Tuesday, May 17, 2011, 8:56 am
News Flash Archive
On April 1, 2011, a deed was executed conveying the dilapidated Delta Apartments complex to JPL-Greenwood, Inc. JPL was the high bidder at the HUD foreclosure sale that took place on February 11. JPL bid $50,000 for the entire 10 acre multi-family apartment complex.
The previous owner of the property, Delta Associates, Ltd., had disappeared and could not be located by tax officials.
JPL-Greenwood was incorporated in January of this year. No officers are listed on the Secretary of State's web site, but Jerry Sisson is the incorporator. In the land instruments, he is also shown as the President of JPL-Greenwood.
He is also president of Tesco Properties (www.tescoproperties.com) which is a low-income multifamily management and development firm based in Germantown, Memphis.
The agreements executed with HUD require that JPL-Greenwood maintain the Delta Apartments complex as low-income rental units for 20 years. They also impose most of the same requirements that were proposed by HUD to Leflore County last year when some supervisors wanted the county to purchase the complex.
These requirements include:
1. strict low income rent controls for 20 years on all 100 units.
2. posting of a $1 million Line of Credit to guarantee performance of the required repairs.
3. finishing repairs of $4.3 million within 24 months.
4. responsibility to remove all lead-based paint and asbestos from the site.
5. payment of $100,000 immediately into a reserve fund for replacement, with an additional $30,000 every year for 20 years.
6. prior approval from HUD before any part of the complex is conveyed or sold, or any part demolished.
Because Leflore County refrained from involving itself in the purchase of the complex, it now escapes any liability or responsibility for any of these agreements or costs.
John Pittman Hey
The Taxpayers Channel
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