HomeStrategyPoliticsMiddletown Seeks Public Input on 2023 HUD Grant Spending Plan

Middletown Seeks Public Input on 2023 HUD Grant Spending Plan


The city of Middletown in Orange County is seeking public comments on its 2023 action plan for the U.S. Department of Housing and Urban Development (HUD) annual community development grant.

Primarily designed to improve living conditions for low-to-moderate-income residents, the program offers money to qualified communities based on census data, such as population, poverty levels, housing availabilities, etc.

Middletown has received the long-running federal grant for decades, using it to bring under-maintained houses up to code, provide discounted small business loans to create jobs, and build new community facilities.

The grant is administered through the city’s Office of Economic and Community Development, headed by longtime director Maria Bruni.

Epoch Times Photo
Middletown Community Development Agency Director Maria Bruni at her office in Middletown, N.Y., on Jan. 5, 2023. (Cara Ding/The Epoch Times)

The 2023 plan models that of the previous year, with a goal to rehab 14 single-family units and six multifamily units, and provide two small business loans to create 10 jobs.

Total funding from HUD is estimated at $430,000.

For an owner-occupied, single-family unit, the rehab grant goes up to $15,000; for an owner-occupied rental property, it comes in the form of a zero-interest loan.

Up to a $10,000 loan with a 3 percent interest rate can be granted for a non-owner-occupied rental property.

In the past, between 14 to 15 houses came through the program yearly, mostly owner-occupied residences; few rental properties applied, according to Bruni.

Epoch Times Photo
An under-maintained rental property (C) near downtown in Middletown, N.Y., on Jan 9, 2023. (Cara Ding/The Epoch Times)

Common rehab projects include replacing aging roofs, installing energy-inefficient windows, and changing old sidings. Applicants must pass specific income criteria.

“The money is not for aesthetic purposes and there got to be some code issues,” Bruni told The Epoch Times. “Just because you want granite countertops? No, we do not do that.”

The money can also be used for emergency projects, such as heating system breakdowns and sewage backup.

As for the small business loans, qualified applicants can receive discounted loans up to $50,000 for existing businesses and $25,000 for new businesses; the proceeds can only be used for purchasing equipment.

The loans usually come in five-year terms, with a rate of four points below the prime rate or 3 percent.

Epoch Times Photo
The North Wind Bread company in downtown got a small business loan from the city of Middletown in 2021 to purchase equipment. (Cara Ding/The Epoch Times)

The HUD money can also be used for the construction of public facilities, such as water and sewer infrastructure, street projects, and neighborhood centers.

In 2022, the city used a portion of the grant to build a new ice rink at Erie Way Park.

Plus, unused funding can also be rolled over into the city’s homebuyer program, with a cap of $10,000 per project.

The annual HUD funding is considered a block grant, which is subject to less federal oversight and used mainly at local discretion.

Epoch Times Photo
Local residents enjoy learning ice skating at the new ice rink at Erie Way Park in Middletown, N.Y., on Dec. 17, 2022. (Cara Ding/The Epoch Times)

Middletown residents can submit their comments on the 2023 action plan by Jan. 18.

In the last decade, the HUD grant received by the city has been decreasing, from $630,000 in 2010 to $475,000 in 2021.

City Homebuyer Program

Since 2016, the city has operated a homebuyer program to turn distressed, city-owned properties into up-to-code, owner-occupied residences.

Most properties came into city ownership due to delinquent property taxes, and the city would rehab the residences and resell them at below-market prices.

Qualified buyers must own no homes and meet specific annual income requirements: no more than $99,720 for a family of two or less and $116,340 for a family of three or more.

A program house can be purchased at up to $40,000 below the market price, with the decreased amount taking the form of a second mortgage on the property, which requires zero repayments if the buyer lives in residence for 10 years.

Epoch Times Photo
The house at 54 Washington Street will be rehabbed by the city of Middletown through the homebuyer program. A view of the house on Jan. 9, 2023. (Cara Ding/The Epoch Times)

So far, the program has taken on 12 houses and is in the process of adding two more, according to Bruni.

“It is a very rewarding program,” Bruni said. “These homes were deteriorating, and now we are stabilizing the neighborhoods by doing this.”

Most program participants are first-time homebuyers, she added.

A Middletown native, Bruni grew up seeing the city’s decline through the windows of a downtown department store where her father used to work as a tailor.

She said her work at the city’s community development agencies has been rewarding because she and her team get to be part of a Middletown comeback.

“I wouldn’t be able to do this without a good team behind me,” she said.

Cara Ding

Cara is an Orange County, New York-based Epoch Times reporter. She can be reached at cara.ding@epochtimes.com



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