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A good deal of progress has been made to correct plumbing and heating issues that have been occurring at Birchwood Apartments over the past year or so, reports Lilean (Garner) Sedlacek, one of the owners of the property.
Following a list of complaints from tenants living at Birchwood Apartments, USDA federal investigators paid a visit on January 24, 2023.
Residents had been complaining about problems with leaky pipes, mold, bugs, wiring, and a lack of heat for some time this winter. Unfortunately, the management company taking care of the two apartment buildings was slow to respond to resident complaints which led to the inspection by the USDA.
“Please be advised that we have responded to the findings letter from USDA on January 26, 2023, and are taking action to the satisfaction of USDA. The other concerns noted are primarily in regard to the duties of the rental management company, which was replaced as of February 1, 2023, by VanBinsbergren & Associates, who are now doing an excellent job,” Sedlacek wrote in an email.
“As one of the partners at Birchwood Apartments, on February 4, 2023, I went up north to evaluate the property. I found “the perfect storm.”
“The management company hired to take care of the apartments had basically abandoned their duties. The covid epidemic prevented the USDA inspectors from doing the annual inspections for two years. The administrative orders of non-eviction during the epidemic prevented property owners from removing tenants that were not meeting their lease obligations. Add to this, a tenant that departed and left the windows open in the apartment during the extreme freeze in December 2022, froze up the water lines and broke the hot water pump serving the upper building. And in the midst of this, our main copper water lines failed, resulting in extensive water damage in several units.,” explained Sedlacek.
Birchwood Apartments were built in 1992 at 801 W 5th Street in Grand Marais. There are 24 apartments between two buildings, an upper two-story and a lower two-story. All of the units are one bath and either two or three bedrooms. The square footage of an apartment ranges from 768 to 930 square feet. While privately owned, Birchwood apartments are typically subsidized by the U.S. Department of Housing and Urban Development (HUD), Rural Subsidized Housing for Families, a project that offers government subsidies for rent payments.
Sedlacek said her company has filed insurance claims for damages, but “it appears this will be a lengthy process as the insurance companies jockey for position and find all the loopholes they can to deny claims, which we, of course, are challenging.”
Lilean, now a Michigan resident, grew up in Grand Marais and is a 1972 CCHS graduate, provided an update on the progress at Birchwood Apartments:
“Phase 1 has been completed. Plumbers have repaired water leaks and a crew has removed wet debris and personal property. All wet carpets, etc., have been removed. ServPro of the Twin Ports has provided 360-degree documentation for insurance and other financial recourse options.
“Phase 2 is completed. ServPro installed protective containment systems to protect our residents and installed commercial air dryers, air cleaners and dehumidifiers. This equipment will remain in place for 30 days.
“Phase 3 is currently underway. The initial demolition phase of removal of the most severely wet and water-damaged areas of the structure is now happening, including trim, cabinetry, appliances, heat registers, etc. Once phase 3 is complete, the units may be left for a period of time without the risk of further damage, as the units will be considered dry.
“Phase 4 will require final demolition to assure all damaged areas are clean so that extensive plumbing updates and rehabilitation of the structure may take place.
“General Partners and rental management company are reaching out to sources to complete the rehabilitation process, including USDA, MHFA, and Cook County HRA. In the event a non-profit would be able to execute a transfer of General Partners, additional funds may be available to them.
“We are fortunate to have procured a team of professionals that are putting forth their best efforts to help to maintain the only affordable family housing in Cook County. We still have a long ways to go, but community backing will help us to continue to make progress in providing affordable housing to the residents that expressed their sincere need for and support of Birchwood Apartments.”
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