But Riverside denies these allegations and says work done at the property was to address asbestos contamination, which requires remediation under city code.
The city also denies violating the terms of an agreement it reached with PNC to give the bank time to fix nuisance conditions at the home. And besides, the city says that agreement expired anyway.
“The city has been engaged in abating the unsafe nuisance conditions at the property as required by city code since the prior owner failed to do so,” said Jim Miller, Riverside’s law director. “These actions are required by city code to maintain public health and safety. All work on the property is paused in light of the pending litigation.”
PNC Bank last month filed a civil lawsuit in Montgomery County Common Pleas Court that accuses Riverside of violating a deal the parties had reached about a home at 1514 Phyllis Ave., roughly across Springfield Street from the Air Force museum.
PNC initiated foreclosure proceedings last year on the home after the buyer defaulted on her mortgage.
Riverside had issued a notice of public nuisance to the property owner in late 2022 that identified issues including a crumbling foundation, broken windows, peeling paint and problems with structural deterioration and decay to the roofing and other parts of the home.
PNC filed a lawsuit last fall seeking a restraining order and an injunction because the bank said it wanted to prevent the city from tearing down the home.
PNC and Riverside in November reached an agreement in which the bank promised to repair or replace the foundation, roof, back steps and windows.
The agreement says the city “under no circumstances” will issue an order to demolish the property without giving PNC a minimum of 30 days notice to try to fix any issues that do not comply with building code.
PNC’s lawsuit alleges that it learned in late March that Riverside was going to move forward with demolishing the home.
The financial institution filed a lawsuit that says initial demolition work caused significant damage to the home. The bank said the city breached their agreement and failed to provide proper notice.
In a January email to the city’s law director, an attorney for PNC wrote that the bank has spent more than $20,000 remediating issues at the home to prepare for it for sale. The bank says it has a buyer lined up.
“If the property is demolished, PNC will be irreparably harmed, as its security interest will be permanently removed and PNC will not be able to see the property to satisfy the unpaid amounts of the loan it made,” says the bank’s civil complaint.
But Riverside has said in legal filings that the city has not ordered demolition of the property. The city said it has just taken steps to address asbestos and asbestos-cement siding that must be remediated under city code.
“The property was in the process of being abated to remove asbestos related contamination until PNC filed the pending lawsuit,” Miller said.
Riverside says the city has not violated the agreement with PNC, but even if it did, that deal expired in mid-March. Riverside also said PNC is wrong when it alleges that the home is on the brink of being demolished.
Miller said the two parties are engaged in discussions through legal counsel and hopefully this matter can be resolved with an agreement.
Last month, a Montgomery County Common Pleas Court judge granted PNC’s request for temporary restraining order. The court will consider the bank’s request for an injunction.
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