Boston Herald; Boston, Mass.; Sep 27, 1997; BERNARD WOLFSON;

Abstract:
Opening a new chapter in the troubled history of lower Roxbury's Mandela housing development, a federal bankruptcy judge yesterday awarded the project to a new partnership owned jointly by Beacon Properties and Mandela's tenants.

Full Text:
Copyright Boston Herald Library Sep 27, 1997
Opening a new chapter in the troubled history of lower Roxbury's Mandela housing development, a federal bankruptcy judge yesterday awarded the project to a new partnership owned jointly by Beacon Properties and Mandela's tenants.

Bankruptcy Judge Carol J. Kenner's ruling cut all ties between Mandela and its former owner, Alphonse Mourad.

Mourad lost the housing project to a court-appointed trustee after he filed for a Chapter 11 bankruptcy reorganization last year amid charges of gross mismanagement.

The new limited partnership between Beacon and the Mandela Residents Cooperative Association gives each 50 percent equity. The tenants group can buy out Beacon for $1 within five to seven years.

The partnership has a capital budget of $18 million, including $4 million for Mourad's creditors and $11 million to renovate the 276-unit, 10-building affordable housing project. A consortium of investors will put up the $11 million to obtain tax credits.

Mourad charged that the tenants were being duped by Beacon, the city of Boston and the state. He said they want the site for more lucrative commercial development.