PHA is poised to buy Philly’s Brith Sholom House after years of strife

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The Philadelphia Housing Authority is hoping to buy Brith Sholom House, a crumbling apartment building with nearly 100 seniors who are facing the prospect of being displaced.

News of the possible sale comes less than a month before the building is scheduled to lose all gas service over unpaid bills. The shutoff, set for Sept. 9, would force tenants to move amid an affordable housing crisis.

The building in Wynnefield Heights is scheduled to be sold at a sheriff’s sale the following day.

“We can confirm that PHA is actively negotiating the purchase of Brith Sholom, which is not yet complete. At this point, it is premature to comment. PHA intends to make a full announcement once the purchase is finalized,” said PHA spokesperson Nichole Tillman in a statement.

The authority is offering $24 million for the building. The sale needs court approval, which could come during a hearing scheduled for Aug. 26. Stakeholders, including tenants, had hoped the transaction could be completed by the end of the week, but the emergency proposal is now on hold after it was effectively deemed incomplete.

“At this point, you’re not there,” said Philadelphia Common Pleas Court Judge Anne Marie Coyle during a Tuesday hearing. Coyle said mortgage holder New World Commercial Credit also needs to show that all creditors have been properly notified of the sale.

The delay again leaves tenants in limbo, living in a building with a long list of open code violations and at least a handful of squatters.

In November, the 12-story property was placed in receivership after a judge dismissed a bankruptcy petition filed by corporate owner Brith Sholom Winit LP. The receiver, Stockton Real Estate Advisors, has made some repairs but there are still dozens of serious code violations and not nearly enough money to address them all.

The bank does not have any more to give, said receiver Alan Jovinelly. He added that SREA is struggling to perform basic maintenance and will not have enough to cover 24-hour security at the building, opening the door to more squatters.

“We’ve done everything we can,” said Jovinelly.

Aaron Puretz, president of Apex Equity Group, a holding company tied to Brith Sholom Winit LP, did not immediately respond to the request for comment.

If the sale is approved, PHA is expected to bring the dilapidated building up to code. It’s unclear if tenants would be able to remain on site while the authority makes repairs, though only about a quarter of the units at Brith Sholom are occupied. The building has a total of 360 units.

Proceeds from the sale would be used to cover settlement agreements reached with a half-dozen lienholders, including PECO Energy Company, which is owed roughly $800,000. Under the agreements, these creditors will receive some, but not all of what is owed to them, lawyers said Tuesday.

PHA has separately negotiated settlements with the Philadelphia Water Department and PGW, the latter of which is owed more than $500,000. Jovinelly said lienholders owed less than $10,000 will be paid in full.

Daniel Pereira, an attorney representing New World, told Coyle Tuesday there are other buyers interested in purchasing Brith Sholom — buyers who may make the units market-rate instead of affordable.

After Tuesday’s hearing, tenants who sat through the proceeding expressed disappointment that the deal was not done yet. Most of them live on a fixed income and many have stayed at Brith Sholom because they cannot afford to move.

Marguerite Byrd, a spokesperson for the Brith Sholom Tenants’ Council, said she’s tired of living in a building in disrepair and hopes PHA is able to step in after years of turmoil.

“It’s frustrating because you don’t know what’s going to happen,” said Byrd.