City of Buffalo Being Criticized for Investing $$$ Hundreds of Thousands to Rehab Homes but Sold them for Significantly Less
Here's the question:
According to News Sources, The City of Buffalo rehabilitated 10 homes at a cost of $4.3 Million but sold the homes for a total of around $1 Million. How & Why?
A Buffalo News article began this way:
Over on Fillmore Avenue, the City of Buffalo paid almost $400,000 to renovate a run-down, one-family house that is being sold for $80,000.
Hmmm....the questions are real and now this confusion has reached mainstream media! According the Buffalo News article here's what The Buffalo News discovered:
- Buffalo rehabbed houses that are bigger and more dilapidated than those fixed up in the other cities, with most of the Buffalo houses considered demolition-worthy.
- Given their condition, environmental clean-up costs of these houses are often high. In one case, $108,000 was spent removing asbestos from a Fillmore Avenue house being sold for $80,000. The total rehab was almost $500,000.
- Houses were rehabbed in historic Buffalo neighborhoods, which also drives up costs. On Dearborn Street in Black Rock, for example, $65,000 was spent on siding, windows, and exterior doors and trim on one house. The total project cost was $523,600 on a street where no other house sold for more than $75,000 in the past year.
- Buffalo rehabs include some features not offered in the other cities, including accessory rental apartments and a full set of major appliances.
- While the Syracuse and Rochester housing agencies work with 10 to 15 general contractors, Buffalo generally has two or three bidding for its housing rehab work.
According to the Buffalo News story, Buffalo Comptroller Mark J.F. Schroeder, has reportedly been critical of City spending and offered this:
"The amount of money spent on these houses is beyond excessive.” I ’m sure there are a list of excuses about why it costs so much, but you can’t convince me there is not a better way to utilize these funds.”
This is a very interesting and revealing article written by the Buffalo News which is far too much to fully cover within this post, but a story that impacts the entire Community and a story you should familiarize yourself with...Click then link below for the FULL STORY.