County May Help Victims of Land Scheme Buy Homes

Working-class Latinos victimized by an Antelope Valley land scheme may still share in the American dream of home ownership under an ambitious rescue plan being prepared by Los Angeles County.

Under the proposal, the federal government would help victims buy foreclosed High Desert housing at discounts of up to 30%.

The beneficiaries would be dozens of families living on undeveloped properties purchased from millionaire developer Marshall Redman, who is facing trial on charges of criminal fraud in the scheme.

“We want to take these unoccupied homes and somehow make it possible for victims of this land fraud to get into a position to buy them, hopefully with the county’s help,” said Carlos Jackson, executive director of the county’s Community Development Agency.

“We’re trying to see how creative we can be. Our objective is to help these people become homeowners. We think we can do it.”

Federal officials said they would welcome such offers, adding that the federal government commonly sells foreclosed homes at discounted rates to local government and nonprofit groups.

“We’re open to working with any entity trying to help low-income fraud victims so they won’t become homeless,” said Nancy Flores, a Los Angeles spokeswoman for the federal Department of Housing and Urban Development. “We’ll try and develop a partnership to see which one of our programs would be available to assist these people, including the purchase of foreclosed homes at a discounted price.”

Jackson said he planned to formally contact HUD within a week and present his findings to the Board of Supervisors.

A spokesman for Supervisor Gloria Molina said she also is exploring ways to help make the plan a reality. “Supervisor Molina’s primary concern is to correct the problems suffered by folks involved with this land scam,” said spokesman Michael Bustamante.

“This certainly sounds like a nugget of an idea that could be pursued along with other ideas to help these people out.”

The proposal is the work of a task force, convened this summer by the Board of Supervisors, trying to help people who bought land from Redman. A second task force, attempting to outline new laws to prevent land fraud, is due to report its findings to supervisors next month.

Redman, 68, was charged in May with a High Desert land fraud scheme that involved hundreds of parcels of land and often left buyers with properties that they could not legally build upon.

For years, dozens of Redman’s customers have stuck it out on those far-flung properties, living in substandard housing such as trailers and wooden shanties without heat or electricity.

As part of the program, Los Angeles County officials recently inspected 39 rural properties, helping 13 owners remedy unsafe conditions such as unvented propane appliances, dumping of untreated sewage onto the ground and substandard electrical wiring.

“Some of these conditions were incredibly dangerous,” said county Building Supt. John Kelly. “Many of the homes still do not meet the codes, but our primary concern is the health of these people. We don’t want anyone to die while we figure out how to be bureaucrats.”

In 1992, years before the task force was formed, a woman and a companion who bought Antelope Valley land died of asphyxiation in a house without utilities, after a propane lamp leaked deadly carbon monoxide.

Officials also are referring families to the California Mobile Home Manufacturers Assn. for information on low- and no-down-payment loans to purchase housing that would meet county codes.

But officials are most excited about their idea of helping Redman’s alleged victims purchase abandoned homes in rural areas of Palmdale and Lancaster.

“The goal of these families has always been to own a home, not just a piece of dirt you can’t build upon,” said Jackson, who is also the chairman of the land fraud task force designing ways to prevent property fraud. “This is a unique challenge to us to finally make that happen.”

HUD officials acknowledge that they have more than 100 homes in the Antelope Valley that they plan to sell at auction. However, many are in areas designated as redevelopment zones by the agency and could be sold at a 30% discount to complying nonprofit groups.

“Most often, we sell abandoned, foreclosed-upon homes at public auction, but if the property is in poor condition, nonprofit groups are encouraged to come and buy directly at a discount without competing,” said Victor Lambert, a HUD spokesman in Washington.

“For these homes, the worse shape they’re in, the better chance a county would have at getting them. So, yes, this is all very doable.”

Homes in better shape would be made available for public sale for 10 days before nonprofits could purchase at a discount, he said.

Antelope Valley homeowner groups say the area is glutted with abandoned homes after the most recent real estate slide. The result, they say, is empty homes that are subject to vandalism and other crimes, forcing surrounding property values down.

Robert Keys, president of the Lake Los Angeles Rural Town Council, said the group recently complained to federal officials of the potential crime hazard. He said the task force plan could provide a solution. “Having someone live in a house is better than having it vacant and being vandalized,” he said. “I’d like to learn more about this plan. It sounds very promising.”

County officials say they are researching grants to help families not only purchase the homes but also provide for repair and upkeep.

Hundreds of Redman’s customers are awaiting clear title to their properties from a court-appointed receiver. Those living on land with legal entanglements will eventually have to be relocated, county officials say--making them prime candidates for the HUD program.

“We’re brainstorming,” Jackson said. “Hopefully, the result will be a new class of Los Angeles County homeowners in the coming months.”