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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 Association for Individual Development (AID) to Modify Loan Terms for Project HOME-2013-02.
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, all of which required 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:
City of Aurora Agreement HOME-2013-02 was adopted by Resolution R14-316 on December 9, 2014, in the amount of $67,378 for the acquisition and rehabilitation of 843-845 Bowditch Aurora, Illinois 60506.
In many properties invested with HOME funds, affordability periods longer than the HUD requirement were placed on projects. This creates additional long term monitoring requirements as well as additional risk to the City if these developments underperform or fail to meet the requirements of the HOME program.
In an effort to reduce the risk and additional monitoring burden by Aurora, Community Development staff is actively reviewing the affordability periods of the City's portfolio while still maintaining and preserving affordable housing. This can be accomplished in a number of ways depending on the partner agency, types of other funds invested, and revised language of the agreement, mortgage, note, and land use restriction agreement. For this project, staff ...
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