As a retired real estate developer, I find there are many outstanding questions about the Peary Court purchase.
If the average rent, as mentioned in the Citizen, is approximately $2400 (which is not affordable housing rent), how does the purchaser (city) know whether if the rents were lowered to make them conform to what might be defined as truly affordable housing rent ($1200.00) that the income from the project would support the mortgage, taxes, expenses etc?
In addition, will city have a committed mortgage rate at the time of the public vote?
How with the city reduce the rents from approximately $2400.00 down to the lower income level of affordable housing?
How will the city determine the cost of repairs and upkeep?
How are the rents to be controlled when the current leases run out?
Will the leases be allowed to be for one month or one year rental?
Shouldn’t the rents of new leases and options be based upon income verification of the applicant to coincide with the definition of AFFORDABLE HOUSING RENTALS.?
This matter should not go to the public vote before an accountant and attorney who are experts in the fields of developing, leasing, cash flow, assessment and purchasing of rental properties be hired.
This is not a two million dollar investment and even if it were, if designed for affordable housing, the same procedure should be used.
It sounds great that the city wants to put to a public vote whether to spend $55,000,000 on a real estate purchase which is supposed to allow for the property they are purchasing to be used for AFFORDABLE HOUSING. But the fact is, the city has no idea about the financial controls that will be involved in the deal.
Sounds like the cart before the horse story.
Sure the average citizen thinks this sounds great, but they have no idea what any of it means and neither do I.