New Hope Rebuilding Foreclosed and Beat-Up Homes
The city of New Hope is continuing to purchase foreclosed and beat up homes with plans for new construction.
The New Hope City Council, acting as the Economic Development Authority, moved ahead with development plans at three properties last week. The plans are part of the city’s scattered site housing program.
Sample images of homes similar to the one slated for construction at 3611 Louisiana Avenue North.
Redeveloping Blighted Homes
The council approved a purchase and redevelopment agreement with Great Buy Homes for 3611 Louisiana Avenue North. The city bought the property for $205,000 in December 2022 and demolished the old home on the site this May.
Great Buy Homes will purchase the lot for $75,000 and build a spilt-level, five-bedroom, three-bathroom home at the site.
The developer expects the house to sell for $475,000 to $480,000.
Likewise, the council approved a purchase agreement for 5243 Oregon Avenue North.
The 841 square-foot rambler-style home has an assessed value of $203,900, lower than 99% of the city’s single-family homes. Moreover, the property is going through pre-foreclosure.
With plans to demolish the home, the city will buy the property for $200,000.
Once the site is cleared, he city will consider proposals for redevelopment of the site.
At a third property, 5802 Boone Avenue North, the council approved a contract with a demolition firm to clear a condemned home.
The city bought the property for $119,600 in April 2023.
The home is in such poor condition that the New Hope police and fire departments declined to use it for training exercises.
Nitti Rolloff Services will clear the site at a cost of $49,700.
“Right after demolition is completed, an RFP for construction of a new home will be sent to home builders,” said Jeff Alger, New Hope community development specialist. “And hopefully we’ll get some great proposals because this is a nice lot.”
According to Alger, the city does not expect to turn a profit redeveloping these homes.
“The cost to acquire and redevelop distressed properties exceeds the value of the new home or homes,” Alger said.
Rather, the intent is to improve the city’s housing stock and increase home values, Alger added.
