A new home: City OKs extra financing for home rehab


City Councilman Bill Lewis didn't appear to be in favor of the housing rehab project at last week's workshop, but the item was unanimously approved Tuesday night. FILE PHOTO
City Councilman Bill Lewis didn't appear to be in favor of the housing rehab project at last week's workshop, but the item was unanimously approved Tuesday night. FILE PHOTO
  • Palm Coast Observer
  • News
  • Share

Dorothy Zirkelbach’s home in the Palm Harbor section of Palm Coast will soon be demolished. Then it will be rebuilt. And she likely won’t be paying a penny.

Zirkelbach’s home in the C-section will be the latest project in the Housing Rehabilitation Program as part of the city’s Community Develop Block Grant. The city received $750,000 for the rehab program, which is designed to provide financial assistance to low-income homeowners who need to address code and housing quality problems.

"If the homeowner’s insurance provides any payment under the claim, it will be applied to the rebuild," Beau Falgout, senior economic planner for the city, wrote in an email. "Our program does not require a buyer contribution, since the applicants are low income. A lien will be placed on the property for 15 years and if at any time the home is no longer the homeowner’s primary residence, then the lien must be repaid in full."

In May 2011, the City Council approved the Housing Assistance Plan, which outlines how city staff should manage the grant program. The maximum allowable expenditure of the CDBG funds under the approved guidelines is $87,500 for a three-bedroom replacement home.

However, Zirkelbach’s home has major structural issues and needs to be demolished and rebuilt, rather than the typical rehabilitation. And because the city’s’ Land Development Code stipulates minimum home size, garage, landscape and architectural requirements, the lowest bid for the demolition and replacement of the home came in at $127,139.50.

The City Council unanimously approved the increase at Tuesday’s regular meeting.

Assistance provided is secured through a deferred payment loan to meet long-term affordability requirements. The grant, according to city documents, requires a minimum of 10 housing units to be assisted through the program. To date, the city has completed rehab on nine housing units and will begin rehab on three more soon, according to Falgout.

"Hopefully an abandonment of blight will help with that neighborhood as a whole,” he said.

It’s unanimous: City to commence Long Creek nature project
The City Council on Tuesday also unanimously approved to spend $1.5 million with Ormond Beach-based Saboungi Construction Inc. to begin Phase 1 of the Long Creek Nature Preserve Park.

The park, which will be nestled between College Waterway and Long Creek, near the Palm Coast Yacht Club, will be accessible through Palm Harbor Parkway and, once developed, will provide direct access to the Intracoastal Waterway. When complete, the park will include multipurpose trails, classroom facilities, a canoe-and-kayak launch and picnic tables.

The city originally budgeted about $1,215,000 for the project, but the low bid came in around $1,458,000. To cover the shortfall, the city will dip into its park impact fees fund.

 

Latest News

×

Your free article limit has been reached this month.
Subscribe now for unlimited digital access to our award-winning local news.