Friday, January 15, 2010

East Bluff Housing Service- flipping for renters

Yes, the EBHS is in the business of flipping houses for rental.

Dale Hanssen, the EBHS Treasurer, is also the owner of Principal Property Management. Mr. Hanssen, who is a volunteer, has offered the EBHS his expertise in buying, renovating and renting properties.

Mr. Hanssen is charged with choosing the properties to renovate; negotiating with the banks; deciding on the renovations to make; hiring the team (there is no bid process) to do the work; sets the schedule for getting the work done; decides who will rent the property; runs the background check on the prospective tenant via Principal Property Management; negotiate the contract with the tenant; and then oversees any maintenance on the property that the tenant may need (through Principal Property Management); at a rate decided upon by Principal Property Management.

East Bluffers are concerned that there may be a conflict of interest with Mr. Hanssen being the Treasurer of the EBHS and the owner of Principal Property Management. I wonder if there is even a contract between the EBHS and Principal Property Management? Hmmm... I would love to see the terms of that document.

In the meantime, there are longstanding homeowners who are hoping to get loans through EBHS for a roof or a porch (you know $2,000-$3,000), but EBHS won't return their calls or answer their e-mail. Not that the EBHS could help said homeowner, because the money that the EBHS has is tied up in flipping houses for renters.

All of that aside, East Bluffers know that deep in their hearts there is the fear that the EBHS is getting ready for the influx of public housing tenants that the City is relocating to the East Bluff. Could that be the real reason why the City of Peoria needs the EBHS to work out? From what I understand City staff attended the meeting heavily. Everybody from the Corporation Counsel, to the Director of Planning, to five Councilmen and even a deputy City Clerk was in attendance.

Just think - the East Bluff Housing Services a division of the Peoria Housing Authority. Is that where we are heading? I don't think any homeowner in the East Bluff would relish the thought of that. I know I don't.


Mahkno said...

Wow... just wow. EBHS is part of the PHA?... Guess I never really understood the purpose of the EBHS. What exactly is its chartered purpose?

The Journal Star says: "The East Bluff Neighborhood Housing Service has been in existence for 20 years, and over that time has tried to preserve the East Bluff's still-viable housing stock by offering small-scale loans to homeowners wanting to spruce up their own homes or rehab property for others."

Flipping homes to rental is a huge disserve to the area and would make a strong case for its dissolution.

Emerge Peoria said...

No Mahkno, they are not a part of the Peoria Housing Authority. I am speculating that if they continue down this path - they may as well be an extension of the Peoria Housing Authority.

erin said...

I'm amazed that they don't realize why the community is going downhill: because of bad renters. Flipping houses for rent is NOT going to fix the problem. Maybe improving houses and then putting them on the market, but not renting them out.

This is so frustrating. I do not want my increased property taxes to go towards increasing the number of renters in our area!

Middle Aged Woman Blogging said...

Homeowners are priceless to all neighborhoods... not renters. Very frustrating!

Frustrated said...

Why is someone sitting on this Board and at the same time deriving some of his livelihood from his position, not a violation of Board policy? Maybe the first order of business after restaffing the Board is to change the by-laws??

Good job bringing this to light.

Emerge Peoria said...

Hopefully the Ciy Council will see fit to suggest some changes to the EBHS when this goes before them again in February.

The EBHS meets the third Thursday of every month at the house on Wisconsin @ 6:00. There is a meeting this coming Thursday the 21st.