• Lisa Simpson
• Oct 23,2009
• In: Bank Homes

Money From Grant Paves Way For Rehabilitation of Homes

Money from grant paves way of rehabilitation of homes as neighbourhood comes alive. In Village Woods one of the houses no longer stands out as the odd one out – it has blended in with the bustling locality after being repaired and made habitable, thanks to the grant. Only a few months previously this house now owned by Darrell and La Techa Love had been a problem issue. It was in foreclosure and pushing down the home values in the immediate vicinity.

The entry of Neighborhood Stabilization Program, a federal programme, has completely changed the picture. Heather Presley of Fort Wayne who is the deputy director of Community Development for Housing said, “We’re getting stronger families moving into older neighborhoods because they can do what the house needs to make it marketable.”
The target of the plan is to bring stability into the localities. It is not about revitalizing them – this facet making it distinctive from other programmes. Instead of bringing back life to a dying area it is trying to stop the contagion from spreading by taking a hold on the abandoned houses.
Those who intend to buy these houses have to fulfill certain conditions but the terms are not too difficult – easier than the other housing plans. A family comprising of four members with an annual earning of $73,000 can be eligible. Presley added, “They’re everyday people that work and want to find the best deal possible.”

The Loves are ordinary people. They had always had their dreams but did not know if and how it would become realized. Darrell said, “We’re still in dreamland right now. I don’t think the reality has kicked in that it’s ours. Right now it just feels like, so surreal. It’s not a reality right now that when we look back 20 or 30 years from now, this will still be our home.”
The eligible purchaser makes their choice of a foreclosed house as well as a certified developer. The city is making use of a federal grant of $7 million. The money is lent to the developer for the purchase of the unit as well as to repair and make it habitable. The expenses for these two steps could calculate to 150% of the home value after completion. The purchaser now avails of a bank loan to buy it from the developer. The new appraised price is paid. The bank then pays the loan back to the city and the latter now has funds to purchase another house.