Columbus will lose 122 units of low-income housing and may lose another 137 units in the near future.
The low-income housing, known as Section 8 housing, are homes for the impoverished, which are meant to be safe, clean and affordable.
Originally, there were 1,335 Section 8 units in Columbus. Managed by Broad Street Management, Inc., the units were scattered around the city, with the greatest concentration in the Weinland Park region. The units were owned by several private owners, but were recently sold to Ohio Capital Corporation for Housing and put into The Broad Street Portfolio.
“We got involved because contracts on the Section 8 housing were expiring,” said Steve Sterrett, spokesman for Campus Partners.
Campus Partners worked with OCC to develop a plan to improve the houses, which will stay in the portfolio as Section 8 homes. Under prior ownership, owners would only receive $1,500 for much-needed renovations.
“We felt the housing would only deteriorate further,” Sterrett said. “It would negate every positive thing we are trying to do.”
With the help of a $750,000 appropriation from Sen. Mike DeWine and Rep. Deborah Pryce, Campus Partners and OCC will put $30,000 per unit into restructuring repairs into each unit remaining in the portfolio.
“This will improve the curb appeal of the units,” Sterrett said. “If we improve the quality of housing you will improve the interior.”
Sterrett said he hopes to have a higher turnover of tenants remaining in the houses after they have been restructured.
“About 50 percent of the residents moved each year, which reflected the fact that this was housing of last resort,” he said.
The investment in the Section 8 units will allow more careful screening of tenants, which in turn will add stability to the neighborhood.
“People will be more willing to invest in the neighborhood,” Sterrett said.
Of the 122 units taken out of the portfolio, 34 will be demolished, and the remaining will be restructured and sold as private entities, said Hal Keller, president of OCC.
“Overall, I can say more than 100 (units) are in the Weinland Park and campus area,” Keller said of the Section 8 homes that were taken out of the portfolio. Keller was unable to name the specific addresses of the homes.
“Most of the units (were taken out) because of physical conditions,” said Preston Pace, director of Ohio Multi-family Hub for the U.S. Department of Housing and Urban Development. “They would take quite a bit to rebuild.”
Difficulties in management because crime and drugs were also reasons units were taken out of the Section 8 portfolio, Sterrett said.
Losing the units of low-income Section 8 housing is part of the process known as deconcentration, which is designed to create an economically diverse community by diffusing the number of low-income homes in one area.
The deconcentration process creates balance, Keller said.
“If we are able to do a modest level of deconcentration we would prefer to do that,” Sterrett said.
HUD has permitted 10 percent of the units to be taken out of the portfolio and OCC along with Campus Partners are working with Congressman Pat Tiberi to remove more in a “legislative fix,” Keller said.
The original proposal was to remove 300 to 500 units of the Section 8 housing. The renovations of the remaining units will take between three to four years. However, there is no rush to complete the project sooner, because of the possibility of removing more units with Tiberi’s help, Sterrett said.