Real Estate:
Five Questions With Sean O'Leary
By Chris Barrett
Providence Business News Staff Writer
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PHOTO COURTESY FERLAND CORP.
"DAMAGE TO certain apartment buildings in the Cranston, Warwick and West Warwick areas was devastating," Sean O'Leary, president of the Rhode Island Apartment Association, said about the March flooding in Rhode Island.
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Sean O'Leary is president of the Rhode Island Apartment Association and vice president of development at Pawtucket-based Ferland Corp., which manages more than 3,000 apartments in Rhode Island. O'Leary recently took some time to speak with Providence Business News about the apartment market and his plans as president of the association, which has approximately 70 members that manage or own about 17,000 apartment units in Rhode Island.
PBN: The Center for Housing Policy recently released its annual report, which said renting an apartment was out of reach for many in Rhode Island. What are your thoughts on the report?
O'LEARY: The figures contained in the report, which are certainly cause for concern, appear to be part of broader economic issues. Specifically, owners of many apartment homes have witnessed an exodus of tenants who can no longer afford to make rent payments due to job loss or reduction in compensation. To combat the alarming prospect of vacant units, some owners have reduced rental rents.
Unfortunately, many owners of Rhode Island apartment homes cannot afford to reduce rents, lest they fail to meet increasing expenses. The most notable of these expenses is the property tax on multi-family-residences, which continue to be taxed at a disproportionately higher rate than single-family homes. We would like to see a more balanced housing policy which accounts for the importance of apartment homes in the community-development toolbox.
PBN: Can you tell us a little about how the March floods affected apartment owners and their residents?
O'LEARY:There was a very direct correlation between the impact felt by apartment owners/residents and the location of the apartment buildings. For example, the damage to certain apartment buildings in the Cranston, Warwick and West Warwick areas was devastating.
By contrast, buildings located on higher ground and/or far from the cresting rivers reported comparatively little damage. Overall, however, the apartment industry sustained heavy losses, including thousands of displaced individuals and families, irreparably damaged property and personal items, and extraordinary financial costs. In any event, the call to help all affected persons and companies was both impressive and heartening.
PBN: The flooding came during an already difficult economy. What has been the impact of the economy on apartments in Rhode Island?
O'LEARY: As mentioned, many apartment owners are experiencing greater challenges in maintaining profitability. Still other apartment owners, who would like to upgrade their units and buildings, find that the requisite financing to undertake the desired capital projects is unavailable.
These apartment owners, left in some cases with a relatively dated product, are losing residents to many newer properties, including converted condominiums and lofts, constructed during the recent housing bubble. The ultimate fallout of this development over-saturation still remains to be seen. One prevailing constant in the apartment industry over the past 20 months seems to be an unusually high tenant-turnover.
PBN: What has been the response from apartment owners?
O'LEARY: Like any challenging time, this sluggish economy has provided an opportunity for - and in several instances, compelled - apartment owners to reinvent the way that they do business. The result has been, in our opinion, elevated standards in rental communities. In addition, many owners have instituted special programs or deals to attract residents.
One of the great benefits of the relative smallness of Rhode Island is that many owners/managers of apartments are mutually acquainted - in several cases through their membership in the Rhode Island Apartment Association. Accordingly, the association has been able to draw upon experiences of all of its members statewide to attempt to report back on what is working (or what is not working) for some owners/managers.
PBN: Can you tell us about any goals or initiatives you have planned for your term as president?
O'LEARY: Generally, our current Board of Directors would like to ensure that all Rhode Islanders with an interest in the apartment industry are aware of the many benefits of the Rhode Island Apartment Association. In particular, we are very much interested in raising the educational profile of the association among the public consciousness. To this end, we have many seminars and trainings planned over the next several months. Some topics include preventative maintenance, procurement of general-liability insurance, lead-safe work practices, property-tax abatement and leasing.
The Rhode Island Apartment Association also endeavors to provide the forum in which many industry professionals - including multi-family-complex owners, vendors, suppliers, management companies and independent rental owners - come together to benefit their businesses. A good example of this networking is our July trade show for vendors and suppliers.
Lastly, we would like to take advantage of our affiliation with the National Apartment Association (located in Washington, D.C.) in helping Rhode Island to emerge as quickly as possible from our current housing situation.
