Creating affordable homes out of vacant and unsafe buildings is the goal of a project that kicked off today in Little Rock. The City of Little Rock joined Greenmore Homes, LLC, the Arkansas Development Finance Authority (ADFA), and the Arkansas Commissioner of State Lands (COSL) to generate funding for the remodeling and new construction of 71 housing units in the mid-town section of the City.

“This project is about more than redevelopment. It’s about partnerships,” said Little Rock Mayor Mark Stodola. “Thanks to this partnership between public agencies and private developers, dozens of homes in the central core of our city will be rehabilitated with energy-efficient features making them affordable to live in.”

Thirty of the single-family homes will be rental units funded in part by a $1.8 million interest-free loan from the federal government’s Housing and Economic Recovery Act (HERA) Neighborhood Stabilization Program 1 (NSP1). That support was awarded through a competitive grant process by the ADFA.

At least 30 new jobs will be created during the site preparation and construction. All the houses will be “Energy Star” certified which are 15% more energy efficient than a typical new home.

“In this economy, it’s the ideal time to rebuild inner cities,” said Scott Reed, President of Greenmore Homes, the developer who’s heading up this project. “Our first three Energy Star concept homes we built in Little Rock all sold in one day at asking price with multiple offers.”

All 30 rental properties were purchased from the COSL. These properties had failed to sell at auction. The additional 41 properties will be privately financed and sold to the general public without restriction.

“This is truly transformational for the neighborhoods in this part of Mid-town south of I-630,” said Mayor Stodola. “There has been a critical need to enhance existing neighborhoods by clearing or renovating abandoned, vacant and unsafe housing, as well as new construction in the Greater Central High area south of Interstate 630 and this project is an investment for the future.”

This project is expected to be completed by 2012.