The Annual Action Plan Substantial Amendment - City of Pontiac

appraised value to protect the affordability of the unit for a period of 15 years (HOME
Final Rule standards). At the end of the affordability period, the lien will be released by
the City. If the home is sold prior to the end of the affordability period, a prorated amount
must be repaid to the City.
In some instances the homes will be rented or leased with an option to purchase the
home, pursuant to counseling and credit repairs. The City will lien the properties for the
after rehab appraised value and to ensure a 20 year affordability period. The City will
work with each for profit or nonprofit developer to adapt to changes in the housing
market.
For this acquisition/rehab/resale program, the City is targeting three (3) properties. The
units will be rental units (if an income eligible purchaser cannot be found) for persons at
50% of AMI or below. The City will solicit the participation of our nonprofit partners to
provide home buyer counseling to our renter households on a lease purchase path, if
feasible for the renter household. Any program income generated from the production of
the first three (3) homes will be used to complete additional units following the NSP
guidelines.
(5) Location Description: (Description may include specific addresses, blocks or
neighborhoods to the extent known.)
The City has identified one target area for the purpose of focusing on the stabilization of
blocks in the neighborhoods just east of Telegraph and south of Elizabeth Lake Road
down to just west of Crystal Lake. The target area was also the focus of the NSP 1
program and is being targeted again because of the large number of foreclosures that
continues to destabilize blocks in the Seminole Hills, Ottawa Hills, Indian Village and
Washington Park neighborhoods. Currently there are eight (8) tax and bank foreclosed
homes that will undergo renovations this spring. The rationale for selecting this area was
to continue to concentrate in neighborhoods where homes are being renovated via NSP1
funds to, in combination, enhance the marketing of those properties and the thirteen (13)
homes (three under this activity) to be renovated with NSP3 funds by a developer yet to
be selected. NSP 3 places emphasis on the marketability of the properties selected for
rehabilitation. To stabilize neighborhoods there must be focused investments.
The boundaries of the target area are as follows:
Target Area Boundaries
West Border: Johnson Avenue from Huron Street (M-59) in a line south to Telegraph.
South Border: Includes Washington Park down to Telegraph just west of Crystal Lake.
East Border: Telegraph north to Voorheis Rd., east along Voorheis Street back to
Telegraph and north on Telegraph to Elizabeth Lake Rd.
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