Few seek low interest loans in aftermath of Westgate fire

John Howell
Posted 4/16/15

Fortunately, those who were in Building C of the Westgate Condominiums on March 11 rushed out of the burning building without injury, but they aren’t beating a path to low interest federal disaster …

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Few seek low interest loans in aftermath of Westgate fire

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Fortunately, those who were in Building C of the Westgate Condominiums on March 11 rushed out of the burning building without injury, but they aren’t beating a path to low interest federal disaster loans.

Condo owners are eligible to borrow up to $200,000 at rates less than 2 percent for 30 years to rebuild and $40,000 for content losses from the Small Business Administration. The loans cover the uninsured portion of the losses.

As of Tuesday, the SBA, which is operating from an office in the Warwick Library, had met with 10 or 12 of the 38 condo owners, said field operations specialist Fred H. Wagner.

“We’ve reached out as much as we can without looking lonely or desperate,” said Wagner. He believes the condo association of the Red Cross has notified tenants and condo owners.

There has also been a lot of media coverage after the Westgate fire was designated as eligible for the program at the request of the Rhode Island Emergency Management Agency and Gov. Gina Raimondo.

In addition to individual condo owners, Wagner pointed out that the condo association could be eligible as a business for a low interest loan. He said the association is aware of the provision, but to his knowledge it had not applied for a loan as of Tuesday.

According to association secretary – and one of those who lost his unit in the fire – William Herendeen, the goal is to rebuild the complex as soon as possible. Herendeen could not be reached for an update this week.

While the SBA will close its operation at the library at 6 p.m. today, Wagner pointed out the deadline for loan applications is June 5. Applications can be made on the telephone and online.

Although many people may not know for some time how much they will receive in insurance payments, Wagner urged them to consider applying.

“They may think everything is covered [by insurance], but it isn’t,” he said.

Mac Odom, who was a tenant, said Tuesday he doubted he would apply for a loan. He was more concerned about getting on the site of the building, which has been fenced off, and looking for whatever may remain of his belongings. He said “heavy equipment” is working on the site, but so far, he hasn’t been given access to the area.

Odom is the driving force behind this Sunday’s fundraiser for the victims of the fire being held at the Villa on Cowesett Avenue in West Warwick. The event, starting at noon and running to 6 p.m., will feature five bands. Tickets are $25.

Mayor Scott Avedisian said Tuesday it is his understanding that the state fire marshal has completed a report on the cause of the fire, but it has not been released.

The fire is believed to have started on the third floor of the building in a unit where the walls had been opened up following a roof leak caused by an ice dam. A work crew was reportedly using a heater to dry out the wall, and that caused the fire.

In addition to addressing the cause of the fire, the report is also expected to look at the project’s water system that includes four hydrants. Even though a booster pump, powered by an emergency generator, was switched on, Warwick firefighters were hampered in their efforts to contain the fire by a lack of water pressure. The third floor of the wood structure was fully engulfed in flames by the time firefighters were able to tie into the water system of the adjoining Spencer Woods condos.

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