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Communication from the City Manager and Director of Community Development with a Recommendation to Approve an EMERGENCY REPAIR PROGRAM Funded with Trust Funds from the Illinois Housing Development Authority with an Initial Focus area of VINTON HIGHLANDS (District 4).
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BACKGROUND: On February 25, 2014, the City Council accepted a two year grant in the amount of $217,350.00 from the Illinois Housing Development Authority (IHDA), as item 14-069, for the rehabilitation of owner-occupied single family homes. The initial priority is for lower income seniors and disabled/special needs. On May 13, 2014, City staff participated in an IHDA webinar that provided grant details, including housing rehabilitation requirements. Following webinar instructions, the Community Development Department proposes the following program design for this grant.
Eligible applicants:
· Shall be lower income, using IHDA program income limits. The income of four of the households will be no greater than 80% of area median income (AMI). Three households will have an income of no more than 50% AMI and two will have an income of less than 30% AMI. The current 80% AMI income limit for a household of four is $50,950. At 30% AMI, for a household of four, it is $19,110. In order to give households with elderly and disabled/special needs occupant priority, application during the first month will only be accepted from such households,
· Shall not have received housing assistance from the City of Peoria in the past 10 years,
· Shall have proper homeowner's insurance,
· Shall have no recorded liens on the property (except mortgage),
· Must be current on their property taxes and mortgage, and
· Have no outstanding environmental issues.
IHDA requires that all properties in the program must be brought to minimum housing code standards and must be tested and treated for lead-based paint, asbestos, radon, mold, and termites. These requirements will significantly increase the per property cost and as such, City staff has attempted to identify an area in the city that would have a large percentage of potentially eligible properties.
Initial eligible properties shall be only single family detached homes in the Vinton Highlands neighborhood (Council District 4; see the attached map). Properties in Vinton Highlands were built around 1970, should have few contaminates (such as lead-based paint), and are expected to be financially feasible to meet grant repair requirements. The grant is designed to rehabilitate nine (9) homes. By targeting this area, staff believes both the homeowner and neighborhood will benefit. Focusing this program in the Vinton Highlands area also links with the adopted Wellness Plan, in that the Vinton Highlands neighborhood has solid housing stock that needs some limited rehabilitation assistance; and by focusing on those limited properties that need assistance, the entire neighborhood can be improved. If an adequate number of eligible properties are not identified in Vinton Highlands, the program will be expanded to other areas of the city.
Trust Funds will be made available to eligible applicants as a 0% interest five-year forgivable loan of up to twenty thousand dollars ($20,000.00) to make all eligible and required emergency repairs. The loan will be forgiven at a rate of 1/60th a month at the end of each month as long as the applicant complies with program requirements. Soft costs (including inspections), and program delivery cost, (including the preparation of loan documents), are not included in the homeowner's loan amount but are paid separately from Emergency Repair Program funds.
FINANCIAL IMPACT: The City of Peoria will provide financial assistance from the Illinois Housing Development Authority to lower income owners of owner occupied single-family homes for needed repairs.
NEIGHBORHOOD CONCERNS: None
IMPACT IF APPROVED: At least nine homes owned and occupied by lower income residents will be repaired.
IMPACT IF DENIED: At least nine homes occupied by lower income residents will not have emergency repairs completed with funding from the Illinois Housing Development Authority.
ALTERNATIVES: None
EEO CERTIFICATION NUMBER: NA
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria: Businesses, Jobs, and Population
2. Financially Sound City Government, Effective City Organization
3. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Support sustainability.
2. Reinvest in neighborhoods.
3. Have an efficient government.
DEPARTMENT: Community Development