Governor’s Square apartments
A court-appointed receiver soon will be able to begin work stabilizing a troubled Harrisburg housing development, following a key approval by City Council.
On Tuesday, council unanimously approved a resolution allowing the city to enter into a professional services agreement with Harrisburg-based Midtown Asset Consulting, which will work to bring the beleaguered affordable housing community back into a financially and physically stable position.
“Thank you for your confidence, council,” said Justin Heinly, principal of Midtown Asset Consulting, following the vote. “I appreciate it.”
In late August, a Dauphin County court judge appointed Heinly receiver for the 222-unit complex at N. 5th and Maclay streets.
Uptown Partners, the owner of Governor’s Square, filed for bankruptcy in May 2023. For years, the city issued code citations and condemned properties, and residents complained of quality-of-life issues in units. City officials have previously shared that over half of the units have become vacant and the area has dealt with crime and safety issues.
After unsuccessful attempts to sell the property, and claiming not to have enough money to maintain it, Uptown Partners filed a motion to have a receiver appointed. Heinly said that city Solicitor Neil Grover approached him with the request to take on the project, and the city brought his name forward to the county judge. As receiver, Heinly will step in to control and oversee improvements at the property, while Uptown Partners remains the legal owner.
“It is an extraordinary thing for the city to ask for a receiver,” Grover told council on Tuesday. “But it became Mayor [Wanda] Williams’ determination, ‘What else can we do? These people need help.’”
In March, council approved allocating $250,000 as seed money to help the receiver get started with work at Governor’s Square. According to the resolution, the city will pay the receiver portions of that money monthly and will expect to be reimbursed as money becomes available through rent revenue.
In a council meeting last week, Heinly said that his plan for Governor’s Square would span 10 years and three phases. The first phase would include securing the property and spending six months evaluating the need and creating a restoration budget and plan. In phase two, the receiver would begin implementing the plan and working to get the property to financial stability, which could take two years. The final phase would focus on seeking grants and funding to make capital improvements.
Heinly’s first priority—visiting each occupied unit, making sure residents are safe, and relocating any tenants whose property is not livable.
“Someone needs to get in there and fully assess the situation,” Grover said on Tuesday. “No one who’s an outside entity has assessed it. Our codes people have been locked out.”
The ultimate goal, Grover said, is a sale to a qualified entity, after the property has been fully assessed and stabilized.
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