Anti-blight program nears first home buy

BRADENTON — The city is on the verge of closing its first deal in a program to reverse the deterioration of neighborhoods hit hard by foreclosures.

That was what Tom Cookingham, deputy director of the planning and community development department, told the City Council in an update on the Neighborhood Stabilization Program.

City staff has contracted to have an appraisal performed on a piece of property on Ninth Avenue East, Cookingham said, and is working with a bank to formalize the offer for the home.

The almost $2.6 million program is part of the federal Housing and Economic Recovery Act of 2008 under which the city purchases distressed foreclosed homes, renovates them and either sells or rents them to low and moderate income residents.

“The ultimate goal is to stabilize the neighborhood,” Cookingham said. “We’re taking abandoned property and putting people in them to start bringing the neighborhood back.”

He said abandoned and neglected properties become nuisances, attracting criminal activities, such as drugs and vandalism.

“Then this starts to spread through the neighborhood,” Cookingham said.

He said he was working the Florida Department of Community Affairs, the administrator of the federal funds, to close the lag time between requesting the funds and receiving them.

“This is important when we have a closing date,” he said.

About 80 properties were identified as in foreclosure in the specific area of the city for which the program was qualified.

They range in price from $10,900 to $179,000, and the city expects to rehabilitate five to six homes for resale or rental.

“It would be ideal to find property with minimal rehabilitation needs and move people in quickly,” Cookingham said.

Councilman Bemis Smith wanted to know what happens if the city cannot sell the property.

Cookingham said he was working with the DCA to allow the Manatee County Housing Authority, which is looking for property, to become a qualified buyer.

Smith was concerned that with the program, the city could be purchasing homes at a price higher than what a private investor would pay.

Cookingham said the city will remain competitive by making the homes affordable for low to moderate income people.

“The private investor doesn’t have as much flexibility with buyers,” he said. “They can’t offer down payment assistance or loan write-down programs.”

Smith said as long as city taxpayers do not become saddled with a long-term cost, he supports the program.