Rehabilitation moves ahead in Willingboro
By: ROSE KREBS
Burlington County Times
Online : phillyBurbs.com

WILLINGBORO - The township is looking for contractors interested in rehabilitating 11 foreclosed homes that will be resold as low- to moderate-income housing.

Last year, the township was given a $2 million grant under the U.S. Department of Housing and Urban Development's Neighborhood Stabilization Program.

The township is providing matching funds amounting to 25 percent of the total grant and is expected to use the units toward its state Council on Affordable Housing fair-share obligation.

At present, the township has the 11 homes under contract with five of those put out to bid for construction work, and three others to be put out to bid this week, according to Randall Gottesman, president of Community Grants, Planning & Housing. The East Windsor company has been hired by the township to assist with the program.

Gottesman said general contracting companies can submit bids during the next few weeks to do the rehabilitation work.
"Local contractors are encouraged," Gottesman said. "The money is in place."

Once contracts are awarded, the work will take about 90 days. Some of the rehabs may include a total gutting, and landscaping will be included in improvements made.
"We definitely want to make a visible impact on the neighborhoods," Gottesman said. Of the 11 homes, three are in Buckingham Park, three are in Hawthorne Park, three are in Pennypacker Park, one is in Rittenhouse Park and the other is in Fairmount Park.

The company also is looking for people interested in buying the rehabilitated homes, Gottesman said. Qualification of homeowners will be done as construction continues, so those interested are asked to contact the company as soon as possible. Prospective buyers will need to meet certain income standards and will undergo counseling to become homebuyers.

"We don't want a beautiful renovated home to be vacant," Gottesman said.

A quarter of the homes are to be sold to low-income individuals or families. Prices will depend on number of rooms, size and whether they are being sold as low or moderate units.

Based on the most recent figures, the homes are expected to be sold from between $90,000 and $135,000.

"There will be a deep subsidy, so they will get a top quality home at a market to just below market price," Gottesman said.

For a family of five to qualify as moderate income, they cannot make more than $67,651. A family of two cannot make more than $50,112 to qualify as moderate income.
The Neighborhood Stabilization Program assists with the nation's foreclosure crisis and was part of President Barack Obama's economic recovery plan. Homes that are rehabilitated are intended to be models for their neighborhood, with cosmetic improvements and landscaping.

Revenue from sales goes back into the program, with participating towns getting a portion. That money could be used to purchase and rehabilitate more foreclosed homes. It cannot be used in a township's general fund budget.
The township has been hit hard with foreclosures and abandonment of homes during the economic crisis. Earlier this year, about 400 of the town's 11,459 homes were in foreclosure.

Duane Wallace, township director of inspections, told council last week that the town is looking to get more federal funds to purchase and rehabilitate more homes.
The township submitted an application by last Friday's deadline to perhaps receive "unencumbered" funds from the program, Gottesman said. The amount the township would be eligible to receive is not yet known.

Next month, the state is expected to release information about future use of funds that have been created by homes sales. Willingboro may be able to use its revenue to fund as many as 10 more purchase and rehabs, Gottesman said.
Contractors interested in the project or prospective homebuyers are asked to call 800-619-9979, ext. 22, and refer to the Willingboro Neighborhood Stabilization Program. Applicants will be put on a waiting list and a lottery will be used to determine which qualified people get homes.

July 27, 2010