Millville Housing Authority

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Authority to cease managing Glasstown Residence

The Daily Journal
April 14, 2009

MILLVILLE -- The Millville Housing Authority is pulling out from its management of the Glasstown Residence on South 2nd Street.

The authority's Board of Commissioners voted at a special meeting Monday to negotiate a withdrawal from its contract with co-manager Bitonti Development Company of Wayne, Pa., for the property, according to MHA Executive Director Paul Dice.

Bitonti is negotiating with Interstate Realty Management Co. in Marlton to replace the MHA, he said. The changeover could happen by May 1.

Federal law protects the 70-plus unit property from changing its mission as an affordable housing complex for seniors, Dice said.

Under the contract, the MHA was liable for deficits for the first three years of the property's operation and for the first 15 years of deficits incurred by the tax credit investors, Dice said.

The property is not operating at a deficit, but Dice said the withdrawal protects the authority in case something unforeseen happens, and the property loses substantial money.

"We don't have the financial wherewithal to withstand a severe downturn," he said. "It's part of our due diligence to do this move."

The current property is different from the authority's other complexes because it has a mortgage and debt service, Dice said. The authority may not be against new construction in the future, he said, adding the MHA did place a bid to redevelop the former Millville Gardens site.

The authority is still negotiating with Interstate to provide maintenance, security and senior services at the property, Dice said. The property opened in June, but Dice said the authority is still proud of its role in attracting developers and building the site.

	Press Release About Us > News & Press Releases > Press Release Authority to cease managing Glasstown Residence The Daily Journal April 14, 2009 MILLVILLE -- The Millville Housing Authority is pulling out from its management of the Glasstown Residence on South 2nd Street. The authority's Board of Commissioners voted at a special meeting Monday to negotiate a withdrawal from its contract with co-manager Bitonti Development Company of Wayne, Pa., for the property, according to MHA Executive Director Paul Dice. Bitonti is negotiating with Interstate Realty Management Co. in Marlton to replace the MHA, he said. The changeover could happen by May 1. Federal law protects the 70-plus unit property from changing its mission as an affordable housing complex for seniors, Dice said. Under the contract, the MHA was liable for deficits for the first three years of the property's operation and for the first 15 years of deficits incurred by the tax credit investors, Dice said. The property is not operating at a deficit, but Dice said the withdrawal protects the authority in case something unforeseen happens, and the property loses substantial money. "We don't have the financial wherewithal to withstand a severe downturn," he said. "It's part of our due diligence to do this move." The current property is different from the authority's other complexes because it has a mortgage and debt service, Dice said. The authority may not be against new construction in the future, he said, adding the MHA did place a bid to redevelop the former Millville Gardens site. The authority is still negotiating with Interstate to provide maintenance, security and senior services at the property, Dice said. The property opened in June, but Dice said the authority is still proud of its role in attracting developers and building the site.