04-140 Resolution No. 04-140
RESOLUTION
AUTHORIZING EXECUTION OF A HOME INVESTMENT PARTNERSHIPS
CONSORTIUM AGREEMENT WITH THE COUNTY OF KANE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that
Ed Schock, Mayor, and Dolonna Mecum, City Clerk,be and are hereby authorized and directed to
execute a HOME Investment Partnerships Consortium Agreement on behalf of the City of Elgin with
the County of Kane for the 2005 HOME Program Year,a copy of which is attached hereto and made
a part hereof by reference.
s/Ed Schock
Ed Schock, Mayor
Presented: May 26, 2004
Adopted: May 26, 2004
Vote: Yeas: 6 Nays: 0
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
STATE OF ILLINOIS
COUNTY OF KANE
RESOLUTION NO. 04 - 06
AUTHORIZING THE CREATION OF A KANE-ELGIN
HOME CONSORTIUM AND COMMISSION
WHEREAS, the County of Kane and the City of Elgin are Community Development
Block Grant (CDBG) Entitlement Communities as designated by the U.S. Department of
Housing and Urban Development (HUD); and
WHEREAS, the County of Kane and the City of Elgin desire to increase opportunities
for home ownership and affordable housing for their residents; and
WHEREAS, the County of Kane and the City of Elgin desire to have direct access to
HOME Investment Partnerships Program (HOME) funds from HUD, but do not qualify
individually; and
WHEREAS, the County of Kane and the City of Elgin can have direct access to HOME
funds by forming a HOME Consortium; and
WHEREAS, HUD requires that a HOME Consortium prepare and submit a single
Consolidated Plan to replace the individual Consolidated Plans of each jurisdiction
participating in the Consortium; and
WHEREAS, the County of Kane and the City of Elgin desire to form a HOME
Consortium and apply for HOME funds for 2005; and
WHEREAS, the HOME Consortium must be formed during 2004 in order to apply for
HOME funds in 2005; and
WHEREAS, the City of Elgin and the County of Kane, along with the twenty-two
municipalities participating in the Kane County CDBG Program, will benefit from participating in
the HOME Investment Partnerships Program;
NOW, THEREFORE, BE IT RESOLVED by the Kane County Board that;
The Chairman of the Board is hereby authorized to sign a HOME Consortium
Agreement and all other documents necessary to form a Kane-Elgin HOME Consortium and
apply for HOME funds; and that
Kane County will serve as the Consortium's lead agency for the administration of HOME
funds, and accepts the responsibilities as such in accordance with Federal statutory and
regulatory requirements; and that
The County of Kane and the City of Elgin will together prepare one Consolidated Plan
as required by HUD for the HOME Consortium; and that
Page 2 of 2 Res. No. 04 - 06
The County of Kane and the City of Elgin will share equally in the costs and staff time
required for the formation of the HOME Consortium, the preparation of the Consolidated Plan
and other administrative activities prior to HOME administration funds being available to pay
for such staff time and costs; and
BE IT FURTHER RESOLVED that a ten member HOME Commission be established,
with five members to be appointed by the Mayor of the City of Elgin and confirmed by the City
Council of the City of Elgin, and five members to be appointed by the Chairman of the Kane
County Board and confirmed by the Kane County Board. The purpose of such commission
shall be to recommend program policies and procedures, to develop and recommend program
priorities, to review and prioritize applications for the use of HOME funds with respect to
adopted priorities and HUD regulations, and to recommend funding priorities to the Kane
County Board.
Passed by the Kane County Board on January 13, 2004.
lerk, County Board Chair n, County Board
Kane County, Illinois Kane County, Illinois
Vote:
Yes
No
Voice o
Abstentions 6
1 Consortium
STATE OF ILLINOIS
COUNTY OF KANE DATE 11' 114 ' 0 L4
I,John A. Cunningham,Kane County Clerk and Keeper of the Records in Kane County,
Illinois do here• ertify that the attached is a true and correct copy of the original record on file.
-----------
Ty•. In witness whereof,I have hereunto set my hand and affixed the
O�Q @GA °`•: Seal o - •f.ane at my office in Geneva,Illinois.
Alr.:
J u A.C
• J. nnnin gham,Kane Co/,•'Clerk
HOME Investment Partnerships
Consortium Agreement
THIS AGREEMENT entered into effective as of the 26TH day of MAY
2004, by and between the COUNTY OF KANE, a body politic and corporate of the State
of Illinois (the "COUNTY") and the CITY OF ELGIN, an Illinois municipal corporation
(the "MUNCICIPALITY"), which are collectively known as the parties.
