One of Northumberland County's predominant landlords is also among its most notorious, cited for code violations more than 150 times since snatching up dozens of properties in southeastern Northumberland County.
George Atiyeh or his firms Apartments & Acquisitions and Northeast Apartments have been found guilty 59 times since 2011 of violations ranging from garbage and high grass to the deteriorating condition of properties.
There are 45 citations left unresolved in Shamokin, Coal Township, Kulpmont and Mount Carmel. The cases are pending in two district courts.
Fines total nearly $14,000, and that's just a fraction of the $134,000 owed in delinquent property taxes before a proxy cut a check in mid-September to cover roughly half what was past due.
Shamokin-Coal Township Joint Sewer Authority sought 43 liens against Atiyeh's companies for unpaid sewer bills and costs exceeding $20,000, with $9,800 still outstanding. Another five are pending with the Kulpmont-Marion Heights Municipal Authority of more than $4,800.
The information was compiled from records searches of online criminal and bankruptcy dockets, and at the Northumberland County Courthouse and the Northumberland County Tax Claims Bureau.
Local code officers point to Atiyeh as the leading offender in an area riddled with blight. They say he's been out of touch and largely unresponsive, even after judgments have been made against him.
"The citations I write, they just keep mounting. I write the citations and he ignores them. Basically, he just tries to go under the radar with anything," said Robin Williams, Mount Carmel's code officer.
But Atiyeh says problem properties owned by his firms were code-breakers long before they were bought at tax sale. With a combined 125 properties in Northumberland County, he says no one has made as substantial an investment in local real estate. What he calls a "pit bull's" approach to enforcement, Atiyeh says overregulation will scare away other investors from doing business locally.
"I get stabbed in the back everywhere I go up here," Atiyeh said. "I'm in pretty deep. The last thing I want to do is cut my loses. If I can rebuild my portfolio and survive, I can have others come up and invest millions. But if I can't make it up there, there's no big landlords that are going to make it."
Not enough time
Atiyeh, of Allentown, waded into the county's housing market in December 2010, acquiring two properties through Apartments & Acquisitions, a jointly held company. The next month, he jumped right in, purchasing 14 - the first of 85 properties bought in 2011. All told, Apartments & Acquisitions and Northeast Apartments, a company he holds solely, own a combined 125 properties in the county, with 61 purchased through tax sale. Roughly one in three are occupied.
Citations would follow for the first time in the fall on 2011. Many were filed in succession against the same property in the hopes of sparking action. Of the nearing $14,000 in fines levied against Atiyeh or his firms, less than $5,000 have been paid. There are so many payment plans established that the latest one doesn't begin until Feb. 8, 2018.
Atiyeh argues that he hasn't been given enough time to make repairs that were years in the making before he got a hold of property deeds.
It's no secret that a tax sale is buyer-beware. Investors must know what they're getting into when it comes to liens and property condition. The properties are in the steward of the tax claims bureau until they're purchased. Some are in decent shape, others not so much.
Atiyeh ended up with many of the former and a few of the latter. Nothing was addressed when they were vacant and without an owner. Why not give the new owner a chance to make upgrades, he asks. Time is what he wants. Time to make repairs, and for someone with a portfolio as large as his, time to address nuisance violations like trash and high grass.
"In Coal Township, Shamokin and Mount Carmel, the minute you take possession of those props from tax sale, they attack you like a bunch of pit bulls. They basically come at you day in and out and try to put you out of business," Atiyeh said.
'Top of the list'
Rick Bozza, Shamokin's code officer, describes Atiyeh as the foremost problem landlord in the city.
Bozza said he hasn't seen Atiyeh in at least one year, despite issuing dozens of citations against his properties. Even after he's found guilty, he said the property issues remain largely unresolved. He has five upcoming hearings concerning the landlord's properties in November.
"We get more complaints from the public about his properties. As far as absentee landlords, right now, he's on top of the list," Bozza said.
Williams, Mount Carmel's code officer, leads local code enforcement in citations issued against Atiyeh. When the businessman first purchased the properties, Williams said he made repairs to some, but that didn't last.
"It's one of the biggest blight fights that we have here," Williams said. "I don't think he knew what he was buying. Some of the properties were pieces of junk when he bought them, and he just left them sit. I started filing citations to try to get something moving on it."
