Home improvement initiative coming to Warren’s 3rd, 4th wards | News, Sports, Jobs
WARREN — City officials and 717 Credit Union representatives celebrated the launch of an initiative designed to breathe new life into homes in the city’s 3rd and 4th wards.
This comes a day after city council voted 8-1 to approve a home improvement loan ordinance, aimed at providing residents with affordable financing for essential home repairs.
Councilman Greg Greathouse, D-3rd Ward, and Councilman James Shaffer, D-4th Ward, proposed the legislation, which gives 717 Credit Union about $700,000 in unused pandemic relief funds to loan to low- to moderate-income residents in their wards.
Warren Mayor Doug Franklin called the program one of the most “creative” uses of ARP funds that has come from the council.
“This is truly how public-private partnerships work for the betterment of the community,” Franklin said.
Each member of council was given $500,000 of the $28 million Warren received in ARP funds to use as they see fit. They cannot, however, allocate the money without approval from the rest of the council.
The program, facilitated through 717 Credit Union, offers loans of up to $10,000 at a fixed interest rate of 5.99%.
“The resident will apply through 717 to submit what they would like to do with the house,” said John Demmler, president of 717 Credit Union. “With the contractor, 717 will review the application, and then we’ll work directly with the resident, and the resident will have to submit some kind of proof that the work was done.”
Under the ordinance, homeowners will receive 50% of the loan upfront to begin the project, with the remaining 50% released after the work has been completed and inspected. This structure ensures that contractors are paid in stages and projects are completed to the required standards.
“It’s anything outside that you can get done for $10,000,” Greathouse said. “If you want new windows, siding, a roof, a sidewalk or landscaping … anything at all outside that beautifies your property and makes the ward look better.”
The long-term vision for the program, which starts with exterior repairs, Greathouse hopes will expand in the future to include interior projects such as HVAC systems, carpeting and furnace repairs, depending on its success.
“717 has been doing these kinds of loans forever, the rate is very attractive, that 5.99% is lower than what you can get on a home equity loan, which is about the most secure loans in the world.”
The program is backed by a $7 million revolving loan fund. Greathouse says he hopes to grow this amount over time, potentially doubling the fund to $14 million, allowing the program to last for decades.
“This thing might be up and running for the next 20, 30 years,” he said.
Greathouse also noted that participating contractors will be vetted to ensure they meet all licensing and insurance requirements.
“They’ll be picking from a list of contractors that have already been vetted … They’re reputable, and they only get half the money upfront. The other half doesn’t come until the work’s done,” Greathouse said.
The program aims to revitalize neighborhoods by focusing on visible improvements in the short term, with hopes that it will lead to further investment and development throughout the wards.
“The hope is that this will be such a success that it will spill over, and we can expand it,” Demmler said.
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