During a recent government meeting, city officials discussed significant modifications to the city's draft Section 108 loan application, aimed at facilitating the redevelopment of public housing. The proposed loan of approximately $2.39 million from the U.S. Department of Housing and Urban Development (HUD) is intended to support the Roswell Housing Authority (RHA) in its redevelopment efforts.

Originally, the RHA planned to use Myrtle Street Apartments as collateral for the loan. However, following a change in the RHA board's leadership, the board expressed concerns about tying up this property for an extended period, prompting a request for the city to provide alternative collateral. City staff recommended using the Taramont property instead, which would allow HUD to place a lien on it until the loan is fully repaid.

The council acknowledged the complexities involved in the loan process, particularly the requirement for collateral despite the city effectively loaning funds to the RHA. The city plans to repay the loan using annual Community Development Block Grant (CDBG) funds, although the council noted that these funds are not guaranteed and could be subject to future political decisions.

The meeting also touched on the broader implications of this financial arrangement, emphasizing the city's commitment to affordable housing initiatives. Council members highlighted that this loan is a significant step towards addressing public housing needs in Roswell, with hopes that successful completion of the first phase of redevelopment will pave the way for subsequent phases without additional requests for city funding.

In addition to the loan discussion, the council began preparations for a forthcoming millage rate discussion, which is expected to be finalized by mid-October. City officials are gathering data to inform the council on past millage rates and the financial stewardship exhibited over recent years, ensuring that council members are well-equipped to make informed decisions regarding future tax rates.