Beleaguered Tenants Facing Another Problem

Beset by unsanitary conditions, a suspected arson and uncertainty over who owns the place, residents of Haster Gardens in Garden Grove have been hit with another problem: The company that manages the 148-unit complex is pulling out.

Tom Simon, a negotiator representing tenants of Haster Gardens in their dispute with the owners, said it will worsen already bad living conditions.

“Haster Gardens is going down,” he said Monday.

The most immediate problem for tenants is ensuring that their utilities stay on. Deputy City Manager Catherine Standiford said residents have been responsible for paying the electricity and gas bills for their units. But Equity Management 2000 has been paying for the hot water in each apartment and the utilities in the common areas, she said.

Garden Grove, which provides water to all city residents, will speak with the utility companies and the garbage contractor, Standiford said. “What . . . we do about it, I can’t tell you at this point in time,” she said.

The city wants to keep the common areas lighted to ensure the tenants’ safety, she said. “Clearly the city is doing everything it can not to put the residents in a compromising position,” she said. “It’s not the residents’ fault Equity Management 2000 has given notice.”

Since taking over in October, Equity Management has been responsible for the common areas and some apartments. The company’s owner, Peter Star, owns 16 units.

Star’s letter, received last week by city officials, was filled with recriminations.

“Instead of receiving cooperation, assistance, and praise for the outstanding job which we did, . . . we became the object of a smear campaign by politicians, opportunists, troublemakers, and non-paying tenants,” he wrote.

Residents of the building have complained about the poor conditions, including lack of heat and electricity, severe mildew, mice and leaky ceilings. Many tenants report respiratory problems they believe their substandard living conditions have caused. The city has deemed 34 units uninhabitable because of numerous health and safety code violations.

Ron Harper, a consultant with Torrance-based Equity Management, said more than half the tenants have stopped paying rent, which ranges from $597 to $925 a month. As a result, he said, the company is unable to pay the utility bills and will stop managing the complex April 15.

Six families have sued the owners and Equity Management, and the city sued the building owners in January to force them to correct conditions.

In addition, the federal Department of Housing and Urban Development is investigating possible fraud involving government loans.

One problem, city officials have said, has been figuring out who owns the property. The complex is divided into 37 fourplexes that have various owners and frequently change hands.

Harper said the company has spent more than $300,000 in repairs since taking over the property.

But Tomas Del Rio, who organized the rent strike, said there has been no maintenance for months. “What excellent work did they do here? They did nothing,” he said.