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Ward 2 City Council Candidates - What are your sentiments regarding this blatant misuse of HUD funds? We would like to know. |
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mailto:Nelsonself - |
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mailto:s@hud.gov - |
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| Subj: |
$100,000+ HUD-Funded Mystery Housing Project: 3200 Block Ottawa, Middletown, Ohio |
| Date: |
4/30/2009 3:56:52 P.M. Eastern Daylight Time |
| From: |
mailto:Nelsonself - Nelsonself |
| To: |
mailto:Jennifer.D.Burns@HUD.GOV - Jennifer.D.Burns@HUD.GOV , mailto:erichter@coxohio.com - erichter@coxohio.com |
| CC: |
mailto:amarconi@cinci.rr.com - amarconi@cinci.rr.com , mailto:ascherrer@siscom.net - ascherrer@siscom.net , mailto:diggerviv@juno.com - diggerviv@juno.com , mailto:dongardner@fuse.net - dongardner@fuse.net , mailto:drbronston2001@yahoo.com - drbronston2001@yahoo.com , mailto:gmaples@pmgloans.us - gmaples@pmgloans.us , mailto:jerryglover@att.net - jerryglover@att.net , mailto:mprest@erinet.com - mprest@erinet.com , mailto:pastor_foster@yahoo.com - pastor_foster@yahoo.com , mailto:pnagy@att.net - pnagy@att.net , mailto:Robyn.L.Mcnally@pncmortgage.com - Robyn.L.Mcnally@pncmortgage.com , mailto:rowens11@cinci.rr.com - rowens11@cinci.rr.com , mailto:wleap@cinci.rr.com - wleap@cinci.rr.com |
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$100,000+ HUD-Funded Mystery Housing Project -- 3200 Block Ottawa, Middletown, Ohio
About six years ago a substandard single-family home in the 3200 block of Ottawa was targeted for demolition by the city planners. The owner-occupants of this home were an elderly couple with limited income.
According to current staff who was involved with this project, CDBG funds were used to demolish this home. Furthermore, other HUD funds were used to build a new three bedroom/two bath ranch home for this couple. The total cost of the project was about $100,000.
Since the homeowners received HUD assistance and were lower-income, they were required to pay only 30% of their monthly income as a mortgage payment to the City. It was said that their spotty credit history and limited income prevented obtaining a bank mortgage. Also, to the present day there is not one home within a significant radius of the 3200 block of Ottawa that appraised for anything close to $100,0000.
A couple of years after the retired couple moved into their new home courtesy of the City of Middletown, the property was put up for sale because of unpaid property taxes. Somehow, they paid off the arrearage.
About one year later the husband of the retired couple passed away. The surviving wife fell behind on taxes and the property was again put up for sale. However, because the City did not answer the notice of the pending tax sale it was forced to pay off the past due taxes. At the same time, to protect this large gift of HUD funds, the mortgage and mortgage deed were re-written with the surviving widow and her niece being the new owners.
I have no idea how all of this happened. While it's nice to give someone a $100,000 new home with a miniscule monthly payment, is this what HUD funds are to be used for? If so, there are thousands of lower-income families who would love to stop by the 4th floor of One Donham Plaza to apply for one of these "PRICE IS RIGHT" handouts.
This information was also shared with the members of the now-defunct HUD Consolidated Planning Committee. They can fully attest to the information presented by current city staff.
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