Money woes to delay revamped Daytona Village

Filed under DAYTONA BEACH

BY JAMES HARPER
DAYTONA TIMES

Demolition is completed and Daytona Beach will be participating in a groundbreaking ceremony for the new Daytona Village on July 26 at 2 p.m. However, construction of new apartments is not expected to be done anytime soon.

Emory Counts

Emory Counts, Economic and Community Development director of Daytona Beach, said the project is divided into phases.

“The number of phases will depend on how much funding can be put together and used in the project.  I expect there would be at least three phases,” Counts said.

Construction of the initial infrastructure has begun.

Counts noted that the first units could be available before the end of 2013.
The project is expected to cost $12 million total, which officials have yet to secure. Plans are for 70 two- and three-bedroom rental units.

Funding sources
Counts said a significant portion of the money the city had toward the project was used to purchase the property, remove the asbestos and demolish the buildings.

“All this had to be completed before we could consider doing anything more per Florida Department of Environmental Protection regulations,” Counts explained.

The first phase of the development included Neighborhood Stabilization Program (NSP1) funds of $2,557,634.

Counts noted that the speed in which the construction begins and completed will depend on leveraging other sources of funding, including the $1.1 million in Neighborhood Stabilization Program (NSP3) funds already allocated to the city.

Complaints, then foreclosure
Daytona Village was foreclosed on and bought by the Daytona Beach Housing Authority. Plans were to renovate the 76-unit complex and reopen it as a mixed-income property.

Because of the deteriorating conditions of the complex, multiple complaints were issued against former owners Surujnauth and Liliwatti Bharrat in Volusia County court.

The owners defaulted on its private mortgage, foreclosure proceedings ensued, and their Department of Housing and Urban Development (HUD) Housing Assistance Payment contract was cancelled.

The property went into receivership and was ultimately purchased for preservation by the city after a completed foreclosure using Daytona Beach’s Neighborhood Stabilization Program funds awarded under the American Recovery and Reinvestment Act (ARRA).

Property over 40 years old
Now plans call for city and housing officials to replace them with something that looks like The Villages at Halifax around the corner on International Speedway Boulevard that opened four years ago.

Counts will be working with former Daytona Beach Housing Authority Executive Director Pete Gamble to rebuild the complex with city, federal and state funds.

The original Daytona Village was more than 40 years old. The complex consisted of 13 concrete block buildings, which could be entered from Mary McLeod Bethune Boulevard or Keech Street.

Plans for new apartments include three new three-story garden-style buildings. The mixed-income complex will include a laundry room, computer lab and community center.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>