Homes available in Providence for disabled veterans
Monday, August 3, 2009
Operation Stand Down celebrated the official opening of its newest residential complex for disabled veterans last Monday at 20 Bissell St. in Providence. Along with Sen. Jack Reed and Providence Mayor David N. Cicilline, Rhode Island Housing, the U.S. Department of Housing and Urban Development, the Housing Resources Commission and the state Department of Mental Health, Retardation and Hospitals, Operation Stand Down will soon welcome 10 local veterans and their families to their new houses.
Reed, a former Army captain who serves on the U.S. Senate Appropriations Committee, helped boost federal funding for the HUD 811 program, which finances the construction of new houses for people with disabilities. "This effort is about providing veterans with a helping hand, homes for their families, and the promise of a brighter future," Reed said.
The rehabbed Bissell Street complex consists of six one-bedroom apartments, two two-bedroom apartments and two three-bedroom apartments. Each apartment has refinished wood floors, new kitchens, bathrooms and energy-efficient windows, and those on the first floor are handicapped accessible.
They will be available to disabled veterans earning up to 50 percent of the area's median income, or $36,600 a year for a family of four. A HUD Project Rental Assistance Contract will pay the difference between the rents charged and actual operating costs. The disabled vets will be connected to vital supportive services and transportation.
Rhode Island Housing acquired the decades-old apartment building and placed it in the agency's Land Bank, enabling Operation Stand Down to assemble the financing needed to rehabilitate the property. It was then sold to Operation Stand Down, which began an extensive rehabilitation of the building. Financing sources included $1,500,800 in HUD 811 funds, $500,000 from the state Housing Resources Commission's Building Homes Rhode Island program, and $664,588 in Thresholds Funds provided by Rhode Island Housing and the state Department of Mental Health, Retardation and Hospitals.
The energy-efficient renovations completed at 20 Bissell St. greatly improve the appearance of the once-deteriorating building and remove a long-standing neighborhood eyesore to the benefit of the community.
Rhode Island Housing provides low-interest loans, grants, education, advocacy and consumer counseling to help its customers rent, buy and retain their houses. Call Rhode Island Housing at (401) 457-1234 or visit their Web site at www.rhodeislandhousing.org.
For more information about Operation Stand Down RI, visit it online at http://osdri.com/ or call (800) 861-VETS or (401) 383-4730; send e-mail to osdri@osd.necoxmail.com.
Posted Feb 5, 2009
Development
Five Questions With: Sean T. O'Leary
By Kevin Shalvey
PBN Staff Writer
Ferland Corporation, a northern Rhode Island housing development and management company, has since December been making an effort to bring Rhode Islanders displaced by foreclosure to their properties. Vice President of Development Sean T. O'Leary took a few minutes recently to talk with Providence Business News about the program.
PBN: Let's start with your new program - what is it and what are the goals?
O'LEARY: Ferland's Foreclosure Displacement Assistance Program offers individuals or families displaced from their homes due to mortgage foreclosure [assistance]. It includes immediate occupancy of an apartment, subject to availability, application and program policy and procedures; a waiver of the first month's rent; discounted security deposit; and waiver of the application fee.
The goal of the program is to provide immediate financial assistance to past, current and future victims of mortgage foreclosures. Given Ferland's housing expertise, we view this program as the best way we can pitch in to help reverse the downturn of the local economy.
PBN: How many renters have so far moved into an apartment under the program?
O'LEARY: Thus far, we have placed eight people in Ferland-owned apartments through the program.
Because of the success of the program over the past several months, Ferland Corp. has decided to extend the program until June 30.
PBN: Could you give me some background on Ferland?
O'LEARY: Ferland Corp. was incorporated in 1945. We currently own or manage about 3,000 apartments in the Rhode Island area. We have about 30 property sites, with a particular concentration in Cranston, East Providence, Pawtucket, Providence, Warwick and Woonsocket.
PBN: Why would a company like Ferland want to start a "foreclosure-crisis" program like this?
O'LEARY: Current circumstances and conditions relative to the domestic housing market have adversely affected both homeowners and tenants in and around Rhode Island. Specifically, many lenders have commenced actions to foreclose the mortgages on many local properties.
As a result, great numbers of southern New Englanders have been displaced from their respective residences. Upon displacement, many of these individuals and families encounter a complex and confusing dilemma: no immediate shelter and limited financial resources, a discouraging credit history and few prior references.
As a long-time leader in affordable housing in Rhode Island and beyond, Ferland Corp. is uniquely positioned to help these displaced people.
PBN: Has Ferland suffered at all from the recession in Rhode Island?
