<%@LANGUAGE="JAVASCRIPT" CODEPAGE="65001"%> East Palo Alto Housing Crisis

 

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East Palo Alto Housing Crisis Continues

By Chris Lund
February 17, 2009

CalPERS is involved.


The current East Palo Alto affordable housing crisis continues to impact over 5000 residents.

In what is commonly described as a predatory equity scheme, Page Mill Prop- erties, a Palo Alto based real estate investment firm has purchased 1789 rental units since late 2006 in the Woodland Park
neighborhood of East Palo Alto, roughly 50% of the city's rental housing stock.

Using state pension fund money, Page Mill Properties hopes to make "opportunistic" profits for itself and its partners (annual return on investment > 13%) at the expense of the City of East Palo Alto and its low-income citizens. CalPERS current investment in this fund is roughly $100 million.

CalPERS may also be acting as guarantor on an additional $400 million worth of loans used to leverage the initial equity offering for this fund. This is yet another example of the the privatization of profits and socialization of downside risk that we have seen play out on the national stage over the past several months.

The East Palo Alto housing crisis website was updated significantly over the week-end.

Please take a minute to view our new photo gallery (Photos & Flyers) and read the new information on CalPERS involve-ment. Federal tax dollars may ultimately be used to cover the anticipated losses.

www.epa-tenants.org

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Christopher Lund, Ph.D.
Communications Program Director
Fair Rent Now Coalition