Greater Harrisburg's Community Magazine

Unfair Housing: Affordable, decent housing comes at great cost to Governor’s Square residents caught in a maintenance, ownership struggle

Britni Lowe walks into her condemned apartment in Governor’s Square. Photo by Dani Fresh.

Three-year-old Stevie bounces around his great grandmother’s small apartment. A kid’s show plays on the television in the living room, but he has no attention for it. Instead, Stevie reaches for the light switch, his small finger flicking it off-on-off-on.

“Stop it, Stevie!” his great grandmother scolds, her phone pressed to her ear. She continues her conversation.

Stevie wanders the apartment and climbs onto an armchair.

Britni Lowe, Stevie’s mom, is unfazed by the distractions. She calmly attends to her son while recounting the recent housing trouble she’s faced.

For six years, Lowe has lived in her one-bedroom apartment on Forrest Street in Harrisburg, only a quick walk from her grandmother Faith’s apartment.

Her apartment is one of over 200 rental units within Governor’s Square Apartments, which includes affordable multi- and single-family properties in the Camp Curtin neighborhood.

While Lowe was happy to have a place of her own, problems with her unit began early on, she said. Over the years, she’s had issues with rodents, leaky windows and cracking along the walls. She’s found mold in the vents, holes in the ceiling caused by nosy squirrels and bricks coming loose on the exterior of the building. Lowe has done whatever maintenance she could on her own, setting out mousetraps and spraying for bugs. But, on the whole, she explained, most of her maintenance requests to the property management went unanswered.

“You become unhappy when your home doesn’t feel happy,” she said. “It makes you feel like you don’t matter here. This has taken a toll on my mental health.”

The trouble with her home reached a peak in August when Lowe came home to a “Condemned” notice affixed to her door. It stated that her building, which includes her apartment and one other, was “found to be unsafe due to damage, decay, dilapidation.” The city’s evaluation form also said that it was “a blight to the neighborhood, a hazard to public health and safety.” She had 60 days to leave the property, it stated.

“I’m in there with my baby,” Lowe said. “I felt hopeless.”

Later that month, Lowe attended a town hall event for residents of Governor’s Square, put on by the Camp Curtin Neighborhoods United group. She stood in the back, Stevie in tow, and voiced her concerns over her living conditions with a room full of other residents with stories like hers.

One of many piles of debris found outside a condemned apartment. Photo by Dani Fresh.

The Meetings

On a Wednesday and subsequent Thursday night, residents of Governor’s Square Apartments filed into the lobby of the PA Fair Housing Council on the corner of N. 5th and Maclay streets. Camp Curtin Neighborhoods United President Laura Harding opened the meeting from a podium, stressing the importance of a solutions-based discussion.

Not only had the meeting drawn the attention of tenants, but of several local officials who joined, including Harrisburg Mayor Wanda Williams, City Council President Danielle Bowers and other members of council, state Rep. Patty Kim (D-103) and Magisterial District Judge Sonya McKnight. Representatives from the Pennsylvania Housing Finance Agency (PHFA) and Dauphin County attended, as well.

Comments from residents moved from specific complaints about their apartments to questions about how to withhold rent until issues are addressed. In Lowe’s case, she had urgent questions about where she was supposed to go now. With a shaky, yet firm, voice, she made her case.

However, there was a general air of confusion at the meetings. How did things get to this point? Whose responsibility was it to fix these problems? What’s going to happen next? Questions like these went unanswered, or at least, were left unclear. Even many of the officials in the room were uncertain of the details.

But what wasn’t foggy was that code citations on the properties were stacking up against Governor’s Square. According to Anne Montgomery, director of Harrisburg’s Bureau of Codes, the city has been to court with Governor’s Square “many times” over code citations that weren’t brought into compliance. At the time, Williams said that there were over 100 code citations for the properties. As of late September, the city also had condemned seven Governor’s Square properties, meaning they are structurally unsound, and placarded another 17, which means they are deemed non-habitable.

According to Williams, she’s been hearing of the issues at Governor’s Square for around two years, though some residents say their problems started even earlier.

Early this past summer, Rhonda Mays of the Fair Housing Council of the Capital Region started noticing an uptick in people requesting assistance with issues at Governor’s Square.

“They had a terrible problem with their units being habitable,” she said. “It wasn’t just little things. It was big things.”

When the organization starts seeing a pattern like this, they keep a file to document the complaints. From there, they try to advise tenants on things that could help, such as putting their complaints in writing and making sure property management gets them. Withholding a portion of their rent is another option—although an unpopular one—for tenants. But according to Mays, there’s not a lot that can be done.

“There’s not a whole lot that we can tell the tenants,” Mays admitted. “It’s a matter of waiting out the process.”

There were all those officials and agencies in the Fair Housing lobby during the tenant meetings, but there wasn’t much they could do.

The entity that certainly could do something—the owner—wasn’t there.

Photo by Dani Fresh

Intervention

In the late 1990s, the U.S. Department of Housing and Urban Development (HUD) foreclosed on a large swath of apartments that it held mortgages on, formerly the Maclay Street Apartments. Instead of auctioning the properties off, they were transferred to the city in 2003, and the Harrisburg Redevelopment Authority (HRA) took the title.

