Unethical Politics in Subsidized Housing

Verrry interesting!  I just came across this well-written article by Eric Convey, the Managing Editor of the Boston Business Journal, published Oct. 28, 2011...... Real estate magnate Arthur Winn and his Winn Columbus Center Limited Partnership have agreed with federal prosecutors to plead guilty to campaign finance violations and pay fines of $1.5 million or more, U.S. Attorney Carmen Ortiz's office said Friday.
Winn, 72, of Chestnut Hill, was charged Friday with violating federal campaign laws by using other people to make more than $150,000 in campaign contributions in excess of those allowed by any one individual under federal law. Winn could face up to one year in prison, Ortiz's office said in a prepared statement.
Some of the money used to reimburse donors came from "publicly-subsidized housing communities," Ortiz said in a prepared statement. She added: "Using strawmen and conduits to conceal the true source of campaign funds....  (Read more details by clicking here.)
     This article reminds me of Mr. William M. Connolly, who worked with, or for, Mr. Winn at Faneuil Hall.   At a meeting with tenants at Rockland Place / Spring Gate Apts., he responded, "It's all about the politics."  
     Considering what goes on at the subsidized Rockland Place apartments, including the hushed requirement for residents to sign fraudulent documentation, perhaps a more accurate phrase would be, "It's all about the swindle."

.005% and Subsidized Corporates

First Hartford Corp. has a .005% ownership interest in and is a general partner of Rockland Place Apartments Limited Partnership (the “Partnership”) which was formed under the laws of the Commonwealth of Massachusetts on May 15, 2006, for the purpose of owning and operating a rental housing project financed with loans from Massachusetts Housing Finance Agency (MHFA) and subsidies from U.S. Department of Housing and Urban Development (HUD).  Due to higher rents, rental income from the apartment complex in Rockland, MA increased approximately $247,000 during fiscal year 2010.
      The Partnership entered into an agreement with the Rockland Housing Authority whereby the Housing Authority has the option to purchase the property after the 15-year tax credit compliance period on January 1, 2024, from the Partnership. What would this mean for residents in 2024 ?

     Tenants on Martha Drive and Hannah Way have been told to write rent checks to SpringGate Apartments instead of Rockland Place.  All of the following companies are the SUBSIDIARIES of First Hartford Corp.:
First Hartford Realty Corporation, incorporated in Delaware;  Lead Tech Inc., Connecticut; Parkade Center Inc., Texas;  Plainfield Parkade Inc., Connecticut; Putnam Parkade Inc., Connecticut; EH+N Construction Company, Delaware; Independence Park Asset Management Co LLC, Delaware; Dover Parkade LLC, Delaware; DE 150 Corp, Delaware; Brewery Parkade, Inc., Rhode Island; Cranston Parkade LLC, Rhode Island; Tri-City Plaza, Inc., New Jersey; Bangor Parkade, Inc., Maine; CP Associates LLC, Rhode Island; Trolley Barn Associates LLC, Rhode Island; Main Street NA Parkade LLC, Connecticut;  Cranston/BVT Associates Limited Partnership, Rhode Island; FHRC Management Corp., Delaware; The Shoppes at Rio Grande Valley LP, Texas; First Hartford Rio Grande Valley LP, Texas;  Triangle Center Inc., Delaware merged into First Hartford Realty Corp January 1, 2010.
     All of the following subsidiaries of First Hartford Corp. are incorporated in Massachusetts: 1150 Union Street Corp.,  Connolly + Partners LLC,  Rockland Place Apartments LLC,  Rockland Place Developers LLC,  Rockland Place Apartments LP,  EH+N U Inc., First Hartford Plumbing Inc.,  FALAH Corp.,  Clarendon Hill Somerville Limited Partnership, Clarendon Developer LLC, Clarendon Hill Somerville LLC.
      Quite a list of subsidiaries!  So, why do residents still see the name of Cornerstone Corporation at the Rockland Place Apartments along Hannah Way and Martha Drive in Rockland, MA?   For good reasons, residents and potential residents should have the right to know the name of every person having, or ever having, a vested interest in any subsidized property like Rockland Place dba SpringGate Apartments. Having this type of information could help a consumer protect themselves against those who are above-the-law.

