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At the conclusion of the meeting I agreed to pursue this matter further by looking at the CD regulations to see how the project could meet the benefit test. Since you were uncertain where the house would be moved or what use it would ultimately have, I have looked at three possible uses. They are, (1) owner occupied house, (2) rental property, and (3) commercial use. If the house were to be sold to an owner who would reside in the house, it would either need to be sold to an individual who is considered to be low or moderate income or the house would need to be moved to an area declared to have slum and blight. An individual of low or moderate income is defined as at or below 80% of the City's median income for the number of people in'the household. The Monroe Park area would meet the requirement of being an area declared to have slum and blight. If the house were to be used as rental property, the landlord does not have to be of low or moderate income but the landlord must agree to rent at least 51% of the units to low and moderate income households at affordable rents.' This restriction applies to the first tenants renting the units after rehab and all first tenants must be given a one year lease. If the property is to be used for commercial purposes, 51% of the jobs must be available to low or moderate income individuals. This can be demonstrated by showing that 510 of the • available jobs pay at a salary level at or below 80% of median for a family size of one, or that 51% of the jobs will not require skills which are not easily attained by low or moderate income individuals (i.e., college education, technical training, etc.). If this option is pursued we would need to have firm commitments, in advance of the move, from the businesses who would be in the building. Also, if the house is to be used for commercial purposes, any loan for this project would need to be handled by the Business Development Corporation of South Bend, Mishawaka, St. Joseph County, Indiana (BDC) as the City cannot make direct loans for business purposes. In order to help you sort through this project I have enclosed some information that may be of assistance. First, a map of the Monroe Park residential area showing vacant lots. If you want to move the house to that area I would recommend placing the house on lot 4-13 since it is currently owned by the Board of Public Works and the adjacent lot, 4-12, is owned by the Department of Redevelopment. Second, I have included the current definitions of low and moderate income individuals by family size. Third, a copy of the "Guide for Determining Benefit" is enclosed. In conclusion I believe it is now time for you to answer the following questions: - How is the house to be used after it is moved? - Is the house to be moved into a slum and blight area?