ACTION REQUESTED:
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Communication from the City Manager and Community Development Director with a Request to Approve $300,000.00 in HUD HOME FUNDS to HABITAT FOR HUMANITY GREATER PEORIA AREA for the Construction of Four (4) New, Affordable, Single-Family, Owner-Occupied Homes Located at the 1000 Block of NORTHEAST MONROE STREET, Peoria, IL (Council District 1).
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BACKGROUND: On an annual basis, 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. As a part of the 2015 City Budget, City Council approved the allocation of $300,000 as CDHO set aside funds for the 2015 program year. This allocation exceeds the required 15% set aside amount of the total HOME funds for CHDO activities.
Per HOME regulations CHDOS are private, nonprofit, community-based, service organization that have paid staff with the capacity to develop affordable housing for the community it serves. To qualify as a CHDO, a nonprofit must demonstrate it meets the following requirements:
• Legal and tax-exempt status,
• Financial management capacity and accountability,
• Staff capacity to carry out HOME-funded activities,
• Experience serving the community,
• Board representation by community members, with at least one-third of its members low-income, and
• Lack of for-profit or public control on its Board.
On October 2, 2015, the City published notice for CHDO certification. The CHDO certification form that was released for the 2015 fund allocation is different than in years past. The form requested information from organizations to obtain CHDO certification and a separate funding request/application would be released to those organizations that meet the CHDO requirements. In previous CHDO certification processes, both the funding request/application and CHDO certification would be released together. Staff altered this process so the City could determine what local organizations could be CHDO eligible prior to releasing funding availability.
Three organizations submitted CHDO certification forms: 1) Peoria Opportunities Foundation (POF), 2) Habitat for Humanity Greater Peoria Area and 3) Peoria Citizens Committee for Economic Opportunity, Inc. (PCCEO).
On January 28, 2016, the City requested the three certified CHDO organizations (listed above) to submit a project design for the available City CHDO funding ($300,000). The project design needed to include the following elements:
1) Type and number of housing units - multi-family, single family, etc.
2) Type of activity - new construction, rehab, rental, homebuyer, housing for special population, etc.
3) Barriers to project design - market for units, lack of financing, site control, property design plans
4) Leveraging opportunities - identified financing, in-kind donations, committed partners
5) Community impact -how does the proposed project benefit the Peoria community? For example, meeting an unmet housing need, serving a specific population, leveraging multiple resources, increasing the tax base, removing blight, etc.
Habitat for Humanity was the only CHDO to submit a proposed project for funding.
Habitat proposed to build four new single family homes on NE Monroe Street (lots - 1009, 1015, 1017, 1019, 1021, 1023 and 1025 NE Monroe; properties will be combined, re-subdivided and street addressed). The homes would be new construction, energy star rated and 2-story properties. The properties would be sold to low-income households and mortgage financing would be provided by Habitat.
As a part of the proposal, Habitat is hosting its first Women’s Build sponsored by Congresswoman Cheri Bustos. As outlined in their proposal, this is a wonderful opportunity to bring together women in leadership of Peoria to help build a home for a woman and her children. Congresswoman Bustos is garnering the help of the three other Illinois Congresswomen as well as the Lt. Governor and Illinois Attorney General.
Habitat, as well as their homeowners, have had success in the East Bluff neighborhood with the builds on Atlantic, Nebraska and Delaware and have been able to contribute to the other targeted neighborhood strategies of additional partners (Peoria LISC and the Attorney General grant and the East Village Growth Cell TIF). However, with the upcoming Women’s Build, Habitat would like to shift their focus from the East Bluff and Council District 3 to the near north side neighborhood and Council District 1. This realignment of focus will better compliment the Women’s Build as the proposed Monroe Street location is in both the Congresswoman Bustos and Councilwoman Denise Moore districts. Additionally, investing federal HOME CHDO funds in a build sponsored by Congresswoman Bustos would provide the opportunity to document a true connection of federal fund appropriations to a local project/impact.
Habitat has a substantial and successful history of providing affordable housing using CHDO funds. For 2013 and 2014, Habitat was the sole CHDO and received a total of $600,000 in HOME funds for the construction of 1102 E Melbourne Ave (Council District 3); 909 NE Perry Ave (Council District 1) 913 NE Perry Ave (Council District 1), 1833 N. Atlantic, 1915 N. Delaware and 900 E. Nebraska (Council District 3).
Habitat identified in the proposal that site control of all the vacant lots identified on NE Monroe was a potential project barrier. Habitat currently owns 1009, 1015 and 1017 NE Monroe and intends to purchase the property at 1025 NE Monroe from the County Trustee. In a separate City Council Request for Action, City staff will request the approval of a property donation to Habitat for vacant lots: 1019, 1021 and 1023 NE Monroe (City owned parcels between the Habitat and County Trustee lots). If approved, Habitat will use the awarded $300,000 of CHDO funds to construct four (4) new, affordable, single-family, owner-occupied homes on the property.
A condition of the funding is compliance with the May 15, 2007 Council Action that states City funded development of single-family homes must comply with the Land Development Code Residential Design Standards. In addition, the properties are located in the Northside National Historic District. While there are no specific property design standards for new construction in the historic district, Habitat will comply with the Land Development Code to provide the best product to its homebuyers as well as complement the existing neighborhood character and design. Example rendering of the 2-story home design for the proposed property is attached. Building materials will include vinyl siding, architectural shingles, double hung windows, vinyl wrapped porch balusters and attached one car garage with entry access from alley.
FINANCIAL IMPACT: 2015 CHDO set aside funds, in the amount of $300,000, will be awarded to Habitat for Humanity, a certified CHDO.
NEIGHBORHOOD CONCERNS: None at this time. Numerous members of the Peoria community are involved throughout the projects and efforts are made by Habitat to invite and include the neighborhood in the development process of the properties. Once approved by Council, Habitat intends to continually engage the neighborhood residents in their development plans.
IMPACT IF APPROVED: Four (4) new, affordable, single-family, owner-occupied homes will be constructed using CHDO funds.
IMPACT IF DENIED: Four (4) new, affordable, single-family, owner-occupied homes will not be constructed using CHDO funds and other programming will have to be developed in order to expend CHDO funds.
ALTERNATIVES: None identified at this time.
EEO CERTIFICATION NUMBER: 03135-150630
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