Jefferson County lawsuit involving taxpayer-funded apartment complexes remains sealed | Regional

Tenants of Hunter’s Ridge apartments in Hillsboro on Feb. 25, 2022, say the complex needs repairs and icebreaking. (After shipment)

HILLSBORO — A lawsuit has been sealed here over the attempted sale of five subsidized apartment complexes with more than $18 million in low-income housing tax credits.

Teresa Pupillo, an attorney representing buyer Wilshire LLC, of ​​Fenton, argued in court records that disclosing their complaints would be harmful because they involve a “special sales contract” with “confidential and sensitive business information”.

On November 29, Jefferson County Circuit Judge Darrell Missey allowed the petition to be sealed, closing specific details of the allegations from public view. Missey was later tapped to head the children’s division of the Missouri Department of Social Services and is no longer overseeing the case. Judge Brenda Stacey last week denied a post-shipment request to unseal the petition.

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Patrick Werner and Forrest Nye, along with several limited partnerships, are listed as defendants in the lawsuit.

“It’s a bunch of lies,” Nye, 77, said Friday from his Nye Management office in Doe Run.

He declined to say more, other than that a potential countersuit was in the works. Attorney Mark Bishop, representing Nye and Werner, could not be reached.

Although details are limited on the allegations, their official responses to the lawsuit can be seen in court records. The allegations include breach of contract, negligent misrepresentation and fraudulent misrepresentation. Records indicate that Stephen Voyles, on behalf of Wilshire, negotiated with Nye and Werner to purchase several apartment complexes. These agreements seem to have encountered a notable problem.

Hunter's Ridge

With no on-site management on Friday, February 25, 2022, a Bible lies on a pile of maintenance forms in the laundry room at Hunter’s Ridge Apartments, Hillsboro. (After shipment)

The properties in question are Woodcrest Village, in De Soto, Hunter’s Ridge, in Hillsboro, Wildwood Apartments, in Arnold, Windcrest Village, in Ste. Geneviève, and Oak Knoll, in Festus. According to the Missouri Housing Development Commission, about 200 of the units are supported by $18.4 million in state and federal low-income housing tax credits. Tax credits are given to developers as incentives to build or renovate affordable housing.

Nye and his company, Nye Management LC, are listed as a general partner for tax credits, according to the Missouri Housing Development Commission, which oversees and awards projects funded by federal and state tax credits. Robert Muchow and Capital Partners Series XIV, XI and XII – not named in the lawsuit – are listed as the sponsors for most of the tax credits, with Doe Run Partnership LLC and Nye having the rest.

On Friday, no officials were present at any of the five properties, according to spot checks by a reporter. A message left for a manager was not returned. Residents of all properties said management was slow to respond, if at all.

All parking lots except one were covered in ice. Residents of Woodcrest Village in De Soto said their parking lot was partially cleared by a family member who feared for the safety of a loved one.

Woodland Ridge Village

Shirley Ellis (left), Lisa Puckett (center), Cindy Houston (right) and other tenants of Woodcrest Village Apartments on Friday, February 25, 2022, say management abandoned the resort months ago. “They’re lying to you if they answer,” Ellis, 70, says of the phone calls. (After shipment)

“We haven’t had a manager for a long time. The interview isn’t done,” said Patricia Newburger, 74, who had a sign on her front door reading “Welcome to Grandma’s.”

She said her stove won’t hold temperature, burns everything. Several other tenants came to express their concerns. One said a ceiling light was filling with water after heavy rain. Another, Lisa Puckett, among a group of three women, said she turned off the water to one of her toilets about a year ago because it was otherwise dripping on the floor.

“We have nice places,” said Puckett, 53, a school bus driver who pays $366 a month in rent. “They just don’t fix them.”

They said management is not on site, but their rent checks are cashed monthly. They wondered about the possibility of suspending the rent, but worried about the legal implications.

But Ashley Dennis, 35, didn’t care.

Village of the Crest of the Winds

Ashley Dennis, 35, a tenant of Windcrest Village in Ste. Geneviève removes the ice from the steps on Friday, February 25, 2022. Fed up with management, she says she is late paying her rent because her apartment has mold and other damage. (After shipment)

She said she stopped paying her $435 rent at Windcrest Village in Ste. Genevieve months ago. She shares the three-bedroom apartment with her husband and three children. She said a washing machine on the floor above her had overflowed. She showed pictures of what looked like black mold in her apartment. She said she lost a lot of food when her refrigerator broke down. When he left, she said she bought a new refrigerator herself for $1,200.

“I’m looking to move because you can’t do anything here,” she said.

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