Title
Model Block Policies (NB)
Explanation
As the Model Block Project moves into the construction /sale phase the Fifth Avenue Pleasant Street (FAPS) Board is recommending that the CRA adopt several policies including the reservation of a minimum of 20% of the properties for those persons who make no more than 80% of the median income, a policy that adopts using the position of the citizens on the waiting list as a priority listing for the sale of the properties and establishing a second mortgage policy to help insure long term home ownership. These policies expand on the Disposal Procedures adopted by the CRA in March 2003.
The goal of the Model Block project has been to create a mixed income project. The FAPS Board is recommending that a minimum of 20% of the properties in the Model Block Project be reserved for people who fall into the 80% of median income range. This will help to insure gentrification is controlled within the project.
To date there are 120 citizens who have expressed interest in the Model Block houses. After the first of the year the Housing Division will begin working with the citizens on the waiting list to find buyers for properties. The list has been kept in the order that potential buyers expressed interest in the properties. Staff will assign each potential buyer a code number to insure that those who were on the list longest are given first preference. Should equally qualified buyer be found for any house the position on the list will be the determining factor in who can purchase the property.
Finally in order to insure long term home ownership, the FAPS Board recommends that any subsidy provided to make the homes affordable be tracked in the form of a second mortgage attached to the property. The mortgage will not require repayment unless the property is sold or becomes rental property within ten years of purchase. After much discussion the FAPS Board recommends the value of the mortgage not reduce over time, but rather stay in full force until the ten years is past.
Fiscal Note
None at this time
Recommendation
Fifth Avenue Pleasant Street Redevelopment Advisory Board to the CRA : Adopt the Model Block Policies as presented.