Apart­ments

Austin American-Statesman - - MONEY & MARKETS - Con­tact El­iz­a­beth Fin­dell at 512-445-3696. Twit­ter: @efind­ell

in­suf­fi­cient and, at least, got a set­tle­ment that pro­tects af­ford­able hous­ing on 52nd Street.”

The City Coun­cil voted in April to pro­vide fund­ing to move ten­ants out of the build­ings at 1127 and 1205 E. 52nd St., as a judge or­dered. The Olenicks were held in con­tempt for fail­ing to make or­dered re­pairs but staved off a pos­si­ble jail sen­tence when they told the judge they had agreed to sell the prop­erty.

Rep­re­sen­ta­tives of the buyer, Danly Prop­er­ties, said plans aren’t firmed up for what will be built in the area,

but that it will be a mix­ture of res­i­den­tial and com­mer­cial de­vel­op­ment. The in­vestor group wanted con­trol of the Olenick prop­er­ties be­cause it owns other parcels in the same area.

Last month, the coun­cil re­jected a pro­posed set­tle- ment with the Olenicks that would have paid the city $150,000 of the ap­prox­i­mately $800,000 in out­stand­ing fines, al­lowed the sale to pro­ceed

and en­sured that de­vel­op­ers de­mol­ish all sub­stan­dard build­ings and con­struct new hous­ing.

The 7-3 re­jec­tion, with only Coun­cil Mem­bers Jimmy Flan- ni­gan, Ora Hous­ton and Ellen Trox­clair in sup­port, sur­prised buyer Jonathan Saad, rep­re­sent­ing Danly Prop­er­ties, who said he planned to try again and bet­ter ex­plain the deal.

The agree­ment ap­proved Thurs­day is the same as the first ver­sion, in that Austin will re­coup $150,000 of its out­stand­ing fees. It adds pro­vi­sions that any­thing built on the two Olenick parcels, plus two oth­ers that Saad’s in­vestors own in the area, will be re­served for peo­ple mak­ing 60 per­cent of me­dian fam- ily in­come, which this year comes out to $48,850 for a fam­ily of four.

The city will have the right of first re­fusal to pur­chase the prop­erty if de­vel­op­ers de­cline to abide by that stip- ula­tion in the first 15 years of own­er­ship and can also pay for up to 10 per­cent above the re­quired af­ford­able hous-

ing when de­vel­op­ers re­quest re­zon­ing.

All of the Olenicks’ pre­vi­ous ten­ants have found other hous­ing, some of them nearby, Casar said. Though the coun- cil ap­proved up to $600,000 to re­lo­cate those ten­ants, only about $150,000 was ac­tu­ally spent, he said. Saad and Danly Prop­er­ties also chipped in to help pay to move peo­ple.

JAY JANNER / AMER­I­CAN-STATES­MAN

The Austin City Coun­cil ap­proved a set­tle­ment with the own­ers of two apart­ment build­ings on East 52nd Street that re­ceived mul­ti­ple code en­force­ment ci­ta­tions. One of the build­ings is shown in 2013.

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