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97-206
Resolution No. 97-206 RESOLUTION AUTHORIZING EXECUTION OF AN AMENDMENT TO PURCHASE OF SERVICE AGREEMENT WITH NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC. 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 an amendment to purchase of , service agreement on behalf of the City of Elgin with Neighborhood Housing Services of Elgin, Inc . for operational support for neighborhood revitalization, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: August 13, 1997 Adopted: August 13, 1997 Omnibus Vote: Yeas 7 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk AMENDMENT TO PURCHASE OF SERVICE AGREEMENT BETWEEN NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC. AND THE CITY OF ELGIN WHEREAS, the CITY OF ELGIN (City) and NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC. (NHS) have heretofore entered into a written agreement whereby City has agreed to make payment to NHS to assist it in the revitalization and redevelopment certain areas located within City; and WHEREAS, City and NHS desire to insure that rehabilitated property sold to third parties shall comply with all applicable ordinances prior to transfer of real property. NOW, THEREFORE, the following paragraph is hereby added to that certain Purchase of Service Agreement Between Neighborhood Housing Services of Elgin, Inc. and the City of Elgin dated February 3, 1997. 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. CIT • LGIN NEIGHBORHOOD HOUSING SERVICES I OF ELGIN, INC. • By it/l!//iii a_4 �f' /s' - By ��i v't�� R i Bert 0. alm, resident In erim City Manager Attest: Attest: Dolonna Mecum Secretary City Clerk July 17, 1997 MEMORANDUM TO: Mayor and Members of City Council FROM: Erwin W. Jentsch, Corporation Counsel SUBJECT: NHS Purchase of Service Agreement At the last regular meeting of the committee of the whole members inquired whether the city could require final inspections of rehabilitated property prior to sale and occupancy. In addition to requirements of ordinances which may be applicable, the city as a term of its purchase of service agreement with NHS may require that rehabilitated property be inspected by the city to insure compliance with applicable ordinances prior to closing of the sale and occupancy by the buyer. As part of the purchase of service agreement the city may also permit occupancy following inspection upon submission of a schedule for compliance and the written agreement of the buyer to perform necessary corrective work. Amendments to the existing purchase of service agreement would require the agreement of both the city and NHS. Future NHS purchase of service agreements could be made contingent upon the inclusion of such terms, should the City Council so desire. Should you have any questions please contact me. 1g7. . 1/1" nr City of Elgin Multi-family Conversion Program Program Performance Report 1995-1997 presented by • • 4 ► • • • s • • i ♦ ' • Neighborhood Housing Services of Elgin 300 Douglas Avenue Elgin, IL 60120 847-695-0399 e Introduction In late 1994, the Elgin City Council approved a budget that included funding for the Multi-Family Conversion Program (MFC). This impetus for the creation of this program was based on the correlation between density and neighborhood stress as outlined in the study of Neighborhood Stress Factors, done by the Planning Department. The MFC program was modeled loosely after a program in Aurora, Illinois. The Elgin program provides for the lesser of$12,000 or actual costs to convert, for each housing unit eliminated. The program is open to both owner-occupied and non owner-occupied, legally converted properties. As a service to the City of Elgin, NHS offered to administer the program in mid-1995. Program description and procedures were outlined and the program was in place in mid-1995. The funding level by budget year. 1995 $100,000. 1996 $150,000 1996 $ 50,000 (additional funding) 1997 $200,000 TOTAL TO DATE $500,000 The City of Elgin's five year financial plan calls for funding the program through 2001.This allocation totals $1.55 million over the four year period (1998-2001). Performance NHS Staff continues to monitor the projects currently underway. By the end of the first quarter 1997, all allocations ($500,000 in total)were fully committed. To date, $500,000 has been committed to reduce 78 housing units down to the original 32 housing units, at an estimated cost of$10,826 per unit. It is estimated that the same program in Aurora, Illinois would have cost approximately$1,638,000 for the same impact. in addition to the reduction in housing units, the desired impact of reduce density in designated areas seems to be a reality. It is estimated that the population of the properties impacted by the program have seen a reduction in their populations of approximately nearly 60% from 218 persons to just 89. Of the total projects under the program, 78% are owner-occupied projects and 22% not owner-occupied. The participation by Hispanic owners totaled 10%, Caucasian 80% and Black participants 10%. To insure maximum public participation in the program, NHS utilized just 14% of total program funds on selected properties. Typically the NHS/MFC projects have been those properties having the most adverse impact on a neighborhood. This program is operated for the benefit of the community by NHS. Application fees received by NHS for this program total $4,050 or less than 1% of the program allocation. These fees are paid by the recipients of program funding. Multi-family Conversion Program Summary jC:n:.