RM 07-11-80 - Laserfiche WebLink

Home Browse Search

South Bend edevelopment Commission Regular Meeting July 11, 1980 c. contilnued..... They avoid relocation costs and displacement. Our investigation reveals that the petitioner intEnds to either use 11 -b tax exempt financing or ,% tandem financing or if possible a com- bination of the two. The total project cost is 16,166,622.00. We note that a visual ins ection was undertaken and while the units app Ear to be generally occupied, we did note an accelerating rate of exterior disrepair. Bas Ed on our experience a correlation can be made between exterior of residential conditions and interior ones. We find that ever. though no interior inspections took place we are confident that those inspections would reveal that interior conditions are ind ed decaying due to age and economic circumstances. We have checked substandard records and have found that there is an outstanding complaint order against 315S to 3523 Putman and 3433 Curtis. That complaint order has been out, starding for nine months, therefore, we conclude that the regulatory process has apparently not been effective in improving conditions. Finally, based on Ihe conversation with HUD Area Manager, Howard Campbell, the proposed reh bilitation and construction pro ect has received a firm commitment froii HUD for Section 8 Housing Assistance payments. We note that under the Houqing Act of 1937, which was the basis for the Section 8 program and the regulations that implement it, the purpose of substantial rehabili- tation is to improve property to safe and sanitary conditions. We conclude then that since HUD has made a permanent co fitment to the project, it is rather obvious that HUD believes the conditions in the area to be deteriorating. There- fore, the staff concludes in the report that the department believes the area qualifies for tax abatement for the afore men ioned reasons. 17