We're getting into the mortgage business but we won't make a dime. We can't even fix a pothole, so why the heck not get into loaning money? Makes a lot of sense.
On the Agenda under New Business is an Interlocal agreement between the City of Lake Worth and the Lake Worth Community Redevelopment Agency.
A Residential Conservation and Rehabilitation Program is being established to provide technical and financial assistance to qualified property owners (with residential structures containing one detached dwelling unit) for the purpose of addressing residential energy analyses and possibly urgent/emergency conditions to meet applicable housing and building code standards.
In addition, the Program may also address issues related to household stability in an effort to reduce homelessness and promote self-sufficiency. Improvements may include: roofing, electrical, HVAC, plumbing and major structural repairs. If you qualify, a maximum of $20,000 on a 10 year interest free loan can be obtained with the city holding the Mortgage and Promissory note. Over and above they will have three, $10,000 grants that will be awarded to some lucky needy person for costs such as inspection and risk assessment report fees, clearance testing, lead-based paint hazard reduction or control costs.
The City and the CRA will pay for it. Also they will be seeking grants and donations. $75,000 will come from our Electric Utilities Department. No where does it mention the total estimated cost of this program regarding implementation and constant supervision in a city that has no money. How many residences are they anticipating to be included in this program and how many houses need a lot of help? 5,000. More? Where will all the money come from?
All owner-occupied households that are homesteaded within the City limits may apply for a Conservation Audit Report and technical assistance, while only households earning 120% or less of the Area Median Income (AMI) may be qualified to receive financial assistance and other services.
6 comments:
They can't even keep our pool open,and now the Morons think they can get into the mortgage business? So who is making money off of this ?
No one is making money. These are interest free loans.
Let me get this straight. You constantly complain about the CRA not addressing slum and blight. Let's forget the 155 plus new residential units that were built directly due to the CRA having vision for the city's worst hit areas. (Incidentally raising property values in the CRA district 22% over last year's huge increase) The CRA is proposing a method by which homesteaded owners can make improvements in and to their home, further eliminating slum and blight, and you are against it?
Is it the no interest of the loans? Is it that it helps low to moderate income home owners in Lake Worth? Is it that fact that the loan is pretty much guaranteed to be repaid because it is a recorded mortgage so that if the house is sold, the mortgage is repaid?
I don't get it. You criticize the slum and blight adnauseum and then criticize efforts to combat it.
This is a good program for our residents and I hope the city commission approves it tonight.
I am questioning where the money is coming from to give them a mortgage. How many will apply? How many $$$$ do we have? Etc., etc.
Don't worry. The Trio will definitely pass this tonight...perhaps all.
Yes, property values went up all over this city and county. Was it $23 million of taxpayer money you spent on building 138 houses or something like that? Thank God it was someone else's money.
Turns out Maier voted against this program that would help elderly people living on low fixed income make needed improvements to their home instead of incurring large utility bills. The loan would be forgivable if they stayed in their home for the next ten years. If they sell within that time, it would have to be paid back prorated to the ten year period.
He was concerned that those requesting the help would be subject to a code enforcement action kicking them out of their house. The whole objective of the program is to make sure they could stay in their house and maybe even afford the utilities.
He doesn't get it so he voted no. Not the sharpest tool in the drawer.
Actually he DID get it and Glen Torcivia agreed with his concerns that could very conceivably happen. There was an admission that if staff saw violations that it would be their duty to report. So, on that vote, which did not incorporate any language protecting that homeowner from code enforcement violations and fines, he voted right.
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