Center City Apts. debate goes to court
Published: December 31, 2009
Font size: [A] [A] [A]
e-mail this
share thisSHAMOKIN - The two sides involved in the Center City Apartments debate met for the first time in Northumberland County Court Monday.
The Housing Authority of City of Shamokin and Red Gold Enterprises were in front of Judge Charles Saylor on an emergency motion for the appointment of a "receiver," the latest dispute between the two entities in the rent payments argument.
Saylor then gave an order based on an agreement the two sides made during the proceedings. According to the agreement, both parties will continue to receive rent payments and share the information with the other party until a hearing is held.
"Tenants are permitted to pay rent to either party during this time period," the order reads. "Both parties will promptly provide to the other the amount paid, the tenant name and unit number for all rents received."
A footnote on that section states that no tenant can be evicted for choosing to pay rent to a certain party.
"However, if a tenant fails to pay rent to either party, eviction will be permitted," the order reads.
The order affirmed the agreements reached during a hearing on Aug. 31 when the two sides met on eviction hearings before Magisterial District Judge John Gembic III of Shamokin.
Red Gold had sought to evict three tenants while the Housing Authority filed for one. Gembic threw out three of the four cases, saying someone couldn't be evicted as long as they were paying rent to one party of the other.
The rest of the order dealt with insurance, and Red Gold was ordered to provide written proof of insurance to the authority within five days.
The order also stays the appeals that Red Gold Enterprises made from the magistrate's court on the eviction hearings, pending the outcome of the authority's suit.
Ronald Miller, Shamokin Housing Authority executive director, would not comment Thursday as to why the hearing was needed. It was his agency that filed the emergency motion for appointment of a receiver in the case.
Also at issue is a million-dollar mortgage note that Red Gold took out with the Pennsylvania Housing Finance Agency (PHFA) in December 1988. On Sept, 22, 2000, PHFA filed a foreclosure action against Red Gold in the County Court of Common Pleas.
In its lawsuit against the housing authority, Picarella said that, on July 6, 2004, the court dismissed the action with prejudice due to PHFA failing to pursue its claim against the plaintiff.
In April, PHFA transferred the mortgage to the Shamokin Housing Authority, which said that until payment is made, all rents should be made to the housing authority.
Red Gold has argued that due to the 2004 ruling, the mortgages are invalid and cannot be pursued again.
The two sides will meet again before Saylor on Wednesday, Jan. 13, when arguments for both sides will be heard on the motions for summary judgment that both have filed, and on Red Gold's motion seeking relief from judgment.
Be the first to comment on this article!