Greenbelt News Review

GHI Annual Meeting to Vote
On Elderly Housing Project

By AL SKOLNIK

Membership sentiment toward Greenbelt Homes, Inc. proposed housing for the elderly project will be sounded at next Wednesday's special membership meeting, starting at 8:15 p.m. at the Center School Auditorium. Drawings showing the site development plan, elevation drawings and floor plans will be displayed, followed by a question-and-answer period.

The membership will be asked to approve the proposed plans and to give the corporation the go-ahead signal for seeking Housing and Home Finance Agency approval and financing. A turnout of 75 members is needed for a quorum.

More specifically, the members will be asked to vote up or down the use of the land site (behind 32-34 Ridge) for this project and its sale to the non-profit corporation (a wholly-owned GHI subsidiary) which will probably be organized to sponsor the project. GHI will eventually receive payment for this land through a reduction on the balance of its original PHA mortgage.

It is expected that the land will cover most if not all of the 2 percent of development costs which a sponsoring organization must put up in order to get HHFA financing. Because of savings on monthly rentals, HHFA financing is considered preferable over FHA financing. The former provides 50-year loans at 3 1/2 percent interest, while the latter though guaranteeing 100 percent of the loan, requires 5 1/2 percent interest and for only 40 years.

The project is planned to operate on a self-supporting basis. The only out-of-pocket costs so far committed by GHI are an architect's fee of $500. If the project is approved, this fee plus the remaining payments to the architect can be included in the HHFA loan. Other operating services provided by GHI will be at cost so that there will be no subsidies or profits involved.