Hollywood : Groups Buy Historic House

A historic Hollywood house that a developer wanted to demolish to make room for an apartment building was bought this week by two nonprofit groups that plan to preserve it.

Preservationists say the residence, 5552 Carlton Way--known as the Nelson Dunning House after one of its early owners--is among the last pre-1910 houses left in Hollywood. It was built in 1906.

The Hollywood Community Housing Corp. and the Los Angeles Community Design Center bought the house with the help of a $920,000 low-interest loan from the Community Redevelopment Agency.

The groups plan to renovate the two-story, Victorian house and build 22 apartments on the surrounding property for moderate-, low- and very-low-income renters, said Ann Sewill, executive director of the Los Angeles Community Design Center.

Diversified Income Properties Inc. of Century City bought the property last year and planned to demolish the house to build 46 market-rate apartment units on the property.

But after preservationists, led by a couple who have rented part of the house for six years, blocked the demolition, the company agreed to sell the property to the nonprofit groups.

The couple, Paul Gordon and Donna Williams, will remain at the house as caretakers until renovation begins early next year, Sewill said.