Cape Girardeau has been given the go-ahead to begin work through a state grant aimed at renovating homes in South Cape.

In April 1997, the city was awarded a $446,300 community development block grant for the Jefferson-Shawnee Parkway Neighborhood Restoration Project to upgrade 31 or 32 homes.

But work was stalled for several months while city staff and members of the state's historic-preservation office debated how to handle potentially historic homes in the project area. The area is bounded by Shawnee Parkway (new Highway 74) on the south, Sprigg Street on the west, Jefferson on the north and Fountain on the east.

After an Oct. 7 meeting with state officials, an agreement was worked out in which the state will compile a list of properties that might be of historic significance, said Steven Williams, the city's housing assistance coordinator.

The city, in turn, will submit to the state its plans for rehabilitating those homes, and the two will work out a compromise between them.

"It's the same process as usual," Williams said.

The city is awaiting word from the state "on which properties are historic and which are not," he said.

The city has received some 28 applications from homeowners in the project area, he said. The first step will be to review those applications and determine who is eligible for assistance and what kind of work those homes need.

City staff will also need to advertise for bids on the renovation work. Williams said he hopes work on the homes can start no later than January.

"We're happy to get the program started, and we're looking forward to making a difference in the neighborhood," Williams said.

Most of the homes in the project area are old, Williams said, and many date from before the 1940s.

The block grant program is aimed at making substandard housing livable by adding such things as vinyl siding, energy efficient windows, new furnaces and roofs. But the goals of the grant program sometimes clash with historic preservation, and the city and state have to reach an agreement between protecting historic structures and repairing homes that aren't historic.

In some cases, the types of repairs funded through the block grant program may jeopardize a property's historic character.

The block grant includes $384,500 for housing rehabilitation, $56,700 for lead abatement, $5,000 for assistance in paying closing costs or a down payment for families buying homes in the project area and $600 for a housing counseling program offered through University of Missouri Extension.

In addition to the block grant itself, Williams said, the city is making $92,594 worth of infrastructure improvements, including new sidewalks, curbs and gutters, and improvements to water lines. The city is also funding approximately $44,000 worth of lead and engineering inspections for homes.

"So the total project cost is approximately $582,950," he said.

Williams will also work to match up homeowners in the project area with assistance and weatherization grants from East Missouri Action Agency and AmerenUE.

Since 1982, the city has received $3.8 million in block grants for neighborhood rehabilitation.