Appropriating $438,000.00 Federal Assistance Grant Various Human Resources Programs

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MEMO PETER NEMETH PAGE 2 Mr. Ellison will have the further responsibility for advising the Board of Safety of Sub- standard dwellings where the owner refuses to cooperate with the rehabilitation program. A secretary is necessary to carry out normal office and clerical functions. Two building inspectors would be assigned to inspect dwellings, and make estimates of the cost of individual rehab projects. A similar advisor would be assigned to individual families for the purpose of determining their exact financial needs, and to make recommendations as to how much money, and in what form should be made available to the families. A Bookkeeper would be assigned to record all financial transactions, and to carry out normal bookkeeping functions. The salaries for all these individuals would be for only a six month period. All the individuals will be transplanted from the Model Cities program, and any compensations, to be paid prior to July 1, 1974, will come from Model Cities funds. The salaries proposed, are the exact amounts that they are currently receiving under the Model Cities program. A fiscal officer from the Department of Administratives would be assigned to PDAT for the purpose of monitoring the program. As implicid part of the program is the development of an on -going revolving fund. Initially this fund, from which grants and loans will be made, will use only the requested revenue sharing funds. In the future the fund will be replenished by a City contribution, from either revenue sharing funds or community development funds, from loan repayments and from income derived from the sale, or lease of other homes acquired from the Federal Housing Administration. The request to acquire F.H.A. repossessed homes is central to the success of an overall neighborhood development concept. With these homes a number of things can be accomplished. 1. The first use of these homes would be as replacement homes for persons who's homes will not be rehabilitated in the South East neighborhood. By providing a replacement for a family considerable relocation costs are saved. 2. The second priority would be to derive as income from the homes, this can be accomplished by either selling the home, or leasing it ti the L.H.A. or to a non profit housing corporation. 3. The third alternative is to implement the homesteading program. Initially this will be done on a limited pilot project basis. The total amount of money requested for acquisition of these homes will be used to both acquiring the homes and rehabilitate those that need it.