Valley Morning Star – Mercedes HUD Complex in Limbo

The future of a local low-income apartment complex is in limbo as attorneys try to reach an agreement with the U.S. Department of Housing and Urban Development to keep the residential community functioning.

A Texas Rio Grande Legal Aid attorney representing four current tenants and three who have moved from Mercedes Palms Apartments said in a statement on Tuesday that HUD has refused to renew the complex’s Section 8 housing contract, which expired in October 2007.

Since then, officials say, the apartments’ current owner, Pharr Plantation Inc., which acquired the property in May 2008 following bank foreclosure, has paid about $1 million out-of-pocket to cover general repair and maintenance costs, a portion of which attorneys say should have been paid by HUD.

To read the entire article, click here.

One thought on “Valley Morning Star – Mercedes HUD Complex in Limbo

  1. It is about time the Federal Government enforces some standards of cleanliness and maintenance of any property receiving Federal susidies. I have observed in San Antonio that the “slum lords” abound and are subsidized by the Federal Government. This is absolutely disgraceful. The “slum lords” generate more income because they circumvent general industry standards and do not maintain the properties in a clean and safe manner. I’m pleased to hear HUD is addressing issues in housing (if on an ever so mall scale).

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