Homewood: Flosswood Station condos can’t be rented out
By Ginger Brashinger Correspondent July 13, 2012 9:32PM
Updated: August 17, 2012 6:29AM
A bank’s request to rent out 15 units at the 20-unit Flosswood Station condominium complex in Homewood until the condo market improves was rejected by the village board.
That Homewood Mayor Rich Hofeld and village trustees didn’t even bring the issue to a vote Tuesday didn’t surprise Old National Bank official Brian Finnegen, but he still was disappointed.
“I was expecting this outcome after the first two meetings,” Finnegen said. “I was a little naive before.”
Citing the collapse of the condo market, the bank wanted the village to amend a 2001 ordinance requiring owner occupation of the properties on 183rd Street near Park Avenue. Finnegen said allowing the units to be rented out until they could be sold would make them more attractive to investors.
Attorney Jonathan Koyn also said the bank had several interested investors who would temporarily rent out the 15 remaining units “to cover carrying costs while they wait for the market to recover.”
Koyn argued having the units occupied would stabilize property values and bring revenue into the village. But Hofeld said the “owner occupied” ordinance, adopted in 2001, was to protect the property owners.
“I thoroughly agree with that,” Hofeld said.
Trustee Tom Kataras said he had a “problem with changing the rules to suit the bank.” Trustees Barbara Dawkins, Anne Colton and Lisa Purcell said having renters as opposed to owners would not have a stabilizing effect on the market.
“There is a difference,” Colton said, noting that people bought units with the understanding they all would be owner-occupied.
“For us to do a bait and switch on them now, that would be wrong,” she said.