Bonds to Aid Quake Repairs on Buildings
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Apartment building owners who are struggling to pay off earthquake repair bills will get help from a $23-million bond measure approved Friday by the Los Angeles City Council.
The measure provides interest rates of 7% or less, including some with no interest, on mortgage loans for apartment owners who have already accepted city loans to make earthquake repairs and other improvements.
Of the 11 buildings chosen for the mortgage funding, only one was not earthquake-damaged, but required other improvements. The buildings were chosen by city housing officials.
Gary Squier, general manager of the city’s Housing Department, said the low interest rates on mortgage loans will make it easier for building owners to pay off their earthquake loans. Many mortgage loans charge 10% in interest.
“Instead of getting a 10% mortgage, they can get a 7% or 6% mortgage,” he said.
According to a city report, interest rates on the loans are based on how many units the building owners set aside for low-income residents. Buildings with 20% of the units set aside for low-income tenants are eligible for interest-free mortgage loans.
The bonds are guaranteed by the Federal National Mortgage Assn.
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