The Michigan State Housing Development Authority (MSHDA) has awarded the City of Three Rivers a Neighborhood Stabilization Program (NSP) Community Development Block Grant (CDBG) in the amount of $233,475 for demolition of five blighted homes in the Second District, plus funding for the construction of five new homes.

According to Lou Ann Moord, director of Administrative Services, other leveraged funds may total $347,340 – loan funds and in-kind services.

Total funding may be $580,815.

Moord said NSP-funded projects have been prioritized by MSHDA for neighborhoods and communities where the incidence of foreclosure and/or abandonment is a substantial threat to the stability of the neighborhood and a threat to the home equity of existing property owners, especially owner-occupants in single-family neighborhoods.

According to Moord, the city has targeted the Second District for the planned housing improvements, and Allen Edwin Homes intends to construct up to five homes.  The developer plans to build their Hometown Series, and this would include a 1,692 square foot, two-story home with three bedrooms and two bathrooms on a slab with one-car garage for $63,000 to $66,000.  This pricing will provide gas, electric, installed curb cuts and concrete driveway, and sodded front and side yards of standard size lots.

Moord said the NSP grant funds and other budgeted funding from the city will pay for demolition of existing structures, marketing and any abnormal fees or costs associated with lot specific issues such as tree removal, ground water, bad soils, etc.

Allen Edwin will provide construction financing for construction of the new homes.  The buyers may also include the choice of a two-car garage for an additional fee of $4,000 or a full basement for an extra cost of $7,775.

Moord said, “The new, attractive, quality-built homes will have energy-efficient appliances, central air conditioning and a solar-panel system to assist in reducing the homeowner electricity costs.  In addition, the city plans to have area landscapers or, perhaps, the St. Joseph County Master Gardening Program, provide attractive, low-maintenance landscaping for about $1,000 per home.”

According to Moore, based on the neighborhood and size of the new construction, it will appeal to first-time home buyers, families and also retirees.  A one-person household with a gross annual income of $45,360, or ranging up to a six-person family with a gross annual income up the $75,120 may qualify.

Moord said, “We know that families are drawn to Three Rivers because of the rural, hometown characteristics, quality schools/colleges, employers, health care providers, churches, recreational attractions, and family entertainment.  With MSHDA special financing, many families may find their monthly mortgage payment will be less than what they had been paying for rent.”

According to Mood, MSHDA has developed a mortgage product that will fund 80 percent of the value of the home with a MSHDA first mortgage and the rest with a 20 percent NSP-funded forgivable second mortgage.  The city also understands that a first-time home buyer or a buyer who has not owned a home in the last three years may receive a tax credit up to $8,000 from the IRS.  The city may also utilize a Neighborhood Enterprise Zone to enhance the sale of the properties.

Moord said, “City administration knows that the planned improvements will make a profound impact in our community, and the city is excited to continue working with MSHDA, Allen Edwin Homes, Ruth Scott, Prudential Preferred Realtors, and others to make a family’s dream of owning a quality-built home with affordable financing a reality.”