Here Is Your Big Wake-Up Call
Near the end of August 2011, I spoke at a meeting of the Housing Commissioners at the main office of the Los Angeles Housing Department. I gave a speech about the corrupt nature of REAP and the unfair polices of the LAHD towards landlords in Los Angeles.
After I was finished speaking, the president of the board suggested to me, in a polite way, that I should go and speak before the Housing Committee (a group of six City Council members who oversee the LAHD) and also the full City Council. So, two weeks later, I showed up at City Hall, at 8:30 AM, on a Wednesday morning to address the members of the Los Angeles City Council who sit on the board of the Housing Committee.
I arrived a few minutes early and while I was waiting for the meeting to begin, a well-dressed woman came up to me and asked to speak with me privately. We left the room, walked up the hallway and what she told me really opened by eyes. She told me that the upper management of the LAHD along with some elected officials decided to turn the LAHD into LA’s biggest landlord. Last year in 2010, the LAHD acquired 1,000 rental units that they are now using for low-income tenants. Since she and I only spoke for about two minutes, I was not able to ask her twenty questions.
This information is too important to ignore. So, we need to do some research this and find the answers to the following questions:
1. Are any of the rental units that the LAHD acquired last year formerly buildings that that had been in REAP?
2. Is it possible that the LAHD is putting buildings in REAP and then after the landlord loses hi/her building in foreclosure because they have no income to pay the mortgage, after the bank forecloses on the property, has the City bought any of these properties from the banks for pennies on the dollar?
3. Is the CRA involved in any of this?
From what I was told, the LAHD wants to increase its annual acquisition of rental units. Are we suppose to wait until the City starts to acquire 2,000, 3,000 or 5,000 units a year from landlords they have driven out of business? We must start doing some research and find out where these new acquisitions are located and who owned these properties previously.
Based on national news reports that I’ve read, the City of Los Angeles has a reputation as the worst run big city in the USA. The city is also the worst landlord in the city. Just take a look at the projects the City owns; shootings, murders and violent crime are commonplace. If any private landlord operated his/her buildings the way the City of Los Angeles operates its rental properties, that landlord would have been sent to prison years ago.
So now we have another question… Most likely every low-income rental unit that the City owns loses money. When you consider the low rent the tenants pay and what it costs to operate public housing, the City is in a losing cash flow. So who pays the difference? Answer: the taxpayers.
There is so much crime associated with public housing that the City must maintain a private police force just to regulate what goes on. Then you have City officials who oversee the operation. They have salaries and one day will be collect hefty pensions.
On top of that, you have contractors who come in to do repairs who often charge the City up to five times the going rate for the repairs they do. So, if the City is losing money on every rental unit that is owns, why does it want to expand a losing operation? I believe that answer is that government bureaucrats see themselves superior to the public, they don’t respect taxpayer funds and they embrace more of a socialist view of the world than a free market economy. Welcome to the new Los Angeles.
When the government becomes a landlord, across the country, it usually does a bad job of managing the properties, criminals and gangs often move in. Considering how its costs the City to be in the landlord business, this causes a colossal waste of taxpayer’s funds.
Still, the LAHD wants to acquire more units and generate a bigger loss for the taxpayers.
This is insanity. Maybe it is the next level up of political correctness?
Who is going to be living in public housing? Will it be people who are permanently on welfare? Will the city allow undocumented people to move in? Will these units contained people with criminal records or will families of gang members be allowed to move in?
You can’t change human nature. When government gives away housing or money, it destroys the desire to succeed in the people who are living off the government. Unfortunately people who sit home watching TV and collecting welfare most times end up creating offspring who will follow in their footsteps.
When it comes to landlords, this is so extremely unfair… The Los Angeles Housing Department is a city agency that regulates landlords and at the same time this agency is also in competition with landlords, this is truly a conflict of interest to the tenth power. If we can prove that some REAP properties or the real estate they sit on, have ended up being owned by the City and turned into public housing, we can create a national scandal in the media.
This is just not unfair to landlords; it is unfair to everyone who pays taxes. What about the millions of average working people in Los Angeles who are struggling to pay rent or pay a mortgage without a government handout, how do you think they’re going to feel when the City of Los Angeles supplies rental units at very low rent to those who on welfare or not here legally? This is slap in the face to all decent people who are playing by the rules.
How would the average person feel if the City acquired an apartment building in a stable neighborhood and started bringing in families that have gang members or people with criminal backgrounds? Can you imagine how some parents might feel who have wholesome teenager daughters and then some hoodlum wants to get to know her better because he lives up the street from her?
What I find mind-boggling is the culture, the mindset within the Los Angeles Housing Department that landlords are evil. Many of the people at the LAHD believe that landlords are people who exploit poor people because making a profit from renting apartments is a form of oppression against the poor. These idiots see themselves as heroes when they drive a landlord into bankruptcy, acquire the property from the bank and then create more low-income housing at the taxpayer’s expense.
