Ontario to purchase 15 units to provide housing for the homeless
The Ontario City Council has approved a loan to acquire and rehabilitate a 15-unit property on Francis Street for Mercy House to provide housing for homeless people.
In the agreement, the council agreed to lease the 15 two-bedroom units to Mercy House.
"This is significant because it will allow us to continue to provide affordable housing," said City Manager Greg Devereaux.
When the city entered into a partnership with Mercy House in 2005, the main objectives were to provide emergency shelter as well as transitional and permanent housing, said Julie Bjork, the city's housing manager.
Until the agreement was made last week, Mercy House had only 14 units of permanent housing available, she said.
In the agreement, the council agreed to lease the 15 two-bedroom units to Mercy House.
"This is significant because it will allow us to continue to provide affordable housing," said City Manager Greg Devereaux.
When the city entered into a partnership with Mercy House in 2005, the main objectives were to provide emergency shelter as well as transitional and permanent housing, said Julie Bjork, the city's housing manager.
Until the agreement was made last week, Mercy House had only 14 units of permanent housing available, she said.
"Our goal is to have a full-service continuum of care," Bjork said.
"It's critical that a family can have transitional housing to permanent
housing to help them."
Aside from offering affordable housing, it will also help generate revenue for homeless services, Bjork said.
The city used federal funds for the loans.
The net from rent will be about $98,000 per year.
"Any net from the properties will be used for homeless services and homeless shelter area in the city," Bjork said.
The units are occupied, and the city is trying to minimize the impact on those living there, she said.
An amendment has been made between the city and Mercy House regarding their Home Investment Partnership agreement.
The amendment will direct $750,000 from federal funds to Mercy House. The funds can be used for multi-family property and vacant land for the development of multi-family rental housing.
At last week's meeting, the council also approved the guidelines the city will have to follow when acquiring the defaulted properties using Neighborhood Stabilization Program funds.
In response to the mortgage crisis affecting many communities, the federal Department of Housing and Urban Development approved a program in March which directs $73 million in funding.
Under that HUD program, funding will be given to cities to purchase foreclosed properties that could cause blight to the community, Bjork said.
The city has been awarded $2.7 million and of that has directed $1.9 million to use in conjunction with Mercy House on multi-family properties.
Among the guidelines the city will have to follow:
Properties must have a minimum purchase discount of 15 percent of the appraised value.
The property must be unoccupied.
The city's housing agency must have sufficient funds available for the acquisition and rehabilitation of the property.
liset.marquez@inlandnewspapers.com
Aside from offering affordable housing, it will also help generate revenue for homeless services, Bjork said.
The city used federal funds for the loans.
The net from rent will be about $98,000 per year.
"Any net from the properties will be used for homeless services and homeless shelter area in the city," Bjork said.
The units are occupied, and the city is trying to minimize the impact on those living there, she said.
An amendment has been made between the city and Mercy House regarding their Home Investment Partnership agreement.
The amendment will direct $750,000 from federal funds to Mercy House. The funds can be used for multi-family property and vacant land for the development of multi-family rental housing.
At last week's meeting, the council also approved the guidelines the city will have to follow when acquiring the defaulted properties using Neighborhood Stabilization Program funds.
In response to the mortgage crisis affecting many communities, the federal Department of Housing and Urban Development approved a program in March which directs $73 million in funding.
Under that HUD program, funding will be given to cities to purchase foreclosed properties that could cause blight to the community, Bjork said.
The city has been awarded $2.7 million and of that has directed $1.9 million to use in conjunction with Mercy House on multi-family properties.
Among the guidelines the city will have to follow:
Properties must have a minimum purchase discount of 15 percent of the appraised value.
The property must be unoccupied.
The city's housing agency must have sufficient funds available for the acquisition and rehabilitation of the property.
liset.marquez@inlandnewspapers.com
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