Community on the Edge of a Comeback : Landlords Push for Improvement

It used to be that many of Buena Clinton’s landlords were part of the problem, rather than the solution, in the beleaguered, crime-ridden neighborhood.

Garden Grove officials frequently complained that absentee property owners refused to repair their deteriorating apartments. This year, the city prosecuted six owners for failure to correct numerous building code violations.

Now, that may be changing. A group of Buena Clinton landlords, angered by the neighborhood’s steady decline, has decided to spur an area-wide cleanup, and to bring pressure on those who refuse to improve their slum properties.

The new Buena Clinton property owners association, organized by real estate businessman Ed Kuo, has proposed that landlords spend a fixed percentage of their rents on building repairs and it has also urged its members to bring legal action against owners who do not maintain their properties.

More important, the Buena Clinton landlords, like the proprietors of condominium projects, are asking a majority of local owners to agree to tough, legally binding requirements--known as codes, covenants and restrictions--for the maintenance of neighborhood buildings.

These include strict limits on the number of people who can live in an apartment--an effort to ease overcrowded living conditions. The new rules could lead to a significant reduction in the neighborhood’s population, now believed to be about 6,000.

Kuo, who owns several buildings in the area, said the proposed regulations would be unusual for a slum, and acknowledged that some owners have yet to agree to them.

A major risk in signing the regulations is that they would apply to present and future owners of the slum buildings, city officials said. It might be difficult to sell neighborhood property to some investors under such conditions, they added.

Garden Grove is trying to sweeten the deal, however, by offering landlords up to $5,000 in interest-free loans to rehabilitate individual apartments. They can become eligible for the money only if they sign the proposed maintenance codes.

The city is hoping that the regulations will be signed by at least 50% of the Buena Clinton owners, not counting those on Keel Avenue, where officials are discussing plans to acquire and demolish property to build an industrial park.

“This is a slow process, a careful process,” Kuo explained, as he inspected several of his apartment buildings on Sunswept Avenue last week. “If we succeed, I think we will be taking a major step forward for this area.”

Indeed, as Garden Grove prepares to spend more than $12.5 million in federal and state funds on neighborhood improvement, many officials believe the new landlord regulations are crucial to their plans.

“There’s no question but these proposals are a key part of our whole approach,” said Councilman Milton Krieger. “If these are signed and approved, it means that the city and its agencies can have a strong, working relationship with neighborhood owners.”

Landlords Obscured Ownership

In the past, that relationship has often been one of adversity.

While some Buena Clinton landlords maintained their buildings, others ignored their properties. Some avoided repairs by temporarily transferring ownership of their buildings to friendly corporations and individuals--making it difficult for Garden Grove officials to identify the true owners and cite them for violations.

“You’re talking about very sophisticated owners. Don’t ever let it sound like you’re dealing with some poor, unsophisticated owner who just happens to own an apartment,” said Stephen Copenhaver, director of economic development, in an interview last year.

“The city has to develop more expertise in tracking down who the owners are. If you look at the (change in) ownership patterns over the last 10 years, if you pick out one of those buildings, it’s fairly astounding.”

Today, however, Garden Grove officials are hopeful that they may be opening a new chapter with the neighborhood’s landlords.

“If we have that agreement to work together, I think (we) might be able to make a difference in Buena Clinton,” said Jeanette Justus, director of Housing and Neighborhood Development. “The approval of the CC&R;’s would be important to that goal.”