Slavic Village Recovery, an ambitious effort to provide an extreme neighborhood makeover to a 530-acre chunk of the east side, has begun the process of purchasing 40 homes that will be rehabbed.

Two of these properties already have been put on the market with new mechanicals and other finishes for a mere $60,000, says Marie Kittredge, Executive Director of Slavic Village Development, a partner in the project along with Forest City Enterprises and Safeguard Properties.

"The model is: If my kids are 20-somethings buying their first house, what would that first house look like and what would be attractive to them?" explains Kittredge. "We have to build demand by telling the story. We believe our demographic is people who are already familiar with the neighborhood and ready to buy."

Slavic Village Recovery's innovative model focuses on renovating a majority of the vacant homes on a multi-block area around Mound Avenue and E. 54th Street, where 20- to 30-percent vacancy rates prevail. The homes are acquired from lenders and rehabbed using a model that includes all major items but does not include reconfiguring floor plans, adding bedrooms or other expensive options.

Kittredge says that the rehab costs will likely range from $40,000 to $50,000, allowing the partners to earn a small profit they can reinvest in the initiative.

"The key innovation is that there's no public subsidy," she says. "It's not possible to get the subsidy you'd need for a 25 to 50 home model. If you did just one [house], people would say that's scary. If you say, 'Hey, we're doing 20 to 25 and we have Forest City involved and major grants from Wells Fargo,' then that's different."

Kittredge expects additional homes to hit the market this fall. Last week, a group of volunteers from Forest City cleaned up 60 properties in the area. Some homes are being secured using SecureView, a new product that looks like glass but is far more durable, allowing houses to be secured without using ugly plywood boards.

Source: Marie Kittredge
Writer: Lee Chilcote