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To: Redevelopment Commission
From: Staff - Debrah Jennings, Property Manager
Subject: Mary Ann Roberts, 316 S. Scholum St.
Date: February 8, 2011
In 2004, the Redevelopment Commission approved a South Bend Home Improvement (SBHIP) loan
for Ms. Mary Ann Roberts for her home at 316 S. Scholum St. The terms state the loan becomes due
and payable in full if the property is sold.
Ms. Roberts is an elderly woman currently residing in a nursing home. Real Services, Inc. has
become her legal guardian. Since Ms. Roberts no longer resides in the property, Real Services is
trying to sell the property. The property only appraised at $2,000.00 but is selling for $6,500.00.
The SBHIP loan balance is $5,169.00. As currently structured, after pay-off of the SBHIP loan and
all other closing cost Ms Roberts will owe $1,624.50 to the buyer. Ms. Roberts is very low income
and is not able to pay the $1,624.50. Therefore, Real Services is requesting $1,624.50 of the SBHIP
be forgiven for this unusual circumstance.
Because of Ms. Roberts's age and the value of the home, staff is requesting approval to reduce the
SBHIP pay-off balance by $1,624.50. The remaining loan balance of $3,544.50 will be paid to the
City at the sale of the property. These funds are CDBG program income. Ms. Roberts's out-of-
pocket expense and gain will be zero.
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