3 Pitt St., Worcester. Photo courtesy of Pvmoutside / CC BY-SA 3.0.

The city of Worcester has launched a new program aimed at helping certain developers get streamlined access to capital to revitalize troubled small two- to four-unit properties throughout the city.

The “Worcester Housing Now” program was announced at the Worcester Regional Chamber of Commerce’s Game Changers business conference and expo Friday.

The program will focus on the existing housing stock in all of Worcester’s neighborhoods, a majority of which is more than 100 years old. The city is concerned deferred maintenance on many of these properties has led to resident health issues, blighted and vacant buildings and units and disinvestment in neighborhoods.

The city will evaluate whether developer applicants have the means to complete projects and whether or not they have a track record of completing projects of similar size, with an emphasis on fire, building and sanitary code compliance. All projects will have to be completed within a year. The funding is intended to help bridge gaps for developers and landlords who’ve been unable to secure funding for purchases or upgrades from the private market.

“While there is great excitement for all the new development happening in our downtown, we must ensure all residents have safe and healthy living conditions,” Mayor Joseph Petty said in a statement. “Triple-deckers are the soul of Worcester and bringing back offline units will provide some immediate relief to the lack of affordable rental unit availability.”

“The creation, rehabilitation, and preservation of affordable housing within our neighborhoods is something the city administration takes very seriously,” City Manager Edward Augustus Jr. said in a statement. “This new multi-layered funding and educational approach will allow for safe, affordable units for both individuals and families across our city.”

An informational meeting on the Worcester Housing Now program will be held on Tuesday, Nov. 12 from 3 p.m. to 5 p.m. at City Hall.

The program offers investors and landlords eight different resources:

Community Development Block Grant Funding – The city has prioritized federal funding through the U.S. Department of Housing & Urban Development’s Community Development Block Grant program. This funding will be available to developers looking to acquire or rehabilitate two- to four-unit properties. The city has $1 million in CDBG funding dedicated to the program through June 2020, when Congress will have to reauthorize the funds for the next fiscal year.

Lead Abatement Funding – The city through HUD will have lead abatement funding available to additionally assist with the remediation of units that contain lead paint and other health related housing issues. Funding up to $10,000 per unit will be available for properties built before 1978. The city just received a $5.6 million grant to abate lead in at least 250 homes over the next 42 months.

Affordable Housing Loan Fund – Establishment of a $10 million loan fund has been established through a partnership between a consortium of local banks/lending institutions and the city. This fund can be utilized for both acquisition and/or rehabilitation of two- to four-unit buildings. Applicants will benefit from a common loan term sheet that combines the information needed by each bank and HUD. The median three-family home sale price in Worcester is $334,500 so far this year, according to The Warren Group, publisher of Banker & Tradesman.

Owner-Occupied Rehabilitation Funding – The city of Worcester, as a designated Gateway City, will have access to funding through the state Department of Housing and Community Development Gateway Cities Rehabilitation Program. This program will be available to homeowners who own two- to four-unit structures that have building or sanitary code issues, or are at risk of losing insurance. The city plans to apply for this funding later this week, for a total of $275,000 available over the next year, but other funding is available for things like roof repairs and the installation of new heating units.

Monthly Sanitary/Building Code classes for owners with violations – Classes will be targeted to owners who have received violation notices on their property. Class sessions will review owner responsibilities under various codes and ordinances, and offer guidance on available resources to resolve those issues.

Multifamily Rehabilitation and Maintenance Guide – A city-specific guide to preferred methods of rehabilitation and maintenance for two- to four-unit buildings. This guide has been developed in coordination with local, state and federal officials.

Formation of a Housing Development Advisory Committee – The Housing Development Advisory Committee will tackle various housing issues including affordable housing, market-rate housing, fair housing, zoning and other relevant issues, and report out to the city manager.

Monthly Videos – The city will post videos on housing topics on the city website, cable channel and YouTube channel every month to help educate landlords and the public.