Blighted structures may be coming down

Last August, the city council approved action to work out the prices and acquire these properties under the Neighborhood Stabilization Housing Grant that Shelbyville in 2009.

The $326,023 grant came from the National Stabilization Program (NSP), part of Phase I of the Housing and Economic Recovery Act of 2008, also known as the first "stimulus package" that was signed into law by former president George W. Bush.

With the grant, the city can purchase blighted properties around Shelbyville within specific guidelines, demolish them, and prepare the lots for other homes to be built.

City recorder Betty Lamb told the council Tuesday that after a meeting between codes and planning director Ed Dodson with South Central Development "we're ready to go on these."

Lamb said the first thing that needs to be done is have city attorney Ginger Shofner do a title search on the seven pieces of property.

Approval to tear down the structures would be needed, followed by a review, and then approval from the council would be required, Lamb said.

If one of the seven property owners does not choose to accept the city's offer, another one is on their list, Lamb said.

The city has partnered with the Shelbyville Housing Authority in the effort and once a dilapidated building is torn down, the property will be turned over to the Authority.

After that, the Shelbyville Housing and Development Association (SHDA), a non-profit established by the Authority, would buy the cleared lot at a discounted rate.

The NSP grant calls for placing a family whose financial status meets the criteria of earning 120 percent or less of the average median income.

Working along with Habitat for Humanity, SHDA would build a residence while helping the families acquire the needed financing.

Former codes director Kip Green said last year about 25 locations in Shelbyville could be considered "blighted," but the city would only be able to take care of six properties with the grant.

The grant is "very specific" and the structure to be torn down must be within a residential neighborhood, with some houses targeted on Bethany Lane, Jackson Street on the west end of Shelbyville and one house on Earnhart Street.

According to information from the Tennessee Housing Development Agency, NSP funding is provided by a formula based on areas with the greatest number of home foreclosures, areas with the highest percentage of homes financed with sub-prime mortgages and areas identified as likely to face a significant rise in the rate of home foreclosures.