ACTION REQUESTED:
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Communication from the City Manager and Director of Community Development with a Request to APPROVE $400,000.00 in HUD HOME FUNDS to HABITAT FOR HUMANITY GREATER PEORIA AREA for the Construction of Four (4) New, Affordable, Single-Family, Owner-Occupied Homes Located in the 1000 and 1100 Blocks of NORTHEAST MADISON and MONROE. (Council District 1)
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BACKGROUND: On an annual basis, the City of Peoria receives HOME funds from the US Department of Housing & Urban Development (HUD). Fifteen percent (15%) of the total annual HOME allocation must be set aside for Community Housing Development Organization (CHDO) activities. As a part of the 2017 Budget, City Council approved the allocation of $400,000 as CHDO set-aside funds for the 2017 program (funding) year. This allocation exceeds the required 15% set aside amount of the total HOME funds for CHDO activities.
Per HOME regulations, CHDOs are private, nonprofit, community-based, service organizations that have paid staff with the capacity to develop affordable housing for the community they serve. To maintain status as a CHDO, an organization must recertify annually to ensure they continue to meet HUD’s requirements for CHDO status.
Three organizations applied and were certified as CHDOs for the 2017 year. In November of 2017 (the month that the City received its HOME allocation from HUD), Staff requested proposals from these three organizations (Issues Update 11/30/17) with a due date of January 19, 2018. Staff received two proposals. In order to evaluate these proposals, Staff assembled a committee of City staff and volunteers with subject matter expertise in housing, infrastructure, lending and community investment. The committee ranked the projects along twelve criteria (strength of overall concept; strength of development team, experience of developer, fiscal strength of developer, budget and appropriateness of costs, demonstrated neighborhood need, local support, appropriate design and character, energy efficiency/green building/storm water mitigation, market feasibility, readiness to proceed, sustained impact) which corresponded to prompts in the proposal application.
The project with the highest ranking from the committee was submitted by Habitat for Humanity. The proposal is to develop four new owner-occupied, single-family homes on the 1000 and 1100 blocks of NE Madison and Monroe. The proposal scored well along all criteria and has done substantial community outreach in the form of family events in a neighborhood park, outreach to organizations and neighbors and one veteran rehab for an existing neighborhood resident. This project would continue Habitat’s development efforts in the area adding to the eight homes currently completed or underway.
Habitat has worked to adapt the design of their homes to fit with the character of the neighborhood. Federally-funded development projects are subject to a review process under the National Historic Preservation Act. Adjacent, HOME-funded, Habitat builds have been through this process. Last year’s builds were reviewed and commented on by the local Historic Preservation Commission, the Illinois Historic Preservation Agency and the national Advisory Council on Historic Preservation. Habitat made minor adaptations to designs based on comments from the local commission (exposing the foundation between first floor and grade; changing a 1.5 story build to a 2-story build due to adjacent 2-story structures). Both the state and national reviewing bodies issued decisions that the project had no adverse effect on the historic character of surrounding property (the most favorable grade a project can receive out of several possible outcomes in this review process).
Upon City Council approval of the funding, staff will initiate this historic review process for the new builds. Habitat has already begun to reach out to Central Illinois Landmarks Foundation and the Peoria Historical Society to garner these organizations’ input and collaboration in the process.
FINANCIAL IMPACT: 2017 CHDO set aside funds, in the amount of $400,000 will be awarded to Habitat for Humanity, a certified CHDO. HOME funds require a 12.5% match from the developer. Habitat has proposed a match of 21% in private fundraising for a total private contribution of $107,550 to these four builds. Habitat has constructed one entirely privately financed build and one privately financed rehab. Two additional privately financed builds are underway.
NEIGHBORHOOD CONCERNS: The North Valley is an area with engaged and active residents. Habitat, in collaboration with the City, makes substantive efforts to engage a variety of residents and stakeholders. Habitat has begun and will continue outreach efforts related to this project. As a component of the historic review process, a public meeting will be hosted by the local Historic Preservation Commission and area residents notified.
IMPACT IF APPROVED: Four (4) new, affordable, single-family, owner-occupied homes will be constructed using CHDO funds and Habitat will continue development efforts in the North Valley.
IMPACT IF DENIED: Four(4) new, affordable, single-family, owner-occupied homes will not be constructed using CHDO funds.
ALTERNATIVES: None identified at this time.
EEO CERTIFICATION NUMBER: 03135-150630
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Safe Peoria
2. Beautiful Peoria
3. Grow Peoria
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Reduce crime.
3. Choose an item.
DEPARTMENT: Community Development