Paterson must give back $440K for long delayed veterans affordable housing

PATERSON — Mayor Andre Sayegh’s administration must repay the federal government $438,399 in housing funds spent on a proposed 31-unit veterans apartment building that has not been built.

A resolution approved by the City Council on Tuesday said the United States Department of Housing and Urban Development has designated Paterson’s veteran housing proposal a “failed” project.

The council resolution said city officials repeatedly contacted the project partners — the Paterson Housing Authority and Pennsylvania-based Roizman Development — about the status of the plan. The resolution said the housing authority and developer on multiple occasions assured city officials that construction would start within six months, but it never did.

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In addition to refunding HUD the $438,399, Paterson also must shift another $1.2 million in federal funds that were supposed to help pay for the veterans building to another housing project.

Sayegh did not respond to questions about the failed project, which was supposed to be built on housing authority-owned land near the corner of Carroll and Fulton streets in the 4th Ward.

'Great need' for veterans affordable housing

Housing authority executive director Irma Gorham — who’s been expected to retire for the past 18 months — said the veterans building plan ran into problems, including a downturn in the real estate market and complications caused by the COVID pandemic.

“No one has been sitting on their hands on this,” Gorham said. “We’ve been making progress. Now the city has other priorities.”

Gorham said the housing authority remains committed to the veterans apartment building and would look for other sources of funding.

“We’re not giving up on this,” Gorham said. “There’s a great need for affordable veterans housing.”

Roizman company has worked with Paterson on many projects

The Roizman company has worked with the housing authority on many projects, including the $106 million reconstruction of the 246-unit Riverside apartment complex . Roizman did not respond to a phone message seeking its explanation for the problems with the veterans building.

Sayegh has not said where Paterson will get the $438,399 to repay HUD. Nor has the mayor disclosed what other project in Paterson will get the $1.2 million being shifted from the veterans building.

The City Council voted 9-0 on its resolution regarding the veterans housing, with only members making any comments.

“We are not defunding because we want to,” said Councilman Luis Velez. “We are defunding because we have to be in compliance.”

If the city doesn’t reallocate the $1.2 million earmarked for the veterans building within federal deadlines, Paterson would be in danger of losing that money, officials said.

This article originally appeared on NorthJersey.com: Paterson must give back $440K for long delayed veterans affordable housing