Pittsburgh Greenhouse

I sat through the the 'Fast Track' edition of the FHA-developed home ownership curriculum run by the National Foundation for Credit Counseling (www.nfcc.org). Ray GarofaloBank was an excellent instructor. The curriculum steps you though the planning, acquisition, and post-purchase steps of becoming a homeowner.

The full paperwork trail is covered, including details on all of the cost structure. The program includes a very help and in-depth text on the topic which you can read here:

http://www.amazon.com/Homeownership-National-Foundation-Credit-Counseling/dp/0977788024

Dollar Bank's community lending group is back in the game, it seems, despite the absense of HRP. As an alternative, they're offering free credit counseling and home ownership financial responsibility classes and a down-payment/closing-cost offset incentives in the form of a savings account match program.

This program was referred to me by Terry Doloughty at the Polish Hill Civic Association.

Good thing I opened a savings account with Dollar Bank back in `08; I think I'll definitely take advantage of this class.

The contact at DB is R. Garofalo <rgarofalo826@dollarbank.com>

I spoke a few banks. Very few seem receptive at all to the idea of providing, what i've come to call: Exploratory Financing.

An unsecured line of credit to do preliminary architectural work and planning, as well as secure the property, before submitting a full proposal.

After talking with the builder, we think that we may be able to get away without such a formal process. He's also receptive to formalizing his LEED for Homes builder status, so there's progress to be had this week.

Will call Ledonne in the AM to give him an update.

I met with a builder this morning (Dennis "Buckeye" Walton), he seems optimistic about the project but just as confused about financing sources as I am.

His next two steps:

- Obtain accurate architectural drafting and field measuring 
- Obtain initial financing

The problem, again, is that an accurate financing requirement cannot be developed without a limited amount of preliminary financing for:

- Demolition
- Architectural Drafting/Field Measuring
- Hazardous Waste Removal
- Roof Replacement
- Structural reinforcement

Still talking to varies parties. I was finally able to recover the files off of my GNU/Linux desktop (XFS File System on the old Veloceraptor SATA drive), so I'm back in the thick of it. Matt Cozza and Dennis Walton have offered to look at the property. I can find a general contractor, I can find an architect. But the big question is this: Do I ask a for financing for simply 1) A new roof 2) building security 3) limited demolition; or Do I wait and submit a full construction plan?

After writing a handwritten letter to the owner of 329 Hancock St., I got a response back. The owner is interested in selling the property!

Time to investigate the possibility of getting financing up and running again. ~BAS

Rumors are circulating that 329 Hancock may be up for sale, so I visited with a PNC Mortgage rep in Squirell Hill this morning. Got my details out onto the cloud.

We crunched a traditional FHA loan at 100K as feasible given income, debt-to-asset ratio, etc. Pretty awful outlook for me; gotta keep paying down credit cards & saving cash.

Take Note: PNC won't even sell you a native PNC product unless you have, in saving, 10% of the mortgage principal in cash, in addition to the closing costs.

The City/URA have begun to sell lots through a new program and new address outside of the normal channels. http://www.buyintheburgh.com/ lists the properties by ward; examine Ward 6. This week, I will reach out to PNC about new construction loans, and/or property acquisition loans (to avoid property buy up by slum lords, etc.). A quick cost/benefit analysis of the properties is discouraging, based on the industry standard $125/sqft infill construction costs.

Two quick notes: I'm helping Polish Hill and the City of Pittsburgh apply for grant funding through the US Fed HUD's "NSP2", or Neighborhood Stabilization Program 2. The funding can be used for neighborhood groups to purchase and develop residential property, or pay for part of a mixed use project. I'm also working with SCA members on Polish Hill to develop a new urban garden on the property adjacent to the Blue Dog Apartments. http://digitalfreaks.org/~lavalamp/output.avi for a time lapse photography analysis of cloud coverage on the lot.

All hope is not lost; I am still working with Terry Doloughty and the PHCA Housing Committee to utilize the VPWG Land Bank Process.

Having been sold for nearly 6 months, 329 Hancock St still sits untouched with no active building permits. The new property owner has not paid the taxes, secured the facility, or applied to BBI for building permits.

LeDonne Construction of Pittsburgh's North Hills

The new target properties for my project will be mixed-use commercial/residential, so a shadow corporation and a business loan instead of a mortgage will be required.