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TO: Mayor Thomas J. Weisner
FROM: Jim Pilmer, Director of Neighborhood Standards
DATE: June 15, 2015
SUBJECT:
Requesting approval for the Mayor to sign all documents to participate in the Blight Reduction Program (BRP) through the Illinois Housing Development Authority (IHDA). IHDA has requested a final grant agreement (a copy of which was only received, June 15th at 4:42pm via email) to be approved by Illinois Units of Government wishing to participate in this program by June 30, 2015. Staff has requested a 15-day extension, which looks to be possible, so that the City Council approval to accept the grant funds can be up for final consideration at the 7/14/15 City Council meeting and documents can be signed by the Mayor and forwarded to IHDA the next day.
PURPOSE:
The City has received a $280,000.00 grant from IHDA for participation in their Blight Reduction Program. The City together with Fox Valley Habitat for Humanity (HFH) applied for this grant in December 2014.
IHDA had previously provided a conditional commitment letter for signature by both the City and Fox Valley Habitat for Humanity but the final grant agreement and supporting documents must also be provided to the State by the end of the month.
Essentially, the program will provide funding to cover costs related to property acquisition, demolition, and greening of eight blighted properties that have been identified by the City. Under this program, the City would transfer title of the blighted properties to HFH and in turn, HFH would demolish and redevelop the properties. HFH would agree to a note for each acquired property (maximum of $35,000.00 loan for each property). The note would be structured as a zero percent (0%) non-amortizing loan, secured by a recorded lien. The loan would be subject to a 3-year recapture period, during which HFH would agree to repay the loan if a recapture event occurs.
BACKGROUND:
The City is currently participating in a Blight Reduction Program from IHDA from a grant awarded in 2014 for $280,000.00. The grant participation is managed by the Department of Neighborhood Standards and is successful in reaching the city objective of reducing blighted and abandoned properties.
DISCUSSION:
The program is awarded to the Local Unit of Government and identifies a Not for Profit Agency (NFP). Aurora's NFP is Fox Valley Habitat for Humanity (HFH). The city's participation is limited to being the administrating unit of local government with the commitment letter and to assist HFH as a collaborative partner towards the implementation of the program. The intended program implementation includes the acquisition, demolition, greening and maintaining certain blighted properties until the eventual reuse or redevelopment of the properties by Fox Valley Habitat for Humanity.
According to the terms of IHDA's Blight Reduction Program the Redevelopment of the properties and proposed end-uses: "should support the revitalization efforts within the BRP Target Area. Revitalization initiatives can vary and may include such strategies as neighbor side lot purchase programs, community garden initiatives, redevelopment plans for affordable housing, market rate purchase and reuse. IHDA supports any interim use activities for the vacant lots while revitalization plans are being implemented."
The city has identified eight properties and the grant awards a maximum of $35,000.00 towards each property.
IMPACT STATEMENT:
The Blight Reduction Program will have impact in various neighborhoods where a project will occur due to the reduction of blight. The impact administratively will be through city staff in the Mayor's Office, Neighborhood Redevelopment, Neighborhood Standards, Legal Counsel and Finance.
RECOMMENDATIONS:
To complete the guideline for acceptance in the program, I recommend council approval and the resolution be adopted.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing the Mayor to sign all documents for the participation in the Blight Reduction Program through the Illinois Housing Development Authority
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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, in the spring of 2014, Illinois Housing Development Authority (IHDA) created the Blight Reduction Program (BRP) to decrease preventable foreclosure and stabilize neighborhoods by supporting Illinois units of government and their Not-For-Profit Partners as they target blighted, vacant residential properties for demolition, greening and eventual reuse or redevelopment; and
WHEREAS, the city desires as an Illinois Unit of Local Government and was awarded a grant in the amount of $280,000.00 to participate collaboratively with Fox Valley Habitat for Humanity towards community as a part of IHDA's Blight Reduction Program:
WHEREAS, participation in this program will assist in reducing eight blighted properties in the city of Aurora through the Fox Valley Habitat for Humanity implementation of acquisition, demolition, greening, maintaining and the eventual redevelopment of the property.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: adopt this resolution authorizing the City to participate in the Blight Reduction Program, including, but not limited to entering into the Tri-Party Agreement, making the Loan to Fox Valley Habitat for Humanity, undertaking the obligations as the program applicant and proceeding with the Refinancing; and
FURTHER RESOLVED, that the City of Aurora agrees to make the Loan to Fox Valley Habitat for Humanity for the acquisition, demolition, greening and maintenance of specific blighted/vacant residential units for the eventual reuse and redevelopment of those properties and will work with the City as the program applicant to obtain the Refinancing; and
FURTHER RESOLVED, that the Mayor is hereby authorized and empowered to execute and deliver in the name of or on behalf of the City of Aurora, the Tri-Party Agreement, the Agreement and any and all amendments, modifications and supplements thereto, and to execute and deliver such additional documents, instruments and certificates, as may be necessary or desirable for the City to perform its obligations under either of the Tri-Party Agreement and the Agreement; and
FURTHER RESOLVED, that the Mayor be and hereby is authorized and directed to take such additional actions, to make further determinations, to pay such costs and to execute and deliver such additional instruments (including any amendments, other agreements or supplements) as he or she deems necessary or appropriate to carry into effect the foregoing resolutions; and
FINALLY RESOLVED, that the City of Aurora hereby ratifies, authorizes and confirms and approves all documents, agreements and instruments executed in connection with the Loan and the Agreement, including those acts taken prior to the date hereof.