Latest news with #HOME-AmericanRescuePlanAct
Yahoo
28-03-2025
- Business
- Yahoo
City mayor calls on council to reconsider funding for affordable housing
Mayor Eddie Moran is calling on City Council to reconsider its decision to deny funding to Opportunity House for an affordable housing project. 'Earlier this week, council voted four to three against a proposal that would have helped 20 families, real people, move from shelters, tents and cars into safe, stable homes,' Moran said during a press conference Thursday, emphasizing the impact the project could have for working families in need. Moran asked council to hold a special meeting to reconsider the funding. Council on Monday voted 4-3 to turn down the nonprofit's request for $2.89 million in HOME-American Rescue Plan Act funding to buy a 20-unit apartment building at 100 S. Fourth St. Councilors Jaime Baez Jr., Vanessa Campos and Rafael Nunez voted in favor of the resolution. Council President Donna Reed and Councilors Wesley Butler, Chris Miller and Melissa Ventura voted no. Moran said he was stunned by the decision. 'It was a vote that was made despite dozens of stories from people who bravely showed up and spoke out, hoping that their voices will lead to a better future,' the mayor said. More than a dozen clients of the shelter spoke to council during the public comment period Monday and at earlier meetings. Many shared their personal struggles and implored council to approve the allocation. Several told of working at low-paying jobs or living on Social Security or disability insurance income and struggling to make ends meet. Michael Wood, a veteran who lives at Opportunity House with his wife Kelly, speaks on the importance of permanent housing during a press conference on Reading City Council's vote to deny funding for housing at 401 S. Fourth St., on Thursday, March 27, 2025, at the Opportunity House, 430 N. Second St. (BILL UHRICH/READING EAGLE) One shelter resident, Michael Wood, a veteran, reiterated his appeal Thursday. Market-rate housing is out of reach for Wood and his wife, Kelly, he said. Unable to find affordable housing, the couple turned to Opportunity House, he said. 'Since I've been here, I've seen veterans come through that door, myself included,' he said. 'I've seen women and children come through that door.' Wood also asked council to reconsider. A resident holds a sign during a press conference on Reading City Council's vote to deny funding for housing at 401 S. Fourth St., on Thursday, March 27, 2025, at the Opportunity House, 430 N. Second St. (BILL UHRICH/READING EAGLE) Opportunity House provides the resources and support its clients need to become self-sufficient, he said. But with so little affordable housing available, they are stuck in the shelter. Council members have said they were led to believe the South Fourth Street apartments would be market-rate housing by the owner/developer of the building, Dream Ventures PA II LLC. Some also have expressed concerns about the possible removal of the apartment building from the tax rolls and the value of the property compared with the asking price. The mayor and Modesto Fiume, executive director of Opportunity House, dismissed these concerns, saying the property would remain taxable. Fiume also said a commercial appraisal of the property came in at $3.3 million, more than the purchase price of $2.89 million. Modesto Fiume, CEO of Opportunity House, speaks during a press conference on Reading City Council's vote to deny funding for housing at 401 S. Fourth St., on Thursday, March 27, 2025, at the Opportunity House, 430 N. Second St. (BILL UHRICH/READING EAGLE) Fiume criticized council's decision, accusing those who voted against the funding of undermining the project and not operating transparently. 'Council President Reed keeps saying there are questions that need to be answered, but they (council) have repeatedly ignored our request to provide us with those questions,' Fiume said. 'There are clearly hidden agendas these four council members have.' If there are no hidden agendas, Fiume said, the only conclusion is that they care little about providing affordable housing to individuals and families on fixed incomes who are stuck living in the shelter. Reed and others opposed to the project have said they are sympathetic to the plight of the homeless but believe the money could be used more effectively in a different location or by spreading it around to multiple organizations. The latter is not an option under the U.S. Department of Housing and Urban Development's guidelines for HOME-ARP funds, city administrators said. Fiume emphasized the critical need in his plea to council for reconsideration. 'We have been averaging 87 people per evening,' he said, noting 32% are diagnosed with a permanent disability and 29% are senior citizens. Opportunity House also operates Eckert House, a temporary shelter for use in extreme cold weather, in a former convent at 1500 Eckert Ave. The building, also owned by Dream Ventures, is set to shut down next month. 'At Eckert House, we are averaging 65 people per night,' Fiume said, noting since the facility opening in November, 119 homeless individuals, including 64 children sought shelter there. Of those clients, he said, 31% have been diagnosed with a permanent disability and 24% have a chronic health condition. Fiume said few families at either facility have been able to return to independent living due to the shortage of affordable housing.
