House linked to Providence Councilwoman sold and family makes hefty profit
Surprising new detials Wednesday on an affordable housing unit linked to a Providence city councilwoman.
We've now learned a house - purchased under questionable circumtances with taxpayer money - has now been sold - and the former owner's making a big time profit.
The owner of the property was facing an ultimatum - either sell or reimburse the city thousands of dollars spent on renovations.
He decided to sell.
And he made a profit of $112,000.
The city bought the house house from Brown University four years ago at the urging of councilwoman Balbina Yung.
It cost almost $120,000 in city bond money and narragansett electric company expnses to more the house.
It ended up on a lot that cost the city $9,000 across the street from councilwoman Balbina's home.
After $91,000 in city controlled federal money was used for improvements, councilwoman youngs son Christopher and his wife Sylvana moved into the first floor.
But the mortgage was in the name of Sylvana's father, Manuel Depina, who could not prove he lived in the house as required.
The planning department outlined his options.
To either sell the propertry or return the subsidy money, the federal subsidy money that went into the house.
The house was sold last week to a family of five. Officials inssist the fasmily meets all the requrements for afordbale housing.
According to documents in city hall, Manuel Depina paid $90,000 for the house in 2001.
He sold the house last week for $202,000
We're told the sale price is about right for a three story house in good shape in that area.
And the agencies that were involved in establishing the property as affordable say they don't control profits and losses. We don't have a great interest in, in kind of governing those issues because again we are interested in this property remaining affordable for the next 15 years.
Councilwoman Young has denied any wrongdoing...
Her son and his wife have moved from the house.
The planning department says it will monitor any tennants who move into the house to make sure they - like the new owners - meet affordbale housing income guidelines.