The City of Aurora will sell the first home renovated under HUD's Neighborhood Stabilization Program. The house, located at 628 Bangs Street, was formerly a two-unit property. The house received significant renovation, including siding removal, removal of a commercial garage, removal of a hazardous pool and new roofing. Renovations cost $260,000 and the now-four-bedroom home will sell for $130,000, the value at which it was appraised.
It sounds like a waste of federal dollars to spend twice what the house is worth to renovate it, but it also sounds like a great opportunity for any clients who want to buy in the Aurora area. The buyer will put down about two percent of the home’s cost — or $1,000. The primary lender will be lending about 93 percent. Under the new homeowner agreements with the city, the buyers must occupy the home as their primary residence for five years and keep the property up to city codes. If they do so, the additional five percent of the purchase price of the home will be waived. If they don’t, they default on the five percent loan and that amount must be repaid to the city.
The buyer will receive about $2,000 in assistance from the city to cover closing costs and they will also be eligible for a federal grant to cover closing costs on the home up to $5,000. Aurora is also renovating other properties which will be listed for sale under this same federal program in the near future.
More homes should be renovated. The federal program is a good opportunity for homeowners to remodel their house.
True, although the costs of this program might prove to be too much to support.
The City of Aurora, with more than $3 million in federal funds, was the first to purchase and rehabilitate 14 foreclosed or abandoned homes. Unfortunately the house located at the 628 Bangs Street had been sold.
I'm glad there's such a program to purchase foreclosed and abandoned homes, and redevelop them for low- and moderate-income families.
I hope that home security was also taken into consideration in the renovation of the houses. Homeowners, me included, want my family to have a sound sleep every night without worrying about break-ins.
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