Oakland's housing renovation proposals place 100s at risk of displacement

Oakland's housing renovation proposals place 100s at risk of displacement

By Lynda Carson February 18, 2009

Oakland -- Throughout recent past years, many low-income renters have bitterly complained that they have not managed to get into so-called affordable housing developments because they do not earn enough money.

During November 2008, eleven applications for NOFA funds (Notice of Funding Availability for Preservation and Rehabilitation of Existing Affordable Rental Housing) were submitted to the City requesting $13 million in funding to renovate, rehabilitate or preserve a number of low-income housing sites citywide, placing hundreds of low-income renters at risk of being displaced from their housing.

The NOFA applications were all required to be submitted to Oakland's Community and Economic Development Agency (CEDA) by no later than 4pm on November 17, 2008 and the current NOFA funding requests will go before CEDA for a vote during a 2pm meeting on March 10. The NOFA funding requests will then go before the full City Council for a vote a week later on March 17.

As a followup, more NOFA applications will be filed during the next few months of 2009 by the so-called affordable housing developers needing more funding to complete their proposed renovations or rehabilitation projects because the current available NOFA funding streams did not offer enough money to complete the developers' wish list. The City Council will again have to vote on the followup on-going NOFA funding requests a few months from now when more NOFA funds become available, and after more applications are filed.

Added together, the current batch of NOFA applications have proposals that may end up displacing hundreds of low-income tenants from their housing in the near future, and currently there is not enough vacant affordable housing available in Oakland to cover the relocation needs of those that may be displaced. Currently the rental housing vacancy rates are 2.7 percent in Oakland, and only 2.5 percent in Alameda County according to NationalRelocation.com.

Among the low-income tenants that may be placed at risk of losing their housing include residents at Marin Way Court (20 units), Eldridge Gonaway Commons (40 units), Slim Jenkins Court (32 units), Drachma Housing (19 units), Hugh Taylor House (44 units), Oakland Point (9 buildings of low-income renters), Effie's House (20 units), and Marcus Garvey Commons (22 family townhomes). Each housing site is currently occupied.

Furthermore, Unity Council seeks $1 million in NOFA funding to rehabilitate 2 properties including Casa Velasco and Posada de Colores, with 100 residents or more residing at the combined properties. Unity Council claims that they cannot raise the rents high enough to cover the costs of the needed renovations at both properties.

In addition, Project Pride located at 2545 San Pablo Ave, also wants to rehabilitate 20 units in an existing vacant residential building and seeks $1.2 million dollars in NOFA funding, and Resources for Community Development (RCD) is also seeking $840,000 in funding to rehabilitate Drachma Housing, a 14 unit scattered site managed by the John Stewart Company. See more on RCD below.

During recent months the City of Oakland has also asked a number of developers to work with the City in taking over properties that have been abandoned by Oakland Community Housing, INC. (OCHI), which may also include other housing sites such as Drasnin Manor, Nueva Vista, San Antonio Terrace and a number of other abandoned OCHI housing developments in Oakland.

According to documents from a November 3, 2008 meeting of the Central City East Project Area Committee (CCEPAC), they reveal that the East Bay Asian Local Development Corporation (EBALDC) is requesting around $1.7 million in NOFA funding to rehabilitate Effie's House at 829 E. 19th St., because EBALDC is only willing to use $300,000 of their own funds to renovate the building.

EBALDC has developed over 1,000 units of so-called affording housing units and townhouses during the past 32 years, and as of June 30, 2007 documents show that EBALDC's total assets were $64,743,467, which grew by $16,688,580 since June 1, 2006 when their total assets were still only listed at $48,054,887. EBALDC had $8,720,550 in cash or the equivalent on hand as of June 2007, according to documents.

CCEPAC documents also reveal that according to EBALDC's Mary C. Lucero-Dorst, all the residents of Effie's House will have to eventually be relocated and that EBALDC plans to split them up so that one half of the tenants will be relocated for 6 months during renovations, and then they will switch and have the other half of the tenants relocated. Documents reveal that the relocation costs were not factored into EBALDC's proposals brought before CCEPAC at that time during the November 3 meeting, and since then EBALDC filed it's NOFA application/s with CEDA on November 17, 2008.

Currently, Effie's House tenants have not received any notices from EBALDC detailing the renovation plans, nor has written information about the NOFA funding application been offered, and the residents have not received any notices mentioning plans to relocate the tenants from their housing. There have not been any meetings at Effie's House to discuss plans to renovate the building, and the tenants have so far been been left in the dark.

EBALDC is also seeking $724,000 in NOFA funds for the Hugh Taylor House at 1975 Seminary Ave., for major renovations including the replacement of the roof and sewer system. The Hugh Taylor House has 43 rental units of low-income tenants and the building is currently occupied.

