GRAND RAPIDS. Mich. (WZZM)- Back in 2008, the Housing and Economic Recovery Act created the Neighborhood Stabilization Program.
A total of $3.9 billion dollars was handed out nationally to communities who hoped to redevelop foreclosed and abandoned homes. $6.1 Million was given to Grand Rapids, allowing the city to rehab approximately 60 homes.
One of the first homes to be completed is located on the city's Southeast side.
For long-time homeowners on Giddings Avenue SE, The Neighborhood Stabilization Program is a welcome sign. "For Sale" signs are not, especially if they're foreclosures. Venessa Remo, Director of Housing Services at Lighthouse Communities, points out that the completed home on Giddings, "Otherwise would be a vacant house. A vacant house would lower their home value."
The Neighborhood Stabilization Program allows non-profits like Lighthouse Communities to buy such homes and fix it up. Remo says, "Most people are embracing it and encouraging friends and family to actually look at the house and become their new neighbors."
Rehab Specialist at Lighthouse Communities, Steven Venhuizen says, "We put a new furnace, new water heater, new plumbing and new electric." He adds, "We tried to preserve parts of the house that were good as well. If you look at the floor and the walls they were already in good shape."
Venhuizen says the program serves a dual purpose. Since contractors from the area where the rehabbed home is located are hired to do the work, it creates new jobs while making more empty houses into homes.
Financially, eligibility is broader under this program.
Remo says, "This allows folks up to 120% AMI, which is Area Medium Income, to purchase a home which is for a family of four someone who roughly makes $70,000. It does expand the buying power of those particular individuals. "
The home on Giddins Avenue SE is listed at $82,500
But if a homeowner qualifies for downpayment assistance of up to 20% of the purchase price, they can get $16, 600 worth of downpayment assistance.
Remo says, "It truly is a buyers' market and this program really helps those who want to get into a home get into a home that they can afford." And, hopefully, sustain for years to come.
Several other non-profits were selected to work on other homes hardest hit by foreclosures in Grand Rapids. Prospective home buyers are required to attend eight education counseling classes before they're allowed to purchase the home.
Lighthouse Communities hopes to have ten more homes completed by the end of the month.
For more information, you can call 616-451-9140
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