News Release

For immediate release

Contact: Ginger Smith 513-425-1856

February 14, 2009

BUILDERS AND BUYERS INTERESTED IN HOUSING IMPROVEMENT PROGRAM INVITED TO MEETING WITH SENATOR VOINOVICH

Builders, building and landscape suppliers, lenders, potential buyers and anyone interested in the Neighborhood Stabilization Program are invited to listen as Ohio’s Senior Senator George Voinovich discusses with Middletown, Hamilton and Butler County officials the uses of recently announced grants to demolish or rehab vacant and foreclosed properties.  The roundtable discussion designed as an informtion trading session between the Senator and local community leaders will be held Tuesday, February 17 in the Council Chambers of the Middletown City Building at 2:15 – 3:00 pm.  While public participation will be limited, it is expected that the information will be useful to those who might be involved in the project.

Prior to the meeting, Senator Voinovich will tour Middletown to see several foreclosed and blighted properties which might be included in the program.

Middletown Mayor Larry Mulligan, Jr said, “We are very pleased to have Senator Voinovich visit to see first-hand the need and potential impact of the program in Middletown. This is a good time for our business community, citizens and potential homeowners to hear how this $2.14 million grant may improve our city.”

City Manager Judy Gilleland said, “The foreclosure problem has been felt in every part of Middletown. This grant allows us to purchase empty properties that are in the foreclosure system, rehab them and resell them at very reasonable rates. The Neighborhood Stabilization Program is unlike other programs in that it can be used only for vacant properties in foreclosure.  Other programs deal with those struggling to stay in their homes and prevent foreclosure.“

The City will soon begin purchasing properties at no more than 85% of their appraised value, contract with local businesses to bring them up to code and then resell the property for no more than the purchase and rehab costs to a qualifying buyer who agrees to live in and maintain the property for at least 10 years.

This particular program also allows more people to qualify since a portion of the properties can be sold to those with incomes at 120% of the median income in Middletown.

Additional buyer assistance features include a requirement that anyone hoping to purchase one of the homes must complete an 8 hour home buyer training program provided free by the City of Middletown. A forgiveable loan to cover a downpayment may also be available to certain buyers. The City will hold a second mortgage on each property for up to 20% of the purchase price at a very low 0% to 3% interest rate.  Buyers then must qualify for only 80% loans with traditional mortgage lenders.

As properties are sold, the money from the sale will be recycled back into the program to purchase, rehab and sell other properties.

A portion of the grant can be used to demolish blighted commercial or resident properties.  Since the average cost to demolish a building is about $8,000, the grant will cover 54 such properties or about 15% of the blighted property in Middletown.

The City of Middletown and its citizens will benefit in many ways: work for building, demolition and landscaping contractors, realtors and other businesses as well as increased homeownership and reduced blight in neighborhoods all over town.

According to Middletown’s Community Revitalization Department Head Ginger Smith, “This is a good beginning to deal with properties we have not been able to address under other programs.  Using all our options, we feel it will make a significant start and may spark other efforts by neighbors of these properties to help make Middletown a better place to live.”

For more information, call 513-425-7950.