Millville Housing Authority

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Millville Housing Authority to give up Glasstown Residences

pressofAtlanticCity.com
April 14, 2009

MILLVILLE - More than a year ago, officials with the Millville Housing Authority looked at its newest senior midrise as a crowning achievement.

Dale Gravett, then executive director, stood in a hallway among walls, some with drywall, some still just metal frames, and said the Glasstown Residences at River Park was the building of the future.

Now, the authority wants to separate itself from the state's first green public housing building. With an administration now focused on fiscal responsibility and sustainability, the authority no longer believes the building is viable.

Current Executive Director Paul Dice said the housing authority board on Monday approved the termination of its property management agreement. This, he said, eliminates the authority's liabilities and all debt associated with the property.

"There are losses that could take place, and this preempts tax," Dice said. "To pull back from these liabilities, there's got to be a change in property management."

The authority is in negotiations with Interstate Realty Development to take over management of the property and its 73 apartments. Interstate Realty is based in Marlton, Camden County.

Dice stressed that there would be no changes to residents living there. Federal law dictates that the building must remain in use as senior housing, even if the authority no longer is involved.

Investors' tax credits built Glasstown Residences. Before construction was complete, authority officials hoped to purchase the building after the credits expired. That's just not an option now, Dice said.

"Clearly, this made since at a different time," he said. "To sustain the long-term viability of the company, we have to stick with our preexisting buildings."

Extracting itself from Glasstown Residences frees up the authority for more and different investments, Dice said. The goal of the authority now is to invest in its current buildings and properties, of which the authority owns several.

Most of the senior residences across the city, such as Riverview East and West, are older buildings that require updating.

"We must deal with all of our collective properties," Dice said. "I think we can do that more effectively."

Dice said the authority will still try to maintain a presence in Glasstown. Currently, the board is negotiating with Interstate Realty to have an on-site maintenance professional stay at the site. The authority also would like to remain in charge of security there.

"There is still potential revenue," Dice said, adding that it would be decreased dramatically once the switch to Interstate happens.

The authority is not giving up on new projects, Dice said, adding that the company was in discussions to rebuild the Millville Gardens site in the city's 3rd Ward - but Glasstown just isn't worthwhile.

Dice said the switch to Interstate Realty probably would happen May 1.

	Press Release About Us > News & Press Releases > Press Release Millville Housing Authority to give up Glasstown Residences pressofAtlanticCity.com April 14, 2009 MILLVILLE - More than a year ago, officials with the Millville Housing Authority looked at its newest senior midrise as a crowning achievement. Dale Gravett, then executive director, stood in a hallway among walls, some with drywall, some still just metal frames, and said the Glasstown Residences at River Park was the building of the future. Now, the authority wants to separate itself from the state's first green public housing building. With an administration now focused on fiscal responsibility and sustainability, the authority no longer believes the building is viable. Current Executive Director Paul Dice said the housing authority board on Monday approved the termination of its property management agreement. This, he said, eliminates the authority's liabilities and all debt associated with the property. "There are losses that could take place, and this preempts tax," Dice said. "To pull back from these liabilities, there's got to be a change in property management." The authority is in negotiations with Interstate Realty Development to take over management of the property and its 73 apartments. Interstate Realty is based in Marlton, Camden County. Dice stressed that there would be no changes to residents living there. Federal law dictates that the building must remain in use as senior housing, even if the authority no longer is involved. Investors' tax credits built Glasstown Residences. Before construction was complete, authority officials hoped to purchase the building after the credits expired. That's just not an option now, Dice said. "Clearly, this made since at a different time," he said. "To sustain the long-term viability of the company, we have to stick with our preexisting buildings." Extracting itself from Glasstown Residences frees up the authority for more and different investments, Dice said. The goal of the authority now is to invest in its current buildings and properties, of which the authority owns several. Most of the senior residences across the city, such as Riverview East and West, are older buildings that require updating. "We must deal with all of our collective properties," Dice said. "I think we can do that more effectively." Dice said the authority will still try to maintain a presence in Glasstown. Currently, the board is negotiating with Interstate Realty to have an on-site maintenance professional stay at the site. The authority also would like to remain in charge of security there. "There is still potential revenue," Dice said, adding that it would be decreased dramatically once the switch to Interstate happens. The authority is not giving up on new projects, Dice said, adding that the company was in discussions to rebuild the Millville Gardens site in the city's 3rd Ward - but Glasstown just isn't worthwhile. Dice said the switch to Interstate Realty probably would happen May 1.