SHERMAN OAKS : City Loan Sought for Seniors Project

The developer of a senior citizens housing project planned for Sherman Oaks is seeking a $3.5-million short-term loan from the city of Los Angeles to get the project off the ground, a consultant for the developer said.

Construction of the two-story apartment building, which would sit atop two levels of public parking, is expected to begin by fall.

Meanwhile, local homeowners and business leaders are concerned that repeated requests to see drawings of the structure have gone unanswered.

“We were made certain promises by the city and by the developer,” said Richard Close, president of the Sherman Oaks Homeowners Assn. “Their refusal to show us anything leads to suspicion and concern by nearby residents.”

Though the Department of Housing and Urban Development has promised $6 million for the housing aspect of the project, HUD officials want the parking built before the agency provides its contribution.

“We need a short-term loan,” said Howard Katz, a consultant to the nonprofit Sherman Oaks Senior Citizens Housing Corp., the company created to run the complex. “We’re working with the city right now.”

Vivian Rescalvo, planning deputy to Los Angeles City Councilman Zev Yaroslavsky, said the city Community Development Department may be able to provide a short-term loan until the HUD funds are available.

“We are talking short-term here,” Rescalvo said. “HUD is going to pay for this. . . . We’re working on a solution.”

But residents and business leaders said they are also concerned about the timing of construction, the quality of the building and that parking be made available to replace the public lot that will be displaced by the project.

Katz said residents’ concerns would be met, and that drawings would likely be available within a week.

“I think the community is going to be pleasantly surprised with the project,” he said. “It’s not just a box-style building.”