$60,000 in penalties imposed against owners of apartment building not fit to live in

Modesto’s Board of Building Appeals has imposed civil penalties of $60,000 against the owners of a downtown apartment building the city has declared unsafe and unfit to live in, forcing the approximately 80 poor people who live there to find new homes.

The board — whose members are appointed by the City Council — voted 5-0 on Thursday to impose the penalties as well as several hundred dollars in administrative costs against the building’s owners, Turlock residents Steve and Noma Arakelian. They were not at the hearing but were represented by attorney David Hobbs.

Modesto officials say they asked for the penalties because the Arakelians have failed to comply with the city’s plan to repair the building. The city asked for the repairs and other work after inspecting the building.

The two-story complex at 624 Ninth St. consists of 27 studio apartments that rent for $575 or $585 a month, including utilities. Some apartments reek of mold, have rotting bathroom floors, faulty plumbing and electrical, holes in walls and floors and other problems. Tenants complain of rats and cockroaches. City officials also say the building has systemic problems.

The Arakelians have owned the building since August 2005, according to public records.

Hobbs said his clients have made a good faith effort to comply with the city’s plan but lack the economic means to do more and have put the building up for sale. He said it would not be right to punish his clients with $60,000 in penalties and doing so could have a chilling effect on others considering providing rental housing for low-income tenants.

Steve Arakelian has said he had eviction notices given to tenants in mid-July, giving them 30 or 60 days to leave depending on how long they have lived in the building. Tenants say about a dozen children live in the building.

The evictions come as Stanislaus County faces a housing shortage for low-income residents as well as a very tight rental market. Modesto is working with Stanislaus County and social service agencies to help tenants find housing and other assistance. But a few tenants spoke at Thursday’s Board of Building Appeals hearing, saying they need help finding new homes.

Board members said they were sympathetic with the tenants’ plight but such help was outside of the board’s authority.

Steve Arakelian has blamed some tenants for the building’s problems, saying they vandalize and damage it faster than he can have it repaired. He also said some tenants don’t pay their rent and he is reluctant to evict them. But tenants say Arakelian does not make adequate repairs or repairs at all, and the building has been in bad shape for years.

The Bee has filed a California Public Records Act request with Modesto to look at the Fire Department’s annual inspections of the apartment building as well as records for the property related to code enforcement, the city’s neighborhood preservation unit and building safety division.

This story was originally published July 29, 2017 at 5:22 PM with the headline "$60,000 in penalties imposed against owners of apartment building not fit to live in."