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TO: Mayor Thomas J. Weisner
FROM: Daniel Barreiro, Chief Community Services Officer
DATE: January 6, 2014
SUBJECT:
A Resolution Approving a Memorandum of Agreement Between the Aurora Housing Authority, the City Of Aurora and Brinshore Development LLC for Scattered Site Housing Development in the City Of Aurora.
PURPOSE:
This report requests a Resolution (presented below) authorizing the approval of an attached Memorandum of Agreement (MOA)(Attachment "A") between the City, Aurora Housing Authority, and Brinshore Development LLC to expand a currently contemplated 40-unit scattered site acquisition/rehabilitation/rental development concept for workforce housing to potentially cover a second phase of development between 2015-2017.
BACKGROUND:
In March of 2013, the City began substantive discussions with the Aurora Housing Authority (AHA) and Brinshore Development LLC regarding replacement units for the Jericho Circle housing site. Given the remote location of the previous Jericho Circle project, and the lack of amenities (banks, shopping, post offices, medical services, schools, etc.) the City favored a scattered site replacement model that both integrated the 146 workforce housing lost with the demolition at Jericho Circle into the City's existing housing stock, and also assisted to tackle the City's still prevalent foreclosure problem with 2,385 housing units in some stage of foreclosure and 1,160 abandoned properties as of November of 2013.
The parties mutually agreed on an acquisition/rehabilitation/rental strategy that received an award of $8 million in federal workforce housing tax credits in Fall of 2013 for the development of the first 40 homes. The current phase will have Boreas LLC (a subsidiary of Brinshore) purchase 40 vacant homes, substantially rehabilitate them, and manage and rent them as workforce housing for a period of 30 years. Staff is currently seeking approval from the City Council to fund $525,000 in City HOME and Neighborhood Stabilization Program funds into the current project phase.
City staff, the AHA, and Brinshore believe that the template developed for the current project represents a viable and responsible option for a future phase of development that utilizes the same development format, and have drafted the attached MOA to generally memorialize the intent of the parties to complete a second phase of development if it is feasible. The MOA calls for a second phase to begin in approximately mid-2015 if the project can be financed. The MOA calls for the City to expedite zoning requirements and provide a multi-year commitment of housing funds only if the second phase project is financially viable and municipal funds are available.
DISCUSSION:
The City has recently redrafted a substantial amendment to its Annual Action Plan for federal funding that allocates funding into the current project, emphasizing the intent to complete an additional phase of development. The current development template objectively meets the City's goals to assist lower income Aurorans', those who are rent burdened, and to address the City's foreclosure problem. The project produces affordable units for residents with disabilities. The project also represents a smart investment of City housing dollars, with its currently contemplated $525,000 in project funding yielding a $20 match for every municipal dollar invested in the current project phase. Although future project phases may require different financing mechanisms, staff is confident that the partnership represented in the attached MOA will produce well developed, well managed, and integrated workforce housing.
IMPACT STATEMENT:
Overall, the two project phases will produce approximately 173 new workforce housing units that will be well integrated into the existing Aurora housing stock. The project partners are using a criteria that focuses on acquisition of vacant homes within one mile of substantial amenities (as opposed to Jericho Circle which only has two schools within a one mile radius, and no shopping, medical services, etc.). It is estimated that both phases of the project contemplated in the attached MOA would be completed by December of 2017.
RECOMMENDATIONS:
That the City Council approve a Resolution presented below that authorizes the execution of the MOA presented as Attachment "A".
cc: Alderman Saville, Chairman
Alderman Donnell
Alderman Irvin
Alderman Hart-Burns, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Approving a Memorandum of Agreement Between the Aurora Housing Authority, the City Of Aurora and Brinshore Development LLC for Scattered Site Housing Development in the City Of Aurora.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the Aurora Housing Authority received approval for the demolition of the current Jericho Circle housing development within the City of Aurora, has accomplished said demolition, and now has a need for replacement units of housing; and
WHEREAS, the Aurora City Council recognizes the foreclosure burden that has affected the City and its residents, and in keeping with the Metropolitan Mayors Caucus Housing Endorsement Criteria, believes the procurement and redevelopment of foreclosed homes will better and more quickly serve the community in helping replace said units; and
WHEREAS, Brinshore Development LLC is a company with prior experience developing housing units, and has agreed to plan and implement a phased scattered site rental development utilizing said foreclosed properties in order to further the goals of all parties; and
WHEREAS, the City and the Housing Authority have agreed to support Brinshore in the planning, funding and implementation of said scattered site development, all as provided in the attached Memorandum of Agreement; and
WHEREAS, it is important to the City Council that the Memorandum of Agreement between the above named parties, attached hereto and made a part hereof, be approved in order to facilitate this project as provided therein.
NOW, THEREFORE, BE IT RESOLVED that the Planning and Development Committee of the City of Aurora, Illinois, finds as facts all of the preamble recitals of this Resolution and herby approves the aforesaid Memorandum of Agreement between the Aurora Housing Authority, the City of Aurora and Brinshore Development LLC for the development of scattered site housing within the City of Aurora.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
____________________________ __________________________
Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Peters, Ward 5 Alderman Saville, Ward 6
____________________________ __________________________
Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
____________________________ __________________________
Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
____________________________ __________________________
Alderman Irvin, At Large Alderman O'Connor, At Large
ATTEST:
____________________________ __________________________
City Clerk Mayor
Attachment "A" - Memorandum of Agreement