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98-31 Resolution No. 98-31 RESOLUTION AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC. (Multiple Family Conversion Program) 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 1998 Multifamily Conversion Program, 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 44/1 day of rebocaey, 1998, by and between the City of Elgin, Illinois, an Illinas 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; and WHEREAS, the City and NHS have determined that within the South East Elgin Neighborhood, a large number of residences that were originally constructed as single-family dwellings have been converted into multiple-family dwellings . 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 February 20, 1998, City shall pay to NHS the sum of Three Hundred Eighty-Six Thousand One Hundred Sixty Dollars ($386, 160 . 00) . 2 . NHS shall directly and solely utilize Three Hundred Sixty-Seven Thousand Eight Hundred Dollars ( $367 ,800 . 00) of the aforementioned Three Hundred Eighty-Six Thousand One Hundred Sixty Dollars ($386 , 160 .00) as and for direct payments to property owners of "nonconforming residential conversion" properties located within the corporate boundaries of the City of Elgin, Illinois, pursuant to the terms and conditions provided herein. Not less than One Hundred Eighty-Three Thousand Dollars ( $183,000 . 00) of the aforementioned Three Hundred Eighty-Six Thousand One Hundred Sixty Dollars ($386, 160.00) shall be expended in payment to property owners other than NHS for nonconforming residential conversion properties located within the corporate boundaries of the City of Elgin. Fifteen Thousand Dollars ($15,000) of the aforementioned Three Hundred Eighty-Six Thousand One Hundred Sixty Dollars ($386, 160 . 00) shall be retained by NHS to cover its costs for administering the program. 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" . The 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. 5 . This agreement shall be effective February 11, 1998 and shall terminate December 31, 1998 unless otherwise terminated as provided herein. 6 . This agreement may be terminated by City upon thirty ( 30) 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 before December 31, 1998, 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. CITY OF ELGIN NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC. By BY A 4: r,- C, ‘, . Pot.4 J e --L.1-4-.Parker avid G. Towe City Manager Board President Attest: Dolonna Mecum, City Clerk EXHIBIT A MULTIFAMILY CONVERSION PROGRAM 1 . "Nonconforming Residential Conversion" shall mean a residential structure in which dwelling units were established ( 1) consistent with the provisions of the then applicable zoning ordinance, but in which the additional dwelling units are no longer permitted under current provisions of the current zoning ordinance, or (2) before January 1, 1992, as substantiated by three separate and distinct forms of written documentation, and the execution of an affidavit by the residential structure' s owner or owners attesting that the residential structure will be occupied by the owner or owners for a period of twelve ( 12) months following the issuance of an occupancy permit for the work performed pursuant to the nonconforming residential conversion. 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, a final inspection made in conjunction with a request for the issuance of an occupancy permit. 5 . Program shall provide a maximum of Twelve Thousand Dollars ($12, 000 . 00) in financial assistance per dwelling unit. For properties located in "User Defined Area 5, " as set forth in the United States Census designation (the South East Elgin Neighborhood) , a maximum of Fifteen Thousand Dollars ($15,000 . 00) per dwelling unit shall be provided. Funds shall be disbursed in accordance with the criteria adopted by NHS. NHS will work with SEEN to devise a marketing program specifically designed to induce nonconforming residential conversions in the South East Elgin Neighborhood. 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 .