Homes in troubled Rutland neighborhood to be seized

Three properties in a Rutland neighborhood that has struggled with drug-related crime will be seized by federal officials and eventually turned over to a nonprofit group devoted to affordable housing and community redevelopment.

The order of civil forfeiture was issued by U.S. District Judge William Sessions in late August, and residents have to move out.

The three homes — 114, 116 and 117 Park Ave. in northwest Rutland — were identified as having been used by some of the city’s major heroin and crack dealers going back to 2011, according to court documents. As early as 2012, neighbors notified the property owners about illegal drug activity and associated problems, what Rutland Mayor Chris Louras described as “chaos and dysfunction.”

According to court documents, the homes were owned by a New York corporation whose principals are Bernard and Ruth Jeifa. The owners could not be reached for this story, and their attorney, Matthew Shagam, said he is not authorized to comment at this time.

In 2013 and 2014 the use of undercover informants to purchase drugs at the Park Avenue properties resulted in raids and numerous high-profile arrests. The complaint for civil forfeiture was filed in early 2015.

U.S. District Attorney Eric Miller said civil forfeiture is used sparingly and only in cases where there is broad-based community support. Even less common, according to Miller, is the proposed solution of what to do with the properties once they’re turned over to U.S. Marshals.

In this case the properties will be transferred to NeighborWorks of Western Vermont, which has received a $1.25 million grant to redevelop the neighborhood. The grant covers demolition work on four houses, much of which has been completed and the area converted into green space, and the purchase and rehabilitation of seven others, including the Park Avenue properties.

According to Gregg Over, project manager for NeighborWorks, the Park Avenue homes are in dire straits. He said 114 Park Ave. has been vacant since last year when the boiler failed and the tenants left. “It is a very real mess on the inside,” Over said.

However, Over and NeighborWorks Executive Director Ludy Biddle see the acquisition as an enormous opportunity to revitalize the neighborhood and create affordable housing for low-income families. “They will be put back together with all of their historic qualities preserved and with a lot of attention to quality materials and efficiency measures,” said Biddle.

Through a separate grant, Green Mountain Power will provide solar panels for at least one of the properties. Heat pumps will be installed in all three buildings, and each will receive external weatherization upgrades, which will boost efficiency and ultimately drive down maintenance costs, according to Over.

In early August, the Homeless Prevention Center in Rutland was contacted by city police and asked to provide outreach to residents living in the Park Avenue buildings. According to the center’s executive director, Deborah Hall, they made three visits to the properties and have gotten a response from some but not all of the tenants.

Hall said three of the seven apartments were working with the center to find alternative housing. Options include the emergency housing program through the state’s Economic Services Division and the Open Door Mission, Rutland’s only homeless shelter. Hall said one family has made arrangements to move into a trailer. Others, including a mother with a baby, did not respond to the center’s queries.

“When we went to provide information about what resources are available, some folks reached out to us, and others said they were not interested in services,” Hall said.

Another complicating factor is that many of the tenants have pets. Hall said there were at least five dogs and four cats accounted for. “It is exceedingly difficult to rehouse folks with pets,” Hall said.

The property transfer is a multistep process. Once the U.S. Marshals have seized the properties and “all tenants have been removed,” the buildings will be turned over to the city, according to court documents. NeighborWorks will pay $82,500 in escrow to TD Bank for the properties, and the city has agreed to cancel its liens, fines, taxes and other fees when the transfer of title is completed.

In recent years the city of Rutland has adopted a communitywide approach to addressing drug-related crime and the heroin epidemic. Project Vision, which brings law enforcement and community groups together, has been credited with reducing drug-related crime such as thefts and burglary. Louras says the civil forfeiture should be seen as part of that broader effort.

“It really is a demonstration of the power of Project Vision,” Louras said.

According to NeighborWorks it could be two to three years before the properties are renovated.

“We are absolutely thrilled at this opportunity,” said Biddle. “Those three houses like several others we’ve recently worked on will really add to the neighborhood.”

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