Fake residents, incomes, + inflated mortgages

Another scandal in multifamily housing:  It appears there could be a deep, dark secret at the core of multifamily lending that could destroy the market. 

From a Wall Street Journal article:  
 Owners of an apartment complex near Pittsburgh, who wanted to take out a mortgage on the buildings, allegedly made vacant units look occupied by turning on radios, placing shoes and mats outside doors and in one instance having a woman tell inspectors her boyfriend was asleep inside.      . . .  

According to the WSJ article, the investigation has already led to an indictment against four individuals for allegedly conspiring to falsify loan information in order to obtain more than $167 million in multifamily loans.  The article provides extensive details to some pretty brazen fraud allegations involving the loans backing approximately $1.5 billion in mortgage securities issued by Fannie Mae and Freddie Mac. (Read more; click housing wire link.)
 * http://www.housingwire.com/articles/46496-inside-the-scandal-that-could-explode-multifamily-real-estate

Keeping Residents Informed: REAC Inspections

What is a HUD REAC inspection?  The Real Estate Assessment Center's (REAC) mission is to provide and promote the effective use of accurate, timely and reliable information assessing the condition of HUD's portfolio; to provide information to help ensure safe, decent and affordable housing; and to restore the public trust by identifying fraud, abuse and waste of HUD resources.  (Yet, there have always been HUD properties, with unsatisfactory REAC scores, still doing business with unethical corporate landlords.) 

Prior to the REAC inspection date, the Property Owner/Agent or Public Housing Authority conducts a complete (100%) inspection of the property. It should include the site, all building exteriors, all building systems, all common areas and all units. For clarification purposes: all areas within a building that are not residential units are considered common areas for the REAC inspection.
* https://www.hud.gov/sites/documents/DOC_17204.PDF

This REAC inspection checklist is dated January 2016, but is still used by HUD officials in 2018. It may be helpful for tenants and any tenant organizations to have this inspection list on hand along with your local Board of Health building codes checklist.
 ** https://www.hud.gov/sites/documents/REACINSPECTCHCKLIST.PDF

The Joys of 'Affordable' Housing

From Rooms to Wombs . . . Subsidized or 'Affordable' housing is Socialist housing which eventually leads to Communism where the rights of families and individuals are limited and eventually get taken away. Corporate landlords don't only want to see inside your rented apartment several times each year; they also want to see inside your womb.
* http://www.miamiherald.com/news/local/community/broward/article210731054.html

. . . While big corporate landlords, like Boston Capital, etc., collect tax dollars, they're not always forced to comply with laws.
** http://www.miamiherald.com/news/local/community/miami-dade/article166583487.html


The subsidized apartment complex mentioned in the previous news story isn't the only 'affordable housing' complex that violates tenant rights. Spring Gate Apartments in Rockland, MA hasn't complied with laws or tenant rights during renovations which involved constant hammering next to bedrooms before 8:00 a.m. Noise ordinances, fair housing laws, and other laws are NOT enforced for vulnerable tenants in such housing complexes. Sometimes decent tenants are deliberately harassed and annoyed by corporate landlords and management. The goal is to coerce certain tenants to move out of the nuisance housing complex. Yes, it's illegal, but they get away with doing that too.
** http://www.miamiherald.com/news/local/community/miami-dade/article166583487.html

Sharing the Joy from Spring Gate Apts.

 . . . Still waiting for Mr. Wm. M. Connolly  to turn Rockland Place Apts. dba Spring Gate Apartments into an ASSET for the Town of Rockland as he promised he would do.  Just last month 2 different banks were robbed within 2-weeks by one of the residents he rents a subsidized apartment to.  From  perverts to drug dealers, it's definitely not the first time trouble has spread to the outer community from inside this subsidized housing complex.
  
*** http://www.enterprisenews.com/news/20180424/police-say-woman-out-on-bail-tried-to-rob-abington-bank-with-grocery-bag-over-her-head

*** http://rockland.wickedlocal.com/news/20160803/brockton-bicycle-thief-held-without-bail-for-multiple-house-breaks

**** http://www.patriotledger.com/news/20180424/police-say-woman-out-on-bail-tried-to-rob-abington-bank-with-grocery-bag-over-her-head

***** http://rockland.wickedlocal.com/x1056546451

Criminal Background Checks . . . The news stories above are just tidbits of what goes on in, and from, subsidized housing.  Seems there ought to be better housing opportunities available for innocent people with little income, especially while large corporations enrich themselves with government tax credits and government money from subsidized rents.  Spring Gate reminds some people of a prison facility. It doesn't provide opportunity for low-income, law-abiding, rent payers to grow and advance their lives.  In fact, this type of subsidized housing can be detrimental and destructive to those who speak the truth.

