Town exploring housing grant possibilities

by Dan McClelland

The town is exploring new housing grant opportunities to help property owners fix up their houses, in the fashion the community’s many Housing and Urban Development (HUD) Small Cities Block Grant programs have in the past.

Councilman John Gillis explained to his colleagues this month some of the housing grant programs now available.

He said earlier this month he met with the town’s new economic development director, Melissa McManus and Michelle Capone of the Development Authority of the North Country (DANC) who runs its housing arm- writing and administering grants.

“We discussed possible avenues that Tupper Lake could explore, and it really comes down to the nuances between which avenue you take versus what the requirements are.”

He said in some housing assistance programs, “they take a mortgage on the property if you are awarded a grant, so the homeowner doesn’t turn around and flip the renovated property.”

“We talked a lot about Michelle’s experience” in the various programs. “Right now she’s working with three or four municipalities in the region.”

He said the DANC housing pro has brought a lot of rewards to many St. Lawrence County communities in terms of housing programs.

The two programs she recommended were the state’s Affordable Housing Corp. and the Community Development Block Grant program. “Each has different niches and different requirements!”

“She has also suggested we go for a funding level of $400,000.”

He said the village is just completing such a program.

Any new town grant program based on what we can get done in the two and one year time line of the grant program.

“You get these grants and you only have that period of time to get the work done. Capacity-wise, we don’t have all kinds of contractors here who want to jump on these grants, and some of them who don’t want to.”

He said the grants typically open in the spring or summer, with awards announced in the fall or early winter.

“To get a head start, the town, as lead agency, could contract with DANC to research and write the appropriate grant application. The cost would not exceed $3,500. DANC would then do a press release to let local residents know about the availability of the rehab grants for their houses.”

Mr. Gillis said DANC staff would also assemble the applications and get all applicants set up for the program. “We want to make sure we have a waiting list of qualified applicants to show the need in the community for the grant!”

He said once all the applicants for the housing help have been assembled, DANC will determine the best program to apply to for the grants.

“If we are successful in winning a grant, DANC will do all the administration and project delivery.”

He estimated that each applicant could receive as much as $40,000 in rehabilitation funds for their house.

All contractors selected to participate in the program must carry workers’ compensation and liability insurance. He said they must also be trained in “lead-safe practices.”

The councilman said the town can get a leg up on its applications by first doing what he called “a housing condition study.”

“If we can get volunteer to do it, what Michelle suggested was, after taking some training, the person would a smart phone in various neighborhoods and visit 20% of the houses in Tupper Lake.”

He said the volunteer would take a photo of each house using the phone and describe it. When the picture is taken, the cell phone automatically geo-locates it and adds it to GIS data base.

“If we can get a volunteer to do that, it would save the town $1,500.”

He recommended the town budget $3,500 to hire DANC in its new budget, currently under development.

The village has won a number of housing grants over the years and the town has won some.

Councilwoman Tracy Luton asked him what sorts of renovations could be done by homeowners with the new grant funds and was told they must be major ones: roofs, windows and doors, insulation, heating and electrical upgrades.

“It’s not going to be a bathroom remodel. It’s going to be things that are necessities,” Mr. Gillis told her.

He said too the money will come as an outright grant, providing the homeowner continues to occupy and own that property for a set time period.

“The Affordable Housing program has one period and the Small Cities program a different one,” according to the councilman.

He said too once the housing condition survey is completed, the DANC housing staff can determine which agency’s program is more appropriate for Tupper Lake and more likely to be funded.

“Michelle said if we do our homework between now and the spring, we have a better chance for success when we apply.”

Supervisor Rickey Dattola promised the $3,500 appropriation to hire DANC to apply for these grants and administer them when they are awarded will be talked about as the board prepares its budget for 2024 in coming weeks.

In another housing matter he said there is currently an important tax exemption- called Section 457. “It’s very simple. If our three governments pass a local law that is already state-approved, and a first-time homebuyer wants to build a house or renovate an old one, the governments assess the property at 50% of its full value and it takes five years to grow to the full value assessment.

“It doesn’t hurt our tax base one bit, because it’s for vacant land, where a new house would be built, or for a house that is distressed, and would likely be leaving the tax roll soon.”

He said to put the new program in place would require creating with the village and school district a new local law. The program could start as early as January 1, 2024. The supervisor said he believes village and school officials are also interested in the new program that eventually grows the local tax base and creates new and renovated housing here.

“I’m going to stay on this and try to get it done!”

“I think this is another tool to develop more good housing here and in helping young people to buy their first home.”