Thread: Evictions Loom in Postville:Emergency Aid Was Ineffective

Saturday, January 3, 2009 6:01 AM CST

Evictions loom in Postville as emergency aid proves ineffective
By JENS MANUEL KROGSTAD, Courier Staff Writer

POSTVILLE --- Despite an emergency rental assistance program approved more than a month ago, evictions still loom in Postville, landlords and city officials say.

The city received a $698,000 federal grant in late November to help prevent a wave of evictions, and along with it, a collapse of the town's rental-housing market.

But applications have trickled in slowly, and the two remaining major landlords say the money is not enough to keep people in their properties and their businesses afloat.

Agriprocessors, the town's kosher meatpacking plant, has been in distress since federal agents arrested 389 workers last May in one of the largest immigration raids in history.

The agency in charge of administering the money, Northeast Iowa Community Action Corp., has so far doled out about $45,000 to 153 households, which includes some Jewish homeowners.

At that rate, the agency says it does not expect to use all the funds by the time its contract expires at the end of May, despite the town's dire needs.

Mary Ann Humpal, the agency's executive director, said she thinks bare-bones shifts at Agriprocessors and illegal immigrants living in town have resulted in low numbers of applicants.

The plant closed for several weeks in November and reopened with a fraction of its original workforce.

"The Paulauans and Somalians (former plant workers) left town when the plant closed," she said.

"We have a whole segment of people over there who can't apply because they don't have valid Social Security numbers."

The two remaining major landlords in Postville have criticized the federal guidelines governing the grant money. It restricts the rent money to a fair-market-value price, which is determined by a federal formula that applies to the entire county.

The town was originally told by NICAC officials that there were no restrictions on the money.

But officials looked into possible restrictions after they learned of a number of suspiciously high rent prices on applications.

That's when landlords were told the grant, which is designed to pay for all rent and utilities for three months, will cover only about 60 percent of what they charge.

Trevor Seibert, who manages 160 rental units, said he's not trying to cheat anyone with high rent prices. He said his rent reflects a property's mortgage.

It is higher than most residential mortgages because, as a landlord, he had to take out a commercial loan, he said.

Agency officials have told him to bill the difference to the renter.

But Seibert said that would be fruitless because those applying for assistance are unemployed and have no job prospects unless Agriprocessors ramps up to full capacity.

"If the town is to turn around, we're either going to have that plant sold in the next few months or it just isn't going to get any better, and all of this is a moot point because people will have to leave Postville," he said.

So Seibert said he prefers to keep his properties open in case the plant reopens. That way, he said, he can sign up those who have jobs at Agriprocessors.

Even so, he said he plans to evict only a handful of deadbeat renters this winter and will find a way to keep needy families under a roof.

"They're telling us not to evict anyone, but yet no one's telling us that they're going to pay rent," he said.

"We're being forced to stop evictions, but we still have to pay for it."

But many more evictions are in process at Gal Investments, the other major rental company in town.

Its owner, Gabay Menachem, said he has about 65 households in various stages of eviction. He has agreed to delay any final notices for two weeks.

Menachem, who said he has allowed countless workers to stay in homes for little or no rent, said he is four months behind on his mortgages and two months behind on $200,000 in credit card bills.

The town has already seen the assets of two major rental companies owned by Agriprocessors taken over by banks. They are now managed by Seibert.

"The (state) promised something and basically they did something else," Menachem said.

"Meanwhile, I am at the mercy of the bank."

It was Menachem's tenants who turned in grant applications with new rental contracts that require them to pay the current month's rent, last month's rent and two months' rent as security deposit --- all up front.

The total sum due often approached the maximum allowed per person, NICAC officials said.

City officials said they have grown weary of Menachem's questionable business tactics and showed little sympathy for his plight.

"He's just going to have to bite it," Postville Mayor Bob Penrod said.

"Because that's all he's going to get out of the federal government. Once these people start working, then it's a different story."

Contact Jens Manuel Krogstad at (319) 291-1580 or jens.krogstad@wcfcourier.com.

http://www.wcfcourier.com/articles/2009 ... 863900.txt

Maybe other businesse that hire illegals over American citizens will learn a lesson from this event.

This is exactly why the whole family needs to be deported.

Now we have all these illegal dependants and anchor babies with no source of income waiting, sucking off churches and whoever; Waiting for the "Worker" to go through the system and then come back.

Any and all incentives to slither back across the border illegally need to be removed

Ya notice that the Feds made $698k available but have only used $45k because they required a valid ssn#?

Accidently the govt did something right!!!!

Are the American people suppose to fell bad about this?
It don't make me fell bad no one ask them to come,they invaded our country.There are a lot of people trying to make us the bad ones but it looks like all the young men that died trying to keep this country free gave it so our government dictators could give it away. Come one come all take what you want and give not a thing.

Trevor Seibert, who manages 160 rental units, said he's not trying to cheat anyone with high rent prices. He said his rent reflects a property's mortgage.

Ya right you thief!!

lol lol lol I think it's hysterically funny to watch these thieves squirm now that the shoe's on the other foot!! Good ! Serves them right! I hope they go down in flames!!! Couldn't happen to more deserving people, now could it?

Hire American citizens and legal immigrants at a decent living wage next time, idiots! lol lol lol This article made my day!!