Group to purchase more houses

January 10, 2006

PAT LITOWITZ
plitowitz@ncnewsonline.com

Affordable Housing of Lawrence County plans to build on its recent purchase of seven homes.

The nonprofit group intends to spend $242,000 in early March to buy six properties on Morton, Court, Phillips and Lathrop streets and Maryland Avenue.

The move is meant to increase the availability of handicapped-accessible housing to county residents, according to Robert Ratkovich, the group's construction consultant.

He would not disclose the owners of those six properties.

"I don't think there's no places in the city of New Castle or even Lawrence County that an apartment or maybe a home is already handicapped accessible (that) somebody is renting out," Ratkovich said.

In addition to being New Castle City Council president, Ratkovich is maintenance supervisor for the Lawrence County Housing Authority.

A NICHE

A conversation with the housing authority's Section 8 coordinator, Gene DiGennaro, revealed a niche that Affordable Housing could take advantage of, Ratkovich said.

"Basically I asked him, 'What are the needs of Section 8?"

Housing for the handicapped was DiGennaro's answer, Ratkovich said.

Section 8 is a federal program that provides vouchers to low-income families in need of housing.

Affordable Housing's goal is to outfit the first floor of each house to meet the demands of disabled individuals. Ratkovich said $7,500 to $20,000 will be spent during a three-year period on each building.

The seven properties purchased in December feature 18 apartments. Homes on Cascade Street and Dewey and Frank avenues cannot be converted to meet the needs of disabled residences, Ratkovich said.

However, they still can be used by Section 8-eligible renters.

Four first-floor apartments have tenants. Renovations to those facilities will be done in stages. That leaves one site on Croton Avenue available for a handicapped tenant. Work at that location is expected to begin this month.

"We don't want to displace anybody," Ratkovich said. "We will work with current residents while renovating properties."

An eighth Affordable Housing property, at 1114 Cunningham Ave., was purchased March 8 for $12,500. The county assessor's office values the property at $26,700, while the state's assessed value is $29,276.

RENOVATIONS

Ratkovich said that home was gutted and $18,000 spent for renovations. He said the resident is leasing the house with an option to buy.

Donald "Ducky" Conti, Affordable Housing's secretary, said the group's efforts are helping the community. He questions those who criticize the project.

"The (New Castle News is) putting out that we're not doing something good - like we're hurting something."

Ratkovich, a certified building code inspector, handled negotiations for the seven properties. He said DiGennaro provided leads on three locations and Ratkovich learned of the others through word of mouth.

"I had asked him if he had known of any landlords that would like to sell their properties that were Section 8 landlords at one time," he said. "I went out and started looking to see what fit into our criteria."

GOOD DEAL

Ratkovich said he was happy with his bargaining strategy. Although some county officials criticized Affordable Housing for paying inflated prices, Ratkovich said Affordable Housing spent less than projected.

For example, Affordable Housing paid $72,000 for a triplex at 1806 Highland Ave. The county and state assessed the property at $49,400 and $54,167, respectively.

"You have to look at the income stream you're going to make off the property," Ratkovich said.

He said former owners Nick DeRosa, assistant superintendent of New Castle school district, and John A. Orlando originally wanted $79,900. Ratkovich set a ceiling of $75,000.

"Some of them, I didn't need to negotiate with them," he said. "It was basically, 'How much do you want for it?' I already had an idea in my head, and when they hit it, it was like, 'OK, no problem.'"

Funding for the purchases came from a $250,000 loan from First Commonwealth Bank and grant money.

Affordable Housing wanted to purchase 13 houses at first, Ratkovich recalled. He said officials at First Commonwealth Bank rejected the effort.

Money for purchase of next six houses will come through a different funding source, Ratkovich said, either First National Bank or Sky Bank.

"We haven't got a bank yet," Conti said.


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