08/13/1984 Meeting (2) - Laserfiche WebLink

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B. Urban Homestead Program (memo, map distributed) e Assistant City Manager David Whitlow introduced the agenda item. Jesse Smith of the Eugene Development Department presented the staff report, reviewing the August 8, 1984, Interim Community Development Committee memorandum to the City Council. Mr. Hansen temporarily left the meeting at this time. Mr. Smith explained that the City could seek funding from the Department of Housing and Urban Development to provide ownership opportunities for low- and moderate-income households in Eugene. He said homesteaders could move into housing for the cost of rehabilitating the property to acceptable standards. He outlined the program process of identifying houses held by HUD in the area, deciding which houses were under the $25,000 limit, marketing the house, and contracting for the house rehabilitation. Mr. Smith said a homesteader could take title to the house if he or she remained in the house for three years and continued to pay for the cost of rehabilitation. Funds to pay for the rehabili- tation could come from CDBG funds, private financing, and low-interest 312 loans. In response to a question by Councilor Ehrman on minimum income levels, Mr. Smith stated that individuals with 80 percent of the median income level would be eligible for the program. Councilor Wooten stated that $11,000 was the annual median income for a family of four. Councilor Bascom asked if funds were already available to pay for the program staffing or would be made available as part of the grant application. Mr. Smith responded that CDBG - funds were divided into project and administration funds. He said HUD will allow the City to use project funds to administer the Urban Homestead Program. He said staff was estimating that the staff time necessary to process an urban homestead was 25 percent greater than the staff time needed to process a rehab loan. Mr. Hansen re-entered the meeting prior to this time. The public hearing was opened. There being no testimony presented, the public hearing was closed. Councilor Wooten felt the Urban Homesteading Program was exciting, adding that it had worked well in other areas of the country in providing individuals the opportunity to gain "sweat equity" in a house that otherwise would have been a blight to a neighborhood. She requested that staff research the efforts of other cities in expanding the Homesteading Program to include abandoned homes not necessarily owned by HUD. Ms. Wooten moved, seconded by Ms. Schue, to approve the Urban Homestead Program as presented by staff. Councilor Ball stressed that the Rental Rehabilitation and Urban Homestead Programs were important additions to the City's housing program. He stated that he was developing a program for the City to obtain funding for the former - program. MINUTES--Eugene City Council August 13, 1984 Page 4 -