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South Bend Redevelopment Commission Commissioners' Regular Meeting and Public Hearing June 2, 1978 7. PROGRESS REPORTS, Continued he is building,:at that figure, plus added security costs and other things that go with the type of luxury housing that comes to mind when you speak of it - like the sort of thing that is along the Chicago lake front, etc. ..you are talking anywhere from $700 to $1500 a month per unit, how much market there is fo.r that kind of housing in this area, I don't know. I am not in that business. No one is going to go out on a limb and build apartments at those kinds of figures unless they have some pretty good expectations of customers for Ms. Derbeck: But I said that piece of land doesn't have to be devoted to housing at all. Mr. Wiggins: No, but at the same time we do not have other customers knocking on our door to build anything else there. Mr. Brownell: I think it is only fair to say that one of the reasons that he is talking about housing is because he can get financing that way. Mr. Wiggins: This is part of what Tom appears to have built in in the thi gs that he has proposed so far. It is one of his avenues to finance his program. Ms. Derbeck: Shall the decisions about what is to go in downtown be made on the basis of a developer being able to get Federal subsidies? Mr. Nimtz: Jeanne I think we need a mixture, I think this has been the feeling of the Commission through the years, we need a mixture . of commercial enterprise and living accomodations for people downtown. I think the point Don is trying to make is that when you say "subsidized housing" - when you get into this program where the possible top rental would be something in the neighborhood of $320 - $340 per month, this is good rental and of ourse it.depends on your income as to whether you are going to get sub idized on that or not. It is possible I think the lowest rate is abo t $88 per month ?? Mr. Wiggins: The subsidy operates on the basis of 25% of the income of per on renting the apartment and if their income is high enough, they wouldn't get any subsidy at all. There are also some other conditions in- volved. This is all keyed to upper age levels, you must be 62 or older or :ome under some other disability provisions that would allow you to be a tenant and qualify for this subsidy. If you are not being sub- sidized, I assume you can pay the rental and I assume these other factors would not matter but I really wouldn't see many young families with chip dren being interested in that kind of accomodations in that kind of an irea. I think the market will develop and as far as I personally am con erned and from the consultants I have listened to, it seems to me ME