HOUSING: CITY HOSTS MEETING ON ASSISTANCE

In an effort to aid more low- to moderate-income residents, the Cape Girardeau planning services department Jan. 13 will conduct a public meeting on state housing assistance programs.

Steve Williams, the city's housing assistance coordinator, said Tuesday that state officials will be on hand at the meeting to explain the various programs.

"We're going to invite local financial and lending institutions, builders and developers to the meeting, where we'll have state officials present to explain the housing assistance programs available through the Missouri Housing Development Commission," Williams said.

He said the MHDC offers financial assistance for construction, acquisition, and rehabilitation of single and multiple family housing for low and moderate income families.

"We're going to have someone from the MHDC from St. Louis and someone from Kansas City to answer questions and explain the programs," Williams added. "A lot of these programs, we just aren't familiar enough with them to explain to people what's available.

"It's also important to get the lending institutions involved so they know what the state has out there."

The meeting next week is the latest in the city's expanding efforts to help low and moderate income residents secure adequate housing.

Last year, the city started a rental property rehabilitation program, which enables property owners to receive Missouri Economic Development Commission grants to rehabilitate rental property for low- and moderate-income tenants.

The program complements an ongoing housing rehabilitation program that benefits qualified property owners.

That program uses Community Development Block Grant funds to help property owners renovate their homes.

Williams said some of the topics that will be discussed at next week's meeting include the following state programs to benefit low and moderate income residents:

Single family down payment subsidy program. Approved in 1991, this program is used to subsidize the down payment of very low-income, first-time borrowers to make them eligible to receive a single-family loan.

20Neighborhood Loan Program, which enables the Missouri Housing Development Commission to give a 2.5 percent interest rate subsidy, thereby writing down the interest cost on construction loans.

20Multifamily interest subsidy program, which also enables the commission to offer a 2.5 percent interest rate subsidy for developers of multifamily housing.

Multifamily rental program, which supports the construction and rehabilitation of rental housing through the issuance of tax-exempt bonds. The bonds finance below-market rate construction and permanent loans made to non-profit and limited dividend corporations and sponsors.

Affordable housing assistance program a state tax credit for persons with income at 50 percent or less of median income.

Single family loan program, which provides below-market rate loans to first-time home buyers in Missouri.

Special home ownership program, which is operated in conjunction with the Farmers Home Administration. The MHDC offers guarantees to FHA in return for its sale of repossessed lower-priced homes to very low income families.

20Federal low income housing tax credits to provide for the production of low-income rental units.

Unusual need loan program to make loans at 6 percent interest for unusual development proposals that provide housing and housing support facilities.

Home improvement and weatherization loan program, designed to provide below-market rate interest loans to help people make their homes more livable and more energy efficient.

Williams said the city's rental housing rehabilitation program has been successful since it was started last year. He said there still are funds available to property owners to take advantage of the program.

Grant funds will be used to finance renovation of up to 15 rental properties in a designated "East Cape Rental Rehabilitation Neighborhood." The Missouri Department of Economic Development provides up to 50 percent of the cost of the repairs.

The project area is bounded by Hackberry Street to the south, Bertling to the north and the Mississippi River to the east.

The western border of the project area will align with Minnesota Avenue from Hackberry to William Street, then east to Henderson, where it will run north to New Madrid, east to Big Bend Road and north to Bertling.

To be eligible for the grant, the rental unit tenants' income must not exceed $17,650 for a single person unit; $20,150 for a two-person family; $22,700 for a family of three; and $25,200 for a family of four. The income guidelines increase proportionately for larger families.

The "rental rehab" program requires that the upgraded properties remain available to qualified tenants for 10 years.

In the past 10 years, the city's housing rehabilitation efforts through the Community Development Block Grant program have helped renovate more than 120 homes in south Cape Girardeau and the eastern, "Red Star District."

Currently, the program is being used to upgrade up to 60 homes in the "College-Jefferson Street neighborhood." The program also is being used to segregate combined sanitary and storm sewers in the neighborhood.

Like the rental rehabilitation program, only substandard houses owned by low- to moderate-income families are eligible for the grant money.