Harrisburg then issued a request for proposals and selected Maryland-based Landex Development to obtain and renovate the 222 rental units known as the “Residences.” The company also would later construct and obtain dozens more properties, call the “Towns.” Landex formed Uptown Partners LP to be the managing limited partner.

To help offset the cost of building affordable housing, HUD awarded the project an “Upfront” federal grant of about $10 million for renovations. Additional funding was obtained through PHFA low income housing tax credits, among other contributions. Landex completed the project in 2012.

Along with the funds came restrictive covenants, requiring the property to remain affordable for 30 years, until 2034.

“They were excited to work with us and built a high-quality project,” said Bryan Davis, director of the Harrisburg Redevelopment Authority. “It was such a huge, positive impact.”

But, these days, Davis was feeling differently about how things were going at Governor’s Square, saying that HRA is “very disappointed in the existing owner.”

In a statement, Uptown Partners acknowledged the issue, saying that they “understand and appreciate the concerns about maintenance issues and the need for capital improvements at the property.”

“We are prioritizing the most important needs and working hard to resolve them as soon as possible,” the company stated.

However, in its statement, the company added that the cost of services, such as water, trash pickup and maintenance, has far outweighed the revenue received in rent. The company claimed that, due to the pandemic, residents “suffered severe financial hardship” and therefore still owe a significant amount of back rent. The statement also noted unexpected costs from chronic illegal trash dumping on the property, among other issues.

“This property is more than 50 years old and was last renovated 15 years ago,” Uptown Partners said in its statement. “We recognize that a significant intervention and a sizable investment are needed to address the residents’ needs.”

Also in the statement, the company noted trying to work with the city regarding the sale of the property. According to Davis, during the pandemic, Uptown Partners put Governor’s Square up for sale, but received no interest from buyers.

Stephen Schuback. Photo by Dani Fresh.

However, within the past year, one interested party has come forth.

Stephen Schuback is a Harrisburg native who has had his eye on Governor’s Square, and he will tell you frankly that he saw it as a good business investment. It was the potential for money-making that brought him back to the city from his home in South Carolina. But as he began interacting with residents, he knew he wanted to help them, he said.

“You’re all important to me,” Schuback assured residents at the first of the two Governor’s Square tenant meetings. “I have the experience to pull this off. Nobody’s going to want to leave if I take over.”

Uptown Partners said that they have an agreement to sell the property to a private group, but would not confirm that Schuback is that “private group.” However, Schuback told TheBurg multiple times that he has a contract with the owner to take over the 222 rental units. Additionally, Davis of the Harrisburg Redevelopment Authority confirmed that they have not had any other serious interest in the property.

Schuback’s resume notes his experience in affordable and market-rate housing development, including a renovation project for an affordable housing development in Akron, Ohio. That one was similar to what’s happening at Governor’s Square, he said.

But returning to Harrisburg holds a different meaning for him.

While his younger years in the city were fraught with drug dealing and other criminal behavior, landing him prison time, Schuback said that, with this project, he hopes to change the way his name is remembered.

“I’d like people to remember me for something more than what I did as a kid,” he said. “I want them to know my family cared about the community.”

 

When Someone Cares

Debbie M. Taylor, is another tenant who, like Britni Lowe, has struggled with maintenance issues for several years.

Taylor, a 67-year-old Harrisburg native, is known as “Gigi” or “the gorgeous granny” around her Governor’s Square neighborhood. She’s friends with her neighbors, especially the ladies in her apartment building, which includes another Debbie Taylor who lives above her. She makes brownies and finger Jello for the neighborhood kids and is friendly with the maintenance men who walk by, calling one “Papa Smurf” for his white beard and asking another if he likes her red-painted toenails.

Taylor loves the people she lives near, but, when it comes to the condition of her apartment, she said that the past two years have “sucked.”

Her screen window was broken for almost a year, and the hallway in her building was never clean. She and the other ladies would regularly scrub it themselves. The grass and landscaping weren’t maintained, and the playground across the parking lot used to look like a jungle, she said.

But recently, things have started to improve, she explained.

Schuback, while still pursuing purchasing Governor’s Square, has, in the meantime, taken to fixing up residents’ units. He has a contract with the owners, he said, to repair and answer maintenance requests on the property. Many residents who had long-unaddressed maintenance issues started to see change.

Linda Manigualt gestures up to her gutters that have been cleaned and repaired recently. Photo by Dani Fresh.

While Uptown Partners wouldn’t confirm that they contracted Schuback to do the work, they said in a statement that, “a number of resources have been engaged to make repairs at the property. We’re pleased with the progress that’s being made. The health and safety of the residents are our top priorities.”

“Since Steve’s been here, everything’s getting better,” Taylor said. “He cares. It’s a different feeling when someone cares.”

According to Schuback, he’s doing the work for free, while the owners pay for supplies.

He has also helped Lowe, who soon will move into another Governor’s Square apartment and out of the condemned building, he said. She’s excited that Stevie will have his own room in the new place.

“I’ll be happy to get us out of here,” Lowe said.

