ACTION REQUESTED:
Title
Communication from the City Manager and the Director of Community Development with a Recommendation to Enter into an AGREEMENT, which Supersedes all Previous Agreements, with East Bluff Neighborhood HOUSING Services (EBNHS), Regarding the Use of Special Service Area (SSA) Funds for FY2017.
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BACKGROUND:
The City has been a major supporter and sponsor of EBNHS activities throughout the years and has demonstrated a strong commitment to the agency by providing public funds, building capacity, and leveraging EBNHS neighborhood programs.
On December 13, 2011, City Council approved Ordinance No. 16,781 levying the EBNHS SSA for FY2012. In addition to the levy, Council agreed to place EBNHS funds in escrow in order for the EBNHS to demonstrate their ability to implement specific, measurable programs and activities that directly benefit the households in the SSA.
On May 8, 2012, City Council received and filed a detailed status report by Council Member Timothy Riggenbach regarding the EBNHS efforts to achieve specific and measurable benchmarks identified by the City Council for the EBNHS FY2012 program year. On July 24, 2012, the City Council approved a request to forward a letter of commitment to the EBNHS to allocate $15,000 of FY2012 SSA funds for the FY2012 EBNHS Health and Safety Loan Program, provided the City entered into an agreement with EBNHS for FY2012.
City Council and Staff worked with the EBNHS Board of Directors during 2012 to develop a new agreement, which superseded all previous agreements. Council entered into the agreement on December 11, 2012 for FY2012 and FY2013 and approved Ordinance No. 16,916 to levy SSA funds for FY2013.
On November 26, 2013, City Council entered into an agreement for FY2014 and approved Ordinance No. 17,042. As part of the 2014 agreement, $15,000 was designated to the Health and Safety Loan Program. The Health and Safety Loan program was proposed to provide 0% interest housing loans up to $5,000 to eligible low income households that reside in the EBNHS SSA in need of emergency housing repairs.
Per the 2012-2013 agreement and the 2014 agreement, the Health and Safety Loan program was required to meet State and local requirements. In the fourth quarter of 2012, EBNHS submitted a draft of the Health and Safety Loan Program to the State of Illinois Department of Financial and Professional Regulation for review, to determine whether or not EBNHS was exempt from the requirements of the Residential Mortgage Licensing Act of 1987. They engaged in dialogue with the Illinois Department of Financial and Professional Regulation and made multiple revisions to the program, as requested by the State.
On September 12, 2014, an interpretation was provided by the State that based on the revised program, EBNHS is exempt from licensing requirements through the State of Illinois in operating the Health and Safety Loan Program. Once the revised Health and Safety Loan Program is approved by Council, as part of the attached agreement, EBNHS can proceed with issuing Health and Safety Loans. For 2012 through 2014, a total of 45,000 (15,000 per year) was placed in a City account for use by EBNHS upon State approval of the program. This is required to be matched by $45,000 by EBNHS. As a result $90,000 was made available for the issuance of Health and Safety Loans by EBNHS in 2014, continued quarterly disbursements in 2015.
On December 9, 2014, City Council entered into an agreement for FY 2015, in which $15,000 was devoted to the Health and Safety Loan Program and the remainder was devoted to operations. On June 23, 2015, the agreement was modified to devote $40,000 to operations, with the remainder devoted to the Health and Safety Loan Program.
On December 8, 2015, the City Council entered into an agreement for FY 2016, in which all funds were devoted to operations (no additional funds were directed to the Health and Safety Loan account).
On, July 12, 2016, the agreement was amended, as, EBNHS borrowed $15,000 from the Health and Safety Loan account for operations during 2015. Per the SSA agreement with the City, these funds were restricted for the issuance of Health and Safety Loans. In addition, $10,108.86 of SSA funds designated to the Health and Safety Loan fund, and required to be matched by EBNHS, were not matched. As a result, the EBNHS Health and Safety Loan account is $25,108.86 short.
In place of a repayment plan, as proposed by EBNHS, the following items were included as part the 2016 amended agreement:
1. SSA funds for 2016 will continue to be devoted to personnel and operating expenses, with no additional funds designated to the Health and Safety Loan Program.
2. The EBNHS shall immediately open all financial records to the City. These records will remain fully available to the City as long as Special Service Area funds are provided to the EBNHS.
3. The EBNHS Executive Director and/or other staff shall complete a course of training on budgeting, technical, and financial management acceptable to the City by December 31, 2016.
4. The composition of the EBNHS Board shall be restructured and the bylaws revised, as necessary, following a board retreat facilitated by the LISC and the City of Peoria.
