90 Des Moines Homes to be Fixed or Demolished

90 DM homes to be rehabbed or razed in Neighborhood Stabilization plan

By JOANNE BOECKMAN • jboeckman@dmreg.com • April 16, 2009

Ninety Des Moines homes will be renovated or razed to make way for new housing as part of a program using federal money to improve areas affected by foreclosures.
Des Moines received a $3.9 million grant to address the problem in designated neighborhoods.
The money comes from the Neighborhood Stabilization Program approved by Congress in August. Nationally, a total of $3.92 billion was set aside for the federal program. Iowa was allocated $21 million and the state awarded the $3.9 million to Des Moines on April 1.

The program is intended to limit the negative impact of a foreclosure on a neighborhood.
"The overall idea is to rehab properties that are still strong homes, still structurally sound, but just in need of some attention," said David Dunn, Des Moines senior city planner. "Those properties that are too far along, the idea is to get rid of those, to demolish them so they are no longer dragging down the neighborhood, and then to rebuild."
The city’s plan calls for 50 homes to be rehabbed. The other 40 would be demolished and new homes would be built on 20 of the properties within four years. The remaining 20 would be left as vacant lots until market conditions improve and there is a demand for them.

Properties must be purchased within 18 months and everything must be redeveloped by February 2019.
The money awarded to Des Moines is designated for several purposes, including costs for demolition, maintenance of vacant properties, construction and rehabilitation subsidies, wages for temporary program administrators, real estate experts as needed and other expenses.
Target areas for the project are those that are significantly affected by foreclosures. In identifying those most likely to qualify, preference was given to low- to moderate-income areas. There are 25 Des Moines neighborhoods that have been recognized as meeting the criteria.

Dunn said the city began working with local nonprofit housing providers to discuss their interest in the Neighborhood Stabilization Program and city officials are working on a plan to have for-profit groups submit bids.
The idea is to have the housing organizations purchase properties and receive a $25,000 subsidy from the city for rehabilitation of each one. The homes will be sold to low- and moderate-income families.
The plan has a two-fold effect, said Lance Henning, executive director of the Greater Des Moines Habitat for Humanity.

"It will have an impact on the neighborhoods by returning those homes to home ownership and usage," he said. "That’s one key aspect. The other is that it will benefit families by providing new home ownership opportunities for them."
A side effect of the housing crisis has meant that families with lower incomes, who already have few opportunities for home ownership, have even fewer with more restrictive lending regulations, Henning said. The new plan will make available affordable housing in good condition.

No houses have been identified for purchase yet, Dunn said. In January and February, more than 100 Des Moines homes were foreclosed upon. The city estimates that at that rate, about 1,200 properties could see foreclosure in 2009.
"We’ve been tracking foreclosures in Des Moines – every property sold off at a sheriff’s sale, the last step in a mortgage foreclosure," Dunn said. "We’ll be using our database and information from the Polk County sheriff to see what properties would be good candidates for this."

Residents can learn more at a meeting Wednesday in the St. Etienne Room of the Armory building, 602 Robert D. Ray Drive.

Learn about the Neighborhood Stabilization Program:
Des Moines residents are invited to find out more and to offer input about housing that might be eligible for the plan.

MEETING: 7 p.m. Wednesday in the St. Etienne Room of the Armory building, 602 Robert D. Ray Drive.
LEARN MORE: Call David Dunn at 283-4287 or e-mail dmdunn@dmgov.org.

This story was submitted by one of our readers and originally appeared at kcci.com