'I can't explain the program to anybody'

The Town Council Finance Committee has doubts about implementing a federal program intended to stabilize neighborhoods hit hard by foreclosure.

Earlier this week, the town received notice of a $1.2 million grant award from the U.S. Department of Housing and Urban Development to purchase and rehabilitate foreclosed homes in Meadows of Culpeper (Belle Avenue), Lakeview (Sperryville Pike) and Highpoint (Orange Road).

Town Council signed off on the application for the “neighborhood stabilization” funds in June.

Town planning staff handled preparation of the complex HUD application along with a private consultant, who received $35,000 for his role. That included a study of town neighborhoods worst impacted by foreclosure. The grant application and consultant’s information has not been publicly released yet.

And some Town Councilmen have unanswered questions about the program.

“I have had more complaints on this,” said Councilman Chip Coleman at Tuesday’s Finance Committee meeting.

“What will it take to administer the program?” Mayor Pranas Rimeikis added.

Town Planner Bryan Hill said phase two of the project would be pursued with assistance from the consultant and Virginia Department of Housing and Community Development, state administrator for the HUD program.

“What do we have to do? What are the parts and pieces of this program?” the mayor said.

Hill responded that he imagined there would be 300 pieces for each action required through the federal initiative. He said the consultant would help interpret “each and every step” from Fair Housings laws to environmental assessments and more.

Sam Aitken’s Culpeper Community Development Corporation will provide certified housing counseling for potential homebuyers, as required by the program, Hill said. CCDC has also donated $40,000 to the effort.

There were more questions Tuesday, however.

“Who determines what houses we buy?” said Coleman, and will real estate agents be used?

“That would be a management team decision,” Hill said. “We want to try to get the best bang for our buck.”

Earlier reports indicated the town would only purchase foreclosed homes that had been on the market for 90 days or more.

Several local real-estate agents have opposed the government-housing program because they feel it competes with the private sector.

A real-estate agent from Warrenton served on the initial management team overseeing the grant application.

Town Manager Jeff Muzzy said the management team would decide if real-estate agents involved in the program would receive commissions on sales.

Hill said the town would accept proposals from local realtors interested in participating in the program.

“I think it is a good program,” Town Councilman Jim Risner said of how it is “targeted” to help areas most impacted by vacant houses and foreclosure.

Questions kept coming.

“Where does the money come from?” Coleman said.

Hill said as the program reaches certain “milestones” the money would be released, mentioning different options.

The four-man committee voted against the recommendation for Town Council to accept the federal money.

The issue goes to full council Tuesday.

“I can’t explain the program to anybody,” said Mayor Rimeikis.