An endless source of city money

Message Topic Search Topic Options Post Reply Create New Topic Printable Version Translate Topic

   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.

Author	Message Topic Search Topic Options Post Reply Create New Topic Printable Version Translate Topic
Nelson...Himself Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Resident Joined: Sep 08 2010 Status: Offline Points: 69	Post Options Post Reply Quote Nelson...Himself Report Post Thanks(0) Quote Reply Topic: An endless source of city money 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.

wasteful Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Citizen Joined: Jul 27 2009 Status: Offline Points: 793	Post Options Post Reply Quote wasteful Report Post Thanks(0) Quote Reply 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?

Nelson...Himself Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Resident Joined: Sep 08 2010 Status: Offline Points: 69	Post Options Post Reply Quote Nelson...Himself Report Post Thanks(0) Quote Reply 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?

Nelson...Himself Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Resident Joined: Sep 08 2010 Status: Offline Points: 69	Post Options Post Reply Quote Nelson...Himself Report Post Thanks(0) Quote Reply 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

VietVet Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Council Joined: May 15 2008 Status: Offline Points: 7008	Post Options Post Reply Quote VietVet Report Post Thanks(0) Quote Reply 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

Nelson...Himself Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Resident Joined: Sep 08 2010 Status: Offline Points: 69	Post Options Post Reply Quote Nelson...Himself Report Post Thanks(0) Quote Reply Posted: Oct 20 2010 at 8:52am
	Thanks..Viet..Vet

Dooraghero Members Profile Send Private Message Find Members Posts Add to Buddy List MUSA Immigrant Joined: Oct 16 2009 Location: Middletown Status: Offline Points: 26	Post Options Post Reply Quote Dooraghero Report Post Thanks(0) Quote Reply 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.
	Would you be willing to trade all the days from this day to that for one chance,just one chance to come back here and tell our enemies that they may take our lives but they'll never take our FREEDOM