HomeMy WebLinkAbout19-110-6 Resolution No. 19-110—
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9-110— {o
RESOLUTION
APPROVING THE 2019 ANNUAL ACTION PLAN, AUTHORIZING THE EXECUTION OF
DOCUMENTS NECESSARY TO PARTICIPATE IN THE COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM,AND AUTHORIZING EXECUTION OF AN AMENDMENT
TO CDBG PROGRAM MANAGEMENT INTERGOVERNMENTAL AGREEMENT WITH
KANE COUNTY FOR PROGRAM MANAGEMENT SERVICES REGARDING THE
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND THE
NEIGHBORHOOD STABILIZATION PROGRAM
WHEREAS, Title I of the Housing and Community Development Act of 1974 provides
Community Development Block Grant (CDBG) funding to units of local government for the
purpose of developing viable urban communities by providing decent housing, a suitable living
environment, and by expanding economic opportunities; and
WHEREAS, the CDBG Program is funded by the U.S. Department of Housing and Urban
Development(HUD)and is to be implemented in a manner consistent with priorities and strategies
identified in a Housing and Community Development Consolidated Plan; and
WHEREAS, such a plan, covering a five-year period including Program Years 2015
through 2019,was prepared and made available for public comment as required by the Kane-Elgin
Consortium's Citizen Participation Plan; and
WHEREAS, it is necessary to approve an Annual Action Plan for Program Year 2019 in
order for the City to qualify for an annual allocation of CDBG funds from HUD; and
WHEREAS, it is desirable to amend an intergovernmental agreement with Kane County
to provide for the proper administration and management of the City's CDBG Program (and
Neighborhood Stabilization Program) during Program Year 2019.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ELGIN, ILLINOIS:
Section 1. That the 2019 Annual Action Plan,including the activities listed below, is hereby
approved: S
1.. Southeast Area Street Improvements
The City will resurface streets, make accessibility improvements to sidewalks, and correct
minor drainage and sewer deficiencies in the Gifford Park-Southeast .Area neighborhood.
CDBG Funding: $450,000.00
Agency: City of Elgin Engineering Division
2. Roof Replacement
Senior Services Associates will replace the roof on their office building in downtown Elgin.
The agency delivers an array of social services to area seniors from the facility.
CDBG Funding: $11,907.00
Agency: Senior Services Associates
3. Elgin Community Support Team
Association for Individual Development (AID) will provide intensive wrap-around
services to individuals with significant mental health challenges. This program is delivered
in collaboration with the Elgin Police Department to specifically serve individuals who are
homeless or at-risk of homelessness.
CDBG Funding: $23,020.00
Agency: Association for Individual Development
4. Homeless Outreach and Engagement
Ecker Center will provide case management services to homeless adults identified through
Elgin's FUSE initiative and other means. Services will include the collection of identifying
information, assessment of mental status, treatment planning, case
management/community support services, crisis services, and referrals for
alcohol/substance abuse treatment.
CDBG Funding: $18,391.00
Agency: Ecker Center for Mental Health
5. Day Shelter Services
PADS of Elgin will provide daytime shelter services for homeless individuals, Monday
through Friday, 9 am to 4 pm. This service will complement their existing overnight
emergency shelter.
CDBG Funding: $31,000.00
Agency: PADS of Elgin
6. Affordable Housing Fund
The Affordable Housing Fund(AHF)will leverage multiple funding sources to support the
preservation and creation of affordable housing for households with incomes at or below
80% of the area median income ($71,300 for a family of four). CDBG funds will be used
to provide gap financing for the development of affordable rental and/or home-ownership
projects funding for affordable housing activities within the City of Elgin.
CDBG Funding: $263,892.00
Agency: Kane County Office of Community Reinvestment
7. Program Administration
CDBG funds will be used to cover costs associated with the administration of the CDBG
program, and expenses associated with administration of the Continuum of Care, which
facilitates the award of state and federal funding to Elgin agencies that serve the homeless
population. Lastly, funds will also cover the cost of completing the 2020 to 2024
Consolidated Plan.
