FARRELL

Wednesday marks an important day for Steel City Terrace housing redevelopment in Farrell.

It's the closing date for the Mercer County Housing Authority and a formal settlement for redevelopment plans at Steel City.

At a special board meeting Thursday, authority board members discussed the final agreements with lawyers and authorized L. DeWitt Boosel, MCHA executive director, to sign formal documents in Pittsburgh.

The final agreement between MCHA, the Pittsburgh-based developer and the federal department of Housing and Urban Development is required before construction can begin at Steel City Terrace.

The 38 agreements -- collectively called the developer agreement -- were submitted to HUD for review. The closing will settle all elements and budget of the project with HUD, the authorities and developers Falbo/PennRose Joint Partnership, Pittsburgh.

Boosel said even though the housing authority has one Hope IV grant, the Steel City project will likely be completed in five phases, each requiring a close-out process.

A total of $2,313,588 of the $9,012,288 received from the Hope IV grant will go toward the first phase in the form of a construction loan. In addition to the grant, MCHA will provide a $1.6 million Capital Fund loan. The remaining $6.7 million will go toward community supportive services and all additional phases.

In addition to the Hope VI Construction Loan, the first phase will also require construction loans from National City Bank, which is loaning the authority $4.6 million, Boosel said.

Falbo/PennRose, the authority and developer, plans to build 74 public housing units -- renting 45 apartments near the market rate and selling 26 homes.

Boosel said once the units are built and ready to rent, National City Bank will buy the low income tax credits that the project was awarded for $4.8 million, which will pay off the original $4.6 million bank loan.