cover
TO: Mayor Richard C. Irvin
FROM: Chris Ragona, Community Development Manager, Community Development Division
DATE: December 10, 2021
SUBJECT:
A Resolution authorizing approval of Development Agreement HOME-2021-02 and CDBG-2021-13 between the City of Aurora and Visionary Ventures to provide HOME Investment Partnerships (HOME) and Community Development Block Grant (CDBG) funding to develop the properties of 100 Oak Avenue and 631 S. Lake Street for the purpose of providing affordable housing and a public health facility in the amount of $2,900,000 in Home Investment Partnerships Program (HOME) funding and $600,000 in Community Development Block Grant (CDBG) funding.
PURPOSE:
Staff requests authorization of Annual Action Plan Substantial Amendment 2021-#4 to reallocate prior and current year resources for Projects HOME-2021-02 and CDBG-2021-13 - Fox Valley Apartments Development.
BACKGROUND:
The City’s 2021 Annual Action Plan was approved by City Council on February 9, 2021, R21-022. This proposed Substantial Amendment is required by the Department of Housing and Urban Development (HUD) to reallocate prior and current year resources. This proposed Substantial Amendment’s prior and current year resources were previously approved by City Council as follows: November 24, 2015, R15-322; November 22, 2016, R16-367; January 9, 2018, R18-005; January 22, 2019, R19-019, January 28, 2020, April 28, 2020, R20-091; August 11, 2020, R20-162, R20-016; and February 9, 2021, R21-022. In accordance with HUD requirements, a 30-day public comment period was established for 11/24/2021 to 12/27/2021 and a public hearing was held on 12/15/2021. There were not any public comments. (Please see public notice, Exhibit 1 and Public Hearing minutes, Exhibit 2).
DISCUSSION:
Staff requests authorization of Annual Action Plan Substantial Amendment 2021-#4 to provide HOME Investment Partnerships Program (HOME) and Community Development Block Grant (CDBG) program funding for the projects listed below. (Please see Annual Action Plan Substantial Amendment 2021-#4, Exhibit 3). Substantial Amendment 2020-#4 will result in amending the City’s 2016-2021 city funding allocations. A table of the re/allocated funds has been provided below as well as a summary of the proposed activities.
|
Proposed New or Amended HOME Activity |
Recommended Re/Allocation Amount |
Program Year Funding Source |
Original Funding Allocation Amount |
Project Allocation / Reallocation Comments |
|
HOME-2021-02 - Fox Valley Apartments - Development of Affordable Housing at 100 Oak Ave. and 631 S. Lake St. |
$2,900,000 |
HOME funds specifically set aside for affordable housing activities 2016 - $170,806.24 2017 - $441,641.30 2018 - $637,970.05 2019 - $584,817.00 2020 - $603,966.77 2021 - $460,798.64 |
$2,900,000 |
Entitlement funds that have yet to be allocated to an affordable housing activity |
|
CDBG-2021-13 - Fox Valley Apartments - Development of a Public Health Facility at 100 Oak Ave. |
$600,000 |
CDBG-2018-14 & CDBG-2020-08 - $412,000 - Small Business Assistance Program CDBG-2020-CV-03 - $188,000 - Emergency Subsistence Program |
$1,900,000 |
Projects Complete / Unexpended CDBG Funds The projects were funded via CDBG and CDBG-CV funds. The projects’ unexpended CDBG-CV funds will be reprogrammed at a future date. |
|
Estimated Allocation / Reallocation Total |
$3,500,000 |
The activities outlined above must meet HUD's eligibility criteria including income limits or a national objective. Additionally, activities must address the City's 2020-2024 Consolidated Plan’s Goals and Objective.
HOME Funding Recommendations - HOME-2021-02 - Fox Valley Apartments - New Construction of Affordable Housing - 100 Oak Ave. and 631 S. Lake St.
Visionary Ventures is planning to deliver a mix of studio, one, two, and three-bedroom units, totaling 47 units in three buildings, and approximately 5,000 square feet for the construction of a public health facility. The company intends to make use of Federal and historic tax credits to finance this redevelopment in addition to credit allocations that have been conditionally approved by the Illinois Housing Development Authority (IHDA).
