Low-Cost Condos Add Homes, Hope to Troubled Area
Just a block away from the hangouts of gang members and drug dealers, city officials and community leaders gathered Friday to praise an innovative Pacoima condominium project priced for families trying to buy their first home.
Councilman Richard Alatorre said he hoped that the example set by the 324-unit Griffin GlenOaks complex would be duplicated throughout Los Angeles. The Building Industry Assn., during the recent Pacific Coast Builders Conference, named the complex the best affordable housing development in the Western United States.
Griffin GlenOaks, just east of the intersection of Glen Oaks and Van Nuys boulevards, is next to Van Nuys Pierce Park Apartments, a federally subsidized housing project that Los Angeles police have called a hotbed of drug and gang activity.
The new gated complex, with its Cape Cod-style buildings painted in soft blues and browns, is an unexpected sight in a neighborhood where bars shield many doors and windows. Alatorre said the developer, Griffin Homes, showed great courage by building in such a location.
With help from Los Angeles city officials who eased zoning restrictions and speeded up the sometimes-plodding development process, Griffin Homes said it was able to sell all 84 units in the first phase of the project at prices ranging from $71,000 to $117,000. The company has sold about half the 74 units in the second phase, which is under construction.
The average price of a condominium sold in the San Fernando Valley last month was $153,000, according to the San Fernando Valley Board of Realtors. The average price of a single-family home sold in the Valley was $287,400.
$50-Million Bond
The developer obtained a $50-million bond from the city enabling families with moderate incomes--$35,000 to $50,000 a year--to secure 30-year mortgages at a fixed rate of 8.5%, said Marion L. Kiesling, vice president of sales. A special financing package allowed potential homeowners to make down payments as low as 3% of the purchase price, she said.
Conventional home loans require minimum down payments of 10%, with most 30-year, fixed-rate mortgages beginning at more than 9%.
Some skeptics said the project “wasn’t the wisest thing to do” because people might not be willing to buy in the area, said Paul E. Griffin III, company vice president and son of Paul E. Griffin Jr., chief executive officer. But Griffin Homes has proved that young families are willing to buy attractive and affordable homes in an unattractive area, company representatives said.
About 90% of the buyers are from the Valley, a few from Pacoima itself, he said.
Deed Restrictions
Residents began moving into the first-phase units in September. Under an agreement with the city, Griffin Homes sold half those units to families with moderate incomes. Deed restrictions will ensure that those units are sold to moderate-income buyers in the future.
Some units in the second phase will be occupied in September, Griffin said. Construction on the third and final phase could begin in two months, he said.
Community members attending Friday’s ceremonies praised the company for hiring local youths for construction work, sweeping up and running errands.
Among those who will work for the company this summer are Shawn Todd, Johnny Carter and Antiwaun Carter, who said the project has been well-received by neighbors. “It makes everything look nice,” Todd said. “It cleans things up.”
Los Angeles Police Sgt. Jay Frey of the Foothill Division said the condominiums have not necessarily cut down on local crime, but they haven’t made conditions any worse either. The complex appears to be an island of calm, he said.
“So far, it’s holding its own,” Frey said. “It hasn’t added to the problem yet.”
