HUD Not Renewing Section 8 Contract with Glenarden Apartments I

I’ve been hearing for years that all poor people, no matter what their ethnicity, will eventually be nonexistent in the DMV area.  Didn’t seem likely until this most recent wave of gentrification.  It’s cresting and crashing all over the place even in Prince George’s County.

According to the Washington Post article,(great article by the way) the U.S. Department of Housing and Urban Development (HUD) notified the owners of Glenarden Apartments that they would not be renewing their Section 8 contract with them because part of the complex, Glenarden I, constistently failed inspection.  There have been major crimes in the near past at this property, most notably the toddler who, while in his mother’s arms, was shot in the head during a gunfight.

Intercoastal, a Los Angeles based parent company, said through their representative that they hadn’t received enough rental subsidies from HUD to maintain or rehabilitate the building.  MALARKY!!!  That building is in Glenarden not Manhattan.  HUD, on average, pays WAY too much in subsidies to most apartment building owners.  I’ve known people on Section 8 who moved into “refurbished” apartments/condos where the owners hike up the rents because they know HUD will pay a majority portion.  All owners don’t do it but let’s check the books and see who’s paying what.

Glenarden Apartments was purchased in 1989 for what looks like $16 million dollars. Glenarden I, which is featured in the article, was purchased for $9.6 million.  Listed rents for the property range from $625 for a 1 bedroom to $1064 for a 4 bedroom unit.  So we would have to do the math: Section 8 in Maryland subsidizes a minimum of 70% of rent costs.  Glenarden I has 324 units and um, er, ah…I KNOW I’M ON TO SOMETHING HERE but what? 

I might just be wrong about what this company can afford, maybe that’s what I’m on to.  With a mortgage on a $9.6 million property, property maintenance, staff salaries and modest benefits, maybe this is a bad deal for them. 

I’m still concerned that the working “poor” will not survive in this area, not at the rate it’s changing.  Even Prince George’s County, despite all the bad news on its real estate, is slowly changing.  A good friend who makes good money was outbid on two offers she placed on foreclosed homes.  I encourage everyone who can to purchase a home, even if it’s in a blighted area, and hold on for deal life. 

These are some of the sources I used.  Special acknowledgment to Ovetta Wiggins of the Washington Post for a great story.

Washington Post Story

Glenarden Toddler Shot

www.dat.state.md.us

Intercoastal Group

Glenarden Apartments  

Landover Gateway Implementation Plan

Maryland Section 8 Program