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Midtown Park Apartments study recommends phased rehab, resident control options and funding plan
Summary
A consultant report to LAFCO recommends rehabilitating Midtown Park Apartments with resident participation, lists ownership transition options (including limited‑equity cooperative), raises a $67.9M ballpark rehab estimate for 140 units and calculates a 20‑year reserve need of about $2.5M per year. Consultants called for on‑site organizing and parallel funding before any ownership transition.
LAFCO on Sept. 20, 2024 heard a detailed consultant update on Midtown Park Apartments, the city's 140‑unit, city‑owned development built in 1964. Consultant Fernando Marti described a resident‑led process that produced community goals—prevent displacement, preserve long‑term affordability, improve accessibility and create resident leadership and potential ownership options.
Marti summarized the property’s history, including a previous limited‑equity cooperative promise and subsequent loss of ownership after developer default. The consultant’s analysis identified deferred maintenance across the six‑building complex, described accessibility and seismic priorities and presented three cost scenarios: building systems and life‑safety repairs for Building 1 (currently funded at $9.4 million via MOCD allocations), a citywide rehabilitation estimate that Arup and the team placed around $67,900,000 for all 140 units under the scope described in the report, and a 20‑year reserve study that suggested setting aside roughly $2,500,000 annually to fund long‑term maintenance needs.
Marti described multiple ownership and governance paths examined with tenant leaders: continued city ownership with improved resident participation and quarterly meetings; nonprofit management; a resident‑run nonprofit; a limited‑equity housing cooperative; or hybrids with community land trust structures. The consultants stressed residents’ desire for succession rights and protections for seniors and families and recommended funding for an on‑site organizer to build resident leadership and governance capacity before any ownership transition.
Commissioners praised the resident‑led process and flagged outstanding issues: the mayor’s office of housing’s current allocation ($9.4M) covers limited rehabilitation for one building but not the accessibility upgrades tenants requested; operating subsidies have risen (the presentation cited insurance costs rising from about $40,000 to $400,000 in the last year and current operational subsidy increases that reflected vacant units), and officials emphasized the need for an agreed funding plan before transferring ownership or significant responsibilities to residents.
The consultant said a final report would be completed in the next month and recommended that the Board of Supervisors and mayor’s office review budget opportunities and long‑term subsidy or federal programs (including RAD) for potential use in comprehensive rehabilitation.
