Middletown CDA OKs Rebuild for 54 Washington rehab, recommends $354,750 bridge loan from city

The Middletown Community Development Agency voted to approve Rebuild as the contractor for rehabilitation of the two‑family property at 54 Washington Street and recommended that the City of Middletown provide a bridge loan of $354,750 plus financing costs to cover the project.

At a Finance Committee meeting convened by Chairman Johnson, staff reported that Rebuild was the lowest responsible bidder at $354,750 and recommended awarding the contract to the company. The Finance Committee approved both the contractor recommendation and a recommendation for a bridge loan; the full board later ratified the actions.

Agency staff described the 54 Washington project as the Agency’s first duplex under the current program. Staff said the duplex will be sold to a first‑time homebuyer who must occupy one unit; the household may rent the other unit or occupy it with family members, and Pathstone will assist prospective buyers with counseling and qualification. “It has to be first‑time home buyer,” staff said when describing occupancy requirements.

Executive Director Bernie told the board that the Agency expects to complete 84 Linden Avenue by the end of the month, has gutted 168 Linden, and will finish one house and begin work on two additional properties; when those projects close out the Agency will have 18 properties in its portfolio. Staff also listed a set of routine bills, including a legal advertisement for $54.26 and a $195 pest‑control charge at 168 Linden for a bee problem.

During discussion, Mayor Witt asked how the duplex would be sold and whether rental income might help a buyer qualify for a mortgage; staff replied that rental income could assist a borrower and noted the unit is intended for owner‑occupancy by a first‑time buyer. The board then approved the resolution to award the contract and approved a separate resolution recommending authorization of a bridge loan from the City of Middletown in the amount of $354,750 plus financing costs; Johnson moved the bridge‑loan motion and Ray seconded it.

Both the Finance Committee and the full Agency recorded votes in favor; the Finance Committee noted four affirmative votes during its meeting. The Agency concluded the meeting after approving the motions and routine business.

Next steps: staff will proceed with contracting and coordinate the bridge loan process with the City of Middletown; a timetable for construction was not specified in the record.