HUD Decision May Jeopardize City’s Plans to Maintain Apartments as Safe, Affordable Housing
Washington, DC – Senators Hillary Rodham Clinton and Charles Schumer joined Syracuse Mayor Matthew J. Driscoll in blasting the Department of Housing and Urban Development’s (HUD) decision to move ahead with the auction of the ElJay apartments. In a letter to HUD Secretary Alphonso Jackson, the lawmakers criticized the agency for rushing to sell the properties without making sure the new owner of the property is a responsible developer with the ability and track record to ensure that the buildings become a resource rather than a burden to the Syracuse community.
“This decision by HUD to push through the auction of the ElJay apartments is unnecessary, and could help to undo the progress that City of Syracuse has worked very hard to accomplish in the recovery of its housing market,” said Senator Clinton. “It is extremely important that any bidder has the ability and desire to see that the apartments continue to be a resource for the community. I urge Secretary Jackson to weigh our concerns very seriously, and to do what is in the best interests of the City of Syracuse.”
“I made one last effort to convince Secretary Jackson to abandon HUD’s reckless decision to barrel forward with auctioning off the ElJay Apartments, and instead give the city the necessary time to find a responsible buyer who will keep the apartments affordable for Syracuse area residents,” said Senator Schumer. “Over the past two weeks the city has made solid progress in finding a responsible buyer who will make sure these buildings remain a real resource for the community, rather than a liability in the hands of speculators, and still—the federal government has made itself a roadblock, rather than a support system. I made it crystal clear to Secretary Jackson that if given an extension, the City of Syracuse can ensure that these buildings remain a cornerstone for affordable housing.”
“We believe that with more time the city, with the support of the state, and Senators Schumer and Clinton, could have worked with the National Housing Trust (NHT) to put together a responsible financial plan to rehabilitate these buildings and restore them as neighborhood assets. But as of today, the only option we’ve been given to stop the auction is to pay HUD $9.7 million for these properties, which is preposterous,” stated Mayor Driscoll. “The National Housing Trust has significant experience with the restoration of problem affordable housing projects in many sectors of the country and with additional time they could have worked with local not-for-profits, such as the Syracuse Housing Authority and Home HeadQuarters to assure the future viability of these properties.”
A copy of the letter to HUD Secretary Jackson is attached –
April 14, 2008
The Honorable Alphonso Jackson
Secretary
United States Department of Housing and Urban Development
451 Seventh Street S.W.
Washington, D.C. 20410
Dear Mr. Secretary:
We are extremely disappointed in the decision by the U.S. Department of Housing and Urban Development (HUD) to proceed tomorrow with plans to auction the ElJay apartments in Syracuse, New York. Our position on this issue has been very clear: Rushing to sell these buildings to the first available bidder is not only unnecessary, it is a decision that could have a negative impact for the City of Syracuse and will reverse much of the work as been done there to improve the housing market.
Our major concern is that there must be time to make sure the new owner of the property is a responsible developer with the ability and track record to ensure that the buildings become a resource rather than a burden to the Syracuse community.
We recently cited major concerns that HUD had set a sale price that did not take into account the high cost of renovating the properties. We requested a six-month delay so that the City could address the issue of the buildings’ market value, and to continue the process of identifying developers that would act as responsible long-term owners who were capable of performing the rehabilitation work to make these apartments safe and sustainable.
Your Department’s decision to move ahead with the auction does little to assuage our skepticism, and we remain extremely concerned that tomorrow’s potential bidders have not been thoroughly vetted with the best interests of the Syracuse community in mind.
While we strongly object to HUD’s decision, we believe it is critical that before a sale of the development is completed, a thorough assessment of how to maintain the long term affordability of the ElJay apartments must be conducted. Moreover, we understand that HUD is charged with looking at a prospective buyer’s portfolio of properties. As part of that process, we urge your Department to consider the condition of those properties, the treatment of residents with regard to rent subsidies, claims of harassment, evictions, financial issues with local jurisdictions, among other factors. It is our hope that HUD will appropriately scrutinize the prospective buyer to ensure that they are capable of managing a development with such extensive federal subsidies.
With this in mind we urge your Department not to take this ill-advised path, so that the City can continue to make positive strides in their housing market.
Sincerely,
Hillary Rodham Clinton
United States Senate
Charles E. Schumer
United States Senate
Mayor Matthew Driscoll
City of Syracuse
