Shaker Makes Sale With Private Home Rehab Program

With its latest private rehabilitation project, Shaker Heights aims to continue putting diminished properties back to productive use.

City Council on Monday approved an ordinance to sell a vacant home on Lomond Boulevard to Property Renewals Inc., a company with a history of repair homes throughout the city.

The transaction is the second under the purchase-private rehab sale procedures established by the city in 2010. 's Neighborhood Revitalization Committee approved the proposal earlier this month before passing it to council.

"(Rehabilitating) this property would add approximately $130,000 to the property tax base, resulting in approximately $4,500 in annual property tax revenue to the city, schools and library, and $1,500 of annual income tax," Kamla Lewis, director of neighborhood revitalization, said as she read a memo to council.

The city is already set acquire 16633 Lomond Boulevard through a low-cost pool agreement with County Land Bank and U.S. Department of Housing and Urban Development. Once that happens, Property Renewals Inc. will purchase the property from the city and cover the city's closing costs, taxes and title work.

It will then correct all point-of-sale violations and make renovations including the installation of a new roof, kitchen, bathrooms and refinish the floors. A final price for the home won't be known until closing, but Lewis said that Property Renewal's purchase would be "cost neutral" to the city.

The double lot has been vacant since 2010. The renovations are expected to cost $80,000 to $100,000. Lewis said the purchase prevents the city from paying to demolish the 85-year-old home.

Owned by Bill and Scott Frey, Property Renewals is designated a "Shaker Renovator" by the city. The company has already rehabbed 11houses in the Fernway, Lomond, Onaway and Sussex areas for a combined investment of nearly $1 million. Each home sold considerably more than it was purchased, with the largest amount in the sale of 3130 Woodbury Road for $295,000. Property Renewals originally invested $110,000 in that home.

"This is like lifting up the whole end of a neighborhood and giving it a new face," Councilwoman Nancy Moore said. "I'm really excited about this prospect."

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