The developers of a 20-story apartment tower planned for near Capitol Records in Hollywood announced today that they would voluntarily make all of their units rent-controlled. Subjecting the approximately 210 new apartments to the city’s rent control stabilization ordinance will cap rent increases at 3 percent per year. The ordinance applies to housing built prior to 1978—not new projects—so the decision is almost totally unheard of. “We want to be a part of the solution in ensuring future affordability for existing tenants in the Los Angeles housing market,” Bob Champion, CEO of Champion Real Estate, said in a statement. The new apartments are part of a large development called 6220 Yucca that will include the tower, plus a four-story building next door. In addition to apartments, the complex will hold 136 hotel rooms and shops and restaurants. In order to build the project, Champion will demolish a cluster of low-rise apartment buildings. An earlier plan would have made just 43 of the new apartments subject to the city’s rent-stabilization ordinance. Tenants in the old apartment complex who feared losing their homes had formed a group to fight the project. “We're really most concerned about the elders and the low-income families,” resident Sasha Ali told the LA Weekly last year. “Where are they going to go?” In its announcement, Champion also says it will elect to let all tenants in the older buildings to move into “a comparable unit” in the new project and pay the same rent as they did in the old buildings. The company also says it will temporarily relocate all the tenants to new units in the Hollywood area and pay the overage in their new rent. Sejal Patel, a member of the Yucca Argyle Tenants Association, told Curbed that Champion’s decision was “frankly beyond our expectations,” but also expressed that the association would be following through on the promises, making sure contracts were in place to secure these terms for returning tenants. “All tenants - all over the country that are facing similar issues - should see what can result when we come together to take a strong stand for our communities and our neighbors,” Patel said. The project is expected to begin construction in 2019, with completion anticipated in 2022. It’s too early to say what the rent will be for the apartments (minus the ones for returning tenants) when the project opens, a representative for Champion told Curbed. “We are excited by the prospect that Yucca and Argyle will provide high-quality homes in the Hollywood area while at the same time maintaining affordability for existing tenants who are an important part of our community,” Champion said. The developer and city planning department did not immediately say what additional benefits, if any, the developer will receive for electing to bring rent-control to the building.
Developer Hollywood Tower Volunteers To Place New Apartments Under Rent Control
Friday, November 17, 2017
Curbed (Los Angeles)
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