97-30 Resolution No. 97-30
RESOLUTION
AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE
AGREEMENT WITH NEIGHBORHOOD HOUSING SERVICES
FOR MULTIFAMILY CONVERSIONS
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 a purchase of service agreement on behalf
of the City of Elgin with Neighborhood Housing Services to
provide for property conversion to certain areas within the
city limits, a copy of which is attached hereto and made a
part hereof by reference.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: January 22, 1997
Adopted: January 22, 1997
Omnibus Vote: Yeas 6 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 317L9 day of
f`ER 1 , 1997, by and between the City of Elgin, Illinois, an
Illinois 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" ) ; and
WHEREAS, City has determined that it is in the best
interests of City and its citizens to promote and facilitate
the conversion of lawful nonconforming multifamily residential
properties to single family use; and
WHEREAS, NHS has successfully provided redevelopment
services and administration in the Elgin, Illinois area and is
familiar with and otherwise experienced in the historical,
geographic and architectural attributes of the City of Elgin
and surrounding area.
NOW, THEREFORE, for and in consideration of the mutual
promises and covenants contained herein, and other good and
valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto hereby agree as
follows :
1 . On or before June 30, 1997, City shall pay to NHS
the sum of Two Hundred Thousand Dollars ($200,000 . 00) .
2 . NHS shall directly and solely utilize the
aforementioned $200,000 . 00 as and for direct payments to
property owners of lawful nonconforming residential conversion
properties located within the corporate boundaries of the City
of Elgin, Illinois, pursuant to the terms and conditions
provided herein. A minimum of $100,000 . 00 of the $200,000 . 00
is for projects not submitted by NHS.
3. The terms, conditions and criteria by which
recipients of the aforementioned payments to property owners
shall be selected and governed shall be pursuant to the terms
of the Multifamily Conversion Program, which is attached
hereto and made a part hereof as Exhibit "A" . City may amend
the terms and provisions of the Multifamily Conversion Program
from time to time in its sole discretion by providing written
notice of such amendments to NHS.
4 . NHS shall hold harmless and indemnify City from and
against any and all claims for damages, lawsuits, causes of
action or any and all other liability which may arise out of
or in connection with NHS' negligent performance of the terms
of this agreement, specifically including, but not limited to,
failure to adhere to the provisions of the Multifamily
Conversion Program.
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5. This agreement shall be effective January 1, 1997
and shall terminate December 31, 1997 unless otherwise
terminated as provided herein.
6 . This agreement may be terminated by City upon
fifteen ( 15) days written notice to NHS for any reason.
7 . Upon termination of this agreement, NHS shall return
any funds provided by City pursuant to this agreement, which
have not been expended directly to property owners pursuant to
this agreement, to City within thirty (30) days of
termination. NHS shall not expend any funds acquired from
City pursuant to this agreement upon receiving notice of
termination.
8. NHS shall provide a detailed written report of all
expenditures of funds made pursuant to this agreement to City
after July 1, 1997, and before December 31, 1997, which report
shall include but not be limited to properties converted,
amounts paid and selection criteria used.
9 . The terms and provisions of this agreement shall be
severable. In the event that any portion of this agreement is
deemed to be void or otherwise unenforceable for any reason,
the remainder of this agreement shall remain in full force and
effect.
10. This agreement shall be subject to and governed by
the laws of the State of Illinois .
11. This agreement represents the entire agreement
between the parties hereto. No other oral or written
agreements currently exist which shall modify or supersede the
terms of this agreement.
C OF LGIN
i
--/w4L
By t t /
°o•ert O. Malm
Interim City Manager
Attest:
Dolonna Mecum
City Clerk
NEIt .BORHOOD HOUSING SERVICES
OF E IN, IN . /
By ' I/ 1 [�
Denise H rding , •p i
Board President
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EXHIBIT A
MULTIFAMILY CONVERSION PROGRAM
1 . "Lawful Nonconforming Residential Conversion"
shall mean a residential structure to which additional
dwelling units were constructed consistent with the provisions
of the then applicable zoning ordinance.
2 . Program shall operate under established
objective criteria with respect to selection of participating
properties .
3. Program expenditures shall be limited to
construction items required to convert a residential structure
to single family residential use.
4 . All work performed under program shall be
performed in compliance with all applicable city codes and
ordinances specifically including but not limited to approved
final inspection.
5 . Program shall provide a maximum of $12,000 in
financial assistance per dwelling unit.
6 . All recipients of funds pursuant to this
Multifamily Conversion Program shall be required by NHS to
enter into an agreement which shall specifically require that
such recipient shall not participate, either directly or
indirectly in the Elgin Residential Rehabilitation Grant
Program or any other federally funded housing rehabilitation
program for one year from the date the conversion permit is
issued, and shall not sell or otherwise convey their interest
in the subject property prior to completion of their
participation in the Multifamily Conversion Program. Such
agreement shall further require compliance with all other
provisions of the Multifamily Conversion Program, and shall
provide that such recipient shall indemnify, reimburse and
hold harmless the City of Elgin, Illinois from and against any
claims for damages, causes of action, lawsuits, and any and
all other liability which may arise out of or in connection
with said recipient' s breach of the terms of the
aforementioned agreement or other negligent or reckless acts .
