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                        Fred Schnaubelt   
           
 
Letter to Councilman Scott Peters
RE: Query about Million Dollar Homes
by Fred Schnaubelt
 

    

Sent April 21, 2003


Dear Scott:

I would appreciate it if your office would provide me the number of Million-Dollar Homes the city, S.D. Housing Commission and CCDC own that are rented to low-income families?

At one time the city owned a dozen homes in La Jolla, rented to low-income families, when it was a city policy to subsidize the housing of maids and gardeners close to their work in La Jolla.

You may recall the front-page story that four of these homes on Fay Ave. were scheduled to be replaced with 26 low-income units on the golf course next to the Seville luxury condominiums, renting for $400 per month. After my disclosure, a public outcry  resulted in this city-owned land being sold.  A private developer is now selling the recently completed units for up to $1,750,000 each.

It's my understanding the city still owns two remaining homes next door rented to low-income families.  Is this true?  If so, what qualifies a family to live in a million dollar neighborhood, how is the family selected, and how many people are on the waiting list?  Does anyone in a million-dollar city-owned home ever move out when their income increases?  With the current city budget shortfall would it make more sense to sell this property and use the money to help far more people live in less expensive
areas other than La Jolla?

It might be instructive to also learn how many million-dollar homes (or $1/2-million homes) in La Jolla and elsewhere are owned, managed, or rented by non-profit organizations that receive federal, state, or city housing funds?  It's far more difficult for the media, me, and others to "follow the money," when subsidies are channeled through non-profit agencies that are beyond scrutiny. I believe at one time
the city was assisting low-income individuals living in a non-profit project on Couvier St.  What is the fair market value of these La Jolla low-income units today?  Does the government still subsidize them? Are they ever audited to see if the tenants still qualify?  How often?

City staff is unlikely to admit to owning any million-dollar homes (staff probably doesn't even know) so perhaps the question could be posed by you to city staff as to how many homes and condominiums the city owns in million-dollar neighborhoods or in condo projects that include million-dollar homes?

For instance the public record indicates the city owns a home on Beaumont St. in La Jolla three houses away from a similar home that four months ago sold for $1,175,000. Does this make sense, is it a cost effective use of taxpayer dollars? Is this one of the reasons for the city's budget crisis?

I would appreciate it if you could get back to me by May 15th.

Best regards,
Fred
Fred Schnaubelt
Cc: Mayor, Councilmembers Zucchett, Atkins, Lewis, Maienschein, Frye, Madaffer, Inzunza, Media

Former City Councilman
2728 Adams Avenue
San Diego, California 92116
(619) 280-2082


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