Arias Housing Investigation Expands to Include More Alleged Fraud in BMR Program

‘Mr Emeryville’ Surrenders Emeryville Loft Home

'Hyper-Local' Promoter , Rob Arias Ensnared in Affordable Housing Fraud Allegations

A family atop Emeryville’s long waiting list for an opportunity to buy an affordable loft home are about to feel that they won the lottery.  The winnings might be easier to come by for more people in coming months as fraud is uncovered in the City's BMR subsidized housing program..

Every unit within one of Emeryville’s main affordable housing programs is being investigated for fraud after authorities uncovered one unit being used as an office. Several other units are under suspicion. It is unclear how many units within the city’s Below Market-Rate (BMR) program are being illegally sublet, used as AirBnBs, or as a pied-à-terre.  There are 238 for-purchase and rental units in the program, in a city where 134 mostly market rate housing units were built in 2020.  There were about 2400 people on the City’s wait list for the last tranche of BMR affordable units that became available. 

Ironically, the incident sparking the investigation starts with one of Emeryville’s leading promoters, a man who made a second career building an on-line hub for positive, ‘hyper-local’ spin.  Rob Arias, editor of the E’ville Eye was asked to sell his loft home at 1500 Park Avenue back to the City this month, after admitting to city investigators he had purchased a Pleasant Hill home in 2019.  Tuesday night, after the lengthy City investigation, the City Council voted to place Mr Arias' Emeryville home on the market so that a needy family can take advantage of his unit, a coveted ownership BMR affordable home.

People using Emeryville’s BMR program must annually certify the unit is their primary residence.  The City investigated following repeated calls from The Tattler after neighbors said the unit was seldom occupied, and even more rarely after business hours.  Numerous photographs taken by Tattler staff showed the unit vacant every night for weeks. The evidence was later confirmed by City staff, presumptively at the behest of the Council. 

When drawn into direct communication with investigators, Mr Arias asked for elaboration on the definition of 'primary residence' even though he had annually signed a legal document certifying the loft had been his primary residence since 2003.

Arias purchased the Park Avenue unit in 2003 for $206,000.  The City paid $338,200 to buy it back this week.  Essentially, Mr Arias received free housing for eighteen years and left with $132,000 in walking around money. He can’t be faulted for that.  That’s how the BMR ownership program is supposed to work.  Give people in need a chance.  But if you strike it rich, or in this case find a way to finance a second home, continuing to own a government subsidized unit is wrong morally.  And legally, if you live primarily in your new market rate home.  It violates the legal annual certification and is a slap in the face to everyone on Emeryville’s lengthy affordable housing waiting list.  

Mr Arias needed an affordable home in 2003 and he was lucky existing BMR unit holders didn’t exhibit the same behavior he has been engaging in over the last two years, otherwise he might not have been able to get affordable housing through Emeryville's BMR program.   People’s financial situations can change.  And the financial lure of holding on to a bargain in Bay Area real estate must be great.  But officials are finally acknowledging in action that poorly supervised affordable housing is an ‘attractive nuisance’ encouraging misuse. 

The housing authority at City Hall is wrapping up its investigation of other abuses in the BMR affordable housing program.  The Tattler has public records requests pending and will continue to report on the un-needy but greedy people who take advantage of Emeryville's good will and non-wealthy people who would be helped with housing in our town. 

Tattler Investigation:
Eight successive nights between 8 PM and 9 PM last spring revealed 
lights out at Rob's Emeryville loft (red arrows).   Early to bed?

Tattler Investigation

Rob's Car is Almost Always Parked at His Pleasant Hill Home

Eight different days; mornings, afternoons and nights.  Only one time

on a Saturday at 11AM was Rob's car not in the driveway. 

A clear sign he likely lives at this address.  The City of Emeryville agreed.

Under Penalty of Perjury Rob Signed This Declaration
This was signed in July 2019 AFTER he and his spouse had
purchased their Pleasant Hill home.  

Rob Forgot What a Primary Residence Was Before His Required Interview by City Housing Investigators
A few days after he sent this email (January 21st) he was interviewed.  He wanted to know what
'primary residence' meant for purposes of the interview, even though he had signed an annual declaration that his Emeryville loft was his primary residence since 2003 without being bothered by this question.

According to Redfin, Rob's home in the suburbs is worth $833,881.  He and his spouse purchased it in May 2019 for $630,000.

Regardless of the government assistance meant for needy families, Mr Arias (and his spouse) own more than $1 million in California real estate, until the final sale of the Emeryville loft probably in about a week