Patrick Werner and Forrest Nye, as well as several limited partnerships, are listed as defendants in the lawsuit.
“It’s a pack of lies,” Nye, 77, said Friday from his desk at Nye Management in Doe Run.
He declined to say more, other than a possible countersuit was in the works. Attorney Mark Bishop, representing Nye and Werner, couldn’t be reached.
While details are limited about the allegations, their official responses to the lawsuit are viewable in court records. Allegations include breach of contract, negligent misrepresentation and fraudulent misrepresentation. The records say Stephen Voyles, on behalf of Wilshire, negotiated with Nye and Werner to purchase several apartment complexes. Those deals appear to have hit a notable snag.
The properties in question are Woodcrest Village, in De Soto, Hunter’s Ridge, in Hillsboro, Wildwood Apartments, in Arnold, Windcrest Village, in Ste. Genevieve, and Oak Knoll, in Festus. According to the Missouri Housing Development Commission, about 200 of the units are supported by $18.4 million in state and federal low-income housing tax credits. The tax credits are awarded to developers as incentives to build or refurbish affordable housing.
Nye and his firm, Nye Management LC are listed as the general partner for the tax credits, according to the Missouri Housing Development Commission, which oversees and awards projects funded through federal and state tax credits. Robert Muchow and Capital Partners Series XIV, XI and XII — not named in the lawsuit — are listed as the limited partners for most of the tax credits, with Doe Run Partnership LLC and Nye having the remainder.
On Friday, no managers were present at any of the five properties, according to spot checks by a reporter. A message left for one manager wasn’t returned. Residents at all the properties said management was slow to respond, if they do at all.
All but one of the parking lots were covered in ice. Residents at Woodcrest Village in De Soto said their parking lot was partly cleared by a family member who was concerned for the safety of a loved one.
“We haven’t had a manager for a long time. Maintenance isn’t getting done,” said Patricia Newburger, 74, who had a sign on her front door: “Welcome to Grandma’s.”
She said her stove doesn’t hold temperature, burning everything. Several other tenants came out to voice concerns. One said a ceiling light fixture fills with water after heavy rains. Another, Lisa Puckett, among a group of three women, said she turned off the water to one of her toilets about a year ago because it otherwise leaks all over the floor.
“We have nice places,” said Puckett, 53, a school bus driver, who pays $366 a month in rent. “They just don’t fix them.”
They said management isn’t on site, but their rent checks are being cashed every month. They wondered about holding off rent, but were concerned about legal implications.
But Ashley Dennis, 35, didn’t care.
She said she stopped paying her $435 rent at Windcrest Village in Ste. Genevieve months ago. She shares the three-bedroom apartment with her husband and three children. She said a washer on the floor above her overflowed. She showed pictures of what looked like black mold in her apartment. She said she lost a lot of food when her refrigerator went out. When it went out again, she said she bought a new refrigerator on her own for $1,200.
“I am looking to move because you can’t get anything done here,” she said.