ON THE LOOKOUT

October 18, yesterday around 5:30 p.m., Rockland Police were called to SpringGate Apts., Rockland, MA over an alleged assault to a 7-year-old girl along Martha Drive by an older black male with a teardrop tattoo under his eye and a skull tattoo on his forehead. The girl's backpack was rummaged through and tossed.  Police searched the area and questionned several residents.  They asked if anyone saw a man meeting that particular description or if the man could possibly be staying in one of the vacant apartments.

Boston to ban smoking in public housing by September 2012

Considering the illegal drugs transported and distributed throughout subsidized housing, how do authorities plan to control the smoking of legal cigarettes?  Boston to ban smoking in public housing next September - The Boston Globe

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PROPERTY ALERT UPDATE!
Corporate management at SpringGate Apartments of Rockland, Mass. claim they perform criminal background checks. However, level 3 sex offenders have resided in and visit this subsidized property.  One  adult male, found guilty of distributing child pornography while paying rent at 141 and 191 Martha Drive, has been frequenting this multifamily housing property again.  The installation of promised security cameras in common areas, and especially by the entrance area, could be helpful in providing a safe, decent living environment for all residents, including children.  As Hillary once said,  "It takes a village to raise a child."
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CONFLICTS of INTEREST or KICKBACKS?
Stockholders or shareholders are considered by some to be a subset of stakeholders, which may include anyone who has a direct or indirect interest in the business entity of real estate, etc.
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MISINFORMED by MANAGEMENT AGAIN
The most recent fire inspection notices posted by FHRC Manager for Rockland Place dba SpringGate Apartments misinformed tenants of the specific fire alarm inspection company providing services to the property.  The real name of the fire systems inspection company performing inspections most recently was Mass. Fire Prevention, Inc. 

Guess Who's Coming to Dinner?

Management of Rockland Place dba SpringGate Apartments posted a notice today regarding another inspection of apartments and buildings, scheduled for October 3 and Oct. 5, 2011.  Not surprisingly, one of the specific company names mentioned in the notice, Fire Alarm Systems, Inc., can not be found under Massachusetts corporate filings or even under filings for public corporate records.  This website on Spectrum Enterprises was found. 
      Did you know that State agencies may allow owners to reconstruct records when the situation warrants, consider incomplete or imperfect documentation, and accept credible oral testimony to determine the owner/taxpayer’s overall compliance with the requirements of IRC §42?  Hopefully, tenants have nothing better to do with their day because no time of day for apartment inspections was provided. Management's notice warns all residents to be prepared on Monday for a visit from the auditors as units will be chosen at random.  Potluck anyone?  On Wednesday, residents should be prepared for fire alarm testing and inspection on the third floors of each building and for access to second floor apartments too.  Though it's important to have an impartial, no conflicts of interest inspection of this subsidized property, shouldn't the fire alarm system inspection be conducted prior to the one for LIHTC?
     With more than enough time provided to Management for these inspections, they've prepared to collect on their affordable housing meal tickets once again.  Staff has spiffied up their subsidized property as if their finest china were on display.  However, with doors suddenly repaired, railings painted, and carpets shampooed, etc., handicapped units remain in non-compliance of the Fair Housing Act.  It's too bad for vulnerable tenants and taxpayers that an audit to allegedly monitor Management's compliance with the LIHTC (Low-Income Housing Tax Credits) Program will, more than likely, fail to reveal abuse of power, harassments, drug dealers, and live-ins remaining on this property.

Some policies needing immediate attention from HUD and Management:
1.  Tenant Selection Plan - A formal written policy statement, developed by the owner and available to the public, that clearly states the procedures and criteria the owner will consistently apply in drawing applicants from the waiting list, screening for suitability for tenancy, implementing income targeting requirements, and offering housing assistance and/or assisted housing units.  The Tenant Selection Plan also includes policies applied to residents of the property such as how unit transfers are carried out.
2.  Unauthorized Occupant -  A person who, with the consent of a tenant, is staying in the unit, but is not listed on the lease documents or approved by the owner to dwell in the unit.  An owner must follow State or local law regarding an unauthorized occupant and establish an equitable and consistent policy and incorporate that policy into the house rules.

