HomeMy WebLinkAbout09-224 • •
Resolution No. 09-224
RESOLUTION
ADOPTING THE OVERHEAD SEWER AND BACKWATER
VALVE ASSISTANCE PROGRAM
BE IT RESOLVED BY THE CITY COUNCIL OF TI IE CITY OF ELGIN,ILLINOIS,that it
hereby adopts the Overhead Sewer and Backwater Valve Assistance Program dated October 2009 to
provide funding to residents to help defray the costs incurred for the installation of overhead sewers
or backup valves, a copy of which is attached.
s/ Ed Schock
Ed Schock, Mayor
Presented: October 14, 2009
Adopted: October 14, 2009
Vote: Yeas: 7 Nays: 0
Attest:
s/ Diane Robertson
Diane Robertson, City Clerk
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OVERHEAD SEWER AND BACKWATER VALVE ASSISTANCE PROGRAM
I. Eligible Properties
II. Application Process
III. Financing Mechanisms
I. ELIGIBLE PROPERTIES
To be eligible for this program, residents MUST own and reside on a property serviced by a
combined sewer system. The City of Elgin will determine if this criterion has been met.
Additionally, since the program is directed to meet the needs of those most affected by combined
sewer backups, residents that provide evidence of past backups by November 30, 2009 will be
given priority. Appropriate evidence includes, but is not limited to:
• Photographs;
• Insurance claims;
• Receipt from cleaning service; or,
• Based on location and confirmed through meeting with City representative.
After the initial priority deadline, all applications received will be considered on a first-come,
first-serve basis until funds are exhausted for that program year. Grant applications in subsequent
years of the program will be considered on a first-come, first-serve basis.
II. APPLICATION PROCESS
1. Contact licensed plumbers to discuss best option for property.
2. Obtain at least two (2) written quotes
3. Fill out and submit application.
4. Receive approval from City for project in the form of an agreement. To be eligible for
the funding the resident must enter into a written agreement in a form approved by the
Corporation Counsel. The Community Development Director is authorized to execute
such an agreement on behalf of the City.
5. Complete work.
6. Submit invoice from completed work for payment. Once the invoice is processed, the
City will provide a check to the contractor for payment of work completed.
Attach supporting documentation to the application form including the following:
• Verification of Property Ownership including the following:
o Property Warranty Deed
o Most recent Property Tax Form
o Land Contract registered with the County
• Two detailed cost estimates provided by licensed contractors.
• Photographs of existing conditions.
Additionally, eligible program participants must:
• Obtain all required permits prior to beginning any work.
• Comply with all applicable building codes.
• Have all repairs inspected by City Building Inspectors.
Those residents who do not comply with the above criteria may be subject to a denial of
application or withdrawal of funding.
III. FINANCING MECHANISMS
As this program has limited funding, funds will be allocated based on eligibility during the initial
priority period (discussed herein) and then on a first-come, first-serve basis. The financing
structure is as follows:
Option 1: OVERHEAD SEWER Installation
• City provides funding for 100% of cost (up to $10,000) to property owner.
— 50% (up to $5,000) as a grant.
— 50% (up to $5,000) as 5-yr loan
• To encourage quicker repayment the Is' year of the loan will be interest
free.
• After the first year interest will be charged on any remaining balance on
the loan and such interest rate will be set by the "Bond Buyer 20-Bond
Index" rate.
• Loan repayments incorporated in water and sewer bill.
Option 2: BACKWATER VALVE Installation
• City provides funding for 100% of cost (up to $2,000) to property owner.
— 50% (up to $1,000) as a grant
— 50% (up to $1,000) as a 5-yr loan
• To encourage quicker repayment the PI year of the loan will be interest
free.
• After the first year interest will be charged on any remaining balance on
the loan and such interest rate will be set by the "Bond Buyer 20-Bond
Index" rate.
• Loan repayments incorporated in water and sewer bill.
On receipt of the application form, the property and proposed work will be evaluated by City
staff.
Please note that grant funds received are considered taxable income and the grant recipient
will receive a 1099G Form.
IV. Funding for Program. Notwithstanding anything to the contrary contained herein, the
City Council of the City of Elgin expressly reserves the right and option to decide anytime
whether or not to provide continued or additional funding for this program. The creation or
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existence of this program shall not be construed to create or provide any vested rights in any
person or organization to obtain approval of a program application, and/or to obtain approval of a
program agreement.
Low Income Households
Those households that meet the Department of Housing and Urban Development's (HUD) low,
extremely low or very low income thresholds for Kane County are eligible for increased funding
(see Table below). The low income funding structure remains the same but the percentages are
changed.
If low income threshold met:
• 75% of chosen option cost will be granted to resident.
• 25% of chosen option cost will be loaned.
• Same repayment structure as above.
Low Income Eligibility:
1. The property owner's household must meet the current low and moderate income
guidelines set by the United States Department of Housing and Urban Development. For
household sizes between 1 and 8, the low to moderate income guidelines are as follows
(current as of February 13, 2009):
Household Size 1 2 3 4 5 6 7 8
Low Income 26,400 30,150 33,950 37,700 40,700 43,750 46,750 49,750
Moderate Income 42,200 48,250 54,250 60,300 65,100 69,950 74,750 79,600
Additional Information
Call the City of Elgin, Planning and Neighborhood Services Department at 847-931-5910 for
information.
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