‘You gotta come together’: Judge approves selling West Philly’s Brith Sholom House to PHA

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Tenants at Brith Sholom House are celebrating after a judge granted a motion to sell the troubled apartment building to the Philadelphia Housing Authority.

Monday’s ruling effectively ends years of turmoil at the property, including the impending threat of displacement over unpaid utility bills. The decision also ensures the building will remain affordable amid an ongoing affordable housing crisis.

“The stress has been lifted,” said Brith Sholom resident Gail Peddle after a hearing in Common Pleas Court.

PHA will pay $24 million for Brith Sholom, a 360-unit building at 3939 Conshohocken Ave. in the Wynnefield Heights section of West Philadelphia. It’s expected to bring the dilapidated building up to code, an effort started but not completed by a court-appointed receiver due to a lack of funding.

In a statement, PHA president Kelvin Jeremiah said he was “pleased” with the decision, saying it “brings us one step closer to preserving affordable housing for the seniors living at Brith Sholom.”

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

PHA separately negotiated settlements with the Philadelphia Water Department and the Philadelphia Gas Works, the latter of which was owed more than $500,000. PGW was scheduled to shut off service to the building on Sept. 9 after a series of extensions. The property was headed for a sheriff’s sale the following day.

Under the deal with mortgage holder New World Commercial Credit, corporate owner Brith Sholom Winit LP will not receive any money from the sale. Aaron Puretz, president of Apex Equity Group, a holding company tied to Brith Sholom, did not immediately respond to a request for comment.

Stockton Real Estate Advisors, the receiver, will get a commission of up to $720,000.

PHA is expected to close on the sale by the end of the week.

After Monday’s hearing, tenants had a message for senior renters across the city.

“I want senior citizens to understand: you’re more important than you believe. And just because you’ve gotten older in number, you still got the power. But you gotta come together,” said Marguerite Byrd, a spokesperson for the Brith Sholom Tenants’ Council.

“That’s how you win.”