SOUTHEAST LOUISIANA FAIR HOUSING
HIME LEGAL SERVICES ACTION CENTER
December 21, 2016
ACV VIILLC
D.b.a, American Can
Elwood Cahill, Registered Agent
909 Poydiras St. Ste 2800
New Orleans, LA 70112
Shelley Vollenweider
Property Manager, American Can Apartments
3700 Orleans Ave.
‘New Orleans, LA 70119
By Certified and First Class Mail
Re: Ame
can Can Apartments Evietions
To Whom it May Concer:
We represent Michael Esnault, and other low-income tenants at the American Can Apartments
(hereinafter “American Can”), It has recently come to our attention that ACV VII LLC is
evicting all of the low-income tenants at the American Can as their leases expire, By our
calculation these evictions will affect up to fifty-three households. Mz. Esnault is a Vietnam War
veteran with disabilities who has resided at the American Can for over six years. Several of the
other tenants facing eviction have lived at the American Can for over a decade, Some are elderly
and many have disabilities, All face severe hardship because ACV VII LLC is changing their
subsidized units to market rate and not pursuing ongoing affordability options, We understand
this is due to the January 31, 2017 expiration of a deed restriction binding the property pursuant
to $29 million in tax-exempt bonds received from the Industrial Development Board in 2000.
Our position is that the mass evictions are being carried out in a manner which may violate of the
Fair Housing Act (hereinafter “FHA”) and the Housing and Community Development Act of
1974 (hereinafter “CDA”). At this time we request that ACV VII LLC and American Can
management immediately cease issuing vacate notices and/or filing Rules for Possession
against low-income tenants with expired leases.
ka
qLLSC es BtnJn 2000 the previous owner of the building (3700 Orleans LLC, # subsidiary of HRI Properties)
received a $6.5 million “Section 108” loan from the City of New Orleans, as well as other
assistance through the Community Development Block Grant (hereinafter “CDBG”) program
authorized by the CDA. The loan was prepaid and the corresponding mortgage canceled in 2013
when the property was sold fo your company, Federal regulations dictate that any change of use
of the property within five years of closeout of federal CDBG assistance requires that you:
1. Provide reasonable notice to affected persons;
2. Provide affected persons with an opportunity to comment on any proposed change; and
3. In consultation with local government and affected citizens, decide whether itis possible
and appropriate to maintain a use of the property that meets one of the national
objectives of the CDBG program, inchiding housing for low and moderate income
people,
See 24 CFR $70.489(j). As a successor in interest to 3700 Orleans LLC, ACV VII LLC is
required to follow program regulations. Changing the American Can from mixed-income
housing to luxury housing constitutes a change of use. Two months” notice does not constitute
reasonable notice for residents, many of whom are elderly or have disabilities, who have called
the American Can home for up to eleven years, Further, ACV VI LLC has not provided the
requited forum to engage affected residents about the proposed ehange in use,
Moreover, the federal Fair Housing Act prohibits discrimination based on race, color, religion,
sex, national origin, familial status, or disability. 42 USC 3601 ef seq. A housing provider can
incur liability under the Fair Housing Act where its action has a disparate impact on a protected
group, regardless of intent. Tex. Dep't of Hous. & Cinty. Affairs v. Inclusive Coys, Project, Ine.,
135 8.Ct, 2507, 192 L.Bd.2d 514 (2015). ACV VII LLC’s decision not to pursue ongoing
affordability mechanisms, and the resulting mass eviction of all of the low-income tenants at the
American Can, will cause a loss of housing opportunities that disproportionately burdens people
with disabilities, families with children, and people of color. Statistics show that these protected
groups disproportionately rely on subsidized housing, Our initial contact with tenants facing
eviction affirms that these tenants are disproportionately people of color and people with
disabilities. As such, itis our position that the evictions may violate the Fair Housing Act.
Our clients would prefer to seltle this matter without the need for court action, In a good faith
effort to settle this matter out of court, we request that
1. ACV VIILLC grant a thirty (30) day extension for Michael Esnault and other
tenants asked to vacate by December 31, 2016 while we attempt to amicably resolve
this matters
2, ACV VII LLC immediately cease issuing notices to vacate and/or filing for Rules for
Possession against fenants living in subsidized units while this matter is being
resolved; and
3. ACV VIILLC agree to participate in an interactive process with affected tenants,
their advocates, and the City to evaluate continued affordability options and/or a
more favorable move-out arrangement for tenants,Please contact Hannah Adams at (504) 529-1000 x.258 or hadams@slls.org by December 30,
2016 to discuss this matter.
Sincerely, bal
Hannah Adams, Esq. Cashauna Hill, Esq.
Staff Attorney Executive Director
Southeast Louisiana Legal Services Greater N.O, Fair Housing Action Center
1010 Common St. Suite 140A 404 S, Jefferson Davis Pkwy
‘New Orleans, LA 70412 New Orleans, LA 70119
(504) 529-1000 x.258, (504) 208-5916
hadams@slls.org chili@gnofairhousing.org
ce:
Ellen Lee, Director
City of New Orleans Office of Community Development
1340 Poydras Street, 10th floor
‘New Orleans, LA 70112
Pres Kabacoff, Executive Chairman of the Board of Directors
HIRI Properties, LLC
812 Gravier St. Ste 200
‘New Orleans, LA 70112