Renovations to an Allapattah Section 8 housing development grind to halt

Six months into renovating the property, tenants continue to live in a construction site

Miami /
Aug.August 14, 2017 12:20 PM

Delays are mounting on a publicly financed renovation project for a Section 8 housing development in Allapattah due to permit discrepancies and shoddy construction paperwork, according to the Miami Herald.

The 196-unit Civic Towers at 1855 Northwest 15th Avenue sits on a 2.81-acre lot. Nearly all of the 17-story building’s units are Section 8 housing. To qualify, residents must make less than 50 percent of the area median income.

Redwood Housing Partners of Burlingame, California, which bought the Civic Towers in Allapattah for $25 million in February, promised to renovate the development after purchasing the property from Cordova, Tennessee-based Global Ministries Foundation. Six months later tenants remain living in construction-crippled units, with exposed wires, barred windows and rats, according to the Herald.

Rent for a one-bedroom is $864 a month, according to financial website Credio.

Delays were related to misrepresentations by the project’s assigned contractor, Louisiana-based Pete Vicari General Contractor Inc., by underreporting the value and scope of the project, according to the Herald.

Records the newspaper reviewed show that Pete Vicari General Contractor applied for a master permit from Miami’s Building Department, and stated that it was performing close to $10 million in combined renovations to the buildings and paid $136,332.92 in permit fees to the city.

Building officials put a hold on the permit this month out of concern that the stated value of the project was incorrect. Vicari said the job was actually worth $22.4 million and paid an additional $169,599.40 in fees. But the Herald reported Vicari successfully applied for up to $38 million in tax credits from the Florida Housing Finance Corp., which lists the initial value of the construction contracts at $32.6 million in November credit underwriting reports.

Redwood Housing Partners, led by Ryan Fuson, responded in an email to the Herald saying: “At this time we do not believe it is appropriate for us to discuss the topics you mention below as we understand there is an ongoing dispute between the general contractor and a subcontractor.”

This is the latest string in the county’s legal troubles involving affordable housing and workforce housing. South Florida’s biggest developer Related Group‘s affordable housing arm, Related Urban, is being investigated by the U.S. Attorney’s Office as part of an expanding probe into South Florida’s affordable housing industry. [The Miami Herald] Amanda Rabines 


Related Articles

arrow_forward_ios
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
Rent-to-own startup Divvy Homes expands to South Florida

Rent-to-own startup Divvy Homes expands to South Florida

Rent-to-own startup Divvy Homes expands to South Florida
Ben Schachter, Sean Black and Mike Pappas (Signature, Getty, Keyes)

Knock expands home lending program into South Florida 

Knock expands home lending program into South Florida 
Oprah Winfrey and (inset) Lawrence Stroll over the unit (Getty)

You get a condo! Billionaire Lawrence Stroll sells Oprah’s former Fisher Island penthouse

You get a condo! Billionaire Lawrence Stroll sells Oprah’s former Fisher Island penthouse
1396 Northwest 36th Street with Integra's Paulo Tavares de Melo and EHDOC's Melanie Ribeiro (Photos via Getty; LinkedIn)

Integra, partner move forward with $58M senior housing project in Allapattah

Integra, partner move forward with $58M senior housing project in Allapattah
1930 Northwest 23rd Street with (from left) Shane Neman, Richard Kilstock and David Aaron (Getty, Arkadia, Neman Ventures)

Arkadia buys cold storage warehouse in Allapattah for $5M

Arkadia buys cold storage warehouse in Allapattah for $5M
arrow_forward_ios

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

Loading...