GIRARD Construction starts on house under CHIP

The new house will be completed the first of the year, the mayor says.
GIRARD -- Construction has begun on a house on Dearborn Street, as part of a city pilot project to improve the housing stock.
Mayor James J. Melfi said Wednesday this is the city's first construction under the Community Housing Improvement Program, or CHIP.
The city received $550,000 in 2001 from the U.S. Department of Housing and Urban Development to improve housing.
Melfi said $25,000 was set aside for this project, along with a $55,000 loan from Second National Bank.
A drawing will be held for those who are pre-approved for the bank loan. Deadline for filing applications is June 15.
Melfi said the house should be completed by the first of the year.
"This is not a giveaway," the mayor said, noting the mortgage will be paid off. The city will get its money back so another house can be built.
Melfi said the other $525,000 in the CHIP grant has been spent during the past 26 months.
The bulk of it, or $215,000, went to help rehabilitate single-family, owner-occupied homes.
Money was also allocated to assistant homeowners who faced health or safety issues in their homes, for down payments to buy houses and to upgrade rental properties.
Melfi said the city has applied to HUD for another $550,000.