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Hernando Today

Stabins Unveils Stimulus Plan

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By MICHAEL D. BATES

Published: August 1, 2008

BROOKSVILLE - County Commissioner Jeff Stabins has unveiled his idea of an economic stimulus plan he believes will put builders and subcontractors back to work by rehabilitating homes of residents whose household incomes fall below 50 percent of the median.

Stabins calls his Housing Enhancement Loan Program (HELP) an alternative to reducing impact fees by 25 percent, a proposal that will come before commissioners Tuesday.

Stabins said he will contact about 100 people whose homes are valued at less than $30,000 and ask them if they would like to apply for zero-percent loans from the already-existing State Housing Initiatives Program (SHIP), administered locally by the county's housing authority.

SHIP funds, distributed on an entitlement basis to all 67 counties, are designed to help low- and moderate-income families repair their homes.

Stabins hopes local builders will contact the housing authority to participate in the rehabilitation of five or six houses per month with a cap of $35,000 per house. None of these low-valued homes are mobile homes, he said.

The initial reaction from the president of the Hernando Builders Association was one of skepticism.

Dudley Hampton Jr., president of the Hernando Builders Association, said he applauds Stabins for trying to come up with a plan to help stimulate the local economy. Used in conjunction with an impact fee reduction, the HELP plan may put some contractors to work, he said.

But it does nothing to help alleviate the glut of existing used homes on the market and provide down payment assistance to potential homebuyers, which is the basis of the impact fee reduction, he said.

"Any program that's out there that can help put people back to work is certainly worth looking at," Hampton said.

But it doesn't go far enough, he said.

"What does that do to get the current existing homes off the market?" he asked. "That's the whole thing about reducing the impact fees."

Jeanne Gavish, broker-owner of Gavish Properties and Investments Inc., said the SHIP funds should be used for the purpose originally intended — to help first-time homeowners with down payment assistance.

Gavish said the cutoff date for those people was July 18 and the need was so great that the potential recipients were chosen by lottery.

Housing Authority Executive Director Donald Singer said about $1.3 million was earmarked for down-payment assistance while $1.8 million can go toward helping the very low income elderly rehabilitate their homes.

The rehab funds will not impact those who have already applied for down payment assistance, Singer said.

Singer said Stabins' program, if passed, would help put painters, carpenters and other contractors to work.

Commissioners are scheduled Tuesday to discuss taking advantage of an appropriations bill that would set aside $20 million statewide in nonrecurring funds to provide down payment assistance to first-time homebuyers.

To qualify, Hernando County needs to reduce impact fees by at least 25 percent for a minimum 18 months.

Stabins said he is against reducing fees because it would severely affect the county's capital improvement projects.

Realtor Gary Schraut called Stabins' plan an "excellent" idea that puts subcontractors back to work.

However, Schraut said the county must take the next step to spur the homebuying market by reducing impact fees.

Reporter Michael D. Bates can be reached at 352-544-5290 or mbates@hernandotoday.com.

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