Penrose outlines $90M renovation plan for Born and Kenny apartments in Newburgh; residents press on arrears and relocation

Council member Tamika Stewart, who convened the June community meeting, introduced a development team that Penrose and its subsidiary Contour Housing Partners said is preparing to acquire and renovate two Newburgh properties known as the Born and the Kennys. Stewart told residents the city and attorney general had pursued the previous owners over habitability complaints and that new ownership is intended to fix long-running problems and provide stronger resident protections.

"This is our opportunity to fix that," Stewart said, summarizing city action that led to the current acquisition process and the attorney general's ongoing lawsuit against the prior landlord. Stewart identified herself as Ward 3 council member and framed the meeting as a chance for residents to ask detailed questions about the transition.

David Marron, a Contour Housing Partners representative, said the developer is seeking to close on the properties in September and expects to invest about $90,000,000 across the Born and the Kennys—roughly $250,000 per unit—using state financing and tax-credit structures to preserve affordability. "We would not buy the property if the state of New York wasn't financing these renovations," Marron said, adding that state regulatory agreements will require long-term affordability and that the developer is focused on rebuilding trust with residents.

Marron laid out the project's main goals: complete substantial in-place renovations, install on-site management, preserve affordability through financing vehicles (including Low-Income Housing Tax Credits), secure project-based vouchers, and minimize displacement during an 18-month renovation period. He described technical plans to replace boilers with individual electric heating and cooling systems, repair plumbing and electrical systems, install new kitchens and windows, fix masonry and sidewalks to meet ADA standards, and add security cameras and a management office at the Kennys.

Marsha Blunt, a Penrose operations lead who said she has worked for the company for two decades, described Penrose's supportive-services structure and day-to-day property-management plans, including placing an on-site superintendent and expanding maintenance staff. Blunt suggested residents use provided contact information to report issues and said the company conducts routine unit inspections. "If you tell us something is going on, we're going to address it immediately," she said.

On tenant protections, Marron and city officials referenced the federal Uniform Relocation Act and a state regulatory agreement that they said will lock in long-term affordability and prevent displacement for tenants below stated AMI thresholds. Marron said the developer has an executed contract with the Newburgh Housing Authority for up to 140 project-based vouchers to be shared between the Born and the Kennys; Penrose and Marron explained that project-based vouchers are attached to units rather than following tenants.

Residents repeatedly raised questions about rent arrears, the ongoing attorney general lawsuit, and whether incoming management would forgive or otherwise address back rent. City staff and Penrose representatives said those arrears are being handled through the attorney general's legal process and that the incoming owner cannot resolve past-due balances: the developer "does not have anything to do with anything that's going on right now as far as the owner and rents," Blunt said. The team said new leases would be issued when Penrose assumes management and that tenants must still pay rent under the new leases even while units are being rehabilitated, with relocation costs (movers, temporary housing within hospitality units) covered by the project when moves are required.

On utilities, Marron said tenants will pay for individual electric heating and hot water but that state utility allowances will reduce monthly rent correspondingly so that the rent-plus-utility burden should remain in line with tenants' current regulated protections. Marron offered to supply literature explaining the calculations.

Residents pressed management history and habitability concerns, including mold and phone-response problems, citing online reviews. Blunt acknowledged past complaints at some properties, described Penrose's unit-inspection routine and offered to share a direct phone number and email for follow-up. Several residents voiced skepticism and anxiety about whether the promised changes would materialize; city officials said they had negotiated stronger oversight language and annual inspections to ensure compliance.

The development team committed to two follow-ups: a late-July or early-August meeting on design and finishes and a logistics/leasing meeting about 60 days before management transfer. Penrose provided a scheduling example (Unit 4C projected for renovation in March 2027 with a roughly 10-day relocation to a vacant Unit 10A) and said it would begin work by renovating vacant or already vacant hospitality units first.

No formal vote or city action occurred at the meeting; the attorney general's lawsuit and other legal processes remain the mechanisms for resolving historical rent arrears. City staff closed the meeting by reiterating they will hold the developer accountable and return with project updates.

Next procedural steps: Penrose aims to close in September, issue new leases on closing day, hold design meetings in late July/early August and schedule household-by-household conversations about recertification and relocation 60 days before management transfer.