In the midst of a housing rehabilitation program in south Cape Girardeau, city officials are preparing to embark on a similar program aimed at rental properties.

Steve Williams, Cape Girardeau housing assistance coordinator, said Tuesday that a public meeting will be held next week to introduce the East Cape Rental Rehabilitation program.

"This is a neighborhood preservation program," he said. "The rehabilitation and improvements will result in safe and sanitary housing for rental occupants, plus a better quality neighborhood environment in the target neighborhood receiving assistance."

The project area will be bounded by Hackberrry 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.

Applications from owners of rental properties in the project area will be handled on a first-come, first-served basis, Williams said.

He said priority will be given to "repair of substandard units with two or more bedrooms, occupied by lower-income tenants."

Property owners will be required to provide 50 percent of the rehabilitation costs, with the state grant funding the remaining costs.

Williams said grants will total up to $5,000 for efficiency apartments; $6,500 for one-bedroom units; $7,500 for two-bedroom units; and $8,500 for rental units of three bedrooms or more. The minimum amount for each grant is $1,000, he said.

Williams said that 80 percent of the funds must benefit lower-income tenants.

"Most of the programs you have are to benefit low-income individuals," he said. "Also, 70 percent of the funds must be used for repair of substandard units with two or more bedrooms."

The public meeting on the subject is scheduled for 7 p.m. Jan. 23 at the City Council chambers in City Hall, 401 Independence.

"This is another effort that the city is doing to benefit the low- to moderate-income families and beautify our neighborhoods," Williams said.

He said he expects the rental rehabilitation program to have a residual affect on other homes in the project area.

Williams said a housing rehabilitation program similar to the one approved last year has resulted in homeowners upgrading their property, regardless of whether they qualified for grant money.

"When they see the improvements in the neighborhood as the areas are cleaned up, they tend to do some work on their houses as well," he said. "All these are more or less positive steps in neighborhood revitalization."

Last year the city was approved for a two-year $800,000 Community Development Block Grant to renovate up to 60 homes and segregate combined sanitary and storm sewers in the south-central part of Cape Girardeau.

Williams said the first year of the program includes $285,000 in housing rehabilitation. He said renovations include new wiring, plumbing, roofing and paint, cabinet work, kitchen and bathroom renovation and other improvements.

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

Williams said two houses already have been completed through the program and seven houses are now under contract.

"All nine houses should be finished by the end of March," he said. "(Today), we'll sign contracts on four additional houses, which will put the total grant money for all 13 houses at $153,671. Then, within two weeks, we plan to bid four more houses."

Williams said the city this week also will receive construction plans for the sewer work in the project area. "We hope to have construction start on that by no later than June," he said.

The housing assistance coordinator called the housing rehabilitation program "successful" and said he hopes the rental plan is equally effective.

"It's been very successful and the homeowners have said they're very happy with it," he said. "The homeowners are the ones we try to do our best to satisfy. It's their home and this is a voluntary program."

Williams said the city tried a rental rehabilitation program in 1986 that consisted of city-subsidized loans for renovation of rental units. But he said that program "wasn't too successful."

"With this one, 50 percent of the cost is all they have to come up with and the other 50 percent is a grant," he said.

"The only stipulation after the grant's approved and the work's done is that they have to keep the unit available to low-income individuals for at least 10 years."