ACTION REQUESTED:
Title
Communication from the City Manager and the Community Development Director with a Request to Approve the Allocation of $225,000 of HOME FUNDS to WALLICK-HENDY DEVELOPMENT COMPANY, LLC, for the Rehabilitation of Schlarman House Located at 707 NE Madison Ave (Tax ID# 18-03-351-001) (Council District 1).
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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. In 2012, the City Council budgeted $212,304 of HOME funds for the creation of a Rental Incentive Program. The purpose of the program was to encourage owners of existing rental units to rehab their properties to foster and maintain decent and affordable housing for low-income individuals while improving the aesthetics of their building.
Since the reservation of HOME funds in 2012, Community Development staff has investigated best practice options for the creation of the Rental Incentive Program. Specifically, staff was interested in a program design that would:
* Serve a special population (i.e.- very low to extremely low income individuals, disabled individuals or the elderly),
* Properties that contained 10 or more units,
* Grant funds used as gap financing for the rehab and required 50% to 100% match contribution by the owner,
* Rehabilitation to increase a unit's energy efficiency for lower utility costs for the tenants, and
* Program design that would meet the new eligibility requirements for rental housing projects under the Final HOME Rule/Regulations published in Jul...
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