Northwest Arkansas Democrat-Gazette

Housing Authority to ask for judge’s decision in land deal

- STACY RYBURN

FAYETTEVIL­LE — The Housing Authority board is going to court to stop the sale of one of its public housing properties.

The authority will ask a Washington County Circuit judge to terminate a deal to sell Willow Heights at 10 S. Willow Ave.

The board in March 2017 agreed to sell the 40-unit complex to Vlad Tatter under his limited liability company, Willow Heights LLC, for $1.25 million. The contract has certain contingenc­ies the authority says it cannot meet.

Executive Director Angela Belford said she hopes to have the authority’s attorneys file a petition in court within the next few weeks to ask a judge to decide if the contract is valid.

The authority in January returned a $62,500 check, which was the deposit on the sale, to Tatter. He didn’t cash it, Belford said. The authority sent a cashier’s check in July for the same amount and asked Tatter to terminate the contract.

Tatter’s attorney, Bob Estes, told the authority’s attorney, Jim Crouch, Tatter won’t sign the terminatio­n, Belford said.

“The bottom line is they agreed if we couldn’t meet the contingenc­ies, they would sign a cancellati­on of contract,” Belford said. “They are not upholding that end of the deal.”

The contract says the deal is contingent upon the Housing Authority’s ability

to meet the conditions. If the contingenc­ies aren’t met, the contract will be terminated and the buyer will receive a refund on the deposit.

Estes and Tatter declined to comment. Tatter has said he wants to build homes in place of the apartment complex.

The contract has three conditions to be met for the sale to happen: The Arkansas Developmen­t Finance Authority would have to award the Housing Authority a tax credit; the U.S. Department of Housing and Urban Developmen­t would have to release the property to be sold; and residents would have to be moved.

Belford said the authority can’t meet the first two conditions in the contract.

The Arkansas agency didn’t award the tax credit to the authority in 2017. The contract doesn’t say the authority has to keep applying, she said. The tax credit program is highly competitiv­e, and having the backing of a community significan­tly helps the chances of gaining the award, Belford said. Mayor Lioneld Jordan has said he won’t endorse the plan.

Belford said field officers with Housing and Urban Developmen­t have told her the agency won’t release

the property. The authority is seeking written confirmati­on to take to court, she said.

“If they, based on the informatio­n they’ve gathered during this process, do not feel like the proposed project is in the best interest of the residents, then they’re not going to do it,” Belford said.

The plan was to move Willow Heights residents to an expansion at Morgan Manor, another Housing Authority property, to meet the third condition.

The potential sale drew the ire of several resident for about a year. Jordan called a meeting at City Hall in July 2018 to get public input. The meeting lasted more than five hours.

The authority’s board in a meeting later agreed to follow the City Council’s recommenda­tion to get out of the contract to sell Willow Heights. Three of the five board members resigned, and then-Executive Director Deniece Smiley was fired that September. Belford began a year ago as executive director.

Chandra Hilton, who has lived at Willow Heights for about four years, said the

uncertaint­y over the place is worrisome. She said she never wanted to move to Morgan Manor. Hilton said she feels the Housing Authority doesn’t have any other choice but to go to court.

“That means it’s in the hands of one person who, for one reason or another, might decide to draw this out or might decide, ‘No, you can’t cancel it,’ despite what the contingenc­ies say,” Hilton said. “It adds more uncertaint­y to my knowledge about what can happen or what will happen.”

 ?? NWA Democrat-Gazette/ANDY SHUPE ?? Cars are parked Thursday in the Willow Heights developmen­t in Fayettevil­le. The Fayettevil­le Housing Authority board this week voted to seek a declarator­y judgment in the pending land deal to sell the complex to a private landowner.
NWA Democrat-Gazette/ANDY SHUPE Cars are parked Thursday in the Willow Heights developmen­t in Fayettevil­le. The Fayettevil­le Housing Authority board this week voted to seek a declarator­y judgment in the pending land deal to sell the complex to a private landowner.

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