Partners in Court

Filed: November 22, 2010 in Suffolk County

Omni Development Corporation v. Connolly and Partners, LLC et al

Millions in Affordable Housing

I don't know about you, but I'm getting tired of reading those typical affordable housing stories of subsidized apartment complexes needing millions of dollars to renovate due to the previous failing management company.  You know the story....  "The development was in danger of foreclosure if its financial and physical condition was not restored" MassHousing said in a press release.   The stories always mention drugs and crime in such places with false promises of cleaning up the crime and how much better the quality of life for low-income residents will be.  Uh-huh.
     The following article informs readers about the negligent property management company called Cornerstone Corporation. By the way,  MHFA or MassHousing previously selected Cornerstone Corporation as the 'SuperHero' management company for Clarendon Hill Towers, Rockland Place Apts., and several other housing complexes too. Since 2005, MassHousing went on another corporate partnership kick.  Can you guess the name of the newly-formed super hero Limited Liability Corporation that flew in to improve Clarendon Hill Towers and Rockland Place Apts. from 2005?  Criminal background checks anyone?*http://somervillenews.typepad.com/the_somerville_news/2009/02/clarendon-hill-towers-receives-money-to-renovate-and-refinance.html
       This Clarendon Hill Towers saga is similar to the one created for Rockland Place dba SpringGate Apts. in Rockland, Mass. that also received millions of dollars for renovations. The name of Linda Hamilton of First Hartford Realty Corp. is listed at both housing complexes too.  I guess we can only hope that around 2015, MassHousing comes up with a different story of hope for low-income tenants. The one of SuperHerosUnited LLC flying in to save our days and cleaning up crime within a couple of years is getting a bit stale. *http://somerville.patch.com/articles/police-make-prostitution-bust-in-clarendon-hill-towers

DOUBLE TALK

To date, state and federal agencies remain indifferent about Management's non-compliance with the Fair Housing Act, Laws, and HUD's rules and regulations.   The Housing Development should conform to requirements of local, state and federal laws, rules, requirements, ordinances, orders and codes, Federal Fair Housing Act and Americans with Disabilities Act (“ADA”), as applicable. 
     Whether it be handicapped accessibility, the pet policy and Management's allowance of pitbulls, their unfair parking policy, and the harassment of tenants, Management consistently applies different standards and enforcements to different households.  Safety code violations still exist for some tenants since the government-funded renovations in 2005. Why does this corporate landlord, property manager, or representative refuse to sign the tenants' copy of lease amendments and numerous recertification documents? 
     If worrying about car vandalism on this property isn't enough, some resident vehicles that are in full compliance of Rockland Place LP's Parking Policy are still being unjustly towed from the housing complex.  There are currently vehicles with parking stickers that read "CORNERSTONE CORPORATION" while other stickers read, "SPRING GATE".  It would be helpful for management to offer only one type of parking sticker per household to avoid some of the confusion with their unfair parking policy.   
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MORE SEPTEMBER TIDBITS
-  September 19th, late afternoon, a large crowd gathered outside of 92 Martha Drive over another loud dispute and disturbance.
 - Gunshots were heard on September 9th and 10th around 11:45pm, and September 16th around 9:30pm along Hannah Way and Martha Drive.  Description of a male was provided to Rockland Police. Police cruised the apartment complex, but found no one matching the reported description.

Invisible Rules are Useless Tools

     MassHousing representatives claim that when a housing complex (like Rockland Place or Spring Gate Apartments) is funded by HUD,  the corporate partners and property management are required to follow the rules contained in HUD Handbook 4350.3 REV-1.   Chapter II of this Handbook summarizes Federal non-discrimination  requirements and lays out for housing providers that receive federal funding from HUD, what they must do, should do, and can do when it comes to Fair Housing.  Fair housing requirements are also incorporated throughout the rest of the HUD Handbook which discusses all aspects of housing management.
        While this information might look impressive in print, it would be much more impressive if these rules, laws, and statutes were actually enforced.  Residents at Rockland Place have not been provided documentation of specific criteria for tenant selection at this poorly run housing complex.  Management's rules are inconsistently applied. This corporate landlord refuses to comply with Massachusetts General Laws, Chapter 186, Section 21.  If you're a low-income tenant and would like a hard-copy of this HUD Handbook 4350.3 REV-1, perhaps HUD could provide you one with a written request. ?
       Executive Order 11063: Prohibits discrimination in the sale, leasing, rental or other disposition of properties and facilities owned or operated by the federal government with federal funds.
     Executive Order 12892: Federal agencies must affirmatively further fair housing in programs and activities, and the Secretary of HUD will be responsible for coordinating the effort.  *http://search.usa.gov/searchaffiliate=housingandurbandevelopment&query=Handbook+4350.3+REV-1