Residents want co-op to continue

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LINCOLN HEIGHTS - At Valley Homes, many of the housing cooperative's 350 gray, wood-frame units are empty and in sore need of repair.

The plumbing and electrical systems are out of date. Some suggest the complex should be razed.

"The place is riddled with problems," says Noel Morgan, a Legal Aid Society attorney who came on board in 2005 to represent renters when the cooperative was threatened with shut-offs of its utilities because of unpaid bills.

"There really has been no serious maintenance on the buildings in years.

"The reality is," Morgan added, "the only way to rehabilitate those buildings is with a bulldozer."

But for many longtime Valley Homes residents, that thought is heresy - unless their homes are replaced by new ones on the same land.

"This is home," Toni Mimms, of Wayne Court, said of the place where she moved with her family 58 years ago when she was 2. "It's a neighborhood. It's family. Most of the people here are senior citizens."

Mimms' Wayne Court neighbor, Addie Mae Shackelford, is 87.

"I don't want to leave Lincoln Heights," Shackelford said. "I'm going to stay here until they put me out. It's rough, but we're surviving."

Added Joyce Thacker, 52, of Leggett Court: "We want it to stay Valley Homes."

But faced with the unpaid utility bills, the housing cooperative - a nonprofit organization whose members have permanent use of their unit - has been placed in receivership while it tries to correct its financial problems.

The court-appointed receiver, Maureen Wood, who has a background in development and construction, said the complex has deteriorated beyond the point where rehabbing is feasible. Redevelopment is the complex's only chance for survival, she has told the court.

"The buildings have outlived their useful purpose," Wood said. "It would cost more to renovate than to rebuild."

NATURAL ATTRITION

Only 178 of the 350 units are occupied, 103 of those by seniors or people with disabilities. As original members of the cooperative moved out over the years and relinquished their shares, their units were rented to others by the cooperative. About 70 owners/members of the cooperative remain.

"The older people are here because it's home," Wood said. "The younger people are here because it's cheap."

Owners/members pay $350 a month, and renters pay $425 to $575 for one-, two- and three-bedroom units. The monthly fees include all utilities.

Walnut Hills-based Model Group is seeking tax credit financing from the state to redevelop the complex. It would allow the developer to avoid federal income taxes for 15 years.

The proposed developer would raze the old Valley Homes units and use the financing to construct affordable housing with estimated monthly rents of $525 to $575. Cooperative owners/members would lease the proposed units for 15 years before the homes would revert back to their ownership.

A decision on whether to allow the tax credit financing is expected in July.

Phase 1 of the proposed project would include 150 single-family units designed for seniors 55 or older.

"I feel pretty confident," Wood said of tax credit approval. "It would be a crime for this not to stay in some way Valley Homes. You have a sense of community here, even though the buildings are falling apart."

The redevelopment option appeals to residents such as Mimms, Shackelford and Thacker.

"I just can't wait," Shackelford said of the prospect of moving into new units. "I love the convenience (of the one-floor layout). I've got a yard. The new place looks like it's going to be just what I want."

The redevelopment proposal would allow longtime residents the chance "to have something decent before we die," Thacker said.

THE LONG DECLINE

Several factors have combined to allow the complex to reach such a dilapidated state.

Some say the complex was mismanaged over the years.

"They had maintenance men that didn't know what they were doing," Shackelford said.

"The place wasn't being well managed." attorney Morgan says. "As far as I know there wasn't any malfeasance."

Cooperative members also failed to raise their monthly rents over the years.

"Part of it was they weren't collecting enough rent," Morgan said.

"They let all the infrastructure go down," said 64-year-old Chad Alston, who has been a Valley Homes resident for nearly 30 years. "They didn't put anything into reserves."

Lincoln Heights Councilman Jeffrey Mitchell believes the best course for Valley Homes residents is to rehab the units in the 55-building complex.

"Absolutely," Mitchell said, "the homes can be refurbished."

Mitchell believes the complex would be eligible for some type of historical preservation grant, and that the city could float a bond issue to help finance the rehab.

That scenario would allow Valley Homes cooperative members to maintain ownership of their units and keep the complex's population in the village, Mitchell said.

"It's part of our culture," said Councilwoman Carolyn Smith.

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