Lansing said it has settled lawsuit over apartments that were 'public nuisance'
LANSING — City officials said they have reached a settlement which will force a property management company to fix 21 properties in the city and end a lawsuit brought by the city after it had to house residents in hotel rooms because numerous apartments in one of the company's complexes were red-tagged.
The settlement will require Lansing-based Simtob Management to make repairs within three months and to reimburse the city for hotel costs after dozens of residents were ousted from the Holmes Apartments in March when the city red-tagged the units, according to a city memo. The city red tags residences when it determines they are unsafe for occupants.
Simtob officials did not respond to a phone message Saturday. Company officials told the State Journal in March the dangerous conditions at the Holmes complex worsened because of a weather-related accident last fall and various delays.
The city announced the settlement in a Friday memo from Assistant City Attorney Amanda O'Boyle to Mayor Andy Schor, City Council members and others. That memo was distributed at a Saturday community meeting about code enforcement issues. The lawsuit was filed on March 27 and settled on June 9, according to O'Boyle. The State Journal was not able to independently verify the settlement on Saturday as 30th Circuit Court in Ingham County was closed.
The city sued Holmes Apartments LLC, Simtob Management & Investment LLC, Good Life Apartments LLC and Richard and Bradley Simtob in March over conditions at the Holmes Apartments at 2222 W. Holmes St. that officials described as as a "public nuisance."
Simtob officials proposed moving residents who were living at the apartments to other properties owned by the company, including another apartment building at 1317 E. Kalamazoo St. However, that property lacked a valid rental certificate and had been tagged as such by the city.
The residents were ultimately moved into hotel rooms at the city's expense.
The settlement appears to impact all of Simtob's properties across the city.
“The city successfully resolved numerous violations stemming for 21 different properties in approximately 2 1/2 months," O'Boyle wrote.
The settlement includes conditions, according to the city's memo:
Simtob agreed to correct all violations from inspection reports, safety letters and correction notices
Simtob agreed to pull necessary permitted within 30 days and complete all permitted work within 60 days of getting a permit; code violations that don't require a permit will be completed within 45 days.
Simtob will continue to provide housing for tenants displaced by red or pink tags and will reimburse the city $10,091 for hotel expenses paid by the city
Simtob remains responsible for compliance even if they sell, unless they get city approval and the city can bring the case back to court if the settlement terms are not met
In exchange, the city will inspect the 1317 E. Kalamazoo St. apartments, where Holmes residents were initially sent, within two weeks as well as compete other rental inspections within 40 days and dismiss the lawsuit with the settlement agreement.
City spokesman Scott Bean said in March that state law prohibited the city from forcing Simtob to pay for hotel bills, “so we are seeking legal action to recoup our costs.”
Mayor Andy Schor said in a statement Monday that his administration had worked toward the settlement, which will "ensure that the residents of these apartments will be in appropriate housing, that the company will reimburse the city for taxpayer dollars spent so that their residents were provided temporary safe housing and that they will properly repair all their units in a timely manner. The city will use every tool at our disposal, including taking landlords to court, to ensure we have the housing we need, especially at a time when we are facing a lack of housing in the city."
Contact Mike Ellis at mellis@lsj.com or 517-267-0415
This article originally appeared on Lansing State Journal: Lansing said it has settled Holmes Apartments lawsuit