Some headway has been made through the courts. Williams said Apartments & Acquisitions has a court-appointed receiver and a local property manager with whom he deals. He's aiming to "button up" the worst of the properties - securing them and improving safety. Several should be demolished, he said. A summary trial on several citations is scheduled for Tuesday in Mount Carmel.
Williams described some of Atiyeh's properties as "vibrant," and said the property manager is responsive to inspections and issues with these. But other properties remain as vacant as the day they were bought from tax sale, and perhaps more decrepit.
"He would buy one that was empty for many years, empty the junk out and try to put people inside without significant upgrades. A lot of my citations and most that I won were to that effect," Williams said.
Blames leaders
Atiyeh doesn't blame Bozza or Williams or other code officers. They have a job to do. But he believes their bosses promote an overly aggressive attitude in carrying out their duties. He says most of his properties are above board. It's the few that are repeatedly cited that have garnered notoriety.
Code officers have taken to issuing citations over and over against the owners of problem properties to spur them to act. Atiyeh's no different. In his case, he has been cited repeatedly for the same offenses at a portion of the properties he owns. In Shamokin, about 11 of the 32 properties he owns have been cited.
Atiyeh says it shows that he owns many properties that aren't a nuisance, and that code enforcement is overly aggressive. To code officers, however, it shows that the problems aren't being addressed.
Problem tenants have added to the headaches. Some tenants don't pay rent for months. They are evicted and don't make arrears. They simply move on to do the same to the next landlord, Atiyeh said, adding that he's had tenants gut his units of appliances and copper before vacating.
Laws must be changed to hold tenants responsible. If a tenant sticks a landlord for thousands in rent, it's a civil matter. If he were to stick a vendor for thousands, Atiyeh says he'd be charged as a criminal. He sees both as thefts that should be treated equally.
Bankruptcy attempt
Apartments & Acquisitions was formed by Atiyeh and estranged partner Harry Z. Brill in 2011. Legal filings estimate a holding of between 300 and 400 parcels in Carbon, Lackawanna, Northumberland, Montour, Schuylkill and Susquehanna counties. A falling out led to a failed bid by Atiyeh to file for bankruptcy.
Brill claims to have invested nearly $2 million in the company. He says it's a fruitless venture, and that its earnings can't keep up with its operations.
Atiyeh says differently, claiming in court documents that revenue doubled from 2011 to 2012 and continued to increase into 2013.
If earnings were as strong as Atiyeh claimed, it didn't help pay the taxes. Looming tax sales of more than 100 properties in four counties spurred him to seek bankruptcy in September 2013.
Atiyeh and Brill both hold a 49.5 percent stake in the company. The other 1 percent is held by the management firm AB General Development, which they also hold jointly. But it was Atiyeh who filed Chapter 11, the same month he changed the company's address from Allentown to 51 N. Oak St., Mount Carmel. Brill never signed off on either, and his contestation led a federal judge to dismiss the bankruptcy filing. Brill reportedly filed a related lawsuit against Atiyeh in Lehigh County Court.
Taxes paid, just in time
It wasn't until one year after the bankruptcy filing, Sept. 16, that Northumberland County Tax Claims Bureau was paid nearly $64,000 in combined delinquent taxes owed by Apartments & Acquisitions and Northeast Apartments, almost all of it from 2011 and 2012. Payment was made one day before dozens of his properties would be exposed to the 2014 upset sale.
Ten were let go, however, including 220 N. Turnpike St., Mount Carmel, against which citations remain pending. Same goes for two Shamokin properties - 549 S. Seventh St. and 506 Bear Valley Ave. These are part of Shamokin's blight program, and citations are pending if repairs aren't made in the near future.
The scenario may play out again next year as just shy of $56,500 is owed in 2013 property taxes. Final totals owed for the 2014 tax year aren't yet known.
The bureau's director, Jan Nestico, has banned Atiyeh and any of his firms from buying properties at tax sale.
Schuylkill, too
Atiyeh has at least two other real estate firms: Baytay and Jamilie. Two parcels were purchased by Baytay in Mount Carmel in March 2014. Jamilie owns nothing in Northumberland County. Properties under this firm were reported by Atiyeh as being used as collateral for his contribution in the creation of Apartments & Acquisitions.
Code issues with Atiyeh's properties aren't exclusive to Northumberland County. There have been 56 citations filed against Atiyeh or his firms in Schuylkill County. Twenty-eight ended with guilty pleas or verdicts, and fines exceeding $8,750. Fourteen were withdrawn, and two not-guilty verdicts were rendered. Twelve are pending.