Clairton HOA seeks property auction to pay creditors
The homeowners association for a 425-unit complex in Clairton has submitted a plan to bankruptcy court calling for foreclosing on some properties in the complex on which the association has liens and then paying off creditors with the proceeds of the sale.
The Century Townhomes complex on Desiderio Boulevard has struggled in recent years with some large property owners declaring bankruptcy, as well as issues related to all of its housing units being tied to the same water meter.
The World War II-era complex also has a mix of owners for its hundreds of townhomes, which has made improvements a challenge. About 33 units are owner-occupied, about 150 units are owned by small landlords, 16 units are owned by nonprofit Sisters Place, and 149 units are owned by an out-of-state company that is involved in a separate bankruptcy case.
The plan, filed Wednesday in U.S. Bankruptcy Court for the Western District of Pennsylvania, calls for the foreclosure of approximately 75 unoccupied properties that have not paid their homeowners’ assessments. If a buyer can be found, Pennsylvania American Water and the Clairton Municipal Authority — which provides sewage service — would receive proceeds from the sale.
According to court documents, the association believes the aggregate fair market value of the properties is $375,000.
Residents and homeowners’ association officials have been hoping for a buyer who will invest in the community and make improvements.
Gary Lobaugh, a spokesman for Pennsylvania American Water, said the company has not yet reviewed the plan and could not comment.
An attorney for the Clairton Municipal Authority could not be reached for comment.