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New homes created out of foreclosure in Lexington

LEXINGTON, Ky. (Jan. 8, 2013) — Community Ventures Corp., in partnership with the Governor’s Office, the Attorney General’s Office, Kentucky Department of Local Governments, Kentucky Housing Corp., NeighborWorks America and other partners showcased what can happen to foreclosed properties when government and the private sector work together. Today, the Hartford Place Apartments were highlighted congratulations were made and partnerships were celebrated with all of the partners at CVC’s headquarters.

CVC’s purchase of Hartford Place coincides with the commonwealth’s neighborhood revitalization mission of acquiring and providing safe and decent affordable rental opportunities to low and middle income residents and returning foreclosed properties to a useful community asset.

Kevin R. Smith, president and CEO of Community Ventures Corp. praised the public and private partnerships that made it possible for 49 families to have safe and affordable housing in Lexington.

“Without all of these partners coming together, it couldn’t have happened,” he said. “Families on Martha Court now have a place to call their own. Some of these folks have been through foreclosure and had to leave their home. Through this project, they have landed and can be successful as renters.”

“Returning properties to useful community assets is important for our neighborhoods and our families. This project creates pride and a sense of personal investment for everyone who has been part of the work to turn these homes into useful properties,” Gov. Steve Beshear said.

Attorney General Jack Conway secured $58 million on behalf of Kentuckians through the Mortgage Foreclosure Settlement with five of the country’s largest banks. General Conway and 47 other attorneys general found that the banks had “robo-signed” documents, which is illegal. Thirty eight million dollars of the settlement is being allocated to consumers through the national settlement administrator. Consumers may receive assistance with refinancing, loan write downs, debt restructuring and/or cash payments. The remaining $19.2 million went to agencies in Kentucky that create affordable housing, provide legal relief or legal assistance to homeowners facing foreclosure, redevelop foreclosed properties and reduce blight created by vacant properties.

“Hartford Place is an example of how these funds have the ability to transform streets, neighborhoods and lives,” Conway said. “This settlement is about second chances for properties and people. I appreciate the investment in this property that will provide affordable and safe housing to families in Lexington.”

The Hartford Place Apartments (1598 Martha Court, Lexington) are located in north-east Lexington just off of Eastland Parkway. The project consists of three buildings with a total of 49 units. The first building has sixteen two-bedroom, three one-bedroom apartments and one manager’s office. The back two buildings have 15 one-bedroom/studio units each. The property was a foreclosed property for sale by lender. At sale, the property had only a 70-percent occupancy rate and needs rehab due to poor physical condition of many of the units.

Project scope of work includes:

Complete rehab of the currently vacant 16 units

A new more efficient HVAC system will be installed into the one and two bedroom units

New HVAC units installed into all of the vacant studio units

One unit will be updated to meet handicap accessible criteria

All units will be rehabbed as they become vacant

Resident services will be provided including online financial literacy and homebuyer education as appropriate

Funding partners:

Attorney General: $600,000

KY Department for Local Governments/NSP: $734,000

NeighborWorks America/CFRAH: $300,000

Facilitating partners:

Kentucky Housing Corporation

Central Bank

Kentucky Bank

NeighborWorks Alliance of Kentucky