GREATER New ORLEANS FAIR HOUSING ACTION CENTER December 22, 2016 ACV VIILLC D,b.a. American Can Elwood Cahill, Registered Agent 909 Poydras 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: American Can Apartments Evictions 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 VIL 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. Mr. 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 vaeate notices and/or filing Rules for Possession against low-income tenants with expired leases. caret: nesIn 2000 the previous owner of the building (3700 Orleans LLC, a 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: Provide reasonable notice to affected persons; Provide affeoted persons with an opportunity to comment on any’ proposed change; and In consultation with local government and affected citizens, decide whether it is possible and appropriate to maintain a use of the property that meets one of the national objectives of the CDBG program, including housing for low and moderate income people, See 24 CFR $70.489()). As a successor in interest to 3700 Orleens LLC, ACV VII LLC is required to follow program regulations. Changing the American Can from mixed-ineome 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 VII LLC has not provided the required forum to engage affected residents about the proposed change 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 seg. A housing provider can inour 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. & Cy, Affairs ¥. Inclusive Cmtys, Project, Inc., 135 8.Ct, 2507, 192 L.Ed.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, it is our position that the evictions may violate the Fair Housing Act. Our clients would prefer to settle this matter without the need for court action. Ina good faith effort to settle this matter out of court, we request that: 1, ACV VII LLC grant a thirty (0) day extension for Michael Esnault and other tenants asked fo vacate by December 31, 2016 while we attempt to amicably resolve this matters 2, ACV VII LLC immediately cense issuing notices to vacate and/or filing for Rules for Possession against tenants living in subsidized units while this matter is being resolved; and 3, ACV VII LLC 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, buh 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 400A 404 S, Jefferson Davis Pkwy New Orleans, LA 70112 New Orleans, LA 70119 (504) 529-1000 x.258 (504) 208-5916 chill@gnofaithousing.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 HRI Properties, LLC 812 Gravier St. Ste 200 New Orleans, LA 70112