ACTION REQUESTED:
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Communication from the City Manager and the Community Development Director with a Request to APPROVE the Grant Award, in the Amount of $204,384.00, from the City's HUD HOME FUNDS to WALLICK-HENDY DEVELOPMENT COMPANY, LLC for the Rehabilitation of PIERSON HILLS located at 1720 NORTH GREAT OAK ROAD. (Parcel ID # 1806101004) (Council District 2)
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BACKGROUND:
The City of Peoria is considered an entitlement jurisdiction by the US Department of Housing and Urban Development (HUD). As such, funds from the Federal government, through HUD are allocated to Peoria on an annual basis. The City of Peoria receives three (3) grants - Community Development Block Grant (CDBG), HOME Investment Partnership Program and the Emergency Solutions Grant (ESG).
The HOME Investment Partnership Program grant is used to create and preserve affordable housing for low-income individuals in the community. The program often functions as a gap financing tool for developments leveraging private or other public resources. Wallick-Hendy made formal application to the City on March 6, 2017 requesting an allocation of gap financing for Parkwood Commons, a $16,000,000 redevelopment of Pierson Hills. Parkwood Commons is leveraging substantial resources from the Illinois Housing Development Authority (IHDA) and the federal Department of Housing and Urban Development (HUD) to preserve 100 units of affordable housing. Parkwood Commons is finalizing funding for HUD's Mark up to Market program which is meant to preserve affordable housing units at risk of falling out of the affordable market.i As part of this program, Parkwood Commons will become a more sustainable and robust development while ensuring that these 100 units stay on the affordable market through the execution of a new 20-year Section 8 Housing Assistance Program contract.
As such, it is important to ensure the success of developments that bolster the City's affordable housing market and leverage resources...
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