$900,000 in unpaid water bills put New London agencies at odds

Kathleen Edgecomb

Oct. 31, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- NEW LONDON -- The water authority has filed dozens of liens against housing authority properties to secure nearly $900,000 in overdue water and sewer payments.

The two authorities -- the New London Housing Authority and the New London Water and Water Pollution Control Authority -- have been trying for years to work out a payment agreement to clear accumulated unpaid water and sewer bills.

But on Oct. 1, the water authority filed more than 130 liens that individually claim as little as $90 and up to tens of thousands of dollars in unpaid bills. The amount of each lien includes interest, attorney's fees and other charges.

"We have tried everything humanly possible to collect these fees," said Barry Weiner, chairman of the water authority. "We have a responsibility to our ratepayers. We are just beside ourselves. We are entering the last phase of things we can do to protect the balances they owe us -- and that is to file these liens."

Brian K. Estep, the attorney for the water authority, said the liens were put on the property to protect the water authority's interests.

"The city does not intend at this time to foreclose or do anything else," Estep said. "We have no desire to own these properties."

Shirley Gillis, chairwoman of the housing authority, said the two groups have been meeting and trying to work out a payment agreement.

She said she did not know the liens had been filed.

"I'm not quite sure what it means," Gillis said Friday. "We've been told they weren't going to do anything, and when we get the money we pay."

Weiner said that over the years the housing authority has made some payments.

"Usually we rattle the cage and get a couple checks, but now they are just not paying at all," he said.

Out of money Sue Shontell, the acting housing director, also seemed surprised the liens were filed. The housing authority recently mailed a check to the water authority for $4,000, she said.

"We are trying to work with them. When we get little bit of cash, we pay them," Shontell said.

Housing authority lawyer Timothy D. Bates said the authority has no money to pay its bills.

"It's part of the problem the housing authority has been trying to work out for the several years," Bates said.

"They have to restructure and do better to develop cash flow."

The liens are the latest development in a barrage of problems that have plagued the quasi-public agency, which since 1998 has been on the "troubled agency" list of the federal Department of Housing and Urban Development.

According to Gillis, the authority has accrued about $2.8 million in unpaid water, sewer, utility and other bills.

The housing authority, which is overseen by a five-member board of volunteers appointed by the city manager, operates 735 units of state and federal housing in the city.

It has a budget of about $1.1 million for the federal housing and about $2.1 million for the state housing.

Last spring HUD recommended the authority seek a private company to manage its federal projects: 124 low-income units at Thames River Apartments -- the high-rise on Crystal Avenue -- and 99 units for the elderly and disabled at Williams Park -- the high-rise on Hempstead Street.

In June, Executive Director Joseph Abrams went out on sick leave. He resigned in August after a federal audit revealed that the agency, and Abrams, did not properly administer nearly $1 million in federal capital programs funds over three years.

The Office of Inspector General of HUD blamed Abrams' poor performance and the board's lack of oversight for the authority's inability "to make appropriate decisions on contracts, proposals, budgets, internal controls, procurements and other activities."

In April the authority received $381,000 under the American Recovery and Reinvestment Act of 2009 and was going to improve the playground, parking and outside areas of Thames River. But those funds have been redirected to pay for hot water heaters, concrete platforms for garbage receptacles, upgrades of elevators and repairing a retaining wall at the two federal facilities. The funding has been put on hold while HUD reviews the changes.

In September, the housing authority was awarded $2.1 million in low-income tax credits to help renovate Bates Woods and Briarcliff, its moderate-income state housing projects.

In 2007 the Carabetta Organization of Meriden proposed a $48 million overhall of the two properties. Carabetta would eventually own and operate the 302 units.

Newstex ID: KRTB-0139-39407290