O'LEARY: Like seemingly all companies and individuals in and around Rhode Island, our business has felt its share of the economic downturn. Having weathered over six decades of economic peaks and valleys, however, we remain strongly committed to providing housing through this difficult period.
| Ferland Program Helps Local Foreclosure Victims Find a New Home |
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By JON BAKER
PAWTUCKET -- Lisa Johnson doesn't mind having to work a 13-hour shift as a dietary cook at Harris Health Center in Central Falls on Christmas Day.
Johnson, 42, knows when she arrives home tonight, at least she has a place to call such.
"Hey, I'm getting double-time pay, so that's big," Johnson said with a grin, while sitting at the kitchen table in her new abode at Lawn Terrace Apartments, located at 360 Mineral Spring Ave. Then, in a reflective tone, she said, "I know my family will be here waiting for me."
Johnson, who lives here with her daughter, Brendella, and 4-year-old grandson Ja-Khoury, is mighty thankful during this holiday season, and it stems from the Smithfield-based Ferland Corp.'s Foreclosure Displacement Assistance Program, one that provides immediate relief and financial assistance to individuals and families displaced from their homes due to mortgage foreclosures in Pawtucket and Woonsocket.
Community partners supporting the program include Rhode Island Housing, the Blackstone Valley Community Action Program and the United Way.
"This was Ferland Corporation's idea, and we started it back in August when the economy started to plummet," said Sean O'Leary, Ferland's vice president of development. "It was at that time we started to see many area residents displaced from their homes due to mortgage foreclosures, so we started talking about what we could do.
"At this point, we've helped seven residents with this program, helped get them back on their feet and ride out this current economic storm," he added. "It's very heartening from our standpoint, seeing what this program can do to aid others, especially during the holidays. It's a dire economic climate, but people are taking advantage of this program, and that excites us as a company."
***
How Johnson happened upon the program is both incredible and touching. It all started when her husband died on Jan. 7, 2004, at the age of 38.
"I just came home from work one day and found Bruce dead, and nobody could tell me anything as to how he died," she said sadly. "I think he had a heart attack, but I still don't know. Then again, he had just had a kidney removed, so maybe that had something to do with it."
At the time, the family lived together in a house at 459 Power Road, and times were OK beforehand. Amazingly, the day after her husband's death, a pipe broke in the same upstairs bedroom in which Bruce perished.
"There was $75,000 worth of damage; you know, it's funny, I only paid $140,000 for the home," she stated. "I had lost my husband, and then my home for a time. We had to go live with my mom for about seven months. I started thinking, ‘What's next? What is God going to give me to handle now?'"
The answer came soon after. Then working three jobs to make ends meet and pay for the family's food and bills, she lost one of them, that as a part-time supervisor at a Providence fast-food eatery.
"I became depressed, which didn't help my health," she noted. "I later began suffering from congestive heart failure. I think it was my fault, because I wasn't taking my medication for hypertension of the heart. I was out of work for six months, and I fell behind financially.
"There were times I couldn't pay the electric or gas bills," she added. "In the summer of 2005, I hired a legal services officer to try to help me save my house, and that lasted almost three years. I tried to make it work, but I just decided to give up. I couldn't take going to court all the time, so we went to Bankruptcy Court, and I told the judge, ‘You can have the house. This is killing me.'"
***
Before she and her family moved out, she started pondering how much she liked living at North Bend Apartments in Pawtucket, another Ferland Corp.-owned complex.
"I was thinking about having free heat and hot water, so I decided to come here to Lawn Terrace Apartments back in August and check it out," she stated. "I asked (site manager) Irene Villella if I could fill out an application, and she asked me about my situation, so I told her. Irene told me about a new program called Foreclosure Displacement Assistance, and she told me I qualified.
"I was totally shocked," she added. "I knew there was a three-year waiting list for subsidized housing. I asked her how the program worked, and she said that rent was based on income of the particular person. She also told me that there would be no security deposit, the first month's rent was waived and that I wouldn't have to pay an application fee. I totally lucked into this, and I'm thrilled."
Johnson, who claimed she needed only one day to move into her new three-bedroom apartment, now pays $840 a month (including heat and hot water). There's plenty of room for little Ja-Khoury to play, and "Mom" and adult daughter Brendella spend quality time together.
