Low price put on proposed sale of housing authority buildings

Erin Neff

Friday, Jan. 29, 1999 | 10:28 a.m.

The Las Vegas Housing Authority at a meeting in March will consider selling four of its buildings to two nonprofit organizations -- at a price considerably lower than the appraised value.

The authority's board of commissioners heard arguments for the sale at a special meeting Thursday afternoon.

LVHA is proposing to sell two buildings occupied by the Nevada Association for Latin Americans to NALA for $400,000 cash, despite a $1,838,000 appraisal on the buildings.

The Erma O'Neal Day Care Center, 323 N. Maryland Parkway, and the Arturo Cambeiro Senior Center, 330 N. 13th St., are currently offered to NALA rent-free.

Frederick Brown, the authority's executive director, told the commissioners NALA's cash offer is less than the $762,181 over 20 years -- or $3,180 per month -- that the authority proposed.

"Staff feels that it is in the best interest of both programs to accept their counter offer, especially in light of the fact that the buildings are getting old and will require extensive rehabilitation work in the near future," Brown wrote in a letter.

Although NALA is currently responsible for all repairs, Brown estimates LVHA would have to spend $41,000 annually if it assumed responsibility and liability associated with the buildings.

The terms of the proposed sale are not deed restricted, and NALA could turn around and sell the buildings for profit if changes are not made to the proposal by March.

"What's precluding NALA from buying this for $400,000 and turning around and selling it for $1 million? "Nothing," Commissioner Dewain Steadman said.

Steadman said he would consider such a sale if he assurances NALA would not sell the buildings.

In the other case, LVHA is considering accepting $600,000 cash from the Economic Opportunity Board of Clark County for buildings with an appraised value of $3,375,500. The land the buildings are on is appraised at an additional $1,051,000.

EOB currently leases for $4,400 per month the buildings at 2228 Comstock Drive and 1818 Balzar St. EOB houses its administration and Head Start and Day Care programs at these buildings.

The buildings were constructed in 1977 on 4.1 acres for the purpose of providing services for the residents of the public housing complex of Gerson Park.

Under terms of EOB's lease agreement, the housing authority is responsible for all exterior maintenance, including repair of refrigeration and heating units.

Since January 1997, LVHA spent $44,000 in repairs. On Jan. 5, EOB requested an estimated $50,000 in repairs of structural damage under the Comstock building, according to Brown.

Brown calls the proposed sale a "win-win scenario" for both agencies. LVHA assumes it would cost $46,000 annually to assume total responsibility from EOB of the buildings and the programs offered.

The proposed sale to EOB also carries no deed restrictions and could be re-sold by EOB.