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A Federal Court Magistrate appointed us Receiver Of
Rents for this project in Norwalk, Connecticut after
the Housing Authority abated payments on the Section
8 contract. The general partner/manager had, among
other things, neglected both the property and the
residents. Basic maintenance requirements were not
met, thereby causing the property to fall below minimum
housing quality standards; tenant safety needs and
work order requests were not satisfied; and the property
was allowed to become infested with drug dealers and
other criminal activities. We were called upon by
both the Housing Authority and several limited partners
to restore the property and oust the general partner.
At the receivership appointment hearing we reached
agreement with HUD and the Housing Authority on the
necessary steps to achieve proper operations; the
Housing Authority resumed Section 8 payments immediately.
We worked closely with the tenants, HUD, the Housing
Authority, and the Norwalk Police to reestablish the
Monterey Village community. One year later the general
partner was replaced by a Vesta affiliate and the
project's mortgage was refinanced through a $5.2 million
tax exempt bond issue, which also provided the necessary
funds to accomplish more than $1 million of renovations.
Within 24 months of the appointment, occupancy went
from below 75% to 98% with a waiting list; criminal
activity has all but been eliminated; and both the
physical and fiscal conditions were put in proper
order. Since becoming general partner, we have obtained
three HUD grants, totaling $750,000, for security
improvements and staffing.

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