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NEWS INFORMATION FROM

THE OFFICE OF MAYOR STEPHEN R. REED
City of Harrisburg
King City Government Center
Harrisburg, PA 17101-1678
Telephone: 717.255.3040

FOR IMMEDIATE USE
7 November 2008

 

MAJOR UPTOWN HOUSING UPGRADE AND RENOVATION PROJECT FIRST PHASE COMPLETED; HOMES FOR SALE

Harrisburg, PA – Mayor Stephen R. Reed and officials from the U.S. Department of Housing and Urban Development (HUD) today dedicated a major city-sponsored housing upgrade and renovation project that has included the acquisition and current or future rehabilitation of over 25 properties, the demolition of 23 blighted properties, and an overall investment of $2,046,328 in a targeted Uptown area.

Ten of the rehabilitated homes are now for sale at very reasonable listing prices, four more units are currently being acquired through the Vacant Property Reinvestment Board, and one city block has also been cleared for development.

Reed said the project, which has focused on the "target area" of the 600 blocks of Oxford and Schuylkill Streets, as well as the 2400 and 2500 blocks of N. 6th Street and the 2300 block of Jefferson Street, is part of an overall city-wide housing investment of $13,476,529.93 in the past five years. Improvements to this and other areas have included lead abatement, housing demolition and rehabilitation, new sidewalks, light fixtures, and a host of other improvements. Funding for this project came mostly from HUD Community Development Block Grant (CDBG) monies that are awarded to the city annually through a federal entitlement program.

The target area is close-by to a series of other neighborhood-wide residential developments that stretch from N. 6th and Maclay Streets to south of N. 6th and Reily Streets, including Governor’s Square (293 units), Capitol Heights (181 units) and Market Place Townhomes expansion (71 units).

Reed said the housing work being dedicated today "is a further extension of very significant residential renewal and homeownership opportunities that extend along and near to most of the Sixth Street Corridor. With the upcoming expansion of N. 7th Street from Reily to Maclay Streets from two to four lanes, we will see even more residential demand and growth in this area."

Reed said, "What we dedicate is but a part of a far larger comprehensive residential development program undertaken by the city. Since 1982, the city has been engaged, as the prime developer or as a co-developer or investor, in accomplishing the new construction or rehabilitation of over 6,000 residential units. This makes the city arguably the largest residential real estate developer in Central Pennsylvania.

"The effects have been many. A significant number of persons and families now own their own home for the first time. Many renters have become homeowners. Areas where there once was block after block of empty structures are now teeming with new investment, homes and people. The affordability of city-based homes and their proximity to the park, restaurant and employment amenities and opportunities we have also created has spurred a back-to-the-city movement, especially among young professionals. Through our rehabilitation work, many lower-income and senior citizen homeowners have been able to keep their homes and not have to abandon them," Reed said. "This is true progress."

One of the funding sources for housing work are the CDBG monies. Reed said the city has invested $13,476,529.93 in CDBG funds city-wide, including $6,965,633.35 in the Uptown area (north of Reily Street) and over $2,000,000 in the "target area" since 2003, including:

  • $6,120,516.16 on 53 units citywide from the city’s Homeownership Opportunities Program (HOP), including $4,256,873.02 on 37 Uptown units and $1,869,926.05 on 14 "target area" units

  • $1,329,940.92 on 82 units citywide from the city’s Home Improvement Program (HIP), including $453,629.28 on 27 Uptown units and $72,901.98 on seven "target area" units. Just this week, the HIP program opened its application wait list with a desire to assist homeowners to remedy code violations in their homes.

  • $132,963 on 29 units citywide from the city’s Homeowners Emergency Loan Program (HELP), including $56,739 on 12 Uptown units and $15,000 on three "target area" units. The HELP program addresses urgent needs of Harrisburg homeowners, including the restoration or replacement of roofing, electrical, and heating systems for homeowners in need.

  • $1,410,356.54 on 126 units citywide from the city’s Lead Hazard Control Program, including $485,628.45 on 43 Uptown units

  • $2,399,075.18 on 156 units citywide from the city’s Demolition Program, including $1,022,094.28 on 70 Uptown units and $126,802.21 on 20 "target area" units

  • $1,184,508.81 on the acquisition and rehabilitation of nine citywide units through the city’s Community Housing Development Organization and $146,500 on the acquisition of 28 "target area" units

  • $185,000 on 14 loans from the city’s Micro Enterprise Loans program for small businesses resulting in the creation of 34 jobs, including $66,500 for six Uptown loans resulting in 12 jobs created

  • $499,499.83 on the Governor’s Square project from the city’s Infrastructure Improvements program and $124,669.49 on the MarketPlace Townhomes. The extension of Moore Street in the Governor’s Square neighborhood has significantly reduced crime in the Governor’s Square community by eliminating what was once a haven for illicit activity in the area.

"This funding helps communities to breathe new life into neighborhoods and make them better places to live and work," said HUD Regional Director John Bravacos. "Whether it is infrastructure improvements or providing safe, decent and affordable housing, HUD is committed to revitalizing, stabilizing and strengthening communities."

Reed said eight of the 18 rehabilitated homes in the Uptown and "target area" have been sold or are under contract and said the following homes are currently for sale at the listed prices below. Other homes will be listed for sale as work is completed.

Target Area for Sale:

  • 609 Oxford Street ($69,900 with 6% seller help)
  • 612 Oxford Street ($66,900)
  • 613 Oxford Street ($66,900)
  • 614 Oxford Street ($66,900)
  • 616 Oxford Street ($66,900)
  • 619 Oxford Street ($66,900)
  • 2521 N. 6th Street ($74,900)
  • 2523 N. 6th Street ($74,900)

Other Rehabilitated Units for Sale:

  • 1420 N. 4th Street ($89,900)
  • 88 N. 17th Street ($64,900 with 6% seller help)
  • 90 N. 17th Street ($64,900 with 6% seller help)

Rehabilitation Underway / Future Rehabs:

  • 2332 N. 6th Street
  • 2519 N. 6th Street
  • 2435 N. 6th Street
  • 2433 N. 6th Street
  • 2308 Jefferson Street
  • 340 Harris Street
  • 77 N. 17th Street
  • 23 S. 17th Street
  • 338 S. 17th Street

Reed said that since 1982, the city has invested over $200 million in federal, state and city allocations into the restoration and new construction of city homes and communities, the upgrade of sidewalks, streetlights and trees, and the preservation of historic neighborhoods. City investment has spurred hundreds of millions of dollars in private investment. Overall, more than $4.5 billion in economic development has occurred in Harrisburg in this timeframe, involving not only residential but commercial, industrial and infrastructure investment.

"Harrisburg is a vastly different city than it was in the early-1980s, when it was listed by the federal government as the second most-distressed city in America," said Reed.

For more information on the city’s many housing rehabilitation programs or to inquire about any of the properties listed for purchase, visit the city’s website at www.harrisburgpa.gov or call (717) 255-6480.