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Possible Sale of Escobedo Apartments

Aerial Map


Council presentation from June 7 (PowerPoint)

   
The Issue In-Depth
Background

City of Mesa staff made a recommendation May 7, 2007 to the Community and Neighborhood Services Committee that the City Council sell Escobedo Apartments on the open market without use restrictions and have the City provide a moving allowance to each household to facilitate the transition of the tenants to other residences. The committee unanimously agreed to the staff recommendation.

Mesa City Council, at its Study Session on June 7, 2007, directed City staff to sell Escobedo on the open market and provide moving allowances of $1600 for tenants residing in a 1 to 3-bedroom apartment (90 units) and $2,250 for tenants residing in a 4-bedroom apartment (6 units). The goal is to vacate the apartment complex by next summer.

In addition, Council’s decision to sell Escobedo constitutes government action and triggers the City’s ability to reopen the Section 8 voucher waiting list. The waiting list was re-opened July 10, 11 and 12.  Any Escobedo resident who applied for a Section 8 voucher will move to the top of the waiting list. The federal government, through Housing and Urban Development (HUD), finances the Section 8 voucher program. It provides rent subsidy to low-income families. Families pay approximately 30 percent, and not more than 40 percent, of their monthly-adjusted income towards rent and utilities.

There are numerous factors that led to the decision to sell the Escobedo Apartments:

  • Operational costs for Escobedo Apartments are from rental income and the City’s General Fund. The City of Mesa does not have a capital outlay program for Escobedo and the needed upgrades to bring the apartment units up to current building code standards are nearly two million dollars.
  • The housing units, located northeast of Center Street and University Drive, will continue to age without additional capital improvements and the City of Mesa, with its fiscal challenges, is not in a position to offer on-going financial support.
  • With the increasing financial limitations on the City’s budget, the Mesa City Council must prioritize expenditures focusing primarily on public safety and infrastructure needs.
  • Top priority of City’s Housing Services staff is to make sure existing tenants are treated fairly during the transition. Tenants will be given moving allowances. Staff will provide tenants with lists of affordable apartments in and around Mesa. Staff will seek help from community partners to assist tenants, if needed, in packing and making driving arrangements to view potential apartments they are interested in.
  • Escobedo Apartments have a rich history dating back to the 1940’s when it was used to house defense workers and their families during World War Two. While it does not have national or historical designation, the City’s Historic Preservation Office will document its historical significance
  • Resources & Key Contacts

    Carolyn Olson
    Housing and Revitalization Director
    480-644-2168
    carolyn.olson@cityofmesa.org

    Ray Villa
    Neighborhood Services Director
    480-644-4546
    ray.villa@cityofmesa.org