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Milwaukee's community renewal program: urban renewal techniques
(May 1964)

III. Conservation,   pp. 7-21

Page 10

Another reason why the treatment must have a lasting effect is that FHA mortgage insurance under Sec-
tion 220 of the Housing Act provides for refinancing present mortgages plus the cost of improvements. This will
be discussed later, but the important thing is that rehabilitated properties must have a remaining useful life of
30 or even 40 years.
The process of eliminating blight is a continuing one. It is doubtful that the city of Milwaukee alone
can bear the entire costs of a comprehensive conservation program over an extended period of time. The best
way for this city to finance such a program is with help from the federal government. Because major conserva-
tion programs will play a large role in Milwaukee's urban renewal picture, consider what is involved and re-
quired for federal assistance.
Under a loan and grant contract, the federal government pays two-thirds of the net project cost. The
city pays the remainder, but its entire share does not have to be paid in cash. If 10 per cent or more of the
public improvements and new facilities serve the conservation area, at least a portion of the costs of these
items may be counted as part of the city's share.
To secure federal participation in a conservation program, the city must go through much of the same
procedure necessary for clearance projects. Here, in very brief form, is what must be done:
1. A tentative conservation area is chosen. The selection of areas will be based upon the Com-
munity Renewal Program.
2. With approval of the Common Council and the Redevelopment Authority, a survey and plan-
ning application is submitted to the Housing and Home Finance Agency (HHFA). With the
application there must be preliminary evidence that:
a. All properties to remain in the conservation area can be upgraded to qualify for
Federal Housing Administration (FHA) Section 220 mortgage insurance. This type
of financing will be discussed later.
b. The area has residential qualities such as desirable location and physical charac-
teristics, and other evidence of vitality which assures that conservation activities
will restore the area to a long term sound condition.

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