Garcetti puts moratorium on evictions

As schools, work shut down, Garcetti puts moratorium on evictions
Gavin Newsom signed bills to facilitate backyard home construction.

Yes, in my backyard: Brokers say new accessory dwelling unit law will reduce barriers to building

Yes, in my backyard: Brokers say new accessory dwelling unit law will reduce barriers to building
From left: Paul Habibi and Henry Manoucheri

“A very dangerous precedent:” Real estate industry reacts to NY’s sweeping rent reform measures

“A very dangerous precedent:” Real estate industry reacts to NY’s sweeping rent reform measures
Mitsui Fudosan’s DTLA tower project faces renewed opposition

Mitsui Fudosan’s DTLA tower project faces renewed opposition

Mitsui Fudosan’s DTLA tower project faces renewed opposition
Here are the latest under 50-unit resi projects proposed in LA

Here are the latest under 50-unit resi projects proposed in LA

Here are the latest under 50-unit resi projects proposed in LA
Gov. Jerry Brown signs housing bills into law

Gov. Jerry Brown signs housing bills
into law

Gov. Jerry Brown signs housing bills
into law
59% of LA voters have considered moving because of high rents: report  

59% of LA voters have considered moving because of high rents: report  

59% of LA voters have considered moving because of high rents: report  
Lawmakers amend housing bills to gain more support

Lawmakers amend housing bills to gain
more support

Lawmakers amend housing bills to gain
more support
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...