Stewart Manor

Stewart Manor, which is part of (AMP 2), is a 99-unit senior high-rise building that, due to sub-standard living conditions and safety concerns for the residents, has been vacated and boarded up since August 2023. In November 2022, the Authority began the process of relocating residents to other Public Housing units as they became available. All residents have been relocated to alternative housing options throughout the Lee County area, either through the SHA, its instrumentality, the Central Carolina Strategic Developers (CCSD)-Matthews Garden Gilmore (MGG), or with friends and family in the local community.

HUD has approved Stewart Manor to be taken "offline," and it is currently being maintained as a vacant building, in accordance with local zoning and ordinance laws, with the homes condemned by local officials. Because of the building's "offline" status, SHA is no longer receiving funding for the Stewart Manor property.

After advertising for a real estate financial advisory services consultant, the SHA selected TAG Associates. Also, after advertising for a co-developer partner for the redevelopment of Stewart Manor, the SHA selected The Galvan Development Group as the developer partner for this project.

Since the new CEO took office in December 2024, the agency has discovered that both TAG Associates and The Galvan Development Group were procured incorrectly. The SHA had not previously entered into a contract and chose not to enter into an agreement with either organization after being advised by its attorneys at The Banks Law Firm, based on the procurement discrepancy. The SHA paid services rendered by TAG Associates based on recommendations from its attorneys at The Banks Law Firm.

In February 2025, the agency procured Dominion Due Diligence (DG3) to perform a Physical Needs Assessment (PNA). Based on this estimate from the comprehensive PNA, DG3 confirmed that Stewart Manor, in March 2025, is eligible for demolition under the Section 18 Physical Obsolescence justification. To qualify for the Physical Obsolescence justification in the Section 18 program, the cost of estimated physical needs repairs of the property must exceed 62.50% of the Total Development Cost (TDC). According to the PNA in March 2025, the TDC is $20,582,255.00, and the estimated physical needs repair cost is $15,127,146.55, which is 73.50% of the TDC. 

Next, the SHA procured DG3 to execute the next steps in applying for demolition under the Physical Obsolescence justification of the Section 18 program with the Housing and Urban Development (HUD) Special Applications Center (SAC) and to complete the environmental reporting necessary for the application. The SHA also requested an appraisal with Leatherman Real Estate Services in March 2025 to determine the property's value.

At the present time, the redevelopment plans are not yet known, and SHA will focus on seeking approval for demolition within the Section 18 application and environmental reporting. There is an expectation to find environmental contaminants at the site that need proper remediation, such as potential lead in the bricks and other issues with the terracotta pipes, which will take time to remediate properly. Therefore, the goal at this time is to preserve the Tenant Protection Voucher (TPV) funding available by submitting a Section 18 Demolition application during the Summer of 2025.