The once heralded organization was dismantled after Freeman mismanaged millions of taxpayer dollars. But even after the scandal, Freeman continued to claim legal ownership of dozens of properties that had been part of the Settlement empire, collecting rent from tenants while ignoring their requests for basic maintenance.
Some buildings had unreliable heat and water. At other locations, trash piled up in common areas.
After a lengthy court battle, the Philadelphia Redevelopment Authority effectively seized 45 properties from Freeman, an exceedingly rare move that saw the agency walk away from collecting $9 million tied to federal loans awarded to Settlement to develop low-income housing in Germantown.
PRA took Freeman to court after residents derailed a deal that would have saved Freeman nearly $6 million in interest and penalties on those loans. Under the proposal, Freeman would retain control of the properties if he agreed to fix them up and pay back the principal on the loans.
The friendly offer disappeared after the deplorable condition of these properties came to light. A group of dedicated neighbors spent weeks photographing and documenting Freeman’s negligence, then presented their findings to the authority.
“We inherited property that is currently uninhabitable,” Jeremiah said.
The housing authority expects to spend this year preparing for construction. That includes lining up financing, which the agency expects to include low-income housing tax credits from the Pennsylvania Housing Finance Agency.
Jeremiah has said it would take about 18 months to complete the renovations. As part of the plan, the agency has also proposed building a new rental property in East Mount Airy to replace a vacant structure the city recently demolished because it was deemed unsafe.
