Palatka expects rush for 12 new homes priced at $100k financed by Dept. of Agriculture grant

Posted at 4:31 AM, Jul. 27, 2007

PALATKA, Fla. --- Palatka, Fla., and Putnam Co. plan to sell up to 12 publicly-owned home sites for $1 each and use $500,000 in U.S. Dept. of Agriculture grant funds to spur development of 12 new homes, half in the city and half in the county.

John Nelson, executive director of the Palatka Housing Authority, said his staff has already located four sites and are working to identify eight more to build 1,300-square-foot, three-bedroom two-bath homes.

Chris DeVitto at Palatka Daily News has the story:

Nelson said people need to recognize that these homes are not subsidized housing.

"This is not public housing," he said Wednesday. "The homes will cost $100,000 to $110,000 and part of that will be paid for with money from the grant."

Each family that qualifies will receive $35,000 to apply to the mortgage, and the rest will be financed by the U.S. Department of Agriculture, Nelson said.

"They will be responsible for the difference between the cost of the house and a $35,000 soft second mortgage," he said. "And if they live in the house for five years they will not have to repay the $35,000."

The hope is that building these homes on vacant lots will bring additional revenue into county and city coffers through property taxes and also provide affordable housing, he also said.