BELL HILL HOME OWNERSHIP INITIATIVE - PHASE IV:
TOTAL UNITS : 10 HOMEOWNERSHIP : 5 RENTAL : 5
TARGET POPULATION : Five units for low-income (below 80% AMI) and five units for very low-income (below 50% AMI). One unit for a homeless household.
TOTAL DEVELOPMENT COST : $2,941,652
FUNDING : $500,000 City HOME Committed
$80,000 City Lead Paint Committed
$500,000 State HOME/Housing Stabilization Funds Pending
$450,000 State Affordable Housing Trust Funds Pending
$1,085,500 Property Sales
FINANCING : $200,000 CEDAC Pre-Development Loan Committed
$1,500,000 Webster 5/WCHR Construction Loan Committed
The Bell Hill Home Ownership - Phase 4 Initiative is a direct outgrowth of the priority identified by community groups to address the extensive amount of vacant, troublesome properties in this neighborhood. It broadens and strengthens the impact of the former phases and initiatives, which already have created 49 units of affordable ownership and rental housing in this most distressed neighborhood of the CDC’s service area. This project is comprised of a total of five separate parcels, in many cases ones that are adjacent to those completed in the earlier phases. They will be developed into a very high-quality, energy-efficient, two-family homes for low-income and very low-income households, with one rental unit targeted to a homeless household. A combination of new construction and the renovation of existing buildings will transform the currently vacant and problematic sites into beautiful new homes for families and individuals.
Each of the homes in the project will consist of a three-bedroom, 1½ bathroom owner’s unit and a two-bedroom, 1 bathroom rental unit. Sites will include off-street parking and yards. The plans utilize solar panels for the production of electricity, and a variety of “green” materials to help minimize the development’s negative impact on the environment.
A major component of this project is the Employer Assisted Home Ownership Initiative that was established in partnership with UMass Memorial Health Care. This program began two years ago with the CDC’s Phase 3 development. As part of that phase, UMass contributed $250,000, which leveraged an additional $750,000, to create the Bell Hill Home Ownership Fund. This pool of money provides down-payment assistance grants, soft-second mortgages and low-interest improvement loans to those seeking to purchase or renovate homes in Bell Hill.
A portion of the fund is targeted to UMass employees to encourage them to move into the Bell Hill neighborhood. The balance is available to all low-income households. The financial incentives of this program are significant and ensure the continued growth of this neighborhood. To date the fund was utilized for the purchase of eleven homes in the community. This included all seven homes that the CDC sold in its Bell Hill Phase 3 project, three of which were purchased by UMass employees. The funds that remain in this pool will be augmented by an additional contribution by UMass this year. These funds will enhance the marketability and facilitate the sales of all of the homes in the current Phase 4 development.
As part of the CDC’s commitment to the revitalization of the east side, it regularly invests its own capital first into every project that it develops. In Phase 4 the organization already has financed approximately $350,000 of the acquisition and pre-development costs incurred to date with its own money. Currently, the CDC owns all of the properties for the project and has completed all pre-development work. Funding commitments from the City of Worcester, WCHR and Webster 5 are in place. Applications for state funds are pending. Construction is expected to begin in the spring with completion and sales to occur in the late autumn. The sites that are to be developed are listed below.
119 Eastern Ave. is located amid numbers 116, 121, 123 and 125 Eastern Ave., all of which were previously completed and sold to first-time homebuyers by the CDC in Phases 1, 2 and 3. This two-family building was destroyed by fire several years ago and has been a vacant dumping site since then. Plans call for its demolition and construction of a new 2-family home.
22 Catherine St. has been a vacant, troubled building for more than 10 years. The CDC persevered through a combination of legal and financial troubles that encumbered the property to finally acquire it for this project. A full “gut” renovation will create a new 2-family home.
32 Catherine St. is a 6000 sq. ft. vacant lot a few doors down from #22, upon which another new 2-family home will be constructed.
10 Hooper St. is another parcel that the CDC has pursued for a great many years. It was finally purchased this year at an auction held by the City of Worcester. The vacant 6200 sq. ft. lot will now be developed into a new 2-family home.
25 Lyon St. is an existing home that was owned and occupied by an elderly woman for whom the rigors of home ownership and maintenance were becoming too great a responsibility. She sought to relinquish the property and relocate into an elderly housing complex, but without the complexities associated with home sales and temporary relocation while she awaited an opening at the elderly complex. Her community-minded spirit and familiarity with the work of the CDC led her to contact the organization with an offer to sell her home at a greatly reduced price, and a request for assistance with the entire transaction and relocation process. The CDC purchased her home and signed an agreement that allows her to remain in it rent-free until there is vacancy at the complex, which is expected to occur within six months. The CDC will then handle all of the necessary arrangements for her safe and worry-free move.
This project continues the CDC’s concentration on this neighborhood in a way that will strengthen the forward momentum that is already in place. The transformation within this community over recent years is tangible and significant. The blight and unsafe conditions that once existed are now disappearing. New stakeholders are brought into the area with each new home ownership opportunity. This has led to a greater interest among homebuyers and investors to purchase homes and investment property in the community. Phase 4 will broaden this economic, visual and perceptual impact in a very positive manner.
The Bell Hill Home Ownership - Phase 4 Initiative is a 10-unit home ownership project targeted to very low-income (below 50% median income) households. It will create five high-quality, two-family homes through a combination of new construction and the renovation of existing buildings. It is a direct outgrowth of the priority identified by community groups to address the extensive amount of vacant, troublesome properties in this neighborhood. It broadens and strengthens the impact of the former phases and initiatives, which already have created 49 units of affordable ownership and rental housing in this most distressed neighborhood of the CDC's service area. This project is comprised of a total of five separate parcels, in many cases ones that are adjacent to those completed in the earlier phases. They will be developed into a very high-quality, energy-efficient, two-family homes for very low-income households, with one rental unit targeted to a homeless household. will transform the currently vacant and problematic sites into beautiful new homes for families and individuals.
Each of the homes in the project will consist of a three-bedroom, 1½ bathroom owner's unit and a two-bedroom, 1 bathroom rental unit. Sites will include off-street parking and yards. The plans utilize state of the art solar panels for the production of electricity, and a variety of "green" materials to help minimize the development's negative impact on the environment.
A major component of this project is the Employer Assisted Home Ownership Initiative that was established in partnership with UMass Memorial Health Care. This program began two years ago with the CDC's Phase 3 development. As part of that phase, UMass contributed $250,000 of the $300,000 it received from the CDC for the sale of two of its properties for the project. This leveraged an additional $750,000 to create the Bell Hill Home Ownership Fund. This pool of money provides down-payment assistance grants, soft-second mortgages and low-interest improvement loans to those seeking to purchase or renovate homes in Bell Hill.
A portion of the fund is targeted to UMass employees to encourage them to move into the Bell Hill neighborhood. The balance is available to all low-income households. The financial incentives of this program are significant and ensure the continued growth of this neighborhood. It also enables the CDC to target the sale of its homes to households in a much lower income bracket. To date the fund was utilized for the purchase of eleven homes in the community. This included all seven homes that the CDC sold in its Bell Hill Phase 3 project, three of which were purchased by UMass employees. The funds that remain in this pool will be augmented by an additional contribution by UMass and the Massachusetts Housing Partnership this year. These funds will enhance the marketability and facilitate the sales of all of the homes in the current Phase 4 development.