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TO: Mayor Richard C. Irvin
FROM: Jill Morgan, Planner
DATE: June 20, 2019
SUBJECT:
A Resolution Approving the Use of Preservation Funds for a Historic Preservation Grant Program and Adopting New Program Guidelines (19-0520 - KDWK-18.028-PZ/HP - JM)
PURPOSE:
To approve the use of allocated funds from the 2018 Budget to be used towards a Historic Preservation Grant and to approve new Historic Preservation Grant Program Guidelines.
BACKGROUND:
In 2018, City Council allocated $100,000 for a Historic Preservation Funding program. The original program as outlined in the Decision Package was for a Revolving Loan Program. It was anticipated that it would be a no interest/low interest loan that the homeowners would pay back over five years. The loan would be paid back over the term of the loan by monthly payments. It would be disbursed over five years at lower monthly payments than traditional financing options.
After some initial feedback from homeowners and the Preservation Commission, concerns were raised that the program would not provide the assistance that the districts really needed and may not be widely used. Concerns raised included that monthly payments would be beyond what homeowners could afford and that credit checks would hinder some residents from being able to take advantage of the program.
Following these discussions, it became apparent that a grant program would be more beneficial to the residents as well as better meeting the original outcome of the program, being to assist homeowners with the home improvement costs because of the additional regulations required by the Design Guidelines while creating more historically appropriate and more aesthetically appealing communities.
The proposed grant program would be similar to previous historic preservation grant funding. The new program guidelines outline a reimbursement program. The minimum amount of each grant would be $5,000 and the maximum would be $20,000. All grants at or under $10,000 would require no cash match. All grants over $10,000 would require a dollar for dollar amount for every dollar over $10,000. The amount awarded will be approved by the City Council with Staff recommendation based on multiple cost estimates submitted as part of the application process and the ranking of the projects by the Preservation Commission. Eligible structures would be those located within a local historic district or designated local historic landmark or a structure listed on the National Register if it becomes a local landmark. Grants would only be available for exterior work that is non-maintenance related that is of high quality and will last for a minimum of five years before any additional work would be needed.
DISCUSSION:
Budget authorization for this program is provided in account 340-1840-463.53-31in the Capital Improvements Fund for 2019 so no expense budget amendment is needed to convert this program from a revolving loan to a grant format. The Capital Improvements fund has sufficient reserves to fund this program in 2019 with no funding coming in from loan repayments.
Building and Permits and Planning are requesting a decision package for 2020 to provide continued funding for this Historic Preservation Grant Program. This decision package will need to identify funding for this program and this will be discussed in detail during the 2020 budget review process this fall.
IMPACT STATEMENT:
Allowing the money allocated for a Revolving Loan Fund to be used towards a Historic Preservation Grant Program would better assist homeowners with the home improvement costs because of the additional regulations required by the Design Guidelines while creating more historically appropriate and more aesthetically appealing communities. Further, unless the program is actually used, the City will not see the preservation of these homes and the assessed value represented when properly maintained.
RECOMMENDATIONS:
Staff would recommend APPROVAL of A Resolution Approving the Use of Preservation Funds for a Historic Preservation Grant Program and Adopting New Program Guidelines.
ATTACHMENTS:
Revolving Loan Decision Package
Historic Previous Grant Program Guidelines
cc:
Alderman Michael Saville, Chairperson
Alderman Sherman Jenkins, Vice Chairperson
Alderman Carl Franco, Member
Alderman Robert J. O'Connor, Member
Alderman Juany Garza, Member
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Approving the Use of Preservation Funds for a Historic Preservation Grant Program and Adopting New Program Guidelines
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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 Aurora City Council allocated funds for a Historic Preservation Revolving Loan Fund program in the 2018 Budget; and
WHEREAS, the Aurora City Council desires to conserve and revitalize the City’s historic neighborhoods; and
WHEREAS, the Aurora City Council approved previous preservation funding, including the Window Restoration Grant Guidelines in 2003 as R03-118, the Preservation Deferred Loan Program Guidelines in 2005 as R05-114, the De-Siding Grant Program Guidelines in 2006 as R06-216, and the Preservation Grant Program Guidelines in 2012 as R12-304, for financial assistance to property owners in historic districts for the above named-purposes; and
WHEREAS, the Preservation Commission recommended that the allocated funds be used for a grant program so that funds can be utilized in the most effective and efficient fashion and has recommended guidelines for this purpose as attached hereto as Exhibit “A”;
WHEREAS, it has been determined that a grant program would be the most effective approach to meet the goal of preserving and revitalizing the City’s historic neighborhoods and be the most beneficial to the residents.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Aurora, Illinois, hereby authorizes the allocated funds from the 2018 Budget to be used towards a Historic Preservation Grant Program that will be regulated by the Historic Preservation Grant Program Guidelines attached hereto as Exhibit “A”.