ACTION REQUESTED:
Title
Communication from the City Manager and Community Development Director with a Request to APPROVE an AMENDMENT of the HUD HOME FUNDS Award of $300,000.00 to HABITAT FOR HUMANITY GREATER PEORIA AREA for the Construction of Three (3) New, Affordable, Single-Family, Owner-Occupied Homes Located at the 1000 Block of Northeast Monroe St, Peoria, IL (Council District 1).
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BACKGROUND:
On March 22, 2016, City Council approved the HUD HOME funds award of $300,000 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 (Council Item # 16-092). Additionally, City Council approved the lot donation at 1019, 1021 and 1023 NE Monroe for the development (Council Item # 16-093). The $300,000 in funding was from the Community Housing Development Organization (CHDO) set aside funds from 2015. Habitat is certified by the City as a CHDO. Per HUD HOME regulations, a CHDO is a private, nonprofit, community-based, service organization that have paid staff with the capacity to develop affordable housing for the community it serves.
Upon Council approval on March 22, 2016, City and Habitat staff began to finalize the development plans and budget in order to commit the HOME funds to the project. In consultation with the Chicago HUD Field Office regarding the final underwriting of the development project to commit the funds, the City's HUD representative stated there could be a potential violation of The Hatch Act of 1939 and The Copeland "Anti-Kickback" Act for one of the homes to be sponsored by Congresswoman Cheri Bustos. The Hatch Act of 1939, officially An Act to Prevent Pernicious Political Activities, is a federal law whose main provisions prohibits employees or officials from engaging in some forms of political activity. The Copeland "Anti-Kickback" Act is an act of Congress that supplemented the Davis-Bacon Act of 1...
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