The bankrupt property owner trying to sell Governors Square apartments in Harrisburg has complained in the past that the city of Harrisburg is thwarting its sales effort, and it’s now asking a bankruptcy judge to intervene.
In a court filing last week, Maryland-based Uptown Partners LP asked a judge to order the city to “cease and desist from interfering” in the sale of the apartment complex.
Uptown has been seeking approval of a sale since January after an auction produced a bid of more than $9.6 million from New Jersey-based ANCDI Properties. Two other buyers also made bids, and another company, CIG Group, recently expressed interest.
A sale would allow Uptown Partners to clear its debts. But numerous obstacles have emerged, including opposition from the city, the filing claims. City officials have questioned whether the potential buyers have adequate experience with affordable housing.
Uptown Partners argues the city would prefer the apartments go to another buyer, Ohio-based affordable-housing developer Woda Cooper. But Woda Cooper has not committed to buying Governors Square and “has offered a proposal which is illusory at best,” Uptown Partners alleged in its filing before U.S. Bankruptcy Court for the Middle District of Pennsylvania.
Uptown also is asking the court to stop the city from issuing citations for code violations at Governors Square, arguing that citations should be automatically stayed during bankruptcy and that they have a “chilling effect on potential buyers.”
It is the continuing citations that prompted the latest filing, said Bob Chernicoff, the attorney representing Uptown Partners.
A hearing on the request is scheduled for Oct. 29.
Efforts to reach Woda Cooper were not successful. An attorney for the city was not able to comment by press time.
The background: Uptown Partners filed for bankruptcy in May 2023 amid an avalanche of citations for code violations at Governors Square, a 222-unit affordable-housing complex that is half vacant.
Repairs have been estimated to cost about $22 million.
In the meantime, court documents describe a complex falling deeper into disrepair.
