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TO: Mayor Thomas J. Weisner
FROM: Jim Pilmer, Director of Neighborhood Standards
DATE: June 15, 2015
SUBJECT:
Requesting approval for the Mayor to sign all documents to participate in the Blight Reduction Program (BRP) through the Illinois Housing Development Authority (IHDA). IHDA has requested a final grant agreement (a copy of which was only received, June 15th at 4:42pm via email) to be approved by Illinois Units of Government wishing to participate in this program by June 30, 2015. Staff has requested a 15-day extension, which looks to be possible, so that the City Council approval to accept the grant funds can be up for final consideration at the 7/14/15 City Council meeting and documents can be signed by the Mayor and forwarded to IHDA the next day.
PURPOSE:
The City has received a $280,000.00 grant from IHDA for participation in their Blight Reduction Program. The City together with Fox Valley Habitat for Humanity (HFH) applied for this grant in December 2014.
IHDA had previously provided a conditional commitment letter for signature by both the City and Fox Valley Habitat for Humanity but the final grant agreement and supporting documents must also be provided to the State by the end of the month.
Essentially, the program will provide funding to cover costs related to property acquisition, demolition, and greening of eight blighted properties that have been identified by the City. Under this program, the City would transfer title of the blighted properties to HFH and in turn, HFH would demolish and redevelop the properties. HFH would agree to a note for each acquired property (maximum of $35,000.00 loan for each property). The note would be structured as a zero percent (0%) non-amortizing loan, secured by a recorded lien. The loan would be subject to a 3-year recapture period, during which HFH would agree to repay the loan if a recapture event occurs.
BACKGROUND:
The City is currently participating in a Blight Reducti...
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