The owners of a federally subsidized housing complex that has repeatedly failed inspections have been given two weeks to submit a corrective action plan, or the federal government will foreclose and relocate more than 50 families living there.
The U.S. Department of Housing and Urban Development issued its notice to Sean Hardies of Amsterdam and Arthur Loomis of Rome, owners of Highland Gardens and Holland Gardens, on April 2. They operate the complex under the corporate name of SHE Corp. Hardies and Loomis were not available for comment Friday.
The government wants Hardies and Loomis to submit details regarding a proposed purchase and sale agreement for the 100-unit complex on Church Street and Clizbe Avenue.
It also is requiring them to address repayment of “retained excess income” for the complex during a period when the owners’ “failed to maintain the property in a condition that is decent, safe and sanitary, and in good repair.”
The government is seeking repayment for a period between Aug. 1, 2010, to Sept. 30, 2011, for Highland Gardens, and between Aug. 1, 2009, to Feb. 29, 2012, for Holland Gardens.
HUD told the owners it will no longer provide subsidies until deficiencies are fixed at the complex. In 2011, HUD provided $172,000 in subsidies to SHE Corp. for Holland Gardens and $173,000 in subsidies for Highland Gardens.
HUD further stated that if it does not receive the requested information by the end of the deadline, HUD will relocate the tenants and foreclose on the property. SHE Corp. has a mortgage through the Federal Housing Administration.
In early March, SHE hired CRM Rental Management in Rome to manage the complex. CRM spokesman John Varecka was not available for comment.
Holland Gardens received a physical inspection score of 37 following a federal inspection March 2. A prior inspection yielded a score of 43. Scores of 60 and above are satisfactory and 59 and below are failing.