CSET will do rehab work on foreclosed homes

On Tuesday night during its regularly scheduled meeting, the City Council voted 3-2 to enter into an agreement with the Community Services and Employment Training, Inc. (CSET) to provide training and jobs for local residents to fix up the foreclosed homes the city will buy with federal stimulus money.

The homes will require minor to substantial rehab work ranging from $12,000 to $29,000 each to make them marketable to income eligible residents. The costs of the repairs will be added to the purchase prices, which will be recycled to continually purchase homes in the next five years.

It is part of a nationwide plan to breath new life into neighborhoods hit by the foreclosure crisis under the Housing and Economic Recovery Act of 2008. Locally, the Neighborhood Stabilization Program has drawn some controversy by residents who frown upon the city dipping its hands into the real estate business. Councilmen Brian Ward and Cameron Hamilton are among those opposed to the program.

“These are not upscale homes, they can be nice homes, but it is definitely not limited to low income buyers,” Development Associate Denise Marchant said. “It will be more like moderate incomes.”

On Tuesday, the city’s Community Development Department also put in bids on four homes, and is waiting to hear back on those offers. Buyers will be required to have incomes equal to 120 percent or less of the local median, which would be nearly $70,000 for a family of four. The city’s other home buyer assistance programs set a much lower bar at 80 percent of the median income.

It has been a year since the City Council opted to enter into a joint powers agreement with Tulare County in order to tap into $3.92 billion in funds, which were distributed to the state and appropriated to multiple local jurisdictions in California. Porterville was awarded $700,699.

Community Development staff has until March 31 to identify the houses it will buy — there will likely be five initially— and submit its proposal.

Some of the money has been set aside for the rehabilitation work, which will be completed by members of the Sequoia Community Corps, a branch of CSET — a nonprofit organization. The Sequoia Corps has benefitted Tulare, Kings and Kern Counties for the past 20 years by providing more than 4,000 young adults with job training and educational opportunities.

Porterville’s Community Development Department has also set aside some funds to help home buyers with closing costs.

Residents living in the unincorporated areas of the Tulare County will also have the ability to take advantage of the Neighborhood Stabilization Program. Prospective homeowners can receive secondary financing for down payment and some closing cost assistance by purchasing a foreclosed property within designated areas.

Qualifying residents may receive a 45 year secondary mortgage loan for up to 49 percent of the purchase price with zero percent interest and no monthly payments.

Tulare County has received $1.1 million to use towards its home buyer program, and is currently accepting applications for those who earn 120 percent of the area’s median income. For more information on the county’s Neighborhood Stabilization Program, contact Melissa Looney at Self-Help Enterprises 802-1649.

For more information on how to take advantage of Porterville’s Neighborhood Stabilization Program, contact the Community Development Department at 782-7460.

Contact Jenna Chandler at 784-5000, Ext. 1050, or jchandler@portervillerecorder.com.