As promised in January 2024, the Jackson Development Company, LLC completed the purchase of four residential communities on Jan. 16, with the intention of allowing tenants in three of them to begin the process of buying their own units this year.
The newly acquired properties include a total of 315 units in Lovenlund Apartments 1 and 2 on St. Thomas and Bellevue Village and Calabash Boom Apartments on St. John, according to Robert “Bob” Jackson, managing member of JDC. Residents who prefer to keep renting their units will be given new leases, he said.
The news was greeted with guarded optimism by some tenants at Bellevue Village, who have been waging a battle to make officials accountable for homeownership promises made in 2004.
“I am very interested to have the entire program presented to us, so I can weigh the pros and cons of the purchase versus rental program,” said Bellevue resident Keryn Bryan. “I am cautious due to the years of noncommunication from the management to the tenants.”
When Bryan moved in nearly 20 years ago, tenants were told that they would qualify for purchasing their units if they paid their rent on time for 15 years. However, in the intervening years, Bellevue was sold multiple times, and tenants grew frustrated as new owners claimed to have no knowledge of the agreement.
Jackson was the CEO at Reliance Housing Foundation, the nonprofit affordable housing developer who conceived and built these properties. “An important part of the original development plan was to provide for the conversion to affordable homeownership after the initial 15-year rental period. We are very pleased to be able to finally fulfill that promise,” Jackson told the Source.
“These properties were originally built with federal Low Income Housing Tax Credit (LIHTC) funding allocated by the Virgin Islands Housing Finance Authority,” Jackson explained. Clifford Graham, one of Jackson’s current partners at Jackson Development Company, was the executive director at VIHFA when these properties were built. (VIHFA was instrumental in the financing of the recent sales of the properties.)
“An important part of the original development plan was to provide for the conversion to affordable homeownership after the initial 15-year rental period required under the tax credit program,” Jackson said. “I left employment at Reliance in 2013, and they closed their doors in 2015. Likewise, Cliff left VIHFA in 2011. However, we both have felt an obligation to fulfill the original promise to convert these properties to affordable homeownership.”
Jackson said that tenants at three of the four housing communities (Lovenlund 1 with 99 units, Bellevue Village with 72 units, and Calabash Boom with 48 units) will be able to move forward soon to purchase their units if they choose.
Lovenlund 2, with 96 units, is being retained as affordable rental housing, but Jackson said it has the potential for conversion to homeownership in the future based on demand.
Jackson said tenants will not have to move if they choose not to purchase their units. “We have committed to a ‘no displacement’ policy. If someone can’t or doesn’t wish to purchase their unit, they can remain as a tenant at affordable rents, as restricted under the Low Income Housing Tax Credit regulations,” he added.
Jackson Development Company has prepared a brochure to inform tenants about the process of buying their units or remaining as renters which is now being distributed.
The brochure breaks down the process into three phases. In the first phase, Jackson Development plans to make physical improvements to provide hurricane hardening and resiliency and to maintain quality.
JDC has hired professional property consultants to complete a physical inspection of the properties and to recommend improvements, but Jackson said they are also seeking input from residents. “Please email us at info@jacksondevelopment.net or speak to the property manager with suggestions,” the brochure states.
In the second phase, estimated to take place in the second quarter of this year, residents at Lovenlund 1, Bellevue Village and Calabash Boom Apartments will be given a 12-month option to purchase their homes or to decide to remain as renters, the brochure continues.
Jackson Development Company will locate trained housing advisers on site to assist each resident in determining whether to buy or remain as renters.
Housing advisers will also counsel tenants about qualifying for mortgages, assist with credit repair (if needed,) and determine the amount of Community Development Block Grant subsidies available to help purchase units.
“In addition, residents will be provided free homeownership counseling through a recognized and certified third-party national organization who specializes in assisting people with becoming first time homeowners” Jackson told the Source.
In the third phase, advisers will guide tenants through the closing process “once property improvements are completed and as each buyer receives final approval for closing,” the brochure states. New leases will be prepared for tenants who choose to rent.
Jackson said this project was made possible by a $74.3 million Community Development Block Grant Mitigation (GDBG-MIT) and the Disaster Recovery (CDBG-DR) programs. “These funds will cover the costs of acquisition, renovation and conversion to homeownership for Bellevue, Calabash Boom and Lovenlund 1, as well as the acquisition and renovation of Lovenlund 2,” he added.
The purchase process was facilitated by Love City Strong, which provided $400,000 for escrow deposits on the purchase contracts and an additional $100,000 for due diligence expenses, Jackson said. These funds were repaid to Love City Strong from the closing proceeds.
Residents of Bellevue still have questions and concerns. Among them was the provision in their original agreements that a portion of their rent would be put into escrow for future homeownership. Some tenants said the amount was five percent, but some others said it was 10 percent.
When asked about this, Jackson responded, “The original plan was to credit five percent of a tenant’s rent, provided it was paid on time, toward the down payment for their purchase of a home. We believe it is important to honor the intent of this proposal, although it was made by the prior owners.”
“Since we do not have records from prior ownership to verify the timely payment of 15-20 years of rent payments, we are estimating the rent paid during each resident’s period of tenancy and giving them a five percent credit on all rent previously paid to be used on the down payment of their unit,” Jackson said.
Jackson said there are two key components of the homeownership program. The first is “giving low-and-moderate income residents the opportunity to build wealth through homeownership.”
The second is “preserving the long-term affordability of each home to ensure future generations will also have the opportunity to purchase affordable homes.”
How will this apparent contradiction be resolved?
“Both of these components are addressed in Deed Restrictions that will apply to each home,” Jackson told the Source.
“There will be restrictions, but this is my only opportunity to purchase a home on St. John,” said Mary Bartolucci, a tenant at Bellevue. “I’ve been waiting for this for 19 years. I am happy that Mr. Jackson and Mr. Graham have brought forward the opportunity. I feel like we were burned by the previous owners.”
Pat Richards, a resident of Calabash Boom, said she was excited about the possibility of purchasing her unit. “When I moved here, my last son was in the 4th grade. Now he’s 25 years old.”
One tenant said she was concerned that new executive orders might delay the long-awaited dream about buying her unit. “I hope it all goes through,” she said.
