9/11/1985 (2) - Laserfiche WebLink

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have until May, 1986, to tell the State District Office that we intend to utilize that money so they can notify Washington that it is going to be used. Once we issue the Letter of Intent, we will have the authorization to do the research and engineering necessary to prove the project out and to meet with the people of Gifford to explain the project. Without the Letter of Intent, nothing we do is subject to reimbursement through the loan proceeds. Commissioner Scurlock asked if we still had the ability to say "no", and Director Pinto stated we are not committed to the loan until we sign the loan agreement, and at any point before the actual construction begins, we can say it is a "no go" project. Director Pinto reported that FmHA has advised that they have in existence the Section 504 housing loan program that is an accommodation loan grant program for improvement to individual properties within an approved area. If the Gifford area is approved, and he felt confident it would be, it would make the cost borne by the individual owner to do the private plumbing necessary to connect to a sewage system eligible for this program. The construction of the project will take a minimum of two years and will include the sewering of the entire community and the paving of some streets. He felt the project is overdue and, if we do it, we will be taking a 20 -year leap in improving conditions in the area. Administrator Wright asked for clarification of the rate of the loan, and Director Pinto explained that the rate will be that which prevailed when the commitment was made; the actual commitment was made in 1973 when the rate was at 50. Commissioner Wodtke asked if there was any chance for grant money in addition to the loan money, and Director Pinto advised that they were quite frank in saying that we could consider the low interest rate a grant because we would not see rates that low ever again. 80 SEP I 1985 `4� BOOK ��,.� FAGE �.