(March 26, 2008) The Richardson Building and Standards Commission accepted the findings and recommendations of the City of Richardson and set a deadline the Ashley Place Apartments to be brought up to compliance or be demolished. As was the case with previous city actions, the owner did not show up for the public hearing. However, several residents spoke up and so did an attorney representing the lender.

As we documented in a previous story, the City of Richardson declared the Ashley Place Apartments in the 700 block of West Spring Valley an Urban Nuisance after numerous code violations went an answered and uncorrected since July of 2007.

The city called a hearing of the Building and Standards Commission (which is actually the Zoning Board) and at that pubic hearing it presented a case documenting the dire conditions found at the apartment complex. These problems include structural issues with walkways and stairs, unsafe electrical wiring, leaking water, and pest infested units.

As Don Magner, Directory of Neighborhood Services, stated the City’s case he noted, “a complete lack of response on behalf of the property owner.”

Timeline

In July 2007, the city, during regular inspections found numerous violations. The city notified the owner of these deficiencies. On October 1, 2007, the City reinspected the complex and found “almost no improvements.” On October 15, the City issued 45 citations. At the end of December 2007, the City noted minimal improvement but also noted “more serious violations” which indicated a deteriorating situation at the complex.

At that point, over $2800 in fines were not paid. The City levied 83 more citations and this totaled fines of over $57,000. Additionally warrants for arrest were issued for the owner. According to the City’s presentation this totaled over 115 warrants.

On January 28, 2008, the City Manager made the decision to declare the complex an urban nuisance. Manger noted that even at that time, “the overall condition [of the complex] was deteriorating.”

On February 12, 2008, an attorney who was representing Brecht Ashley Place LLC, the listed owner of the property on tax records, informed the City of Richardson it was no longer representing the complex or its owner. On approximately March 10, the hired management company stops service due to non-payment of bills.

The City’s Case

Richardson Neighborhood Service’s case had three parts: Life Safety issues, minimum property standards, and health & welfare issues.

Frank Palma from R-Delta Engineering testified that the overhead walkways and stairways were in poor condition. He testified that the system contained numerous defects including rusting stair steps and support joists which contain “widespread rot.”

He described the walkways and stairs as, “nowhere near adequate,” and added the recommendation that the defects are, “so widespread that [the stairs and walkways] need to be removed and reconstructed.”

These conditions lead Assistant Fire Chief Steve Dosset to say, “The Fire Department will not utilize stairs or walkways.”

He stated in a fire they would utilize ladders to gain access to the upper floor instead of using the stairs.

Commission member Randy Roland asked what the Fire Department would do incase of a medical emergency requiring a stretcher or evacuation.

Dosset responded, “It might be difficult if not hazardous,” and that they would, “Do what they need to do.”

The citizens and commission members were then treated to a 30 minute video showing the living conditions in the complex. This film contained numerous things that even the average person would see as hazardous or dangerous.

Here is a partial list of items shown:

• Leaking water in the complex’s main boiler room. In the same room we saw spliced and exposed wiring just a few feet from leaking water. (The city has since shut this off for obvious safety reasons.)
• Burned out electrical outlets. This resulted in residents adapting by overloading other working outlets creating potential fire hazards.
• Resident installed electrical modifications such as splicing wiring under light switches and running exposed wiring to lights.
• Non working cooking units which resulted in some residents using portable gas cooking systems inside their units.
• Extensive evidence of pest infestation including roaches and rodents.
• Extensive leaking plumbing including many units which allow leaks to travel into walls. The extent of damage from these leaks into unseen spaces is unknown.
• Since people began to vacant the complex, there have been signs of illegal activity within the complex. The Police have stepped up their presence and recently security guards can be seen in the complex.

The Neighborhood Services Department made several recommendations to the Commission.

First, they asked that the residents be ordered to vacate the premises. Next they asked that the property owner be given 60 days to come into compliance. If the property owner does not come into compliance, they can ask for a demolition permit within 60 days, and complete demolition within 90 days. These times are concurrent and not successive. If there owner does not comply, the recommendation would then be that the City of Richardson demolish the property and place a lien on the property.

Several residents testified including Malcolm Hamilton. He stated that their rent had been $725 a month and that indeed the checks were cashed even though no ongoing maintenance was done. He said that him and his wife kill roaches but then in a few weeks they “overtake the place.”

He described the scene with his family, “My kids are prisoners. I don’t let them outside. I don’t let my wife outside.”

Another woman described the lack of hot water and as a result she has to boil water to give her kids a warm bath.

The surprise of the evening was when Melissa Davis, an attorney from Fulbright and Jaworski stepped to the microphone. She informed the audience and Commission at the hearing that she represented the lender on the property and that the lender had taken court action to put the property into receivership.

What this means is that the lender, because of unpaid loan debt, asked a court to give operational control of the property to a third party designated as the “receiver.” This person, who identified himself as Bruce Woodward, was appointed by 193rd district court to take over the property and make the best judgments on behalf of the lender. The action of putting a property or asset into receivership is a common action used by lenders to protect assets which are covered under their loans.

Woodward stated that the court “put me in place to take control of the asset.”

Both Woodward and Davis agreed with the recommendation to vacate the tenants. Davis disagreed with the timeline for compliance and demolition stating that they had the intention to foreclose on the property and put it up for a May foreclosure sale.

In response, Magner refused to change his recommendations stating that if no progress was made then he would have to return to the commission with the same case and state it all over again. He stated that if progress was made then the receiver, lender or owner could come to the City and ask for the demolition order to be removed but he clearly indicated the progress would have to be significant.

After a short discussion the Commission passed the recommendation unanimously.

Woodward spoke to the Echo afterward stating that he had not had a chance to extensively examine the property to decide if repair or demolition was the best option. He did, however, note that he was most concerned for the safety of the residents and agreed that they ought to move out. He stated he wanted to make the best decision for the lender, and the citizens of Richardson. Woodward is experienced in apartment operations and according to his statements now manages apartments in the Metroplex totaling over 14000 units.

The Echo has noticed frequent moving trucks on the property and increased security presence. We will update you on the progress as the deadlines approach.