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Birmingham News (AL) APARTMENTS CAUSE POLITICAL CROSSFIRE April 28, 2004 Section: Neighborhoods Page: 1-H TROY GOODMAN News staff writer More than a year ago, Phillip and Dana Christian determined that a house in Hoover, one of northern Alabama's hottest realestate markets, was beyond their financial means. An apartment, however, was within their budget. So the Christians moved into the aging Spring Aire Apartments off Rocky Ridge Road with their baby girl. Now an elementary school, parks and plenty of shopping are just blocks away, the young couple said. Interstates 65 and 459 are close by, so getting to their jobs seems easier than from other suburbs, they said. But it didn't take long for the Christians to pick up on negative comments being made by some city leaders, school officials and many home-owning neighbors that apartment renters are somehow less worthy than residents in more traditional homes. The apartment critics use terms like transient and substandard housing. It's a dialogue that makes Phillip Christian bristle, he said. "This makes me angry when people act so elitist," the 24-year-old BellSouth technician said. "If there are single-parent families or young families like ours and they want to live in a nice area, they should be able to do that." Hoover apartments generate more than $650,000 in annual revenue for the city through a 1-percent lease tax levied against apartment owners for each rental unit, records show. The complexes also generate property tax, but that goes to the county, according to city Revenue Director Frank Lopez. Homeowners' opposition Still, many Hoover residents don't welcome apartment renters with open arms. Homeowner groups regularly crowd the city's Planning and Zoning Commission meetings to oppose apartment construction out of fear it will bring down nearby home values. Business owners have complained to City Council members about existing apartments, claiming they generate street clutter and drive customers away. City officials say the clustering of apartments is a safety issue, since the majority of nonmedical fire department calls in Hoover are in response to apartment fires. Even the mayor's office is publicizing the fact that, since October 2000, the administration has rezoned a dozen properties that could have contained 1,900 apartment units to some other building class. Those rezoned districts must now contain single-family homes, garden homes or something besides apartments in order for development to move forward. "Hoover is saying 'we don't want apartments' and they take pride in that," said Kent Graeve, president of the Alabama Apartment Association. He said his group has kept a close eye on the situation, and may entervene, in some way politically, if Hoover doesn't soften toward renters. "When we go to other states, there is a more open attitude to more sound planning, Graeve said. The association's Birmingham chapter helps publish the bi-annual Birmingham Apartment Survey. The latest issue, which shows economic activity up to November 2003, found Hoover's apartment market has the highest-priced, newest units of the eight "submarkets" surrounding the Birmingham-Hoover Metropolitan area. In terms of occupancy over a one-year period, Hoover had a net gain of 3 rental units compared to net losses in every other submarket except the Southside, data shows. Councilman vocal The rosy market analysis doesn't impress City Councilman Jody Patterson. Last week Patterson delivered a halfhour speech before the council, criticizing Mayor Barbara McCollum for failing to live up to several 2000 campaign-related promises, including opposing any new apartments. McCollum, who is running for re-election, has taken heat lately for allowing the planned Ross Bridge development on the city's western edge to include 600 apartments. "She keeps saying these apartments that (Ross Bridge developer) Daniel Corp. is putting in Shannon Valley will be upscale, and first class," Patterson said a few days before his speech. "But all the apartments on Lorna Road and other areas were first class 20 or 30 years ago. Now it's totally different." Graeve said such views are misinformed and feed antiapartment sentiments. Graeve, president of Birmingham-based Arlington Properties, which owns several apartment complexes, talked about national statistics that show more and more affluent Americans live in apartments because they want to cut their work commutes and be closer to shopping and green-space areas. Also, Census 2000 numbers reveal demand for apartments is likely to remain strong for the next 10 years, mainly because the fastest growing segment of the population - households without school-age children - is the segment most likely to rent. Graeve said economics will prove that any community push toward 100-percent home ownership will prove risky to personal incomes and property values. "This attitude that everyone has to live in a house . . . my prediction is that in two years, this nation is going to see the highest foreclosure rate we've ever seen in history," Graeve said. Another thorny issue for Hoover has been the school system's decision to rezone, in part, because administrators say they must disperse apartment-based students more evenly among all campuses. The goal, according to the school board, is to lessen student turnover in an effort to improve learning opportunities for all students. The loudest apartment foes have seized on the rezoning issue, using the pressure Hoover schools are feeling as a way to discourage new apartment construction. Two mayoral candidates, Bob Lochamy and Tony Petelos, have been blunt: "no new apartments," each has said during campaign meetings. A survey last year by the Hoover City Schools found that elementary-school student turnover was 47.8 percent for apartment residents, compared to 9.4 percent for single-familyhome residents. Apartmentbased students represented less than a third of total elementary enrollment, though, allowing smaller student turnover numbers to appear large as a percentage. National numbers paint a different picture of apartments' impact on schools, Graeve said. A 1999 survey by the National Multi Housing Council and other advocacy groups found on a unit-by-unit basis, newer single-family houses have three times as many school-age children as apartments. Apartment stats 94.8 % occupancy rate (out of a total 10,597 units) Up 3 Net change in occupied apartments during one year (period ending November 2003). 1,081 sq. ft. Average apartment size $696 Average monthly rent (includes efficiency, one-, two- and three-bedroom units) Sources: Birmingham Apartment Survey, Hoover city schools Note: Data include complexes in Vestavia Hills, south Jefferson County and north Shelby County. They exclude apartments along U.S.
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