Mesa seeks federal funds to clean up blight

Graffiti on stucco walls and a handful of abandoned grocery store carts may not be enough to prepare one for what's inside a boarded up Mesa home in ZIP code 85204.

An unlocked side gate leads to an empty pool. Rain water, collected at the bottom, has turned a nasty green color, with a black trash bag floating on the side. A torn-up mattress lays on the deck, glass broken into smithereens is strewn all across the backyard and weeds are 3 feet tall.

It's hard to imagine this home was once someone's pride and joy.

"This is clearly a health and safety hazard," says Jay Close, Mesa's code compliance officer, as he surveys the foreclosed house for the umpteenth time.

For Close, the scene spurs a sense of frustration about what's becoming an increasingly bad situation across the country, especially in lower-income neighborhoods. Empty houses in disrepair, increasing transient activity, neighbors complaining about suspicious activity and decreasing property values are becoming hallmarks of the aftermath of the economic crisis.

In July, Congress passed the U.S. Housing and Economic Recovery Act of 2008, which allocated nearly $4 billion across the country to help save struggling neighborhoods. Mesa is applying for the federal grant to prevent blight by partnering with nonprofits to clean up.

Mesa's share in the Neighborhood Stabilization Program, under the purview of the U.S. Department of Housing and Urban Development, is about $9.6 million.

The city's Neighborhood Services Department has been in discussions with area nonprofits keen on participating in the program.

Ray Villa, Neighborhood Services Department director, who recently informed the City Council about the plans, said Mesa would target the area bounded by Main Street, Val Vista Drive, Baseline Road and Mesa Drive. The 85204 ZIP code was chosen after officials looked at foreclosures, serious incidences of crime and code violation issues.

"The aim is to provide permanent and sustainable housing in that area to create stabilization, not just handing out money but to meet regularly to accomplish the goals," said Villa, who also plans to work with nonprofits.

By partnering with nonprofits, the city will use the money for a mix of purchasing and rehabilitation of rental properties, demolish some, and assist homeowners with down payments and home ownership counseling.

Mayor Scott Smith joined a few council members in hoping that the money is spent as a self-contained project that increases homeownership and enhances the neighborhood, with the idea that homeowners tend to maintain their homes more than temporary residents.

The city may have to purchase the properties, rent them and hand them over to a nonprofit, Villa said.

Some of the nonprofits that have shown interest in the program, including the Marc Center and Save the Family, plan to use the money to develop transitional living housing.

Smith also did not want a situation created where Mesa ends up acquiring homes and then has to manage them as rental properties because the council wants to stay away from the rental management business, like it did in the case of the Escobedo complex in west Mesa.

Also, the council directed city staff that there should be no obligation for continued city money from the general fund after the nearly $10 million is spent.

City Manager Chris Brady and Villa assured council members in a meeting earlier this month that Mesa had no such intention.

Councilman Kyle Jones, who represents part of the targeted area, said he has some concerns regarding the grant, which the federal government "put together hastily."

"We're trying to figure out the rules and strings attached," Jones said.

Meanwhile, Close said things seem to be getting worse, with many homeowners "one payment away from foreclosure."

Close says many people just walked away from the property after cashing in on refinancing schemes. Many are out-of-state owners who bought these homes as investment properties on the Internet and haven't ever set foot in the city.

Many others bought houses on subprime loans and then bailed when prices dived.

The problems they left behind include repeated transient and vandalism issues.

"People have gone in and cut holes, removed copper plumbing - it's rough out there," Close said.

It's been hard to track the owner or find the mortgage company to contact in some cases. Banks, said Close, are beginning to do their part in cleaning up the repossessed properties by working with real estate agents.

To say houses are in disrepair is an understatement. One stinks. At least six stray cats roam about one property. Feces are smushed on a blue baby stroller in the front yard.

Close says he feels for the other neighbors who maintain their properties.

"It's unfair to them to live near these terrible homes," he said.

Mesa resident D. Jordan, an active block watch captain in the Reed Park neighborhood, also in the target area, is concerned by the worsening situation.

"The neighborhood has gone way down," said Jordan, adding that gang activity has "skyrocketed," leading to a sense of fear for families.

Close said if he had funding to clean up the properties, the city could put a lien on it to recover the money.

"But without much money and few resources, it's a feeling of futility," he said, as he surveys a bunch of repossessed homes near Broadway Road and Forest.

"At this point I feel like a fireman without a hose," said Close.

The federal funds aren't the final solution, officials believe, but a start.

By getting responsible owners, the neighborhoods can get better, says Villa. He believes it would benefit the city because crime increases in squalid neighborhoods.

Close is hopeful, too.

"If we do it right it can be a good thing," said Close. "A few years ago, our biggest issue used to be overgrown weeds - wish those days were back."

Villa said he hopes to send the related application to HUD by Nov. 24.

Pat Gilbert, chief administrative officer of the Marc Center said the group's objective is to increase transitional housing opportunities for people in need.

Janice Parker, executive director of Save the Family, said the organization, which provides housing for low-income families, hopes to use the money for longer-term rental housing. "Many people are not in a position to be homeowners, so they need rentals they can afford," Parker said, adding that getting the federal money for rehabilitation would help nonprofits accomplish their goals.

"This isn't the answer for everything and everybody, but it can help stabilize some areas," she added.