Middletown Forum : An endless source of city money

Middletown Forum : An endless source of city money http://www.middletownusa.com/forum/ This is an XML content feed of; Middletown Forum : Community Revitalization : An endless source of city money Tue, 06 Oct 2026 22:36:04 +0000 Sun, 24 Oct 2010 14:05:59 +0000 http://blogs.law.harvard.edu/tech/rss Web Wiz Forums 10.12 360 www.middletownusa.com/forum/RSS_post_feed.asp?TID=3391 Middletown Forum http://middletownusa.com/images/blog-logo.jpg http://www.middletownusa.com/forum/ An endless source of city money : Some minutes from a City Council... http://www.middletownusa.com/forum/forum_posts.asp?TID=3391&PID=22645&title=an-endless-source-of-city-money#22645 Author: Dooraghero
Subject: 3391
Posted: Oct 24 2010 at 2:05pm

Some minutes from a City Council meeting were forwarded to me several months ago wherein HUD specified that if you are not losing money, you are not doing your job. I couldn't believe they would state something like that, much less print it in the minutes. What kind of convoluted logic is that? The money ultimately comes from the pockets of working people all across the nation. To lose money is the goal? But I suppose in big government logic, there is some reason for this.

]]> Sun, 24 Oct 2010 14:05:59 +0000 http://www.middletownusa.com/forum/forum_posts.asp?TID=3391&PID=22645&title=an-endless-source-of-city-money#22645 An endless source of city money : Thanks..Viet..Vet http://www.middletownusa.com/forum/forum_posts.asp?TID=3391&PID=22464&title=an-endless-source-of-city-money#22464 Author: Nelson...Himself
Subject: 3391
Posted: Oct 20 2010 at 8:52am

Thanks..Viet..Vet]]> Wed, 20 Oct 2010 08:52:19 +0000 http://www.middletownusa.com/forum/forum_posts.asp?TID=3391&PID=22464&title=an-endless-source-of-city-money#22464 An endless source of city money : Nelson- thank you for explaining... http://www.middletownusa.com/forum/forum_posts.asp?TID=3391&PID=22452&title=an-endless-source-of-city-money#22452 Author: VietVet
Subject: 3391
Posted: Oct 20 2010 at 6:30am

Nelson- thank you for explaining this in terms that even I can understand. I notice that your explanation assumes that after the city uses the HUD funds and purchases the property, rehabs it and tries to sell it, there will still be an automatic monetary loss from the original money invested. Who dreamed up this illogical guaranteed money loser of a program? AND- this program assumes that all of the houses bought, rehabbed and placed on the market will be sold. What happens to the house if it sits and there are no takers?

The home mentioned on Jewell for $139 thou is double the price for the neighborhood. Who in their right mind would pay double the amount of any home in the neighborhood and call it a wise investment? They will never recoup the amount of money poured into this home on resale, even if it becomes totally paid for.

The intention of this program is not a bad idea. ie, to reclaim, re-occupy and rebuild neglected areas, however, the method of execution of this program with the obvious money waste overshadowes any good that was intended. JMO]]> Wed, 20 Oct 2010 06:30:02 +0000 http://www.middletownusa.com/forum/forum_posts.asp?TID=3391&PID=22452&title=an-endless-source-of-city-money#22452 An endless source of city money : The following 8/1/2010 post... http://www.middletownusa.com/forum/forum_posts.asp?TID=3391&PID=22450&title=an-endless-source-of-city-money#22450 Author: Nelson...Himself
Subject: 3391
Posted: Oct 20 2010 at 4:42am

The following 8/1/2010 post by Miss Vivian speaks volumes about NSP waste:

This little house also caught my eye.
It has 2 bedrooms and 1 bath.
Other houses around it are selling for no more than $65,000
What are they rehabbing in these homes?

Location: 3523 Jewell

Total Project Budget: $139,955

Program Funds Drawndown: $36,289.15

Project Status: Rehab Underway

]]> Wed, 20 Oct 2010 04:42:15 +0000 http://www.middletownusa.com/forum/forum_posts.asp?TID=3391&PID=22450&title=an-endless-source-of-city-money#22450 An endless source of city money : Wasteful, Here'saneasy... http://www.middletownusa.com/forum/forum_posts.asp?TID=3391&PID=22441&title=an-endless-source-of-city-money#22441 Author: Nelson...Himself
Subject: 3391
Posted: Oct 19 2010 at 10:26pm

Wasteful,

Here's an easy-to-understand response to your question/critique about my NSP-1 post.

NSP-1 stands for HUD's first round of the fairly new Neighborhood Stabilization Program.

A) The City is using NSP funds to purchase/rehab/resell vacant, foreclosed homes.

Ten properties have been bought and are undergoing rehab via this $2,144,00 HUD grant.

Upon completion of rehab the homes will be sold to qualified income-eligible buyers.

1) Maximum $75,000 subsidy when total development cost exceeds purchaser sales price:

For example, City purchases home on Gage for $150,000;

City then incurs $67,000 more in rehab and property mainenance costs;

After rehab appraisal of rehabilitated Gage property is $142,000;

Home buyer is qualified for mortgage financing with sale by City finalized; and,

RESULT: $217,000 total development costs less $142,000 sales price = $75,000 subsidy.

;

2) Maximum $50,000 subsidy when purchasers have affordability gap in buying a home.

       For example, City purchases home on Red Bud for $105,000;
       City then incurs $35,000 more in rehab and property mainenance costs;
       After rehab appraisal of rehabilitated Red Bud property is $140,000;
       Income-eligible prospective buyers express interest in this home;

City seeks $140,000 for purchase of this former vacant, foreclosed home;

Purchasers only qualify for $90,000 residential mortgage from bank ($50,000 shortfall);

City offers buyers principal reduction grant, mortgage interest subsidy, etc; and,

RESULT: $140,000 purchase price less $50,000 in NSP subsidies = $90,000 net price.

Surely most taxpayers disagree with this wasteful spending of HUD funds by the City?

]]> Tue, 19 Oct 2010 22:26:27 +0000 http://www.middletownusa.com/forum/forum_posts.asp?TID=3391&PID=22441&title=an-endless-source-of-city-money#22441 An endless source of city money : Can someone translate this into... http://www.middletownusa.com/forum/forum_posts.asp?TID=3391&PID=22429&title=an-endless-source-of-city-money#22429 Author: wasteful
Subject: 3391
Posted: Oct 19 2010 at 7:29pm

Can someone translate this into laymen speak for us individuals who haven't worked for HUD for any length of time?]]> Tue, 19 Oct 2010 19:29:37 +0000 http://www.middletownusa.com/forum/forum_posts.asp?TID=3391&PID=22429&title=an-endless-source-of-city-money#22429 An endless source of city money : QUESTION:AtwhatCityCouncilmeet... http://www.middletownusa.com/forum/forum_posts.asp?TID=3391&PID=22424&title=an-endless-source-of-city-money#22424 Author: Nelson...Himself
Subject: 3391
Posted: Oct 19 2010 at 2:32pm

QUESTION:  At what City Council meeting were these NSP Guidelines/Procedures approved:

A) Individual NSP-financed residential Purchase/Rehabilitation/Resale projects subsides --

   1) Maximum $75,000 subsidy when total development cost exceeds purchaser sales price;
   2) Maximum $50,000 subsidy when purchasers have affordability gap in buying a home.

Source:  Middletown Community Revitalization Department.
]]> Tue, 19 Oct 2010 14:32:52 +0000 http://www.middletownusa.com/forum/forum_posts.asp?TID=3391&PID=22424&title=an-endless-source-of-city-money#22424