By Tim McGlone The Virginian-Pilot May 11, 2012 NORFOLK Taxpayers and investors lost tens of millions of dollars when Bankof the Commonwealth collapsed, a failure that federal authoritieshave blamed in part on local real estate developers GeorgeHranowskyj and Eric Menden. But also lost in all this are the tenants who live in buildingsthat had been under the control of the two. They were landlords todozens of apartment buildings, houses and commercial officesthroughout the region. "We're scared.
We don't know what the next step is," saidStaci Murawski, a tenant at the four-story Baylor apartmentbuilding in Ghent. "We're just sitting around like sittingducks." Things were bad enough already at the Baylor and other apartmentbuildings owned by Hranowskyj and/or Menden. At the Baylor, waterdamage is extensive. Electrical problems persist.
Tenants sayrepairs were hardly ever done and trash pickup was sporadic. Then last Friday, they began getting notices that their natural gaswould be shut off for lack of payment. Hranowskyj, who is in jailfacing 14 federal charges, was supposed to be paying bills for thegas that tenants use for cooking, the electricity for common areasand the trash pickup, tenants said. Calls to the city were of no use. Lawyers were enlisted to help.The gas company finally told them they were safe for the timebeing. AUDI Water Pump
Then, on Wednesday, tenants received a letter from Southern Bank,which took over Bank of the Commonwealth's accounts when theNorfolk-based bank failed in September. The letter has created moreconfusion. It says Southern does not own the building, but that itwill hire an agent to collect rent. "We still have no one acting as landlord and therefore no oneresponsible for repairs of damage," Murawski said. "I think we are concerned because it does not seem anyone isin place to address these concerns," she said. Clutch Release Bearing Manufacturer
"We haveserious questions, and although it seems the money issue isresolved, tenant concerns are not and there is no indication as towhen they will be addressed." Murawski, a costume designer and dressmaker, has lived in asecond-floor apartment with her two children since August 2010.When she moved in, she said, Hranowskyj promised to repair damagedwalls and other problems. She said all he did was paint over themess. Today, her daughter's bedroom walls are covered in mold and peelingpaint. When it rains hard, she places buckets throughout thethree-bedroom apartment. China Mercedes Benz Lamp
"It would be just a waterfall running down the wall," shesaid. The building, at the corner of Colley Avenue and Princess AnneRoad, is crumbling on the outside too. Large chunks of masonry havefallen apart around one doorway, windows are smashed out, screensare ripped, and trash is piled in the alley. In Helon Evans' apartment, sheets of plastic that cover the ceilingdo nothing to stop water leaks. The only closet is unusable becauseof the leaks.
The bathroom ceiling over the tub looks like it isabout to collapse. She said she's lived there six years and has never had a workingoven or stove. A previous tenant had used the oven as a trash bin. Another tenant, Joshua Solomon, a glass artist, was happy to havefound the apartment he moved into about a year ago.
It was freshlypainted and clean. Pretty soon the paint started to peel and the water came in. Thekitchen is the worst. Cellophane tape covering the window seams isuseless.
"Those people tell you they're going to do stuff, and theywon't," he said. Still, Solomon said he thinks he's got a good deal there. "In all fairness, for Ghent, this is a nice apartment." Tenants in other buildings owned by Hranowskyj and Menden expressedsimilar concerns about a lack of attention to repairs and unpaidbills. Hranowskyj faces felony charges alleging he bilked the state andfederal historic tax credit programs out of $11 million.
Hispartner, Eric Menden, pleaded guilty to related charges as well ashis role in an alleged fraud involving $41 million in loans he andHranowskyj received from the Bank of the Commonwealth. Prosecutors allege Hranowskyj and Menden lined their pockets withthose loan proceeds instead of putting the money into theirbuildings. To complicate matters, the government obtained from a federal judgea restraining order prohibiting anyone from selling or transferringmuch of Hranowskyj's real estate. But, for reasons that remainunclear, the Baylor building was not one of them.
That means Southern Bank, as the holder of the mortgage on thebuilding, can take over rent collection. The letter sent to thetenants does not explain what will happen next. It does say: "We will do everything possible to quickly bringto an end what has no doubt (been) a very confusing period foryou." John Heeden, a spokesman for Mount Olive, N.C.-based Southern, saidhe could not comment on the matter. With no answers in sight, Murawski has turned to social media forhelp.
