ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request to APPROVE the Allocation of $280,000.00 to PEORIA CITIZENS COMMITTEE FOR ECONOMIC OPPORTUNITY (PCCEO) to Build Two New Construction Homes on BEHRENDS AVENUE as a Part of the Illinois Attorney General’s National Foreclosure Settlement Funds. (Council District 3)
Body
BACKGROUND: The City is a team member of the Partners for a Better East Bluff. This partnership was created as a result of the $3 million dollar grant award from the Illinois Attorney General Office (AG) to Peoria’s Local Initiatives Support Corporation (LISC) from the National Foreclosure Settlement funds.
Through the partnership, the City is able to provide various resources and assistance to accomplish neighborhood revitalization in the East Bluff, specifically in the East Village Growth Cell (EVGC) TIF. To date, the City has provided the following support to the Partners for a Better East Bluff initiative:
- Sold City owned, vacant land to Access Peoria, LLC for the development of new construction, rental duplexes. (Council Item # 14-432)
- Provided a HOME fund grant in the amount of $408,827 to Access Peoria, LLC for the development of new construction, rental duplexes. (Council Item # 14-434)
- Committed $50,000 in City Capital Funds for a down payment assistance program for the for sale units to be developed under the Initiative. (City Capital Budget Years 2014 and 2015)
- Through a subgrantee agreement with LISC that provided $170,000 in funding, demolished 20 properties in the EVGC TIF (Council Item # 14-431)
- Encouraged other City partners to develop in the EVGC TIF to support the Initiative. The City awarded $300,000 to Habitat for Humanity (a Community Housing Development Organization - CHDO) to build 3 new construction, single family homes in the EVGC TIF. (Council Item # 15-150 and 15-151)
- Approved $278,000 from the City’s HUD HOME funds for the rehabilitation of three affordable, single-family homes.
On January 12, 2016 (Council Item #16-005) approved the allocation of $280,000 City Capital funds to be used as financial support for the new construction homes. This action will allocate the funds to PCCEO, the developer of the new construction homes. The City Capital funds are the last funds to be used in the project. If the construction comes in under budget, there is a possibility that all $280,000 will not be expended.
City Capital funds will be used, in addition to other grant funds, for the construction of two new single-family homes. The City Capital funds for the project do not carry the 80% AMI / low income requirement similar to HUD funds. Therefore, the 150% AMI cap allowed by the AG office will remain for these two homebuyer units.
FINANCIAL IMPACT: The City’s previously budgeted $280,000 Capital funds will be allocated to PCCEO for the construction of two new single family homes.
NEIGHBORHOOD CONCERNS: The East Bluff is very excited for the continued implementation of the AG grant. Two new construction homes have already been built and homeowners have moved into the homes.
IMPACT IF APPROVED: Two single family homes will be built in the East Bluff.
IMPACT IF DENIED: LISC and PCCEO would need to seek out other sources of funding to complete the requirements of the AG grant.
ALTERNATIVES: None identified at this time.
EEO CERTIFICATION NUMBER: 00740-170930
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
2. Grow Peoria: Businesses, Jobs, and Population
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
DEPARTMENT: Community Development