Opposing viewpoints emerge regarding Patriot Village
Conflicting accounts have emerged from the current owner of The Bellamy on Sixth (formerly Patriot Village) and the former property manager of Patriot Village. Previously, it was reported the apartment complex was developed to provide residency to eligible homeless and disabled veterans was purchased, this summer, by Investwell Properties based in St. Petersburg, Florida, but with an office in Winston-Salem.
Former and current residents have raised concerns regarding the transition of ownership. Since Investwell’s acquirement of the property, there are veterans who haven’t had their leases renewed. Some say they couldn’t afford the increased rent and their vouchers will only cover a certain amount. One veteran, who is still a resident, said the validity of his lease has been questioned.
Since the publication of the article “Veterans question rent hikes and evictions at former Patriot Village,” Davidson Local was contacted by Jonathan Staton, part owner of Investwell Properties, and has reached out to Haven Redevelopment Group (HRG). The latter is the previous owner of the building.
In 2012, HRG (known as Lexington Housing Redevelopment Corporation at that time) was awarded $500,000 in funding from the North Carolina Housing Finance Agency (NCHFA) Board of Directors for its Davidson County Veterans Center project. They also received $1 million in affordable housing grants from the Federal Home Loan Bank of Atlanta. Funds were to be split equally between the veterans’ project and the rehabilitation of several public housing units in Lexington.
The complex went into foreclosure earlier this year. To understand how this happened, Davidson Local reached out to the NCHFA requesting additional documents pertaining to Patriot Village. NCHFA has previously offered March and June 2021 as the months in which they learned of the foreclosure and said they’re not sure how Patriot Village arrived at this point. Agency personnel stated they’ve received no requests to change the apartment buildings from their original intention: veteran housing. Additionally, NCHFA shared they’ve requested the completed ownership form from HRG but they’ve refused to provide the documentation.
Reached by phone, Davidson Local spoke with a woman who only identified herself as Ms. Jackson, a contractor for HRG. She was the property manager of Patriot Village. Jackson placed blame for the foreclosure on a current, common foe of many organizations and businesses.
“COVID. A lot of landlords suffered through that. You have a moratorium and you have renters who were already low income. Prior to that, we had a lot of issues with the bank not understanding and not being available to us to the get the funding taken care of. We were under the impression the bank was going to work with us. ‘Hey, it’s COVID. Can you give us a break?’ There was no break there for us. We didn’t fold but we had to give up Patriot Village and that was really the heartbeat of the organization.”
Jackson noted the campus was much more than simply a place for veterans to lay their heads.
“We were changing the lives of veterans who served our country. They come back and don’t have anywhere to stay and we wanted, by any means necessary, within the law, to give them a good, safe, affordable place to live with decent housing. A lot of agencies and people got involved [churches, furniture stores, citizens, American Legion posts] in this wonderful project. It was a community. The veterans were so proud. They were left there thinking they had some form of hope to stay but the new owner comes in and says, ‘No, I don’t want to help you in any way.’ He’s an investor from Florida who came in with dollars in mind as opposed to people.”
Staton has a contrasting viewpoint. He purchased the former Patriot Village at an auction. The new owner disclosed he has no recollection of the previous owner and that the complex was under rented, which is why Haven Redevelopment Group went into foreclosure. “They had 40 to 50 percent vacancies.” He also stated he learned about the complex’s previous intended use when he read an article about Patriot Village in Davidson Local.
Jackson disputes these claims. She said before Patriot Village was sold, they had a waiting list. She also expressed Staton was aware of the building’s intended use to house veterans, because Robin Brady, Investwell’s primary contact for residents, visited the site multiple times before they purchased it. When Davidson Local shared Staton’s declarations about being unaware, Jackson refuted, “That’s a lie. They knew as early as March, April. You don’t put that amount of money into something without investigating it. I know, firsthand, that he came on site. They bought the place as-is.”
Defending his company, Staton explained, “All we knew is a couple of veterans lived there.” He shared they recently helped relocate a veteran who had gotten behind on his rent instead of letting him end up in a homeless shelter. He noted that Robin Brady, who has been the primary contact for residents, has been “phenomenal with helping either relocate or work with the tenants we have.”
According to Staton, many of the residents have “leases that weren’t even binding” since you can’t execute a residential lease beyond twelve months. In the North Carolina Real Estate Commission’s “Questions and Answers on Renting Residential Real Estate” brochure, it’s stated in the first paragraph that “the terms in the lease generally aren’t dictated by law.” Some tenants of residences that enter foreclosure have “the option to stay until the end of the lease” due to a federal law passed in 2009. Additionally, the pamphlet confirms “unless the lease states otherwise,” rent can’t be raised. Davidson Local has reached out to Staton for additional comments regarding these findings.
In the cases of those who’ve served this country, the owner of The Bellamy on the Sixth is placing blame on Veterans Affairs and the housing authority.
“The VA wasn’t being helpful with finding suitable housing for our veterans we had there. The housing authority wouldn’t work with us to increase their vouchers. Brady handles the management and has been a godsend working with every single tenant.”
Since Investwell has taken over ownership, Staton noted they’ve spent thousands in renovations and have increased rent very little on tenants who’ve decided to remain at the Bellamy. He explained HRG hasn’t provided them with any documentation. When asked if he expects Investwell to encounter any ramifications since Patriot Village was developed using NCHFA funds and federal housing grants, Staton said he believes he has “no legal obligations.”
Davidson Local has contacted HRG by way of Jackson, regarding the foreclosure and potential financial responsibilities associated with Patriot Village. At the time of publication, there has not been a response from an HRG representative.
However, Jackson did have something she wanted the public to know.
“We didn’t walk out on the vets or anybody. We just wanted to help. It was a beautiful initiative.”
This is a developing story. Stay tuned to Davidson Local for more information.
