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South Bend Redevelopment Commission <br />Regular Meeting - April 7, 1995 <br />loan agreements with the Commission to <br />turn that property into low income rental <br />housing. Under the Rental Rehab Loan <br />Agreement 10 % of the loan is forgiven each <br />year if the property meets certain <br />requirements. If the property owner abides <br />by the terms of the agreement for ten years, <br />he would not have to repay any of the loan. <br />By purchasing the property from the owner, <br />the Commission prevents the owner from <br />fulfilling the loan agreements and receiving <br />the yearly waivers of payment. The staff <br />feels that it is not fair that the owner be <br />required to pay back the balance when it is <br />the Commission's action that causes the <br />terms not to be fulfilled. This Satisfaction <br />of Federal Rehabilitation Loan Agreement <br />releases the owner from further obligation. <br />The balance on the loan is just under <br />$4,000. <br />Upon a motion by Mr. Donoho, seconded <br />by Mr. Hunt and unanimously carried, the <br />Commission approved the Satisfaction of <br />Federal Rental Rehabilitation Loan <br />Agreement and Release of Mortgage for <br />Clarence S. and Thelma Allison. <br />i. Commission approval requested for <br />Resolution No. 1335 accepting the transfer <br />of real property from the City of South <br />Bend, Indiana. <br />Mrs. Kolata explained that the City of South <br />Bend owns five lots in the 600 block of <br />6. NEW BUSINESS (Cont.) <br />i. continued... <br />C -20- <br />COMMISSION APPROVED THE <br />SATISFACTION OF FEDERAL RENTAL <br />REHABILITATION LOAN AGREEMENT AND <br />RELEASE OF MORTGAGE FOR CLARENCE S. <br />AND THELMA ALLISON <br />