Five houses on Baldwin Street likely to be last under project

The city has a moratorium on funding new projects.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN -- Construction of five homes along Baldwin Street could be the last tax-credit housing developments for low-income people in the city in the foreseeable future, Mayor Jay Williams said.
The Ohio Housing Finance Agency Board announced Wednesday that Common Wealth Inc., a nonprofit community development agency based in Youngstown, received $230,000 in state funding to construct five homes on Baldwin Street. The project's overall cost is $814,000. The city will come up with a yet-to-be determined portion of the difference.
Williams instituted a moratorium in January on providing city funding to new tax-credit housing developments for low-income people. Williams, the city's former Community Development Agency director, said the program hasn't been a success and needs to be re-evaluated.
About 400 homes were built in the city under the tax-credit development program.
The program calls for homes to be rented for 15 years. After that, occupants have the option to buy at typically lower-than-market rates because of the original subsidy. The rent is about $350 to $550 a month based on family size and income.
Some success
The city committed funding for this Common Wealth project before the moratorium and will come up with its share, Williams said. The city's portion of the project's cost will be determined when the CDA budget is approved either in May or June, said Mary June Tartan, the city agency's interim director.
There are success stories with tax-credit housing developments in the city, and Baldwin Street has shown potential, Williams said.
But overall the program has done little to revive neighborhoods, Williams said. That's because many of the homes are scattered through troubled neighborhoods, he said.
"Do you want to live in a new home next to a house that's falling apart?" Williams said.
As part of the city's 2010 development plan, the city wants to move away from funding these homes, and use the money to subsidize programs to rehabilitate houses and promote homeownership among a mix of incomes.
skolnick@vindy.com