Appropriating $50,000.00 for Project Rehabilitation Grants

Home Browse Search

CITY of SOUTH BEND PETER J. NEMETH, Mayor COMMUNITY DEVELOPMENT PROGRAM Carl Ellison Director Jon R' Hunt Deputy Director V. LaMar Wilson Assistant Director TO: FROM: August 9, 1978 M E M O R A N D U M MEMBERS OF THE COMMON COUNCIL CARL ELLISON, DIRECTOR, COMMUNITY DEVELOPMENT IN� 3: o 2 • ti wb�oo�a • 1440 County -City Building South Bend, Indiana 46601 219/284 -9335 SUBJECT: 1978 CDBG APPROPRIATION (Renew Rehabilitation Project) The Division of Community Development is presenting for your consider- ation an appropriation bill totaling $50,000.00 for a Renew, Inc. Rehabilitation project. During the past three CD program years,Renew Inc. has utilized CD Non - Profit Group Rehab Grant money to assist them in rehabing approximate- ly twenty -five homes for low- income families. The CD staff has been ex- tremely pleased with Renew's caliber of rehabilitation work and its com- pliance with CD contract terms and regulations. The CD staff therefore believes that Renew has a proven track record to warrant expending addit- ional monies to assist the agency's operational and personnel costs. Renew is a non - profit corporation chartered to provide low -cost housing to families with annual incomes ranging between $5,000 and $8,000 through a program of rehabilitation of existing homes. Renew generally purchases homes on land contract and in turn resells them to participants in the Renew program. The money Renew receives is used to rehabilitate and purchase other homes. In essence, Renew provides an excellent mechanism to enable low- income families to become homeowners who otherwise would quite probably be life time renters. Renew also requires its participants to attend a series of homeowner- ship classes lasting about six months. Renew, Inc. then looks with the family for a home that will meet its specific needs. After purchase, the home is rehabed and follow -up work and contact with the family continues. Since Renew's clients repay money on extended terms, the agency is in need of financial assistance to continue its activities.