ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request to Approve the Allocation of $408,827.00 of HOME FUNDS to ACCESS PEORIA, LLC, for the Construction of Two New Duplexes Located at 713 E. LASALLE ST. (Tax ID# 18-04-232-016) and 1707 N. INDIANA AVE. (Tax ID# 18-04-231-025). (District 3).
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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 Local Initiatives Support Corporation (LISC) from the National Foreclosure Settlement funds.
Access Peoria, LLC was formed by Illinois Facilities Funds (IFF). IFF is team member of the Partners for a Better East Bluff and their role is for development of affordable, rental housing for low income households with disabilities. LISC will award Access Peoria $1 million of the AG funds for the development of eight (8) new construction duplexes that will provide a total of sixteen (16) rental units. Illinois Housing Development Authority (IHDA) will also provide $2,577,638 of funding for the project.
The total project costs are $3,986,465. After the funding commitment from LISC and IHDA, an additional financing gap of $408,827 existed for the project. IFF approached the City regarding the allocation of HOME funds to the project. This project aligns with the goals and objectives of the HOME grant program to create and preserve affordable housing for low-income individuals in the community. Additionally, providing HOME funds increases the City's participation in the Partners for a Better East Bluff initiative and provides overall funding leverage for the AG grant award.
The HOME investment of $408,827 will be allocated for construction hard costs. The total project budget shows new construction costs at $2,659,571; approximately $166,223 per unit (total of 16 units/8 duplexes). The HO...
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