ACTION REQUESTED:
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Communication from the City Manager and the Community Development Director with a Request to APPROVE $560,077.00 in HUD HOME FUNDS for PEORIA OPPORTUNITIES FOUNDATION for the Construction of Thirty (30) New, Affordable, Single-Family, Owner-Occupied Homes Located in the East Bluff Neighborhood. (Council District 3)
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BACKGROUND: Every year, the City of Peoria receives HOME funds from the US Department of Housing & Urban Development (HUD), which are to be used for affordable housing development and construction. The City also receives Community Development Block Grant (CDBG) funds to be used for similar purposes, as well as more general community development ends. On May 9, 2019, the City of Peoria released a Notice of Funding Availability (NOFA) soliciting proposals for the East Bluff neighborhood, outlining the availability of approximately $560,077 in HOME funds and $250,000 in CDBG funds. Interested parties were required to complete and submit applications detailing how their organizations would use and leverage the HUD funds by June 20, 2019.
The City of Peoria received two, quality responses for the HOME funds in the NOFA: one from Habitat of Humanity and one from Peoria Opportunities Foundation. A panel consisting of five City staff independently reviewed the applications among outlined criteria provided in the NOFA including but not limited to strength of overall concept, experience of developer, budget and appropriateness of costs, demonstrated neighborhood need, local support, readiness to proceed, and leverage of additional funding sources.
The project with the highest total score and rated the first by all reviewers was Peoria Opportunities Foundation. Peoria Opportunities Foundation’s proposal includes developing thirty homes on twenty-five vacant lots, with a mix of two- and three-bedroom single-family and duplex units. Six (6) units well be affordable to families at or below 30% Area Median Income (AMI), fifteen (15) units will be affordable to families at or below 50% AMI, and nine (9) units will be affordable to families at or below 60% AMI. In addition, twenty-one (21) of these units will have project-based vouchers awarded by the Peoria Housing Authority. The project meets City zoning requirements for the proposed sites (R-4: Single-Family Residential, which allows for duplex development when designated as such at the time of platting). It is also directly connected to the Wisconsin Avenue Business Corridor, with strong potential to contribute to ongoing community revitalization efforts in the area.
The project has been designed for energy efficiency, green building standards, and to create an environmentally sustainable built environment enhancing the quality of life in the East Bluff neighborhood, with the developer obtaining ICC 700-2012 National Green Building Standard certification. Further, the units have been designed to mesh well with the character of the neighborhood, with covered porches and other features that complement the aesthetics of the area. All proposed sites are located within one mile of each other.
FINANCIAL IMPACT: 2018 HOME funds, in the amount of $560,077, will be awarded to Peoria Opportunities Foundation. Peoria Opportunities Foundation will then use these funds to develop thirty affordable housing units in the East Bluff neighborhood.
NEIGHBORHOOD CONCERNS: The East Bluff is a strong neighborhood, with active and engaged residents. Peoria Opportunities Foundation, in collaboration with the City, makes substantive efforts to engage a variety of residents and stakeholders. As a component of the historic review process, a public meeting will be hosted by the local Historic Preservation Commission and area residents. In addition, Peoria Opportunities Foundation has a strong history of collaborating with area residents, local nonprofits, and developers/funders alike.
IMPACT IF APPROVED: Thirty (30) new, affordable homes will be developed in the East Bluff neighborhood
IMPACT IF DENIED: Peoria Opportunities Foundation will have to find another funding source to cover the portion of project costs that it intended to be covered by City of Peoria HOME funds. Another project will need to be identified for the HOME funding.
ALTERNATIVES: None identified at this time.
EEO CERTIFICATION NUMBER: 02184-200630
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria
2. Safe Peoria
3. Financially Sound City Government
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Reduce crime.
3. Support sustainability.
DEPARTMENT: Community Development