WITNESSETH:
WHEREAS, the United States Congress has enacted the Cranston-Gonzalez
National Affordable Housing Act ("the Act") providing federal financial assistance for
the support of affordable housing as identified in Title II—Investment in Affordable
Housing of HOME Investment Partnerships Act; and
WHEREAS, the Act makes possible the allocation of funds to the COUNTY for
the purpose of undertaking affordable housing activities identified in the Act; and
WHEREAS, units of local government have had conferred upon them the
following powers by Article VII, Section 10(a) of the 1970 Constitution of the State of
Illinois:
"Units of local government and school districts may contract or otherwise
associate among themselves, with the State, with other states and their units of
local government and school districts, and with the United States to obtain or
share services and to exercise, combine or transfer any power of function, in any
manner not prohibited by law or ordinance. Units of local government and school
districts may contract and otherwise associate with individuals, associations, and
corporations in any manner not prohibited by law or ordinance. Participating
units of government may use their credit, revenues, and other resources to pay
costs and to service debt related to intergovernmental activities"; and
WHEREAS, the Intergovernmental Cooperation Act, (5 ILCS 220/1 et seq.)
Enacted by the State of Illinois provides in part as follows:
"Section 3. Intergovernmental Agreements. Any power or powers, privileges or
authority exercised or which may be exercised by a public agency of this State
may be exercised and enjoyed jointly with any other public agency of this state
and jointly with any public agency of any other state or of the United States, to
the extent that laws of such other state or of the United States do not prohibit joint
exercise or enjoyment. This includes, but is not limited to, arrangements between
the Illinois Student Assistance Commission and agencies in other states which
issue which issue professional licenses."
Section 5. Any one or more public agencies may contract with any one or more
other public agencies to perform any governmental service, activity or
undertaking which any of the public agencies entering into the contract is
authorized by law to perform,provided that such contract shall be authorized by
the governing body of each party to the contract. Such contract shall set forth
fully the purposes,powers,rights, objectives and responsibilities of the
contracting parties."
WHEREAS, the parties to this Agreement have had conferred upon them the
exercise of powers authorized in Chapter 65 of the Illinois Compiled Statutes (known as
the"Illinois Municipal Code"), and Chapter 55 of the Illinois Compiled Statues (known
as the"Illinois Counties Code").
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 COUNTY and the MUNICIPALITIES hereto, as follows:
A. That the recitals hereinabove set forth are incorporated herein by reference as if
fully set forth herein.
B. That the Kane county HOME Investment Partnerships Consortium (the
"Consortium") is defined to include as members of the Consortium the COUNTY
and the following Municipality which authorize and execute this Agreement: and
the City of Elgin, Illinois.
C. That the MUNICIPALITY and the COUNTY hereby agree to cooperate
undertake and/or to assist in undertaking housing assistance activities in order
alleviate housing problems through the HOME Investment Partnerships Program
(hereinafter referred to as HOME Program)in cooperation with the Consortium.
D. That the MUNICIPALITY hereby authorizes the COUNTY to act in a
representative capacity as the lead entity for the members of the Consortium for
purposes of the HOME Program.
E. That the MUNICIPALITY agrees that the COUNTY will assume overall
responsibilities as the lead entity to ensure that the Consortium's HOME Program
is carried out in compliance with the requirements of the HOME Program
including requirements concerning inclusion of proposed HOME Program
activities in the Consortium's Consolidated Plan for Housing and Community
Development(ConPlan) in accordance with applicable HUD regulations. It is
mutually understood, however, that the COUNTY is responsible for the
implementation of the HOME Program and that the MUNICIPALITY remains
fully responsible for implementation of any other funding from federal state, or
local programs which may be identified in the Consortium's or the
MUNICIPALITY's approved ConPlan as it pertains to that MUNICIPALITY'S
identified needs and priorities. Notwithstanding the foregoing, in no event may
the MUNICIPALITY obstruct implementation of the Consortium's approved
ConPlan.
F. That the MUNICIPALITY agrees to evidence its consent to participation in the
Consortium by providing the COUNTY with two certified copies of a resolution
from the governing body of the MUNICIPALITY that the chief elected official of
the MUNICIPALITY is authorized to sign this consortium agreement.
