On August 24, the U.S. Department of Housing and Urban Development (HUD) informed the City of Granite Falls by letter that it would have first dibs on the Riverview Apartment complex prior to it being placed on the auction block.
The letter states that the first foreclosure sale is anticipated within 90 days of the date in which Granite Falls officials received the document and that a “redevelopment plan” from City is due within fifteen days. Information required in the plan must detail the proposed ownership entity, method of financing and future use of the property. As a suitable developer has not yet been identified, it is likely the City will appeal the fifteen day time frame.
HUD has set the purchase of the apartments at $622,000 while also mandating that any lead-based paint, asbestos and mold hazards be abated within 12 months of the transfer of title. HUD estimates that those repairs will run $128,165, bringing the total cost of the project to $750,000 prior to any facility upgrades that are believed necessary to create a positive cash flow.
City officials have indicated that they want to be active participants in the process of locating a new owner so to ensure that the facility is well taken care of. In this vein, the EDA has funded a housing study that will indicate the need for additional housing as well as what amenities prospective occupants are looking for in a residence. The results of this study are expected during the second week of September.
This poses some logistical issues as the deadline for the 15-day redevelopment plan falls on September 8, providing little or no time for the City to analyze the results of the housing study and then present them to potential buyers. Ideally, EDA director Dennis Van Hoof said that the City would purchase the property and then immediately sell it to a private or not-for-profit entity.
Van Hoof said the City and EDA would likely put together a marketing plan and expressed optimism that the City could find a buyer prior to the date of auction with the approval of HUD.
The Riverview Apartments will continue to operate while the issues surrounding new ownership are hammered out. When the sale occurs, residents will be able to stay at the same location or could receive a Section-8 voucher that is applicable to other facilities. Van Hoof said he expected it to be a slow process and that the changeover might take two to three years.
|
|
|
On August 24, the U.S. Department of Housing and Urban Development (HUD) informed the City of Granite Falls by letter that it would have first dibs on the Riverview Apartment complex prior to it being placed on the auction block.
The letter states that the first foreclosure sale is anticipated within 90 days of the date in which Granite Falls officials received the document and that a “redevelopment plan” from City is due within fifteen days. Information required in the plan must detail the proposed ownership entity, method of financing and future use of the property. As a suitable developer has not yet been identified, it is likely the City will appeal the fifteen day time frame.
HUD has set the purchase of the apartments at $622,000 while also mandating that any lead-based paint, asbestos and mold hazards be abated within 12 months of the transfer of title. HUD estimates that those repairs will run $128,165, bringing the total cost of the project to $750,000 prior to any facility upgrades that are believed necessary to create a positive cash flow.
City officials have indicated that they want to be active participants in the process of locating a new owner so to ensure that the facility is well taken care of. In this vein, the EDA has funded a housing study that will indicate the need for additional housing as well as what amenities prospective occupants are looking for in a residence. The results of this study are expected during the second week of September.
This poses some logistical issues as the deadline for the 15-day redevelopment plan falls on September 8, providing little or no time for the City to analyze the results of the housing study and then present them to potential buyers. Ideally, EDA director Dennis Van Hoof said that the City would purchase the property and then immediately sell it to a private or not-for-profit entity.
Van Hoof said the City and EDA would likely put together a marketing plan and expressed optimism that the City could find a buyer prior to the date of auction with the approval of HUD.
The Riverview Apartments will continue to operate while the issues surrounding new ownership are hammered out. When the sale occurs, residents will be able to stay at the same location or could receive a Section-8 voucher that is applicable to other facilities. Van Hoof said he expected it to be a slow process and that the changeover might take two to three years.
