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TO: Mayor Thomas J. Weisner
FROM: Chuck Nelson, Director of Neighborhood Standards
DATE: March 15, 2016
SUBJECT:
Requesting approval for the Mayor to sign all documents to participate in and to administer the Blight Reduction Program (BRP) Round 2 through the Illinois Housing Development Authority (IHDA).
PURPOSE:
On February 19, 2016, the City received notification from IHDA that it had been selected to participate in Round 2 of IHDA's Blight Reduction Program and awarded $525,000 in BRP Program funds. The City, together with its two non-profit program partners, Joseph Corporation and Northern Lights Development Corporation, applied for this funding opportunity in September 2015.
To move forward in the program, IHDA has provided a conditional commitment letter (received by the City on March 2, 2016) for signature by the City and its program partners, Joseph Corporation and Northern Lights Development Corporation. The City will also receive and be required to sign a Tri-Party Agreement along with supporting documents within the next few weeks.
The program will provide funding to cover costs related to property acquisition, demolition, and greening of 15 blighted properties that have been identified by the City. Under this program, the City will transfer title of the blighted properties to its non-profit program partners (NFPs) and in turn, the NFPs will demolish and redevelop the properties. As part of the Program requirements, the NFPs will agree to a note for each acquired property (maximum of $35,000 loan for each property). The note will be structured as a zero percent (0%) non-amortizing loan, secured by a recorded lien. The loan will be subject to a 3-year recapture period, during which NFP will agree to repay the loan if a recapture event occurs.
BACKGROUND:
In 2015, the City was awarded $280,000 under Round 1 of the Blight Reduction Program and is currently administering the Program.
Similar to Round 1, Round 2 of th...
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