GREENSBORO, N.C. — The City of Greensboro plans to sue the previous owner of a troubled housing complex over thousands of dollars in past due fines and penalties. Meanwhile, residents hope the complex's new owner will follow through on promises to improve the property.
Questionable conditions at the apartment complex, located at 3100, 3102, and 3014 Summit Ave., came to light after five children died in a fire May 2018.
Greensboro Mayor Nancy Vaughn confirmed to WFMY News 2 on Sunday that outside legal council will assist the city's court action against Arco Realty, the previous owner of what used to be called the Summit Avenue apartments.
A WFMY investigation revealed in May 2019 that Agapion, the family associated with Arco Realty, owed the City of Greensboro $685,620, including penalties and fees related to the apartments at Summit Ave.
After the deadly apartment fire, The City of Greensboro found about 800 code violations on that property, including lack of working smoke detectors, exposed wiring, sewage problems, and rats. The owner missed several deadlines to get the units up to code.
"We stand committed to collecting all those fees that are outstanding. The fines are valid and legitimate. They were charged because there were issues that had not been repaired," Sharon Hightower, Greensboro District 1 City Council Representative, told WFMY News 2 on Sunday.
Hightower said the city plans to use the money collected to help fix other housing developments in Greensboro that need rehabilitation but do not have the financial means.
"It's well over 600,000 dollars. And 600+ thousand dollars can truly make a difference, when you're talking about properties that are in disrepair, people that need a rehab grant, a rehab loan," said Hightower.
Hightower said the city is ready for a legal fight to collect the money from Arco Realty with the help of city attorneys and outside legal council.
"This is such perhaps, a little bit more difficult case than what we've encountered in the past," said Hightower. "There is outside council helping us, those that are a little bit more expert in the collections of these types of fines and penalties, if you will."
Starting this fiscal year, Mayor Vaughn said the city is committed to collecting past due fines and penalties on all Greensboro properties, not just the complex on Summit Ave.
Hightower said it is "double win" for Greensboro that the property now has a new owner and that the city is flexing its legal muscle to collect past due fees.
WFMY News 2 reached out to a media representative for Arco Reality and were referred to contact Arco's attorney for comment, who we have not heard back from yet.
'It's been pretty rough'
On Friday, property management company TE Johnson, CJH2 Enterprises announced it had purchased the 42-unit property for $1.3 million.
It's getting a new name, "UNITY Place Apartments," and improvements including fire suppression systems, parking lot repaving, energy efficient appliances, and a living art project, according to a blog post from the company.
"The previous owner’s violations have been remedied," the post also reads.
On Sunday, current residents told WFMY News 2 about problems in their units -- and their hopes that the new management will help fix them.
"It's been pretty rough," said Jerome White, who moved in about seven months ago to several problems with his unit.
"I run my bathtub and water runs down through kitchen ceiling. They haven't done anything to the kitchen floors," said White, referring to stains, scratches, and other marks covering the floor.
"I just hope they're good on their word. Because you get promises here and there, but nobody seems to want to live up to them," said White.
Another resident, Antonio Martinez, said there is no central air conditioning, his water heater doesn't work, the stove doesn't work, and the refrigerator door doesn't close fully.
"I'd like to see them try to do something to the apartments and keep them up," said White.
WFMY News 2 reached out to Cathy Robertson, Vice President of TE Johnson & Sons, on Sunday to learn more about improvements to the property, and we have not heard back yet.