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University Daily Kansan, July 8, 1982
Houses renovated
Limits may hurt loan program
By DIANE LUBER Staff Reporter
The income limits for the Community Development Block Grant Housing Rehabilitation Loan Program might be so low that applicants who quality could be unable to afford to pay back the program administrators said yesterday.
The block grant program has been only moderately successful, said Richard Holzmeister, Lawrence branch manager of the Federal Savings and Loan Association.
Capitol Federal is administering the two-year program, which began in January. The $400,000 grant fund consists of $200,000 provided by Capitol Federal and $200,000 from Community Development
LOANS OF UP to $1,500 are available at an 8.7 percent interest rate. So far $100,000 has been allotted to low-income families.
Holzmeister suggested that the in-
come guidelines be raised after six
months to make more people eligible
to participate in the program.
But Kempton Lindquist, CD program analyst, said it was too early to tell whether block grant income limits were too low.
Reactions to the grant fund program
our income was going to stay this low," said Peggy Williams, 623 Maine St., whose husband will be graduating from college soon.
"We couldn't have planned to do it if
THE BLOCK GRANT program allowed her to have necessary foundation and plumbing work done on her home early this year.
"The income limits should be increased," Williams said.
However, Mary Bellinger, 103 Alabama St., didn't expect any difficulty in paying back the money she borrowed to have plumbing and wiring work done on
"It's a good opportunity for someone on a fixed income," she said.
Williams and Bellinger had two programs available to them as low-income residents rehabilitating their homes; the block grant program or the CD Housing Rehabilitation Deferred Loan Program.
To qualify for either, a house has to be in one of six target neighborhoods: East Lawrence, Far East Lawrence, North Lawrence, Old West Lawrence, Oread and Pinckney. The owner of the house has to conform to income guidelines, said Lynn Goodell, Director of Community Development.
Sixteen houses have been rehabilitated in the last year using deferred loan funds. The deferral loan limit is 400,000 will be available through this program.
do not have to make any payments on deferred loans as long as they occupy the property.
Some deferred loan applicants have been put on a waiting list until more money is available. The $200,000 budgeted to this annual program last August was completely allocated by this March, Lindquist said.
No interest is charged, and borrowers
May Monroe Hampton, 1320 New York St, waited a year before her house was rewired and painted and her bedroom and two cells were replaced.
"they did a wonderful job," she said. HAMPTON KNEW others in East Lawrence who had been helped by the deferred loan program.
"Now elderly people can stay in their own homes." Hampton said.
Fred Lubin's house at 60 Lyon St. has new wiring, new plumbing, new siding and a new roof thanks to the deferred loan program.
THE PROGRAM gives contractors with small businesses a chance to work and earn some money, Lubin said. He added that he thought it had improved the lives of the people and improved the living situation of the people who received the loans.
Hampton said, "Our houses were so run down we couldn't have stayed in them."
Jay Monroe Hampton. 1320 New York St., stands on the front porch of her renovated home.
"When they help us a little, it helps a whole lot."
Photo by SUSAN PAGE
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NAISMITH HALL would like to remind you that IT'S TIME TO GET READY FOR FALL!
Begin your fall semester by enjoying Naismith's full-sized swimming pool and fully air-conditioned indoor facilities. Plus, Naismith offers you year-round maid service, dining plans and a full schedule of social activities.
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319 Nichols Hall
864-3116
Student Assistance Center
121 Strong Hall
864-4064
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