Todd School was built in 1934, located northwest of downtown Aurora and sits on 1.12 acres. The currently vacant school will be redeveloped to accommodate 11 units on two stories.
Lincoln School was built in 1892 on the southwest side of Aurora and sits on 2.69 acres. The property will house 36 units including 14 in the existing building and 22 in a newly constructed building.
Affordability is defined by HUD in terms of the percentage of the “median family income” (MFI) within a defined geographic area. Aurora is included in the Chicagoland region to determine affordable rent and income limits.
In general, about 30% of the units (17) to be delivered will be reserved for individuals or families that earn 30% of the median family income ($27,950 for a family of 4) and; about 70% of the units will be rented to individuals or families that earn 60% ($55,920 for a family of 4) of the area median family income. Qualified tenants will earn in the range of $15,900-$63,000 annually.
The range of rents is from about $423 per month to $1,284 per month with an average rent of approximately $968 per month. The rental population will come primarily from existing Aurora residents, with five units designated for tenants that come from the Statewide Referral Network (SRN). SRN units are targeted for households earning at or below thirty percent (30%) of the median income with a head of household who has a disability or illness, including, but not limited to, a physical, developmental substance abuse disorder, HIV / AIDS, or is homeless or at risk of homelessness.
CDBG Revised Funding Recommendations - CDBG-2021-13 - Construction of a Public Health Facility - 100 Oak Ave.
A key element of the development plan includes Visionary Venture’s commitment to construct space for a community-based patient center and not-for-profit healthcare provider medical facility to serve the area by providing affordable healthcare that includes services ranging from vaccinations to general care for children and adults.
IMPACT STATEMENT:
This action will have a positive impact on the City's community development efforts to preserve and provide safe, decent, and sanitary affordable housing and to also provide funding for a public health facility located in a low-moderate income neighborhood.
RECOMMENDATIONS:
Staff recommends approval of the proposed Resolution authorizing Annual Action Plan Substantial Amendment 2021-#4 to reflect funding allocations for the HOME and CDBG Programs for an affordable housing development and a public health facility located at 100 Oak Avenue and 631 S. Lake Street. Staff also requests authorization for the City's Mayor, Chief Community Services Officer, Community Development Manager, or their designees to execute any agreements, contracts and other documents associated with Substantial Amendment 2021-#4 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 approval of Development Agreement HOME-2021-02 and CDBG-2021-13 between the City of Aurora and Visionary Ventures to provide HOME Investment Partnerships (HOME) and Community Development Block Grant (CDBG) funding to develop the properties of 100 Oak Avenue and 631 S. Lake Street for the purpose of providing affordable housing and a public health facility in the amount of $2,900,000 in Home Investment Partnerships Program (HOME) funding and $600,000 in Community Development Block Grant (CDBG) funding.
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, 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 CDBG, HOME, and ESG funding; and
WHEREAS, the City of Aurora’s Block Grant Working Committee recommended
adoption of Annual Action Plan Substantial Amendment 2021-#4 to reflect HOME and CDBG funding reallocations and updates at its December 15, 2021 meeting; and
WHEREAS, Substantial Amendment 2021-#4 will define priorities for community development funding and define obligations to inform the public on the proposed changes; and
WHEREAS, the HOME Investment Partnership Act 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, HOME funding will be available in the 2022 City Budget HOME program account (213-1330-801.XX-XX series);
WHEREAS, CDBG funding will be available in the 2022 City Budget CDBG program account (213-1330-801.43-01);
WHEREAS, the City approved a Development Agreement for a HOME Program loan between the City of Aurora and The Visionary Ventures for the for the purpose of providing affordable housing and a public facility via Resolution Number R22-______ on January ____________, 2022; 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 Development Agreement HOME-2021-02 and CDBG-2021-13 between the City of Aurora and Visionary Ventures to provide HOME Investment Partnerships funding and Community Development Block Grant to develop the properties of 100 Oak Avenue and 631 S. Lake Street for the purpose of providing affordable housing and a public facility in the amount of in the amount of $2,900,000 in HOME funding and $600,000 in CDBG funding totaling $3,500,000; and authorizes the City's Mayor, Chief Community Services Officer, 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.