Elderly Woman and Daughter Homeless

* Some people prefer homelessness over subsidized housing.   http://www.fox46charlotte.com/news/local-news/homeless-woman-daughter-struggle-with-finding-permanent-housing (outside link)

Puzzled by All the Inspections?

A new kind of inspection is taking place at Rockland Place dba Spring Gate Apartments along Martha Drive and Hannah Way in Rockland, MA.  U.S. Housing Consultants call it a pre-REAC Inspection. This pre-inspection has taken place over the last 3-days, April 4, 5, 6, 2018 from 9-5. The notice, from current on-site manager, Donna Burks-Smith, was taped to the outside door of each building in the early evening hours. So if you didn't go outside, you weren't notified.  Hoping you didn't have unexpected strangers inside your home on one of those days. (Is this why they don't allow guns on HUD properties?) 

    The notice clearly states they will use their pass key to get inside your apartment if you don't respond to their knock.  You must have your pets caged from 9 a.m. to 5 p.m. for 3-days because you may receive a random visit.  This pre-inspection is in preparation for an actual REAC inspection in July 2018.
    There will be more articles written on this blog to inform puzzled residents some of what these 'inspectors' look for when they visit the property. 
* A Housing Complex in Charlotte, NC fails REAC inspection (maybe they didn't hire a lobbyist?)  http://www.fox46charlotte.com/news/local-news/investigation-townhouse-complex-fails-inspection-could-lose-700000-in-funding (outside link)

So many tenants are growing frustrated with having to open their homes to numerous strangers. Residents are being extremely inconvenienced with extensive paper work and too many visits from managers, owners, investors, state, and federal employees.  At least one resident had to vacate their home for 4-5 months out of 1-year due to an asbestos problem that seemed to disintegrate after Neil H. Ellis and William M. Connolly of Connolly + Partners and First Hartford Corp., etc. etc., paid a lobbyist to talk with a Massachusetts official. There once was a time when only one apartment inspection per year was required and maybe 2 maintenance visits which was more reasonable and humane.  I think most residents know when something in their homes need repair.  They probably even know how to phone the office to notify maintenance/management that they need a repair.  Imagine that!
      
  If you think it's no big deal to have numerous strangers visit your home at inconvenient and numerous times each year, then you've never had to live with such upset and chaos.

@MollyParkerSI  #MollyParker @POTUS45

Happy Birthday and Merry Christmas, Juanita!

Franklin House located in Eustis, Florida and managed by National Church Residences, recently evicted, and had a 93-year old tenant arrested for refusing to leave her apartment just 2-days before her 94th birthday.  "Happy Birthday and Merry Christmas to vulnerable tenants across America!"  

Franklin House is a Section 8, (LIHTC) Low Income Housing Tax Credited property, partially subsidized by HUD.  Franklin House, only scored a value rating of 2 out of 5, which should be a major red flag. This score is significantly below the average.   One news article claims this elderly tenant recently complained about a mold condition in her apartment before she was forcefully evicted from her unit.  Should corporate landlords with low REAC scores by HUD really be allowed tax credits and management of such residences for vulnerable citizens? 

    Difficult to believe this tax-credited corporate landlord couldn't find a more humane way of handling this unfortunate situation with Juanita Fitzgerald.  National Church Residences manages many elderly residences across the U.S.A for which they receive government funds and tax breaks. Like so many corporate landlords who operate subsidized housing for people with little income, National Church Residences is affiliated with NAHT. 
 Read more about National Affordable Housing Trust and their affiliates here:  * http://www.naht.org/who-we-are/our-story

Add'l Information:   Contract rent for a studio unit at this housing program at Franklin House is $1,016 USD, which makes it an expensive option in Lake County. Note that as a Section 8 tenant, your rent will be based on your income. The unit is 30% more expensive than the fair market price of a non-Section 8 unit, although the rent a Section 8 tenant pays is dependent upon income.  Read a copy of the eviction notice and more details here:  
** https://marycumminsrealestatemarycummins.blogspot.com/2017/12/who-is-juanita-fitzgerald-who-was.html

*** https://www.rt.com/usa/413280-eustis-police-woman-eviction-fitzgerald/


        Ms. Fitzgerald has since been provided assistance by a family member, a gofundme page, etc. and is now out of jail with charges dropped.

Holy Porch Monkeys!

    Just rediscovered an article about other abusive management practices at the affordable housing complex, Clarendon Hill Towers in Somerville, MA, where some residents successfully settled in court with the management company.  One of the tenants who hired an expensive law firm to represent her, settled for a lot of money, but also had to sign an agreement that she would not talk about the details of the case any longer.  It seems the details of this complaint also disappeared from public view. Thankfully, I saved a partial copy of some of their abusive practices toward low income tenants which included calling some tenants of color, "porch monkeys". 

