 |
||||||||
 |
||||||||
|
||||||||
|
Suit seeks control of housing
By ALEX LEARY, Times Staff Writer CRYSTAL RIVER -- The federal government is seeking control of the Atlantis Arms and Greenleaf Forest subsidized housing complexes, accusing the owner of failing to follow basic accounting procedures and allowing the property to slide into disrepair. In a lawsuit that could lead to foreclosure, the Office of Rural Development states that Crystal River RRH Ltd. has defaulted on the covenants of the 50-year loan agreements dating to the 1970s. The suit represents the most forceful action taken against the Gainesville-based group, which for years has battled allegations of neglect and mismanagement of the apartments off Fort Island Trail. And it further delays use of a $1.4-million federal loan that was secured in 1999 to overhaul the apartments but has gone untouched as a result of a dispute between Rural Development and Crystal River RRH. Rural Development, an extension of the U.S. Department of Agriculture that has been criticized for not doing enough to address the problems here, has asked the circuit court to appoint an agency to oversee the property while the case is argued. Crystal River RRH can seek conventional financing to pay off nearly $1-million in outstanding debt, but "because we feel this whole issue is wrong, we have not exercised that option," said spokeswoman Tashia Hale. She noted that paying off the loans would make the complex a fully for-profit venture and many of the residents could no longer afford to live there. The average tenant pays $100 per month in rent, with the government using tax dollars to subsidize the rest. Full rent is between $352 and $407. If a deal cannot be reached on an accelerated debt schedule, the government will ask the court for foreclosure. Rural Development said it would try to transfer the property to a new owner that would keep the 84-unit complex in the subsidized housing program. "We don't anticipate it reaching that point," said Hale. "We think the court will look at it in a different light." The government lawsuit charges that Crystal River RRH: Failed to use due diligence in verifying tenant income, check credit reports or speak with previous landlords. Failed to maintain all tenant files, collect rents in a consistent manner and ensure apartments were maintained by tenants. Did not promptly address health and safety violations, allowed the property to deteriorate "substantially," and failed to maintain the grounds. Did not allow proper access to tenant records during inspections and failed to maintain complete records. Several Rural Development officials, including Charles Nichols, head of the Ocala office, declined to discuss the points outlined in the suit, as did the Clearwater law firm handling the case for the government. In court papers filed this month, Crystal River RRH flatly denies the allegations, saying Rural Development has "waived any of the alleged regulatory non-compliances by inspecting, advising and approving" compliance "for a period of time in excess of 20 years." The company asserts that Rural Development has attempted to impose restrictions outside the loan agreement, such as rejecting tenants with below average incomes, and did not provide sufficient notice of alleged problems so they can be corrected if needed. Hale, whose father, John Curtis, is the main player in Crystal River RRH, runs Jotar Management Services, which oversaw the complex until February. At that time, a new company was brought in, Southwind Management Services Inc. of Clearwater. Hale said it made sense because Southwind manages other properties owned by her father. As for Crystal River, she acknowledges the apartments need work but said they are no worse than other subsidized units of the same age. Caught in the middle are the residents of Atlantis Arms and Greenleaf Forest, most of whom received the confusing legal papers on March 14. In a followup letter to residents, Rural Development said it did not authorize the release of the documents and sought to assure residents that "we are working on resolving the problems at these two projects." Still, questions abound. Deborah Clark, who has lived there for eight years, said her neighbors are happy that something is being done to ease their frustration. But they are unsure what will happen next. "We don't know what's going on, if they are going to close the place down or someone else is going to take over," Clark said. While problems have come and gone over the years, and improvements have been made, the basic complaints center on poor upkeep and drug and alcohol use by tenants that, some say, has made for an unsafe environment. The situation got so bad that in 1998, the Sheriff's Office assigned a deputy to a station nearby. Sheriff Jeff Dawsy wanted an officer at the complex but Jotar Management Services denied that request. U.S. Rep. Karen Thurman also got involved and helped arrange for a $1.4-million loan to fix up the apartments. That was in 1999. Today, the money remains unspent as a result of a disagreement over control of the funds. Crystal River RRH wants to use its own construction company to do the work; the government says it must go out to bid, in part because of past problems. Hale blames Thurman for the negative attention. "She has been the backbone of many of these problems," she said. The congresswoman said she has only responded to cries for help from the tenants and their advocates. "It's always been about the residents and making sure they were being taken care of and looked after," Thurman said. "I've heard good things about the Curtises, but for whatever reason, this one has not worked out for them."
 © 2006 • All Rights Reserved • St. Petersburg Times
490 First Avenue South • St. Petersburg, FL 33701 • 727-893-8111 
|
Citrus Times |