CDBG Funding: $148,950.00
Agency: Kane County Office of Community Reinvestment
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Section 2. That the above funding awards are conditioned on each agency's compliance
with applicable HUD requirements,and satisfaction of conditions outlined in the attachment to the
report and recommendation issued to the Mayor and Members of the City Council at the
Committee of the Whole meeting of June 26, 2019.
Section 3. That Richard G. Kozal, City Manager, be and is hereby authorized and directed
to execute such applications, agreements, certifications,reports, and other documents required by
HUD, and to provide additional information and furnish such documents as may be required by
HUD, to complete the activities described in the plans approved or amended herein.
Section 4. That Richard G. Kozal, City Manager, be and is hereby authorized and directed
to execute Amendment #3 to CDBG Program Management Intergovernmental Agreement on
behalf of the City of Elgin with Kane County for program management services regarding the
Community Development Block Grant Program and the Neighborhood Stabilization Program. a
copy of which is attached hereto and made a part hereof by reference.
s/David J. Kaptain
David J. Kaptain, Mayor
Presented: July 24, 2019
Adopted: July 24, 2019
Omnibus Vote: Yeas: 9 Nays: 0
Attest:
s/Kimberly Dewis
Kimberly Dewis, City Clerk
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Amendment#5 to CDBG Program Management
Intergovernmental Agreement
THIS AMENDMENT, made and entered into this day of , 2020, by and
between the CITY OF ELGIN, an Illinois municipal corporation (the "CITY"), and KANE COUNTY, a body
corporate and politic(the "COUNTY"),which are collectively known as"the Parties", modifies an
Intergovernmental Agreement (the "Agreement")entered into by the Parties for CDBG Program
Management services on July 13,2016,and subsequently amended on November 15, 2017,July 11,
2018,July 24,2019, and October 31, 2019.
WITNESSETH:
WHEREAS, under the Agreement(as amended),the COUNTY provides program management
services to the CITY in order to ensure proper implementation of its Community Development Block
Grant ("CDBG") Program and close-out of its Neighborhood Stabilization Program ("NSP"), both of which
are funded by the U.S. Department of Housing and Urban Development("HUD");and
WHEREAS,the CITY allocated CDBG funds in its Annual Action Plan for Program Year 2019 for
the development of affordable housing within its corporate limits; and
WHEREAS, said funds were awarded to the COUNTY to be administered under the Kane-Elgin
Home Consortium's Affordable Housing Fund, which utilizes multiple funding sources to provide gap
financing for the preservation and/or creation of affordable housing for income-eligible households; and
WHEREAS, it is necessary at this time to amend the Agreement to add said Affordable Housing
Fund services to the scope of services to be provided by the COUNTY to the CITY during Program Year
2019, and to increase CDBG funding provided by the CITY to the COUNTY in order to cover Affordable
Housing Fund costs; and
WHEREAS, Paragraph 18 of the Agreement stipulates that it may be amended provided that
such amendments are in writing and duly executed by the Parties.
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 CITY and
COUNTY to amend certain portions of the Agreement as follows:
Paragraph 2, "Scope of Services," Subparagraph A, shall be amended as follows:
A. The COUNTY shall provide program management services for the implementation of the
CITY's CDBG Program and its NSP. In providing these services,COUNTY shall perform the
tasks outlined in Attachment A, "Scope of Services" (hereinafter referred to as the
"SERVICES").
In conjunction with the CDBG program management services,the COUNTY.shall
administer and provide housing rehabilitation services on behalf of the CITY.The
COUNTY shall subcontract with Community Contacts, Inc., an Illinois not-for-profit
corporation,to oversee and administer the housing rehabilitation services, as further
set forth in Attachment A.
