04-77 Resolution No. 04-77
RESOLUTION
AUTHORIZING FILING OF APPLICATION AND ONE YEAR ACTION PLAN FOR
A GRANT UNDER THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
WHEREAS, Title 1 of the Housing and Community Development Act of 1974 provides
for block grant funding assistance to units of general purpose local governments for the purpose
of strengthening the ability of said governments and elected officials to determine the
community development needs, set priorities, and allocate resources to various activities; and
WHEREAS, the City Council of Elgin, Illinois, has determined that additional emphasis
is needed in the area of community development in order that beneficial solutions to the
problems of slum and blight, and housing and neighborhood deterioration may be addressed.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ELGIN, ILLINOIS:
Section 1. That a submission be made to the Department of Housing and Urban
Development for a grant in the amount of One Million Fifteen Thousand Dollars ($1,015,000)
for the following projects:
RESIDENTIAL REHABILITATION GRANT PROGRAM — City of Elgin's
Planning and Neighborhood Services Department
Grant and loan program for the rehabilitation of housing owned and/or occupied
by low and moderate income families.
Level of Funding: $528,920
CDBG GRANT ADMINISTRATION — City of Elgin's Planning and
Neighborhood Services Department
CDBG Program administration including oversight, management, monitoring and
coordination of program activities; preparation and submission of reports as
required by Federal regulations; public information and assistance.
Level of Funding: $199,000
CHILD CARE CENTER DEVELOPMENT PROJECT — Bethesda
Community Development Center
CDBG funds will be used to pay for a portion of salaries associated with the
operation of the Daycare Program and a new program entitled the Extended Care
Program. This new programs allows low and moderate income families/parents
who work a second shift job obtain affordable daycare.
Level of Funding: $40,000
120 S. STATE STREET ENERGY EFFICIENCY PROJECT — Housing
Authority of Elgin
CDBG funds will be used to pay for the installation of wall mounted air
conditioners in the Housing Authority's Senior Apartment Building. The project
would be benefiting a total of 100 low and moderate income seniors.
Level of Funding: $50,000
COMMUNITY INTEGRATED LIVING ARRANGEMENT (CILA) HOME
REHABILITATION PROJECT—Ecker Center
CDBG funds will be used to renovate the interior and exterior of the CILA Home,
located within Elgin Boundaries. The CILA Home provides housing needs for 8
low and moderate income women dealing with mental health issues.
Level of Funding: $25,000
PUBLIC FACILITY IMPROVEMENT PROJECT—Larkin Center
CDBG funds will be used to rehabilitate the interior and exterior of the
Administrative Building, located at 1212 Larkin Ave., Elgin. The facility serves
as a meeting area for new child, teen, and adult admissions, individual and group
therapy sessions, and Larkin Center's on-campus group home uses the building
daily to prepare and eat meals.
Level of Funding: $35,000
BUILDING REHABILITATION PROJECT—Community Crisis Center
CDBG funds will be used to renovate the interior and exterior of Community
Crisis Center's facility. The facility serves as a hub for families and individuals
seeking shelter from domestic violence, sexual assault, and homelessness.
Level of Funding: $65,000
PROJECT LEARN AND POWER HOUR PUBLIC SERVICE PROJECT —
Boys and Girls Clubs of Elgin
CDBG funds will be used for administering the Project Learn and Power Hour Program.
The funding would pay for a portion of program operating expenses and salaries and
benefits for staff involved with the program. The Boys and Girls Clubs of Elgin provide a
safe haven for low and moderate income families and their children.
Level of Funding: $25,000
HOMELESS SHELTER PUBLIC SERVICE PROJECT—P.A.D.S.
CDBG funds will be used to help administer P.A.D.S. counseling programs. The funding
would pay for a portion of a case worker's salary. Case management services are
provided to help clients break the cycle of homelessness and provide a link to the
additional services offered throughout the area.
