Weeks after the Hayward City Council approved just-cause protections for its renters, the ordinance came back for amendment to exempt one developer from the restrictions. Using state tax credits, Reliant Group planned rehabilitate a Hayward apartment complex for affordable housing. But after reports of evictions at the Leisure Terrace Apartments, Hayward Councilmember Aisha Wahab wants a do-over, saying the developer hid its true intentions from the council earlier this year.
Wahab wants the city council to revisit the decision it made last spring and take corrective action, according to a referral on the Sept. 10 council agenda.
Wahab believes officials from Reliant Group misled the council when it lobbied earlier this year for the city’s help in gaining access to state Low-Income Housing Tax Credits (LIHTC) for the converting the Leisure Terrace Apartments on ‘E’ Street into strictly affordable housing units.
There was some hints of concern back in February when some Hayward councilmembers lightly questioned Reliant’s plan. Comments about tenant relocation payments for some of the current tenants who may earn too much to qualify for the future affordable housing units was mentioned at the public meeting.
Lengthening the notice of evictions to six months was also discussed. “This isn’t a perfect solution,” Councilmember Sara Lamnin lamented that night.
Reliant Group’s foray into the East Bay goes far beyond Hayward. The group purchased the Leisure Terrace Apartments from American Management Group in March. The transaction included six other properties in Antioch, Napa, Vallejo, Hercules, and Dublin, for a total price of $116 million.
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