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S � () City Council Meeting March 10, 1997 the City of Paris to obtain a low interest loan of $40,000.00 to rehab these units for low and very low income tenants. This is the same type of loan they obtained before for a house on 4' S. W. which has been completed and the loan was paid off according to schedule. Mr. Korth reported that in the past 30 months they have completed the refurbishing of 30 of the apartments, paved the parking lot, and closed off all vacant apartments. There are now 21 units occupied. The rents are $185.00 for a one - bedroom apartment, $235.00 for a two- bedroom apartment, and $300.00 for a four - bedroom apartment. Mr. Korth said it was their understanding that the City would accept a second mortgage on the property for the loan so they obtained a $60,000.00 loan from First Federal Loan which enabled them to complete the improvements that they had made. In April of 1996 they were preparing to receive an interim loan of $20,000.00, and at that time they were told by Bob Jones that the City wanted additional security because the City would have a second mortgage to the one held by First Federal. In response to this they submitted a list of all real estate owned by each individually and jointly, and at this time, there has been no response from the City. Mr. Korth said they came to this meeting to request the City Council to honor the commitment to lend them $40,000.000 without any further need for additional security as the complex was appraised at $205,000.00 prior to getting the loan from First Federal. The loan would amount to less than three times the yearly rent now being collected whereas most lenders will lend up to nine times yearly rent Mr. Bob Jones with RIM Interprises, who handles this rental rehabilitation for the City of Paris since 1980, came forward to speak regarding this matter. Mr. Jones said he has applied for and has been approved for more than $430,000.00 of money for this particular activity in three different grants. Mr. Jones said he has made fifty loans of which forty -nine are currently performing, so we have a very good record on rental rehab, and his current position is to continuing that quality of loan servicing. Mr. Jones said he did take an application from Mr. Hullinger on August 1, this is data that they generated and he accepted - from an $80,000.00 rehabilitation estimate, $40,000.00 would be from the City and $40,000.00 would be personally invested. They also stipulated that there was no lien on the property, and there would not be alien on the property. Mr. Jones said that they went into a contract based on the City having first lien on the property with $40,000.00 of rental rehab money put in it, this was August 1 of 1994. The partnership came in following submitting invoices for and interim draw in March of 1996, at that time Mr. Jones prepared the contract based upon his application, and he put a few restrictions which indicates that the City would have a first lien position in the document. Mr. Jones said that when that document was sent to their attorney, and only when it was sent