Level of Funding: $10,000
BUILDING ACCESSIBILITY AND REHABILITATION PROJECT — Senior
Services
CDBG funds will be used to construct a front entrance accessible for persons with
disabilities and renovate additional areas of the building, located at 101 S. Grove St.,
Elgin
Level of Funding: $37,080
Section 2. That the City Manager is hereby authorized and directed to execute and file
such submission with the Department of Housing and Urban Development and to provide
additional information and furnish such documents as may be required by said Department to
execute such agreements as are required by said Department, and to act as the authorized
correspondent of the City of Elgin.
s/Ed Schock
Ed Schock, Mayor
Presented: March 31, 2004
Adopted: March 31, 2004
Vote: Yeas: 6 Nays: 0
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
DOLONNA MECUM
CITY CLERK
MEMORANDUM
To: Applicant
From: Amy Coyne, CDBG Program Coordinator
Date: October 31, 2003
Re: 2004-2005 Community Development Block Grant (CDBG)
Applications
Enclosed is the 2004-2005 Citizen Participation Plan and CDBG
Application. Proposals are due December 31, 2004. Any additional
proposals are due at the time of the first public hearing. Proposals for
projects submitted after the first public hearing will not be considered for
funding for the 2004-2005 CDBG Program. The following are a list of
dates for the 2004-2005 application/review process (located on pages 7 &
8);
First Public Hearing: List of projects that will be reviewed for the 2004
CDBG Program Year. All applicants should attend this meeting to
respond to questions asked by City Council members.
Time: 6:00 P.M.
Day: Wednesday
Date: January 14, 2004
Place: Elgin Municipal Building, City Council Chambers, 2nd Flr, N.
Tower, 150 Dexter Ct., Elgin, IL
City Council Work-session: Committee of the Whole reviews staff
recommendations and selects possible projects for 2004 CDBG funding.
Applicants should attend this meeting to respond to questions asked by
City Council members.
Time: 5:00 P.M.
Day: Wednesday
Date: February 11, 2004
Place: Elgin Municipal Building, City Council Chambers, 2nd Fir, N. Tower,
150 Dexter Ct., Elgin, IL
Final Public Hearing: Hearing will address any comments made during
the thirty day comment period beginning after the, February 11, 2004, City
Council Work-session.
Time: 7:00 P.M.
Day: Wednesday
Date: March 31, 2004
Place: Elgin Municipal Building, City Council Chambers, 2nd Flr, N. Tower
150 Dexter Ct, Elgin, IL
If your agency would like to submit a project for funding consideration,
please contact Amy Coyne in the Planning and Neighborhood Services
Department at (847) 931-6103 to discuss the project scope, its eligibility
and any need for technical assistance. CDBG Project Proposals should
be completed and submitted to the Planning and Neighborhood Services
Department by 5:00 p.m., Friday, December 31, 2003. All proposals
submitted by that date will be included in the agenda package for the
January 14, 2004 CDBG Program public hearing.
CITIZEN PARTICIPATION PLAN
AND
PROJECT PROPOSAL APPLICATION
Program Year 2004-2005
TED�ti6
City of Elgin
Planning and Neighborhood Services Department
Community Development Block Grant Program
October 2003
...., TABLE OF CONTENTS
Page
1.0 Introduction
1.1 Community Development Block Grant Program 1
1.2 Citizen Participation 1
1.3 Public Comments 1
1.4 Annual Action Plan 2
1.5 Amendments to the Consolidated Plan/Annual Action Plan 2
1.6 Consolidated Annual Performance Evaluation Report 2
2.0 Year 2003-2004 Community Development Block Grant Program
2.1 Program Objective 3
2.2 Program Priorities 3
2.3 Program Requirements 4
2.3.1 National Objectives 4
2.3.2 Eligible Activities 4
3.0 Public Hearing and Project Review Schedule
3.1 First Public Hearing 7
3.2 City Council Work-session 7
rink 3.3 Annual Action Plan Public Review Process 7
3.4 Final Public Hearing 8
3.5 Additional Information 8
3.6 Technical Assistance 8
3.7 Low and Moderate Income Areas by Block Group 9
3.8 Percentage of Tract Population Low/Moderate Income 10
3.9 2000 Census Tracts and Block Group Map 11
4.0 Project Information and Application
4.1 Required Information 12
4.2 Project Submittal 13
4.3 Project Application 14
.,.. 1.0 INTRODUCTION
1.1 Community Development Block Grant Program
Community Development Block Grant (CDBG) funds are distributed by the federal government through
an automatic "entitlement" formula to cities with populations of 50,000 or more persons. This formula is
based upon local statistical needs and is estimated by the federal government. Nationwide, over 1,100
local political jurisdictions are eligible for CDBG entitlement funds. CDBG funds are allocated annually
and may be spent in a variety of ways based on local priorities and CDBG regulations.
