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7. NEWIBUSINESS (Cont'd <br />4) Non- Profit Group Rehabilitation involvement, would be expanded <br />to take in all e projects IN at we are involved <br />with. <br />The specifics are outlined in the regulations and the guidelines for <br />the four separate programs. As far as major changes in the contrac- <br />tual requirements -- talking about construction contracts - -we are re- <br />commending that a couple of the insurance requirements be altered <br />specifically, as far as subcontractors are concerned, as the pro - <br />perty insurance requirements, I believe, were set a little bit too <br />high under the Revenue Sharing Program. The other alteration is <br />that, under Community Development, we are no longer required to <br />request a separate wage determination from the Department of Labor. <br />We are able to use the existing union rates for the City of South <br />Bend, which is a first under our rehabilitation programs, and we <br />are very happy about that aspect." <br />There were no questions from the Commissioners. Motion was made <br />by Mr. Wiggins to support the above recommendations, as outlined, <br />seconded by Mr. Cira and carried. <br />Ms. Jeanne Derbeck, Reporter for The South Bend Tribune raised the <br />question, "What is the HAO referral? Why should the City be in- <br />volved in this ?" Mr. Crighton said the "program is to take up an <br />existing gap between our two housing programs. All of our programs <br />have been designed so that there is little or no overlap, and, in <br />this particular program, we are involving citizens that are over <br />62 years of age, and these would be people who have gone to the <br />Housing Allowance Program that do not have the resources to make <br />the recommended repairs on their homes. In other words, they <br />would qualify for monthly subsidy from the Housing Allowance <br />Program, but they would have to make the repairs before they could <br />get it. In this case, if they meet the HAO guidelines, then they <br />would qualify for grant assistance under our program. We would re- <br />pair the home; they would go to HAD and be able to get their monthly <br />subsidy, but they have to be over 62 years of age. The home would <br />be brought up to standard." <br />Commissioner Wiggins advised the money that the people get from the <br />HAO can help pay their rent, interest or mortage payments, taxes, <br />utility bills, home maintenance and other housing expenses. "Now, <br />the one big problem that HAO has, as it appears, is that it will not <br />accept a house under this program unless the house is already up to <br />Code at the time it is accepted. The other problem that is a matter <br />of some concern is that many of the people who would be eligible for <br />housing assistance are, by reason of age, or for other reasons, would <br />find it difficult to obtain a loan, or supervise the repair of their <br />home and a contractor to make sure that the work was done, done pro- <br />perly and be up to code when finished, and the possibility of not <br />being ripped off in the process. I think this is also an attempt, <br />in some degree, to supervise that operation to prevent these things <br />from happening." <br />- 11 - <br />