GRANTS: CITY SEEKS FUNDING FOR REHAB, SEWERS

CAPE GIRARDEAU -- City officials next month will seek an $800,000, two-year grant from the Missouri Department of Economic Development to rehabilitate low-income housing in south Cape Girardeau.

City Code Inspector Steve Williams said the city will apply for the funds through the state's Community Block Grant Development Program (CBGD). The program previously was used to rehabilitate four neighborhoods in northeast and southeast Cape Girardeau.

Williams said the city's newest application addresses low-income housing on College and Jefferson streets, between West End and Pacific. A public hearing on the application is scheduled for the City Council's March 10 meeting.

The area is directly north of one of the four neighborhoods previously rehabilitated, and will abut to the south with a new Mississippi River bridge route.

Assistant City Manager Al Stoverink said Tuesday that the grant would fund two types of activities, housing rehabilitation and sewer repairs and construction.

The area is eligible for the sewer improvement funds because a majority of the residents meet the low-income guidelines established by the state.

"Basically, there are two sewer problems in that area," Stoverink said. "The first one is the Park Avenue sewer line that's been a problem for years. If funded, we would construct a new sewer line for that area."

Stoverink said the CBGD application is part of the city's plan to address substandard low-income housing in Cape Girardeau. The city also is drafting a minimum property maintenance code that will be used to mandate housing improvements.

"This is the one way that we feel we can have the most direct impact in a particular area for the funding available," Stoverink said. "It's not a great big area, but hopefully this is the fifth one we've applied for it will continue to grow to other areas.

"You've got a minimum maintenance standard and have this grant program in place to provide funds for those residents who can't afford to bring their house up to the minimum code."

Stoverink said the grant also would allow the city to begin work to separate south-side combination sanitary and storm sewers. The combination sewers are subject to flooding, and the city is studying ways to correct the problem.

"We're really only dealing with about 10 percent of the whole watershed problem (with the grant application)," he said.

"But it's a place to start, and any time we can get some financial assistance to deal with this type of major sewer project, it's welcome."

Williams said the housing rehabilitation program includes 48 owner-occupied homes and 18 rental units in the neighborhood that are eligible for the grant money. Each home owner can receive up to $12,000 for renovations, depending on the condition of the home.

"It's a program set up to benefit the low and moderate-income aspect of the community," Williams said.

He said the city plans to coordinate the program with the East Missouri Action Agency's weatherization program. Williams said that with the help of the agency, some houses may be able to receive more than the $12,000 grant for improvements.

But Stoverink said the state has become more and more conservative in the its grant awards during the past several years. He said many cities compete for a limited amount of available grant money.

"The state rates these applications based on the effect your project is going to have on the neighborhood, first on what the need is, and then on how well you'll meet that need," Stoverink said.

"What you get into is that you try to target a neighborhood that has a higher percentage of sub-standard housing and a high percentage of moderate-income families."

Stoverink said the College and Jefferson area is "compact enough" that, if the program is implemented, there would be visible improvements.

"You want to make sure the investment you're going to put into an area is going to have a definite impact on the area," he said. "If it's too spread out, it won't show the impact."

Williams said that the four previous projects inspired non-eligible home owners in the area of the houses being rehabilitated to follow suit and also make improvements. He said the program fosters "community pride" that has far-reaching effects.

City Planner Kent Bratton said several residents are on a "waiting list" to receive economic assistance for housing rehabilitation. "The program has been well received," he said.

If the grant is awarded, property owners in the neighborhood would be helped on a "first come, first served" basis, Williams said.

The city previously has received $300,000 to $600,000 for each of the four rehabilitation programs in two areas of the Red Star district and two areas of south Cape Girardeau. The CBGD now provides a maximum grant of $500,000 per year.

Homeowners are required to sign a grant agreement that states, should the house be sold within four years of the rehabilitation, they would have to refund the state 25 percent of the grant for every year it's returned prior to the four-year requirement, Williams said. For example, if the property is sold a year after renovations, 75 percent of the grant money used on the house must be refunded to the state.

The total two-year grant application calls for $570,000 for housing rehabilitation and $230,000 for sewer improvements. The city would match the grant for the sewer work with $270,000 from the city's sewer fund. Also, $60,000 would be provided by the city for administrative costs.

"With $800,000 on a two-year program, I'm hoping they will see fit to fund the whole thing," said Stoverink. "The need is certainly there. I think we've got a very substantial case to present to the state Department of Economic Development.

"I think the application, if fully funded, will resolve the sewer problem entirely in that particular neighborhood, and rehabilitate 87 percent of the substandard housing there."