Minutes 02/14/1989 - Laserfiche WebLink

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TUESDAY, FEBRUARY14, 1989 describe the variances that are granted. Accordingly, we have the mechanism in place to negotiate with a developer in terms of street and utility improvements, which offers the opportunity of tailoring improvements to meet specific conditions but reducing cost when conditions justify a reduction in the standards for the required improvements. Encourage large land owners in the City to develop additional lots in the City, especially where there seems to be a need in the moderate and higher income level areas. This would provide the opportunity for new housing construction in areas where buyers can afford to purchase lots and hous- ing and apply the needed financing. Except for tailoring improvement design to each particular subdivision,. I see no need to amend the Improvement Section of the Subdivision Ordinance to increase the City's participation in the cost of street and utility improvements. As a result of conferences with an official of the Virginia Department of Housing and Community Development, it has been determined that Community Development Block Grant funds can be used to acquire land and install street and utility im- provements for the purpose of constructing new housing for low and moderate income people. Under this program the City, as a political subdivision, could apply for and, if approved, receive grants to cover the cost of such projects, including the cost of engineering and administration. The grant application could also in some instances include an allowance for the provision of needed recreational facili- ties in the area to be developed. The City could administer the program through the Housing Services Department, through the Redevelopment Housing Authority or through a contract with a Foundation. Under this arrangement the City or its agent would contract with a home builder such as Nationwide or American Standard Homes to construct the housing units with the lots being donated by the City to the buyer at no cost. The buyer would finance the house through a loan from VHDA at an interest rate in effect at that time which, I am told, is now 8%. The closing cost can be included in the financing package and paid as a part of the interest princi- pal payment over a 30-year period; however, the buyer would have to come up with the down payment under all circumstan- ces. I believe that this is desirable, which is evidence of some financial stability. A political subdivision in Virginia cannot apply for more than two grants in a given year totaling $1,000,000. Since we have one grant covering our housing rehabilitation project in the Fayette Street area, and we are applying for $300,000 to construct facilities to serve the nursing home in East Martinsville, we could not apply again until one of those projects has been completed.