Some of the notable EBNHS accomplishments for 2016 include:
1. Issuance of Twelve (12) New H&S Loans in 2016; for a total of 16 loans; a total amount of $68,788.02.
2. EBNHS has completed 67 projects in the 2016 Community Core boundaries (38 Paint & Porch, 10 Lawn & Landscape and 19 Locks & Lights), while forging relationships with hard to reach residents.
3. EBNHS Manages 16 units in partnership with IFF. This relationship has opened the door with new partnerships throughout the City (HSC, Advocates for Access, Salvation Army, VA and many more). EBNHS has processed over 25 applications for occupancy and successfully filled 11 units with 3 additional units pending.
4. EBNHS in partnership with Resident Officer Hightower, has started a tutoring program that works with the youth in the neighborhood scholastically as well as spiritually. This program offers help with homework and visits with community leaders.
5. EBNHS, with the help of the Community Core Initiative, has completed the second mural on Wisconsin Ave. at Sparky’s Ringside Bar & Grille.
6. Created the Lawn Order Program for at risk youth, to give them a different outlook on life through accountability in the community, financial responsibility, as well as educational and personal goals. There are 25 youth that mow vacant lots throughout the city in this program with a waiting list of 100+.
a. EBNHS, along with Lawn Order, maintains the Illinois Pocket Park as well as yard maintenance for area senior citizens and handicapped residents.
b. Lawn Order maintains vacant lots for PCCEO purchased on Behrends.
c. Lawn Order Academy received the Chuck Weaver "Leaders Change Illinois" Grant.
d. Lawn Order Academy presented to P-Town Soup, Winning $475.00.
e. Lawn Order Academy won the 2016 Sigma award. This annual award is bestowed on individuals, programs and organizations who have impacted the Peoria area in a positive manner through unselfish service to our community.
7. In partnership with 4H University of Illinois, the EBNHS Community Garden for a second year, has been a success forging new relationships with the residents offering free vegetables and health education
For a full list of accomplishments, please see memo attachment B.
The same agreement adopted for 2016 is proposed for 2017 (Attachment A), with the following changes:
v Date Change: The EBNHS Executive Director and/or other staff shall complete a course of training on budgeting, technical, and financial management acceptable to the City by March 31, 2017.
v Date added and wording modified: EBNHS board members and staff will participate in a board retreat facilitated by LISC and the City of Peoria before the end of the first quarter of 2017. At that time, mutually agreed retreat outcomes will be implemented by the EBNHS board’.
v New Item: The EBNHS board may not have greater than 2 vacancies at any given time; when a board seat becomes vacant, EBNHS must make every reasonable effort to fill the vacancy within 6 months.
v New Item: A City of Peoria appointed board member and a Greater Peoria LISC appointed board member shall be added to the board of directors.
v Date Change from November 15th: The EBNHS shall provide a detailed annual work plan and line item operating budget to the City, attached hereto, by October 15th of each year. The annual work plan and itemized budget shall be approved by City Council prior to any Special Service Area fund disbursements.
The Dashboard report developed in 2011, serves as the EBNHS work plan (Exhibit 1). For the 2017 work plan, the following changes were made to the dashboard:
v The number of goals and associated benchmarks were changed from 4 to 5 to address board capacity.
v Goal and Benchmark 1: EBNHS will continue to issue Health and Safety Loans but there is no requirement on number of loans for 2017.
v Goal and Benchmark 2: No change was made to goal and benchmark 2.
v Goal and Benchmark 3: EBNHS will continue to manage their current portfolio of properties; the number of properties was removed, to allow for changes in number of properties, as needed.
v Goal and Benchmark 4: A new benchmark was added to replace the previous benchmark about for EBNHS to reestablish a relationship with NeighborWorks and to submit a Community Development Financial Institute (CDFI) application.
v Goal and Benchmark 5: A new goal and benchmark was added to focus on building board capacity and to aid in working toward a full complement of board members.
FINANCIAL IMPACT: FY2017 SSA funds will be dispersed quarterly per the agreement terms.
NEIGHBORHOOD CONCERNS: No public meetings were held regarding the 2017 proposed agreement.
IMPACT IF APPROVED: The EBNHS will receive EBNHS Special Service Area funds for revenue received by the City from January 1, 2017 to December 31, 2017, for the use of personnel and operating expenses.
IMPACT IF DENIED: An agreement between the EBNHS and the City of Peoria would not be approved and no SSA funds would be dispersed for 2017.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: 00725-151231
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