ACTION REQUESTED:
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Communication from the City Manager and the Community Development Director with a Request to APPROVE $110,000.00 in HUD HOME (CHDO) FUNDS for HABITAT FOR HUMANITY GREATER PEORIA for the Construction of One (1) New, Affordable, Single-Family, Owner-Occupied Home Located at 616 EAST GIFT. (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). Fifteen percent (15%) of the total annual HOME allocation must be set aside for Community Housing Development Organization (CHDO) activities. For the 2019 fiscal year, the City received $655,929 in HOME funds. By setting aside $110,000, the City meets CHDO requirements with Habitat for Humanity’s proposal.
Per HOME regulations, CHDOs are private, nonprofit, 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.
Three CHDOs applied to be certified as CHDOs for the 2019 year. Only one project proposal was submitted from Habitat for Humanity. 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 initial proposal included developing a single-family home at 2201 N. Delaware or 2800 N. Peoria, but both of those lots are unavailable. Habitat worked to identify another lot for the project at 616 E. Gift Ave. This vacant lot in the East Bluff is currently owned by the County Trustee. Habitat has worked previously in the East Bluff, their most recent homes in the neighborhood constructed in 2016. Between 2012 and 2016, Habitat developed seven (7) homes in the East Bluff, including a home at 1915 N. Delaware St.
FINANCIAL IMPACT: 2018 CHDO set aside funds, in the amount of $110,000 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: $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: One (1) new, affordable, single-family, owner-occupied home will be constructed using CHDO funds in the East Bluff.
IMPACT IF DENIED: One (1) new, affordable, single-family, owner-occupied home will not be constructed using CHDO funds in the East Bluff. Another CHDO project 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