Clayton County officials defeated a nonprofit’s plan Tuesday night to buy and renovate several apartment complexes in the county. In response, the head of the nonprofit said he’s “exploring the idea of litigation” in federal court.
Commissioners voted 3-2 to block Wisconsin-based Public Finance Authority from issuing tax-exempt bonds to finance improvement to three apartment complexes in Clayton. Public Finance is working with Linked Economic Development & Affordable Housing Foundation better known as LEDAHF, a 22-year-old suburban Washington, D.C-based nonprofit that buys and renovates properties along the east coast to preserve affordable housing. The Clayton project would have been LEDAHF’s first project in Georgia.
Commission Chairman Jeff Turner, who voted against blocking the deal, asked commissioner Michael Edmondson, who brought the measure before the board, to explain his reasoning for blocking the deal. Edmondson replied “I don’t think it’s in the best interest of the county.” When asked to elaborate, Edmondson declined.
“In 40 years as a developer, I’ve never encountered anything as irrational and, I believe, illegal as this vote,” said Richard deGorter, executive director of LEDAHF said after the vote. “The lack of accountability and transparency on the board is unprecedented in my experience and extreme. We’re exploring bringing the federal government (into to this case) because it’s a violation of the Fair Housing Act because they’re obstructing the provision of affordable housing.”
Despite the county’s decision, deGorter said: “We’re still going to buy the properties but this action bars us from getting tax-exempt bond financing. Taxable bonds will be much more expensive.”
When he returns to Washington Wednesday, DeGorter said he will look at taking the case to federal court with the help of national nonprofits that pursue such litigation.
LEDAHF is under contract to buy Laurel Point and Bradford Ridge apartments, both of which are in Commissioner Gail Hambrick’s district. Hambrick voted to block the plan. The nonprofit also plans to buy Ashford Ridge, a 250-unit complex in commissioner Michael Edmondson’s district. Edmondson also voted to reject the financing by Public Finance Authority. Commissioner Sonna Singleton Gregory cast the third vote, essentially killing the deal.
All three properties are home to about 2,500 Clayton residents. The Public Finance Authority deal would not have created any financial risk to the county, deGorter said.
“I’m very disappointed. It’s a decision that has great impact on a whole lot of people. This (plan would) renovate apartments, beautify the area and increase the tax base. I don’t know why he’s doing this,” Turner told the Atlanta Journal-Constitution regarding Edmondson’s action. “He owes the citizens of Clayton County an explanation.”
About the Author