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Additionally, the COUNTY shall administer and provide Affordable Housing Fund services
on behalf of the CITY.The County shall subcontract with developer(s)to complete
Affordable Housing Fund projects, as further set forth in Attachment A.
The - - • - • -- - • . •- •- . _ - •. - ' . - • services provided by the COUNTY
under this agreement during a Program Year shall include the management and
administration of any outstanding funds that were allocated to the CITY but were
unexpended in any prior program years.
II. Paragraph 4,"Payments to the County," shall be amended as follows:
A. The CITY shall make periodic payments to the COUNTY for program management
services provided under this Agreement according to the budget established in
Attachment B, "Budget for Program Year 2019 Services—Elgin CDBG Program
Management Services."
B. The total of all payments made by the CITY to the COUNTY for program management
services provided under this Agreement shall not exceed $136,355.00 unless
modifications to the SERVICES are authorized in writing by the CITY and COUNTY by way
of written amendment to this Agreement.
C. The CITY shall also make periodic payments to the COUNTY for the reimbursement of
housing rehabilitation costs and services provided under this Agreement according to
the budget established in Attachment C, "Budget for Program Year 2018 Services—Elgin
CDBG Program Housing Rehabilitation Services."
D. The total of all payments made by the CITY to the COUNTY for housing rehabilitation
costs and services provided under this Agreement shall not exceed$351,190.00 unless
modifications to the SERVICES are authorized in writing by the CITY and COUNTY by way
of written amendment to this Agreement. The payments to the COUNTY for housing
rehabilitation costs and services shall include both the amounts of residential
rehabilitation assistance provided to Elgin residents for rehabilitation costs and the
program delivery costs to Community Contacts, Inc.,for the administration and
management of the CITY's housing rehabilitation program, in accordance with the terms
and provisions of this Agreement. The COUNTY shall pay Community Contacts, Inc.,
directly for its administration and management of the CITY's housing rehabilitation
program, and shall submit invoices to the CITY for reimbursement in accordance with
Section 4 of this Agreement.
E. The CITY shall also make periodic payments to the COUNTY for the reimbursement of
Affordable Housing Fund project costs provided under this Agreement according to the
budget established in Attachment D, "Budget for Program Year 2019 Services—Elgin
CDBG Program Affordable Housing Fund."
F. The total of all payments made by the CITY to the COUNTY for Affordable Housing Fund
project costs provided under this Agreement shall not exceed $263,892.00 unless
modifications to the SERVICES are authorized in writing by the CITY and COUNTY by way
of written amendment to this Agreement.
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G. Additional services provided by the COUNTY which are not described herein require
• prior written approval of the CITY and COUNTY and shall be compensated according to
terms agreed upon in such written approval.
III. Attachment A, "Scope of Services," shall be replaced with Amended Attachment A, "Scope of
Services," which is attached to this Amendment.
IV. Attachment D, "Budget for Program Year 2019 Services—Elgin CDBG Program Affordable
Housing Fund," which is attached to this Amendment, shall be added to the Agreement.
IN WITNESS WHEREOF,the undersigned Parties have caused this Amendment to be executed by their
duly designated officials.
CITY OF ELGIN, a municipal corporation
By: f / f....79>;;;;ale"
�/ Dat . �at;kg,
Richard Kozal, City Mana:-r
Attest:
6te,erKimberly Dewis, City Cl rk
COUNTY OF KANE,a body politic in the State of Illinois
By: ,% ��� Date: FEB 2 7 2020
S ott erger, Dir-ctor
Office of Community Reif : tment
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AMENDED ATTACHMENT A
SCOPE OF SERVICES
The Kane County Office of Community Reinvestment will provide the following program and
project management services to support the City of Elgin's Community Development Block Grant
Program:
Determination of Activity Eligibility and Project Readiness
• Provide written report with supporting documentation for each project to document
compliance with HUD's activity eligibility and national objective criteria.
