ACTION REQUESTED:
Title
Communication from the City Manager and Community Development Director with a Request to Approve $300,000.00 in HUD HOME FUNDS to HABITAT FOR HUMANITY GREATER PEORIA AREA for the Construction of Three (3) New, Affordable, Single-Family, Owner-Occupied Homes Located at 1102 E. MELBOURNE (Council District 3) and 909 N.E. PERRY, 911 N.E. PERRY, and 913 N.E. PERRY. (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 2013 City Budget, City Council approved the allocation of $300,000 as CDHO set aside funds for the 2013 program 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 organization that have paid staff with the capacity to develop affordable housing for the community it serves. To qualify as a CHDO, a nonprofit must demonstrate that meets certain requirements regarding its:
· Legal and tax-exempt status,
· Financial management capacity and accountability,
· Staff capacity to carry out HOME-funded activities,
· Experience serving the community,
· Board representation by community members, with at least one-third of its members low-income, and
· Lack of for-profit or public control.
On October 28, 2013, the City published notice for CHDO certification and 2013 funding requests. Habitat for Humanity Greater Peoria Area was the only organization to submit a certification and funding request. Habitat for Humanity has a substantial and successful history of providing affordable housing using CHDO funds. In 2012, Habitat for Humanity Greater Peoria Area was the sole CHDO and received $230,000 in HOME funds for the construction of 505 E. Seneca Place (Council District 3); 507 E. Seneca Place (Council District 3); and 2223 W. Tripp Ave (Council District 4).
Habitat for Humanity submitted a funding request for CHDO funds in the amount of $300,000 to construct three (3) new, affordable, single-family, owner-occupied homes located at 1102 E. Melbourne (Council District 3) and 909 NE Perry Ave, 911 NE Perry Ave and 913 NE Perry Ave (Council District 1) (See Attachments A and B). Please note the properties at 909, 911 and 913 NE Perry Ave will be combined to yield two separate lots. Additional funds from private donations and sweat equity will be contributed by Habitat for each property. The anticipated construction start date will be May 2014.
Each house will be Energy Star compliant, reducing the ongoing utility cost for the occupant. Another condition of the funding is the compliance with the May 15, 2007 Council Action that states City funded development of single-family homes must comply with the Land Development Code Residential Design standards. Furthermore, the properties to be built on the Perry Ave lots will be located in the Northside National Historic District. City staff has received approval from the Illinois Historical Preservation Agency (IHPA) to use federal funds for the new construction in the district. Habitat has decided to enhance the property aesthetic to complement the surrounding properties by including an exterior half brick façade and wrap around front porch. An example of this type of Habitat design is attached.
FINANCIAL IMPACT: 2013 CHDO set aside funds, in the amount of $300,000, will be used by Habitat for Humanity, a certified CHDO.
NEIGHBORHOOD CONCERNS: None at this time. Numerous members of the Peoria community are involved throughout the projects and efforts are made by Habitat to invite and include the neighborhood in the development process of the properties. Habitat has been in discussions with neighbors in the immediate area surrounding the build sites.
IMPACT IF APPROVED: Three (3) new, affordable, single-family, owner-occupied homes will be constructed using CHDO funds.
IMPACT IF DENIED: Three (3) new, affordable, single-family, owner-occupied homes will not be constructed and other programming will have to be developed in order to expend CHDO funds.
ALTERNATIVES: None.
EEO CERTIFICATION NUMBER: 03135-140630
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
DEPARTMENT: Community Development