GOSHEN — The Goshen Board of Works and Public Safety approved a request at its meeting Monday to reduce the interest rate on a portion of an $800,000 loan to LaCasa, Inc.

The city provided the loan to LaCasa in April 2010 to help with the organization’s Neighborhood Stabilization Program, which provided grant money for LaCasa to purchase and rehabilitate vacant homes and sell them to owner-occupants at a reduced cost.

LaCasa was to pay the loan amount with one percent interest back to the city by Wednesday, Nov. 30. Any unpaid funds by that date would accumulate interest at four percent.

LaCasa President Larry Gautsche explained in a letter to Mayor Allan Kauffman and the Board of Works that LaCasa is able to pay back $600,000 plus $8,000 interest by Nov. 30. Because LaCasa is slightly behind on its claim schedule, though, Gautsche requested that they be allowed to pay the other $200,000 by Jan. 30, 2012, and that the board extend the one percent interest rate through that time.

The letter also stated that LaCasa had sold five houses with three more ready for sale and has cleared other unsafe structures through the program.

Kauffman said he favored the changes because of the impact he said he sees in the program.

“There’s no question in my mind that this $800,000 loan has done a lot of good in the neighborhoods,” he said.

The board also

• approved the addition of a ramp and awning in the right-of-way outside the Spohn Building, 109 E. Clinton St.

• approved an agreement amendment with DLZ, Inc. to complete an additional survey and design work for the Monroe St. bike and pedestrian path.

• approved an agreement amendment to offer more time to DLZ Indiana, LLC to complete an inspection on the Maple City Greenway Phase V project.

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