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6. NEW BUSINESS (Cont'd has to be repaired, the homeowner is receiving assistance that should allow them to hire a contractor on their own, and that's a part of what the program is attempting to do, is to help people assume respon- sibility for their own home. Commissioner Donaldson asked if our inspectors make the Housing Allow- ance inspections? Mr. Crighton advised our inspectors do not make the actual inspections of the dwelling. In our other projects, we have the massive 10 -page inspection sheet filled out;'in the HAO program our inspectors do not. Mr. Crighton added that most of the people in the program are elderly. We have a few handicapped persons under the age of 62; however, most are over 62 living on rather limited incomes. In all probability, the subsidy they get will not be sufficient to pay for a new roof and they are not in the particular income group where they can readily go to a bank and get a large loan for the repairs. That's the problem. Commissioner Wiggins said he would like to suggest, that perhaps in these instances we approve the change orders, but we need to have some sort of an understanding, or meeting, with the Housing Allowance people so that this business is a little better refined, or at least for his own understanding, if that is a possibility. Mr. Brownell said one of the things he might bring to the Commission's attention is that HUD has stated that Community Development can no longer do this sort of thing. These two sets of HAO contracts will end it. HUD has ruled that city -wide repair of houses for Housing Allowance is an improper expenditure of funds for Community Development. They can only do it in selected neighborhood areas where they are attempting to stop deterioration, so the Commission is facing the last of the two sets of HAO contracts for rehabilitation. HUD has agreed they will pay these to meet their obligations they have incurred on these applications. Commissioner Wiggins said in view of the circumstances he will make the motion that the previous Change Order No. 6 that was tabled, (6g), and this Change Order No. 7, (6h), be approved in the amounts as stated. The Chair asked for a second to the motion. Commissioner Cira asked why approve them now, if there is only going to be the two they are going to be making. If you don't really approve of it, why approve them just because it is going to be the last two? Mr. Crighton said they will not be the last two. Mr. Brownell's statement was that we will only have the last two contracts. There will be 36 more houses on the last HAO contract set that will be having construction work performed on them during the next three months; the Contract above has 17 houses on that contract set, and discussions are on Contracts 7 and 14 of that set. The last contract set has been awarded but is not in effect yet. Commissioner Wiggins said his concern was really in determining policy insofar as the Housing Allowance people are concerned; if this kind of operation is not going to proceed or go forward, then there is no real problem in determining policy. The policy for a non - existent program doesn't mean much. In these terms, do we hang up these people or not? - 12-