Let’s look at the concept of “low-income housing”. The LAHD employees hundreds of people that one day will be collecting millions of dollars in pension retirement funds. If the government really wants to help poor people who can’t afford to rent an apartment at fair market value, then the government should give that money to poor people in the form of rental credits and then poor people can pay their landlord directly. We can put a stop to the millions of dollars being wasted by the City because the City does a terrible job at operating public housing. This money can be used to help more people in the areas of job training so they can rise up above their situation. Some of the money could also go to landlords and more poor people could end up in well-run apartment buildings. If the majority of this money that is now being used to acquire more rental units by the city went directly into paying rent for poor people, the taxpayers would get the most bang for the buck and more landlords would be able to remain in business.
The City of Los Angeles is in debt to the tune of more than three hundred million dollars. We all know that jobs are leaving LA. As the years go by, this is going to reduce the amount of money the city collects in business taxes. As the City of Los Angeles goes deeper and deeper in debt, they still want to acquire more and more rental units that will cost more and more tax funds to sustain these units. In business, when one is losing money, one must do everything possible to cut one’s loses. Here the City wants to own more rental units that will eat up more taxpayer dollars. Every apartment that the City of Los Angeles owns loses money because the rent income does not cover the cost of maintaining the property. Are we going nuts here? Maybe some of these bureaucrats are possessed by the Devil or they did a deal with the Devil?
As landlords we have been an easy target by politicians, they blame us for the high cost of rent in Los Angeles. We know that in the past, the general public is not concerned with our legal problems or if the LAHD treats us unfairly. This new information should appeal to business owners, homeowners and most of the general public. This info could be our “silver bullet”. If we have to present it in a way to cause public outrage, we will. Now, we have a chance to fight back and do some real damage. We can go public and make the general public realize how badly their tax dollars are being wasted. We must create a really strong scandal to waking up the business community because whenever the City starts to run low on money, it raise taxes on the business community first and then on the general public secondly.
Government has a responsibility to provide specific services to the public. Being in the landlord business is not one of them. This is much room for improvement in other areas. The City of Los Angeles does a terrible job of repairing the streets. Because the city is so deep in the red financially, the City of LA is talking about closing down fire stations and cutting back on some city services. Public tax funds should go into providing traditional city services and not into expanding public housing. After decades of failure and huge financial loses, why is the City of Los Angeles in the landlord business at all? The City has proven itself to be a terrible landlord. That job is best left to the private sector.
Also… I heard a rumor that tens of million of dollars of Federal grant money has been given to LA to help solve housing problems but instead of helping mom and pop landlords with grants, the city has kept that money for itself.
There are three things we must do.
First – Since I am an army of one, we must raise some money and hire an investigate reporter to work for us. We only need this person for about a month. There are bound to be several people living in LA who have worked for a newspaper or a TV station in that position. We need to find out for sure if buildings that were put in REAP by the LAHD somehow ended up being owned by the City of Los Angeles.
Secondly – Once all the facts are in, if we have the makings of a true scandal, if we uncover some hard-hitting corruption, we must go public. We must reveal everything on our web site and ten advertise in the media so the public starts going to our web site for the entire story.
Thirdly – Once we have all the facts, we must send a package to every member of the Senate and Congress in Washington, DC. Maybe we will find one person to hold hearings to weed out the criminals in LA government. We must also file a civil rights complaint with the Department of Justice. How can any landlord compete with a government agency that has the power to confiscate his/her rent money?
Isn’t this how the government confiscated all private property in Russia during the 1930’s?
At the present time our coalition has 93 members. My e-mail database contains 1,400+ landlords who I’ve been sending out updates to for two years now. For those of you who claim to be too busy to get involved, you need to reset your priorities. If things keep going the way they are in Los Angeles more and more properties will end up in REAP. Or, the CRA might come along and take your property away from you.
Unless we work together to bring about change, the quality of life in Los Angeles will continue to deteriorate and the value of your properties will decline. We need to expose the evil LAHD master plan and help people get elected to public office who understand that government is a business. I’m not against helping poor help who live in Los Angeles but the way the City going about it there is just too much overhead. At this time, for all the money it takes to one person into affordable housing, if all the money that is being wasted were paid directly to landlords five to ten times more people could be helped Landlords would need to be paid a rent amount that is inline with fair market value so they will have the funds to properly maintain their buildings because we all now that rent control creates slums.
If you agree or disagree with me, please don’t write me back a long letter, that won’t solve anything. Instead get involved, come to our meetings and donate a little money so we can continue going forward. For more than two years, we’ve been struggling to find that one piece of information that will open up Pandora’s box and now we have it. We must not allow this opportunity to be wasted.
Bill Hooey