Council approves receiver and up to $250,000 appropriation to stabilize Governor Square; solicitor and proposed receiver outline phased plan

Harrisburg City Council unanimously approved a resolution on Sept. 9 authorizing the city to enter a professional services agreement with Midtown Asset Consulting LLC, the court‑appointed receiver for the residences at Governor Square, and to appropriate and expend city funds as necessary to stabilize, restore and preserve the properties, subject to reimbursement.

Deputy City Solicitor Tirza Cameron and solicitor Grover briefed council and said Midtown Asset Consulting was appointed by the Dauphin County Court of Common Pleas after the city petitioned for receivership in the face of longstanding building violations, incomplete repairs and interrupted resident services. Justin Heinle, a local property manager who was discussed as a potential receiver and who has managed other local properties, described a phased approach: an initial six‑month assessment and stabilization period, followed by stronger implementation and later capital improvements.

Solicitor Grover told council the city’s $250,000 appropriation had already been approved by the council earlier in the process and that any additional expenditures would require separate council appropriation. Grover described the situation as layered: an ongoing federal bankruptcy for the owner’s entity, creditor claims, and prior incomplete assessments. He said the court‑appointed receiver will be able to access more of the property for a full assessment than prior outside teams and that the principal near‑term goal is stabilization and restoration to create a habitable asset.

Grover cautioned that recovery of city expenditures is not guaranteed and described two potential repayment paths: (1) restored operations and reactivated housing vouchers or cash flow that would allow the receiver to remit payments over time, and (2) a court‑supervised sale of the property, at which point proceeds could be applied to creditors and reimbursements. He told council previous outside offers to acquire or restore Governor Square had failed to meet HUD or other federal requirements that would preserve low‑ and moderate‑income housing.

Council members questioned the receiver selection process, oversight and reporting, monthly payment estimates for early stabilization, resident protections during receivership and how the city would recoup funds. Heinle and Grover said the initial phase would include a more complete inventory of units and operating revenue and that council would see reports; Grover said the receiver will return to council with assessments before additional city funds are expended beyond the appropriation already authorized.

Councilman Jones said he would not have approved spending additional funds without the six‑month assessment and asked for that clarity on the record. Council then voted 6–0 (Councilwoman Daniels excused) to approve Resolution 58.

The action follows years of code enforcement, litigation and an extended bankruptcy process affecting the Governor Square ownership and management. Council and city officials said the receivership is intended to stabilize housing for current residents and bring the property into compliance, while longer‑term remediation or sale would follow court and HUD processes.