MEMORANDUM

TO:                  Mike Wildgen, City Manager

THRU: Victor Torres, Director, Neighborhood Resources

FROM:            Margene K. Swarts, Community Development Manager

SUBJECT:     Affordable Housing Partnership between the City and Tenants to Homeowners, Inc. – 130 Providence

DATE:                        April 27, 2004

The City redeemed 130 Providence at a foreclosure sale in October, 2003 for $153,000.  The property had previously been rehabilitated through the CDBG program and the owner subsequently defaulted on the primary loan.  The City redeemed the property so as not to lose the investment in affordable housing.  Staff arranged for the trash and debris to be removed from the house and premises and it is ready for minor rehabilitation and subsequent occupancy.  NR staff have visited with Tenants to Homeowners, Inc. regarding partnering on another affordable housing project.  The proposal is for TTH to purchase the property for $153,000, which is the City’s current investment.  TTH will then rehabilitate the structure and sell it through the HOOT Program (first time homebuyer) to a low or moderate-income homebuyer.  

The 2004 appraised value of the property is $178,000.  TTH believes the property can be rehabilitated for a modest amount and still keep the property affordable.  This request meets a national objective of the CDBG program for aiding low and moderate-income persons and would provide additional affordable housing in the City of Lawrence.  Staff recommends approval of this request.  If you should have further questions, please let me know.