PERRYVILLE GETS HOUSING LOAN

PERRYVILLE -- Perryville's construction figures will soon increase, thanks to a low-interest loan from the Missouri Housing and Development Commission.

The commission approved funding for a 20-acre site at Smith Street and Breeze Drive. About 50 homes will be built and are expected to range in price from $60,000 to $75,000.

Only three cities, including Perryville, were chosen to participate in the program, said Mellodie Wilson, community relations officer for the commission. Six applications, which totalled $1.75 million, were submitted. Loans in the amount of $1.2 million were awarded.

The loan applications were judged on the basis of site desirability, economic growth and feasibility costs. The cities that applied showed a demand for the housing and an appropriate building site, Wilson said.

In recent years, more jobs have been created in Perryville than houses built.

Midwest Research Institute of Kansas City conducted a study to determine why population hasn't grown but jobs in the area have. The conclusion was that the city lacked affordable housing.

With the help of a three-year $450,000 loan from the commission and the Perryville Development Corp., the city will develop the lots to sell for less than $10,000.

The affordable housing program is a demonstration program, Wilson said.

"It's not a project to undertake lightly," she said, adding that in most cities the housing units are part of a phased development project.

The commission is a state housing finance agency that was established in 1969. It assists in creating affordable housing for low- and moderate-income families.