Sanford Housing Authority CEO Discusses Plans to Demolish Stewart Manor, Senior Affordable Housing, & RAD PBV Next Steps

Boarded Up Picture of Stewart Manor_Vacant 99-Unit Senior Tower

Dr. Michael C. Threatt Teaching RAD and Public Housing Repositioning Tools

Housing Agency Marketplace for Procurement and Contract Management for SHA

Dr. Michael C. Threatt explains how the Housing Agency Marketplace's Procurement & Contract Management Tools will help the SHA meet Roadmap 2030 Finance Goal

SANFORD, NC, UNITED STATES, January 13, 2026 /EINPresswire.com/ -- Picture accepting the role of CEO, believing your first assignment would be a straightforward redevelopment of a senior affordable housing property sitting on prime real estate. Next, picture speaking with healthcare insurance companies that invest in affordable housing, and envision a pharmacy, a movie theater, and a place to play bingo; all in a setting where seniors can age in place. Now, imagine the calls and emails from community stakeholders, elected officials, and applicants asking why a beautiful eight-acre property visible to everyone has been vacant for the past three years. Visualize 2,500 applicants on the waiting list, with seniors making up half the total.

Then picture stepping inside Stewart Manor, a 99-unit senior high-rise, and seeing that while the exterior brick looked intact, the interior told a very different story: kitchen tables set as if someone were about to eat, family photographs and wedding portraits left behind, now covered in black mold. Finally, imagine black mold throughout the building and a structure from the 1960s, with real lead and asbestos concerns.

Stewart Manor was named after a former mayor of Sanford, NC, and is HUD-designated for seniors. Stewart Manor helps elderly and disabled people who have nowhere else to go. That is what Dr. Michael C. Threatt encountered when he walked into the Sanford Housing Authority (SHA).

“The exterior brickwork structure of Stewart Manor looks great, but the interior looks like we could film the next Saw Horror Movie. We are still assessing if we can rebuild on site after demolition.” — Dr. Michael C. Threatt

Immediate Stabilization, HUD Offline Status, and the 48-Month Clock
Beginning in November 2022, SHA relocated Stewart Manor residents to other available public housing units, Low-Income Housing Tax Credit (LIHTC) Rental Assistance Demonstration (RAD) Project-Based (PBV) units, and nearby options, including units delivered by SHA’s nonprofit affiliate Central Carolina Strategic Developers (CCSD), such as Matthews Garden Gilmore (MGG) developments or with family in the local community. HUD approved taking Stewart Manor offline, and SHA exhausted HUD’s vacancy funding: 24 months for 50 units and 24 months for 49 units (48 months total). The property no longer receives vacancy payments, creating urgency for redevelopment.

Stewart Manor Procurement Issues
Upon taking office in December 2024, Dr. Threatt ordered a comprehensive review of SHA’s procurement practices. Earlier selections, such as TAG Associates (real estate financial advisory) from the November 29, 2023, RFP, and The Galvan Development Group (co-developer) from the October 31, 2023, RFQ, were procured in violation of federal requirements. The previous Interim CEO had selected them without going through the impartial procurement committee process or submitting recommendations to the board without a formal resolution or award letter. Instead, Dr. Threatt discovered memos arbitrarily approving public-private partnerships, even as the board questioned their legitimacy.

During his first 120 days as CEO, Dr. Threatt addressed these issues and worked with The Banks Law Firm for legal guidance. Ultimately, SHA declined to enter development contracts with those firms and compensated only for services rendered where appropriate. Now, imagine explaining to a co-developer that the procurement process was executed incorrectly and that SHA will not enter into a development services agreement as planned.

Procurement Reset (Roadmap 2030 Finance Goal): Verified by Independent Assessment
Furthermore, imagine your new CFO with a forensic auditing background discovering that SHA had been repeatedly using three vendors for unit vacancy preparation, and that one had exceeded $100K without a contract, RFP, or RFQ, and that service agreement signatures lacked the Contracting Officer/CEO’s approval.

To verify the reset and lock-in reforms, SHA engaged C. Michael Consulting Group, LLC (CMCG) to conduct an independent Procurement Assessment & Recommendations. CMCG’s review confirmed thin competition, incomplete records, uneven price/cost analysis, inconsistent debarment checks, and missing Davis-Bacon clauses and certified payrolls.

SHA implemented every recommendation:
• Centralized digital recordkeeping with version control and audit trails
• Panel scoring with pre-published criteria and written award rationales
• Legal review for high-value contracts
• Davis-Bacon compliance cadence from solicitation through weekly certified payroll checks, worker interviews, and spot audits
• Contracting Officer role is designated solely for the CEO to ensure accountability.

When Dr. Threatt launched SHA’s Procurement Reset, the goal wasn’t cosmetic; it was structural. SHA replaced ad hoc procurement with Housing Agency Marketplace, a HUD-focused e-procurement system that standardizes RFPs, RFQs, IFBs, vendor onboarding, MWBE tracking, and electronic bid submissions. This move shifted SHA from paper files and inconsistent approvals to a single, auditable workflow where solicitations are public, competition is real, and every decision leaves a documented trail.

“By leveraging Housing Agency Marketplace’s Procurement & Contract Management Tools, SHA ensures every dollar spent is transparent, competitive, and compliant,” said Dr. Threatt.

Evidence-Driven Decision for Stewart Manor: Section 18 Physical Obsolescence
In February 2025, SHA procured Dominion Due Diligence Group (DG3) to conduct a Physical Needs Assessment (PNA) at Stewart Manor. Preliminary PNA costs totaled $717,494.65. In March 2025, DG3 recommended complete demolition/disposition under HUD Section 18, citing extensive deterioration and the complexity of rehabilitating a 1960s-era high-rise.

DG3 calculated:
• Total Development Cost (TDC): $20,582,255.00
• Rehabilitation Costs: $15,127,146.55 (73.50% of TDC)

This qualifies Stewart Manor for Section 18 Physical Obsolescence. SHA is proceeding with the submission to the HUD Special Applications Center (SAC) and a comprehensive environmental review.

Senior Affordable Housing & RAD PBV: Preserving Affordability and Choice
When SHA missed the August 2025 deadline under the 24-month clause for a unit that was unoccupied, it forfeited its eligibility for Tenant Protection Vouchers (TPVs). Instead, SHA will pursue the Transfer of Assistance (TOA) model through the RAD PBV program for the 99 units at Stewart Manor. While demolition is the immediate focus, SHA is planning for senior affordable housing where residents can age in place, with accessible design and integrated wrap-around services.

SHA’s broader approach leverages HUD’s RAD program to preserve affordability and modernize properties, while residents continue to pay approximately 30% of their income toward rent. The RAD program will enable SHA to leverage public and private debt and equity, including the LIHTC program.

Karoll Kuri
Sanford Housing Authority
+1 919-776-7655
email us here
Visit us on social media:
LinkedIn
Instagram
Facebook
YouTube
Other

LIHTC Housing - Transforming Lives & Communities

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.