ACTION REQUESTED:
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Communication from the City Manager and the Community Development Director with a Request to APPROVE $220,000.00 in HOUSING & URBAN DEVELOPMENT (HUD) Community Housing Development Organization (CHDO) Funds for HABITAT FOR HUMANITY - GREATER PEORIA, for the Construction of Two (2) New, Affordable, Single-Family, Owner-Occupied Homes Located at 600 EAST ILLINOIS AVENUE and EAST ILLINOIS AVENUE (Parcel No. 18-04-277-020) (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). A minimum of fifteen percent (15%) of the total annual HOME allocation must be set aside for Community Housing Development Organization (CHDO) activities. By setting aside $110,000 in 2019 HOME funds $110,000 in 2020 HOME funds, for a total of $220,000, the City meets CHDO requirements with Habitat for Humanity’s proposal
Per HOME regulations, CHDOs are private, community-based service organizations that have a paid staff with the capacity to develop affordable housing for the community they serve. To maintain status as a CHDO, an organization must recertify annually to ensure they continue to meet HUD’s requirements for CHDO status.
One CHDO applied to be certified as a CHDO for the 2021 year. One application from Habitat for Humanity proposed two new construction projects for the $220,000. The project proposal and CHDO application from Habitat were reviewed by relevant personnel and Habitat’s CHDO application and project proposal were deemed to meet program criteria.
Habitat’s proposal included developing two single-family homes at the lot on E Illinois Ave known as Parcel No. 18-04-277-020 (Lot A) and 600 E Illinois Ave (Lot B). These vacant lots in the East Bluff are currently owned by the City of Peoria and ownership would be transferred to Habitat. Habitat has worked previously in the East Bluff, their most recent home in the neighborhood constructed in 2021. Between 2012 and 2021, Habitat developed eight (8) homes in the East Bluff, including a home at 616 E Gift Ave.
FINANCIAL IMPACT: 2019 and 2020 CHDO set aside funds, in the amount of $110,000 and $110,000, respectively, for a total of $220,000 will be awarded to Habitat for Humanity, a certified CHDO. HOME funds require a 12.5% match from the developer. Habitat has confirmed that it will be able to secure the requisite matching funds for each project: $13,750.
NEIGHBORHOOD CONCERNS: The East Bluff is a strong neighborhood, with active and engaged residents. Habitat, in collaboration with the City, makes substantive efforts to engage a variety of residents and stakeholders. In addition, there is a 30 day public comment period for the HUD Annual Action Plan yearly.
IMPACT IF APPROVED: Two (2) new, affordable, single-family, owner-occupied homes will be constructed using CHDO funds in the East Bluff.
IMPACT IF DENIED: Two (2) new, affordable, single-family, owner-occupied homes will not be constructed using CHDO funds in the East Bluff. Other CHDO projects must be identified.
ALTERNATIVES: None identified at this time.
EEO CERTIFICATION NUMBER: 03135-150630
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria
2. Beautiful 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. Reduce crime.
DEPARTMENT: Community Development