NEWARK, NJ - The developer of 56 units of public housing in Newark that have sat vacant for more than two years filed suit against the city's housing authority and the federal agency that oversees it. Tony Gomes Construction of Newark accused the authority of failing to take possession of the development on Elizabeth Avenue even though he believes it has been "substantially complete" for more than two years.
The suit further alleges that the U.S. Department of Housing and Urban Development, in its role as the authority's overseer, failed to step in and "make a decision" about whether the project should be occupied. "They had finished units two years ago," said Gomes. "Nobody cares about the millions of dollars I spend or the residents."
The housing authority has said the units are deficiently built, cannot pass an inspection for a certificate of occupancy and has declined to take possession of them until the problems are repaired. A Star-Ledger investigation of the $8.6 million project published Sunday found evidence of poor construction as well as lax oversight and bureaucratic bungling from the authority, HUD and the city of Newark.
Gomes started the project without permits at the authority's urging to avoid losing $6 million in federal funds and was allowed to continue building despite numerous warnings of serious problems from the authority's construction manager. Despite labeling the Newark Housing Authority as a troubled authority in 2005, HUD conducted only one site review, according to HUD records. The city also delayed Gomes' permits because of bureaucratic confusion and misplaced records.
Gomes was awarded the project although another firm's bid was more highly rated at a time when state senator and then deputy mayor Ronald L. Rice was on his payroll. Rice quit in 2005. Alan Gelfand, a spokesman for HUD's Newark office, and Tory Gunsolley, the authority's chief administrative officer, both declined comment citing the litigation. U.S. District Judge Dickinson Debevoise ordered the construction of 1,777 units as part of a settlement of a 1989 lawsuit over the replacement of dangerous high-rise housing that was demolished.
Debevoise dismissed the suit after 19 years in January because only 186 units remained to be built. He ordered that Gomes' project, which represents 56 of those units, be completed and occupied by September. That now appears unlikely.
An independent architectural firm hired by the authority has found numerous problems with the project, including cracked trusses and gaps in the roof that can lead to water infiltration and the eventual growth of dangerous mold, improperly installed retaining and fire prevention walls. The soundness of the foundations has also been called into question.
The authority wants to conduct invasive tests to determine what needs to be repaired. Gomes has called the authority's report a "fabrication" and said the units are ready to be occupied. A third of the vacant units have been vandalized with thieves ripping copper from the walls, flooding the units and causing mold damage.
Newark will lose 1,100 units of affordable housing over the next few years with the demolition of one high-rise and the planned closing of two low-rise housing projects. "That they have 186 units left to build almost 20 years later is something I find frustrating, aggravating and beyond disappointing," said David Weiner, secretary of the Newark Coalition for Low Income Housing, which filed the original lawsuit.
Gomes, in the lawsuit, charges that he is facing "financial ruin" as a result of the refusal of HUD and the authority to take possession of the units. He is asking for HUD to step in and take control of the project as well as compensation for the units and damages.
Source: NJ.com