• Provide written report documenting project readiness and verifying that funding sources are
secured and projects are ready to proceed.
Consolidated and Annual Action Plan Prep./Amendment Prep.
• Prepare a five-year Consolidated Plan (including a one-year Annual Action Plan) satisfying HUD
requirements and identifying housing and community development needs in the Kane-Elgin
Consortium Area for Program Years 2020-2024.The County will develop said plan with the
assistance of a consultant,the cost of which will be shared evenly between the City and County.
In consultation with the City,the County and consultant will:
o Gather and analyze data and stakeholder input regarding housing and*community
development needs.
o Conduct community surveys regarding service needs,workforce needs, public
infrastructure needs,and facility needs.survey's
o Convene public forums to collect community feedback.
o Prepare the narratives,tables, and other content necessary to satisfy HUD's
Consolidated Plan and Annual Action Plan requirements.
o Enter plan narratives and projects/activities into HUD's IDIS System.
o Conduct the required public comment period and public hearing within the City of Elgin.
o Prepare summary of comments received during comment period and hearing for review
by Elgin.
o Plan submittal:
o Incorporate public comments/responses and submit summaries to HUD in IDIS.
o Provide hard and electronic copies of final plan documents for Elgin's records/use.
• Prepare amendment(s)to any current or prior-year Action Plan(s) as requested by Elgin.
Environmental Review
• Prepare individual Environmental Review Records for all CDBG-funded activities for review and
signature by Elgin's Certifying Official.
• Prepare/publish required notices(if necessary).
• Prepare RROF/FONSI forms for review/signature by Elgin's Certifying Official and submittal to
HUD (if necessary).
• Obtain release of funds from HUD (if necessary).
• Enter/upload all required information/documents into HEROS systems as required by HUD.
Project Management/Oversight
Includes oversight of both new and prior-year CDBG activities through project close-out and final file
review to ensure project records are complete and ready for future audits and/or monitorings.
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• Prepare funding agreements.
• Set up all activities in IDIS.
• Conduct project kick-off/orientation meeting to ensure smooth project launch/completion.
• Assist with procurement/bidding processes to confirm compliance with HUD standards.
• Confirm/document that the selected contractors(and subs)are not debarred.
• Ensure compliance with Federal Labor Standards/Davis-Bacon, including collection of certified
payroll records from contractors(and subs), and conducting/documenting job site interviews.
• Collect and maintain documentation of activity accomplishments and beneficiary info, including
quarterly performance reports. Update accomplishments in IDIS on a quarterly basis per HUD
standards.
• Monitor projects (both while underway and at completion).
• Collect and review annual agency audits to confirm compliance with OMB standards. Follow up
on any findings/deficiencies that are of concern.
• Enter completion data/info and closeout projects in IDIS.
• Preparation of project files/records:
o, Provide Elgin with complete and organized file for each project (in both hard and
electronic formats)to document compliance with all Federal requirements.
• Meet with representatives from Elgin's external auditing firm (Sikich)to provide
information/documentation and assist with the city's annual single audit.
• Meet with HUD staff to provide information/documentation and assist with monitoring visits.
_Field follow-up questions and prepare draft written responses for Elgin's review/submittal to
HUD.
Housing Rehabilitation Services
• Subcontract with Community Contacts to provide housing rehabilitation assistance to Elgin
homeowners consistent with the County's program under the following parameters:
o Homeowner Eligibility: Applicants must be at least eighteen (18)years of age, and their
total household income must be at/below 80%of Area Median Income (as updated and
published annually by HUD). Applicants must own and occupy the property as their
principal residence and be current with the payment of their mortgage, property taxes,
and homeowner's insurance premium.
o Property Type(s): Properties must be lawful, single-family dwellings free of all liens and
located in the City of Elgin.
o Amount of Assistance/Household: Up to$15,000 for housing rehabilitation work and up
to$10,000 for lead hazard control work,for a combined maximum of$25,000/
household.All assistance shall be provided in the form of a grant. Community Contacts
shall be eligible to receive a project delivery fee.