"We are seeing hundreds of area residents who need immediate relief from the complex and confusing dilemma in which they find themselves - no immediate shelter, limited financial resources, discouraging credit standing and few prior references," O'Leary stated. "Our Foreclosure Displacement Assistance Program is Ferland's effort to offer these people some financial breathing room as they attempt to ride out this storm."
Beamed Johnson, who has two adult sons living nearby in the city with their families: "Right now, I'm doing wonderfully. I've been able to shop for gifts for my children and four grandchildren, and now I know they will have a ‘Merry Christmas.'
"The stress in my life is gone," she added. "I don't have to worry about the phone ringing, people asking me why I haven't paid this or that bill. I can shop now, which obviously I love doing, and I couldn't do that the last few years ... I may have to work on Christmas, but we have a new place to live. Now that's a terrific gift."
For more information on this program, area residents should call the "Displacement Hotline" at (401) 233-8900 (ext. 0).
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| A new home for the holidays |
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on 12-25-2008 01:07 
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Program brightens Christmas for family displaced by foreclosure
By JON BAKER
PAWTUCKET -- Lisa Johnson doesn't mind having to work a 13-hour shift as a dietary cook at Harris Health Center in Central Falls on Christmas Day.
Johnson, 42, knows when she arrives home tonight, at least she has a place to call such.
"Hey, I'm getting double-time pay, so that's big," Johnson said with a grin, while sitting at the kitchen table in her new abode at Lawn Terrace Apartments, located at 360 Mineral Spring Ave. Then, in a reflective tone, she said, "I know my family will be here waiting for me."
Johnson, who lives here with her daughter, Brendella, and 4-year-old grandson Ja-Khoury, is mighty thankful during this holiday season, and it stems from the Smithfield-based Ferland Corp.'s Foreclosure Displacement Assistance Program, one that provides immediate relief and financial assistance to individuals and families displaced from their homes due to mortgage foreclosures in Pawtucket and Woonsocket.
Community partners supporting the program include Rhode Island Housing, the Blackstone Valley Community Action Program and the United Way.
"This was Ferland Corporation's idea, and we started it back in August when the economy started to plummet," said Sean O'Leary, Ferland's vice president of development. "It was at that time we started to see many area residents displaced from their homes due to mortgage foreclosures, so we started talking about what we could do.
"At this point, we've helped seven residents with this program, helped get them back on their feet and ride out this current economic storm," he added. "It's very heartening from our standpoint, seeing what this program can do to aid others, especially during the holidays. It's a dire economic climate, but people are taking advantage of this program, and that excites us as a company."
***
How Johnson happened upon the program is both incredible and touching. It all started when her husband died on Jan. 7, 2004, at the age of 38.
"I just came home from work one day and found Bruce dead, and nobody could tell me anything as to how he died," she said sadly. "I think he had a heart attack, but I still don't know. Then again, he had just had a kidney removed, so maybe that had something to do with it."
At the time, the family lived together in a house at 459 Power Road, and times were OK beforehand. Amazingly, the day after her husband's death, a pipe broke in the same upstairs bedroom in which Bruce perished.
"There was $75,000 worth of damage; you know, it's funny, I only paid $140,000 for the home," she stated. "I had lost my husband, and then my home for a time. We had to go live with my mom for about seven months. I started thinking, ‘What's next? What is God going to give me to handle now?'"
The answer came soon after. Then working three jobs to make ends meet and pay for the family's food and bills, she lost one of them, that as a part-time supervisor at a Providence fast-food eatery.
"I became depressed, which didn't help my health," she noted. "I later began suffering from congestive heart failure. I think it was my fault, because I wasn't taking my medication for hypertension of the heart. I was out of work for six months, and I fell behind financially.
"There were times I couldn't pay the electric or gas bills," she added. "In the summer of 2005, I hired a legal services officer to try to help me save my house, and that lasted almost three years. I tried to make it work, but I just decided to give up. I couldn't take going to court all the time, so we went to Bankruptcy Court, and I told the judge, ‘You can have the house. This is killing me.'"
***
Before she and her family moved out, she started pondering how much she liked living at North Bend Apartments in Pawtucket, another Ferland Corp.-owned complex.
"I was thinking about having free heat and hot water, so I decided to come here to Lawn Terrace Apartments back in August and check it out," she stated. "I asked (site manager) Irene Villella if I could fill out an application, and she asked me about my situation, so I told her. Irene told me about a new program called Foreclosure Displacement Assistance, and she told me I qualified.
