HomeMy WebLinkAbout1979-05-09city council minutesBook 20
SPECIAL MEETING
May 9, 1.979
7:30 p. m.
The Meeting was called to order by Mayor Pasley.
Page 170
Those present: McCluskcy and Hopper. Absent: Olesen, Williams,
Raymond., and Bauman.
(PUBLIC HEARING REGARDING THE HOUSING AND URBAN DEVI- LOPMENT GRANT)
The Mayor declared the Meeting open for a Public Hearing regarding
the Housing and Urban. Development Grant.
The Mayor further explained that the Preliminary for this Grant
has been approved and the City has received a request to submit
a permanent Grant in the amount of $402,080 for this year and
the City was assured, but not guaranteed, $500,000 for the second
year, and `500,000 for the third year. These Grants were broken
down into :four categories; Administrative, Housing Rehabilitation,
Sewer Construction, and Street Construction. The third. year the
Sewer Construction would. have been completed and there was $15,000
proposed for the expansion of the Senior Citizen's Center. The
Grant Application deadline was June 4, 1979, and funding made by
the middle of August of this year. The City Engineering Department
will handle the specifications and preliminary work involved in the
Sewer and Street Construction. They have prioritized the streets
to be done in each year and have given Donna Rose, the City's
head accountant, the costs for each block. These costs were the
basis for the budgeted amounts. They,, also.putting together
an Environmental Impact Statement to be submitted with the formal
Grant Application. The Administrative figure was a very abstract
and was likely much less will be used than the projected amount.
If this was the case, hopefully the excess money can be funneled
into another area of the Grant. This would require the Housing
and Urban Development approval. When the Grant was originally
written, the Administ-rative expense for Housing and Rehabilitation
was Figured in this amount. Since the Idaho Housing Agency will
be handling that program, Administrative expenses will not be as
high as anticipated. The money for Senior Citizen expansion was
a matching fund type of funding. This will be put together with
what the Senior Citizens have raised. for their building fund and
the combined total will enable them to expand their Center. The
Grant must be completed by May 29th. There will be copies on file
in Donna Rose's Office for anyone who cares to come in and read it.
The Major part of the work has been. done and until the City finds
out whether they will. be funded, nothing further can be done. Two
Public Hearings were required; one was held on Monday the 7th of
May, 1979, and this was the second. Public Hearing. The breakdown
was as follows:
Year I
Administrative
$ 1.5,000
Housing Rehabilitation
125,000
Sewer Construction
98,000
Street Construction
164,080
$ 402,080
Year II
Administrative
20,000
Housing Rehabilitation
230,000
Sewer Construction
98,000
Street Construction
152,000
$ 500,000
Year III
Administrative 20,000
Housing Rehabilitation. 230,000
Street Construction 235,000
Senior Citizen Expansion 15,000
�$ 500,000
Total Grant Requested $ 1,402,080
Book 20
Page 171
The Mayor then requested that Donna Rose come forward and explain
to the audience the map that was prepared explaining the survey
that was taken and what work was to be done in the different areas.
The Mayor then commented that this was a very good blend of
private industry and Government subsidy. By handling the loans
through the Idaho Housing Authority, all applications will be
handled locally. The City knows at this time that all four banks
will participate in the program. The banks make the loans after
proper investigation and there was certain guidelines established.
If the interest rate was 9 1/20, the banks keeps the loan, but if
the family was unable to pay that interest, then the loan would be
sold to the Idaho Housing Authority and there was a subsidized
interest rate. Subsidized loans will be written at rates of
one percent, three percent, or six percent depending upon the
borrower's income and the number of people in the household. The
maximum loan amounts are $15,000 for property with one dwelling
unit or $5,000 per dwelling unit for properties with two to six
dwelling units on it. Loans in excess of $3,500 will be secured
by a first or second deed of trust. The Mayor further said that ther(
would be no prepayment penalties and the annual rate of interest to
be charged on the regular loans would be 9.250.
Councilman McCluskey asked that in the event of a forfeit and
foreclosure, who would take over the property. The Mayor answered
that the Idaho Housing Agency would take it over and he would
presume that they would then sell the property.
The Mayor stated that the minimum monthly payment would be $10.00.
One member of the audience asked what area of town this Grant was
being considered for.
The Mayor told him that it would be on the North side of town.
The whole town was surveyed and this area was determined to have the
greatest area of need and indicated the majority of people that
were interested in the Housing Rehabilitation loans.
The audience also inquired as to whether any of these funds would
be available for use in Recreation Projects. The Mayor said that
it was not. The monies were to be used for Housing Rehabilitation,
and Sewer and Street Construction.
Since there was no more comments from the audience or the City
Council, the Mayor declared the Public Hearing closed at 8:00 p.m.
APPROVED AS written THIS 15th DAY OF May_ 1979.
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Aj - M ayor .�
Councilman
ouncilman f; uounciiman
ATTEST:
City Cler