ACTION REQUESTED:
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Communication from the City Manager and Director of Community Development with a Request to APPROVE $400,000.00 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 in the 1000 and 1100 Blocks of NORTHEAST MADISON and MONROE. (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 2017 Budget, City Council approved the allocation of $400,000 as CHDO set-aside funds for the 2017 program (funding) 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 organizations that have 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 organizations applied and were certified as CHDOs for the 2017 year. In November of 2017 (the month that the City received its HOME allocation from HUD), Staff requested proposals from these three organizations (Issues Update 11/30/17) with a due date of January 19, 2018. Staff received two proposals. In order to evaluate these proposals, Staff assembled a committee of City staff and volunteers with subject matter expertise in housing, infrastructure, lending and community investment. The committee ranked the projects along twelve criteria (strength of overall concept; strength of development team, experience of developer, fiscal strength of developer, budget and appropriateness of costs, demonstrated neighborhood need, local support, appropr...
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