Millville Housing Authority

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Millville Housing Authority, Development Corporation spit bit on managing Glasstown senior housing

nj.com
April 14, 2009
By JASON LADAY

MILLVILLE - The Millville Housing Authority and the Holly City Development Corporation are walking away from managing Glasstown senior residences over fear of future substantial debt that could possibly reach hundreds of thousands of dollars.

While the MHA will continue to provide senior and maintenance services at the River Park complex, Bitonti Company, the developer of the site, is currently in talks with the New Jersey-based Interstate Realty Management Inc. to take over as the new building manager as of May 1.

"Essentially, this is going to be a change of management there," said MHA Executive Director Paul Dice. "The most important thing to take away here is that nothing changes for the residents; by federal mandate the units must remain deed restricted as senior housing.

"For example, they couldn't manage the property and suddenly turn it into a condominium."

Following a joint, closed session on Monday at Ferguson Court, the MHA and HCDC voted unanimously to withdraw from their management agreement over the housing complex, which opened among much fanfare in June of last year.

The property had been heralded as the first in a new generation of "green" senior housing sites.

According to Dice, the combined dangers of revenue loss and the possibility of tax credit investors not receiving returns on their investments made both boards feel uncomfortable looking into the future.

The executive director added the MHA could at some point be liable for "substantial" losses if they continue administering Glasstown.

"Looking at our long-term goals, maintaining that risk over time does not fit in our long-term goals," he said.

Later, he added: "With the tightening in the economy, it being harder to get credit, there are other lines of business that we need to invest in such as the Holly City Family Center and our infrastructure projects. I think we need to focus more on infrastructure on our existing buildings and not be connected with those risks."

Housing officials admitted the authority would lose revenue in rent checks from Glasstown residents.

However, they believed the withdrawal a "good deal for the city" considering the debt and liability they stated they were eager to avoid.

Dice stated the MHA and HCDC are not now completely out of the business of managing new properties, pointing to the HCDC's joint rejected proposal with Eastern Pacific Development Corporation to develop Millville Gardens.

However, he emphasized a desire to bolster the authority's more established housing properties.

Glasstown houses 73 senior units and one unit reserved for a MHA-employed maintenance superintendent, who will remain following the change in management.

Other services to remain after the MHA and HCDC leave are the video surveillance system in place and recertification of resident income.

"Whoever comes in to manage the property would handle intake, new clients and things like that," said Dice. Asked if Interstate Realty is aware of the authority's reasons for relinquishing their management position, he stated: "Yes, absolutely, they know. We're not keeping any secrets here; we're continuing to be very open about this."

	Press Release About Us > News & Press Releases > Press Release Millville Housing Authority, Development Corporation spit bit on managing Glasstown senior housing nj.com April 14, 2009 By JASON LADAY MILLVILLE - The Millville Housing Authority and the Holly City Development Corporation are walking away from managing Glasstown senior residences over fear of future substantial debt that could possibly reach hundreds of thousands of dollars. While the MHA will continue to provide senior and maintenance services at the River Park complex, Bitonti Company, the developer of the site, is currently in talks with the New Jersey-based Interstate Realty Management Inc. to take over as the new building manager as of May 1. "Essentially, this is going to be a change of management there," said MHA Executive Director Paul Dice. "The most important thing to take away here is that nothing changes for the residents; by federal mandate the units must remain deed restricted as senior housing. "For example, they couldn't manage the property and suddenly turn it into a condominium." Following a joint, closed session on Monday at Ferguson Court, the MHA and HCDC voted unanimously to withdraw from their management agreement over the housing complex, which opened among much fanfare in June of last year. The property had been heralded as the first in a new generation of "green" senior housing sites. According to Dice, the combined dangers of revenue loss and the possibility of tax credit investors not receiving returns on their investments made both boards feel uncomfortable looking into the future. The executive director added the MHA could at some point be liable for "substantial" losses if they continue administering Glasstown. "Looking at our long-term goals, maintaining that risk over time does not fit in our long-term goals," he said. Later, he added: "With the tightening in the economy, it being harder to get credit, there are other lines of business that we need to invest in such as the Holly City Family Center and our infrastructure projects. I think we need to focus more on infrastructure on our existing buildings and not be connected with those risks." Housing officials admitted the authority would lose revenue in rent checks from Glasstown residents. However, they believed the withdrawal a "good deal for the city" considering the debt and liability they stated they were eager to avoid. Dice stated the MHA and HCDC are not now completely out of the business of managing new properties, pointing to the HCDC's joint rejected proposal with Eastern Pacific Development Corporation to develop Millville Gardens. However, he emphasized a desire to bolster the authority's more established housing properties. Glasstown houses 73 senior units and one unit reserved for a MHA-employed maintenance superintendent, who will remain following the change in management. Other services to remain after the MHA and HCDC leave are the video surveillance system in place and recertification of resident income. "Whoever comes in to manage the property would handle intake, new clients and things like that," said Dice. Asked if Interstate Realty is aware of the authority's reasons for relinquishing their management position, he stated: "Yes, absolutely, they know. We're not keeping any secrets here; we're continuing to be very open about this."