The late December seizure came to broader attention after Mr. Akimkin appealed to local authorities to return the couple's children, saying he would provide firewood and monetary help.
While the private sector assumes responsibility for capital costs and the risks involved such as cost and time overruns in construction or failure to deliver an agreed level of service, the local authority in return commits to regular payments.
Jersey City, Paterson and Newark came under state control in a series of takeovers from 1989 to 1995, and local residents often complain that the state should have either improved the districts by now or return control to local authorities.