by Hannah McCartney
Threat of lawsuit next phase in Anna Louise Inn dispute
Financial giant and Lytle Park bully Western & Southern has accused city officials and other Anna Louise Inn advocates of repeatedly deceiving the Department of Housing and Urban Development in order to obtain federal funds for the long-awaited, $13 million renovations to the Inn.
Those renovations are the same ones that have been blocked over and over by a series of legal entanglements initiated by Western & Southern, which tried to purchase the Inn back in 2009 for $1.8 million, refusing to buffer the Inn's $3 million price tag. In 2011, the Hamilton County Auditor valued the plot at $4 million.
Now, the corporate giant, which owns a number of other plots of land in Lytle Park, wants to buy the Inn and convert it into an upscale hotel.
Western & Southern’s lawyer, Glenn Whitaker, sent a letter obtained by CityBeat dated March 19 to City Solicitor John Curp accusing city officials of knowingly violating the federal Fair Housing Act by allowing the owner of the Inn, Cincinnati Union Bethel (CUB), to pursue federal funding for renovations while providing services to exclusively women in need, which the letter alleges would “discriminate on the basis of gender” and “expose the City to liability under both the federal False Claims Act and the FHA.”
“We share this with you because — no matter where one stands on whether ALI’s renovations comply with Cincinnati Zoning Code — it is in the public interest for the City to avoid a lawsuit that could lead to a significant payout in today’s budget environment,” reads the letter.
Of course, that lawsuit is one that would be entirely fabricated and launched by Western & Southern, on top of years worth of zoning violation allegations that, so far, have failed to gather much merit.Some women-only shelters are deemed permissible due to safety issues, but in the letter, Whitaker alleges that the renovation plans expose ALI to discrimination liability by, in theory, making the safety issue moot by providing clear, separated spaces for men and women. The renovation plans include converting what are now dormitory-style units with shared bathrooms into private residences with private bathrooms and kitchens, according to the letter. Curp, who received the letter, says the city’s relationship with HUD is one that hinges on constant communication, and though Western & Southern's allegations were unexpected, they'll be taken seriously. “We work with them closely, we have a great relationship with HUD. They were the first organization we contacted when we got this letter, ... so they understood the nature of the allegations and because they’re one of our development partners. We have lots of development partners in the city, frankly, including Western & Southern. ... We're disappointed that the city has been pulled into what is otherwise a third-party dispute."
The letter also accuses a number of community members, including 3CDC, Vice Mayor Roxanne Qualls, the Model Group, the Greater Cincinnati Homeless Coalition and the YMCA of conspiring to move low-income residents from the Metropole to the Anna Louise Inn in order to ease litigation with the Homeless Coalition and make way for the new, upscale 21c Museum Hotel. John Barrett, Western & Southern’s CEO, is also on the board of 3CDC, which adds an extra element of mystery to the lodged accusations; at best, it seems extreme they'd be willing to accuse ally 3CDC of wrongdoing or conspiracy for the sake of a discrimination lawsuit against a nonprofit social services agency whose stated goal for more than 100 years has been to provide a haven for women in need. Ideally, explains Curp, HUD will respond equipped with some sort of past precedent that would absolve the city and the Inn of alleged discrimination and make the lawsuit irrelevant. "I think a lawsuit would be very much premature. ... Like I said, our first step is to talk to HUD and to make sure that between the both of us, we don’t see any discrimination or compliance issues. If there’s any chance of that ... after our review and a review by HUD, we will fix it to bring it into compliance," he says. "As I sit here today, I can't imagine this situation hasn't been dealt with in the past. I'd be shocked if HUD hasn't dealt with this in another community and come up with a set of guidelines for us to follow."
by German Lopez
More than 700 units being sold to New York company
Vice Mayor Roxanne Qualls is asking the U.S. Department of
Housing and Urban Development (HUD) to stop the sale of 748 housing
units to a New York company — potentially preventing a repeat of a
similar sale back to 2007 that led to dropping property values in the area.
In a press release Tuesday, Qualls argued that locals should be given the
opportunity to purchase the project-based Section 8 housing in Walnut
Hills, Avondale and Millvale. Currently, HUD is bypassing local
communities with plans to sell the housing to a corporation controlled
by the Puretz family of Brooklyn, N.Y.
“Cincinnati’s residents are still recovering from the
massive disinvestment that was allowed to occur with an eerily similar
situation in 2010,” Qualls said in the release, referring to a
similar sale that culminated in a huge drop in property values between
2007 and 2010.
In 2007, HUD sold 618 subsidized housing units to NY Group
OH 1 LLC, a company with no previous housing experience in Cincinnati,
according to Qualls’ release. As the 2008 financial crisis and Great
Recession pulled down the global economy, property values dropped all
around the nation, but things went particularly south in NY Group’s
Cincinnati buildings. The owner eventually defaulted on the housing
units, and Fannie Mae foreclosed in 2010. Property values went from $21.5
million to $7 million between 2007 and 2010, when the units were sold in a sheriff’s sale. In that time period, the
buildings blighted, with residents complaining about
deteriorating structures, broken lighting, bed bugs, cockroaches and mold. In one case, an
apartment’s restroom ceiling reportedly collapsed.
Qualls is focused on preventing more blighted buildings:
“Preservation of the housing in good condition is vital to the
improvement of our neighborhoods. Our neighborhoods cannot afford to
have more blight brought on by an absentee owner. Because these
properties are supported by government funding, it is vitally important
that HUD get public input from the City of Cincinnati and Avondale,
Walnut Hills and Millvale residents and stakeholders about this proposed
new transfer of HUD funded properties before making any further
Qualls has invited the local HUD field office director to
the Feb. 26 Livable Communities Committee meeting to discuss the sale.
She has also written to other HUD officials, U.S. Sen. Sherrod Brown, U.S. Sen.
Rob Portman and Rep. Steve Chabot to prevent the sale.