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N.J. bidder being reviewed for ownership of troubled Carnegie Towers
Thursday, July 02, 2009

There is another prospective buyer for Carnegie Towers.

Borough officials confirmed last week that Jacob Iskowitz, of Trenton, N.J. -- the second highest bidder for the federally subsidized apartment complex on Capitol Drive -- is undergoing the federal Department of Housing and Urban Development's review process.

Diana Gray, director of HUD's Pittsburgh Multifamily Housing Center, said Tuesday that the review on Mr. Iskowitz has not been completed yet.




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In March, when the nearly 40-year-old building went up for foreclosure sale, Mr. Iskowitz bid $700,200 -- $100 less than the bid from Pittsburgh businessman Vikas Jain.

But HUD offered it recently to Mr. Iskowitz, after determining that Mr. Jain is ineligible to buy the 10-story, 176-unit building.

Carnegie Associates of Maryland, which has owned Carnegie Towers since it was built in 1972, had defaulted on mortgage payments.

In its bid documents, HUD placed numerous restrictions on prospective bidders. Among them are that bidders demonstrate experience in managing subsidized multifamily properties and that any similar properties they own are in compliance with local housing laws, regulations, ordinances and codes.

Ms. Gray said Mr. Iskowitz has a good track record with HUD.

The documents also specify that the successful bidder must continue Section 8 housing assistance for another 20 years and make more than $5 million in repairs within 24 months. Within 21 days of taking possession of the building, the new owner must provide round-the-clock armed and radio-equipped guards.

Mr. Iskowitz already has been in contact with the borough about security issues.

Still, news of the impending sale put Councilman Pat Catena on high alert.

He is especially concerned about code violations, particularly asbestos and fire alarm system problems; he plans to talk to building inspector Terry Roma about them. He also wants the Allegheny County Health Department and fire marshal to tour the building.

"As a borough we have to do our due diligence to make sure that building is safe before we sign off on any occupancy permits," he said.

"[The residents] deserve a safe place to live."

At the same time, he recognizes that a change in ownership offers a chance to remedy problem situations. Crime is a major issue, especially in light of the April drug raid that took place at the Towers and resulted in eviction of approximately 30 people.

The raid was organized through the county district attorney's Drug Enforcement Team. Now, the district attorney's office has distributed 50 affidavit forms for residents to fill out about criminal activity and security problems they observe at the building. The affidavits must be signed in the presence of a borough police officer, who will come to residents' homes.

"People need to take advantage of this because we're not going to get another opportunity like this for 20 years." Mr. Catena said.

Freelance writer Carole Gilbert Brown can be reached in care of suburbanliving@post-gazette.com.
First published on July 2, 2009 at 12:00 am
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