Neighborhood program could house public servants


Julie Reid of the Kerr-Tar Council of Governments (COG) presented a new Neighborhood Stabilization Program to members of the Henderson City Council and the Vance County Board of Commissioners during their joint meeting on Tuesday, September 22, 2009 at the Silo Restaurant in Henderson.

Reid told members that the program, which is funded by federal recovery funds, takes vacant houses and foreclosed properties, rehabilitates or demolishes and rebuilds them, and offers them to low-to-moderate income people.

The first offerings will be to public service employees such as police officers, firefighters, teachers, nurses, and others especially who work for public safety. The program will also offer housing counseling, credit counseling, and, if needed, counseling for credit repair. Successful applicants could also receive downpayment assistance of 20%, 22.5%, or 25%, depending on their household income.

Homes will range in size from 676 square feet to just under 1300 square feet. The cost of the homes will range from $60,000 to $137,000, assuming that construction prices remain stable.

Income eligibility is up to 120% of the median income, which is more generous than is usually allowed for such programs.

Mortgages will be handled by the State Employees Credit Union and the United States Department of Agriculture (USDA). The rationale behind these choices is that these institutions do not sell their mortgages.

The first areas that will be developed are in Kittrell, Park Avenue in Henderson, and the Orange-Breckenridge area, also in Henderson. The reason for choosing Orange-Breckenridge is to support the ongoing Community Development Block Grant effort in that area.

Reid said that a teacher and a fireman have already expressed interest. They heard about the program through presentations to the Vance County Board of Education and the Kittrell Town Council, respectively.

A coherent advertising strategy has yet to be developed, Reid told members.

Reid said the ultimate goal was to make the program sustainable by generating funds.

During comments, Vance County Commissioner Deborah Brown acknowledged that the areas mentioned need attention, but criticized the attention the southern part of the county receives.

“We always end up on the shorter end of the stick in the northern part of the county,” Brown said.

Brown represents the Townsville area near the Virginia line.