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La Crosse commission approves two parcels for replacement housing, accepts buyer for student-built home
Summary
The Economic and Community Development Commission approved purchase offers for two parcels (1308 Johnson Street and 823 Avon Street) to use in the city—s replacement housing program and accepted an offer to purchase a completed, student-built house at Ninth Street.
The City of La Crosse Economic and Community Development Commission voted unanimously to approve staff-recommended purchases of 1308 Johnson Street and 823 Avon Street to support the city—s replacement housing program and, later in the meeting, accepted an offer to purchase a completed home at Ninth Street.
The replacement housing program, described by staff member Jonah as a partnership with Western Technical College and Central High School, buys vacant or run-down parcels, demolishes existing structures when necessary, and builds new single-family homes for income-qualified buyers using Community Development Block Grant (CDBG) and HOME program funds. Jonah said 1308 Johnson is "build ready" after only a simple garage demolition and that 823 Avon is a large parcel with an older house that would be demolished to make way for a new project.
Commissioner Linda moved and Commissioner Vicki seconded approval of the purchase of 1308 Johnson Street (agenda item 250080); the motion passed unanimously. The commission took a separate unanimous vote to approve acquiring 823 Avon Street (agenda item 250079) following a motion by Linda and a second from Vicki.
On a separate action (agenda item 250078) the commission considered seven offers to buy a completed house the city had built with Central High School students. Staff described seven qualified applicants and recommended either offer 1 or offer 3 based on debt-to-income ratios and HUD affordability guidelines. The commission voted to accept offer number 1; no individual mover/second was named on the record and the motion passed by unanimous voice vote.
Staff explained elements of the financing for sold homes: the buyer must secure a private first mortgage; the city provides a deferred-payment second mortgage using HOME funds; an additional forgivable CDBG loan (about $25,000) is forgiven incrementally over 15 years while the buyer remains in the home. Sales are deed-restricted to owner-occupancy; if the buyer sells, the property must be sold to another owner-occupant.
Commissioners and staff noted the high level of interest in the student-built house and reiterated that the city typically completes two houses in partnership with Western Technical College each year and that applicants not selected for this house would be notified about upcoming opportunities.
Less-critical details: staff said the replacement housing program typically purchases parcels using CDBG for acquisition and demolition, and uses HOME funds for construction; Western Technical College and Central High School students participate in building the houses.
