No. 2383 contracting the boundaries of the West Washington-Chapin Development Area

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that can be made available to individuals, businesses, groups of businesses, and to private developers considering rehabilitation of existing buildings as new development in the commercial target areas, and in the industrial area. Community Development The City of South Bend receives an annual entitlement of Community Development Block Grant (CDBG) funds through the U.S. Department of Housing and Urban Development (HUD). CDBG funds can be used for a wide range of projects and activities designed to benefit low and moderate-income families or aid in the prevention or elimination of blight. In South Bend, these funds are used to support housing rehabilitation, economic development, and public works projects in several areas of the City. In general, the annual funding limitations of the programs, together with the need to support projects on a City-wide, distributed basis, precludes the type of multi-year funding commitment required for an effective neighborhood revitalization program. The amount of CDBG funds obligated to the neighborhood since December of 1987 totals more than $300,000. A portion of this was used to leverage Section 312 Housing Rehabilitation funds totaling close to $250,000. The City's Department of Economic Development has appropriated another $]60,000 to the Near Westside Neighborhood for housing rehabilitation and other neighborhood improvement programs. These figures do not reflect the staff time involved in coordinating the various programs and projects within the neighborhood. New sources of funding as well as ways to better leverage the limited funds available are needed to further support the City's commitment to multi-year funding of the neighborhood revitalization efforts. The City is permitted to borrow against CDBG funds for specific one-time projects as part of the Section 108 loan program. In 1988 the City applied for HUD approval of a $600,000 loan to be used to fund property acquisition, relocation and demolition projects and activities within the West Washington- Chapin Development Area. The Washington Street Target Area has been selected as the first priority area for the Section 108 loan funds. Those funds not needed for the Washington Street project, if any, are proposed to be allocated for similar activities in the Chapin Street area. CDBG funding for residential rehabilitation and other improvements in the neighborhood will be dependent on future allocations from the City's funding. WWCRP, other neighborhood organizations, and residents must be prepared to document and advocate a reasonable and fair share of funding for the neighborhood on a year-to-year basis. Tax Increment Financing (TIF) In December, 1987, the City of South Bend designated the West Washington-Chapin Development Area (the Near Westside Neighborhood) as a tax allocation area. As part of a TIF program, increases in property tax revenue resulting from new private investment in the designated neighborhood can be used by the South Bend Redevelopment Commission to finance a variety of redevelopment costs related to neighborhood revitalization and other incentives to stimulate private investment in rehabilitation and new construction. The TIF financing technique for the neighborhood uses the total of all assessed values in the area as of March 1, 1987 as the base value from which increases in property tax revenue are calculated each year. Although it is not realistic to assume any significant increase in revenues over the next few years, the potential for tax increment revenue could become an important source of funds in the future if efforts to encourage and attract new private investment are successful. • 32