NEWS INFORMATION FROM

THE OFFICE OF MAYOR STEPHEN R. REED
City of Harrisburg
King City Government Center
Harrisburg, PA 17101-1678
Telephone: 255.3040

FOR IMMEDIATE USE
26 June 2002

NEW HOMEOWNERSHIP CONSTRUCTION PROJECT BEGINS IN UPTOWN

Harrisburg, PA — A new residential housing construction effort was launched today as Mayor Stephen R. Reed, state Department of Community and Economic Development’s Executive Director, Office of Community Services and Center for Community Building, Donald Hershey, and officials from the Wesley Union Union Community Development Corporation broke ground for a new low to moderate income housing development in uptown Harrisburg. Located at 2202–2204 N. 5th Street and 525-527 Emerald Street, the new homes are the first of many to be constructed as part of the Wesley Union Homeownership Project, which when its first phase is fully completed will result in eight new single-family, owner- occupied residential units, with more planned for the future.

Reed said the nearly half million-dollar project represents a unique partnership between the city, the Wesley Union Development Corporation, and the state Dept. of Community and Economic Development (DCED). The state is providing $100,000 from DCED’s Communities of Opportunities Program funding and the city has contributed over $250,000 in CDBG monies and other in-kind services. The Communities of Opportunties Program provides grants to support redevelopment of core communities through affordable housing facilities or infrastructure.

“The Communities of Opportunities Program provides DCED and local officials with flexibility to assist communities with their downtown revitalizations,” said DCED Executive Director, Donald Hershey. “The program will help provide affordable housing that will be a positive addition to this city.

The Mayor said the project will be completed in two parts, with the first phase to include the construction of three, single family homes at 2202-04 N. 5th Street and 525–27 Emerald Street. Phase Two, to begin upon their completion, will include the construction of four new homes at 506,508,510 and 512 Emerald Street.

Reed said the new homes will be offered for sale to persons whose annual income falls below 80% of the median family income as established by the U.S. Dept. of Housing and Urban Development. The Greater Harrisburg Fair Housing Council, under a contract with the city, will also provide access to special funding programs that help to cover buyer closing costs, down-payments and other costs, and the city’s unique Mortgage Credit Certificate Program can reduce a home- owner’s monthly mortgage costs to far less than what most now pay in monthly rent today.

The Mayor said McKissick Associates of Harrisburg is providing design and architectural services, while Dorgan and Zuck serve as General Contractors. Construction management services will be provided by co-developer Susquehanna Housing Initiatives.

Reed said he expects this type of new residential construction activity to expand in the Uptown area.

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