Beverly Hills Firm That Owns Hundreds of “Distressed” Units Paid Millions By RI Housing
GoLocalProv News Team
Beverly Hills Firm That Owns Hundreds of “Distressed” Units Paid Millions By RI Housing
Boulevard Capital LLC, which goes by “BLVD Capital," self-describes itself as "an opportunistic real estate investment firm that focuses on the acquisition and rehabilitation of distressed and value-add real estate investments on the west coast, and the acquisition and preservation of low-income multifamily properties nationwide.”
The properties that the Beverly Hills firm owns are intended to provide housing to the poorest in Rhode Island. The first of what lawyers say will be upwards of 40 lawsuits were filed in Superior Court last week alleging the Park Plaza development in Johnston has been “grossly negligent.”
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Each corporate name given by the Beverly Hills firm is tied to lines from movies — “Stay Away from the Cans” a quote from “The Jerk” by Steve Martin; “Where do you summer” is from another Martin movie “LA Story;” and “Is this hand shucked” is a line from “What About Bob?” starring Bill Murray.
Beverly Hills Firm Names Its Companies Providing Housing for Low Income Residents After Comedy Movie Lines
“BLVD and its principals have a proven track record of successfully investing in over $1.4 billion of properties across multiple strategies, and a current portfolio of over $400 million,” claims the company.
Boulevard Capital’s principals Robert Budman and Patrick Luke have refused to be interviewed. The lawyer representing the owners in the lawsuits and housing enforcement actions against the Park Plaza is former U.S. Attorney Robert Corrente. He has repeatedly refused comment.
The Beverly Hills company went on a buying spree in Rhode Island scooping up hundreds of low-income housing units in Johnston and Providence. According to minutes of a RI Housing board meeting in August of 2015, Boulevard Capital and its related corporation were approved for the transfer of the Chatham Village Apartments and the related government subsidies worth millions.
The property is described by RI Housing as "originally constructed in 1997 using Low Income Housing Tax Credit (“LIHTC”) from Rhode Island Housing and financing through a HUD-insured loan. The Development contains 40 apartments in two buildings. All of the apartments are affordable under the tax credit program.”
The company that controls Chatham Village is “Where Do You Summer.”
Over the past near four years, the company has been paid millions in subsidies. According to RI Housing records, just since July of 2018, “Where Do You Summer” has been paid $592,872.
Also during that time, RI Housing has received eight complaints about the condition of the property from tenants.
Tenants at Park Plaza apartments, also controlled by the Beverly Hills firm through series of corporate structures, allege health and housing standard violations.
A lawsuit filed last week in Superior Court on behalf of a Johnston mother Emily Valle and on behalf of her children alleges of the owners of the Johnston property and two management companies, “Throughout her residency at Park Plaza, Plaintiff has endured a number of hazardous and unhealthy conditions on the premises, including flooding, water damage, dangerous microbial growth, and contamination caused by the wanton neglect of the defendants."
The suit goes on to allege, “As a result of continued exposure to the hazards and contamination at the premises of Park Plaza, Plaintiff and her children have suffered numerous injuries, including but not limited to respiratory & pulmonary symptoms, severe emotional distress, and property damage. Despite Plaintiff’s repeated complaints to the defendants, little was done to remediate the hazards in her apartment until recently.”
“[The kids], they’re getting uprooted at school. There was school testing last week, when they told me I needed to be out [of the hotel], that means they can’t study for their tests if they don’t have the wi-fi hooked up,” said Rose. “We had beds brought in wrapped in unwrapped, so I need new beds. Some of the beds were left outside — we need beds, we need to make sure we don’t have mold, it’s too quick to have to move back in.”
In addition to Chatham Village and Park Plaza, the Beverly Hills firm controls 51 units at Braeburn Apartments and Rock Ridge Apartments ( which has a total of 151 apartments total -- 111 apartments under contract). Combined, the Beverly Hills firm's companies have received more than $2 million in payment since last July.