SEWER WORK, HOUSING RENEWAL TO BE UNDERTAKEN WITH GRANT

Sixty houses located in the south-central area of Cape Girardeau will undergo an overhaul during the next two years through a Community Development Block Grant.

"We have received word that our request for a community block grant has been approved," said J. Ronald Fischer, city manager. "This means that we'll be able to rehabilitate housing and improve sewers in a south-central portion of the city."

Sen. John Dennis notified Fischer of the grant approval late last week.

"The approval is for $340,000 the first year and $460,000 the second year," said Dennis.

"This is good news," said Steve Williams, a code inspector for Cape Girardeau, adding that the grant request was filed in March.

The request, to the state's Community Development Block Grant program, was for $800,000 spread over two years,

"We were wanting to rehabilitate from 25 to 30 houses a year," said Williams. "This will permit us to do that, along with sewer improvements."

Williams said state guidelines permitted up to $12,000 a house for renovations, including all labor and materials.

Williams said the city's newest grant addresses low-income housing on College and Jefferson streets, between West End and Pacific.

With the city's portion of the funding added, the total project will be more than $1 million.

"The city plans to put cash funds of $15,100 and non-cash (labor and materials) of $67,000 in the first-year program," said Williams. "That places the first year overall total at $422,100."

The city will provide a total of $197,300 funding $161,000 cash and $36,300 non-cash during the second year of the project, according to Williams.

Williams explained that two sewer problems exist in the area.

"The Park Avenue sewer line has been a problem for a long time," said Williams. "We're looking at putting a new sewer line in that area."

Williams said the grant also would allow the city to begin work to separate south-side combination sanitary and storm sewers. The combination sewers are subject to flooding and the city is studying ways to correct the problem.

The grant is part of the city's plan to address substandard housing in Cape Girardeau.

Williams said the housing rehabilitation plan included more than 40 owner-occupied homes and several rental units. All are eligible for grant help if they meet the income guidelines.

"In the case of rental property, if the tenant in a rental home meets the guidelines, but the owner of the property does not qualify, we'll still do what we call a 50-50 match," said Williams. "This program is designed to benefit the low and moderate-income aspect of the community.

"In some cases, the program has some good effects," said Williams. "Sometimes it sparks interest by non-eligible home owners to spruce up their own property."

Williams added the program had been well received in the past.

"We have a waiting list of people to receive the economic help for housing improvements," he said. Property owners in the neighborhood are helped on a first come, first served basis.

"The grant will resolve the sewer problem entirely in that particular neighborhood, and rehabilitate 87 percent of the substandard housing there," said Williams. "Of the grant, $230,000 will be used for sewer work, with $570,000 for home improvements."

The city previously received four block grants worth about $1.8 million. The money was used to rehabilitate more than 100 houses and pave 17 streets in the south part of the city and in the Red Star area.

Homeowners are required to sign a grant agreement stating that should the house be sold within four years of the rehabilitation, they would have to refund pro-rated portions of the grant, Williams said.