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TO: Mayor Thomas J. Weisner
FROM: Daniel Barreiro, Chief Community Services Officer
DATE: October 18, 2016
SUBJECT:
Resolution Authorizing an Amendment to the 2010 Annual Action Plan for the Community Development Block Grant (CDBG) Fox Valley Habitat for Humanity Land Acquisition Project.
PURPOSE:
Amendment to the 2010 Annual Action Plan for the 2010 CDBG Fox Valley Habitat for Humanity Land Acquisition Project.
BACKGROUND:
The CDBG funding for this project is an Amendment to the 2010 Annual Action Plan for the CDBG Fox Valley Habitat for Humanity Land Acquisition Project.
DISCUSSION:
The City approved funding for the 2010 CDBG Fox Valley Habitat for Humanity Land Acquisition Project on July 13, 2010 via R10-237 (please see Attachment 3). At that time, funds in the amount of $75,248.97 were granted to Fox Valley Habitat for Humanity (FVHFH) to acquire property to provide homeownership opportunities for income-qualified households. Under this 2010 acquisition activity, funds were used to purchase land at the corner of Solfisburg Avenue and Beckwith Street and FVHFH was expected to have constructed five houses in order to provide home ownership opportunities for low to moderate income households. Since 2010, only one of the five homes has been constructed and occupied. As a result, HUD has deemed the project as incomplete as per its period of performance expectations (5-year term, expiration date: August 3, 2015; five low to moderate income owner-occupied houses).
Given the circumstances of the project's incomplete status, Staff consulted with HUD and FVHFH throughout this past year as to next steps. Due to the project's incomplete status, HUD advised the City that funds must be repaid at a prorated amount as per the unbuilt homes. FVHFH determined that while it currently had the capacity (staff, volunteer and funding) to construct an additional home within a 9-month timeframe, FVHFH was unable to commit to a completion date for the three remaining homes. In response to HUD's directive, FVHFH asked HUD/the City to consider reducing the amount owed by allowing the construction of the additional house for which FVHFH has secured funding. HUD was amenable to this request.
In August 2016, FVHFH provided repayment in the amount of $45,149.37 to account for the three unbuilt houses. This amount has been returned to the City's CDBG line of credit with HUD. This de-obligation of funds has resulted in an amended project amount of $30,099.60 (which was previously paid), reflecting the revised amount for the completed house and the future house's construction.
To move the project forward, HUD further advised that any amendments to the original scope of work must be approved via an Amendment to the City's Annual Action Plan.
An Amendment to the FVHFH 2010 CDBG project (please see Attachment 1) was presented to the Block Grant Working Committee for approval on September 7, 2016. City staff, upon recommendation from the Block Grant Working Committee, are seeking approval from the City Council for to amend the project's performance requirements. The 2010 FVHFH project’s scope of work and change in beneficiaries that is requested under this proposed Amendment will ensure the fulfillment of the activity’s National Objective: to benefit low to moderate-income persons, and in doing so, complete the project. Under the proposed Amendment, the project's completion will show the construction of two homes and benefit to two income-eligible homeowners.
The City’s Citizen Participation Plan, requires that a notice be placed in a local newspaper of record (please see Attachment 2) to establish a 30-day public comment period. The notice was published on October 9, 2016 opening the public comment period which will end on November 8, 2016 at which time the Amendment will be brought to the City Council for approval.
IMPACT STATEMENT:
No additional staff or equipment resources will be required for this request.
RECOMMENDATIONS:
Staff recommends approval of Resolution Authorizing an Amendment to the 2010 Annual Action Plan for the 2010 Community Development Block Grant (CDBG) Fox Valley Habitat for Humanity Land Acquisition Project and to authorize the Mayor, Chief Community Services Officer or their designee are authorized to execute contracts and documents associated with this Amendment.
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Authorizing an Amendment to the 2010 Annual Action Plan for the Community Development Block Grant (CDBG) Fox Valley Habitat for Humanity Land Acquisition Project.
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 and housing activities through funding by the U. S. Department of Housing and Urban Development (HUD); 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 CDBG funding; and
WHEREAS, priority projects have been identified and are ready to use the funds thereby assuring that the City of Aurora have timely use of funds; and
WHEREAS, the City of Aurora and Fox Valley Habitat for Humanity executed a Subrecipient Agreement on August 3, 2010 for the CDBG Land Acquisition Project;
WHEREAS, Fox Valley Habitat for Humanity's 2010 CDBG allocation was to be used towards the acquisition of land located at Solfisburg Avenue and Beckwith Street in Aurora, Illinois and to result in the development of five homes for low to moderate income households; and
WHEREAS, the timeframe in which to complete the project has expired and Fox Valley Habitat for Humanity has requested an amendment to the CDBG project performance measures; and
WHEREAS, HUD has advised the City that Fox Valley Habitat's for Humanity's 2010 performance requirements may be amended to allow for the completion of the second home to fully achieve the CDBG National Objective of Low to Moderate Income Benefit; and
WHEREAS, Fox Valley Habitat for Humanity has requested that the project be modified from the construction of five houses to two houses; and
WHEREAS, Fox Valley Habitat for Humanity has repaid the City of Aurora $45,149.37 to compensate for the original intended but currently unbuilt three houses on the property; and
WHEREAS, the City of Aurora’s Block Grant Working Committee recommended an Amendment to the 2010 Annual Action Plan to modify Fox Valley Habitat for Humanity's 2010 scope of work and beneficiaries at its meeting on September 7, 2016 meeting; and
WHEREAS, the recommended Amendment will de-obligate $45,149.37 from the original project amount and revise the allocation amount from $75,248.97 to $30,099.60; and
WHEREAS, the revised allocation amount of $30,099.60 reflects funding that has been paid previously to Fox Valley Habitat for Humanity and additional funds will not be allocated to this project;
WHEREAS, the recommended Amendment will allow for the Fox Valley Habitat for Humanity Land Acquisition Project to be deemed complete upon the construction and income-eligible owner occupancy of 1557 Solfisburg Avenue; and
WHEREAS, the City of Aurora and Fox Valley Habitat for Humanity desire to execute a new Subrecipient Agreement to complete the project which will result in fulfilling HUD's National Objective Low to Moderate Income benefit requirements; and
WHEREAS, the de-obligated funds shall be reprogrammed and that future project which use the reallocated funds will require City Council approval; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: authorizes an Amendment to the 2010 Annual Action Plan for the 2010 Community Development Block Grant (CDBG) Fox Valley Habitat for Humanity Land Acquisition Project and that the Mayor, Chief Community Services Officer or their designee are authorized to execute the CDBG subrecipient agreement with Fox Valley Habitat for Humanity and any other documents associated with this Amendment, including but not limited to HUD's program administration requirements.