Olean Local Development Corp. considering rehabilitation loans for homeowners | New
OLEAN – Authorities hope to turn a loan for a hotel into helping homeowners repair their properties.
The Olean Local Development Corp., a non-profit organization created by the city government in 2005, discussed plans for a housing rehabilitation loan program at a special meeting Tuesday morning.
The plan, which is still in its infancy, would likely function as a revolving credit fund, said Keri Kerper, coordinator of the city’s community development department. The owners are said to apply for help with the project, with OLDC providing funds for part of the project in the form of a low-interest loan.
The details of the work that would be covered are still undecided.
While some members said work could extend to porches or even pool decks – cited as a safety concern – Mayor Bill Aiello, who sits on the OLDC board of directors, said that ‘he was concerned about such projects, preferring that the loans be spent on more serious problems. .
Details will continue to be worked out and the next board meeting is scheduled for March. Kerper said a special meeting could be called if the project could move forward more quickly.
The board typically meets four times a year, but the December meeting was moved forward by one month to comply with federal and state tax and audit rules.
However, funding for the program is already in place.
The non-profit organization operates as a sub-recipient of the city as part of a $ 416,000 community development block grant that helped furnish the Hampton Inn & Suites in North Olean.
The repayment of this grant by the developers – set up in the form of an interest-free loan for the first 10 years in the amount of $ 200,000, while the second half can be canceled if the project meets the objectives of hiring and remaining operational – is payable to the OLDC, which keeps the funds for its operations.
“Refunds have started, the hotel is open,” Kerper said, with more than $ 11,000 already received.
The OLDC is expected to receive just over $ 3,500 per month from the repayment plan until 2031.
This cash flow – noted as a positive step in an annual audit report discussed at the meeting – is a far cry from the fiscally precarious position the nonprofit found itself in just a few years ago. .
While the OLDC was originally created to help with the modernization of Bradner Stadium, the group has experienced a serious lack of funding in recent years. At one point in 2019, the nonprofit had only $ 57 under its belt and needed $ 4,000 in aid from the income of the remaining grant funds from the city coffers to cover its contract. $ 1,000 for commissioned audits.