Metro Loma Apartments faces foreclosure as CCRC seeks strategic exit from California

In the heart of Glendale's city hall, a pivotal discussion unfolded regarding the future of affordable housing in the community. City officials gathered to address a pressing issue: the potential foreclosure of Metro Loma Apartments, a property that has become a focal point in the ongoing struggle to maintain affordable living options for residents.

The meeting revealed that the California Community Reinvestment Corporation (CCRC) is the primary lender for Metro Loma Apartments, with an original loan amount of $1.89 million, currently reduced to about $1.4 million. However, the situation took a troubling turn when CCRC announced that the property manager, Metro Loma, is walking away from the property as part of a broader strategy to exit California and focus operations in Texas. This decision has raised alarms among city officials, who fear that a foreclosure could lead to the conversion of affordable units into market-rate housing, displacing current residents who rely on these homes.

The financial landscape is complex, with Glendale holding a combined loan of $4.17 million in low-mod funds, while Los Angeles County has a loan of approximately $1.47 million. The urgency of the situation is underscored by the fact that the borrower has not made mortgage payments since November, leaving them five months in arrears with no plans to rectify the situation.

City officials have been proactive, engaging in discussions with both CCRC and the borrower to explore options that could preserve the affordable housing project. Their goal is clear: to prevent a foreclosure that would not only disrupt the lives of current residents but also set a concerning precedent for the future of affordable housing in Glendale.

As the meeting concluded, the stakes were evident. The city’s commitment to safeguarding its affordable housing stock is being tested, and the outcome of these negotiations could have lasting implications for the community. With the clock ticking, city leaders remain hopeful that a solution can be found to avert a crisis that threatens the very fabric of Glendale’s neighborhoods.