NEW ORLEANS (AP) — New Orleans is paying to relocate all residents of a bankrupt apartment complex where people said the landlord’s negligence forced them to live in unsanitary conditions with mold, rodents and a broken pipe that spewed water. residuals.
The unusual decision began last week and is expected to take about two weeks to implement. Once all residents of Oakmont Apartments are gone, the 336-unit complex will be emptied and cordoned off until the safety and security violations are resolved, Mayor LaToya Cantrell said.
“Conditions at the Oakmont Apartments have become unsafe and unhealthy for residents due to the landlord’s negligence and lack of concern for their tenants,” Cantrell said last week. “It is imperative that we address this issue head-on and relocate tenants to safe alternative housing immediately.”
The city council said it plans to put tenants in hotels for up to three months while “housing navigators” search for affordable apartments, The Times-Picayune/The New Orleans Advocate newspaper reported. The New Orleans Housing Authority and the nonprofit Unity of Greater New Orleans are among those involved.
Oakmont is the largest of five New Orleans apartment complexes that owner Joshua Bruno placed under government bankruptcy protection in January to avoid foreclosure. Bruno has not commented on the city’s decision.
Bruno says he has spent millions of dollars fixing up rundown properties, only to see conditions worsen with the coronavirus pandemic and damage from Hurricane Ida on August 29. He also blamed mortgage company Fannie Mae for delaying insurance payments in the midst of a foreclosure lawsuit.
Fannie Mae has argued that Bruno cannot be trusted to run Oakmont. While residents live in misery, he has transferred millions of dollars from Oakmont and other properties over the past year to various entities he controls, the lender alleges. Some residents and activists have asked federal bankruptcy judge Meredith Grabill to take control away from Bruno and appoint a trustee to manage them. A hearing will be held on May 23.
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