ST. LOUIS — Another TEH Realty apartment complex has been put into receivership, as the federal government steps up pressure on the company.
St. Louis Circuit Court Judge Christopher McGraugh last week ordered that Sansone Group act as receiver for Blue Fountain Apartments, 818-819 Gustav Ave., in the city of St. Louis' Baden neighborhood.
TEH Realty, of Israel, owns the complex. But a lender, Simmons Bank, earlier this month alleged in court that the company owed it at least $5.4 million on notes tied to Blue Fountain and another complex, The Woodlands Apartments, 10032 Neville Walk in North County. A hearing on a request for a receiver at Woodlands is scheduled for later this month.
They're not the first TEH complexes to be targeted.
Another city judge in December put the company's troubled Southwest Crossing apartments into receivership.
The city earlier that month sued TEH, seeking a court order forcing the company to improve conditions at Southwest, after citing TEH for 68 property code violations and condemning 14 of the complex's units.
After asking for a federal investigation into TEH Realty in November, U.S. Sen. Josh Hawley this month introduced legislation that would crack down on landlords who fail to uphold basic living standards. The "Bad Landlord Database Act" would require the Department of Housing and Urban Development to create a comprehensive database of terminations of contracts with landlords due to violations of Housing Assistance Payments contracts. It would also require local public housing authorities to report bad landlords to HUD.
Hawley has said that federal funds have been cut off to TEH.
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