Yahoo
26-03-2025
- Business
- Yahoo
City Council turns down funding for Opportunity House affordable housing
City Council has turned down Opportunity House's request for funding to buy a 20-unit apartment building for affordable housing for working adults. Council at its regular meeting Monday voted 4-3 against allocating $2.89 million in HOME-American Rescue Plan Act funding to the nonprofit to purchase the property at 100 S. Fourth St. After tabling the motion three times over the past six weeks, Councilors Jaime Baez Jr., Vanessa Campos and Rafael Nunez voted in favor of the resolution. Council President Donna Reed and Councilors Wesley Butler, Chris Miller and Melissa Ventura voted no. The vote came after numerous community members and clients of Opportunity House spoke at a series of meetings, sharing their personal struggles and imploring council to approve the allocation. Opportunity House clients ask City Council to support affordable housing project in Reading Council members said the owner/developer of the building, Dream Ventures PA II LLC, an entity of Heights Advisors, Brooklyn, led them to believe the apartments would be rented at market-rates. They raised concerns about the removal of the property from the city's tax rolls should it be bought by the nonprofit. At a meeting earlier this month, Modesto Fiume, executive director of Opportunity House, said the organization would pay taxes on the property. The nonprofit, which owns and operates a shelter at 430 N Second St., also owns five rental units on which taxes are paid, he said. Opportunity House also operates Eckert House, a temporary code-blue shelter, in a former convent at 1500 Eckert Ave. that also is owned by Dream Ventures. Several residents of Eckert House said they will be forced to live in their cars if the facility closes at the end of April as scheduled. Prior to the vote, council approved an amendment by Baez that would have required Opportunity House to pay the full amount of the property tax on the South Fourth Street building and eliminated a requirement for an independent appraisal. Council members have expressed concern about the value of the property compared to the asking price. Fiume said the building was appraised as part of the nonprofit's application for a swing loan from Fleetwood Bank. The appraised value was $3.3 million, he said, more than the purchase price of $2.89 million. During council's committee of the whole meeting earlier Monday, council solicitor Michael Gombar said the county's reassessment of the renovated building is $461,100. An assessed value is not the same as fair market value, he explained. However, Gombar said, there is a state-recognized formula, known as a common level ratio, which can be used to calculate a possible fair market value and is sometimes used for legal purposes. Using the formula, he said, would result in a potential fair market value of $1,268,025, a figure far less than the purchase price. 'That is not a reflection of what the fair market value really might be for the property,' Gombar said. 'I'm just throwing it out there as something that can be used in the legal world.' With the new assessment, Gombar said, the annual property tax income for the city would be about $8,400. City Managing Director Jack Gombach read a statement from Mayor Eddie Moran in support of the resolution. The mayor reaffirmed his administration's commitment to building more affordable housing and addressing the blight throughout the city. Following Monday's meeting, Moran issued the following statement: 'My vision for our city is rooted in progress—neighborhoods that are safe and welcoming, housing that meets the needs of all our residents, and a downtown that's alive with energy, growth and opportunity. 'While I'm disappointed in tonight's vote, I remain focused on that vision. This project was one step in a broader effort to revitalize our city—to create housing that brings people back into our neighborhoods and supports the small businesses that make our community special. 'We will continue to pursue bold ideas, form strong partnerships, and push forward with purpose. The path to revitalization is never easy, but my commitment to this work—and to the people of this city—remains strong. Together, we will build a brighter future, and together, we can do more.' Reading City Council tables a $2.89 million grant for housing for shelter clients The city received $3.5 million in HOME-ARP money about three years ago and has until 2030 to allocate the funds. The federal funding is earmarked to reduce homelessness and increase housing stability. Baez said failing to approve the resolution could have broader consequences. 'Right now, we cannot deny that we have an erratic individual who is currently in the White House and whom we cannot trust,' he said. 'I wake up every day asking, what's next, and therefore this is funding that I feel that we just can't have an opportunity to lose. We can't miss it.' Reed and Butler said they could not support the resolution due to the purchase price. 'When you look at this full amount, there are monies that could be further used by Opportunity House for properties that are maybe dispersed throughout the city, that give a better sense of community to the folks who are in need of it,' Reed said. 'I'm not uncomfortable with finding a place for people to live, but I'm uncomfortable with a great deal involved here.' Reed did not elaborate on her discomfort and did not respond to a request for further comment.
