ACTION REQUESTED:
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Communication from the City Manager and Community Development Director with a Request to RECEIVE and FILE the AMERICAN RESCUE PLAN (ARP) PROGRAM GUIDELINES and APPLICATIONS.
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BACKGROUND: As part of the 2022/2023 Budget, the Community Development Department will be operating multiple new programs with American Rescue Plan (ARP) Funds. Below is a description of each of these programs.
All programs will use an online application system, but individuals may also request a paper application be mailed to them to submit a hard copy application.
A. Housing Rehabilitation Program
The Housing Rehabilitation program is modeled on the East Village Growth Cell TIF Rehabilitation Program, but the program is expanded to all Qualified Census Tracts (QCTs). A map of the QCTs is attached.
The program would be available to all income eligible households at 120% Area Median Income or below. The program requires a 50% match from the homeowner for eligible improvements. Applications will be accepted on a first come, first serviced basis after the receipt of a completed application.
The attached program guidelines and application include all of the requirements for the program. $400,000 will be available in each year with prior year funds rolling over if not expended.
This program will launch once the project coordinator and community service inspector positions are filled.
There have been requests by landlords to allow rental properties to be eligible for this program. If it is the policy direction of Council to include rental properties, staff would recommend requiring a 75% match, income verification of the tenants and a requirement that the landlord does not sell the property for 3 years.
B. Down Payment Assistance Program
The Down Payment Assistance program will provide up to $5,000 or up to 10% of the purchase price in down payment assistance to owner-occupied property purchased within QCT. The homes must be single family with a final sale price under $125,000.
The applicant/owner must retain the property as their primary residence for at least two (2) years after obtaining the funding, secured with a forgivable mortgage. After the retention period has passed, the City will provide the owner a release document to record.
The program is first come, first served, and runs until funding is exhausted each year. $250,000 will be available each year with prior year funds rolling over if not expended. The application and program guidelines are attached.
C. Non-Profit Capital Program
The Non-Profit Capital program is for capital improvements for non-profit organizations that serve low income individuals as defined by HUD. This program also includes CDBG funding which means that all CDBG requirements will apply.
A common request for non-profit organization is funding for physical or capital improvements. Type of eligible improvements would include roof replacement, major mechanical systems, purchase of vans to transport clients, and other major structural needs. Ongoing maintenance items such as the replacement of lightbulbs, minor repairs of mechanical systems and other items defined as maintenance under HUD would not be eligible due to CDBG regulations.
The program will offer funding for non-profit buildings located within the City of Peoria that serve low income residents in the building. There will be a minimum award of $50,000. The applications will be evaluated by the CDBG Public Services Commission and recommendations for funding approved by City Council.
$200,000 in ARP funds and $250,000 in CDBG funds will be available each year for two years for a yearly total of $450,000.
D. Neighborhood Mini-Grant Program
The Neighborhood Mini-Grant Program would provide up to $5,000 grants to neighborhood associations to be used for placemaking, community building, and improving neighborhood branding. The goal is to improve the quality of life and quality of place in Peoria.
The program will fund four (4) neighborhood projects per council district, per year with a maximum funding amount of $5,000 per project. $100,000 is available per year for this program for a two year total of $200,000. Applications will be reviewed by a committee comprised of City staff and Community Leaders.
The program will launch once the Junior Neighborhood Enhancement Coordinator position is filled.
E. Land Bank Program Funding
The Land Bank Program Funding will provide support to the City of Peoria Land Bank. The funds will support property purchases, payment of delinquent taxes, and special projects on City-owned properties; targeted within high priority areas and neighborhoods with high volume of connected City-owned properties. The Lank Bank will begin to have discussions with other taxing bodies about waiving delinquent taxes on donating or acquired properties. In addition, legislation is being proposed at the State level to have this occur as well.
The funds will give access to properties that are distressed and deteriorating without obtaining Judicial Deed or Demolition Order and allow for quicker action. The intention will be to use Land Banking funds in tandem with demolition funds in 2022-2023, making a visible difference in the intervening neighborhoods.
The funding will provide $300,000 during each year of 2022 and 2023, supporting the Land Bank’s functions and setting it on solid footing to redevelop larger land masses in the hardest hit areas of the city. Updates on use of the funds will be discussed monthly with the Land Bank Board.
FINANCIAL IMPACT: All program financials were approved as part of the 2022/2023 budget process.
NEIGHBORHOOD CONCERNS: The programs are in response to neighborhood requests to help improve neighborhoods.
IMPACT IF APPROVED: The Community Development Department will move forward with launching the ARP programs this spring.
IMPACT IF DENIED: The Community Development Department will not move forward with launching the ARP programs this spring.
ALTERNATIVES: None at this time.
EEO CERTIFICATION NUMBER: All organizations or contractors receiving funds will be required to obtain an EEO number.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Beautiful Peoria
2. Grow Peoria
3. Financially Sound City Government
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Have an efficient government.
3. Choose an item.
DEPARTMENT: Community Development