Linden NJ: $23 Million Received – Where Did It Go? Mayor Armstead Demands Reform After $23 Million in Insurance Funds Fail to Deliver Repairs at Edward J. Murawski Towers

$23 Million Received – Where Did It Go? Mayor Armstead Demands Reform After $23 Million in Insurance Funds Fail to Deliver Repairs at Edward J. Murawski Towers

Editor’s note: On Staten Island, readers recently learned of the lottery for the affordable housing units at the Pearl, especially for formerly unhoused senior citizens.  We also covered the NYC Department for the Aging’s State Of Older New Yorkers report, which shows that the majority of older adults are struggling to make ends meet and to get their basic needs for food, shelter, and utilities such as heat and electricity met on the incomes and savings they find themselves with at this stage in their lives.   

Linden, NJ – Amid a dire affordable housing crisis impacting residents across the state of New Jersey, Mayor Derek Armstead is urging state and federal leaders, including State Senator Nicholas Scutari, Assemblywoman Linda S. Carter, Assemblyman James J. Kennedy, U.S. Senators Cory Booker and Andrew Kim, Congressman Thomas Kean Jr., and Congresswoman LaMonica McIver, to enact sweeping reforms in the oversight of nonprofit housing entities. Mayor Armstead’s call comes after years of inaction and secrecy at the Linden Housing Corporation (LHC), which, despite receiving $23 million in insurance payouts in 2019 for critical repairs, has failed to restore the Edward J. Murawski Towers, where 60 apartments remain vacant and uninhabitable, some for more than a decade.

“This is not just a delay; it’s a disgrace and a betrayal of the trust placed in our housing leadership,” said Mayor Armstead. “While residents wait over five years on affordable housing lists across New Jersey, the leadership at LHC has allowed 60 apartments to sit empty for over 10 years. That’s 60 families who could have had a home.”

In addition to the ongoing housing crisis, Mayor Armstead’s call for action comes in response to a heartfelt letter from residents of Edward J. Murawski Towers, expressing they feel completely abandoned by Jerry Volpe, former Linden Housing Authority Manager.

The Linden Housing Corporation, under the leadership of LHC President Joseph Infante and LHC Vice-President Gretchen Brooke Hickey, broke away from the Linden Housing Authority and hired Gerald Volpe as the Executive Director of Edward J. Murawski Towers.

A damage report of Edward Murawski Towers from September 26, 2019, detailed widespread deterioration throughout Murawski Towers, including:

· Severe water damage in ceilings and walls
· Broken stoves, refrigerators, and bathroom fixtures
· Crumbling tile, cracked floors, and unsafe conditions
· Unaddressed rodent infestations and evidence of electrical hazards
· Units deemed uninhabitable due to prolonged neglect

“This report was issued nearly six years ago,” said Mayor Armstead. “There is no excuse for the continued suffering of residents while millions of dollars remain unaccounted for. The nonprofit overseeing this building has failed in its most basic duty to provide safe and dignified housing for our seniors.”

$23 Million Received – Why Are Repairs at the Edward Muraski Building Still Delayed?

According to financial documents, $23 million was deposited by the insurance company into an account at Provident/Lakeland Bank under: LHC Government Checking

The account is managed with live signatures required from two of the following three individuals:

Gerald Volpe
Joseph Infante (President of LHC)
Gretchen Brooke Hickey (Vice President of LHC)

From October 1, 2020, through March 4, 2025, a total of $7,298,438.73 was paid to Minhas Construction Corp.

“There is no oversight. No transparency. No accountability,” Mayor Armstead stated. “This is not fair to our seniors, who continue to live in deteriorating conditions.”

Maintenance workers have expressed serious concerns that the opposite side of the Edward J. Murawski Towers is showing signs of structural instability.

Mayor Armstead is urging state lawmakers and federal housing authorities to step in and regulate nonprofit housing corporations, especially those entrusted with public or insurance funds.

“We cannot allow nonprofit boards to govern multimillion-dollar housing operations in secrecy,” Armstead said. “When nonprofits receive public money, they must be held to public standards. It is time for reform.”

Mayor Armstead is calling for:

· A full forensic audit of all payments
· Release of payment history, including exact dates and amounts
· An explanation for delays in completing mandated repairs

Next Steps:

The City of Linden will formally submit the damage report, bank statements, and payment records to the following entities for investigation:

· HUD (U.S. Department of Housing and Urban Development)
· NJ Department of Community Affairs
· State Comptroller’s Office

“Our seniors deserve better,” Mayor Armstead concluded. “This fight is about justice, accountability, and basic human dignity.”

Following are photos provided by the City of Linden of the conditions at the site, which is currently occupied by older New Jerseyans: 

 

Banner Image: Edward J. Murawski Towers showing exterior damage and neglect. Image Credit – Mayor Armstead