LORAIN -- A house at 958 Lakeview Drive considered to be a "tipping point" in preventing the block from becoming blighted will be demolished and rebuilt with $162,000 in federal taxpayer money.
City Council members Wednesday approved the demolition and construction, which will be done by Direct Action for Central Lorain, a nonprofit housing group.
The house has been in foreclosure for two years and councilmembers' actions were part of efforts to deal with the foreclosure crisis in Lorain, which has a higher rate of foreclosure than the national or state rate. Howard Goldberg, Lorain's community renewal director, said it was more cost effective to raze the approximately 60-year-old houseoff West Erie Avenue and build a new one than rehabilitate it.
Goldberg told Council members the house was a "tipping point property" likely to degrade if bought by an investor rather than a homeowner.
"All it takes is one derelict property problem to cause the next one and the next one," he said.
The new house is expected to be built by May and sell for about $106,000, with the city receiving 60 percent of the profits and Direct Action receiving 40 percent. A special Council meeting was held for the vote because Lorain would've lost $92,000 in federal affordable housing money if it wasn't designated for the project by Thursday.
See Thursday's Chronicle-Telegram for the full story.
Contact Evan Goodenow at 329-7129 or email@example.com