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HomeMy WebLinkAbout98-30 Resolution No. 98-30 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC. (Revitalization and Redevelopment) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, 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 of Elgin, Inc. , for the revitalization and redevelopment of older neighborhoods under stress, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: February 11, 1998 Adopted: February 11, 1998 Omnibus Vote: Yeas 7 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 /SW day of A'cbruak°y , 1998, by and between the City of Elgin, Illinois, a 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" ) . WHEREAS, the City of Elgin, Illinois, a municipal corporation, (hereinafter referred to as "City" ) is committed to the revitalization and redevelopment of certain areas within the city limits; and WHEREAS, Neighborhood Housing Services of Elgin, Inc. , an Illinois not-for-profit corporation (hereinafter referred to as "NHS" ) is incorporated to provide revitalization assistance to certain areas within the city limits; and WHEREAS, City is committed to the revitalization and strengthening all neighborhoods in Elgin; and WHEREAS, City and NHS wish to work cooperatively to particularly assist older established neighborhoods throughout Elgin under stress . NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 1 . NHS shall actively solicit neighborhood representation on the NHS Board of Directors. 2 . NHS shall work with and support neighborhood organizations . 3 . NHS shall designate reasonably sufficient staffing to develop newsletters, monthly meetings, membership recruitment and leadership development. 4 . City shall pay NHS a total sum of $104,600, in two payments, one of which shall be on or before February 20, 1998 and one of which shall be on or before July 1, 1998 . 5 . NHS shall cooperate with resident police officers and the Department of Code Administration and Neighborhood Affairs in building safe neighborhoods . 6 . NHS shall actively seek to develop minority involvement in NHS activities and in the community. 7 . NHS shall encourage home ownership, the conversion of single-family properties to their original use, and sound property maintenance for the betterment of Elgin's neighborhoods. 8. No real property shall be conveyed by NHS to a third party unless it has been inspected by the Department of Code Administration and Neighborhood Affairs of the City of Elgin within the past thirty (30) days and found to be in compliance with applicable ordinances . In the event that real property is found to be in compliance with the BOCA National Fire Prevention Code 1990 and minimum standards of habitability, such property may be conveyed and occupied if a written schedule of time for completion of all necessary repairs to meet minimum ordinance requirements is filed with City and subscribed by the authorized representative of NHS and the buyer or buyers of such property. 9 . NHS shall submit to City four quarterly performance reports which shall outline NHS' neighborhood organizational efforts and accomplishments as well as housing rehabilitation work, loan production and all other NHS activities . 10 . City shall not be required to make any payment to NHS unless City has been provided with reasonable evidence of compliance with the terms of this agreement by NHS. Such evidence shall include, but not be limited to, receipts and other evidence of expenditures incurred. 11 . Unless otherwise terminated as provided herein, this agreement shall terminate December 31, 1998 . 12 . Either party hereto may terminate this agreement upon thirty (30) days written notice. 13. The terms of this agreement shall be severable. In the event that any of the terms or provisions of this agreement are found to be void or otherwise unenforceable, the remainder of this agreement shall remain in full force and effect. CITY OF ELGIN NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC. B Y ' i � B Y zlB/Z J• ce 41. Parker G. Towe City Manager Board President Attest: Dolonna Mecum, City Clerk -2- • ,4 oF FCC, ¢���n 5,3- s‘., Agenda Item No. (J� City of Elgin January 16, 1998 TO: Mayor and Members of the City Council FROM: Joyce A. Parker, City Manager SUBJECT: 1998 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) : operational support for neighborhood revitalization and multi-family housing conversion efforts . BACKGROUND The 1998 Budget includes $104, 600 to provide operational support for NHS and $386, 160 to replenish the Multi-family Housing Conversion Program (MFC) . NHS is chartered through a national organization, Neighborhood Reinvestment Corporation. The NHS partnership is a structure fostering involvement and cooperation from the community, bringing together citizens, financial institutions and city government. The partnership is evident in the NHS proposed 1998 budget, which supplements City support with leveraging contributions from local banks, grants and other fund raising. NHS Activities NHS operational support was increased beginning in 1996, allowing NHS to provide services city-wide . In previous years, NHS work had been directed to selected target areas . While still focused on older, established neighborhoods, NHS is growing its