• Oversee and monitor the following tasks to be performed by Community Contacts:
o Receipt and processing of applications to identify eligible households. (All applications
currently under review/processing by Elgin's Community Development Department will
be given priority status ahead of any new applications.)
o Assessment of the physical condition of homes determined eligible for the program.
o Preparation of a scope of work and specifications for each housing unit to be
rehabilitated along with a cost estimate for the work.
o Procurement of contractor services through competitive bidding to a pre-qualified list of
contractors.
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o Execution of agreements and other documents necessary for homeowners to
participate in the program.
o Inspection of work performed by contractors to ensure satisfactory completion,
including compliance with lead-based paint requirements.
• Pay Community Contacts directly and submit reimbursement requests to Elgin.
• Maintain project files and beneficiary data for reporting/tracking purposes.
Affordable Housing Fund
• Administer the Kane-Elgin Consortium's Affordable Housing Fund (AHF), which leverages
multiple funding sources to support the preservation and/or creation of affordable housing for
households with incomes at/below 80%of the Area Median Income, as updated and published
annually by HUD.
• Conduct an annual Request for Proposals process to solicit housing development and/or
redevelopment projects from non-profit and for-profit developers.
• Evaluate, underwrite, and present applications to the Kane-Elgin Home Commission, which will
be responsible for reviewing and approving AHF awards. Projects receiving Elgin CDBG funding
through the AHF must be located in the City of Elgin.
• Subcontract with approved developers to complete AHF projects.
• Oversee and monitor all aspects of AHF projects to ensure satisfaction of HUD requirements.
• Pay developers directly for eligible and appropriate project costs and submit reimbursement
requests to Elgin.
• Maintain project files and beneficiary data for reporting/tracking purposes.
Neighborhood Stabilization Program
• Prepare/submit outstanding and future quarterly reports in HUD's DRGR System.
• Other work associated with closing out Elgin's Neighborhood Stabilization Program.
Financial Recordkeeping/Payment Processing/Reporting
• Review/approve project invoices/requests for payment.
• Submit invoices/requests for payment to the city's Finance Department for processing.
o If requested by city,assist with IDIS drawdown process to ensure prompt
reimbursement from HUD.
• If requested by Elgin, review financial records and quarterly financial reports(SF-425).
• Maintain records/backup documentation to support the city's financial records. Make same
available for preparation of the city's annual single audit and HUD monitoring.
o Prepare corrective action plans and narrative responses necessary to address
deficiencies identified in program audits/monitoring visits.
• Prepare and submit other compliance reports.
o Contract and Subcontract Activity Reports(HUD-2516)
o Semi-annual Labor Standards Enforcement Reports (HUD-4710)
o Section 3 Summary Report
o FFATA Subaward Reporting
Consolidated Annual Performance Evaluation Report(CAPER)
• Prepare written accomplishment narratives.
• Enter all required info/data in HUD's IDIS System.
• Public comment period:
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o Draft public notice for publication.
o Prepare summary of comments received during comment,period for city.
• Report submittal:
o Incorporate public comments/responses and submit with Kane-Elgin Consortium CAPER
in IDIS.
o Provide hard and electronic copies of final report for city records/use.
Application Process
• Conduct application process for projects sponsored by external entities.
• Provide bound (and electronic) packet for review by city administration and City Council,
including:
o Staff reports/evaluations/recommendations; and
o Budget worksheet to aid in the allocation process.
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ATTACHMENT D
BUDGET FOR PROGRAM YEAR 2019 SERVICES—
ELGIN CDBG PROGRAM AFFORDABLE HOUSING FUND
Elgin CDBG Program Affordable Housing Fund
Expense Amount
Housing Redevelopment Services(property acquisition and redevelopment
1. costs) $263,892.00
Not-to-Exceed Total for PY2019 • $263,892.00
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