PHA Takes Control of Brith Sholom Apartments in Philadelphia

By Elias DaSilva | September 11, 2024.

Now, a striking sign from the Philadelphia Housing Authority (PHA) can be seen at Brith Sholom House, a towering 12-story property consisting of 360 affordable senior housing units in Wynnefield Heights.

Recently, the PHA took control of the complex through a $24 million agreement approved by the courts at the behest of the residents. Driven by frustration and fed up with the previous owner’s negligence, the residents decided to take action to save the property. According to provided evidence, these units had accumulated numerous violations and were on the brink of having utilities shut off and a potential foreclosure auction if an agreement had not been reached.

Due to the poor condition, the residents had taken various urgent actions, such as protests, court sessions, and meetings with the PHA board and City Council, in hopes that these authorities would assist them and address the issue to save their homes. It was reported that these events forced many tenants to leave, leaving only about 100 elderly residents behind.

PHA Executive Director Kelvin Jeremiah noted that the Puretz family, owners of the apartment complex, had neglected to make essential repairs and important maintenance to preserve the building, which was constructed in 1955. He also highlighted that residents faced security issues, conflicts with illegal occupants, “hundreds of thousands of dollars” in overdue utility bills, and retaliation from the management for voicing their concerns about the conditions.

The Puretz family, and all companies associated with them, have faced issues not only with this property but are now accused nationwide of buying affordable housing complexes to extract value while offering minimal support to their tenants.

In light of these issues, one family member pleaded guilty to electronic fraud in a federal court in June after authorities discovered that he provided fraudulent documents to obtain loans for three properties in Arkansas, Illinois, and Michigan.

As a result, the property, located next to City Avenue, was placed under judicial administration as part of the foreclosure proceedings initiated by the mortgage holder, New World Commercial Credit. Last month, the PHA and the lender reached a sale agreement approved by a judge.

The $24 million approved comes from federal funds from the U.S. Department of Housing and Urban Development and will be distributed among creditors, including the Philadelphia Water Department, Philadelphia Gas Works, and PECO. The three companies agreed to accept a considerably lower amount than what was owed to facilitate the transaction. According to court documents, the previous owner group is not allowed to receive any money.

Regarding this agreement, Mayor Cherelle Parker stated, “Let there be no doubt, the problems here stemmed from the deliberate negligence of the owners who extracted all possible value from this building without regard for the affected lives.” She also noted that the Brith Sholom agreement aligns with her main goal of creating or preserving more than 30,000 affordable housing units and has committed to providing the PHA with $8 million to carry out all necessary repairs and renovations on the property.

In turn, the Housing Authority, through Board Chair Lynette Brown-Sow, stated that in the coming months, it will assess the building, work to meet city code requirements, and begin extensive rehabilitation of the property.

To start addressing the situation and due to the dangerous conditions, the PHA has already hired a 24/7 security company. Tenants will now have an on-site manager during weekday business hours and can contact the maintenance line to report any issues. Most importantly, according to statements, they have waived rent payments for September and October for the current residents of the Brith Sholom apartments.