Around the Arch Blog

The Reno City Council set the course to seek a little more than $20 million in a second round of funding that will be made available through the Neighborhood Stabilization Program. This is a piece of an additional $2billion that will soon be available nationwide for the purchase and rehabilitation of abandoned and foreclosed homes. This program is part of the American Reinvestment and Recovery Act of 2009.If the grant application is awarded, the funding would be used in four different ways.
1) Purchase and rehabilitate at least 200 and possibly as many as 300 vacant and foreclosed properties in three designated target areas–with high foreclosure rates–in Washoe County.
2)Resale of a large number of these houses with financial assistance to eligible families between 50% and 120% of the area median income and, with the concurrence of HUD, a portion will be made available under a “rent to own” program.
3) Rent a smaller number of houses to eligible families under 50% of the median income.
4) Purchase of properties with blighted structures so they can be demolished and the land placed in a land bank.

The second round of Neighborhood Stabilization Program funds will be made available through a competitive grant process. Today the Council approved a Consortium Agreement, a necessary part of the application process. The agreement names the Reno Housing Authority as the lead agency. The Housing Authority will submit the grant to HUD by the July 17, 2009 deadline.

The building located at 495 Morrill Street was known for the unusual metal sculpture on its roof; a Volkswagen Beetle transformed to look like a large spider. Soon, the building will be known for something completely different. It will bring affordable housing and more retail to the downtown core.

Developers Kelly Rae and Pamela Haberman, along with Shu S & E Inc., are transforming the old two-story building into lofts with retail space on the ground floor.

Long-time residents know the building once housed Fire Station No. 2 before becoming a men’s homeless drop-in shelter. The shelter closed in 2005 and the building, owned by the City of Reno, sat vacant for years. Despite two separate attempts to sell the building at auction, there were no takers until October of last year when the property was transferred to the Redevelopment Agency for sale to the current developers.

The new lofts and retail are expected to begin the revitalization of the area creating 23 new jobs while retaining an additional 20 jobs. The new development will also increase the tax increment from the project from zero to $35,000 a year starting this year. Tax increment pays for Redevelopment projects. By law, tax increment generated in Redevelopment districts must be used for Redevelopment projects.

Renovations have been ongoing since October and are expected to be complete in 60 days.

As for the “bug,” it now has a new home at Scudders Volkswagen in Sparks.