Funding Granted to Skid Row Housing Trust Buildings in LA and City May Bid for the Same Buildings
Los Angeles: On Wednesday, the LA City Council Committee gave its approval to a long list of recommendations for the upkeep and repairs of 22 run-down buildings in the Skid Row neighborhood that are under receivership.
A request from the Housing Department for a third allocation of funding was also approved by the Housing and Homeless Committee. The decision was unanimous, and the funding is for the Skid Row Housing Trust receivership worth $15M.
A major portion, around $14.5M from the funding will be directed to upgrade the deficits in over 1500 units and 22 buildings. The rest of the money will be used for consultancy that will help to execute a recapitalization strategy for the housing units.
The Housing Department’s general manager, Ann Sewill, briefed that $4.2M would be spent to cover the former receiver’s claims. The claims are not yet approved by the court. As for the current receivers, $3.1M will be directed. $5.8 million for the months of January to March, and $1.1 million for April to June will account for the expenses and operations not covered by the rent.
Sewill said, “What brought us to this point is that the buildings cost about $1,000 per unit per month to operate, and the income has been about $700 per unit per month.”
Early in the next year, the city might try to put these buildings up for bid.
A receivership, according to the City Attorney’s Office, is a legal procedure that enables a person appointed by the court to take possession of a property, deal with the problems, bring it into compliance, and enhance the standard of living for the occupants and the neighborhood.
Skid Row Housing Trust is a nonprofit organization that stated that it is not financially stable to maintain the 29 buildings. The court intervened and a receivership was given to the LA city earlier this year. Out of 29, seven were transferred to the National Equity Fund, another nonprofit organization.
