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HomeMy WebLinkAbout97-30 Resolution No. 97-30 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH NEIGHBORHOOD HOUSING SERVICES FOR MULTIFAMILY CONVERSIONS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Robert O. Malm, Interim City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute a purchase of service agreement on behalf of the City of Elgin with Neighborhood Housing Services to provide for property conversion to certain areas within the city limits, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: January 22, 1997 Adopted: January 22, 1997 Omnibus Vote: Yeas 6 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk PURCHASE OF SERVICE AGREEMENT BETWEEN NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC. AND THE CITY OF ELGIN THIS AGREEMENT is made and entered into this 317L9 day of f`ER 1 , 1997, by and between the City of Elgin, Illinois, an Illinois municipal corporation, (hereinafter referred to as "City" ) and Neighborhood Housing Services of Elgin, Inc. , an Illinois not-for-profit corporation (hereinafter referred to as "NHS" ) ; and WHEREAS, City has determined that it is in the best interests of City and its citizens to promote and facilitate the conversion of lawful nonconforming multifamily residential properties to single family use; and WHEREAS, NHS has successfully provided redevelopment services and administration in the Elgin, Illinois area and is familiar with and otherwise experienced in the historical, geographic and architectural attributes of the City of Elgin and surrounding area. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows : 1 . On or before June 30, 1997, City shall pay to NHS the sum of Two Hundred Thousand Dollars ($200,000 . 00) . 2 . NHS shall directly and solely utilize the aforementioned $200,000 . 00 as and for direct payments to property owners of lawful nonconforming residential conversion properties located within the corporate boundaries of the City of Elgin, Illinois, pursuant to the terms and conditions provided herein. A minimum of $100,000 . 00 of the $200,000 . 00 is for projects not submitted by NHS. 3. The terms, conditions and criteria by which recipients of the aforementioned payments to property owners shall be selected and governed shall be pursuant to the terms of the Multifamily Conversion Program, which is attached hereto and made a part hereof as Exhibit "A" . City may amend the terms and provisions of the Multifamily Conversion Program from time to time in its sole discretion by providing written notice of such amendments to NHS. 4 . NHS shall hold harmless and indemnify City from and against any and all claims for damages, lawsuits, causes of action or any and all other liability which may arise out of or in connection with NHS' negligent performance of the terms of this agreement, specifically including, but not limited to, failure to adhere to the provisions of the Multifamily Conversion Program. • . 5. This agreement shall be effective January 1, 1997 and shall terminate December 31, 1997 unless otherwise terminated as provided herein. 6 . This agreement may be terminated by City upon fifteen ( 15) days written notice to NHS for any reason. 7 . Upon termination of this agreement, NHS shall return any funds provided by City pursuant to this agreement, which have not been expended directly to property owners pursuant to this agreement, to City within thirty (30) days of termination. NHS shall not expend any funds acquired from City pursuant to this agreement upon receiving notice of termination. 8. NHS shall provide a detailed written report of all expenditures of funds made pursuant to this agreement to City after July 1, 1997, and before December 31, 1997, which report shall include but not be limited to properties converted, amounts paid and selection criteria used. 9 . The terms and provisions of this agreement shall be severable. In the event that any portion of this agreement is deemed to be void or otherwise unenforceable for any reason, the remainder of this agreement shall remain in full force and effect. 10. This agreement shall be subject to and governed by the laws of the State of Illinois . 11. This agreement represents the entire agreement between the parties hereto. No other oral or written agreements currently exist which shall modify or supersede the terms of this agreement. C OF LGIN i --/w4L By t t / °o•ert O. Malm Interim City Manager Attest: Dolonna Mecum City Clerk NEIt .BORHOOD HOUSING SERVICES OF E IN, IN . / By ' I/ 1 [� Denise H rding , •p i Board President -2- EXHIBIT A MULTIFAMILY CONVERSION PROGRAM 1 . "Lawful Nonconforming Residential Conversion" shall mean a residential structure to which additional dwelling units were constructed consistent with the provisions of the then applicable zoning ordinance. 2 . Program shall operate under established objective criteria with respect to selection of participating properties . 3. Program expenditures shall be limited to construction items required to convert a residential structure to single family residential use. 4 . All work performed under program shall be performed in compliance with all applicable city codes and ordinances specifically including but not limited to approved final inspection. 5 . Program shall provide a maximum of $12,000 in financial assistance per dwelling unit. 6 . All recipients of funds pursuant to this Multifamily Conversion Program shall be required by NHS to enter into an agreement which shall specifically require that such recipient shall not participate, either directly or indirectly in the Elgin Residential Rehabilitation Grant Program or any other federally funded housing rehabilitation program for one year from the date the conversion permit is issued, and shall not sell or otherwise convey their interest in the subject property prior to completion of their participation in the Multifamily Conversion Program. Such agreement shall further require compliance with all other provisions of the Multifamily Conversion Program, and shall provide that such recipient shall indemnify, reimburse and hold harmless the City of Elgin, Illinois from and against any claims for damages, causes of action, lawsuits, and any and all other liability which may arise out of or in connection with said recipient' s breach of the terms of the aforementioned