Penrose Self Reliant Neighborhood
Penrose Housing Corporation
The Penrose Community Housing Corporation was organized in March 1991 under the direction of Operation ConServ with technical assistance from Operation Impact. The Housing Corporation provides service to an area in North St. Louis bounded by North Kingshighway, Natural Bridge, North Newstead and Bircher Blvd. The area is part of the 20th Ward represented by Alderwoman Sharon Tyus and the 21st Ward represented by Alderwoman Bennice Jones-King. Establishment of the Housing Corporation was the final phase of a three-part initiative to improve the Penrose neighborhood. The first two initiatives were Concentrated Services which coordinates the delivery of various city services that are needed and Neighborhood Planning which includes a strategic plan complete with goals and objectives in the areas of beautification, education, housing, marketing, recreation and safety. HOW DOES IT WORK?
The Penrose Community is commonly Known as the "Neighborhood of Choice" and over the years members have worked very hard to make this a reality. With this in mind, the Housing Corporation along with the Penrose Neighborhood Association has elected to encourage home ownership as a priority over rental property. The Housing Corporation consists of seven residents of Penrose, was appointed by Mayor Vincent Schoemehl, with approval by the board of Aldermen by resolution. Four members of the board represent the 20th Ward because the largest part of Penrose is located in the 20th Ward. The other three members represent the 21th Ward. Meetings are held monthly during which time information on problem properties, properties which may be available for purchase, and general concerns from the community are addressed. Also attending these meetings are the ConServ Officer, the Housing Analyst from both wards.
The Penrose Housing Corporation believes that the increase of owner-occupied units and the decrease of investment rental property is necessary to stabilize the community and provide better control over what happens in their neighborhood.
They are working to prevent speculators from purchasing property, doing minimal improvements and renting the property with little or no tenant screening. The Housing Corporation has been given a $200,000 line of credit that is managed by Operation Impact. With these funds, they are able to purchase properties and either find a private developer or become a developer of last resort. With information provided by the ConServ officer and the Housing Analyst, the Housing Corporation will decide what property they want to purchase. Once the decision to purchase is made, they sign a resolution which gives the real estate broker from Operation Impact authority to purchase the property from the Corporation. After the property is purchased, the Housing Corporation places the property with the Land Reutilization Authority (LRA) for management until a developer/buyer is selected. Once the developer/buyer is selected, the Housing Analysts from Operation Impact initiate the financial package and development plan for rehabilitation of the property and assist in getting the buyer approved for the final loan. Penrose has been working with several financial institutions. The Community Development Agency (CDA) provides Housing Initiative funds to assist in financing the rehab cost. Funds provided by CDA also help to reduce the final mortgage on the property. WHAT ARE THEY DOING?
The Penrose Community Housing Corporation presently owns eight properties. Six of the properties were purchased from the Department of Housing and Urban Development (HUD). The houses have been foreclosed by HUD. The Housing Corporation was able to purchase the properties at a cost that was ten percent (10%) less than the listed selling price. One property was purchased from the City of St. Louis' Sheriff's Sale for delinquent taxes and one property is to be purchased from CDA's Homestead Program.
The Housing Corporation has elected to be the developer for three of the properties. Two properties are being developed by the buyers and three properties will be developed under a special program for low income buyers. All of the properties will be owner-occupied bringing eight new families to the Penrose Community. A marketing plan has been developed to sell three properties after they have been completely rehabbed. The marketing plan includes open house tours, realtors' showcases and listings with realtors that sell property in the area.
Commerce, United Missouri and Mercantile Banks are the financial institutions that are currently handling the construction loans. Town and Country Mortgage and Mark Twain Bank have been excellent in providing permanent loans for our buyers. Four additional properties will be rehabbed using Hope III funds. This is a special housing project designed to provide "Home Ownership for People Everywhere". The Housing Corporation along with the Penrose Neighborhood Association and the ConServ Officer are working on plans for future housing in the community. The plan is to reduce destiny, it will also help a potential buyer to possibly claim income from the rental unit. This will give a marginal buyer the opportunity to improve their eligibility providing all of their requirements are met. One of the long range goals of the Housing Corporation is to apply for funds that will come directly to them. This is a real possibility. The housing Corporation has established a track record that they feel will be advantageous pending on the availability of funds. Having a well established neighborhood organization in addition to being part of a ConServ area with assistance from Operation Impact and several Accomplishments in developing and selling these properties will certainly be an asset.
The most important fact is that it takes dedicated residents working for the good of their community to make the projects successful. Operation ConServ and Operation Impact will provide resources, technical assistance and assist with all phases of the development and marketing of the houses. Residents working on the Housing Corporation, along with the Penrose Neighborhood Association, are the key factors to create a growing community that is truly a "Neighborhood of Choice."
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