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HomeMy WebLinkAbout04-140 Resolution No. 04-140 RESOLUTION AUTHORIZING EXECUTION OF A HOME INVESTMENT PARTNERSHIPS CONSORTIUM AGREEMENT WITH THE COUNTY OF KANE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Ed Schock, Mayor, and Dolonna Mecum, City Clerk,be and are hereby authorized and directed to execute a HOME Investment Partnerships Consortium Agreement on behalf of the City of Elgin with the County of Kane for the 2005 HOME Program Year,a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: May 26, 2004 Adopted: May 26, 2004 Vote: Yeas: 6 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk STATE OF ILLINOIS COUNTY OF KANE RESOLUTION NO. 04 - 06 AUTHORIZING THE CREATION OF A KANE-ELGIN HOME CONSORTIUM AND COMMISSION WHEREAS, the County of Kane and the City of Elgin are Community Development Block Grant (CDBG) Entitlement Communities as designated by the U.S. Department of Housing and Urban Development (HUD); and WHEREAS, the County of Kane and the City of Elgin desire to increase opportunities for home ownership and affordable housing for their residents; and WHEREAS, the County of Kane and the City of Elgin desire to have direct access to HOME Investment Partnerships Program (HOME) funds from HUD, but do not qualify individually; and WHEREAS, the County of Kane and the City of Elgin can have direct access to HOME funds by forming a HOME Consortium; and WHEREAS, HUD requires that a HOME Consortium prepare and submit a single Consolidated Plan to replace the individual Consolidated Plans of each jurisdiction participating in the Consortium; and WHEREAS, the County of Kane and the City of Elgin desire to form a HOME Consortium and apply for HOME funds for 2005; and WHEREAS, the HOME Consortium must be formed during 2004 in order to apply for HOME funds in 2005; and WHEREAS, the City of Elgin and the County of Kane, along with the twenty-two municipalities participating in the Kane County CDBG Program, will benefit from participating in the HOME Investment Partnerships Program; NOW, THEREFORE, BE IT RESOLVED by the Kane County Board that; The Chairman of the Board is hereby authorized to sign a HOME Consortium Agreement and all other documents necessary to form a Kane-Elgin HOME Consortium and apply for HOME funds; and that Kane County will serve as the Consortium's lead agency for the administration of HOME funds, and accepts the responsibilities as such in accordance with Federal statutory and regulatory requirements; and that The County of Kane and the City of Elgin will together prepare one Consolidated Plan as required by HUD for the HOME Consortium; and that Page 2 of 2 Res. No. 04 - 06 The County of Kane and the City of Elgin will share equally in the costs and staff time required for the formation of the HOME Consortium, the preparation of the Consolidated Plan and other administrative activities prior to HOME administration funds being available to pay for such staff time and costs; and BE IT FURTHER RESOLVED that a ten member HOME Commission be established, with five members to be appointed by the Mayor of the City of Elgin and confirmed by the City Council of the City of Elgin, and five members to be appointed by the Chairman of the Kane County Board and confirmed by the Kane County Board. The purpose of such commission shall be to recommend program policies and procedures, to develop and recommend program priorities, to review and prioritize applications for the use of HOME funds with respect to adopted priorities and HUD regulations, and to recommend funding priorities to the Kane County Board. Passed by the Kane County Board on January 13, 2004. lerk, County Board Chair n, County Board Kane County, Illinois Kane County, Illinois Vote: Yes No Voice o Abstentions 6 1 Consortium STATE OF ILLINOIS COUNTY OF KANE DATE 11' 114 ' 0 L4 I,John A. Cunningham,Kane County Clerk and Keeper of the Records in Kane County, Illinois do here• ertify that the attached is a true and correct copy of the original record on file. ----------- Ty•. In witness whereof,I have hereunto set my hand and affixed the O�Q @GA °`•: Seal o - •f.ane at my office in Geneva,Illinois. Alr.: J u A.C • J. nnnin gham,Kane Co/,•'Clerk HOME Investment Partnerships Consortium Agreement THIS AGREEMENT entered into effective as of the 26TH day of MAY 2004, by and between the COUNTY OF KANE, a body politic and corporate of the State of Illinois (the "COUNTY") and the CITY OF ELGIN, an Illinois municipal corporation (the "MUNCICIPALITY"), which are collectively known as the parties. WITNESSETH: WHEREAS, the United States Congress has enacted the Cranston-Gonzalez National Affordable Housing Act ("the Act") providing federal financial assistance for the support of affordable housing as identified in Title II—Investment in Affordable Housing of HOME Investment Partnerships Act; and WHEREAS, the Act makes possible the allocation of funds to the COUNTY for the purpose of undertaking affordable housing activities identified in the Act; and WHEREAS, units of local government