#5a Neighborhood Services Director Report - 18
NEIGHBORHOOD SERVICES
March 12, 2010
TO: Community Development Authority
FROM:Kelly Lee, Neighborhood Development Specialist
SUBJECT: 5a. Neighborhood Services Director’s Report
Progress on 189 S. High Street - Buy, Rehab and Resell Project
The goals of the City of Janesville’s housing programs are targeted at the older
residential areas of the community. The goals of the Home Loan Programs consist of
stabilizing the neighborhoods by increasing the number of owner-occupied properties,
reducing the incidences of slum and blight by providing low or no interest loans to
property owners to encourage appropriate rehabilitation, maintaining the quality of the
affordable housing stock of the community, and reducing the density of housing units
within these neighborhoods. The housing programs offered by the City of Janesville are
dependent upon the private sector to purchase and rehabilitate properties.
In 2007 the CDA adopted the Buy, Rehab, Resell program and $150,000 was allocated
to this program in the State and Federal Grants budget. In this program, the City of
Janesville acquires the properties, rehabilitates them and then sells them to an income
eligible household (less than 80% of Rock County Median Income) to be owner
occupied. Deed restrictions will be placed on the property requiring that it remain a
single family, owner occupied residence.
The homes that the City of Janesville will acquire as part of the Buy, Rehab and Resell
are properties and situations where it would not make economic sense for the private
sector to get involved in a particular project. For example, it is unlikely that a real estate
investor would convert a multi-unit rental property into a single family residence. In
most situations, the cost to purchase and renovate these properties will exceed the fair
market value of the property. However, from the City’s perspective this is exactly the
type of project that should be encouraged because it increases home ownership,
reduces slum and blight and reduces density.
In June of 2008, the Neighborhood Services Department presented a list of seventeen
properties to the Community Development Authority for consideration for this program.
The list was narrowed to six and subsequently to one. On November 19, 2008, the
CDA approved the purchase of 189 S High Street, and in December of 2008,
Neighborhood Services purchased this home.
Initially, Neighborhood Services intended to contract the work to a General Contractor
for supervision of the project; however, after receiving very high bids, the department
decided to act as the project manager for the rehabilitation of the home. Because of
this change in direction, the project has taken longer than originally anticipated.
However, a great deal of progress has been made on this house and we anticipate
having it market ready by the end of March.
Some of the improvements have been:
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Removal of a structurally unsound part of the building
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Conversion of the structure into a single family home
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New plumbing and electrical
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Roof repairs
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New Windows were installed
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Adding an additional half bath and laundry room
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With the assistance of staff, volunteers and RECAP workers, the interior was
painted
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Carpet has been ordered and should be installed in the next few weeks-the
Carpet is made of recycled soda bottles with a fully recycled carpet pad
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Cabinet have been installed-Marling lumber partnered with us for great savings
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Construction of a detached garage with volunteer labor
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We were able to preserve some original components of the house including the
stairs, hardwood flooring on the first floor and an exposed brick wall in the
entryway
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The Westgate Group has expressed interest in assisting financially and with
labor for the landscaping once the weather permits
Neighborhood Services is currently in the process of contracting with a real estate agent
to list the property once it is finished. Again, we anticipate the house to be finished and
ready to list at the end of March. This project has been a great learning experience for
staff, and we believe that this house will make a great home for an individual or family in
the central city neighborhood.
cc: Jennifer Petruzzello
Randy Zwieg