Housing Groups and Pizzigalli Craft Deal to Preserve Low-Income Housing | News | Seven Days | Vermont's Independent Voice

Seven Days needs your financial support!

Housing Groups and Pizzigalli Craft Deal to Preserve Low-Income Housing 

On the day they were supposed to receive eviction notices, the 44 residents of Wharf Lane were handed much better news: A deal has been struck between two nonprofit housing groups and the building's owner that will keep their apartments as subsidized, affordable housing.

"We announced to the residents that we had a deal, in principle, on both Wharf Lane and Bobbin Mill and expected to sign purchase and sale contracts early next week," Paul Dettman, executive director of Burlington Housing Authority told Seven Days.

BHA is working with the Vermont Housing Finance Agency to purchase Wharf Lane and the nearby Bobbin Mill apartments, which is home to more than 100 people — many of them low-income families.

For almost a year, Wharf Lane's tenants — some of Burlington's poorest public-housing residents — have been caught in a battle between their landlord and two housing nonprofits. Negotiations stalled in late December, and it looked as if the residents would be evicted in April. Their leases expired March 31.

As Seven Days noted last year, Pizzagalli Properties put Wharf Lane on the market. It’s one of thousands of affordable housing complexes built 30 years ago using taxpayer-subsidized mortgages and rental subsidies provided by the U.S. Department of Housing and Urban Development. The deal was: At the end of the mortgage, the developers would have the option to sell the low-income housing to the highest bidder.

A recent private appraisal reportedly estimates the building’s market value at $4.8 million, more than double the city’s 2006 assessment of $1.6 million. The lower figure reflects the building’s current use: home to 37 units of affordable housing. The higher number measures potential revenues based on converting those into high-rent units for college students.

Dettman did not disclose the purchase price for either property.

"We will be executing separate purchase and sale agreements," said Dettmen. "However, closing on Bobbin Mill will take place at a later date, no later than December 2012."

One or more images has been removed from this article. For further information, contact web@sevendaysvt.com.
Got something to say? Send a letter to the editor and we'll publish your feedback in print!

Tags: ,

More By This Author

About The Author

Shay Totten

Shay Totten

Bio:
Shay Totten wrote "Fair Game," a weekly political column, from April 2008-December 2011.

Comments


Comments are closed.

Since 2014, Seven Days has allowed readers to comment on all stories posted on our website. While we’ve appreciated the suggestions and insights, the time has come to shut them down — at least temporarily.

While we champion free speech, facts are a matter of life and death during the coronavirus pandemic, and right now Seven Days is prioritizing the production of responsible journalism over moderating online debates between readers.

To criticize, correct or praise our reporting, please send us a letter to the editor. Or send us a tip. We’ll check it out and report the results.

Online comments may return when we have better tech tools for managing them. Thanks for reading.

Keep up with us Seven Days a week!

Sign up for our fun and informative
newsletters:

All content © 2021 Da Capo Publishing, Inc. 255 So. Champlain St. Ste. 5, Burlington, VT 05401
Advertising Policy  |  Contact Us
Website powered by Foundation