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Wednesday, Aug. 19, 1987/University Daily Kansan
Low-income districts receive federal rental program funds
By BRAD ADDINGTON
BY BRAD ADDINGTON Special to the Kansan
Two years ago, Joyce East, Lawrence resident, paid a $200-monthly rent for a two-bedroom house, moved to an apartment while the house was being renovated, then moved back into the house and paid only $57 a month.
She was able to do this under the City of Lawrence Rental Property Rehabilitation Program.
The program, which began in Lawrence in September 1984, provides federally funded rehabilitation for rental units in low-income disc
As of July 14, the Lawrence program had provided rehabilitation funds for 42 units - 13 in the first year, 15 in the second year, and 14 this year.
Kurt Schroeder, program analyst with the Lawrence Department of Community Development, said 24 units went from being vacant and uninhabitable to "what we think are pretty decent units."
East's house on E. 12th Street was inhabitable before it was renovated by David Hemphill the property's owner. A new provision provided many improvements.
"You used to have to go through the bathroom or a bedroom to get to one of the bedrooms," East said.
East said that Hemphill repainted the house, added a new roof and laid a new sidewalk around the house.
East said he put in all new cabinets
and replaced the dirty walls where her kids' fingerprints were with white paneling.
East lives with two of her sons, 3-year-old Jeremy and 7-year-old Jason. She has two other sons who are in their 20s.
Although Aid to Families with Dependent Children provides most of East's income, she does 40 hours of volunteer work every week at Eastside Community Grocery, 1200 New York St.
The service, which is operated by the community development department, provides subsidies to support the continued occupancy of rehabilitated units by low- and moderate-income tenants. Thus, East began paying a lower monthly rent after the renovation.
The U.S. Department of Housing and Urban Development has provided the Lawrence program with an annual average of $75,000-80,000. This year's rehabilitation projects used money left over from the previous year, so the federal funds allotted to Lawrence last September have not been used. Next month, Lawrence will embark on its fourth year in the program with $104,000 in new funds.
This is the most the city has received in any one year, said Schroeder.
In the program, construction subsidies are limited to 50 percent of the rehabilitation costs or $5,000 per unit, whichever is less. Thus, the property owner must finance at least half the
cost of rehabilitation.
Only in a few instances did $5,000 cover half the rehabilitation costs. About $184,000 came from federal funds and about $300,000 came from property owners, Schroeder said.
The program usually provides property owners with construction subsides in the form of loans in which 10 percent of the loan is written off annually. Thus, if the owner keeps his annual欠款, then he accrues the units to the city's housing codes for 10 years, the entire loan is written off.
Whereas most rental property owners hire contractors for renovation, Hemphill does his own.
"I try to stay with the character of the building. I guess you call that architectural integrity," Hemphill said.
He is now renovating a piece of his rental property on New York Street under the program.
under the program.
Owners of rehabilitated rental units are required to notify the Lawrence Housing Authority so that eligible tenants may be informed of the vacancies. Eligible tenants include low- and moderate-income families, senior citizens and disabled people; thus KU students generally are not eliable for the program.
"In Lawrence there's less supply and a lot of demand for low-income housing," Hemphill said. "aNot everybody can afford to live in the $300 and $400 apartments that are going up."
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