City’s foreclosed housing program deemed a success

In fact, the city exceeded all the objectives mandated by the grant and has made enough money to continue buying foreclosed properties, said Mike Wolber, the city’s former building and zoning coordinator who now leads the program.

“Feb. 11 is the deadline that we had to have spent a certain amount of money,” Wolber said. “We had to spend what was awarded. We were awarded $2,779,859.”

As of Dec. 1, the city has spent $2,811,051, he said.

“Never in my wildest dreams did I ever think we’d have trouble spending $2.8 million, but sometimes it became a challenge,” he said.

Through the program, the city bought foreclosed homes to either rehab or tear down and rebuild. The new homes were sold to qualifying low- and moderate-income buyers, with incentives such as help with the down payments.

The money came from the American Recovery and Reinvestment Act of 2009.

The money came in April 2010, and by Feb. 11 of last year, the city had to have spent 50 percent of its award, or $1,389,930, which it did. Another stipulation was that 25 percent of the money, or $694,965, had to directly impact families making less than 50 percent of the median income for Whiteside County.

“We’ve exceeded all of those,” Wolber said.

From the sale of 10 properties, the city has received a total of $575,893.

The city also is scheduled to close next week on a house at 905 Third Ave., and has received offers on two of the four remaining houses, he said.

“That money is going to be turned back in, reinvested, buy houses, rehab it, or whatever we need to do,” he said. “We’re sitting real well as far as money available to reinvest into houses that we can buy and rehabilitate.”

There is no timeline to spend the rest of the money, Wolber said.

Sterling Mayor Skip Lee said he was pleased with the impact the program had on the community.

“The properties have been marvelous additions to the community,” he said.