Mayoral candidate David "Zuma Dogg" Saltsburg hints that
there could be a coming Federal investigation of the City's Rent Escrow Account Program (REAP). The program's original intent was to allow renters of housing with deferred maintenance to direct rent payments towards the cost of repairs.
In an interview with the Sister City, Saltsburg said that properties are put into the REAP program because the City claims some level of repairs must be made. However, the law does not allow owners to make modest increases to rent to cover the cost of repairs. Saltsburg said "Most of these renters are paying about $400 a month in rent. They'd likely have no issue paying $500 a month to make the repairs and guarantee they have a place to live. If the property is seized and the residents evicted they're not likely to find replacement housing in LA anywhere near what they were paying."
However, Saltsburg claims that City leaders could be using the program to force mostly middle class and elderly investment property owners into selling the older properties at a song to politically connected developers who are seeking the land for constructing upscale income housing. In the last several days owners of these properties have come before the Council stating that their properties have been essentially stolen from them under the program.
Saltsburg has been saying for several days that for some reason Council President Eric Garcetti has become frustrated when the Mayoral candidate attempts to discuss the REAP program during open public comment at City Council meetings and has taken steps to silence Saltsburg.
Saltsburg also told me the Mayor and Council President often claim to be pro-business and advocates for low-income housing. He asserted that flies in the face of what's happening with the REAP program in that not only are the small investors losing their properties but of course the residents are being evicted.
Stay tuned.
Labels: david saltsburg, eric garcetti, reap, zuma dogg