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vA O`E(C
City of Elgin Agenda Item No
January 2, 1997
TO: Mayor and Members of the City Council
FROM: Robert 0. Maim, Interim City Manager
SUBJECT: 1997 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) ; for neighborhood
revitalization and multi-family housing conversion efforts.
BACKGROUND
embk The 1997 Budget includes $100,300 to provide operational
support for NHS and $200,000 to replenish the Multi-family
Housing Conversion Program (MFC) .
NHS is chartered through a national organization. The NHS
partnership is a structure fostering involvement and
cooperation from the community, bringing together citizens,
financial institution representatives and city officials .
The cooperation is evident in the NHS proposed 1997 budget,
which supplements City support with leveraging contributions
from local banks, grants and other fund raising. •
NHS Success
NHS operational support was increased in 1996 to $97,300,
allowing NHS to provide services city-wide for the first
time. In previous years, NHS work had been directed to
selected target areas. While focused on older, established
neighborhoods, NHS is growing its capability to meet the
needs that occur in similar neighborhoods throughout Elgin.
The initial year as a city-wide assistance program began with
relocation into new offices (a former six-unit apartment
building badly needing reinvestment) at 300 Douglas Avenue.
In 1996, four primary program areas were focused upon:
eft-
PSA with NHS
January 2, 1996
Page 2
fek - Rehabilitation Loans Nears a Half-million Dollar Invest-
ment. The addition of a lending officer position result-
ed in an increase in low interest loans provided
otherwise non-bankable property owners for residential
improvements. In 1996, there were 46 loans approved for
a total of $323,914; compared to 18 loans for $70,900 in
1995. The home improvement loans are reviewed in more
detail on pages 8-9 of the attached Fourth Quarter, 1996
Report to the Partnership with a map showing
distribution of loans on page 16 of the same report.
- Spring Street Redevelopment Corridor Caps Initiative of
City-funded Home Improvement Fund. One of the largest
impacts of 1996 was an aggressive program of acquiring,
rehabilitating, and reselling properties. ' Through the
$300,000 capitalization provided by the City of Elgin in
mid-1996, coupled with other sources of capital and
partnerships, NHS was able to undertake 17 property
improvement projects. Most of the projects are in the
final stages of redevelopment and will be sold in 1997
to recapitalize the Home Improvement Fund. NHS was able
to acquire and rehabilitate four properties in the area
of Spring and Ann Streets, changing former gang
member-occupied units into attractive homes. In the
rh. attached Fourth Quarter, 1996 NHS report, the property
acquisition and rehabilitation program is discussed on
pages 2-6 . A detail of the properties acquired and
status is included in that section.
- Multi-family Conversion Program Turns 19 Properties Back
to Original Single-family Use. In two years, the multi-
family conversion program, administered by NHS and
funded by the City of Elgin, has reduced density of 19
properties with the removal of 28 units. In reviewing
the program last summer, the City Council increased
funding for these voluntary deconversions by another
$50,000 from the allocation anticipated in the adopted
Five-Year Financial Plan. The additional funding was
designated specifically for project applications not
submitted by Neighborhood Housing Services. Through the
first two years of the MFC program, NHS used one-fifth
of the total funds for problem property and strategic
location deconversions in which NHS had an ownership
interest. The remaining 80% 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 1997 allocation. A separate
performance report on the Multi-family Conversion
program is attached. A table on page two of that report
specifies each address and status of the conversion.
tow
PSA with NHS
January 2, 1996
Page 3
(wk. - Neighborhood Leadership Development and Organizing
Focuses on Communication. NHS launched a neighborhood
newspaper, The Voice. Produced monthly, the publication
is nearly self-sufficient from advertising and is
distributed free of charge. The medium provides an
opportunity for organized neighborhood groups to provide
information about programs and activities in one central-
ized clearinghouse. 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 . Neighborhood Development is outlined on
page 14 of the NHS Fourth Quarter, 1996 Report to the
Partnership.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
The NHS Board of Directors.
FINANCIAL IMPACT
Funding in the 1997 budget is from the General Fund and the
few Riverboat Fund. For operational support, there is a total of
$100,300 - $37,300 from the General Fund Non-departmental
(010-6902-719 .80-16) and $63,000 in the Riverboat Fund
(275-0000-791.80-25) . The Multi-family Housing Conversion
Program is funded by $200,000 from the Riverboat Fund
(275-0000-791 .92-32, project 157200) .
LEGAL IMPACT
None.
ALTERNATIVES
Alternatives are to approve the two Purchase of Service
Agreements *as presented, edit the PSAs, or decline to provide
the support for the programs and activities being supplied by
NHS.
evb-
PSA with NHS
January 2, 1996
Page 4
RECOMMENDATION
It is recommended that the City Council approve the PSAs with
NHS for operational support and for the Multi-family Conver-
sion Program as part of the City's plan to address key issues
of Safe Neighborhoods and Building a Civic Infrastructure.
Respectfully submitted,
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C4JL
on
Director of Code
Administration and
hbo hood Affairs
Rober 0 Mal
Interim City Manager
amp
Attachments
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