The city of Davenport has acquired and renovated two formerly rundown homes and is offering them for sale under its Urban Homestead program. Open houses will be from 11 a.m. to 2 p.m. Saturday and Sunday.
Since 1990, which is as far back as city records go, 117 people/families have become homeowners through the federally funded program, Heather Johnson, the city’s community development resources manager, said.
The houses currently for sale cost $295,000 to renovate, which is more than they will sell for. But the purpose of the program is not to make money. It is to revitalize neighborhoods by improving housing stock and encouraging stability through ownership by working families, Johnson said.
Here is a look at the two houses currently for sale to qualified buyers:
• 1412 W. 15th St. This two-story, three-bedroom home with an open front porch was donated to the city by an owner who wanted to get out from under it, and was renovated for $180,000, Johnson said.
It is for sale for $120,000, with an estimated monthly payment of $701.71, including estimated principal, interest and escrow for taxes and insurance. That is figuring a 30-year loan at 3 percent interest, she said.
Potential buyers must have a minimum income of $29,000.
The home has been totally redone inside, with a new kitchen and one-and-a-half bathrooms. All mechanicals have been replaced, too, including the furnace, as the home still had its original, octopus-style boiler, Johnson said.
The home has a two-car detached garage and vinyl siding.
• 1501 Eastern Ave. This ranch-style, three-bedroom home was in a city program, but because the owner was in noncompliance, the city took it back and renovated it for $115,000, Johnson said.
It is for sale for $85,000, with an estimated monthly payment of $554.15, including estimated principal, interest and escrow for taxes and insurance. That is figuring a 30-year loan at 3 percent interest, she said.
Potential buyers must have a minimum income of $24,000.
“Rehab of ranches isn’t something we’ve done a ton of,” Johnson said, adding that the home may appeal to a different kind of buyer. The home has a one-car attached garage and is built on a slab, meaning it has no basement.
More about the program
The city either acquires needy/abandoned homes or receives them as donations, taking only those that are structurally sound, Johnson said. In deciding what to replace, employees assess the life expectancy of certain features. If the roof and siding are deemed good for another five years or more, for example, they will be kept, Johnson said.
The goal is to make sure homeowners aren’t faced with problems in the first several years of ownership, she said.
Proceeds and loan repayments from the sale of Urban Homestead homes is incorporated back into housing programs operated by the city.
Most recently, the city spent about $500,000 to construct six new homes in the 700 block of East 6th Street, between Sylvan Avenue and Farnam Street, in an attempt to jump-start the neighborhood and attract private investment.
Through the years, money for the Urban Homestead program has come from a Department of Housing and Urban Development grant called the HOME Investment Partnership that provides money money for programs targeted at working families.
Money for the most recent renovations came from Community Development Block Grants, Johnson said.