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7. NSW BUSINESS (Cont'd 2) It has further been suggested that the residency require- ment of twelve (12) months be lowered to six (6) months' occupancy. The Advisory Committee feels that our present twelve (12) months' residency requirement would not promote new homeownership for residents. Mr. Keith P. Crighton, Director, Bureau of Housing, advised the above guidelines will establish a limit from the beginning on referrals on our cost estimate. When the estimate for the cost of repairs would be in excess of $8,000.00, it would be brought to the attention of the Committee and would be rejected on the basis of limitation. This would not, however, apply to a con- tractor which would be approved by both the Commission and the Council that would be over $5,000.00 and it would not affect the change orders for additional needed repairs. Commissioner Wiggins pointed out that the applicants would have the right to appeal the'rejection to the E -7 Committee for re- review. Motion was made by Mr. Wiggins, seconded by Mr. Chenney and carried, for the adoption of the above amended guidelines, as noted. c. Change Orders to Rehabilitation Contracts, E -7: Commission CHANGE approval was requested of the following Change Orders to ORDERS Rehabilitation Contracts, Project E -7, Bureau of Housing: APPROVED 1) C.O. #1 to Contract #7, with Barany Heating and Sheet Metal, C.O. #1 for an increase in contract amount of $175.00 [Contract: TO CONTRACT $6,200.00], for an amended contract total of: $6,375.00, 7, E -7 for rehabilitation work at: 217 East Keasy Street. Mr. James L. Johnson, Jr., Chief Inspector, Southeast Bureau of Housing, in his written memorandum substanti- ating the change order, advises the contractor states that the 100,000 BTU furnace called for in the specifi- cations is too small for the structure and could possibly burn out within two to three years. The contractor, there- fore, recommends 140,000 BTU furnace to adequately heat the structure. The cost of the 140,000 BTU, including eight hot air ducts and six cold air ducts, in accordance with the South Bend code is: $1,225.00, deletion of the 100,000 BTU @ $1,050.00, or an increase in contract amount of $175.00, with total amended contract of $6,375.00, with no change in contract time. Commissioner Wiggins' question on who established the 100,000 BTU in the first place, was answered by Mr. Crighton that it was by our original staff who are no longer with us. The heating is determined by the square footage of the house and this is also checked with the Building Department. Motion was made by Mr. Wiggins, seconded by Mr. Donaldson and carried for the approval of the above change order, as noted.