U.S., 6 Local Cities Target Housing Needs

Acknowledging that the housing needs of smaller cities are often eclipsed by those of mammoth Los Angeles, the mayors of six local municipalities on Thursday announced a partnership with Fannie Mae designed to revitalize housing in their communities.

The Neighborhood Investment Alliance is a collaborative effort between Fannie Mae, the largest provider of U.S. home mortgages, and the mayors of Carson, Compton, Inglewood, Lynwood, Pasadena and Pomona. Through the alliance, the mayors will be able to tap a pool of $10 million to complete designated projects.

“Each project represents a unique approach to revitalizing these cities,� said Ted Chandler, vice president of housing and community development for the western region of Fannie Mae, a federal mortgage program.

The alliance grew out of a meeting held in April 1998 with Sen. Dianne Feinstein (D-Calif.). The mayors raised concerns about abandoned buildings, an aging housing stock, a housing shortage--and life in the shadow of Los Angeles.

“It was pointed out that Los Angeles gets all the attention, but many of the problems are in the ring cities,� Feinstein said, referring to the cities surrounding Los Angeles.

Feinstein decided to form the alliance.

Seated at a long table, a staff member from Fannie Mae beside her and the mayors in front of her, Feinstein listened to updates on each city’s project at a meeting Thursday at Inglewood City Hall.

In Carson, the City Council has designated the 650-unit Scottsdale Townhomes as its project. “It’s really in bad shape,� said Councilman Daryl Sweeney. “What we’ve been able to do is start the process of turning it around.�

The city has stepped up its building code enforcement and next week the development will hold elections for a homeowners association, Sweeney said. Residents have recently started paying association fees.

With $10,000 from Fannie Mae and matching funds from the Carson City Council, the city is hiring a consultant that will help an interim board conduct elections and handle other administrative needs. When the city is ready to do repairs, Fannie Mae may provide the funds.

“So you’re convinced that condominium development can be turned around?� Feinstein asked.

“Absolutely,� Sweeney said. “With your and Fannie Mae’s help it can be turned around and it will be turned around.�

Under Compton’s “Project Redirection,� the city will acquire foreclosed and abandoned properties, rehabilitate them and resell the houses at affordable prices, said Compton Mayor Omar Bradley. The city will hire former gang members and others in need of employment and teach them trades to rehabilitate houses. The city has already designated $964,000 to acquire properties and $115,000 for training residents.

“It’s just an excellent opportunity for us . . . to take what we have and make the most of it,� Bradley said.

In Lynwood, a burgeoning population has caused an increase in families living in converted garages. The city is considering acquiring and reselling foreclosed properties, but it is also considering ways to help homeowners renovate legally.

“We have a tremendous boom in population,� said Carson City Councilman Paul Richards. “Recent immigration has caused the size of our community to swell.�

As plans for the projects are finalized, cities will be able to tap the $10 million and use it to leverage other private funds. Fannie Mae is also offering the cities technical assistance and consulting. It has helped some cities be designated as Asset Control Areas, the first step in gaining control of properties foreclosed by the government.

The program, believed to be the first of its kind in the nation, may offer a useful model for other municipalities, Feinstein and other officials said.

“I thought if we could do it here we could show the rest of America what can be done,� Feinstein said. “I think we’ve got a very effective working relationship going.