Local activist warns of private equity taking over affordable housing, amid Izzy Apartments complaints

OKLAHOMA CITY (KFOR) — Local activists are sounding the alarm about private equity companies from out-of-state taking over affordable housing in the metro, leaving no accountability when things take a turn.

We've been telling you about ongoing issues at the Izzy Apartments in Northwest Oklahoma City.

They owed the city thousands in unpaid water bills, which have since been resolved, but recently, tenants received 5-day eviction notices.

Cooper Street Capital is a private equity company based in Colorado.

They oversee the Izzy Apartments and three other properties in the metro, including some in Texas, Ohio, Kentucky, New Mexico, Oregon, and the state of Washington.

Residents believe the management of various facilities has led to a revolving door at the Izzy's leasing office.

"We've gone through five or six different property managers since I've been here, and I've only lived here six months," Kyani Cox said.

News 4 first learned about problems at the Izzy when the City of Oklahoma City issued water shut-off notices.

When calling Cooper Street Capital, they mentioned the notices were a mistake; however, the city's Utilities Department confirmed the slips were legitimate.

Our station was called several times more for eviction notices. Tenants were given five days to move out if they didn't pay the amounts of money management claimed they owed.

Steve Hunt, a community activist, and Marc Wohlbier, a retired Fraud Investigator, say that since the 2008 housing crisis, lower-income housing has been swooped up by big private equity companies from out of state, like Cooper Street Capital.

Hunt says there's no way to hold them accountable, and oftentimes tenants can't afford to seek legal help.

"What it indicates to me is that the owner of the apartment complex is having cash flow problems. The cash flow problems stem from debt service on the property, and they have other properties, and they have borrowed money and they are playing the game of the inflationary asset valuation increase," Wohlbier said.

News 4 has tried getting in contact with Cooper Street Capital for weeks by phone and by email. Anyone we speak to is unable to connect us with the owners of the company.