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TO: Mayor Richard C. Irvin
FROM: Chris Ragona, Director of Community Services
DATE: October 3, 2024
SUBJECT:
A Resolution seeking City Council authorization to apply for the State of Illinois Community Development Block Grant-Coronavirus (CDBG-CV) Healthy Houses Program Grant in an amount not to exceed $2,000,000 to preserve single and multi-family, landlord owned, low to moderate income units, up to six units total, and encourage neighborhood revitalization with an emphasis on maintaining health and safety.
PURPOSE:
The Illinois Department of Commerce and Economic Opportunity (DCEO) has issued a notice of funding opportunity for the installation and/or replacement of entire Heating, Ventilation and Air Conditioning (HVAC) Systems in single and multi-family, low to moderate income rental housing units. Only units of local government in areas receiving direct entitlement CDBG funding from HUD are eligible to apply for the CDBG-CV Urban Shelter Program.
BACKGROUND:
On March 27th, 2020, Congress passed the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to directly address the impacts of COVID-19. As part of the CARES Act, Congress appropriated $5 billion to the U.S. Department of Housing and Urban Development (HUD) for allocation to cities and states through the Community Development Block Grant (CDBG) program. The State of Illinois has been allocated $70,753,404 of these CARES Act CDBG funds (CDBG-CV funds). CDBG-CV funds must be utilized to prevent, prepare for, and respond to COVID-19.
The program targets housing projects which preserve single and multi-family, landlord owned, low to moderate income units, up to six units total, and encourage neighborhood revitalization with an emphasis on maintaining health and safety. The funds are being made available for installation and/or replacement of entire Heating, Ventilation and Air Conditioning (HVAC) Systems in single and multi-family, low to moderate income rentals. All codes and standards which address mechanical, structural, and energy efficiency should, at a minimum, incorporate applicable State plumbing and electrical and any local rehabilitation codes and standards.
The Healthy Houses grant program is a unique, one-time offering to assist municipalities throughout the State of Illinois in maintaining the integrity of the housing stock in their community. Communities can apply for a minimum of $250,000 up to $2,000,000 based on potential need assessments for the area. Under this program, the City is seeking the maximum amount to assist approximately 100-150 single and multi-family unit properties. Grant funds will be utilized to assist eligible landlords/property owners with replacement of partial or total HVAC systems in low-to-moderate (LMI) income qualified rental units. Properties must have six or less units and be located within the corporate limits of the municipality. Landlords are required to complete an application with occupant information to determine eligibility. At this time, only rental units are eligible for this program. However, should the State amend the program eligibility requirements to include single-family, owner-occupied units, authorization is also sought to adjust program eligibility requirements should this DCEO Program be amended.
DISCUSSION:
This funding will benefit the City of Aurora as it will provide landlords/property owners of affordable housing units with the opportunity to improve the quality of life, safety and health for the City's low to moderate income tenants through the installation of HVAC systems. This HVAC rehabilitation effort will improve the City residents' housing air quality, increase energy efficiency, and reduce utility bills.
IMPACT STATEMENT:
This resolution will allow the City to submit a grant application to the Illinois Department of Commerce and Economic Opportunity for the CDBG-CV Healthy Houses Program to preserve single and multi-family, landlord owned, low to moderate income housing, by funding HVAC upgrades.
The City will administer any awarded grant funds through the Community Development Division in the same manner as it administers the City's CDBG entitlement funds.
RECOMMENDATIONS:
Staff recommends that the City Council approve a resolution authorizing an application to the Illinois Department of Commerce and Economic Opportunity for the CDBG-CV Healthy Houses Program to preserve single and multi-family, landlord owned, low to moderate income housing, by funding HVAC upgrades, encouraging neighborhood revitalization with an emphasis on maintaining health and safety in an amount not to exceed $2,000,000. Staff also requests authorization for the City's Mayor, Treasurer, City Clerk, or their designees to execute such documents and all other documents necessary for the carrying out of said application and to also provide such additional information as may be required to accomplish the obtaining of such grant.
cc: Public Health, Safety, and Transportation (PHST) Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution seeking City Council authorization to apply for the State of Illinois Community Development Block Grant-Coronavirus (CDBG-CV) Healthy Houses Program Grant in an amount not to exceed $2,000,000 to preserve single and multi-family, landlord owned, low to moderate income units, up to six units total, and encourage neighborhood revitalization with an emphasis on maintaining health and safety
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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 City of Aurora is applying to the State of Illinois for a Community Development Block -- Coronavirus Grant, and
WHEREAS, it is necessary that an application be made and agreements entered into with the State of Illinois;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
1) that the City of Aurora apply for a grant under the terms and conditions of the State of Illinois and shall enter into and agree to the understandings and assurances contained in said application.
2) that the Mayor, Treasurer, City Clerk, or their designees, on behalf of the City of Aurora execute such documents and all other documents necessary for the carrying out of said application.
3) that the Mayor, Treasurer, City Clerk, or their designees, are authorized to provide such additional information as may be required to accomplish the obtaining of such grant.