New Centerville Housing Projects
6/30/10 by Bill Hansen - Greg Brewers continues to work on quiet title action so we can close on 430 Dakota Street property. We advertised for bids in the Centerville Journal and the Star the last two weeks of June. We will open bids on July 7th and will schedule our closing as soon as the quiet title action is complete. The Governor's house should be ready in a couple months.
I traveled to Pierre on June 24th to request financing from South Dakota Housing Development Authority for our spec house at the Millennium Addition. The SDHDA board of directors approved our request of $65,000 for one half of spec house. Gene Wenstrom confirmed that Hanson Communications will provide the other half of financing. Hanson Communications will have first mortgage with SDHDA having a second. We hope to close on the property and begin construction in July.
I plan to complete National Development Council's Housing Finance Certification program the week of July 12th through July 16th in Sioux Falls. This will be the final section of a four class course that I began last July. It is excellent training in single family and rental housing finance.
3/28/10 by Bill Hansen - The City Council & Centerville Development Corporation approved a resolution, as required by SDHDA, to purchase 430 Dakota Street. We are awaiting appraisal from Doug Stanage and will schedule a closing with Turner County Title Company in April. We will then work on demolition, and replacement with governor's house.
I participated in the National Development Council's Housing Finance Class in Sioux Falls, March 3rd through March 5th. This class dealt with using computer spreadsheets in housing finance analysis. The fourth and final class in this Housing Finance Professional Certification Program is scheduled for mid July.
Friday, January 08, 2010 by Bill Hansen - We closed on our first Neighborhood Stabilization Program, NSP, rehab house, located at 1201 Vermillion Street. The house was purchased on 7/17/09, rehabbed and sold on 11/30/09. The regulations required that we sell to someone at the 80% AMI at appraised value or total cost, whichever was less. The house was sold to Brian Hansen at the appraised value of $94,000. Brian has been interested in purchasing this house since we acquired it. In fact, he also submitted a bid to HUD when our bid was accepted in April, 2009. We were able to pay the Sioux Empire Housing Partnership $2,000 in consulting fees and received a net profit of $4,575.98 to the Centerville Development Corporation. Below are some before and after pictures of the rehabed property.
I met with the Turner County Commissioners on 12/21/09 and approached them about settling on the 430 Dakota Street property. This NSP application was originally with the Centerville Development Corporation, but was transferred to the City of Centerville by South Dakota Housing, SDHDA, on November 10th. The County will settle for $2,200 out of $5,069.71 of delinquent taxes if the City will waive their special assessments of $2,675 in snow removal and mowing expenses. I contacted Turner County Title about preparing a title commitment on 12/24/09. I will need a motion by the City to accept Turner County's offer, so we can acquire the property and begin the construction project.
The National Development Council, NDC, scheduled their third course in their four course series in the Housing Development Finance Professional Certification Program. This course is entitled Computer Spreadsheet Analysis for Housing and will be held in Sioux Falls, March 3 - 5th. I again plan to attend this class as I continue to work toward the certification.
Friday, October 3, 2009 by Bill Hansen - We are making very good progress on our NSP rehab housing project, located at 1201 Vermillion Street. Most of the exterior work is complete; with the shingling, new windows, painting, and siding almost complete. If you haven't driven past it lately, I think you will be impressed. It appears we will stay under our budget of $115,000 and will complete ahead of schedule, so that the house may be sold prior to the expiration of the $8,000 first-time home buyer tax credit on November 30th. South Dakota Housing Development Authority (SDHDA) tells me this will be their first rehab project to be completed under the Neighborhood Stabilization Program (NSP). NSP's rules require us to sell the home to someone under the 80% annual median income (AMI). The challenge is meet the AMI requirement and also qualify for a mortgage high enough to cover our costs.
South Dakota Housing's Board of Directors will meet this month to transfer our conditional commitment from the Centerville Development Corporation to the City of Centerville. They will also extend our commitment period an additional month to avoid complications in dealing with the prior owner's 180 day redemption period. This project will include the demolition and redevelopment of 430 Dakota Street. Our plans include replacing with a governor's house, with basement and two car garage. This home must be sold to someone below the 50% AMI.
Saturday, August 8, 2009 by Bill Hansen - We closed on our NSP rehab house with HUD on July 17th. We are presently working with local contractors on finalizing bids for the rehab project. We have had several local people express an interest in purchasing the house from us. We are presently working with Geo-Tech to make sure we are in compliance with lead-based paint and asbestos management guidelines. Most houses built before 1970 have lead-based paint and many have asbestos material somewhere in the house. The house we purchased was built in 1899.
We are continuing to work with the Turner County Treasurer's office on our NSP reconstruction house project. As I reported previously, Turner County would like to accept a settlement from the City of Centerville to satisfy the delinquent taxes. The County is trying to decide if they can legally transfer the property to both the City & Development Corp, or if they can only transfer to the City. If it is the latter, South Dakota Housing would need to transfer the NSP application to the City rather than the Development Corp. The City would then need to decide whether they would want to accept it. I would continue to implement the project regardless if the City or the Development Corporation is the actual applicant. It gets a little more complicated in that the previous owner still has a 180 day redemption period in which they can repurchase the property. Our NSP period expires about 15 days before their redemption period expires.
I attended the National Development Council's (NDC) Home Ownership Finance Class at Citibank from July 7th through July 10th. The class was excellent! This was the first of a four series course sponsored by South Dakota Housing and the South Dakota Community Foundation. The classes involve; home ownership finance, rental housing development finance, computer spread sheet analysis for housing and problem solving and deal structuring. If successfully completed (including participating in class projects and passing of tests), the student will receive a Housing Development Finance Professional Certificate. Since housing is such a big part of our economic development strategy, I feel this course will be very beneficial in helping us realize our housing goals. The next class is in Rapid City the last week of September. The tuition cost of this class is free to us because of the sponsorships.
