Blasted by tenants, owners of burned Gage Street building denied city money to rebuild
WORCESTER — After hearing tenant testimony criticizing the ownership of 2 Gage St., the site of a deadly fire in May 2022, the city's Affordable Housing Trust Fund's Board of Trustees unanimously voted Wednesday to put a stop to awarding the current owners funding to help rebuild on the spot.
"You could grant this funding," said former building resident Aaliyah Hazard. "However should you, would it really benefit our community to return to these people to be the lord or lady of land at all?"
The entity that owns the building, 2 Gage Worcester LLC, has requested $471,770 from the trust fund to assist in the construction of a seven-unit building.
According to the application, the owners were seeking to include three apartments designated exclusively for households that make up to 30% of area median income. The other four units would be market rate, but the applicants said they would be seeking other low-income households. One unit would also have been handicap accessible.
The applicants also said in their application they would be taking steps to improve safety at the new building.
The owners are aiming for a June 2024 move-in date.
Affordable housing
The application indicates the owners would go forward with the rebuilding without money from the trust fund, but the units would have market-rate rents without the assistance.
Daryl Abbas, an attorney who represents both the 2 Gage Street Worcester LLC, said the matter before the Board of Trustees was whether whatever will be built on 2 Gage St. would have affordable housing.
"A building can be built here, but will it have affordable housing or not," Abbas said.
Established in 2021 through federal funds from the American Rescue Plan Act, the trust fund is intended to promote and finance the development of affordable rental and first-time homeownership housing.
The application drew opposition from the City Council Tuesday, who voted to recommend the Board of Trustees vote against granting the money. District 2 City Councilor Candy Mero-Carlson was particularly incensed at the application, claiming the building's ownership at the time of the fire, Huanchen "Jim" Li and his wife Wendy Wang, had received tenant complaints and had several health and safety code violations.
Four killed
The old building, one of the city's many traditional apartment buildings, caught fire May 14, 2022.
Four died at the six-unit apartment building: Marcel Fontaine, 29; Joseph Garchali, 47; Christopher Lozeau, 53; and Vincent Page, 41.
The building was razed in June 2022.
On Sept. 29, 2022, a Worcester County grand jury indicted former resident Yvonne Ngoiri on charges related to the fire.
Ngoiri faces four counts of second-degree murder and two counts of arson of a dwelling. She has pleaded not guilty.
Councilors oppose funding
At the Board of Trustees meeting, a letter submitted by Mero-Carlson and Mayor Joesph Petty reiterating their opposition was read. The other city councilors added their signatures to the letter.
Piling onto the criticisms of Li and Wang were two residents of 2 Gage St., as well as a close friend of Fontaine.
Kitty Bousquet, who said she was Fontaine's best friend and who also briefly resided in 2 Gage St., said the request for money for the new building is disrespectful to the tragedy.
"I don't think it's respectful to the families of the victims, any of the people who lost their homes or people that they loved," Bousquet said.
Hazard started her testimony saying she technically is homeless and is awaiting calls from housing agencies.
Hazard was Fontaine's roommate at the time of the fire and Page was her boyfriend.
In escaping the flames, Hazard fell three stories and sustained injuries.
In her testimony, Hazard alleged that Li and Wang referred to tenants as squatters after the fire, neglected to take action when Ngoiri displayed troubling behavior and neglected care for the building in ways that made it more dangerous.
A case of 'greed'
Former resident Rachel King said landlord negligence made it impossible for tenants to escape from the third floor. One of the victims on the third flood died on a bed King said she used to sleep in prior to her moving.
"What I know of Jim is he's been greedy since the beginning," King said. "All he wanted was money, he would throw people out, it's unbelievable, the greed of that man."
The applicants Wednesday said Li, Wang and their family had divested themselves from overseeing the property. However, Li's name appeared on documents related to the application and his relative Lisa Li is listed as the manager of an entity, 2 Gage Street LLC that is a 50% owner of the building with Jaime Vargas of Marlborough.
A document filed June 11, 2022 with the secretary of state said Lisa Li became manager of 2 Gage Street LLC because Huanchen "Jim" Li and Wang retired. All members of the Li family have the same listed business address in Westford.
According to the presentation, 2 Gage Street LLC planned to contribute $396,013 to the project.
Vargas said he is the manager in charge of the property and had no involvement with 2 Gage St. prior to the fire. He also cited his history in construction during the presentation.
The property owners also plan to have a local management company operate the new building, possibly Nexus Property Management.
Hazard, whose sister lives in a property managed by Nexus Property Management, said similar issues that existed in her building also do at properties managed by Nexus.
Li's role
Trustees asked the applicants various questions about Li's involvement in the project, as he is listed as the resident agent for both of the LLCs connected to the project.
Several felt the applicants were underplaying Lisa Li's 50% ownership of 2 Gage Worcester LLC.
Saying the deed on the property states ownership was transferred between the LLCs for less than $100, trustee Jason Pincomb asked Vargas about a claim he made that it was purchased for $300,000.
Vargas said he bought half of the ownership for $150,000 and did not answer why that was not represented on the deed.
Trustee Johanna Hampton-Dance said Worcester properties that the Li family managed had many health and safety code violations: 2 Gage St., 5 Eastern Ave., 13 Rena St. and 27 John St.
Trustees were also concerned about listed projections on how rent prices could increase over the years and whether the cost estimates were too low for the project.
The Board of Trustees voted to reject a motion to continue the process into the next meeting. The no vote indefinitely halted the application process.
Following the vote, the former Gage Street residents and their friends briefly celebrated outside of the chamber.
This article originally appeared on Telegram & Gazette: Owners of Worcester site where 4 died denied help from Affordable Housing Trust Fund
