As repairs continue to be made at Governor's Square, an affordable housing complex in Harrisburg, many community members said they are pleased with the property's progress.
Stephen Schuback, a prospective buyer for Governor's Square said he has been working to revitalize the property, in addition to fixing code violations that have been filed by the property.
"There are a lot of complaints about water infiltration, water leaking through the roofs or the ceilings of the units, sometimes infestation, windows not being replaced when they are broken, doors not being replaced, just general unsafe habitability issues," said Rhonda Mays, with the Fair Housing Council of the Capital Region.
"I think at this point he’s done an outstanding job keeping that promise to the residents of the community, which is something that really gave the residents hope. They had no hope for such a long time. Now they do," she added.
At a community meeting, Harrisburg Mayor Wanda Williams initially said there were multiple proposals to buy the property.
"That was a basic misunderstanding," said Matt Maisel, Director of Communications for the City of Harrisburg. "We've had multiple inquiries about this, multiple people who have been interested in possibly putting in an offer but right now there is one official proposal that has been set out there."
Even so, Maisel said the proposal set forth by Stephen Schuback falls short.
"Due to a prior assessment of the property, it would cost $22 million from where the property is right now, $22 million to basically have adequate needs and improvements for the property," he said. "The current proposal set forth by. Mr. Schuback is at $12 million, he is 10 million dollars under what would even be required to have a conversation about him buying the property."
Maisel said that estimate was from an assessment made by Innova Building Advisors in 2021.
In a statement, Stephen Schuback said:
"I am currently overseeing everything occurring at the 288 units at Governors Square. I have 20+ years of experience in construction and development as a Project Manager/Estimator. Included in my package to the city were three (3) resumes. In addition to mine, my construction manager possesses over 30 years as a general contractor, is a licensed master city plumber and electrician. My proposed asset manager has over 30 years experience in affordable housing for an affordable housing REIT.
I could speak at length on the inaccuracy of the report commissioned. However, it’s easier to say that it was only requested as a “general survey” of the property. It states clearly that “no design documents or unit matrix” was provided for their review and “takeoffs and unit counts are approximate.” Both are incorrect, and in comparison to the numbers I have assembled, 22.5 million dollars is, in my opinion, an extremely high cost of renovation.
My 12 million dollar renovation is based upon a blueprint takeoff of every unit, detailed personal assessments of actual buildings, material costs, and proposals from local construction companies to do the actual work. It contains above standard materials, no fluff, no unnecessary consultants, and no-nonsense. My team has over 70 combined years of experience, and we have no problem asking for help when needed.
The residents are out of time and need someone now. I promised I was here to stay and do not plan to break my word. I have been working with other government and non-profit agencies for months while begging the city to engage with me. Any concerns they may have can now be alleviated by watching me work.
There are roughly zero affordable housing units available in Harrisburg, PA right now. Every day we field calls seeking homes. The Residences at Governors Square currently has many vacant units I can make ready. Instead of sitting down with me and deciding if my numbers are correct, my expertise is challenged by the city in the media. Did the city of Harrisburg, PA go on the record and just mandate I have to spend 10 extra million dollars to renovate, or I can’t acquire the property? What’s their interest in the cost of renovation?"
In this case, a spokesperson from HUD said they will have to approve the sale. In a statement, a spokesperson said: "While Multifamily Housing/Property Disposition Division had preliminary discussions with the owner about a year ago to inform them of what would be needed to review a proposed sale, HUD has not received a package. PDD recently responded via email to a request from the Harrisburg Redevelopment Authority with the list of items they could share with the Seller and the Proposed purchaser that MFH/PDD would require to determine if the proposed purchaser can be approved for the proposed sales transaction. HUD Multifamily would have to approve the sale. The new owner would have to demonstrate capacity to manage the property; it does not appear the prospective owner has demonstrated capacity."
"The city is trying to be honest with the people who live there by telling them this is what is going to be necessary and right now that is not being offered," Maisel said.
Uptown Partners, the owners of the property said, "any potential sale would be a private business transaction. As such, ownership has no comment at this time. In the meantime, many resources have been engaged to repair the property. We’re pleased with the progress that’s being made. The health and safety of the residents are our top priorities."
They continued to say, “If and when there is a potential sale, ownership understands and appreciates the need to work directly with HUD as part of the process.”