‘The disrepair is astonishing’: PHA must clear out Brith Sholom to complete renovations

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Residents at Brith Sholom House will have to relocate so the Philadelphia Housing Authority can completely overhaul the crumbling apartment tower, officials announced Tuesday.

“The conditions are worse than we anticipated,” said PHA president Kelvin Jeremiah. “It’s horrifying that residents were made to live under the conditions that these residents were living under.”

The decision comes nearly three months after the authority purchased the 12-story building in Wynnefield Heights for $24 million. A judge approved the sale in late August after years of turmoil at the property, once home to hundreds of seniors, including many living on fixed incomes.

About 111 residents remain in the 360-unit building. PHA had hoped those tenants could remain at Brith Sholom during the renovations, but the authority’s assessment of the building’s condition proved otherwise.

“The disrepair is astonishing,” said Jeremiah. “We’re essentially looking at a gut rehab.”

The building’s sewage, HVAC and electrical systems all need to be replaced. The property also needs a brand new roof.

The work is expected to take at least 18 months and cost more than $100 million — more than double the cost PHA had anticipated. The authority has already spent about $1 million to address rodent and bed bug infestations and other quality-of-life issues.

PHA notified residents on Tuesday that they will need to relocate. Jeremiah said all of the building’s remaining tenants qualify for public housing and related subsidies, including those offered through the Housing Choice Voucher Program.

PHA hopes to relocate everyone during the first 90 days of the new year. The goal is to find new housing — public and private — in Wynnefield Heights to avoid additional disruption, said Jeremiah.

The authority will cover all relocation expenses, including moving and storage costs and any fees associated with reconnecting cable and internet service.

Tenants will not pay any rent between now and when they are relocated. And they will have the right to return to Brith Sholom after the building is renovated. Construction is expected to start in early spring, said Jeremiah.

How did we get here?

PHA plans to use Low-Income Housing Tax Credits (LIHTC) to complete the renovations. Mayor Cherelle Parker’s administration has committed $8 million to the authority for repairs at the property. The project aligns with the administration’s goal of creating or preserving 30,000 units of housing during Parker’s first term.

In late August, Common Pleas Court Judge Anne Marie Coyle approved a motion to sell Brith Sholom to PHA. The ruling came days before the Philadelphia Gas Works was scheduled to shut off service to the building after years of unpaid bills.

The sale required Coyle’s approval because the building was in receivership, a move made about a year ago with hopes of bringing the dilapidated building up to code. While some code violations were cured, the court-appointed receiver could not complete the work due to a lack of funding, according to testimony.

Under the sale agreement with mortgage holder New World Commercial Credit, corporate owner Brith Sholom Winit LP did not receive any money from the sale.

Proceeds from the sale were used to cover settlement agreements with a half-dozen lienholders, including PECO Energy Company. Under the agreements, these creditors received some but not all of what was owed to them, according to court documents.

PHA separately negotiated settlements with the Philadelphia Water Department and PGW, the latter of which was owed more than $500,000.

Stockton Real Estate Advisors, the receiver, got a commission as a part of the sale agreement.

This is a developing story and will be updated.