"I was totally shocked," she added. "I knew there was a three-year waiting list for subsidized housing. I asked her how the program worked, and she said that rent was based on income of the particular person. She also told me that there would be no security deposit, the first month's rent was waived and that I wouldn't have to pay an application fee. I totally lucked into this, and I'm thrilled."
Johnson, who claimed she needed only one day to move into her new three-bedroom apartment, now pays $840 a month (including heat and hot water). There's plenty of room for little Ja-Khoury to play, and "Mom" and adult daughter Brendella spend quality time together.
"We are seeing hundreds of area residents who need immediate relief from the complex and confusing dilemma in which they find themselves - no immediate shelter, limited financial resources, discouraging credit standing and few prior references," O'Leary stated. "Our Foreclosure Displacement Assistance Program is Ferland's effort to offer these people some financial breathing room as they attempt to ride out this storm."
Beamed Johnson, who has two adult sons living nearby in the city with their families: "Right now, I'm doing wonderfully. I've been able to shop for gifts for my children and four grandchildren, and now I know they will have a ‘Merry Christmas.'
"The stress in my life is gone," she added. "I don't have to worry about the phone ringing, people asking me why I haven't paid this or that bill. I can shop now, which obviously I love doing, and I couldn't do that the last few years ... I may have to work on Christmas, but we have a new place to live. Now that's a terrific gift."
For more information on this program, area residents should call the "Displacement Hotline" at (401) 233-8900 (ext. 0).
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Current circumstances and conditions relative to the domestic housing market have adversely affected both homeowners and tenants in and around the State of Rhode Island. Specifically, myriad lenders have commenced actions to foreclose the mortgages on many local properties.
As a result, great numbers of southern New Englanders - owners and tenants - have been displaced from their respective residences. Upon displacement from their residences, many of these individuals and families encounter a multi-layered conundrum - viz., they have no immediate shelter and limited financial resources, a discouraging credit history, and few prior references.
As a long-time leader in affordable housing in Rhode Island and beyond, Ferland Corp. is uniquely positioned to assist past, current and future victims of these mortgage foreclosures. Ferland's assistance in this regard includes the establishment of the Foreclosure Displacement Assistance Program.
As described more fully below, the Program - in effect through January 31, 2010 - offers immediate financial assistance to these displaced individuals and families in the form of
* immediate occupancy of an apartment, subject to availability;
* waiver of the first month's rent;
* discounted security deposit; and
* waiver of the application fee.
All applicants are subject to Ferland's rental qualifications.
FORECLOSURE DISPLACEMENT ASSISTANCE PROGRAM
A. Eligibility Requirements
An eligible applicant(s) to the Program is an individual(s) or family who/which (i) on or after May 1, 2008, was compelled to vacate his/her/its residence due to the verifiable foreclosure of the mortgage(s) on the property where his/her/its residence was located (the "Property"); (ii) complies with any and all other Ferland eligibility requirements.
B. Prospective Tenant Information Form
Prior to determining the eligibility of an applicant(s) for the Program, the applicant(s) shall complete a Prospective Tenant Information Form (the "Information Form"). A displaced individual and/or family may obtain the Information Form by contacting Ferland's "Displacement Hotline" - at 401.233.8900 (ext. 0).
C. Housing Application
After Ferland's review of the completed Information Form, Ferland will apprise the applicant(s) of his/her/its ability to participate in the housing application process, including without limitation, an application interview.
D. Approval and Benefits
If and only if Ferland approves the application of the applicant(s), the applicant(s) will be eligible for the following benefits of the Program: (i) immediate occupancy of an apartment unit agreed upon by the applicant(s) and Ferland, subject to availability, provided that the applicant(s) meets with the respective Site Manager of the property and completes the application process; (ii) waiver of any rental payment which would otherwise be due from the applicant(s) in consideration for the first month during which the applicant(s) would be a tenant in the apartment unit; (iii) a discount in any security deposit which would otherwise be due from the applicant(s) in connection with the apartment unit, depending on the rental qualifications of the applicant(s); and (iv) waiver of the application fee which would otherwise be due from the applicant(s); provided that the applicant(s) remains a tenant in the apartment unit for a duration of at least one year. The applicant(s)/tenant(s) otherwise remain(s) subject to any and all rules, regulations, plans, policies and/or procedures of Ferland in connection with the specific apartment unit and property.
E. Fair Housing Act
Any and all housing activities and practices of or by Ferland are in strict compliance with the Fair Housing Act, at 42 U.S.C. 3601, et seq.