Arroyo Vista, formerly known as Haster Gardens, was once regarded as one of the worst slums in Orange County. Now, this apartment community has transformed into safe, secure and decent housing for moderate and low-income families living in Garden Grove, Calif. The community, originally built in 1963, was owned and operated as 148 apartments in 37 separate four-plex buildings until 1996. When the property was sold in 1996, the new owners - engaged in criminal activity - sold the individual buildings to separate investors at inflated prices. Over the next three years, the property deteriorated as the owners failed to maintain or manage the project. Vista Communities worked closely with City officials to find cost-effective solutions to the poor living conditions evident at Haster Gardens. Ultimately, the City took legal action to place a court appointed receiver in the property to manage the property until a permanent solution could be identified.
Vista Communities, in conjunction with the City, entered into a housing rehabilitation agreement that facilitated a loan of federal HOME funds to acquire and rehabilitate the project. Under the agreement, a portion of the apartments have been reserved for low-income families. Vista Communities then formed Arroyo Development Partners to acquire, rehabilitate and operate the newly renamed Arroyo Vista community. Through this project, Vista Communities, Inc. has demonstrated that public/private partnerships to improve troubled housing can be successful without creating an additional tax burden on the City.