Historical February–March 2019 article. Dates, prices, services and contacts describe the source period; current availability has not been established.
As a Council Board Member, following multiple requests from residents and other interested parties, I reviewed the history and current status of the Housing Corporation and presented my findings and recommendations to the Council on December 4, 2018.
In summary, the Housing Corporation is not financially healthy and operates at a deficit regularly.
As far as I can tell, there is no current viable plan to cure the deficit.
The basic problem is that the Housing Corporation owns undeveloped lots that do not generate revenue and the assets it does own that produce revenue do not produce a revenue stream that is sufficient to cover the Housing Corporation’s costs and expenses. Corrective options include liquidating assets to cover operating costs and future projects, as well as avoiding “new” development, while sticking to restoring properties that for-profit developers are reluctant to initiate.
The Council has not yet addressed any recommendations.
It should be noted that the Housing Corporation is a separate entity from the Council, with its own officers and directors. Below are my notes, which were published in the Council’s minutes. SDCC HOUSING CORP REPORT – 12/4/18 TASK: Residents request investigation into status of HC and fit with neighborhood PURPOSE: Evaluate status and fit and make recommendations to SDCC Board. INVESTIGATE: Interviews with residents, former HC board members, Gary Boehnke, Documents – historical, financial FINDINGS: Governance by board of directors, Alice Stanley, Richard Bose, Joe Fank; Officers-Erich Friesen, Alice Stanley, Paul Hohmann MISSION CHANGE: Original (1988) – Combat community deterioration and improving quality of life by promoting and undertaking neighborhood improvement and housing development activities within service areas defined by the board of directors.
Now – to be the buyer/developer of necessity; empowering strong development and homeownership, with the goal of improving the character, heritage and quality of the SD neighborhood and community.
From housing rescue to developer Assets – Improved lots • SD office – 6008 Kingsbury • 6 family – 5906 McPherson • 2 family – 5946 McPherson (exterior and interior work) Unimproved lots • McPherson Community Garden – 5937, 5941, 5943 • Westminster Community Garden – 5834 Westminster • Lot at north end of Des Peres • Lot at Delmar and Hamilton • 5869 Washington • 521 Des Peres (Walker townhomes) – 3 years old • 520, 526, 532 Des Peres (Dog Park) Investments – • 5888 Delmar – Alanson Building • 5859 DeGiverville – waiting 2 years to complete • 22k a/r from Eric Trudo Financial health Losing 25-30k each year 10 years of life left No block grant for director Can’t meet current objectives Increase revenue and balance operating budget Walker townhomes Expand capacity of HC Interact with other groups and people Distrust and lack of transparency RECOMMENDATIONS: * Understand SDCC has no legal control over HC Conceptual 1. Decide whether we need a housing corp; 2.
If yes, should housing corp be housing rescue or economic developer; 3.
If it should be rescue and this one doesn’t change, should we start a new one; Resolutions 1. Resolution encouraging HC to liquidate non-performing assets to for profit developer 2. Resolution encouraging HC to identify targets for restoration, not new construction 3. Because developer concept is not working, resolution encouraging HC to return to housing rescue
Originally published in The Times of Skinker-DeBaliviere, February–March 2019.
Read this article in the original newspaper issue.
Original source: SD_Times2019_02.pdf, printed page(s) 2; PDF page(s) 2.
