in a nutshell, about the only way that happens is if HUD determines there are unfair practices taking place or the owner is a complete and total slumslord and HUD no longer allows you to participate in the program.  Otherwise... if someone really wants the building, they will probably have to pay the current owner a huge sum of money since these properties are typically completely occupide and essentially pulling market rate prices into the owners.  Properties like this, as I have explained before are just cash cows and thus have an inflated value.  So long story short they are great investments for owners... and it makes way more financial sense for them to fix the property up and continuing it as section 8, then to sell a property that is pretty much guaranteed high level income year after year.  As I stated in an earlier post typically the only way you see such properties turn from section 8 is when they fall into complete and total disrepair... such as the park lane villa.

Regardless of your thoughts of the useage... they've done a pretty nice job on the renovation of this building...

Now if they could just get something in those storefronts.....

I don't see demand for those buildings at market rate developing until AFTER they are no longer Section 8. The long-standing Section 8-ness of them becomes a self-fulfilling prophecy after a while. Their status is also a government decision which can be changed through government. That may or may not require someone to fork over a giant check... but it shouldn't.

 

Just noticed this quote.  I actually lived in a building that transitioned from Section 8 to market rate.  1212 S. Michigan, just as the south loop was blowing up.  As people with vouchers' one year lease would expire, they were offered places on lower floors, and the upper floors were remodeled.  Once it was less than 30% section 8, they did common area renovation, and in about 5 years it was all market rate housing.

So it can happen

It can... if that is what the private owner wants to do with the building... and if he thinks that will be the most profitable venture for him...

Now if they could just get something in those storefronts.....

 

Nice.  I like.

Now if they could just get something in those storefronts.....

 

The problem is that there is nothing else around except parking.  Who wants that kind of storefrontage?

Now if they could just get something in those storefronts.....

 

The problem is that there is nothing else around except parking.  Who wants that kind of storefrontage?

 

As I say to my team.  You've identified the problem, what is the solution?  Parking is not the enemy and it wont be there forever.

 

A number of convenience and or every day living stores could move there.  Card shop, butcher, bakery, shoe store, small cafe.  The possibilities are endless and at a time when downtown residential continues to grow, it's best to get in at the ground floor.

the storefronts south of the main entrance are filled... I just didn't walk by that way to see what was in there...

If anyone knows where to contact the owners/operators...send the 411 my way and we will contact them to offer free storefront displays.

the storefronts south of the main entrance are filled... I just didn't walk by that way to see what was in there...

 

It's a hair salon I believe.

Many of you know my displeasure of this building and project in Downtown Cleveland.  I know it's "always been section 8," but it's one of the last puzzle pieces to completing the area connecting Playhouse Sqaure to the e. 12th street residental; however, it is simply not safe there at night.  Now, there's news of more bribes with people making money off it's "renovations":

 

Prosecutors say county employee Michael D. Gabor did the unseemly work for Dimora, Russo

 

CLEVELAND, Ohio -- A $42,000-a-year county "senior office assistant" appears to have been the bag man for Cuyahoga County Commissioner Jimmy Dimora and former auditor Frank Russo, according to federal indictments unsealed Wednesday.

 

According to the papers filed by federal prosecutors, Gabor helped Dimora collect bribes and fix contracts in connection with the renovation of Parkview Apartments in downtown Cleveland. The project to create low-income housing was financed by the U.S. Department of Housing and Urban Development and the county.

 

The indictments indicate that Dimora, with Gabor's help, solicited bribes from contractor Steven Pumper, his company, D-A-S Construction, and a company partially owned by the Pumper family, Green-Source Products, in connection with Parkview and other projects.

 

http://blog.cleveland.com/metro/2010/09/prosecutors_say_county_employe.html

Nice building, this is the old Allerton, right?....a Moronish thing to have such a classic building right nearby Playhouse Square....reserved for section 8??????????!!!!!!!!  Jesus, Mary and Joseph what was anyone responsible for that, thinking!  Oh, but wait.. I am sure someone will tell me how much such enhances the Playhouse Square experience. Can't wait for this rationale. Oh right...lots of kickbacks and money made.

it was done a long time ago when downtown was practically abandoned, and property was cheap... because of $$$ it will be extremely difficult to undo at this point.

We can only dream.....

 

The mr and I were walking back from the PS Starbucks on Saturday morning, and two guys loitering outside Parkview said to me "Hey sexy, how you doin' today?"  The mr was like, "Did they really just hit on you right in front of me?"  Story of my life walking up E. 13th.

I keep waiting to be bequeathed about a billion dollars so I can do some things like this... because the bottom line is that unless someone with a substantial amount of money comes along, who doesn't care about throwing tens millions of it away just "for the good of the city", that property will stay section 8.  It would be financial impossible to buy that building convert it to market rate and make any money.  You would get killed financially. killed.

 

PS, when this building was bought and turned section 8, playhouse square was rotting and on the verge of demolition... as was much of the downtown area.

Does anyone know the process from turning a federally subsidized housing project into market rate apartments?

simply buy it. do what you want with it.

 

but why would the owner, who paid for the building, rehabbed it, and has it full of tennants, whom the federal government pays a very high percentage of the rent guaranteed... want to sell?  It's a cash cow.  So the buyer would need to basically pay someone for a building that brings in the money of a 100% occupied market rate building (with occupancy practically guaranteed to stay 100% into perpetuity) plus the premium of the guaranteed income stream, then put more money into the buildingto upgrade it from section 8 unit sizes and finishes to something people would expect from market rate building... so you either have to transfer those costs to future tennants probably charging so much they would never rent there... or charge what the going market rate is for downtown cleveland and lose your shirt.

 

About the only time you see section 8 go back to market rate is when the building gets so terrible the owner can't even rent the units to section 8 tennants any more and doesn't have the money or the will to invest in the property and bring it back to liveable standards.  Then they sell low and it can be bought and brought up to market rate standards... This is essentially what happened at Park Lane Villa.  It's not "difficult to do" it is purely a matter of economics.

Thanks!

 

simply buy it. do what you want with it.

 

but why would the owner, who paid for the building, rehabbed it, and has it full of tennants, whom the federal government pays a very high percentage of the rent guaranteed... want to sell?  It's a cash cow.  So the buyer would need to basically pay someone for a building that brings in the money of a 100% occupied market rate building (with occupancy practically guaranteed to stay 100% into perpetuity) plus the premium of the guaranteed income stream, then put more money into the buildingto upgrade it from section 8 unit sizes and finishes to something people would expect from market rate building... so you either have to transfer those costs to future tennants probably charging so much they would never rent there... or charge what the going market rate is for downtown cleveland and lose your shirt.

 

About the only time you see section 8 go back to market rate is when the building gets so terrible the owner can't even rent the units to section 8 tennants any more and doesn't have the money or the will to invest in the property and bring it back to liveable standards.  Then they sell low and it can be bought and brought up to market rate standards... This is essentially what happened at Park Lane Villa.  It's not "difficult to do" it is purely a matter of economics.

 

 

          Hey......what more could I say?

And is that the only section 8 in downtown?

And is that the only section 8 in downtown?

 

No

^ what are the other ones?

ClevelandOhio, you're welcome to ask but it might help if you say "What are the other ones? I'm asking because ________". MTS, your efforts are appreciated when a post is grossly off-topic but this isn't one of those cases.

ClevelandOhio, you're welcome to ask but it might help if you say "What are the other ones? I'm asking because ________". MTS, your efforts are appreciated when a post is grossly off-topic but this isn't one of those cases.

 

Okay MayDay, thanks for the tip! I will do that next time.