Post by BrianSullivan on Sept 21, 2010 9:27:19 GMT -5
Many threads on this site have been dedicated to the very real issue of neighborhood preservation and restoration in Freehold Borough. Councilman Newman has proposed what I consider one of the most aggressive ideas we have seen to date. I asked him for details and here is what he sent me.
RENTAL PROPERTY CONVERSION PROGRAM. I am asking the council to consider a Grant and Tax Abatement Program for home buyers who convert rental properties (with a history of rentals for 3 years) to owner-occupied family use. The exact details would have to be worked out by council, but here is my proposal as to how one would be able to qualify:
· The exterior of the building and all core systems must be brought up to code.
· The conversion must eliminate all apartments of record.
· Extra kitchens and fire escapes must be removed; public spaces (e.g., entrance and stair halls) must be brought back to original configuration.
· Extra utility service elements must be disconnected and meters removed.
· The property must remain owner occupied for at least five (5) years following the conversion project.
· The property owner must not be delinquent on taxes for the property.
· Grant funds can only be used toward purchase of the property. The funds will be paid at the time of settlement.
· If at any time during the five (5) year period the property ceases to be owner occupied, the entire original grant amount shall become due.
· Applicants must sign a contract at settlement regarding the grant and/or abatement. Upon disbursement of grant funds, a lien would be placed on the property for a period of five (5) years.
· Applicants must maintain appropriate homeowner’s insurance on the property at all times and provide an insurance certificate, naming the borough as an additional insured at the time of settlement.
· Conversions of rental units into condo units are not part of this program.
· Possible deed restrictions on converted properties so they do not revert back into rentals.
John told me that the council is receptive to this in theory, but wants to look into the potential financial impact.
In the past we have seen other programs with similar intended affects proposed. One is the "live where you work program." While that is a good program that we should employ here in the borough, the salary caps in place on that will not be a benefit to some of the homes that really need the help.
A couple of years ago, the Historic Preservation Commission also sent a proposal to the council that would have aided owners of historic homes in repairing and keeping up their homes. That proposal could have enticed people to stay here ( instead of selling to landlords) and maybe brought more people in to buy historic homes. Without hesitation, Councilman George Schnurr said no way to that program, "no tax cuts for the rich." ( a myth) The financial aspects were never considered and the program has not been discussed publicly since then. (I guess we are better off with the landlords? )
No matter what, serious consideration will have to be given to Newman's proposals. There have been no other ideas to help save neighborhoods that have worked. In a time when we see serious concerns hitting areas like Court Street and Monument Street, we have to try something. Newman's program would go a long way to bringing much needed economic balance to this town.
RENTAL PROPERTY CONVERSION PROGRAM. I am asking the council to consider a Grant and Tax Abatement Program for home buyers who convert rental properties (with a history of rentals for 3 years) to owner-occupied family use. The exact details would have to be worked out by council, but here is my proposal as to how one would be able to qualify:
· The exterior of the building and all core systems must be brought up to code.
· The conversion must eliminate all apartments of record.
· Extra kitchens and fire escapes must be removed; public spaces (e.g., entrance and stair halls) must be brought back to original configuration.
· Extra utility service elements must be disconnected and meters removed.
· The property must remain owner occupied for at least five (5) years following the conversion project.
· The property owner must not be delinquent on taxes for the property.
· Grant funds can only be used toward purchase of the property. The funds will be paid at the time of settlement.
· If at any time during the five (5) year period the property ceases to be owner occupied, the entire original grant amount shall become due.
· Applicants must sign a contract at settlement regarding the grant and/or abatement. Upon disbursement of grant funds, a lien would be placed on the property for a period of five (5) years.
· Applicants must maintain appropriate homeowner’s insurance on the property at all times and provide an insurance certificate, naming the borough as an additional insured at the time of settlement.
· Conversions of rental units into condo units are not part of this program.
· Possible deed restrictions on converted properties so they do not revert back into rentals.
John told me that the council is receptive to this in theory, but wants to look into the potential financial impact.
In the past we have seen other programs with similar intended affects proposed. One is the "live where you work program." While that is a good program that we should employ here in the borough, the salary caps in place on that will not be a benefit to some of the homes that really need the help.
A couple of years ago, the Historic Preservation Commission also sent a proposal to the council that would have aided owners of historic homes in repairing and keeping up their homes. That proposal could have enticed people to stay here ( instead of selling to landlords) and maybe brought more people in to buy historic homes. Without hesitation, Councilman George Schnurr said no way to that program, "no tax cuts for the rich." ( a myth) The financial aspects were never considered and the program has not been discussed publicly since then. (I guess we are better off with the landlords? )
No matter what, serious consideration will have to be given to Newman's proposals. There have been no other ideas to help save neighborhoods that have worked. In a time when we see serious concerns hitting areas like Court Street and Monument Street, we have to try something. Newman's program would go a long way to bringing much needed economic balance to this town.
