Of Interest from the Housing Committee 2-5-10

Mr. Adkins distributed information gathered about incentive programs offered in other municipalities.  He said sixteen of Middletown’s 84 firefighters are residents and thirty of 80 police officers live within the City. Many communities used to have requirements for residency and the Supreme Court has overruled that. He asked committee members to look at the information and they can have further discussion. There was discussion about taking this to the bargaining units during contract negotiations.  Staff is exploring ideas that would bring youth and people back to the City. Discussion included a lottery of NSP homes that could be spread broader based and create some excitement in the program.  Staff will continue to look at programs

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 larges 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.