agreement or other negligent or reckless acts . -3- • • vA O`E(C City of Elgin Agenda Item No January 2, 1997 TO: Mayor and Members of the City Council FROM: Robert 0. Maim, Interim City Manager SUBJECT: 1997 Purchase of Service Agreements with Neighborhood Housing Services of Elgin PURPOSE The purpose of this memorandum is to provide information to the Mayor and members of the City Council to consider two Purchase of Service Agreements with Neighborhood Housing Services of Elgin, Inc. (NHS) ; for neighborhood revitalization and multi-family housing conversion efforts. BACKGROUND embk The 1997 Budget includes $100,300 to provide operational support for NHS and $200,000 to replenish the Multi-family Housing Conversion Program (MFC) . NHS is chartered through a national organization. The NHS partnership is a structure fostering involvement and cooperation from the community, bringing together citizens, financial institution representatives and city officials . The cooperation is evident in the NHS proposed 1997 budget, which supplements City support with leveraging contributions from local banks, grants and other fund raising. • NHS Success NHS operational support was increased in 1996 to $97,300, allowing NHS to provide services city-wide for the first time. In previous years, NHS work had been directed to selected target areas. While focused on older, established neighborhoods, NHS is growing its capability to meet the needs that occur in similar neighborhoods throughout Elgin. The initial year as a city-wide assistance program began with relocation into new offices (a former six-unit apartment building badly needing reinvestment) at 300 Douglas Avenue. In 1996, four primary program areas were focused upon: eft- PSA with NHS January 2, 1996 Page 2 fek - Rehabilitation Loans Nears a Half-million Dollar Invest- ment. The addition of a lending officer position result- ed in an increase in low interest loans provided otherwise non-bankable property owners for residential improvements. In 1996, there were 46 loans approved for a total of $323,914; compared to 18 loans for $70,900 in 1995. The home improvement loans are reviewed in more detail on pages 8-9 of the attached Fourth Quarter, 1996 Report to the Partnership with a map showing distribution of loans on page 16 of the same report. - Spring Street Redevelopment Corridor Caps Initiative of City-funded Home Improvement Fund. One of the largest impacts of 1996 was an aggressive program of acquiring, rehabilitating, and reselling properties. ' Through the $300,000 capitalization provided by the City of Elgin in mid-1996, coupled with other sources of capital and partnerships, NHS was able to undertake 17 property improvement projects. Most of the projects are in the final stages of redevelopment and will be sold in 1997 to recapitalize the Home Improvement Fund. NHS was able to acquire and rehabilitate four properties in the area of Spring and Ann Streets, changing former gang member-occupied units into attractive homes. In the rh. attached Fourth Quarter, 1996 NHS report, the property acquisition and rehabilitation program is discussed on pages 2-6 . A detail of the properties acquired and status is included in that section. - Multi-family Conversion Program Turns 19 Properties Back to Original Single-family Use. In two years, the multi- family conversion program, administered by NHS and funded by the City of Elgin, has reduced density of 19 properties with the removal of 28 units. In reviewing the program last summer, the City Council increased funding for these voluntary deconversions by another $50,000 from the allocation anticipated in the adopted Five-Year Financial Plan. The additional funding was designated specifically for project applications not submitted by Neighborhood Housing Services. Through the first two years of the MFC program, NHS used one-fifth of the total funds for problem property and strategic location deconversions in which NHS had an ownership interest. The remaining 80% of the funds went to private voluntary conversion. All funds provided to the program to date have been obligated and applications are on hand to make use of the 1997 allocation. A separate performance report on the Multi-family Conversion program is attached. A table on page two of that report specifies each address and status of the conversion. tow PSA with NHS January 2, 1996 Page 3 (wk. - Neighborhood Leadership Development and Organizing Focuses on Communication. NHS launched a neighborhood newspaper, The Voice. Produced monthly, the publication is nearly self-sufficient from advertising and is distributed free of charge. The medium provides an opportunity for organized neighborhood groups to provide information about programs and activities in one central- ized clearinghouse. Other neighborhood organizing initiatives focused on the near northeast neighborhood, where Vecinos Unidos and NHS have coordinated special events to build a sense of community. NHS community organizing and activities are closely coordinated with the Elgin Police Department ROPE officers and other City departments . Neighborhood Development is outlined on page 14 of the NHS Fourth Quarter, 1996 Report to the Partnership. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED The NHS Board of Directors. FINANCIAL IMPACT Funding in the 1997 budget is from the General Fund and the few Riverboat Fund. For operational support, there is a total of $100,300 - $37,300 from the General Fund Non-departmental (010-6902-719 .80-16) and $63,000 in the Riverboat Fund (275-0000-791.80-25) . The Multi-family Housing Conversion Program is funded by $200,000 from the Riverboat Fund (275-0000-791 .92-32, project 157200) . LEGAL IMPACT None. ALTERNATIVES Alternatives are to approve the two Purchase of Service Agreements *as presented, edit the PSAs, or decline to provide the support for the programs and activities being supplied by NHS. evb- PSA with NHS January 2, 1996 Page 4 RECOMMENDATION It is recommended that the City Council approve the PSAs with NHS for operational support and for the Multi-family Conver- sion Program as part of the City's plan to address key issues of Safe Neighborhoods and Building a Civic Infrastructure. Respectfully submitted, • C4JL on Director of Code Administration and hbo hood Affairs Rober 0 Mal Interim City Manager amp Attachments fek