have had conferred upon them the following powers by Article VII, Section 10(a) of the 1970 Constitution of the State of Illinois: "Units of local government and school districts may contract or otherwise associate among themselves, with the State, with other states and their units of local government and school districts, and with the United States to obtain or share services and to exercise, combine or transfer any power of function, in any manner not prohibited by law or ordinance. Units of local government and school districts may contract and otherwise associate with individuals, associations, and corporations in any manner not prohibited by law or ordinance. Participating units of government may use their credit, revenues, and other resources to pay costs and to service debt related to intergovernmental activities"; and WHEREAS, the Intergovernmental Cooperation Act, (5 ILCS 220/1 et seq.) Enacted by the State of Illinois provides in part as follows: "Section 3. Intergovernmental Agreements. Any power or powers, privileges or authority exercised or which may be exercised by a public agency of this State may be exercised and enjoyed jointly with any other public agency of this state and jointly with any public agency of any other state or of the United States, to the extent that laws of such other state or of the United States do not prohibit joint exercise or enjoyment. This includes, but is not limited to, arrangements between the Illinois Student Assistance Commission and agencies in other states which issue which issue professional licenses." Section 5. Any one or more public agencies may contract with any one or more other public agencies to perform any governmental service, activity or undertaking which any of the public agencies entering into the contract is authorized by law to perform,provided that such contract shall be authorized by the governing body of each party to the contract. Such contract shall set forth fully the purposes,powers,rights, objectives and responsibilities of the contracting parties." WHEREAS, the parties to this Agreement have had conferred upon them the exercise of powers authorized in Chapter 65 of the Illinois Compiled Statutes (known as the"Illinois Municipal Code"), and Chapter 55 of the Illinois Compiled Statues (known as the"Illinois Counties Code"). NOW, THEREFORE, upon the consideration of the mutual promises contained herein and upon the further consideration of the recitals hereinabove set forth, it is hereby agreed between the COUNTY and the MUNICIPALITIES hereto, as follows: A. That the recitals hereinabove set forth are incorporated herein by reference as if fully set forth herein. B. That the Kane county HOME Investment Partnerships Consortium (the "Consortium") is defined to include as members of the Consortium the COUNTY and the following Municipality which authorize and execute this Agreement: and the City of Elgin, Illinois. C. That the MUNICIPALITY and the COUNTY hereby agree to cooperate undertake and/or to assist in undertaking housing assistance activities in order alleviate housing problems through the HOME Investment Partnerships Program (hereinafter referred to as HOME Program)in cooperation with the Consortium. D. That the MUNICIPALITY hereby authorizes the COUNTY to act in a representative capacity as the lead entity for the members of the Consortium for purposes of the HOME Program. E. That the MUNICIPALITY agrees that the COUNTY will assume overall responsibilities as the lead entity to ensure that the Consortium's HOME Program is carried out in compliance with the requirements of the HOME Program including requirements concerning inclusion of proposed HOME Program activities in the Consortium's Consolidated Plan for Housing and Community Development(ConPlan) in accordance with applicable HUD regulations. It is mutually understood, however, that the COUNTY is responsible for the implementation of the HOME Program and that the MUNICIPALITY remains fully responsible for implementation of any other funding from federal state, or local programs which may be identified in the Consortium's or the MUNICIPALITY's approved ConPlan as it pertains to that MUNICIPALITY'S identified needs and priorities. Notwithstanding the foregoing, in no event may the MUNICIPALITY obstruct implementation of the Consortium's approved ConPlan. F. That the MUNICIPALITY agrees to evidence its consent to participation in the Consortium by providing the COUNTY with two certified copies of a resolution from the governing body of the MUNICIPALITY that the chief elected official of the MUNICIPALITY is authorized to sign this consortium agreement. G. That the signature of said Chief Elected Official will be affixed to this Agreement evidencing the willingness of the MUNICIPALITY to participate in the Consortium, and to cooperate in the implementation of the Kane County Consortium for the HOME Program. H. That the COUNTY agrees to evidence its consent to participation in the Consortium by providing the CITY with(1)two certified copies of a resolution from the