Probe of affordable housing spreads to multiple developers

Subpoena covers projects by firms including Carlisle Development, Cornerstone Group, Pinnacle Housing and Related Group

Miami /
Jun.June 24, 2017 12:10 PM

Miami-Dade County has until Thursday to respond to a subpoena for records of all affordable housing projects that got funding from a county bond program.

The subpoena lists multiple developers of county-funded housing projects for low-income people, including Biscayne Housing Group, Carlisle Development Group, Carrfour Supportive Housing, the Cornerstone Group, Pinnacle Housing Group and Related Urban Development Group.

A spokesman for Miami-Dade told the Miami Herald the county is responding a grand jury subpoena from the U.S. Attorney’s office.

County spokesman Michael Hernández told the Herald that Miami-Dade officials believe the distribution of funds from a $137 million county bond issue to finance affordable housing was “appropriate.”

The Miami Herald reported that prosecutors are trying to determine whether affordable housing developers falsified construction costs

In the last two years, executives of Carlisle Development Group and Biscayne Housing Group have admitted to stealing millions of dollars from a program that provides federal tax credits to finance construction of apartments for low-income people. This year, a construction company affiliated with Pinnacle Housing Group paid $5.2 million to settle charges that the company stole federal tax credits for four affordable housing projects

Federal prosecutors now are trying to determine whether developers inflated construction costs to steal money from the Miami-Dade’s bond-funded affordable housing program.

According to the subpoena, Related Group got county bond money for two projects in Miami to build affordable housing for low-income people: $5.5 million for Edificio Pineiro at 1176 Southwest 20 Avenue and $3.16 million for Porto Allegre at 126 Southwest 8 Street.

Hollywood-based Cornerstone Group got $2 million of county bond money for its Villa Capri development at 14500 Southwest 280 Street in the Homestead area and another $10.6 million for its development of the Waterford Apartments at 195 Street and West Dixie Highway in the Aventura area.

Carrfour got almost $5 million of county bond money for its development of Verde Gardens, a 145-unit rental property at Homestead Air Force Base.

Adolfo Henriques, vice chairman of Related Group, the corporate parent of Related Urban Development Group, told the Miami Herald that the company has cooperated with federal prosecutors and all fees paid to Related Urban Development Group in connection with affordable housing projects in Miami-Dade were “completely appropriate.”

A spokesman for Cornerstone told the Herald it hasn’t been contacted by federal prosecutors, and a spokesman for Carrfour had no comment. [Miami Herald] Mike Seemuth


Related Articles

arrow_forward_ios
Alex Sapir and Giovanni Fasciano with Arte by Antonio Citterio in Surfside (Photos via Arte by Antonio Citterio/PR Newswire)
Miami penthouse sets cryptocurrency sale record: $22.5M
Miami penthouse sets cryptocurrency sale record: $22.5M
(iStock)
South Florida resi construction starts soar in March
South Florida resi construction starts soar in March
Eden Multifamily heads Jay Massirman and Jay Jacobson with Cypress Equity Investments CEO Michael Sorochinsky (rendering courtesy of MSA Architects)
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
Eden Multifamily, Cypress Equity score $24M construction loan for Tamarac apartments
(iStock)
Home prices across globe hit records, prompting worries of bubble
Home prices across globe hit records, prompting worries of bubble
Steven and Beth Millner with One Thousand Ocean (Patrick McMullan/Getty, Google Maps)
Private equity honcho pays $5M for Boca Raton condo
Private equity honcho pays $5M for Boca Raton condo
From left: Jim Cohen, Nancy Corey, Nathan Zeder, Alicia Cervera Lamadrid, Phil Gutman and Mike Pappas (iStock)
South Florida’s pandemic-fueled residential market poised for bull run in 2021
South Florida’s pandemic-fueled residential market poised for bull run in 2021
Kathleen DuRoss Ford and 300 North Lake Way (Getty, Google Maps)
Kate Ford’s Palm Beach estate sells for $55M
Kate Ford’s Palm Beach estate sells for $55M
Lennar Executive Chairman Stuart Miller (iStock)
“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...