Tenants urge St. Petersburg to buy The Morgan Apartments as foreclosure looms

Residents and housing advocates urged St. Pete leaders to buy The Morgan Apartments as the complex faces foreclosure and tenants fear losing affordable housing.

ST. PETERSBURG, Fla. — Residents of The Morgan Apartments are calling on the City of St. Petersburg to step in and purchase the troubled complex, saying years of rising rents, deteriorating conditions and mounting legal issues have left tenants fearing displacement or homelessness.

The calls came during Thursday evening’s city council meeting, where members of the St. Pete Tenants Union urged city leaders to intervene as the property faces foreclosure and ongoing litigation.

Barbara Furness, who has lived at The Morgan for more than five years, said conditions declined after new ownership took over, with maintenance issues compounding residents’ uncertainty.

“I’m not in a financial position to move,” Furness said. “I literally would be one of those that would be homeless if they were to shut this down.”

Furness said amenities have remained unusable months after hurricanes, including the complex’s pool.

“We went this whole year without a pool, since the last hurricane,” she said.

The property’s financial troubles have added to tenant concerns. Court records show the building’s owner, Dallas-based Lurin Real Estate Holdings, is behind on a $46.3 million mortgage, owing roughly $43 million and failing to make payments since August. A lender filed to foreclose on the property in May.

Last summer, tenants also faced the threat of a water shutoff after the landlord fell behind on utility payments. The City of St. Petersburg is now suing to recover more than $400,000 in unpaid water bills.

“The tenants here feel very insecure,” Furness said. “I’m one of them. I don’t know what’s going to happen from one day to the next, literally I have no clue.”

That uncertainty is fueling calls from the St. Pete Tenants Union for the city to acquire the property to prevent it from being sold to another landlord.

“These landlords, what they do is they come in and buy these properties and run them into the ground for profit and don’t improve anybody’s quality of living,” said William Kilgore, an organizer with the union.

Kilgore pointed to other city-owned housing as proof that such a move is possible.

“There’s already a precedent for it,” he said. “They already have a public housing enterprise. It’s not something that can’t be done.”

In a statement to 10 Tampa Bay News, the City of St. Petersburg said it does not plan to purchase The Morgan. 

The full statement reads: “The City has worked closely with the St. Pete Tenants Union on this issue; we appreciate their efforts in representing tenants and will continue to take their concerns into consideration. At this time, the City does not have plans to acquire the Morgan property. Right now, our focus is on collecting the remainder of the outstanding water services balance and providing assistance and information to residents wanting to relocate from the property.

Currently, we do not have significant updates to share regarding next steps at the Morgan. At this time, water services have not been impacted at the property and the City will provide residents with notice prior to ceasing any City services. We continue to monitor the potential foreclosure of the property and work through the litigation process regarding the outstanding balances.”

We’ll continue to provide relevant updates to residents as they become available so they are equipped with the necessary information to make the best decision for their living situation.”

City officials said water service has not been shut off at the property and that residents would receive notice before any city services are impacted as the city continues to monitor the foreclosure process.

For tenants like Furness, the fear is losing one of the few remaining affordable housing options in the area.

“Yeah, I can move,” she said. “But I can’t afford to go from $1,800 a month to $2,300 or $2,400 a month.”

10 Tampa Bay News reached out to Lurin Real Estate for comment on Thursday and multiple times over the past six months but has not received a response.