governing body of the COUNTY that the chief elected official of the COUNTY is authorized to sign this Consortium Agreement and, (2) an unqualified opinion of its legal counsel acceptable to the MUNICIPALITY concluding that the terms and provisions of this Consortium Agreement are fully authorized under state and local law and that this Consortium Agreement provides full legal authority for the Consortium to undertake or assist in undertaking housing assisting activities for the HOME Program. I. That the signature of said Chief Elected official will be affixed to this Agreement evidencing the willingness of the COUNTY to participate in the Consortium. J. Further, that a copy of this consortium Agreement signed by the Chief Elected Official of the COUNTY will be provided to the MUNICIPALITY. K. That the program year start date for the consortium shall be June 1, 2005, and all units of general local government that are members of the Consortium are on the same program year for the CDBG,HOME, ESG and HOPWA programs. L. That the MUNICIPALITY and COUNTY agree to affirmatively further fair housing. M. That the term of this Agreement is for a period of not less that the period necessary to carry out all activities that will be funded from funds awarded for the Federal Fiscal Years 2005, 2006, and 2007 (commencing June 1, 2005 ending May 31, 2007); that this Agreement remains in effect until the HOME funds from each of Federal Fiscal Years 2005, 2006 and 2007 are closed out pursuant to 24 CFR 92.507; and that none of the signatories to this Agreement may withdraw from the Consortium during the period specified in this paragraph. N. That the parties hereto agree to adopt any amendment to this Agreement incorporating changes necessary to meet the requirements for cooperation agreements set forth in HUD's Consortia Qualification Notice applicable for a subsequent three-year consortia qualification period; that COUNTY shall submit said amendment to HUD as specified in the Consortium Qualification Notice. O. That the parties hereto agree that, in the event that a qualifying municipality other than the above-named MUNICIPALITY decides to join the Consortium, after June 1, 2005, said Municipality shall(1) submit evidence that it qualifies as a Metropolitan City for the purposes of the HOME Program, (2)provide written notice to the parties to this Agreement, and(3) agree to comply with all provisions of this Agreement applicable to municipalities; and in the event all of the parties hereto agree that an amendment to this Agreement should be made to add such additional municipality an amendment to this Agreement may be made by the execution of a written amendment to this Agreement by Kane County, the City of Elgin and the municipality seeking to be included into this Consortium Agreement. P. That the parties hereto agree that this Agreement which may be executed in one or more counterparts, each of which shall, for all purposes,be deemed an original and all of such counterparts, taken together, shall constitute one and the same Agreement. IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be executed by their duly designated Officials. COUNTY OF KANE, a bod politic in the State of Illinois By: Date: ›'.."'2"41-Y� Micha W. McCoy, Ch irman, ounty Board CITY OF ELGIN, a municipal corporation y By: e J . Date: Ed Schock, ayor Attest: VO-0_,LAL Loni Mec9i, City Clerk 44f , Ck e w r OF >" Agenda Item No. City of Elgin r E May 21, 2004 J N TO: Mayor and Members of the City Council NEIGHBORHOOD VITALITY FROM: David M. Dorgan, City Manager Amy Coyne, CDBG Program Coor inator SUBJECT: HOME Cooperation Agreement between the City of Elgin and Kane County PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information regarding the HOME Cooperation Agreement between the City of Elgin and Kane County. The City of Elgin has the opportunity to enter into a HOME Consortium with Kane County for the 2005 HOME Program Year. RECOMMENTATION It is recommended that the City Council approve the execution of the HOME Cooperation Agreement. BACKGROUND On January 14, 2004, the Mayor and City Council authorized staff to proceed in forming a HOME Consortium with Kane County. By forming a HOME Consortium, the City along with Kane County would receive additional funding from the U.S. Department of Housing and Urban Development for projects targeted for homeowner rehabilitation, homebuyer assistance, the development of affordable housing (new construction or acquisition), and tenant based rental assistance. During this time period staff along with Kane County has been working on the logistics of the program. Several areas of concern have risen that have raised questions from staff about forming a HOME Consortium with Kane County. The following are the areas of concern; 1. Lead Agency: As a program requirement the City and Kane County have to appoint a lead agency for the consortium. City staff along with Kane County decided Kane County would be the most logical choice. Therefore, the County Board would have final approval of funded projects. I HOME Program May 21, 2004 Page 2 2. HOME Cooperation Agreement: The execution of the agreement would enter the City and Kane County into a three year commitment. At no time can the City or Kane County dissolve the agreement. The City and/or Kane County would have to wait until the agreement expires to exit the partnership. 