Nemont Manor Comes Under New Ownership, Closes Food Services

Nemont Manor was recently sold by its former board of directors to Affiliated Developers Inc., a 501(c)3 based in Berkley, Mich. Over the summer, concerns were raised publicly about the acquisition in an open letter by James Rickley that some of the residents were informed they may not meet the income requirements to remain at Nemont Manor.

The Courier reached out to Laurie Smith, who works for Tamarack Properties in Billings, which manages the property for Affiliated Developers Inc., to discuss the issues at the affordable housing unit. According to Smith in an email response to questions, Affiliated Developers Inc. is a 501(c)3 specialized in the preservation and development of affordable housing.

Smith stated in her response that the company was able to place a significant earnest money payment with a balloon payment over the next few years. In order to pay that payment, the company is attempting to secure financing through Housing and Urban Development HUD 221d(4), which carries no income requirements; HUD Home grants, which requires the ratio of residents to be 80 percent at area median income or below; low income housing tax credits, which require no more than 60 percent at area median income; and project-based Section 8 contracts, which is 50 percent area median income or below. According to Smith, the regulations require them to use the most restrictive regulation, but in this case the grant requirement is waived, meaning the home must adhere to a 60 percent area median income and below. According to the HUD website, the area median income for a family of two or a single person is around $29,000 a year.

According to Smith, no residents have been informed they must relocate. In her email response she stated, “While we have started the qualification process, no one has been told, at this time, that they must leave due to not meeting the requirements specified by the funding sources. We have conducted a resident meeting, which was held in August of this year, and a notice was issued to the residents. The residents that have moved out have done so at their own discretion.”

Smith also pointed out that residents will not be “evicted” in the strict sense of the word because they are being relocated due to an issue that is not their fault, and she clarified that it will not be reflected on the resident’s rental history.

A separate issue at Nemont Manor is the recent closure of the food program that is set to take effect in the coming months. According to Smith, HUD requires all food programs to be self-sufficient and they specifically bar the subsidization of the food program through the housing operations of Nemont Manor. Because the food program was losing over $50,000 a year, Affiliated Developers was forced to close the program.

Still many residents and citizens in Glasgow fear that the food program's closure could negatively impact the health of some of the residents. That concern sparked Mayor Erickson to volunteer to serve food to help keep the program going as long as possible. Alternative food programs have been discussed and the mayor is looking into options for the Manor.

Smith was clear to point out that that the intent of purchasing Nemont Manor was to restore the project for future use.

In her email response she stated, “If owners/developers, such as Affiliated Developers, were not interested in preserving these older projects they would just go by the wayside. Many properties like Nemont Manor have high-maintenance, high-cost, aging mechanical systems and as they and the buildings continue to age, the cost to repair or replace can become unaffordable to maintain; however, the funding sources that owners/developers apply for to rehabilitate the property will help preserve the projects for many years.”