I’ve taken a couple of months off to work on AB2100, an interesting affordable housing project here in California. As a local tax payer, it’s got me a bit jaded on how the system works, and who profits.
The spirit of the bill makes sense; it’s all about transitioning people from aged institutional settings to community based housing. Specifically, the state owned Agnews Developmental Center, which will be sold to Cisco — should their option to purchase be executed, will be surplused and closed as of June 8, 2008 by the state. Sweet.
Although this will fetch a pretty penny, the state will not have another opportunity to own any land on the peninsula in the near, nor far, future. And while this is in an environment of continuing liquidity, although tightening supply of equity willing to finance debt most likely beyond the next few quarters.
But the decision has been made. There are probably less than 10 people at the facility who should not be moved — but they will be moved. What really erks me is that the budget to acquire properties has been expended with a dozen homes still needing to be acquired for the project. CalHFA will get $200,000 in reserves with the close of each property and the master developer, Hallmark, will get $60,000+ of overhead at the close of each property and then an additional profit of $60,000 at stabalization — whatever work they complete.
The homes purchased last year have not had construction begun to convert for the intended occupants. I apologize for this rant … it’s a reasonable project with a good-heartedness behind it … but the implementation has been mishandled and monies are being mishandled as well due to inexperience on the part of the master developer. I’m no whistle blower, it’s just my 2 cents. (Glad to be back!)