Continued high priority emphasis on a home buyer down payment/closing cost program can do much to prevent areas like the one that Viet Vet noted on Strafford Dr. from becoming impacted because of one problem property.

You might consider asking a number of local real estate and mortgage banking professionals about this. They can provide you with tangible market data that supports the strategic infusion of minimal HUD funding to augment neighborhood stability during these tenuous economic times.

In response to your one-liner above, I hope you aren't implying that Strafford Dr. is an unstable area because I sure didn't. Because of the unsightly vacant, foreclosed home once owned by Viet Vet, there needs to be a coordinated private-public effort to attract a qualified home buyer there and in other comparable neighborhoods! Targeted home demolition in blighted, older neighborhoods also remains a high priority companion undertaking.

Only two years ago the City's down payment/closing cost assistance program enabled 60 first-time home buyers to purchase mostly vacant/foreclosed homes in quite a few otherwise stable neighborhoods. This did much to keep areas like Strafford Dr. stable.

Now, large amounts of HUD funds are being diverted to Former Downtown commercial acquisition and demolition pet projects instead. There must be a healthy balance between home ownership assistance in all wards of the City and demolition of vacant, blighted, obsolete older homes in Wards 1 and 2. The City has a large amount of Housing Rehab Revolving Fund resources that should be strategically utilized in salvageable neighborhoods in Wards 1 and 2.

Last week I was notified by an elderly African-American homeowner that the City's housing rehab program was not available because of unspecified internal problems. This longtime Ward 2 resident and Navy veteran was turned away. I wonder what is planned for the thousands of dollars in the aforementioned housing rehab fund? And, since over one year has passed since new personnel were promoted by Judy G. to "run" community revitalization activities, how interesting it would be to know what is the nature of these little problems?

CITY STAFF COMMENTS -- CITY COUNCIL HOUSING SUBCOMMITTEE MEETING (EXCERPTS) -- FEBRUARY 5, 2010
HUD Neighborhood Stabilization Program - Round One Update
As reported earlier, Mr. Adkins explained there will be a shift from demo to acquisition and rehabilitation. The theory is to stabilize neighborhoods. He is working with Fannie Mae, HUD and the largest REO realtor to find homes for purchase and rehab. He explained the process that starts with a Cost Estimate Report, includes a Rehab Feasibility Analysis, and Appraisal. Homes acquired and rehabbed could be incentive homes. If the program does not get all its money back from the rehab, that’s OK. HUD recommends you lose $75,000 per home. When you take an empty house and possibly turn it into the last vacant house on the street; putting a taxpaying family in the house, HUD feels these are investments in the neighborhood and community. They will tell you if you are not losing money, you are not doing a good job. There was discussion about housing stock and looking at three or four bedroom $100,000 homes for this project. HUD will carry a second mortgage to put better housing stock in the neighborhood. Middletown has done some of these, but not without some criticism. Maple Park is a good example with better quality homes and a nicer neighborhood within a neighborhood. The policies need to be well wrapped and understood.
HUD Neighborhood Stabilization Program - Round One: Comparison of Strategies

Community Revitalization Consultant/Staff Plan (11/08)       Nelson Self's Concept(10/27/08)

City Purchases/Rehabs/Resells 20 Vacant Foreclosed Homes      City Assists Purchasers of 70 Vacant, Foreclosed Homes
City Engages in Real Estate Market                                              City Provides Secondary Loan Financing for Purchasers
City Assumes Property Management Function                             City Provides Technical Rehab Assistance for Purchasers
City Incurs Property Tax, Insurance & Maintenance Costs           City Works with Purchasers, Lenders & Realtors
City Projects Losing Up to $75,000 per Home                               Purchasers Use FHA 203k & Other Bank Purchase/Rehab Loans
Residential Property Demolition - 50+ Structures                         Residential Property Demolition - 50 Structures
Down Payment/Closing Cost Assistance - 35+ Purchasers           Down Payment/Closing Cost Assistance - 70 Purchasers

You be the judge? Which is the most cost effective and productive? Why has senior City staff waited one year to begin their costly acquisition/rehabilitation/resale activities? I guess that it doesn't matter as HUD allows grantees like the City of Middletown to lose up to $75,000 per housing transaction? As a taxpayer, how does this logic strike you?

More homes go to sheriff's auction

June is shaping up to be worst month yet for local homes in Butler County foreclosure sales.

By Jessica Heffner, Staff Writer 8:27 PM Thursday, June 17, 2010