cover
TO: Mayor Richard C. Irvin
FROM: Chris Ragona, Community Development Manager, Community Services
DATE: April 4, 2019
SUBJECT:
A Resolution for Approval of Modification One to Project CDBG-2017-02 - The Neighbor Project - Safety First Program.
PURPOSE:
The purpose of this resolution request is to modify the scope of eligible activities for clients, budget, and terms to The Neighbor Project's Safety First Program Guidelines and corresponding homeowner agreement. Recently, Neighborhood Redevelopment Division (NRD) staff and The Neighbor Project have been working on program changes to expand the list of eligible activities to further accommodate homeowner needs and to address The Neighbor Project and HUD’s request to convert the program from its sole lien structure to that of a 3-year forgivable loan and deferred loan structure. Over the past three months, NRD staff have worked with The Neighbor Project to identify gaps in the program and additional ways to assist income-eligible Aurora residents in need. The proposed changes do not fit within the Safety First Program’s original scope of services, and therefore, review by the Block Grant Working Committee and City Council is requested.
BACKGROUND:
Recently, Neighborhood Redevelopment Division (NRD) staff and The Neighbor Project have been working on program changes to The Safety First Program to expand the list of eligible activities to further accommodate homeowner needs and to address The Neighbor Project and HUD’s request to convert the program from its sole lien structure to that of a 3-year forgivable loan and deferred loan structure. Over the past three months, NRD staff have worked with The Neighbor Project to identify gaps in the program and additional ways to assist income-eligible Aurora residents in need. The proposed changes do not fit within the Safety First Program’s original scope of services, and therefore, review by the Block Grant Working Committee and City Council is requested.
A summary of the proposed changes to The Neighbor Project’s Safety First Program can be found below:
-Increase the eligible activities to include a larger variety of health and safety issues, emergency repairs, remediation of toxic substances, and other repairs The Neighbor Project has seen trending by homeowners over the past two years. A full list of eligible activities can be found in Exhibit A.
-Allow lead pipe replacement as an eligible activity for qualifying homes with children under the age of 6. Additional CDBG funding in the amount of $50,000 for this activity was previously approved in the 2018 Action Plan (via R19-018), but an additional modification, expected to be presented in 60-90 days, to the Action Plan will be required to transition the funding from the City of Aurora Engineering Department to The Neighbor Project’s Safety First Program. This proposed program modification will qualify the activity’s eligibility and permit the use of existing program funds to support it until the additional dollars specific to lead pipe replacement have been transitioned. This activity will work in part with a partnership with the City of Aurora’s Engineering Department to assist in identifying eligible homes, and The Neighbor Project assisting in meeting the requirements of the Community Development Block Grant program. The proposed policies and procedures can be found as Exhibit B.
-Minor updates to the budget to overhaul the current format and allow all rehabilitation activities to be placed in the same line item, rather than separating each item based upon estimated, rather than actual, activity numbers. This will allow The Neighbor Project greater flexibility to identify eligible repairs and reduce The Neighbor Project’s and NRD’s administration review time and need to approve budget line item transfers. Also, given the changes and to further enhance the revised program’s outreach efforts, slight increases in marketing and administration have been adjusted in the budget, but are well within guidelines established by HUD. The adjusted budget can be found in Exhibit C.
-Adjust program from a deferred loan up to $4,999, to a two-step option of creating three-year forgivable loans for funding up to $4,999, followed by a second deferred loan in the amount of up to $5,000 for activities identified as either a Category A or Category B activities. The Neighbor Project has come across multiple homes that require a larger investment to bring homes up to code for issues such as roof replacements, and this strategy allows for The Neighbor Project to increase the amount of funding per household in certain situations while allowing the City to recapture funds when the home is sold or is no longer the primary residence of the owner.
DISCUSSION:
The NRD, along with The Neighbor Project, are confident these proposed changes will increase the number of households that will be eligible for assistance along with increasing efficiency and flexibility to the program.
At the Block Grant Working Committee's regular meeting on April 3, 2019 (draft minutes attached as Exhibit D), the Committee recommended forwarding the modified Safety First Program Policies to City Council for approval.
IMPACT STATEMENT:
This action will have a positive impact on the City's community development efforts.
RECOMMENDATIONS:
Staff recommends approval for the Program Policy Revisions and Modification One to Agreement CDBG-2017-02 to the Safety First Program currently administered by The Neighbor Project and that the Mayor and Community Development Manager or their designees be authorized to execute any contracts as well as any other documents associated with Modification One to Agreement CDBG-2017-02 to the Safety First Program, including but not limited to HUD's program administration requirements.
cc: Alderman Saville, Chairman
Alderman Jenkins
Alderman Franco
Alderman Donnell, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing Modification One to Community Development Grant Subrecipient Agreement CDBG-2017-02 for The Safety First Program.
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 City of Aurora has initiated numerous community development activities through participation in the U. S. Department of Housing and Urban Development's Community Development Block Grant and HOME Investment Partnership Act Programs; and
WHEREAS, on November 22, 2016 (R16-367) the City of Aurora approved awarding 2017 Community Development Block Grant funds in the amount of $216,285 to The Neighbor Project fka The Joseph Corporation to provide funding for the Safety First housing rehabilitation program; and
WHEREAS, modifications to the Safety First Program’s original scope of services have been proposed; and
WHEREAS, the City of Aurora’s Block Grant Working Committee recommended approval for Modification One to Agreement CDBG-2017-02 to the Safety First Program; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Aurora, Illinois, finds as facts all of the preamble recitals of this Resolution and hereby Authorizes Modification One to Agreement CDBG-2017-02 to the Safety First Program and that the Mayor and Community Development Manager or their designees be authorized to execute any contracts as well as any other documents associated with this Modification, including but not limited to HUD's program administration requirements