GHA set to sell homes
GLOVERSVILLE — The Gloversville Housing Authority has agreed to sell two properties that were purchased under a limited liability corporation founded under the agency’s umbrella.
During the Oct. 17 meeting, the GHA board of commissioners agreed to sell 113 Kingsboro Ave. and 11 Academy Place.
Homestead Management bought the single family home at 113 Kingsboro Avenue for $41,000 in July 2016 from Fulton County.
The two-family property at 11 Academy Place was purchased by Homestead during the same Fulton County tax auction in July 2016 for $25,000.
Homestead additionally owns the single family property at 63 E. Eighth Ave. That property is currently listed as for sale. That property was also bought at the July 2016 Fulton County Tax Auction.
The GHA was set to sell the East Eighth Avenue property earlier this year, but that sale fell through after the buyer couldn’t secure financing according to GHA attorney Benjamin McGuire.
GHA Interim Maintenance Director Frank DeSantis said the GHA was renting the Kingsboro Avenue property out for around $900 a month.
Resident Commissioner Jason Sweeney asked if Homestead Management could be dissolved following the sale of its three holdings.
McGuire said the Homestead Management LLC would be needed if the GHA decided to go forward with a conversion from a section 9 public housing structure to a section 8 public housing structure.
GHA has been looking at making the switch via a process called Rental Assistance Demonstration, or RAD.
The U.S. Department of Housing and Urban Development is encouraging public housing agencies nationwide to switch to section 8. Under Section 8, the GHA would be able to leverage both public and private debt and equity into reinvestments.
The decision to switch has been put on hold by the GHA Board of Commissioners for the time being.
McGuire said it is his understanding that Homestead Management LLC was created when the RAD conversion was initially proposed.
“It was created to have some protection and liability for the housing authority,” McGuire said.
Executive Director Daniel Towne said Homestead is the managing agent for the Kingsboro Apartments, formerly the Kingsboro Hotel, on South Main Street.
McGuire said he didn’t see a reason to dissolve the LLC at this point, since the GHA could still use it to buy and fix up other properties to offer affordable housing in the city.
“The goal is to have more affordable housing in the city and that is something that the Housing Authority could decide to do in the future if they find properties. They could use this as the purchaser,” McGuire said.