Photo by Dani Fresh
The fate of a blighted and bankrupt Harrisburg low-income housing development will remain in limbo for at least another month.
Uptown Partners, owner of the Residences at Governor’s Square, will weigh offers for the sale of its properties through mid-January, with a final bankruptcy court decision slated for the end of next month.
Originally, a final hearing in U.S. Bankruptcy Court for the Middle District of Pennsylvania was scheduled to take place on Tuesday, Dec. 19. However, Chief Judge Henry Van Eck has continued the hearing until Jan. 30 at 10:30 a.m.
Governor’s Square filed for Chapter 7 bankruptcy in May, converting to Chapter 11 in August in order to have more time to seek a buyer for the over 200 units.
For the past several years, the apartment complex has received hundreds of city code citations and condemnations, and residents have raised concerns about quality of life issues and health hazards.
According to court documents filed by Uptown Partners, Governor’s Square has received five purchase offers, with Hilco Real Estate Sales handling the sale.
The filing states that each bid contains different terms, but that all offers include the assumption of a portion or all of an existing loan from the U.S Department of Housing and Urban Development (HUD) that was given to Governor’s Square by the Harrisburg Redevelopment Authority when they renovated the properties around a decade ago. The bidders are not named.
HUD must approve the loan assumption, which Uptown Partners believes will take several weeks. Uptown Partners stated in the filing that it would be more efficient to hold the auction with the five bidders after HUD reviews them.
The judge has ordered a continuance, pushing back the auction, originally planned for Dec. 1, until Jan. 17. The report of the auction will be filed by Jan. 19. Objections to the sale must be filed by Jan. 23, before the final hearing on Jan. 30.
Additionally, Uptown Partners has filed a motion to sell four of the Governor’s Square units to Homeland Center in Harrisburg. If approved in court, the center, located on N. 6th Street would obtain four dilapidated units near its building on the 500-block of Peffer Street.
According to the filing, Homeland was given a right of first refusal to purchase the properties for $1 as part of a tri-party agreement formed with Uptown Partners and the Redevelopment Authority in 2006.
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