RM 11-16-79 - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Me ting - November 16, 1979 6. NEW BU INESS a. codtinued... Mr. Ellison: I don't know how familiar you are with the 13 CO block of Liston Street. It's inside the Model Neigh - bo hood and the Community Development Neighborhood Stra to y Area referred to as the Near West Side. What they arE apparently seeking to do is to acquire and rehabili- tate four properties along the street that has seen some sp t demolition and some properties that have been vacant anc boarded for a period of time. They are trying to de onstrate that through a non - profit organization and with the utilization of some public dollars, they can not only retain those four units in the housing stock, but provide housing for lower income people as well. I wo ld imagine the mechanics would be this, if we approve thE nQn- profit group grant for $8,000.00, according to thE rules of that program, they can use the $8,000.00 for acquisition costs and /or rehabilitation. Since it is a grant to a non - profit group, they then apparently fi d a buyer who presumably, say through a 312 loan, . co ld accomplish the balance of the repairs that may be ne essary. So that what you could wind up with is a 312 or other financial mechanism which provides a first mortgage for a family. This process allows a family th t.ordinarily could not afford to buy a house an afford- able homeownership opportunity. It's complex, but a very in ovative way to try to achieve homeownership for lower in ome people, to concentrate efforts in a particular bl ck in the community that has already seen substantial de erioration and to demonstrate what you can do if you co centrate and orchestrate the coordination of public, pr vate and non - profit efforts within a particular aria of the community. Mr. Robinson: Do I hear a motion for approval for these grants for Southold Heritage Foundation? Ms Auburn: I have a couple of questions. I'd like to know if we know who the mortgage company is and I'd like to know if the mortgages are going to be let at the current market rate? Mr Ellison: It depends on the nature of the family in- vo ved. If, for instance, you have a family of four and their annual income was $7,000.00, if the non - profit group grant for 1313 Liston is $8,000.00 and somebody has to then put up another $8,900.00 to rehab the -10-