capability to meet the needs that occur in neighborhoods throughout Elgin. In 1997, five primary program areas were focused upon: - Rehabilitation Loan Portfolio Reaches One Million Dollars. The addition of a lending officer position in 1996 has resulted in an increase in low-interest loans provided to otherwise non-bankable property owners for residential improvements . In 1997, there were 145 loans approved for a total over $1 million, compared to 46 loans for $323, 914 in 1996. The home improvement loans 1998 PSA with NHS January 16, 1998 Page 2 are reviewed in more detail on page 5 of the attached Fourth Quarter, 1997 Report to the Partnership. - Home Improvement Fund. Programs established in 1996 through the City' s $300, 000 capitalization, the Home Improvement Fund, have resulted in an aggressive program of acquiring, rehabilitating, and reselling properties . The City' s $300, 000 capitalization has been leveraged by commitments loans from local area lenders and a grant from the Grand Victoria Foundation. Through the Home Improvement Fund, NHS has been able to undertake 23 property improvement projects . These projects are rehabilitated and re-sold to recapitalize the Home Improvement Fund. Property acquisition criteria focus on neighborhood impact, density reduction, and financial feasibility. In the attached Fourth Quarter, 1997 NHS report, the property acquisition and rehabilitation program is discussed on page 3. A detailed list of the properties acquired and their status is included in that section. - Multi-family Conversion Program Turns 54 Properties Back to Original Single-family Use. Since 1995, the multi-family conversion program, administered by NHS and tow funded by the City of Elgin, has reduced the density of 54 properties with the removal of 58 units . In reviewing the program last summer, the City Council increased funding for these voluntary deconversions by an additional $300, 000 from the allocation anticipated in the adopted Five-Year Financial Plan. Through the first three years of the MFC program, NHS used 11% of the total funds for problem property and strategic location deconversions in which NHS had an ownership interest. The remaining 89% 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 1998 allocation. - Neighborhood Leadership Development and Organizing. The NHS Resident Committee was formed in 1997 to bring together representatives from each neighborhood group to share information, discuss common challenges and explore possible solutions to issues facing our neighborhoods . 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 . The Voice, a 00Pik monthly publication by NHS, is self-sufficient from advertising and is distributed free of charge. Neighborhood Development initiatives are outlined on page 10 of the NHS Fourth Quarter 1997 Report to the Partnership. 1998 PSA with NHS January 16, 1998 tow Page 3 f - Grand Victoria Foundation Corridor Redevelopment Fund. In March of 1997, the Grand Victoria Foundation granted NHS $500, 000 to fund the Corridor Redevelopment Fund. The grant funds will be used to implement a variety of strategies to revitalize the Villa Street and Michigan Triangle corridor. This grant is the single largest grant given by the foundation to date . Neighborhood Housing Services has also purchased and rehabilitated homes which now serve four of the City' s seven resident officers . The City has been working though NHS to identify a location for the ROPE officer previously living in the River Landing (Times Square) Apartments . When a lease is presented to the City Council for this location, an evaluation of the income/expenditures will be presented on all the NHS ROPE sites to update the terms of the lease, if necessary. Attached is a memorandum from NHS Acting Director Angel Rosenthal providing an update on the three Spring Street properties discussed by the City Council in July, 1997 . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED elik The draft agreements were drafted with NHS Acting Director Angel Rosenthal . ALA., FINANCIAL IMPACT Funding in the 1998 budget is located in both the General Fund and the Riverboat Fund. For operational support, there is a total of $104, 600 - $38, 400 from the General Fund Non-departmental, account number 010-6902-719 . 80-16, and $66, 200 in the Riverboat Fund, account number 275-0000-791 . 80-25 . The Multi-family Housing Conversion Program is funded from the Riverboat Fund, account number 275-0000-791 . 92-32, project number 157200, in the amount of $386, 160 . LEGAL IMPACT f' None . ALTERNATIVES Alternatives are to approve the two Purchase of Service Agreements as presented, edit the draft agreements, or decline to provide the support for the programs and activities being supplied by NHS. eft. 1998 PSA with NHS January 16, 1998 Page 4 RECOMMENDATION It is recommended that the City Council approve the Agreements with NHS for operational support and for the Multi-family Conversion Program as part of the City' s plan to address key issues of Safe Neighborhoods and Building a Civic Infrastructure . Respectfully submitted, ) Clay . Pearson, Director Code ministration and Neighborhood Affairs 6iutAhAllyt.z.citt/t../// Chief Charles A. Gruber Pale Department �--- a-4/ J e� 45/. Parker City Manager eilik amp Attachments