“I’m Done with Elorza,” Says Providence Councilwoman Harris Following Housing Announcement
Sunday, September 17, 2017
Providence Councilwoman Mary Kay Harris is blasting Mayor Jorge Elorza for taking credit for the sale of Barbara Jordan I, the privately owned development on the South Side which she said she and Councilman Luis Aponte had led the effort to bring in an outside management firm to take over.
Elorza's office made the announcement Thursday that RI Housing was financing the sale to OmniNY, the New York-based, minority-owned firm whose leadership includes former Boston Red Sox player Mo Vaughn, who Harris said she had been in close talks with throughout the process.
"I'm done with the Mayor -- this is the final straw. I can't have this happening," said Harris. "It's demeaning me, it's bullying me and he's working against me. I can be your best ally...but don't bring me to the other side. You don't want to see that other side."
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTElorza announced the approval of financing by RI Housing to facilitate the sale of the Barbara Jordan I development to OmniNY, to undertake approximately $16.3 million of rehabilitation and will preserve the units as affordable for the next 40 years.
Harris, said she was particularly concerned that she was not aware of the final terms of the deal.
"When I have an event, making an announcement, it's because we've made a deal with this management. I want to know that not raising the rent is still on the table. They said they'll let people stay when renovating," said Harris. "I don't know what he could have done at the 11th hour."
Latest for Barbara Jordan
The effort for financing the sale -- and new management - of Barbara Jordan I was on RI Housing's agenda going back to August 2016.
Meeting minutes showed concerns for the development:
"[RI Housing Development Director] Eric Shorter stated that originally Barbara Jordan was presented at the June 6 Credit Committee where the Board requested additional due diligence. Mr. Shorter explained that the properties are located near the I-95 and Route 6 Exchange and are within walking distance to transportation, shopping, restaurants, churches, schools and entertainment.
Originally constructed in the 1940s and renovated in 1983 and 1984, the current ownership, SCHS Associates, has owned and self-managed the property since the renovations. SCHS Associates has exhibited poor management and oversight of the property, leading to placement of the HAP contract on the HUD Watch list for several years. Moreover, SCHS Associates recently lost the sister project, Barbara Jordan II and its HAP Contract, to a HUD foreclosure."
Harris said she was blindsided by the release from the Mayor's office.
"All I know is I got the press release," said Harris. "I asked him last week when did he start working on Barbara Jordan? I've been talking with them for months. He has put his foot in a mess."
"This is not about Mary Kay. I work with many people, from Congressman, to the SSNA," said Harris. "I was angry, because I've been at the table. Only 3 months ago I had a follow up meeting with RI Housing saying to them now that I wanted to move forward with [tenants] right to refusal. HUD said it had to be a certain amount of low income, and I said we should allow people to grow."
"I made the deal with Omni, they came to us in 2015," said Harris. "I said make sure these people are part of the process....and they're not just low-income people. If the managers do right by these people, we can continue to build and grow."
"He has finally done it -- it's not the first time," said Harris of Elorza. "Everything was done, without even communicating with me. That's how marriage's fall apart. It's lack of communication."
Councilman Aponte expressed similar concerns to Harris.
"I'm struggling to understand what [Elorza] announced," said Aponte. "RI Housing is financing the acquisition from own private owner to another. I have no idea what his role is in this. Mary Kay and I have been working on this."
"I'm glad a deal is getting done, preserving the units was our priority," said Aponte. "I'm not sure how the Mayor's office got in the mix, there are no city resources involved. It's all RI Housing, and these units are in both our wards."
The Mayor's office defended his role on Friday.
"Mayor Elorza was instrumental in facilitating the funding opportunities that are making this project possible," said Communications Director Emily Crowell. "While I can’t speak to other agencies and organizations roles, I know that Mayor Elorza is grateful for all stakeholders who helped make this sale possible."
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