+.x•..xxvvv:naaw.:x{vnvvu:nx•.a::::x•.::•.:x}v:n:+va•.�+'�•.x::..anaw.v:.0.u•.vx:•.vnxa..:vxxxnvvvnnx:4F•nwnyxa^.xaiapvvaynw.v:.aavn.::.vxvM}a':YN+;Pn3}:.,V.x'p)u!S{n:.n}:•.::v.:v.}:v:n�:v:nw..::, 3 1997 TOTAL 30 13 $198,000 1996 TOTAL 34 14 200,000 1995 TOTAL 14 5 100.000 TOTAL 78 32 $498,000 Total units reduced 46 Total for NHS Projects $ 72,000 (14%) Average cost of unit conversion $10,826 Owner Occupied Conversions 78% Non-Owner Occupied Conversions 22% Caucasian Program Participants 80% Black Program Participants 10% Hispanic Program Participants 10% Population/Density Reduction Program Year Pre Conversion Post Conversion Population Estimate Units Po ulation Estimate Units 1997 TOTAL 84 30 36 13 1996 TOTAL 95 34 39 14 1995 TOTAL 39 14 14 5 PROGRAM TOTAL 218 78 89 32 Density in converted housing was reduced by nearly 60%. Estimate of pre and post conversion populations were based on 1990 census data that showed total occupied persons per unit in the City of Elgin at 2.8 persons el.". Multi-Family Conversion Program Summary of Projects Address Original Units after MFC Grant MFC Project Units MFC Program Amount Year Status v.•.:({::..:...•v ..rr.t:n..x..... ..:.: .....: :t.^.:::fv: :. v ...::.•::::....v .::•:1::........:..rr...,{xY.4.•.•:At:: ..:{l.':..:.:{.'f.:•'.t:.....i:{:rw:.•!.'r....: .... r.. y ......:.` 264 Ann Street 2 1 $ 12,000 95 Complete 259 Villa 3 1 $ 12,000 95 Complete 18 Warwick 3 1 $ 24,000 95 Complete 359 Park Street 2 1 $ 12,000 95 Complete 320 N. Spring' 4 1 $ 12,000 95 Complete 34 N.Gifford 2 1 $ 12,000 96 Complete 305 E.Chicago 4 1 $ 36,000 96 Complete 387 Ryerson 2 1 $ 12,000 96 Complete 211 N.Gifford 2 1 $ 12,000 96 Under construction 320 Park Street 5 1 $ 48,000 96 Complete 573 Division Street 2 1 $ 12,000 96 Complete 639 Park Street 2 1 $ 12,000 96 Under construction 409 North Street' 3 1 $ 24,000 96 Complete 318 Dupage' 2 1 $ 12,000 96 Under construction 318 Franklin 2 1 $ 12,000 96 Under construction 447 Ashland' 2 1 $ 12,000 96 Under construction 493 Laurel 2 1 $ 11,000 96 Complete 634 Brook 2 1 $ 12,000 96 Under construction l 566 Hickory 2 1 $ 1,000 96 Complete 527 Laurel 2 1 $ 12,000 97 Approved 719 Brook 2 1 $ 12,000 97 Under construction 374 Park Street 4 1 $ 36,000 97 Under construction 523 Wellington 2 1 $ 12,000 97 Under construction 465 Douglas 3 1 $ 24,000 97 Under construction 306 N.Spring' 3 1 $ 24,000 97 Under construction 68 N. Liberty 2 1 $ 12,000 97 Under construction 614 South Street 2 1 $ 12,000 97 Under construction 156 S.Gifford 2 . 1 $ 12,000 97 Complete 261 Villa Street 2 1 $ 12,000 97 Under construction 955 S. Liberty 2 1 $ 12,000 97 Under construction 109 Hill Avenue 2 1 $ 12,000 97 Under construction 466 Locust 2 1 $ 6.000 91 Under construction TOTAL 78 32 $498,000 NOTE: *Indicates NHS Owned Property - Multi-family Conversion Program • Density Reduction 1995-1997 m 250 N_ c 200 p t0 E. 150 0 Estimated Population I CL v100 E 50 Pre Conversion Post Conversion f` Multi-family Conversion Program Housing Unit Reduction 1995-1997 - 100 1 80 5 5 60 :<: : 0 Number of Units E40 * i!g:::,.,: e` Pre Conversion Post Conversion Multi-family Conversion Program Historical Program Participation by Racial/Ethnic Group (80.0%) .:4,. ®Caucasian ` ®Black , (10.0%) 0 Hispanic (10.0%) Multi-family Conversion Program Program Participation by Ownership Interest (22.0%) fry " "° 7 a f` ®Owner Occupied "% '`' 0 Non-Owner Occupied • (78.0%) ..✓ •/ _ - •' d; - .L eighborhood Housing Services of Elgin `�E. � r p '• 1 -ljt-- 0 irl Lt, 1996 Production i'S . �-t• ^' . 7 .., �r• .a 1....__. .. , (1.___ ,_\mi ... • .-8-1-74 •„•7[ .-31LiE_ _ .L______ 1!/ . 1 IL :5)7:j_. , • , 77 7 r---r—H . ... :I.( biELlb‘ _1:_,,__i = ',r---1 r-- - ��R 4[1E1, �, ! _ _.LLB I VVV wt r-t t t 1; - 1 Flrillf2174::IkTionr- .i /t r.ti rr a �• .°n._ —.L J n ' ,,,... .),..,... , „,tlutatrt f' I ' �� -I iflLb —i3.•v• . 1��l_. -f L• _ 1 '� �'°t � t I fr °rte C�l_ r l ��i +'1^II r.s ...tit. - =n e � _ l *s. �.. nJr 1L _ t, ,,,..r ' �... . 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I iilLibeg It ��1E2S LS' `ji 1� Il ‘----1.' :-� Eh... .. • �I �� ' ”" j:(' ffY.Ol. 1 .CfIe!I ••••■11"." 141211 Et 1,.• RI,Y : i r—� t' M i: I l( ��l� I r--•� � ilr�7n.� i 1111 �r�r--7I�—�,f-- 'loll., I� 'i1 I: I WI • ."t Multi-Family Conversion Program Southeast Elgin Neighborhool -_—_,......___, [--_,J ! ii • t--0rl u / ,� Jam >; ' .° �L�LJ r,