Documents also reveal that EBALDC will apply for or did apply for $1.3 million in NOFA funding to rehabilitate Slim Jenkins Court at 700 Willow St., a low-income housing project with 32 two-bedroom units of low-income housing which was abandoned by Oakland Community Housing, Inc. (OCHI), during 2008. Documents do not reveal whether they have taken over control of Slim Jenkins Court, or not.

According to documents, EBALDC plans to seek NOFA-2 funds for a total of 6 projects and currently their top priority is Effie's House.

Resources for Community Development (RCD) another so-called affordable housing developer is also seeking $1.2 million in NOFA funds according to CCEPAC documents to renovate Marin Way Court by addressing some dry rot, water and soil erosion, including a roof replacement. Marin Way Court was not owned by RCD as of November 3, 2008, and was abandoned by Oakland Community Housing, INC. (OCHI) and the John Stewart Company in recent months, and houses 20 units of low-income renters.

RCD is also asking for $2.4 million in NOFA funding to renovate Eldridge Gonaway Commons (built in 1982), another abandoned OCHI housing development with 40 units of low-income renters in an effort to address dry rot issues, and the replacement of exterior structural support and garage doors. CCEPAC member Sheryl Walton expressed concerns about RCD seeking funding for properties that are only around 25 years old, through CCEPAC.

In addition, RCD is seeking developer fees and legal fees in regards to the acquisition and legal issues arising from it's desire to take over some of OCHI's abandoned properties and on November 3, Eugene Smith of CCEPAC questioned whether this would be a welcome takeover, and wondered whether they (CCEPAC) should be involved with RCD before the property was actually legally acquired by RCD, for the planned renovations of the property.

During the November 3 meeting, CCEPAC members have expressed questions and concerns about the legal status of OCHI's abandoned properties and the methods the City is using, according to documents. Many of the concerns are in regards to the legal and financial issues, the other lien holders of OCHI properties and their actions or concerns, including the City's methods in addressing their questions.

It's no secret that the residents of numerous OCHI residential housing locations in Oakland refused to move from their housing during 2008, after being threatened with displacement by the housing developer and the City.

OCHI a so-called affordable housing developer of Oakland has dissolved since then and has abandoned the tenants at it's 19 property developments, including such locations as the California Hotel, Marin Way Court and Slim Jenkins Court, and was sued for $2.5 million in recent months by the tenants of the 150 room historic California Hotel after OCHI tried to unlawfully evict them from their housing and threatened to cut off the water and utilities.

On August 6, 2008 53 residents of the California Hotel and their attorney John Murcko filed a $53 million claim against the City of Oakland - believing that some city officials may have been involved in a scheme to violate their rights, and displace them from their housing.

As recent as October 29, 2008 Alameda County Judge Richard Keller ruled in favor of the tenants of the California Hotel by keeping in place a Restraining Order against OCHI, stopping the corrupt housing developer from evicting the tenants or shutting of their utilities while appointing Anne Omura, Executive Director of the Eviction Defense Center as a trustee to operate the historic hotel for the court after OCHI abandoned the tenants.

For a number of months during 2008, Anne Omura of the Eviction Defense Center along with Just Cause Oakland assisted the tenants of the California Hotel in managing the property and providing for their own security in the building at 3501 San Pablo.

Alameda Superior Court Judge Keller stated that he believed that OCHI has been running a "shell game," and that he sympathizes with the tragic plight of the renters, who were at risk of losing their housing. "OCHI and their partners got ungodly credits and tax benefits," said Judge Keller.

Since the October 29 ruling by Judge Keller that favored the tenants at the California Hotel, the future of OCHI properties including the California Hotel have been in question. For a number of months during 2008, Marin Way Court and Nueva Vista tenants remained in their housing after being abandoned by OCHI, and the tenants managed the housing properties with the assistance of Just Cause Oakland. No one was available for a comment from Just Cause Oakland at the time of publishing this story nor was anyone in the organization aware of all of the current NOFA funding requests soon to be voted on, but someone in the organization stated that they were still working with the tenants at Marin Way Court and Nueva Vista and they are interested in reading this article.

It should be noted that as recent as November 3, 2008 Marge Gladman of CEDA stated that OCHI is insolvent and is unable to maintain their properties according to CEEPAC documents, yet it was the same Oakland city officials' including Marge Gladman along with Sean Rogan who were named in the $53 million claim against the City of Oakland filed on August 6, 2008 as allegedly being involved in a scheme to displace over 500 residents of OCHI's properties throughout the City of Oakland.

The current NOFA process in Oakland reveals that the City and local housing developers are moving in fast on OCHI's properties in an effort to squeeze as much money as is possible out of available funding revenue streams, which may end up displacing the low-income residents from their housing in the process.

Renovating older buildings is a good thing, so long as the tenants will not be displaced, are well informed and invited to be a part of the process. So far, that does not seem to be the case with the current NOFA requests taking place, and many low-income Oakland renters may find that they are being placed at risk as a result.

Lynda Carson may be reached at tenantsrule [at] yahoo.com

Note: Lynda Carson is also a resident of Effie's House, which is owned and operated by EBALDC.