From the Files of "Things Must Really Be Bad..."
Cleveland is in the midst of record breaking foreclosures that are expected to only grow in the next year, the housing bubble is popping with real estate declining in value, and now today Associated Estates announced that they are divesting of every one of their affordable rental units in the United States. You may remember Associated Estates from such east side disasters as Longwood Estates in Cleveland that had become so bad the U.S. government demanded the property be torn down. Associated stepped aside after a long series of articles in the Plain Dealer, and the property was rebuilt as Arbor Park. Associated Estates was at one time one of HUD's biggest landlords in the United States.
I do not know what this says about the U.S. economy that this corporation is rejecting the federally backed money of subsidized housing. Is it an isolated incident with a long troubled company? Is it too much government oversight that corporations find it hard now that they are expected to keep their property up to housing quality standards? Is it that fair market values are falling in many communities so that corporations are not seeing a high enough return on their investment? It is a solid source of money with the government paying up to 100% of a household's rent in some of these buildings. How bad must the future be for housing if companies are abandoning the subsidized market? These private corporations providing housing subsidized by the government go back to the Nixon/Ford administrations. You remember the olden days...when the U.S. government actually felt it important to have a plan to house its citizens, and before large scale family shelters were part of the American landscape.
From the Cleveland Tenants Organization here are the local properties operated by Associated Estates:
Abington Arms 152 units
Alexia Manor 50 units
Euclid Beach Club 252 units
Euclid Beach Villa 559 units
Lakeshore Village 108 units
Lourexis 70 units
Owl's Nest 260 units
Riverpark 100 units
The Triangle 142 units
Forrest Hills Terrace 420 units
Ohio Shaker Club 4 units
The Statesman 47 units
Gates Mills Villa 191 units
Cedar Center 47 units
Shaker Park Gardens 151 units
West Chester Townhomes 143 units
Euclid Hill Villa 505 units
1,693 units in Cleveland and 3,201 units in the area.
I hope that there are enough buyers in the system who can handle all these properties. It would be a disaster for these units to disappear, and it is hard to be a landlord.
Posts by Northeast Ohio Coalition for the Homeless staff and Board.