Tag Archives: Hardest Hit Fund

IHCDA Outlines $60M Plan to Demolish Abandoned Houses

28 Oct

by Ken Davidson

 

Karen Freeman-Wilson

Mayor Karen Freeman-Wilson addresses a crowd at IHCDA informational session

Representatives of the Indiana Housing and Community Development Agency tonight announced a plan to divert $60M from the Hardest Hit Fund to demolish abandoned homes throughout the state.  Under the plan, Indianapolis and Lake County would share in approximately $16M in federal funds.  The packed house at the Gary YWCA was led by State Senators Earline Rogers and Jim Merritt, Mayor Karen Freeman-Wilson and IHCDA representatives.

IHCDA Coordinator Ryanna Binder presented a matrix to be used by local governments to request funds under the program.  Criteria such as habitability, number of police calls and potential uses for the vacant land would all be weighted and utilized to determine which houses are scheduled for demolition.

Lake County Treasurer John Petalas was present and stated that there are more than 10,000 vacant or abandoned homes in Gary which are in need of demolition.  This statistic may be flawed, however, as it apparently comes from a statistic prepared by the County which includes vacant lots.  Mayor Freeman-Wilson has stated it would cost approximately $6,600 per home for demolition.  The program would allow up to $15,000 for acquisition and demolition of properties.  Under the formula, Gary could demolish approximately 300 homes if the funds are distributed based on population.   Mayor Thomas McDermott, the Chair of the Lake County Democratic Party, has suggested the State provide $65M to Gary to demolish abandoned homes.

Officials stated the Federal Government would still have to approve the use of funds.  Submissions for demolition could begin as early as January if all approvals are obtained.  There were no representatives from other cities or towns in Lake County at the meeting although they would be eligible to vie for the funds.

During question and answer sessions, the comments primarily centered on city enforcement of codes and maintenance of abandoned properties as well as rights of way.

Indiana Housing Agency to Host Forum on Abandoned Homes

23 Oct
Gazette Staff


The Indiana Housing and Community Development Authority and a group of bi-partisan elected officials including Mayor Karen Freeman-Wilson and State Senator Earline Rogers will host a public forum to address blighted, vacant and abandoned homes.  The forum will be held October 28, 2013 at 6:00 p.m. and the public is encouraged to attend.
Public forum to be held October 28, 2013 at 6 p.m. in Gary.  The event will be held at the YWCA of Northwest Indiana, 150 West 15th Avenue, Gary, Ind.

The Hardest Hit Fund is a national program available in 18 states and the District of Columbia. Indiana was awarded more than $221 million under the Hardest Hit Fund and is targeting low- to moderate-income homeowners whose primary residence is in any county in Indiana. The State of Indiana, through IHCDA, is exploring the use of a portion of the Hardest Hit Funds to demolish blighted and abandoned homes that are beyond repair. The goal is not simply to demolish abandoned homes, but to stabilize property values in Indiana communities. The proposed partnership between IHCDA and Indiana municipalities would allow communities to demolish blighted properties and offer a variety of end uses for the newly cleared properties including green space and redevelopment. IHCDA, Lt. Governor Sue Ellspermann, IHCDA's Board Chair, Mayor Freeman-Wilson, Senator Rogers and Senator Merritt believe that the demolition of abandoned and blighted homes would be a significant step toward rebuilding Hoosier communities. Since IHCDA's announcement that it was exploring the use of Hardest Hit Funds to eliminate blighted and abandoned properties, many have expressed concern that doing so might detract from the mission of helping struggling homeowners avoid foreclosure. IHCDA would like to reassure the public that it is committed to using the majority of Hardest Hit Funds to help individual homeowners in need. As of September 30, 2013, more than 2,250 homeowners have received approximately $24 million in Hardest Hit Fund mortgage payment assistance; and another $49 million has been set aside to provide mortgage payment assistance to approved homeowners currently enrolled in the program.
If you are unable to attend the public hearings, please submit written comments to feedback@ihcda.in.gov<mailto:feedback@ihcda.in.gov> by Monday, Dec. 2, 2013.