Thursday, September 9, 2021

Did city violate rules in allowing sale of "low-income" unit to multimillionaire investor?

 Coast News commentary by Julie Graboi:

According to the June 21 Affordable Housing Agreement for Density Bonus, a qualifying developer of affordable homes is required to prove financial hardship in writing to sell to a non-qualified buyer as stipulated in paragraph 3F of the contract with the City.

A request for a copy of the written proof of developer hardship was not acknowledged, so there is no evidence that this procedure was followed.

27 comments:

  1. The most shocking part of this expose is that Gonzalez did not respond within seconds with his signature spinning eye full-scream freak out. Could it be he's been muzzled by the firm?

    Great work Graboi revealing the real deal. Neither the city nor Gonzalez come across as competent or even vaguely interested in how affordable housing awards should work.

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  2. On Verdu's Encinitas Politics Facebook page they're crying "fake news" over this reveal. Guess the useful idiots over there missed that even the city isn't claiming "it's the law." What happened was the city got caught playing their usual games. SOP at city hall.

    Where's GONZO? Word is SK has him on a tight lead, dude's bad for business?

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    1. They seem to be saying that it would be discriminatory to sell this very low income unit to an actual qualified family since it would exclude the Rancho Santa Fe millionaire who already owns two affordable units that he rents out to low-income tenants in this city and others.

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    2. Gonzo is sliding on his own sleaze.

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    3. The "low-cost" housing probably allows for a massive tax break for the millionaire investor for the timed period he has to rent it, with a caveat that it reverts to open market sale after that prescribed time period elapses. $$$$$ all the way... "Low-cost" sham deal. The rich investor is the benefactor here.

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    4. SK has me on a tight lead? That's funny.

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    5. I'm confused here. Is SK a dominatix who works in conjunction with Sacramento contact Ron Jeremy?

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    6. There was no violation of any rule. The City's Affordable Housing Agreement specifically provides for sale to a non-low income buyer, provided that buyer rents the property to a low-income person. It's there in black and white, in the same docs Julie posted when she first brought this to light.

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  3. Marco argues that it's a toss-up whether ownership of the home by someone who qualifies NOW is better than having a corporate landlord that requires qualification at each lease renewal.

    Obviously for the individual, home ownership is clearly preferred.

    Shouldn't we celebrate someone who can work themselves out of a qualifying low-income?

    Corporate landlords are known for squeezing tenants in all kinds of ways, according to tenant advocates.

    Way to go Encinitas staff, adding to the corporate-landlord-housing supply.

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    1. I don't disagree with the goal of helping someone to work themselves out of a qualifying low-income. I'm simply pointing out competing policy positions, both with merit. But, you also have to consider, when post people talk about deed-restricted affordable units as "starter homes," they are presuming the traditional American experience of buying a less expensive house, building equity, then using that equity to buy into a bigger/better/more expensive home. The issue to consider is that once an income qualifying buyer earns his/her way out of qualifying, the home's equity has not appreciated like a market rate one because it remains deed restricted for the full term. So, an income-qualifying buyer who earns out and wants to sell would have to be able to either shoulder the smaller equity bump or be "stuck" in the subsidized home longer than desired.

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    2. Marco, what the F are you saying? There is no fing way that you can justify an uber-rich millionaire is better suited to buy a low income unit over a low income person. No way. you can lie as you always do, but, it ain't happening.

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    3. Better some equity increase, even if capped, than simply paying rentpreferred to being a tenan. , s, there are points on the other side, but nothin.
      For the individual, it's obvious. For the ,community, less so but i think still weighs of individual ownership versus LLC landlords.comparable to owninY ou mak the p imo.

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    4. Ugh, my browser sucks. Your arguments in favor of LLC landlords still don't mean that the individual isn't better off owning versus renting. Some equity increase is better than no equity, nobody is "stuck" more so than the renter (and also at the mercy of the landlord).

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    5. Marco is a liar. The more he posts, the worse it looks for him and his clients.

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  4. We need a new toy to educate our Youth: "My Little Crony".

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  5. Graft and corruption by the insiders- crooks lining their pockets.

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  6. The incompetence/corruption of city staff is astounding. Sapu is the developer's poodle.

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    1. Sorry Charlie- Sapu is smart and takes his marching orders from the City Manager who takes her marching orders from the whitest of mayors Blakespear.

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  7. The answer to the this topic's head liner - YES.

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  8. Ask the Mayor's mom. There is a reason they live in the swankiest of Cardiff. Follow the money if you want to smell the stink.

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  9. 3:09, I guess it's just from word on the street and that there may be some office fires to put out?

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  10. Apparently the mayor is spending her time digging up old retired 1940s property deeds to look woke.

    That person is a complete waste of space.

    Woketopian slackers in Encinitas.

    Get a f*cking job

    Geezus

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  11. MARCO GONZALEZ, YES YOU - care to comment? Or still muzzled?

    https://thecoastnews.com/encinitas-authorizes-home-sale-to-investor-snubs-low-income-applicants/?fbclid=IwAR1D5LKGh8YuZ_dRBLwBQ_idRJQtKZ0TdSKKbdKVe1fKV_SKYp1ZuyJ9Yik

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    1. may still be in the company doghouse?

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  12. This made the news tonight, not the end of the story. Find it strange that Gonzalez was not pushed up front in an "unofficial capacity on behalf of the city" to make the mayor's sorry excuses for her? Odd not so odd given the tight muzzle he's been fitted with.

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  13. City trying out their damage control by posting all over social media. Too many words needed to explain what is basically a cover up.

    With Gonzalez sidelined the mayor has to be her own mouthpiece. Still who knows how much advice she counts on goes unrecorded?

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