08-25-75 Council Meeting Minutes

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REGULAR MEETING AUGUST 25 75 REGULAR MEETING - RECONVENED (CONTINUED) RESOLUTION NO. 494 -75 (CONTINUED) WHEREAS, the City of South Bend, Indiana, through its Department of Human Resources and Economic Development, is submitting formal application to HUD for participation in said demonstration program; and further that the Common Council for the City of South Bend, Indiana, is the local governing body for said city; and WHEREAS, the Bureau of Housing was established by the Mayor of the City of South Bend on January 28, 1974, and is currently empowered to undertake certain housing related activities as specified in Ordinance No. 5689 -74, Section V, of the South Bend Common Council, passed June 24, 1975; NOW, THEREFORE, BE IT RESOLVED that the Common Council of the City of South Bend, Indiana: SECTION I. Hereby authorizes the Bureau of Housing to be the public agency responsible for administering, after HUD approval, an Urban Homesteading Demonstration Program in the City of South Bend, Indiana, pursuant to Section 810 of the Housing and Community Development Act of 1974. SECTION II. This resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. s/ Roger 0. Parent Member of the Common Council A public hearing was held at this time on the resolution. Mr. William Hojnacki, Director of the Department of Human Resources and Economic Development, made the presentation for the resolution. He indicated that the resolution approved an application for a homesteading grant which was part of a nation -wide program whereby HUD would be making available $5 million for housing. In the City of South Bend, there were approximately 50 units that could qualify for the program, although it was thought that only 10 would be funded. He stated that the entire scope of the program was that these units would be made available to the city and the city would develop a workable program of utilizing the homes. The application demanded that the program be a neighborhood preservation program and be concentrated in certain areas, and that the homes not be in "hard -core deteriorated neighborhoods ". He indicated that the application was being prepared.and the Bureau of Housing would administer the program if approved. He stated that the program would be built into the other programs undertaken by the city concerning housing. Councilman Kopczynski wondered if the programs of the Human Resources and Economic Development Department were concentrating certain people in certain areas. He felt ghettos were being created by this. Mr. Hojnacki stated that the policy of the city was "open housing ". The sense of the programs developed have been to deal with the problems where they exist. The idea of relocation had been rejected and public housing units were no longer being built. He felt that different programs would have to be designed because every neighborhood was different. He stated that one of the criteria for homesteading was that the person moving into the home exhibit a strong financial ability to maintain and rehabilitate the home. Councilman Kopczynski felt a concentra- tion of these programs for low - income persons was being made. He wondered about the practical application of this program. Councilman Serge talked about the area in Riverside Manor and the start of deterioration of the homes there. It was indicated that there were eight homes in that area that could be utilized in the program. Mr. Hojnacki indicated that the procedure for the program would be to have a person sign a contract to maintain the home for three years. If, after that time, there were no violations of the contract, the home would be turned over to the resident He felt expensive homes would not be utilized for the project. Councilman Szymkowiak talked about the problems encountered with projects dealing with housing. He felt too many families were moving into one home and this was a start of the housing problem. Councilman Newburn felt there was an undercurrent in many areas because they were being labled ghettos. He felt the attitudes would have to be changed and the Council should demonstrate its concern to the neighborhoods. Councilman Taylor indicated that the homesteading projects have worked successfully in many areas. He stated that homesteading was not a massive program and would only affect a few homes. He.felt the program would have more to do with helping the neighborhoods than any other housing program. Councilman Miller indicated that this was another step in the city's commitment to improve the housing within the city. He supported the program, and he wanted to see how the program would work on a limited basis before the federal government came back and started the program on a massive level. Councilman Kopczynski felt there were contradictions within the program. He felt there was not enough known about the program to warrant a vote for the program. Councilman Horvatl wondered what type of homes would be utilized, and Mr. Hojnacki indicated that the homes would be housing units under the control of the secretary which meant that HUD owned the unit. Some units would be very small while some others would be larger. He did not think that HUD would designate units with a substantial value. Many of the units would be worth much more if they were rehabili- tated. Councilman Nemeth indicated that perhaps some of the younger married persons in the community could take advantage of this program. Mr. Marchmont Kovas, South Bend Tribune Reporter, wondered if there was already a homesteading program approved by the Council. Mr. Hojnacki indicated that there was approval given by the Council for the Bulk Sales Program and there was a question of disposition of the property; however, this had been remedied in the last legislature. He indicated that there was no guarantee the city would even get the program at this time. Councilman Kopczynski wondered where the greatest concentration of abandoned homes was in the city Mr. Hojnacki felt the most concentrated area was Riverside Manor. He stated that the area being considered included 26 housing units which would be applied: for. In Census Tract 23 (Benjamin Harrison School Area), there were 6; in Census Tract 24, there were 3; in Census Tract 25, there was 1; in Census Tract 28 and 34, there were 5; and in Census Tract 30 (south of the target area of the southeast neighborhood), there were 6. Councilman Kopczynski wondered about the minority population in the census tracts named. Council President Parent asked for a point of order. He felt the issue before the Council was whether or not the Council wanted to approve the program. Councilman Kopczynski felt his questions pertained to the issue. Council President Parent felt it was very improper for the Council to get into these kinds of questioning. Councilman Kopczynski indicated that he only wanted to know the facts in the case. Council President Parent asked that a motion be made on whether or not Councilman Kopczynski should be allowed to continue his line of questioning. Councilman Newburn made a motion to adopt the resolution, seconded by Councilman