Council, I reviewed staff report for this item, and notice Habit for Humanity is showing a proposal to grant them a $3.6 MILLION Menlo Park taxpayer owned BMR taxpayer grant for the acquisition and "soft costs".
This amount is based on a purchase price of $2.8mm and soft costs of $600,000.
The building is a boarded up old 4 plex on a 4800 sf lot across from 101, with neighboring Affordable Low Income rental units in nearly identical buildings.
County records show that MidPen bought this property for $1.478MM in 2015 with 100% financing...
I drove by the building yesterday and several issues immediately crossed my mind.
1) $2.8FMV is nearly double what the true FMV is for this property. It has been boarded up and would generate at least $6-7K month gross income to a conscientious owners, and, for deserving very Low Income Housing.
An investor can buy a 4 plex in prime downtown Menlo Park or Linfield Oaks for $2.8 today, and this 335 Pierce property is not a Prime Location...
2) What happened to the previous tenants? The MLS records show there were (2) 1 bedroom 1 bath units upstairs, and (2) 2 bedroom 1 bath units downstairs with 4 covered and 1 uncovered parking spaces.
Were previous tenants "evicted", provided moving expenses and comparable or better units by MidPen?
Why did MidPen board up the building, when it could have provided much needed Very Low Income Affordable Housing for 4 deserving tenants.?
There are a great number of 1950s era 4 plexes throughout our community.
3) Im a years long supporter of Habit for Humanity, and have made numerous purchases in the Thousands of Dollars from their Outlets of donated and used items. Ive purchased from their Northern and Southern California outlets to create attractive rental housing opportunities in Menlo Park and other cities for bought my and my clients rental units.
Ive participated and even single handedly renovated units over the years, and would offer my services and recruit qualified laborers to facilitate a Rehab of this building in cooperation with Habit for Humanity.
This 4 plex could use renovation and makeover in a cost effective timely fashion for 4 very deserving Very Low Income Families.
Lots of troubling issues that bear Council questioning Staff about the Collateral Consequences of Council approving this $3.6MM grant when we need Transparency and Accountability.
Your thoughtful consideration of this matter is appreciated by Menlo Park Voters and Taxpayers.
Regards, Rich
Rich Rollins, Broker
Rollins Realty and Management
770 Menlo Ave.
Menlo Park, Calif. 94025
Ofc. 650-327-0375
Cell 415 999 7109
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