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Half of federal grant money will help renovate homes
The Gloucester Daily Times, Wednesday, May 5, 2005, page one
By Richard Gaines, Staff writer
The city has set aside nearly half of its $892,000 new federal community block grant money to fix homes rented or owned by those with low and moderate incomes.
The city also gave another $100,000 to Cape Ann Housing Opportunity to build community housing at the former LePage's factory site, raising the city's stake in the project to more than $600,000.
The rehabilitation assistance program was awarded $379,175.
Landlords can use the funding to improve homes rented to low and moderate income tenants. Qualified homeowners can use the grants for improvements and to offset the cost of sewer hookups.
"It's the reason why we're here," said James Duggan, grants administrator for the Community Development Department.
The city's Community Development Block Grant appropriation from the US Department of Housing and Urban Development was 5 percent lower than for the ending fiscal year.
The city's selections are not final until approved by the US's development group.
The grants are for the fiscal year, which begins July 1.
The city set aside $130,326 for use in offsetting down payment and closing costs for qualified first-time home buyers.
Other recipients include:
- Action Inc. got $61,500 to improve the kitchen in the homeless shelter and complete its effort to create more space in its Main Street building used for youth job training and education;
- The city of Gloucester got $50,000 for handicapped accessible street improvements;
- Pathways for Children got $35,000 for rehabbing its facilities;
- The Rotary Club got $20,000 to continue its reconstruction of the Stage Fort Park playground to make it fully accessible to the handicapped;
- The Clean City Commission got $20,000 for a summer youth employment program aimed at keeping the business district clean;
- The Recreation Department got $20,000 for camp scholarships and administrative costs;
- The Open Door Food Pantry got $15,000 for the purchase of food, food-stamp application assistance and job training;
- Fishtown Artspace got $19,000 for a youth art program;
- Cape Ann Interfaith Council got $5,000 in rental assistance;
- The YMCA got $2,055 for creating swimming-pool access for the handicapped.
- The Council on Aging got $1,050 for paper mache art program.
CDBG funds must be used by nonprofit agencies to provide housing and support services to families with low and moderate incomes. The US's development group requires that at least 65 percent of the funds are used to provide bricks and mortar projects. No more than 15 percent can be used for public service projects, and a maximum of 20 percent can be used for program administration.
The city has granted its program administration $192,400, which equates to the maximum amount allowed.
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