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Communication from the City Manager and Director of Economic Development with a Request to ADOPT an ORDINANCE Reserving 2021 PRIVATE ACTIVITY BOND VOLUME CAP, in the Amount of $12,252,680.00.
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BACKGROUND: Each year the City of Peoria receives an allocation known as Volume Cap from the State of Illinois for Private Activity Bonding. This Volume Cap can be used for Industrial Revenue Bonds. The Volume Cap may also be used for financing housing. The categories available for use of the Volume Cap for housing are: Single Family Revenue Bonds, Multi-Family Revenue Bonds and Mortgage Credit Certificates. In general, allocation of the Volume Cap is weighed based on the demand for projects and the need to support both industrial/manufacturing projects and housing projects.
The City's Volume Cap must be reserved by April 30, 2021, otherwise reverts back to the State of Illinois. Approval of the attached ordinance reserves the Volume Cap but does not allocate its specific use.
2021 home rule units of government are allocated $110 per capita of Private Activity Volume Cap. Based on the State's assigned population of 111,388 the allocation for Peoria totals $12,252,680.
FINANCIAL IMPACT: $12,252,680 financial impact available for projects if reservation ordinance is approved. $12,252,680 financial impact missed if not approved.
NEIGHBORHOOD CONCERNS: Private Equity bonds reduce the barriers of homeownership for first-time home buyers. The down payment for new home and the closing costs are the two most significant barriers to homeownership. This program reduces the cost for both. Increased homeownership is directly linked to increasing property values. Increasing both the numbers of homeowners and the property values throughout the City are priorities we need to support.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL'S 2014-2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Grow Peoria: Businesses, Job...
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