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TO: Mayor Richard C. Irvin
FROM: Chris Ragona, Director of Community Services, Community Services Department
DATE: February 13, 2025
SUBJECT:
A Resolution Authorizing the Execution of a Modification to a Redevelopment Agreement Between the City of Aurora and Community Housing Advocacy and Development (CHAD) to Modify Loan Terms for Project HOME-2010-01.
PURPOSE:
The City of Aurora receives approximately $500,000 annually in Home Investment Partnership (HOME) funds to create, preserve, and further affordable housing opportunities throughout the City. Since the City received HOME funding, nine projects have been completed that all require numerous legal documents to be executed and, in some cases, recorded against the properties assisted.
BACKGROUND:
As part of a re-examination of these legal documents, Community Development staff is recommending modifications to update the language to meet HOME regulations and to match the HUD required completion dates in each legal document.
DISCUSSION:
Even though projects will not complete their affordability periods for many years, it is important to make these changes now so that a correct unit inspection schedule can be implemented and all of the legal document dates will match. As noted above, some of the projects will also require a modification to the agreement, regulatory land use restriction agreement (RLURA), mortgage, and notes to correctly state the number or type of HOME units along with the correct affordability period dates.
|
Project No. |
Developer |
Project |
Expiration Date of HUD Affordability Period |
|
HOME-2010-01 |
Community Housing Advocacy and Development (CHAD) |
1658 Blackwell Lane, 2517 Wild Dunes, 2958 Partridge |
10/22/2028 |
IMPACT STATEMENT:
This action will have a positive impact on the City's community development efforts and reduce the long-term financial risk to the City of Aurora.
RECOMMENDATIONS:
Staff recommends that the affordability periods and required modifications for the properties in the above table be recommended for approval by the Finance Committee and that the Mayor, Chief of Community Services, Director of Community Services, Community Development Manager, or their designees be authorized to execute any contracts as well as any other documents associated with Modification One to Agreement HOME-2010-01, including but not limited to HUD's program administration requirements.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing the Execution of a Modification to a Redevelopment Agreement between the City of Aurora and Community Housing Advocacy and Development (CHAD) to Modify Loan Terms for Project HOME-2010-01.
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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, housing activities through funding by the U.S. Department of Housing and Urban Development; and
WHEREAS, the City of Aurora has a Consolidated Plan and Annual Action Plan which
have been adopted by the City Council and which have defined priorities for HOME; and
WHEREAS, the 2020-2024 Consolidated Plan and all substantial amendments and proposed 2025-2029 Consolidate Plan will define priorities for community development funding and obligations to inform the public on the proposed changes; and
WHEREAS, the HOME Investment Partnerships Program established guidelines established that the City would enter into an agreement with Developers to assist the City in implementing its programs in an effective and efficient manner; and
WHEREAS, the City approved a Redevelopment Agreement for a HOME Program loan between the City of Aurora and Community Housing Advocacy and Development (CHAD) for the purpose of providing HOME funding for affordable housing; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: finds as facts all of the preamble recitals of this Resolution and hereby approves an agreement modification for Project HOME-2010-01 between the City of Aurora and Community Housing Advocacy and Development (CHAD) to provide Home Investment Partnerships Program (HOME) for affordable housing; and authorizes the City's Mayor, Chief Community Services Officer, Director of Community Services, Community Development Manager, or their designees to execute any agreements, contracts and other documents associated with these approvals, including but not limited to HUD's program administration requirements.