North Adams Housing Group Seeking Clarity on Asset Transfer
NORTH ADAMS, Mass. — The years-long effort to dissolve Housing Opportunities Inc. and hand off its assets to the city may have hit another roadblock.
The HOI board, comprised of members the Housing Authority board of directors, had hoped to begin finalizing the transfer on Monday. But the news from its attorney, Elisabeth Goodman of Cain Hibbard & Myers was that the path was still not clear.
"We had been proceeding along a path where the properties would be transferred to the city," Goodman told the board, later saying she was ready to be put on the City Council agenda to explain the transfer and ask for a vote. "That's where I got stopped."
That's because a question had arisen at a recent meeting with city officials and Executive Director Jennifer Hohn over whether the municipality could legally accept real property from a non-profit organization.
Goodman said she was sure the city could accept gifts or transfers of property by vote of City Council but had reached out to the city solicitor to address the issue without hearing back. A meeting had been set up for Monday but it was canceled because neither Mayor Richard Alcombright nor Michael Nuvallie of the Community Development Office were able to attend.
"We wanted to schedule it before this meeting so we would have something to tell you," Goodman said, adding that she had again reached out to City Solicitor John DeRosa to clarify if the city did want the properties. DeRosa had not responded before Monday evening's meeting.
Housing Opportunities, established in 1985, was designed to create housing availability for first-time and low-income homeowners. Properties were purchased, rehabbed and sold with a low interest rate. Historically it has been governed by the same board as the Housing Authority and directed by the Housing Authority executive director on a volunteer basis.
But its existence has created issues with U.S. Housing and Urban Development, which does not allow HUD monies to used to pay for HOI staff — mainly clerical work for billing and other paperwork — and the nonprofit does not have the resources to pay for its own staff.
HOI currently has 13 properties, including four with mortgages and several vacant lots. The city was approached several years ago about taking over the program and indicated it was interested. The HOI board voted last year to continue its dissolution and begin transferring assets.
Goodman said she and Hohn had had conversations about what else could be done with the properties: auctioning some or all, or transferring them to Habitat for Humanity or Louison House Family Life Support Center, or some other group.
"The bylaw says that the final disposition of assets goes to the city but you could sell or dispose of property and just collect the money and give it back to the city and close down," Goodman said. "You don't have to actually transfer the real estate to the city."
She suggested going through the mayor's office again to press the issue but needed direction as to what the board wanted her to do.
The board, and Hohn, expressed their frustration with what they thought was a done deal.
"Something that's been in the works for a long, long time now all of sudden is stopped again," said Chairman Colton Andrews. "We want to dissolve but we want to do it responsibly."
Board member Matt Neville advised sticking to the path: "I'd like to see it go back to the city because it's a good program, the program helps people."
Goodman said she has also been in contact with the attorney general's office about the dissolution process, which was "permission to close first and then have the assets transferred." The AG's office wants the board when it votes to detail each property it is transferring.
The board hoped to have a firm answer before the end of the year.
Tags: Housing Authority, Housing program,
