Brith Sholom seniors, after years of misery, get a new landlord: Philadelphia Housing Authority

Brith Sholom House, the beleaguered senior housing complex in Philadelphia’s Wynnefield Heights section that fell into disrepair under the ownership of a family linked to a sprawling fraud scheme, will be purchased by the Philadelphia Housing Authority (PHA), under a deal approved by a judge Monday.

Philadelphia Common Pleas Court Judge Anne Marie Coyle reluctantly authorized the $24 million sale, which will clear the way for PHA to preserve 360 units of affordable housing while enabling lender New World Commercial Credit to cut its losses. The bank had signed off on a $36 million loan, secured by the property, to a company linked to the Puretz family, whose members have been prosecuted for theft of utility payments and conspiracy to commit mortgage fraud.

“The bank chose to deal with Brith Sholom,” Coyle said. “Sometimes those business decisions result in losses.”

» READ MORE: Empire of Neglect: An N.J. family cashed in while Philly seniors lived in hazardous conditions

The dozen or so residents who have made the journey to City Hall for court hearings, meetings with City Council members, and protests against years of city inaction to address critical safety issues at the property applauded and thanked Coyle as she left the courtroom.

“I feel the stress has been lifted,” said Gail Peddle, 73, a resident who uses a walker and said she’d been unsure if she’d be able to come Monday morning, since the elevator works only intermittently. Residents have complained of leaks, mold, failing hot water heaters, squatters, and innumerable other hazards and annoyances.

An Inquirer investigation in July documented how the Puretzes’ empire of neglect left tens of thousands of poor, elderly, and disabled tenants in dangerous conditions while they stripped the equity from more than 100 affordable housing complexes nationwide.

Aron Puretz and his son Eli have pleaded guilty to conspiracy to mortgage fraud in federal court in New Jersey in connection with the dealings of their company, Apex Equity Group, while Aron’s brother Chaikel is facing charges related to theft of residents’ utility payments in Indiana.

The receivers for Brith Sholom and a neighboring complex that was also owned by the Puretzes alleged similar thefts here, contributing to $1.5 million in utility arrears at Brith Sholom. No criminal charges have been filed here, though, and Coyle lamented that part of that debt would be written off at ratepayers’ expense.

At a PHA board meeting last week, chief executive Kelvin Jeremiah described the purchase as “an incredible acquisition” made possible with state and federal financial support. The cost, $67,000 per unit not including renovations, was below what PHA typically has to pay.

“This is a deal,” he said.

To the tenants, who worked with the Public Interest Law Center and the volunteer-run coalition Renters Justice, it was “victory,” said Marguerite Byrd, 78.

“I just want senior citizens to understand you’re more important than you believe …,” she said. “You still got the power. But you have to come together and let people know you still have fight in you. I might be older in number, but I still got fight in me.”