Meeting Highlights: Urban Restore by the Shore Project in Racine

Attendees

 Dave, Karl, Kristie, Odell, Reggie and Wayne


City's Position:

  • From initial conversations indicate the city aims to increase homeownership but hasn't specified guidelines on whether properties should be sold to homeowners or can be rented out.

Development Focus Area:

  • Majority of available assets are in the Lincoln King Area, targeted for significant city-led strategic development.

Development & Strategy Ideas:

  • Utilize 11 vacant lots for new construction, including Single-Family Residences (SFR) and Multi-Family Residences (MFR).MFR aims to provide accessible housing options for low/moderate-income residents, leveraging rental income to enhance buying power and equity.
  • SFR construction costs are estimated between $120k - $150k for 3-bedroom units.
  • Reggie has pre-existing plans for 3 and 4-bedroom homes.
  • Renting the assets will always be an option.
  • We must refi out the loan at 75% LTV.
  • Using internal team purchases on the first phase of the project to raise the comps.
  • Idea of new construction phase targeted at rent to low/moderate income rentals. These are the assets that will be sold internally to set the comps but still hit city objective to raise low-moderate income housing stock.
  • Light rehabs can be done in the first phase to quickly get rented assets going for cash flow to offset construction loans. This also showcases to the city the ability to quickly get asset performing.
  • First-phase rehabs may not be able to be refinanced until we set comps in the area so they will sit on construction loans. This can be done for up to a year.
  • MFR creates more equality and makes buying more costly homes accessible to homebuyers.




Potential Public Offerings:

  • Credit repair, mortgage preparation, and a rent-to-own program for community buyers

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Strategy:

  • Consider renting as a viable option, with a focus on refinancing loans at 75% LTV and using internal team purchases to raise property comparisons.
  • Initial phase includes new construction aimed at low/moderate income rentals and light rehabs for quick cash flow to support construction loans.


Area Offerings:

  • Recent investments by SC Johnson and the establishment of a Microsoft data center signal growth and improvement in the area.
  • Microsoft New





Investment Protection:

  • Emphasis on code enforcement for older assets and providing rental options to prevent displacement of current residents.
  • Mics



Program findings post meeting:

Regulatory and Grant Funding Overview:

  • Racine received funds through the Neighborhood Investment Fund Grant Program for revitalizing the Lincoln-King Neighborhood.
  • Projects must adhere to specific conditions, including stormwater management, obtaining building permits, maintaining schedules, and contractor requirements.
  • Heavy emphasis of local builders and investors

Concerns:

  • Local regulations emphasize selling CDA-owned properties in the Lincoln King Neighborhood for homeowner occupancy only, with restrictions against turning them into rental units.

Thse links are to city site regarding teh


Action Items:

  • Reggie to provide costs for MFR.
  • Karl to provide a list of assets - COMPLETE - see bottom of page
  • Everyone thinks of venture name
  • Odell to pull comps for SFR, MFR new construction and rehab
  • Regroup Sunday for the best time to meet next week




Available Properties & Lots