Schuback is confident that the work he is doing will show the city that he is capable of and serious about taking over and renovating Governor’s Square.

While Schuback said that he already has an agreement to purchase Governor’s Square from Uptown Partners, there are approvals he must get to actually obtain the properties.

Because of the HUD Upfront grant that was given to the owners to develop the property back in the earlier 2000s, Uptown Partners and Schuback must get approval of the sale from HUD.

According to the HRA’s Davis, this grant functions more like a loan, which eventually will need to be paid back or forgiven by HUD. If someone wants to purchase Governor’s Square, however, that grant/loan needs HUD approval to be transferred to a new owner. In order to request that transfer, Schuback was required to submit a financial, construction and management plan, among other details, about his proposal for Governor’s Square. He sent that plan in August to HRA, which functions as a conduit for the loan between HUD and Governor’s Square.

If approved by HUD, Schuback would take on $8.8 million in debt from the HUD grant for the majority of Governor’s Square properties—the 222 units.

Davis said that Schuback’s plan is still under review.

Although Harrisburg officials have repeatedly said that the city doesn’t have authority over what happens with the property, the administration has had things to say about the project.

According to Harrisburg Communications Director Matt Maisel, “[Schuback] is nowhere near where he needs to be financially to acquire the property.”

Schuback has proposed a $12 million renovation, estimating that each unit will require about a $56,000 upgrade. However, that budget is a little under half of what the city and HRA claim is needed. A building assessment report ordered by the Harrisburg Housing Authority in 2021 found that $22.5 million was needed to renovate Governor’s Square.

“Whether or not he truly wants to do good by the residents there is entirely separate of whether he can,” Maisel added.

He said that Schuback would not be acquiring the property any time in the near future.

On the other hand, Schuback feels confident in his estimated renovation costs.

“I’m good at what I do; it shows in my work,” he said. “I didn’t think I was going to get this resistance. At the end of the day, I’m going to get what I want.”

HUD Regional Public Affairs representative Sean Callahan said that the department has not received a package with information about a proposed sale from Uptown Partners, something that is required for HUD review. To be approved for the acquisition, a new owner would need to show that they have the capacity to manage the property, Callahan said.

“It does not appear the prospective owner has demonstrated capacity,” he said.

In October, Schuback received notice from the city that he was missing building permits for work he was doing on properties at Governor’s Square. He refuted that he needed them for the repairs he was doing.

“I’m used to getting what I want,” Schuback said. “But I’m starting to lose my patience. At some point, I’ve got to realize that this is futile.”

Schuback said that he has tried to meet with city officials to discuss issues like these, to no avail. Maisel said the city has reached out to him to meet, also unsuccessfully.

Linda Manigault stands out front of her home. Photo by Dani Fresh.

Waiting Game

Back over on Forrest Street, Governor’s Square resident Linda Manigault has accrued a list of maintenance requests sitting largely untouched for two years. Trash piled up behind her apartment, duct tape covered the gaps in her back door frame, area rugs hid the stained, aging carpet and, most recently, a mouse in her kitchen had her running for higher ground upstairs.

She’s thought about moving, but the low rent price has kept her around for years. There’s no way she could find something this cheap, she said.

Manigault’s dream is to move to Georgia. She’s been saving her money. But she knows the housing market isn’t in her favor right now—especially not for affordable housing.

“If I have to wait, at least I want to be comfortable here,” she said.

That’s the unfortunate reality that many low-income residents are living in. Affordable housing is in short supply, and demand for it is high. It’s a reality that’s left residents like Manigault stuck, without options.

“It’s not good,” said Leah Eppinger, executive director of Dauphin County’s housing authority. “There is a large shortage of units and a large population in need.”

The county’s housing authority doesn’t do work in Harrisburg city, which falls to the Harrisburg Housing Authority, which didn’t return calls for comment. But Eppinger’s outlook on the state of the market applies widely, as housing shortages are a nationwide problem.

According to Eppinger, around 3,000 households are on their waiting list for public housing, and their Section 8 housing choice voucher program has been closed to new applicants since 2009 while they’ve worked through that list.

For a family trying to find affordable housing right now, “it’s probably impossible,” she said.

Like many residents, Britni Lowe has thought about moving out of Governor’s Square. She has searched online for other apartments, but has struggled to find affordable options. When she has, they’re often owned by out-of-town landlords, which makes her nervous. Like others who have come to the same conclusions, Lowe has stayed put.

The sentiment around Governor’s Square has improved as Schuback has made upgrades to apartments, cut the grass and cleaned up illegal dumping hotspots, giving residents a sense of hope. But as discussions continue in the offices of city and state officials, the question of what happens next remains.

In the meantime, Governor’s Square families are left stuck in the middle, waiting on an answer.

It’s mid-October, and it’s been over 60 days since the condemnation notice. But Governor’s Square still hasn’t moved Lowe, although Schuback has made some repairs to her building and said he plans to move her to the new apartment soon.

Lowe’s hope is tempered with realism, because she knows that things could change on a whim.

“I’m gonna roll with whatever comes my way because I don’t have no other choice,” Lowe said. “Life is unpredictable.”

 

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