So the city gets some millions of dollars to tear down and rebuild new homes and duplexes via a grant; the plan as I have been told is to sell the homes at cost to people making less than $40,000.00 per year.
Sounds like a fair plan and it would seem that the new living quarters in Bicknell would or will make that particular neighborhood look good.
A couple things that I don't really understand is that Bicknell is going to sell houses at cost that they have little or no cost in, grants are not loans therefore I assume that the city will have no cost in the dwellings, so will the actual cost to people making less than $40,000.00 actually be $0.00? If the city actually ask for real money to sell the houses where will the money earned on a $0.00 investment be applied once collected?
Another point is if they are selling the homes really cheap or actually giving them away to people making less than $40,000.00 is this actually a problem because other people will also like to buy cheap houses and would certainly be interested in a free home but will the rule force them out of the competition? Is this a type of extreme prejudice based on income or is it simple favoring one class over another? Will somebody sue?
If the city is actually planning to sell the homes cheap how are they planning to finance them in President Obama's lending market? Maybe the city is planning to sell some to the houses for money like actual down payments and regular loans when people can find banks who will loan to people making less than $40,000.00 with the understanding that they themselves will most likely become a new home owner of a property in Bicknell sometime down the road from the loan dispersement date and then use that money to finance the others much like a contract sale with the city being the owner holding the papers on the house and foreclosing and repairing then reselling on another contract. Or are they just planning to give the homes away so that the receiver of the home will have no personal investment in them and thereby little if any interest in maintaining it?
How does the mayor plan to assist the people in Bicknell who have most if not all of their net worth tied up in their home in Bicknell that will not sell and how will the mayor offset their losses when what little market there is becomes nonexistent once the city floods the market with homes that they have no investment in?
Just some thoughts
John R. Stanczak
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