    So what did the Democratic Massachusetts Attorney General's Office do when Management was found discriminating, entering female tenants' apartments unannounced, selectively installing a camera by a woman's apartment door,  sexual harrassments, destroying tenants' personal property, following tenants outside of the affordable housing complex, etc.?

     The AG not only allowed one of the abusive managers to keep his job at the development, but replaced the management company with an affiliated management company named Cornerstone Corporation.  A lot of good that did when each company commonly practiced abusing select tenants at more than one of their mismanaged housing complexes. You see, each of the selected management companies had the same partner(s) listed on corporate documents during that same time frame. 

     So, on the surface, it looked as though abuse toward low income tenants wouldn't be tolerated. To the general public, it seemed the Democrat Attorney General resolved the problem and justice was served.  Obviously, the resolution was a deceptive one. The problem was merely swept under a rug.  Looks like those campaign contributions and lobbyist fees really paid off for the corporations again!

Rethinking American Communities

* Secretary of Housing, Dr. Ben Carson speaks on the future
I agree with Dr. Ben Carson that HUD programs need to change for the better.

Affordable Housing is not so affordable to any tenant's health when occupancy agreements and laws aren't enforced. HUD, DHCD, and Low Income Housing Tax Credit #LIHTC programs allow for too many respectable, yet vulnerable, American citizens to be abused and violated while corporations and partnerships enrich themselves off of these taxpayer programs. i.e. Spring Gate Apartments, Rockland Place,Rockland + Clarendon Hill Towers, Somerville, MA   ** Watch How Unethical Landlords Retaliate   https://youtu.be/hDX-D5TyXN0

Have you been threatened by corporate partners or MassHousing to sign misdated or questionnable documents lately?
***     First Hartford Corporation Diverts Funds 
****  First Hartford Threatened by Creditors and Debt

Bad Landlords Take Advantage

I'd sincerely like to know why our government of the United States continues doing business with bad corporate landlords like First Hartford and Cornerstone under the pretense of "helping" low-income people reside in safe, decent (respectable), and affordable housing.  These corporations have a long history of violating people and laws.  And believe me when I say, "I fully recognize their long history of abusive practices."

The link to the following court case, where First Hartford Realty Corp., Linda Hamilton, Jill Ouellette, etc. is nothing compared to some of the illegal, abusive, and unethical behaviors they, and their affiliated partners, have shown to vulnerable tenants over many years.  They get away with violating laws because most good tenants, already in subsidized apartments, are disempowered. (See discrimination lawsuit.) * https://www.justice.gov/sites/default/files/crt/legacy/2013/03/04/clarendonhillscomp.pdf 

What really bothers me is how it's allowed to continue on through various HUD programs with tax dollars from American citizens.  If you aren't already aware, it's extremely difficult for low-income people to prevail in a lawsuit against politically connected, high powered corporate partnerships who are affiliated with larger corporations, lobbyists, and attorneys.  Most unrepresented tenants in poverty are repeatedly FORCED into mediation rooms to sign bad agreements with these unethical corporations.  Yes, citizens are repeatedly denied trials at Brockton Housing Court and elsewhere.

If these housing programs are truly to assist low-income citizens and not these conglomerate corporations and limited partnerships, then one of my good suggestions would be for the government NOT to hand over tax dollars to corporate landlords for partial payment of tenants' rent. This only enslaves an American citizen and denies tenants their rights to freedom of speech and the right to expect lease agreements to be enforced. Provide the benefit directly to the person in need because government programs have no good purpose when they disempower citizens.
** Video from Federal Housing Finance Agency

The constant abusive practices, in too many of these housing complexes, is a very serious problem. It's worse than outsiders could ever recognize.  The tax dollars provided to these unscrupulous corporations, are used to further traumatize and disempower low-income individuals and families throughout the USA. If HUD tax dollars are meant to assist low-income Americans improve their lives, then why are we in need of corporate middlemen who've already been found guilty of fraud and other serious violations to house citizens?  Certainly, there are better ways to provide affordable housing in our country than this outdated method of enslavement!  Truth be told, low-income people can't afford to "move if you don't like it".  (one of property mgmt's. favorite sayings to low-income tenants)



As you can see below, these corporations and limited partnerships intermingle their employees.  These limited partnerships are also listed under a couple of huge HOUSING ASSOCIATIONS who lobby career politicians like @Maxine Waters, etc.  This abuse has gone on long enough and it's time things change for the better.  #DRAIN THE SWAMP! #FinancialWaysandMeansCommittee #Congress #Senate #HouseofRepresentatives
(Click on images to enlarge.)

Jill Ouellette, Janet Hamilton, and others are listed under various corporate partnerships, including Cornerstone, First Hartford Corp, Peabody Properties, etc.