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.
A. Empowering the Council: New Approach to Community Needs
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This was a significant departure from the previous approach, which relied on the city’s budget and limited the council’s ability to respond to community needs. The council members, empowered by this new approach, were able to identify and address specific community needs. They prioritized projects that addressed issues like homelessness, affordable housing, and economic development.
The ordinance outlines a new loan program for homeowners seeking to renovate or improve their properties. This program offers a unique financing structure, providing homeowners with a loan that is partially funded upfront and partially released upon completion. **Detailed Text:**
The ordinance introduces a novel approach to financing home renovations, offering homeowners a unique blend of upfront funding and staged payments.
“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.
* A new system for hiring contractors is being implemented. * The system uses a pre-vetted list of contractors. * Contractors are paid only half upfront, with the remaining balance paid upon project completion. **Detailed Text:**
The implementation of a new system for hiring contractors promises to streamline the process and enhance transparency.
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