RM 11-16-79 - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Me ting - November 16, 1979 6. NEW BUJINESS (cintin a. Mr.1 Ellison continues... pr perty, I don't know that that family with its economic circumstances would be able to get FHA approval, whether thE lender wants to buy it or not. So it may be necessary in some situations to determine if that family is eligible for a 312 loan, which is given a.3 percent rate, and allow it to pay that first mortgage. That particular situation wo ldn't need the FHA appraisal and so on, to the degree it would for an FHA assisted mortgage. The program offers .a rest deal of flexibility to take a housing resource and then match a family or families with a variety of finan- cial circumstances.to get them into that house so that the house becomes productive, becomes rehabilitated and becomes an asset to the community. I like these kinds of efforts anc frankly think the City and non - profit organizations should concentrate dollars in this manner to a greater decree, because I believe the concentration of dollars along these lines offers better opportunity to reinforce whet investment otherwise would take place in the area. To me it's better to rehabilitate four houses on that street than one house. Mr Cira: The thing,is, Carl, have these houses been put .up for bid yet? One house has $16,000.00 the other ho se $11,000.00? Mr Art Largent: These houses are boarded up. All four are privately owned. One has been condemned. Three are in the process and if something isn't done they will be condemned. These houses are also 300 ft. away from one Southold is doing right now on the corner of Studebaker and Liston. I happen to be in the mortgage business, I have talked to two people already that looked at these to get a regular conventional mortgage. A lender can look at these properties with a completed value using what mo ies Southold has put in as sort of an equity for the bu er where the buyer can qualify for mortgage with very li tle down compared to regular 20% down. That's what we ar looking at, to try to do four of them in one block. Th same four that are boarded now will be condemned and pr bably demolished otherwise. Mr. Harcus: Just one point for clarification, normally the non - profit agency is required to pay any rehabilitation expense that are above $8,000.00. Southold is making an investment here beside you. The second point is to safe- guard the property during the months of rehabilitation. After the health and safety items are serviced we encour- ag occupancy on a rental basis. To establish the ultimate bu er from the low - moderate income that person can become th renter and the protector of the property during the re abilitation. You can further, according to the Boo