3. Consolidate Plan: The City and Kane County would have one five year Consolidated Plan encompassing the entire Kane County region. The plan would lay out the priorities for the region and establish what projects would be eligible for funding. The concern from staff involves the creation of additional affordable housing units. City staff would like to see funding in our area go to maintaining the existing affordable housing through rehabilitation. Rehabilitation of single/multifamily housing has been the number one priority in the City's current five year Consolidated Plan. 4. HOME Commission: The HOME Commission would be comprised of ten members, five from the City and five from Kane County. The City would adopt by resolution who they elect to represent the City and like wise for Kane County. The Mayor and City Council would submit the five commission members to the County Board Chairman and the final appointment of the ten person County HOME Commission will be by action of elift* the County Board. By executing this HOME Cooperation Agreement, the City of Elgin will be contracting our authority to the Kane County Board to make final decisions on projects suitable for funding within the City of Elgin. However, the following are additional assurances that will benefit the City on projects that are ultimately approved by the County; 1. Local Control: The control of how HOME dollars are spent would now go through the Kane County Consortium. The State would no longer have control over how much funding will go to this area or what projects will be funded. As it stands now, the State can chose to allocate zero HOME dollars each year or chose to fund projects that are not consistent with our local priorities. 2. Affordable Housing: Recently, the State of Illinois issued a new law which requires counties and municipalities with less than 10% affordable housing to develop and initiate a Housing Strategy Plan. The City of Elgin is not on the watch list; over 10% of the housing stock is affordable. Kane County has a number of municipalities that are on the watch list. The planning process will show Elgin has the highest concentration of affordable housing. Therefore, the priorities identified during the planning process will target these areas for additional affordable housing units. r .. r. HOME Program May 21, 2004 Page 3 3. HOME Cooperation Agreement: If during the three year commitment, the City feels that the County is not working to ensure the needs of the residents, the City can choose to opt out after the third year. If in fact this does happen, the City will take their share of the money ($381,000) from the consortium, making the County ineligible to receive HOME funding in the future. Knowing this, it is in the County's best interest to form a true working relationship with the City. 4. Consolidated Plan/HOME Commission: The City along with Kane County will be reviewing the draft plans before the final one is adopted by the County Board. At no time can the County Board approve funding for projects that do not reflect the priorities identified in the five year Consolidated Plan. The HOME Commission will consist of 10 members, five from the City and five from Kane County. The commission will be responsible for setting program policies, reviewing applications, and making recommendations to the Development Committee. The City will have equal representation on this commission. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED r Mark VanKerkhoff, Kane County Scott Berger,Kane County Drilik.FINANCIAL IMPACT Initially, the HOME Consortium is a three year commitment. The annual allocation for the City and County will be $381,000 and $374,000 respectively. The total amount of HOME funding will be $750,000; of which 10% can be used for administering the program. Since Kane County will be the lead agency, they will be responsible for all auditing, monitoring, and Federal regulation requirements and will utilize the 10% allocation. The City and Kane County will have some shared costs prior to HUD's approval of the HOME Consortium. For example, the City and County will share costs associated with the completion of the Five Year consolidated Plan. Please refer to the COW memo regarding the consultant contract for the Five Year Consolidated Plan. 091/ LEGAL IMPACT The agreement would provide Kane County as the lead agency with the final authority to approve the funding of projects including proposed projects within the city. rib' HOME Program May 21, 2004 Page 4 ALTERNATIVES 1. Do not approve the execution of the HOME Consortium Agreement at this time. 2. Approve the execution of the HOME Consortium Agreement. Respectfully submitted for Council consideration. AC Attachment rok r