FARRELL Home construction plan is ready for HUD

Low- and moderate-income families are the targeted buyers.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
SHARON, Pa. -- The Mercer County Housing Authority hopes construction can begin in March on the first phase of a home ownership program in the Spearman Avenue area of Farrell.
L. DeWitt Boosel, authority executive director, said Wednesday that the Homeownership Plan is ready for a final review and presentation to the federal Department of Housing & amp; Urban Development.
About the project
The project calls for the construction of 26 single-family homes as part of the $30 million HOPE VI rebuilding of the authority's Steel City Terrace apartment complex.
The authority has secured a $9 million HOPE VI grant from HUD to help finance the work. Additional financing is coming from the Federal Home Loan Bank and state low-income tax credits.
The first phase calls for the construction of 12 of the houses, Boosel said, adding that the actual starting date depends on how soon HUD approves the Homeownership Plan.
The authority's partner in the HOPE VI program, Falbo-Penrose of Pittsburgh, will handle the screening and sales transactions for the single-family homes while the authority and other agencies will provide housing counseling and related services to the buyers, Boosel said.
Sale price
It will cost about $144,000 to build each house, but because the program targets low- and moderate-income families, the construction costs will be subsidized with HOPE VI and Federal Home Loan Bank funds, reducing the sale price to between $40,000 an $50,000 per home, Boosel said.
Prospective buyers must have an annual family income of at least $19,758 and no more than $31,600 to be eligible for the program, he said, noting that the authority hopes at lest five of the houses can be sold to current housing authority tenants.
The single-family homes will be located in a one-block area within the HOPE VI site although the specific block hasn't been selected, Boosel said.
The 26 houses will be coupled with 119 new rental units built in duplexes, triplexes and fourplexes, replacing the old 100 apartments that were located in barracks-style buildings.
The first phase of the apartment construction, featuring 53 units, is already well under way, Boosel said.