1930 Almaden Apartments kick out tenants with decent incomes

[Woof]

Originally Posted by mysticaltyger

I got a letter from my apartment manager on my door. The gist of it is that we're under new ownership and they are going to get government money to make renovations.

However, the government program they got money from stipuates that residents have to have incomes not above certain thresholds. The maximum income for a 1 person houshold: $44850
2 person hh: $50,940
3 person hh: $57,300
4 person hh: $63,660

etc.

My income is about 5K above the limit so I will be forced to move when my lease expires.

That means I'll probably end up paying at least $100 more for an equivalent apartment somewhere else or go back to having roommates again.

My apartment costs $850 a month but new tenants are paying $950 for studio apartments.

These government programs really **** me off in a major way. I've set up my life so that I can keep my rent to 20% of my income so that I can save for retirement and not live payday to payday my whole life.....and the government comes in and basically tells me I make to much.

So I get penalized for living frugally and setting up my life so that I won't live in financial crisis mode....while those who make poor choices or live in crisis mode get fully renovated apartments.

I have to wonder how many people who will be able to live here won't be illegal immigrants. I suspect we have some living here now. That just gets my ire up a little more.

There are plenty of studios in San Jose that go for $700, probably $800 would get you a good one.

The situation is quite different for people making minimum wage. They work just as hard as you and probably harder, but only make about $16,000 per year. If they can afford to live indoors, your $850 rent would take up about 64% of their income, if they could even manage to come up with the security deposit needed to get in. And minimum wage jobs don't usually come with medical/dental insurance.

So in an effort to stem the tide of homelessness among the working poor, in an effort to allow them to live indoors, use a bathroom and kitchen etc, there are subsidized housing programs.

The only problem is that people with a relatively high income can use these programs, which should ONLY be allowed for the extremely low-paid workers or the truly disabled or elderly on social security.

[MikeSJ]

The city of San Jose has many subsidized housing programs available for Extremely Low Income, Very Low Income, Low Income, Median Income, as well as Moderate Income residents. Most of the programs are financed by developers that are required to sell or rent approximately 20% of the housing within a complex at below market rates. In some cases a developer can opt out of providing low cost housing by paying a fee to the city (usually at least $80,000 per below market unit) which the city uses to subsidize complexes only for low income, very low income, and/or extremely low income residents only. At least 80% of San Jose is covered by these regulations with only a few execptions (some areas are excluded as well as 4 high rise condo complexes in downtown San Jose to allow the downtown to jump start).

Generally low income, very low income, and/or extremely low income residents are eligible for subsidized rentals and median and moderate income residents are eligible for subsidized purchases of condos, townhouses, and houses. Many times subsidized purchases can be well over $100,000 below market value (ex. a $300,000 1 bedroom condo could possibly be sold for $200,000 or a $500,000 townhouse could possibly sell for $350,000). Each complex has a different criteria as to which income level is eligible for the subsidized housing.

The followng link that should give you information about the program.

San Jose Department of Housing - Data - Income Eligibility

[MikeSJ]

I may not have given completely accurate information in the last post. I assumed that developers were selling the affordable housing in the complex at below market rates since developers have complained that the affordable housing component can possibly cost them more than $300,000 per unit.

However, after reading the above document, I am no longer sure how the affordable housing process works. The document does talk about down payment assistance and 0% loans (Equity-Share Homebuyer Program) but does not mention how the developer 20% affordable housing works.

[Woof]

There are going to be budget cuts because future declining tax revenues won't allow for half the population to live in subsidized apartments. So instead of cutting those programs equally across the board (which is what will probably happen), the subsidies for any but extremely or very low income housing should be cut entirely.

[Ohs]

Yes, maybe some people need help but, all this help is bringing down the hard working middle class to poverty level. And we are being strangled and held down by the lower level. And so we work harder so other don't have to. It angers me to no end. I went to school, owe tons in loans and work very hard, but most of my money is taken away from the governement and given to people who DO NOT deserve it, while I am constanly trying to keep my head above water. It doesn't matter how hard I work, the system is set up to keep me in the exact same spot, unless I make huge leaps in my earnings this will continue for ever. Sorry, and good luck with the Apt search. Maybe we should just all give up and live on welfare to.

[mysticaltyger]

Thanks aslowdodge. I found an apartment a block away from where I work for the same rent!!! Very lucky! However, I did have to give up all the amenities of my old apartment (dishwasher, garbage disposal, air conditioning, no pool or hot tub, less closet space, fewer electrical outlets). However, on the plus side I get to walk to work, and I get to live in a well maintainted older building that has REAL CHARACTER.

So this situation could have been much worse. Still I feel it is unfair to kick out tenants. On the other hand, they remodeled my old apartment and made it very "institutional" looking. And, sorry to say, but a disproportionate number of the new tenants are probably not people I'd want for neighbors (it doesn't take that many bad apples to spoil an apartment complex).

[aslowdodge]

Good for you! Sadly it may not work out as well for some of you ex neighbors looking for a place to live.
I can remember having section 8 prospects coming to look at my rentals driving better cars than me and I work 60 hours a week. Sure I own real estate, but i work for it and give up in some things ( like driving older used cars) to do so.
Like I said before, I am all for helping those in need, but I really wish the agencies could monitor who is getting aid better.

[mysticaltyger]

Woof,

I don't know what planet you live on but finding a studio for $700 anywhere in San Jose is impossble (unless you know someone willing to rent to you well below market rate). This has been the case for quite a few years. $700 will get you a decent room in someone's house with your own bathroom (maybe), but that's about it.

My old studio now rents for $1000 a month (I was paying $850), although the new tenants won't be paying that since they're getting subsidies. I looked at other places that were not that nice with no or minimal amenities for $950.

Maybe you can get one for $800 if it's a coverted garage in a bad neighborhood where 10 people are living in every house. But then again, maybe not. I looked at a place like that where people were loud and drinking next door at 4PM and there were homeless and mentally ill people walking around all over the place....and they STILL wanted $850 for a studio (no amenities, very old converted house).

The bottom of the market is really $850 or $900.

The only reason my new place charges only $850 is because they are picky about the tenants they take, so that eliminates a fair number of propsective tenants. My new place has no air coniditioning, no washer/dryer on site, no garbage disposal, no dishwasher, no pool, no hot tub. It also has only one electrical outlet in the studio (living) area, although there are more than I need in the kitchen.

So yes, it is a decent place, but it's in an older building with no amenities. And the electricity is annoying. I need extension chords all over the place.