THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, September 24, 1996 TAG: 9609240324
SECTION: LOCAL PAGE: B5 EDITION: FINAL
SOURCE: BY NANCY LEWIS, STAFF WRITER
DATELINE: NORFOLK LENGTH: 62 lines
The price is right, and the Norfolk Redevelopment and Housing Authority says it's an offer that can't be refused.
So today, the housing authority will take ownership of the Oakmont North apartment complex by paying the federal government $10 for the 456 units on Johnstons Road. In June, the owner defaulted on payment, officials said, and the U.S. Department of Housing and Urban Development stepped in to make good on its guarantee to cover the mortgage.
The real coup in today's deal, housing authority officials say, is the $8.7 million redevelopment grant that HUD tossed in to sweeten the deal - money to bring the units up to standards and add services to help low- and moderate-income people.
There will be no displacement as a result of the change of ownership, housing officials said. HUD will provide Section 8 certificates to eligible residents during the transition.
Right now, a two-bedroom unit rents for $390 to $399, a three-bedroom for $432 to $442.
The housing authority will rent units to eligible residents - those whose household incomes are no more than $25,260 for a family of three - and charge 30 percent of that amount.
At present, 350 units are rented, many of them to people receiving Section 8 vouchers. Because the housing authority won't have to pay a mortgage, it can afford to lease units at fixed rents below market price and provide services on site.
``As far as I know, it's something HUD has not done before,'' David Rice, the housing authority's executive director, said of HUD's offer. ``It's a unique opportunity for the community.''
Rice said the hope is that the Oakmont apartments will provide another rung on the ladder to self-sufficiency for low- and moderate-income residents.
The redevelopment funds will be used to renovate the two-story garden apartments and add services such as community and day-care centers, a computer learning center, safety and security programs. Funds also will be used for community policing and as many as 12 transitional housing units. Oakmont residents also will have access to job readiness and training programs.
The day-care facility with nursery will be available for use by residents who will pay based on their financial ability, to ease their transition into the working world, said Ray Ingold, manager of real estate development services for the housing authority.
Other job and career preparation to be provided on site include high school equivalency and scholastic test training courses, mentoring programs and support groups.
The apartments are divided into three sections on 26 acres. NRHA plans to take 24 of the units for inside community space and 20 more for outside recreational area.
Built in 1971, the property had been refinanced several times, said Ingold.
Nicholas P. Retsinas, HUD assistant secretary for housing, is scheduled to be in Norfolk for the 3 p.m. deed signing today at housing authority offices, 201 Granby St.
``This event marks a new day in the partnership between HUD and Norfolk,'' Retsinas said in a statement. ``We want to support the city as a partner in bringing affordable housing and services to its citizens.'' ILLUSTRATION: VP Map by CNB