Laserfiche WebLink
South Bend Redevelopment Commission <br />Regular Meeting - August 6, 1993 <br />6. NEW BUSINESS (Cont.) <br />n. continued... <br />court hearing scheduled for August 13 at <br />which the house will be ordered demolished <br />if there is not a plan in place for bringing it <br />up to code. <br />Mrs. Kolata noted that this house is located <br />in the National Register Historic District. <br />Therefore, federal funds cannot be used for <br />rehabilitation unless the rehab meets the <br />guidelines for the local Historic Preservation <br />office and the state Historic Preservation <br />office. Some of the work originally <br />proposed for this house did not meet those <br />standards and there has been some <br />negotiation and compromise in order to be <br />able to save the house and still keep if <br />affordable. <br />Mary Richmond explained the loan <br />application. She noted that the initial rehab <br />cost was $50,369. However, the additional <br />costs resulting from the Historic <br />Preservation requirements has added <br />approximately $11,000 for a total loan <br />amount of $63,650. The after rehab value <br />of the home will be approximately $31,000. <br />Kathy Baumgartner's presentation at the next <br />Commission meeting will attempt to explain <br />the unusually high loan to value ratio versus <br />rehab costs. <br />Ms. Richmond explained that the Bureau of <br />Housing is trying to redesign the West <br />Washington Loan Program to make it more <br />feasible. The loan program as it has been <br />redesigned has no grants and the interest rate <br />is determined by the each applicant's <br />income, up to market rate. This loan to <br />Rev. and Mrs. Harris is for $63,650 for <br />-15- <br />