Low-Mortgage Luxury : Affordable housing: Gary Mark builds unusual details into his condominium project. But it makes only a tiny dent in the city’s shortage.

The devil, so the saying goes, is in the details.

But developer Gary Mark is only too happy to talk about the details of a new 28-unit condominium project his company is wrapping up in Van Nuys, and it’s some of the building’s smaller touches that make him the proudest.

The kitchen and bathroom sinks in all the units are fronted by a fold-out sponge tray, a tiny feature that is standard in luxury houses but unusual in city-subsidized affordable housing. Also uncommon are walk-in closets, ceramic tile counters, oak cabinets, fireplaces, built-in appliances (including a microwave and dishwasher) and a natural gas outlet for a balcony barbecue.

“We used slate at the entry and brought it inside too,” Mark said, ushering a reporter inside the foyer. “Instead of a long, dark hallway, we designed it so the skylights would bring light in.”

On the market for only two weeks, five of the condominiums are already in escrow. But it makes only a tiny dent in the city’s shortage of affordable new housing, which has eased little despite a drop in real estate prices and interest rates that are at their lowest in decades.

City housing officials are hoping that the Clinton Administration will renew a federal tax-exempt bond financing program so that more such projects can be built. Even though the condominiums at 15455 Sherman Way have some luxuries, they are aimed at first-time home buyers and senior citizens. The bond money arranged through the city and county of Los Angeles and an interest subsidy provided directly by Mark’s company make it possible to pay less to own one of the condominiums than to rent in the area, he said.

Apartments comparable to the 1,100- to 1,250-square-foot condominiums rent for $800 or more, but buying one of Mark’s units could cost as little as $720 a month, including association fees, he said. Seven of the units, which are priced between $130,000 and $150,000, are set aside for buyers who are over 50 years old, and those buyers get a $5,000 discount.

That arrangement is a first under the city’s bond financing program and was suggested by City Councilman Joel Wachs, who represents the area.

“There’s a crying need for senior citizens housing throughout the city--but especially in the Valley--and they should have the opportunity to own houses as well as to rent,” said Tom Henry, Wachs’ planning deputy.

Mark also credited Wachs’ office with helping speed the project through the city’s bureaucracy. Construction was completed about 11 months after the land was purchased. Speeding up the process helped bring down the selling price, he said, because the company had to pay less interest on its construction financing.

Linda Buckspan, a finance officer with the city’s Housing Preservation and Production Department, said the project is unique in another way. It is the only one on the market in the San Fernando Valley that makes use of the city’s bond financing to subsidize mortgage rents for first-time buyers and for senior citizens, if they meet the program’s income requirements.

The maximum income under the program is $55,701 for a family of three.

The federal government authorized the issuance of those bonds in 1990 and 1991, but the Bush Administration failed to renew the program. Buckspan said the city has been told that the Clinton Administration will extend the bond financing program as part of its strategy for reviving urban areas.

If that occurs, she said, the city will be able to assist in financing the purchase of more homes in projects such as the one in Van Nuys built by Mark, who has been working with the city on affordable housing projects since 1984.

“We know he has a very nice product,” Buckspan said. “We don’t ever get complaints that this isn’t working or that isn’t working after they are built.”