Oakland nonprofit housing developer (EBALDC) plans to relocate to new location

Oakland nonprofit housing developer (EBALDC) plans to relocate to new location

By Lynda Carson -- March 13, 2012

Oakland -- As recent as January 10, 2012, members of some local nonprofit groups including the organization called "Techliminal," that are interested in renting space for their organizations, toured a two story building at 1825 San Pablo Ave, in Oakland, being the same location where the East Bay Asian Local Development Corporation (EBALDC) is planning to eventually move their offices to on the second floor of the building in a year or two, according to sources.

EBALDC is one of Oakland's largest nonprofit housing developers with well over 1,000 rental units of so-called affordable housing units throughout the city, and has borrowed millions and millions of dollars to acquire and renovate many of it's so-called affordable housing projects, placing the buildings for many low-income renters at risk of foreclosure.

Currently EBALDC's offices are located at 310 8th St., Suite 200, in Oakland, and the nonprofit housing developer has been operating out of that location since around 1975.

It was during November of 2011, that EBALDC bought the two story building at 1825 San Pablo, for around $1.5 million. The building used to house a popular community center that assisted the homeless and mentally ill for a period of 10 years or more, known as the "Howie Harp Multi-Service Center," until the homeless person's service center had to close down and shut it's doors, due to some catastrophic budget funding cuts.

Many of the local homeless persons were chased away from the area due to the funding cuts and gentrification of the neighborhood, and the Howie Harp Multi-Service Center closed it's doors around one year before EBALDC managed to buy the two story building from an organization called Housing of Independence People (HIP).

With local organizations coming around to tour 1825 San Pablo recently, especially organizations that are interested in renting the same space that the Howie Harp Multi-Service Center used to operate out of, it appears that the unique service center for the homeless and mentally ill will not be reopening it's doors again anytime soon, if ever, now that EBALDC has bought the property and plans to rehabilitate it, and turn it into a money making venture.

It was as recent as October 15, 2010, that the Howie Harp Multi-Service Center officially stopped operating and closed it's doors to the homeless and mentally ill persons that received services such as housing referrals, counseling, anger management courses, meals, showers, including access to bathrooms to clean up in, and hygiene kits. It was a nice place the homeless could go to, to get off of the violent streets of Oakland, to get warm, clean themselves up, and have a nice meal on a cold winter day.

According to Milton Hare, the former director of Howie Harp, around 80 to 100 people lost access to the bathroom and shower facilities at that location, and apparently EBALDC does not plan to reopen the bathrooms and the showers to the local homeless people, that are still hanging out in that area of town.


Acquisition And Rehabilitation Of 1825 San Pablo, By EBALDC


According to COSTAR.COM, EBALDC purchased 1825 San Pablo, a two story office building with 19,431 square feet for approximately $1.5 million or $77 per square foot from the organization called Housing of Independence People, and that the building was built in 1925, and was renovated in 1988.

Additionally, the Alameda County Assessor's Office says that the total taxable value of the property is $1,459,303, but according to the California Municipal Finance Authority, the total cost of the EBALDC venture to buy and rehabilitate 1825 San Pablo will cost at least $3,302,000 in total.

This includes $1,645,750 for the building acquisition, plus an additional $1,034,250 for the rehabilitation of the building, plus $120,000 for architectural and engineering costs, plus an additional $300,000 for legal and professional costs, and an additional 6.5% in fees. Total cost for the EBALDC venture is $3,302,000, for a property that is only currently valued at $1,459,303, according to the county assessor.

For additional information, according to the office of the Secretary of Sate in California, EBALDC filed the papers on September 20, 2011, to create a corporation called 1825 San Pablo LLC, as an entity to buy and operate the property at 1825 San Pablo, with EBALDC's executive director Jeremy Liu being listed as the Agent for Service of Process. EBALDC's address of 310 8TH ST STE 200 is listed as the entity address for 1825 San Pablo LLC, and the entity number is listed as 201126410327.

Mary Hennessy, is currently listed as the Chief Operations Officer for EBALDC according to their website, with experience as the director of property and asset management. Mary Hennessy was not available for comment for this story, but I received an email in reply that stated that Mary Hennessy no longer works for EBALDC.

According to sources as recent as March 5, 2012, Mary Hennessy allegedly had some problems in a meeting with EBALDC's executive director Jeremy Liu, and she either got fired or quit her position at EBALDC as a result, but I have not confirmed how much of that information is accurate or true.


Amounts Owed By EBALDC As Of December 31, 2011, At EBALDC Properties


As of December 31, 2011, EBALDC owed the following amounts in dollars (further below) on some of their properties due to housing development loans and grants from the Oakland Redevelopment Agency, to renovate some of their properties.

Tenants in EBALDC properties are concerned that the housing development loans will force EBALDC to raise the rents at it's properties on it's existing renters, or may require the developer to replace the low-income tenants, with higher income renters at each location to pay off the loans. Landlords are allowed to pass along all the construction costs to the tenants in buildings, where renovation projects of the buildings occur in Oakland.

According to records, as of December 31, 2011, EBALDC owed $260,000 due to the various grants it received for a number of it's properties throughout the city.

Plus as of December 31, 2011, EBALDC owed the following: Slim Jenkins Court/Rehab - $411,662; Hugh Taylor House/Rehab - $65,654 plus another loan for $88,206; Effie's House/Rehab - $1,455,251; Oakland Point LP/Rehab - $1,705,518; Drasnin Manor - $1,025,501; California Hotel/Acquire/Rehab - $1,683,802 plus an additional loan for $3,569,198; Marcus Garvey Commons - $352,000; Madison Park Apartments - $1,250,000; Lion Creek Crossing V - $10,000,000 (required by state grant) plus an additional $3,905,298 is owed in a partnership with Related Co./OHA;

In addition to what is already owed by EBALDC to the Oakland Redevelopment Agency that is listed above, according to the California Municipal Finance Authority, as recent as February 24, 2012, EBALDC was in a meeting in an effort to borrow an additional $19,000,000 (Nineteen Million Dollars), to finance the acquisition and rehabilitation of the following projects in Oakland that are already owned by EBALDC, including Frank G. Mar Community Housing, the Hugh Taylor House, the Hismin Hin-Nu Terrace, Madison Park Apartments, Slim Jenkins Court, Pacific Renaissance, 2501 International Boulevard, and 1825 San Pablo Avenue.

Tenants in EBALDC properties are alarmed at the amount of debt being placed on each property owed by EBALDC, and are concerned that the housing loans will force EBALDC to raise the rents at some of it's properties for existing low-income renters, or require that the developer will have to replace the low-income tenants at some properties, with higher income renters.

Lynda Carson may be reached at tenantsrule [at] yahoo.com