She started a Facebook page called Tenants of Norfolk PropertyDevelopment, the main real estate company run by Hranowskyj andMenden. "We don't want to be penalized when we didn't screw up,"Murawski said. Tim McGlone, 757-446-2343, tim.mcglone@pilotonline.com.
We don't know what the next step is," saidStaci Murawski, a tenant at the four-story Baylor apartmentbuilding in Ghent. "We're just sitting around like sittingducks." Things were bad enough already at the Baylor and other apartmentbuildings owned by Hranowskyj and/or Menden. At the Baylor, waterdamage is extensive. Electrical problems persist.
Tenants sayrepairs were hardly ever done and trash pickup was sporadic. Then last Friday, they began getting notices that their natural gaswould be shut off for lack of payment. Hranowskyj, who is in jailfacing 14 federal charges, was supposed to be paying bills for thegas that tenants use for cooking, the electricity for common areasand the trash pickup, tenants said. Calls to the city were of no use. Lawyers were enlisted to help.The gas company finally told them they were safe for the timebeing. AUDI Water Pump
Then, on Wednesday, tenants received a letter from Southern Bank,which took over Bank of the Commonwealth's accounts when theNorfolk-based bank failed in September. The letter has created moreconfusion. It says Southern does not own the building, but that itwill hire an agent to collect rent. "We still have no one acting as landlord and therefore no oneresponsible for repairs of damage," Murawski said. "I think we are concerned because it does not seem anyone isin place to address these concerns," she said. Clutch Release Bearing Manufacturer
"We haveserious questions, and although it seems the money issue isresolved, tenant concerns are not and there is no indication as towhen they will be addressed." Murawski, a costume designer and dressmaker, has lived in asecond-floor apartment with her two children since August 2010.When she moved in, she said, Hranowskyj promised to repair damagedwalls and other problems. She said all he did was paint over themess. Today, her daughter's bedroom walls are covered in mold and peelingpaint. When it rains hard, she places buckets throughout thethree-bedroom apartment. China Mercedes Benz Lamp
"It would be just a waterfall running down the wall," shesaid. The building, at the corner of Colley Avenue and Princess AnneRoad, is crumbling on the outside too. Large chunks of masonry havefallen apart around one doorway, windows are smashed out, screensare ripped, and trash is piled in the alley. In Helon Evans' apartment, sheets of plastic that cover the ceilingdo nothing to stop water leaks. The only closet is unusable becauseof the leaks.
The bathroom ceiling over the tub looks like it isabout to collapse. She said she's lived there six years and has never had a workingoven or stove. A previous tenant had used the oven as a trash bin. Another tenant, Joshua Solomon, a glass artist, was happy to havefound the apartment he moved into about a year ago.
It was freshlypainted and clean. Pretty soon the paint started to peel and the water came in. Thekitchen is the worst. Cellophane tape covering the window seams isuseless.
"Those people tell you they're going to do stuff, and theywon't," he said. Still, Solomon said he thinks he's got a good deal there. "In all fairness, for Ghent, this is a nice apartment." Tenants in other buildings owned by Hranowskyj and Menden expressedsimilar concerns about a lack of attention to repairs and unpaidbills. Hranowskyj faces felony charges alleging he bilked the state andfederal historic tax credit programs out of $11 million.
Hispartner, Eric Menden, pleaded guilty to related charges as well ashis role in an alleged fraud involving $41 million in loans he andHranowskyj received from the Bank of the Commonwealth. Prosecutors allege Hranowskyj and Menden lined their pockets withthose loan proceeds instead of putting the money into theirbuildings. To complicate matters, the government obtained from a federal judgea restraining order prohibiting anyone from selling or transferringmuch of Hranowskyj's real estate. But, for reasons that remainunclear, the Baylor building was not one of them.
That means Southern Bank, as the holder of the mortgage on thebuilding, can take over rent collection. The letter sent to thetenants does not explain what will happen next. It does say: "We will do everything possible to quickly bringto an end what has no doubt (been) a very confusing period foryou." John Heeden, a spokesman for Mount Olive, N.C.-based Southern, saidhe could not comment on the matter. With no answers in sight, Murawski has turned to social media forhelp.
She started a Facebook page called Tenants of Norfolk PropertyDevelopment, the main real estate company run by Hranowskyj andMenden. "We don't want to be penalized when we didn't screw up,"Murawski said. Tim McGlone, 757-446-2343, tim.mcglone@pilotonline.com.
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