G. That the signature of said Chief Elected Official will be affixed to this Agreement
evidencing the willingness of the MUNICIPALITY to participate in the
Consortium, and to cooperate in the implementation of the Kane County
Consortium for the HOME Program.
H. That the COUNTY agrees to evidence its consent to participation in the
Consortium by providing the CITY with(1)two certified copies of a resolution
from the governing body of the COUNTY that the chief elected official of the
COUNTY is authorized to sign this Consortium Agreement and, (2) an
unqualified opinion of its legal counsel acceptable to the MUNICIPALITY
concluding that the terms and provisions of this Consortium Agreement are fully
authorized under state and local law and that this Consortium Agreement provides
full legal authority for the Consortium to undertake or assist in undertaking
housing assisting activities for the HOME Program.
I. That the signature of said Chief Elected official will be affixed to this Agreement
evidencing the willingness of the COUNTY to participate in the Consortium.
J. Further, that a copy of this consortium Agreement signed by the Chief Elected
Official of the COUNTY will be provided to the MUNICIPALITY.
K. That the program year start date for the consortium shall be June 1, 2005, and all
units of general local government that are members of the Consortium are on the
same program year for the CDBG,HOME, ESG and HOPWA programs.
L. That the MUNICIPALITY and COUNTY agree to affirmatively further fair
housing.
M. That the term of this Agreement is for a period of not less that the period
necessary to carry out all activities that will be funded from funds awarded for the
Federal Fiscal Years 2005, 2006, and 2007 (commencing June 1, 2005 ending
May 31, 2007); that this Agreement remains in effect until the HOME funds from
each of Federal Fiscal Years 2005, 2006 and 2007 are closed out pursuant to 24
CFR 92.507; and that none of the signatories to this Agreement may withdraw
from the Consortium during the period specified in this paragraph.
N. That the parties hereto agree to adopt any amendment to this Agreement
incorporating changes necessary to meet the requirements for cooperation
agreements set forth in HUD's Consortia Qualification Notice applicable for a
subsequent three-year consortia qualification period; that COUNTY shall submit
said amendment to HUD as specified in the Consortium Qualification Notice.
O. That the parties hereto agree that, in the event that a qualifying municipality other
than the above-named MUNICIPALITY decides to join the Consortium, after
June 1, 2005, said Municipality shall(1) submit evidence that it qualifies as a
Metropolitan City for the purposes of the HOME Program, (2)provide written
notice to the parties to this Agreement, and(3) agree to comply with all
provisions of this Agreement applicable to municipalities; and in the event all of
the parties hereto agree that an amendment to this Agreement should be made to
add such additional municipality an amendment to this Agreement may be made
by the execution of a written amendment to this Agreement by Kane County, the
City of Elgin and the municipality seeking to be included into this Consortium
Agreement.
P. That the parties hereto agree that this Agreement which may be executed in one or
more counterparts, each of which shall, for all purposes,be deemed an original
and all of such counterparts, taken together, shall constitute one and the same
Agreement.
IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to be
executed by their duly designated Officials.
COUNTY OF KANE, a bod politic in the State of Illinois
By: Date: ›'.."'2"41-Y�
Micha W. McCoy, Ch irman, ounty Board
CITY OF ELGIN, a municipal corporation
y
By: e J . Date:
Ed Schock, ayor
Attest: VO-0_,LAL
Loni Mec9i, City Clerk
44f , Ck e w
r OF >" Agenda Item No.
City of Elgin
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May 21, 2004
J
N
TO: Mayor and Members of the City Council NEIGHBORHOOD VITALITY
FROM: David M. Dorgan, City Manager
Amy Coyne, CDBG Program Coor inator
SUBJECT: HOME Cooperation Agreement between the City of Elgin and Kane County
PURPOSE
The purpose of this memorandum is to provide the Mayor and members of the City Council with
information regarding the HOME Cooperation Agreement between the City of Elgin and Kane
County. The City of Elgin has the opportunity to enter into a HOME Consortium with Kane
County for the 2005 HOME Program Year.
RECOMMENTATION
It is recommended that the City Council approve the execution of the HOME Cooperation
Agreement.
