SLDC said it hopes to have a developer identified by February, when staff plan to present a more detailed outline of the program to the board for approval. SLDC will maintain surveillance while the money is loaned to sub-developers.
“It will be a very transparent process,” said Richardson.
Bill Seddon, who manages SLDC’s new business tax credit program, said it was the first time SLDC has used its regular allocation of federal credits for housing development.
Some of the mortgages and developer loans could be written off to help entrepreneurs and homeowners build wealth, but ultimately the plan is to make the program a revolving loan deal that ultimately lends far more money. $ 15 million – by developing and guaranteeing hundreds of homes and mortgages.
“The goal is really to keep this in perpetuity,” Seddon said.
The new program got off to an uncertain start over the summer, when alderman leaders and Mayor Tishaura O. Jones clashed over how this first round of federal stimulus funding had been appropriate. An opinion from the interim city attorney questioned whether the $ 20 million for a city-wide housing development fund would violate federal rules prohibiting the use of ARPA money for “economic development.” general”.