98-30 Resolution No. 98-30
RESOLUTION
AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT
WITH NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC.
(Revitalization and Redevelopment)
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Joyce A. Parker, 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 of Elgin, Inc. , for
the revitalization and redevelopment of older neighborhoods
under stress, a copy of which is attached hereto and made a
part hereof by reference.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: February 11, 1998
Adopted: February 11, 1998
Omnibus Vote: Yeas 7 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 /SW day of
A'cbruak°y , 1998, by and between the City of Elgin, Illinois,
a 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" ) .
WHEREAS, the City of Elgin, Illinois, a municipal
corporation, (hereinafter referred to as "City" ) is committed
to the revitalization and redevelopment of certain areas within
the city limits; and
WHEREAS, Neighborhood Housing Services of Elgin, Inc. , an
Illinois not-for-profit corporation (hereinafter referred to as
"NHS" ) is incorporated to provide revitalization assistance to
certain areas within the city limits; and
WHEREAS, City is committed to the revitalization and
strengthening all neighborhoods in Elgin; and
WHEREAS, City and NHS wish to work cooperatively to
particularly assist older established neighborhoods throughout
Elgin under stress .
NOW, THEREFORE, for and in consideration of the mutual
promises and covenants contained herein, the sufficiency of
which is hereby acknowledged, the parties hereto hereby agree
as follows:
1 . NHS shall actively solicit neighborhood
representation on the NHS Board of Directors.
2 . NHS shall work with and support neighborhood
organizations .
3 . NHS shall designate reasonably sufficient staffing to
develop newsletters, monthly meetings, membership recruitment
and leadership development.
4 . City shall pay NHS a total sum of $104,600, in two
payments, one of which shall be on or before February 20, 1998
and one of which shall be on or before July 1, 1998 .
5 . NHS shall cooperate with resident police officers and
the Department of Code Administration and Neighborhood Affairs
in building safe neighborhoods .
6 . NHS shall actively seek to develop minority
involvement in NHS activities and in the community.
7 . NHS shall encourage home ownership, the conversion of
single-family properties to their original use, and sound
property maintenance for the betterment of Elgin's
neighborhoods.
8. 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.
9 . NHS shall submit to City four quarterly performance
reports which shall outline NHS' neighborhood organizational
efforts and accomplishments as well as housing rehabilitation
work, loan production and all other NHS activities .
10 . City shall not be required to make any payment to NHS
unless City has been provided with reasonable evidence of
compliance with the terms of this agreement by NHS. Such
evidence shall include, but not be limited to, receipts and
other evidence of expenditures incurred.
11 . Unless otherwise terminated as provided herein, this
agreement shall terminate December 31, 1998 .
12 . Either party hereto may terminate this agreement upon
thirty (30) days written notice.
13. The terms of this agreement shall be severable. In
the event that any of the terms or provisions of this agreement
are found to be void or otherwise unenforceable, the remainder
of this agreement shall remain in full force and effect.
CITY OF ELGIN NEIGHBORHOOD HOUSING SERVICES
OF ELGIN, INC.
B Y ' i � B Y zlB/Z
J• ce 41. Parker
G. Towe
City Manager Board President
Attest:
Dolonna Mecum, City Clerk
-2-
•
,4 oF FCC,
¢���n 5,3- s‘., Agenda Item No. (J�
City of Elgin
January 16, 1998
TO: Mayor and Members of the City Council
FROM: Joyce A. Parker, City Manager
SUBJECT: 1998 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) : operational support for
neighborhood revitalization and multi-family housing
conversion efforts .
BACKGROUND
The 1998 Budget includes $104, 600 to provide operational
support for NHS and $386, 160 to replenish the Multi-family
Housing Conversion Program (MFC) .
NHS is chartered through a national organization, Neighborhood
Reinvestment Corporation. The NHS partnership is a structure
fostering involvement and cooperation from the community,
bringing together citizens, financial institutions and city
government. The partnership is evident in the NHS proposed
1998 budget, which supplements City support with leveraging
contributions from local banks, grants and other fund raising.
NHS Activities
NHS operational support was increased beginning in 1996,
allowing NHS to provide services city-wide . In previous
years, NHS work had been directed to selected target areas .
While still focused on older, established neighborhoods, NHS
is growing its capability to meet the needs that occur in
neighborhoods throughout Elgin. In 1997, five primary program
areas were focused upon:
- Rehabilitation Loan Portfolio Reaches One Million
Dollars. The addition of a lending officer position in
1996 has resulted in an increase in low-interest loans
provided to otherwise non-bankable property owners for
residential improvements . In 1997, there were 145 loans
approved for a total over $1 million, compared to 46
loans for $323, 914 in 1996. The home improvement loans
1998 PSA with NHS
January 16, 1998
Page 2
are reviewed in more detail on page 5 of the attached
Fourth Quarter, 1997 Report to the Partnership.
