ACTION REQUESTED:
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Communication from the City Manager and the Community Development Director with a Request to APPROVE a Substantial Amendment to the City’s 2010 ANNUAL ACTION PLAN and 2016 ANNUAL ACTION PLAN as Submitted to the Department of Housing and Urban Development (HUD) to Include Two Additional Projects.
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BACKGROUND: This request is to reallocate HOME Investment Partnership funds from 2010 and from 2016 to two additional project.
In October of 2010, the City Council approved $100,000 in HOME funds to be allocated for programming through PCCEO for a down payment assistance program. Due to changing needs and programmatic efforts, these funds will be reallocated to a housing rehabilitation program targeting the Community Core Areas with the intent to concentrate within two or three blocks. The funds were originally intended to be invested in the south end and this will still be the case.
In addition, the 2016 Annual Action Plan included $154,384 under the Focus Housing Leverage program that would use the funds to leverage in support of a larger project that would assist low-income residents. Once the specific project was identified, a substantial amendment would be submitted with additional project details. The project identified is the rehabilitation of Pierson Hills Phase I located at 1270 Great Oak Road. This multimillion dollar project will rehabilitate 100 units of low-income rental housing.
The activity edits to the 2010 Annual Action Plan and the 2016 Annual Action Plan are as follows:
1. 2010 Annual Action Plan - Homeowner Rehabilitation Program ($100,000)
HOME funds will be utilized for rehabilitation projects on low-to moderate-income households within the City of Peoria. The goal of the project is to improve habitability of housing structures to ensure safe and affordable housing. The project may be City-wide, but will focus on areas in need of rehabilitation. The funds for this project will be taken from the available 2010 entitlement funds currently allocated to the Down Payment Assistance Program.
2. 2016 Annual Action Plan - Focus Housing Leverage Program ($154,384)
HOME funds will be utilized to support a focused housing project that assists low-income households. In addition to the activities previously outlined under this project in the 2016 Annual Action Plan, the amendment to this project is to add the eligible use of funds for rehabilitation of rental units for low to moderate income households. The funds will be used for rehabilitation of low income housing development commonly known as Pierson Hills located at 1270 Great Oak Rd, Peoria, IL 61604 as a part of a multi-million dollar renovation project. The funds for this project will remain as a part of the 2016 entitlement funds currently allocated to the Focus Housing Leverage Program.
In accordance with HUD regulations at 24 CFR 91.055 Amendment to the consolidated plan and 24 CFR 91.105 Citizen participation plan; local governments, citizens must be provided an opportunity to comment on any substantial amendment for a period of not less than 30 days before the amendment is implemented. The citizen comment period for the allocations listed above began on November 9, 2016 and closed on Friday, December 9, 2016. In addition to the public comment period, two public hearings were held on Wednesday, November 16 at 8:30 am and 5 pm. To date, no public comments were received by staff during the comment period of at the public hearings.
Upon City Council approval of the substantial amendments, staff will submit the amendments to HUD for approval and inclusion in the 2010 and 2016 Annual Action Plans.
FINANCIAL IMPACT: Financials
NEIGHBORHOOD CONCERNS: Two public hearings and a 30-day public comment period were held by staff. To date, no public comments were received.
IMPACT IF APPROVED: Staff will submit the substantial amendments to HUD for final approval and inclusion in the 2010 and 2016 Annual Action Plans.
IMPACT IF DENIED: The City’s 2010 and 2016 Annual Action plans will remain the same. PCCEO will use the funding for downpayment assistance and another project will need to be identified for use of the Focus Housing Leverage project funding.
ALTERNATIVES: City Council can identify other projects and alternatives for use of funding within HUD regulations.
EEO CERTIFICATION NUMBER:
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