Another Affordable Housing Default
In yet another blow to the nation's affordable-housing stock, Stellar Management, star of our July/August 2009 story "Mortage Default: Landlord Edition," announced that it will go into default on Parkmerced, a 3,000-unit San Francisco housing project that Stellar purchased a few years back with the goal of remodeling and building new market-rate units.
Earlier this month, the San Francisco Chronicle reports, Stellar's management presented a $1.3 billion long-term proposal to triple the number of units at Parkmerced—but the company also faces October debt payments estimated at more than $500 million.
"We will be facing challenges in the next couple of months," Stellar spokesman PJ Johnston told the Chron. "This may cause some anxiety to some residents. But we are reassuring them this will not impact their daily lives here. We're still committed to this project."