Under the contract, a low-income occupier was defined as anyone earning less than 60 percent of the area's median heavy income. Income loan.

Murcko said the building's owners began ignoring sustentation and occupant complaints carry on year when it stopped contribution apartments for rent. Since then, harshly 75 tenants found late homes, leaving 75 still living in the building. Those 75 tenants were given information June 20 that the construction would be closed on or curtly after July 15.

In the notice, Cahon Associates cited an operating shortage as a mind for the closure. "Cahon Associates, Inc., the proprietress of the building, cannot grant to sign on another directors actors to operate the California Hotel or sponsor the operating shortfall that exists at the property," the notice states. "Tenants should begin to appear for another place to existent and plan to vacate the building.

" Current tenants refund on average $500 a month for their studio apartments, each of which has a own bathroom. Some units have non-gregarious kitchens, but community kitchens are close by on every floor. California Hotel, at 3501 San Pablo Ave., is advertised as a residency for "very low-income" public on Oakland Community Housing's Web site.

Murcko believes Oakland Community Housing and the other owners want to remodel the pension to calculate it handsome to tenants using Section 8 vouchers, a get that will development in the party being able to urge a higher rent. But Murcko claims in the lawsuit that Oakland Community Housing and Cahon Associates cannot follow through with that foresee because it signed a deal with the allege in 1990 agreeing to keep to the erection to hand for "very low-income" tenants for 30 years. In exchange, the land gave Cahon Associates $7 million in stretch breaks. Under the contract, a low-income lessee was defined as anyone earning less than 60 percent of the area's median vulgar income.

In addition, Cahon Associates received a $4.8 million advance in 1990 from the Oakland Redevelopment Agency to reconstruct California Hotel and elect it accessible to tenants earning less than 80 percent of the area's median glaring income. While the company's covenant with the testify allows it to slash apartments to tenants with higher incomes, it can only do so if it is operating the hallmark at a loss. Murcko, however, claims that Oakland Community Housing and Cahon Associates are making spondulix on the venture.

With 150 tenants paying on typical $500 a month in rent, Oakland Community Housing and Cahon Associates should be receiving at least $75,000 a month in rent, Murcko said. "Based on news and belief, the operating expenses for the California Hotel were under $75,000 a month, including expenses for the managers, security, desk clerks, janitors, maintenance, detritus disposal, energy and water," the lawsuit states. Reach Paul Rosynsky at or 510-208-6455.

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