BACKGROUND
On January 14, 2004, the Mayor and City Council authorized staff to proceed in forming a
HOME Consortium with Kane County. By forming a HOME Consortium, the City along with
Kane County would receive additional funding from the U.S. Department of Housing and Urban
Development for projects targeted for homeowner rehabilitation, homebuyer assistance, the
development of affordable housing (new construction or acquisition), and tenant based rental
assistance. During this time period staff along with Kane County has been working on the
logistics of the program. Several areas of concern have risen that have raised questions from
staff about forming a HOME Consortium with Kane County. The following are the areas of
concern;
1. Lead Agency: As a program requirement the City and Kane County have to appoint a
lead agency for the consortium. City staff along with Kane County decided Kane County
would be the most logical choice. Therefore, the County Board would have final
approval of funded projects.
I
HOME Program
May 21, 2004
Page 2
2. HOME Cooperation Agreement: The execution of the agreement would enter the City
and Kane County into a three year commitment. At no time can the City or Kane County
dissolve the agreement. The City and/or Kane County would have to wait until the
agreement expires to exit the partnership.
3. Consolidate Plan: The City and Kane County would have one five year Consolidated
Plan encompassing the entire Kane County region. The plan would lay out the priorities
for the region and establish what projects would be eligible for funding. The concern
from staff involves the creation of additional affordable housing units. City staff would
like to see funding in our area go to maintaining the existing affordable housing through
rehabilitation. Rehabilitation of single/multifamily housing has been the number one
priority in the City's current five year Consolidated Plan.
4. HOME Commission: The HOME Commission would be comprised of ten members,
five from the City and five from Kane County. The City would adopt by resolution who
they elect to represent the City and like wise for Kane County. The Mayor and City
Council would submit the five commission members to the County Board Chairman and
the final appointment of the ten person County HOME Commission will be by action of
elift* the County Board.
By executing this HOME Cooperation Agreement, the City of Elgin will be contracting our
authority to the Kane County Board to make final decisions on projects suitable for funding
within the City of Elgin. However, the following are additional assurances that will benefit
the City on projects that are ultimately approved by the County;
1. Local Control: The control of how HOME dollars are spent would now go through the
Kane County Consortium. The State would no longer have control over how much
funding will go to this area or what projects will be funded. As it stands now, the State
can chose to allocate zero HOME dollars each year or chose to fund projects that are not
consistent with our local priorities.
2. Affordable Housing: Recently, the State of Illinois issued a new law which requires
counties and municipalities with less than 10% affordable housing to develop and initiate
a Housing Strategy Plan. The City of Elgin is not on the watch list; over 10% of the
housing stock is affordable. Kane County has a number of municipalities that are on the
watch list. The planning process will show Elgin has the highest concentration of
affordable housing. Therefore, the priorities identified during the planning process will
target these areas for additional affordable housing units.
r
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r. HOME Program
May 21, 2004
Page 3
3. HOME Cooperation Agreement: If during the three year commitment, the City feels
that the County is not working to ensure the needs of the residents, the City can choose to
opt out after the third year. If in fact this does happen, the City will take their share of the
money ($381,000) from the consortium, making the County ineligible to receive HOME
funding in the future. Knowing this, it is in the County's best interest to form a true
working relationship with the City.
4. Consolidated Plan/HOME Commission: The City along with Kane County will be
reviewing the draft plans before the final one is adopted by the County Board. At no time
can the County Board approve funding for projects that do not reflect the priorities
identified in the five year Consolidated Plan. The HOME Commission will consist of
10 members, five from the City and five from Kane County. The commission will be
responsible for setting program policies, reviewing applications, and making
recommendations to the Development Committee. The City will have equal
representation on this commission.
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
r Mark VanKerkhoff, Kane County
Scott Berger,Kane County
Drilik.FINANCIAL IMPACT
Initially, the HOME Consortium is a three year commitment. The annual allocation for the City
and County will be $381,000 and $374,000 respectively. The total amount of HOME funding
will be $750,000; of which 10% can be used for administering the program. Since Kane County
will be the lead agency, they will be responsible for all auditing, monitoring, and Federal
regulation requirements and will utilize the 10% allocation. The City and Kane County will have
some shared costs prior to HUD's approval of the HOME Consortium. For example, the City
and County will share costs associated with the completion of the Five Year consolidated Plan.
Please refer to the COW memo regarding the consultant contract for the Five Year Consolidated
Plan.
091/ LEGAL IMPACT
The agreement would provide Kane County as the lead agency with the final authority to
approve the funding of projects including proposed projects within the city.
rib'
HOME Program
May 21, 2004
Page 4
ALTERNATIVES
1. Do not approve the execution of the HOME Consortium Agreement at this time.
2. Approve the execution of the HOME Consortium Agreement.
Respectfully submitted for Council consideration.
AC
Attachment
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