T
he Philadelphia Housing Authority (PHA) has taken action to address the aftermath of a mortgage scandal involving the Puretz family, which severely impacted the Brith Sholom House complex in the city's Wynnefield neighborhood. The PHA has agreed to purchase the 360-unit senior housing complex at 3939 Conshohocken Avenue for $24 million, as reported by PhillyVoice. This acquisition marks a rare instance of a city housing agency directly acquiring a multifamility property.

    The PHA plans to repair the dilapidated building and maintain its affordability for residents. Issues at the complex include broken elevators, leaky ceilings, malfunctioning heating and cooling systems, sanitation problems, mold, pests, and security concerns. The proceeds from the sale will be used to settle disputes with utility companies.

    This development brings hope to the tenants at the facility, who have faced numerous challenges in recent years. In addition to 275 code violations at the property, a scam run by the Puretz family resulted in the theft of $1 million in resident utility payments, while squatters began terrorizing residents. The Puretz family defaulted on its $36 million loan for the property, which was one of many defaults for them.

    The senior housing complex was constructed in the 1960s and was sold to a corporate landlord with ties to the Puretz family in 2012. Following the owner's bankruptcy filing last August, the property was placed into receivership, managed by Stockton Real Estate Advisor. Mortgage holder New World Commercial Credit served as the seller.

    The scheme exposed by the Puretz family involved exploiting loopholes in commercial lending to strip equity from affordable housing complexes across the nation, affecting thousands of complexes and over 100 in Pennsylvania alone. Aron Puretz and his son Eli have both pleaded guilty to mortgage fraud in federal court, while Aron's brother Chaikel has been charged with stealing utility payments from tenants in Indiana.