Affordable Housing sells seven of its eight properties

September 12, 2006

By Pat Litowitz
New Castle News

A nonprofit housing group unloaded seven of its eight properties during a contentious public auction.

Affordable Housing of Lawrence County raised $56,200 during Saturday’s auction, which took place at the Shenango Township fire hall. More the 50 people attended, including 15 registered bidders.

“We are out of the rental property business,” said Deno DeLorenzo, Affordable Housing’s secretary and treasurer.

The funds raised represented less a fifth of the combined purchase price of the properties.

Affordable Housing, a spin-off agency created by the Lawrence County Housing Authority, purchased the seven structures in 2005 for $295,000.

An eighth building, a Dewey Avenue duplex bought in 2005 for $45,000, was sold prior to the auction. DeLorenzo would not disclose the buyer or terms of the sale until the transaction is completed.

Before the sale started, a tenant living in an Affordable Housing property questioned attorney Louis Pomerico about the legitimacy of the sale.

“How can it be sold underneath me?” asked Patrick Scarnati, who lives at 1114 Cunningham Ave.

Scarnati claimed the Cunningham Avenue property was not a rental. He told the crowd that he and Affordable Housing had entered into an agreement to purchase the home at the end of a three-year lease.

Pomerico, who represented Affordable Housing at the auction, asked Scarnati to produce the contract. He could not.

Scarnati also said he had been paying on the lease through March and had built up approximately $300 in an escrow account. Under terms of the agreement, Scarnati said, he would purchase the house after the three-year period for $45,000.

Again, he could not provide paperwork to back up his claim.

“I tried to talk to Deno DeLorenzo, but he would not take my money.”

After the auction, DeLorenzo disputed Scarnati’s account.

“I didn’t refuse to accept rent,” he said, adding Scarnati stopped payments to Affordable Housing in December.

The home, which Affordable Housing purchased at a sheriff’s sale for $12,500 in March 2005, was sold to Louis Suisi for $11,000.

The sale to Suisi represented the best return for Affordable Housing. All the other sales fell far under Affordable’s purchase prices.

A Croton Avenue complex, which David L. Defibaugh sold to Affordable Housing for $28,000, went to Carl Rossi for $1,200.

James A. Mims Jr. picked up a triplex on East Wallace Avenue for $2,000. The nonprofit housing group purchased the structure, formerly owned by Nick DeRosa and John Orlando, for $45,500.

DeRosa recently retired as the New Castle Area School District’s assistant superintendent.

DeRosa and Orlando either owned or co-owned four of the eight properties sold to Affordable Housing. They received $214,000 for homes on Frank, Florence, East Wallace and Highland avenues.

Bidders paid $31,000 for the four — a loss of $183,000 from the purchase prices.

At the conclusion of the auction, Duquesne Street resident Daniel Cook asked why a Dewey Avenue duplex was not sold. Cook produced a letter showing that he had offered $30,000 for the property on Saturday.

DeLorenzo countered that on Sept. 5, he had received and accepted an offer on the property.