DSU lawsuit accuses company of leaving apartments unfit

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DSU lawsuit accuses company of leaving apartments unfit

Complexes managed by Georgia firm were infested with mold, school

charges

The News Journal, Dover, DE

By JAMES MERRIWEATHER, The News Journal

Friday, October 12, 2007

http://www.delawareonline.com/apps/pbcs.dll/article?

AID=/20071012/NEWS/710120334

DOVER -- Citing deplorable conditions that include black mold

infestation, Delaware State University has ousted a Georgia

management company for allegedly failing to operate two school-owned

apartment complexes in " a first-class manner. "

The school also has filed a lawsuit in Kent County Superior Court,

accusing Ambling Management Co., of Valdosta, Ga., of breach of

contract and souring the relationship between DSU's Student Housing

Foundation, the legal owner of the two properties, and the school's

students.

The lawsuit seeks a declaratory judgment that Ambling failed to meet

its obligations under two management contracts and damages of at

least $1.5 million.

The foundation, employing DSU workers, has taken over day-to-day

operations of the two apartment complexes -- University Courtyard, a

416-bed development on College Road west of the main campus, and

University Village, a 628-bed complex on the southeast end of the

main campus.

The first priority, DSU spokesman Holmes said, was removing

the mold and taking care of other conditions that posed safety

threats.

According to the federal Centers for Disease Control and Prevention,

black mold may cause a stuffy nose, irritated eyes, wheezing or skin

irritation. People allergic to mold may experience breathing

difficulties, and those with weak immune systems and chronic lung

diseases may develop infections.

" Ambling resolved some issues before termination of the contract,

but there still was too many outstanding issues, " Holmes said. Many

of the most serious shortcomings were detected in an inspection in

August as part of an effort to draw up a budget for an upcoming

capital campaign.

" We'll do whatever we have to do to resolve the situation, and

that's what we're doing, " Holmes said.

Ambling is challenging the university's termination of the contract.

Horner, Ambling's vice president for marketing and

communications, referred inquiries to the company's attorney,

Wannamaker, who could not be reached.

According to the lawsuit, Amir Mohammadi, DSU's vice president for

finance and management, notified Ambling on Sept. 12 that the

agreements were being terminated for breach of contract and that the

company should vacate the premises by Sept. 21.

According to the lawsuit, Ambling received notice of shortcomings in

April, but resisted pressure to remedy them until an Aug. 17 notice

of default triggered a 15-day " cure " period.

In the interim, a private contractor, Environmental Testing Inc.,

determined that the mold was caused by water damage to drywall and

flooring and carpet beneath heating/air conditioning units caused b

y a failure to replace filters and dampness behind the splashboards

of kitchen sinks.

The remedy, the company reported, includes removing all water-

damaged materials, installing dehumidifiers and decontaminating or

trashing backsplash boards. " Quick fixes, " such as the use of bleach

to remove surface mold growth, would not correct the problem, the

company said.

On the last day of the cure period, the lawsuit said, Ambling

reported that it had corrected all substandard conditions, but DSU

contends that a subsequent inspection quickly pointed to the

contrary.

Deficiencies, the lawsuit said, included faulty or missing smoke

detectors, inoperable bedroom panic buttons intended to summon help

to deal with emergencies, broken sinks and toilets and failure to

replace the splashboards.

Ambling also is accused of failing to enforce regulations that limit

occupancy at the two complexes to DSU students and staff.

Ambling both developed and signed on to manage University Courtyard,

and, when the first phase was completed in 2001, the company's

involvement was hailed as a brave new approach to dealing with a

severe housing crunch at DSU.

The company later built a second phase of that complex and, under a

third contract with DSU, completed the first phase of University

Village in 2004.

According to Ambling's Web site, its University Development Group

manages 28,055 university housing beds at 21 schools in 16 states –

including 868 beds at the University of Delaware. There, the housing

is owned by Collegiate Housing Foundation, a nonprofit, tax-exempt

entity that finances college housing projects.

Ramona , a UD assistant vice president, said Thursday that the

housing is limited to UD students, and the school has encountered no

problems with Ambling's management of the complex.

" Our buildings are in good shape, " she said.

At University Courtyard in Dover, rents range from $610 a month for

each resident of a four bedroom/two bath apartment to $710 for each

resident of a two bedroom/two bath unit. The rent range at

University Village, with a meal option excluded, is $585 for each

resident of a two bedroom/one bath suite to $865 a month for a one-

bedroom/one bath apartment.

Willies Gomez, 21, a senior history major, said his apartment at

University Courtyard was " mediocre, but I'm from Manhattan (N.Y.),

so it's like the Hamptons to me. "

Gomez, who said he came to DSU originally to play baseball, said

filthy apartments are something of a way of life among college

students – he keeps a neat one, he quickly pointed out – and that

management could not be blamed for all shortcomings.

He recalled that Ambling had responded promptly to a request to

remedy a stopped-up toilet in his unit.

" To be honest, " he said, " they lent me the plunger and told me to

bring it back the next day. "

Contact Merriweather at 678-4273

or jmerriweather@....