The petition follows years of neglect at the low-income housing complex, which has racked up over 1,900 code violations and multiple condemnation orders. Half of the units are either empty or deemed uninhabitable, city officials said. Despite repeated citations, necessary repairs have not been completed, leaving tenants in precarious conditions.
The property, owned by Peter Siegel of Uptown Partners LP, has faced financial turmoil. Siegel filed for Chapter 11 bankruptcy in August 2023 after losing more than 60% of the complex’s Section 8 funding. Although the property was auctioned in July 2024 with New Jersey-based real estate firm ANCDI emerging as the highest bidder at $9.6 million, the sale remains stalled pending approval from the U.S. Department of Housing and Urban Development (HUD).
Mayor Williams expressed her frustration over the delays. "We are in an urban economic housing crisis. I am fed up. It is unacceptable that a 221-unit building currently deemed uninhabitable cannot be purchased and updated when there are plenty of buyers knocking at the door," she said.
She also criticized the courts for granting more time to a HUD-deemed unqualified buyer. "The property owner, Uptown Property LP, needs to be held accountable and address code violations so that we can move forward with this important project," Williams added.
The ongoing legal and financial complications have left tenants in limbo, enduring substandard living conditions and an uncertain future. “We have to do what is best for the current and potential residents of Governor Square Apartments,” Williams said.
The city’s petition seeks court approval for a receiver to take control of the property, expedite necessary repairs, and resolve the housing crisis for the complex’s tenants.
The case remains under review, with no timeline set for resolution.
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