Renters suffer without air conditioning at Section 8 complexes getting thousands in HUD funds
HILLSBOROUGH, N.C. (WTVD) -- EDITOR'S NOTE: This story has been updated.
It's been a sweltering summer in the Triangle with record-breaking temperatures, and that heat has caused problems for some renters.
Dozens of them reached out to Troubleshooter Diane Wilson saying they've been dealing with broken air conditioners for weeks or even months.
Renters said they were frustrated because they had reported the problem to their landlords but were told there were no funds available to get the units fixed. During ABC11's investigation, we learned two of the complexes where residents don't have A/C in their apartments are getting more than $110,000 a month in federal funding.
"Right now it's 87. If I cook, it will go up to 99 degrees. It's excruciating; it's hard to sleep. I had to jump in the shower to keep from passing out," Gateway Village Apartments in Hillsborough renter Denise Jarvis said.
Jarvis said the A/C in her apartment hasn't worked for months, and she's not alone. Wilson heard from more than a dozen renters in the Gateway Village Apartments in Hillsborough who said their A/C is not working, despite reporting it to management.
"They just won't do nothing," renter Sharon Clayton said. She didn't have heat when she moved in December of 2023, and now with the temperatures soaring, her air conditioner also doesn't work. She bought portable A/C units and runs fans to keep things cool.
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Bobbie Chappell has a similar experience.
"My daughter has severe asthma and she told me they were going to try and get in contact with HUD. She said HUD said it was too expensive to replace everyone's unit, to go buy my own window unit," Chappell said.
The Gateway Village Apartments are income-based and managed by Barr Residential and Development.
Besides renters in Hillsborough, Wilson heard from renters in the Lynnhaven Apartments in Durham, which is also income-based apartments managed by Barr Residential and Development.
"The temperatures got to like 85 and so like I was worried about my babies, because two of them have autism," Sharble Gaddy said.
Gaddy tried to wait for a repair, but when it didn't happen she also bought portable A/C units for her kid's rooms. Gaddy and her neighbors said their repair requests aren't being handled. They even started this petition trying to prompt change.
"Pretty much when we mentioned, the only thing they can say is, 'Oh, we don't have the money to fix it,'" Gaddy said.
Wilson went to the office at Lynnhaven to try and get answers. The worker there told Wilson the workers at the apartment complex are doing all they can, but ultimately have to wait for the owner to fund the repairs. The worker directed Wilson to the property manager, but that person never responded. Wilson also could not get a response from the Gateway Village Apartments.
Wilson reached out to HUD and a representative said all of the apartments at both apartment complexes receive HUD funding. According to HUD, the Durham Lynnhaven Apartments receives more than $64,000 a month in HUD funding and the Hillsborough Gateway Village Apartments receives close to $50,000 a month.
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When it comes to inspections of the property, both were inspected last year by HUD. The Durham complex got a score of 47 out of 100, and the Hillsborough complex got a 32 out of 100.
Due to that low score, HUD declared the Gateway Village property owner to be in "default of its Section 8 housing assistance payments contract and is taking necessary enforcement action to return the property to compliance and ensure all units are safe, sanitary, and in good repair." As for the Lynnhaven apartments, a HUD representative adds that the agency is in contact with the owners and property management company and that the well-being of residents is paramount.
While these renters wait for action, Gaddy says, "I just want it fixed."
"I guess we being minorities, low-income housing we are put on the back burner. Thank you guys for coming out," Chappell said to Wilson.
One of the renters at the Gateway Village apartments, Denise Jarvis, said since she talked to Wilson about not having a working A/C, she was given a window unit for her rental. Renters at the Lynnhaven Apartments tell Wilson, that management at the complex told them they must put all of their requested repairs in writing. The renters there who spoke to ABC11 said they've reported their issues several times but will do it again to make sure the complex has it all in writing.
Since the story aired on July 18th, ABC11 heard from the property management company of Lynnhaven and Gateway Village, Barr Residential and Development (BRD). The CPO, Richie Rojek said in part BRD has zero ownership stake in either site and, "We also are owed our management fees in its entirety for Gateway and have been working for free the past year to be able to try and make repairs. We have also paid for, out of our pocket, the insurance to be renewed, we have paid for AC units and other items needed on the property with promises of being reimbursed by the owners. This has come to a halt since we are owed well over $100K between these repairs and management fees." Rojek also stated BRD has been working side by side with HUD, and if they had the funding, they would take care of any and all repairs.
The owner of the properties is The Ezekiel Foundation, Inc. The co-founder and President of the Foundation MaryAnne Simmons provided this statement about the properties, "While we understand the criticism of our foundation for affordable housing violations, which we are not proud of, there is a bigger story behind why this is occurring. There are multiple items, but one that helps explain why the properties are not reaching the standards we hold as a nonprofit entity, and want for our residents, has to do with the rents we receive. The Ezekiel Foundation has invested hundreds of thousands of dollars into this property over the past few years. However, the section 8 vouchers that we receive from HUD are at least $300 less per apartment than current Fair Market Rents. Thus Ezekiel has been forced to secure additional funds, and they must come from outside the banking system due to the below-market rental rates and its negative effect on operating revenue. It has taken longer than we expected, but fortunately, we have been able to find a viable funding option that will allow us to invest several million dollars into updating Lynnhaven Apartments - starting in early to mid-August." When Troubleshooter Diane Wilson asked about the Gateway Village Apartments, Simmons wrote, "We are receiving funding to use at both Gateway and Lynn Haven. And again the funding should arrive early to mid-August for repairs and payments to the current property management company."