- Home Improvement Fund. Programs established in 1996
through the City' s $300, 000 capitalization, the Home
Improvement Fund, have resulted in an aggressive program
of acquiring, rehabilitating, and reselling properties .
The City' s $300, 000 capitalization has been leveraged by
commitments loans from local area lenders and a grant
from the Grand Victoria Foundation. Through the Home
Improvement Fund, NHS has been able to undertake 23
property improvement projects . These projects are
rehabilitated and re-sold to recapitalize the Home
Improvement Fund. Property acquisition criteria focus on
neighborhood impact, density reduction, and financial
feasibility. In the attached Fourth Quarter, 1997 NHS
report, the property acquisition and rehabilitation
program is discussed on page 3. A detailed list of the
properties acquired and their status is included in that
section.
- Multi-family Conversion Program Turns 54 Properties Back
to Original Single-family Use. Since 1995, the
multi-family conversion program, administered by NHS and
tow funded by the City of Elgin, has reduced the density of
54 properties with the removal of 58 units . In reviewing
the program last summer, the City Council increased
funding for these voluntary deconversions by an
additional $300, 000 from the allocation anticipated in
the adopted Five-Year Financial Plan. Through the first
three years of the MFC program, NHS used 11% of the total
funds for problem property and strategic location
deconversions in which NHS had an ownership interest.
The remaining 89% 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 1998 allocation.
- Neighborhood Leadership Development and Organizing. The
NHS Resident Committee was formed in 1997 to bring
together representatives from each neighborhood group to
share information, discuss common challenges and explore
possible solutions to issues facing our neighborhoods .
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 . The Voice, a
00Pik monthly publication by NHS, is self-sufficient from
advertising and is distributed free of charge.
Neighborhood Development initiatives are outlined on page
10 of the NHS Fourth Quarter 1997 Report to the
Partnership.
1998 PSA with NHS
January 16, 1998
tow Page 3
f - Grand Victoria Foundation Corridor Redevelopment Fund.
In March of 1997, the Grand Victoria Foundation granted
NHS $500, 000 to fund the Corridor Redevelopment Fund.
The grant funds will be used to implement a variety of
strategies to revitalize the Villa Street and Michigan
Triangle corridor. This grant is the single largest
grant given by the foundation to date .
Neighborhood Housing Services has also purchased and
rehabilitated homes which now serve four of the City' s seven
resident officers . The City has been working though NHS to
identify a location for the ROPE officer previously living in
the River Landing (Times Square) Apartments . When a lease is
presented to the City Council for this location, an evaluation
of the income/expenditures will be presented on all the NHS
ROPE sites to update the terms of the lease, if necessary.
Attached is a memorandum from NHS Acting Director Angel
Rosenthal providing an update on the three Spring Street
properties discussed by the City Council in July, 1997 .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
elik The draft agreements were drafted with NHS Acting Director
Angel Rosenthal .
ALA., FINANCIAL IMPACT
Funding in the 1998 budget is located in both the General Fund
and the Riverboat Fund. For operational support, there is a
total of $104, 600 - $38, 400 from the General Fund
Non-departmental, account number 010-6902-719 . 80-16, and
$66, 200 in the Riverboat Fund, account number
275-0000-791 . 80-25 . The Multi-family Housing Conversion
Program is funded from the Riverboat Fund, account number
275-0000-791 . 92-32, project number 157200, in the amount of
$386, 160 .
LEGAL IMPACT
f' None .
ALTERNATIVES
Alternatives are to approve the two Purchase of Service
Agreements as presented, edit the draft agreements, or decline
to provide the support for the programs and activities being
supplied by NHS.
eft.
1998 PSA with NHS
January 16, 1998
Page 4
RECOMMENDATION
It is recommended that the City Council approve the Agreements
with NHS for operational support and for the Multi-family
Conversion Program as part of the City' s plan to address key
issues of Safe Neighborhoods and Building a Civic
Infrastructure .
Respectfully submitted,
)
Clay . Pearson, Director
Code ministration and
Neighborhood Affairs
6iutAhAllyt.z.citt/t..///
Chief Charles A. Gruber
Pale Department
�--- a-4/
J e� 45/. Parker
City Manager
eilik amp
Attachments