In program year 2003-2004, the City of Elgin received a total of$1,038,000 in Community Development
Block Grant funds from the U.S. Department of Housing and Urban Development (HUD). For the 2004-
2005 CDBG Program Year, the City anticipates receiving$1,038,000 in funding through this program.
1.2 Citizen Participation
The City of Elgin recognizes the importance of citizen participation in the development and
implementation of any plan or program. Two public hearings and a City Council work-session have been
scheduled for the development of the Annual Action Plan for program year 2004-2005. The meetings are
open to all interested individuals and organizations so that the public can actively participate in the
planning and development of the City's CDBG Program. Citizens are encouraged to submit project
proposals and to comment on past and proposed CDBG Programs and projects. The dates and times for
these public meetings are contained in this document and will be published in the local newspaper.
resik Additionally, proposed projects and budgets selected by the City Council for CDBG funding will be
published in the local newspaper for citizen review and comment.
A Project Proposal Application has been incorporated in the Citizen Participation Plan for those seeking
CDBG funds for capital or service projects that benefit low and moderate income households. The Plan
is distributed by direct mail to numerous individuals and organizations and is available in the City of
Elgin's Planning and Neighborhood Services Department, Municipal Building, 150 Dexter Court, Second
Floor, Elgin, IL 60120. A copy of Elgin's 2000-2004 Consolidated Plan also is available for review and
reference at this address.
Citizens can also participate in the Annual Action Plan development process by mailing or submitting
comments to the attention of the CDBG Program Coordinator, City of Elgin, Planning and Neighborhood
Services Department, 150 Dexter Court,Elgin,IL, 60120.
1.3 Public Comments
Public notices related to the CDBG Program are published in a local newspaper having wide distribution.
Copies of annual action plans, amendments and performance reports are available at the City of Elgin's
Planning and Neighborhood Services Depai tinent for public information and review. All comments
regarding the CDBG Program shall be directed to the CDBG Program Coordinator, City of Elgin,
Planning and Neighborhood Services Department, 150 Dexter Court, Elgin, IL, 60120. The CDBG
Program Coordinator will provide a written response within 15 working days from the receipt of the
comment.
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1.4 Annual Action Plan
Upon completion of the public hearings, work-session and public review period, the City of Elgin will
develop the final Annual Action Plan. The Annual Action Plan contains information on:
® Population and Housing Characteristics
• Homeless and Other Special Needs
• Consolidated Plan and Strategic Planning Goals
® One Year Use of Funds: Project summaries and eligibility determinations, consistency with goals
and priorities, and geographic distribution of funds
The 2004-2005 Annual Action Plan and an Application for Federal Assistance will be submitted to HUD
by April 15, 2004 for their consideration. The program year will begin June 1, 2004 upon HUD's
approval of the City's Plan. Recipients of the CDBG funds will begin their projects and programs upon
HUD's release of funds for the program year.
1.5 Amendments to the Consolidated Plan/Annual Action Plan
Any substantial amendments to the 2000-2004 Consolidated Plan or an Annual Action Plan will be
presented for citizen review and comment. A substantial amendment is defined as a change in:
1. the allocation priorities or the method of distribution of funds,
2. an activity that was not previously described in the Plan,
r 3. the purpose, scope, location or beneficiaries of an activity, or
4. the project budget that exceeds $25,000,or 20%of the budget.
A 30-day public comment period will be provided before a substantial amendment is implemented. All
citizen comments will be considered in the amendment preparation and approval processes. A summary
of the comments and the reason for accepting or not accepting a comment will be attached to the
substantial amendment.
1.6 Consolidated Annual Performance Evaluation Report
A Consolidated Annual Performance Evaluation Report(CAPER)is prepared at the end of each program
year and is submitted to HUD by August 31s` of that year. This report summarizes the program activity
that has occurred during that program year and the accomplishments achieved. Citizens will have the
opportunity to review the 2003-2004 CAPER and provide comments before the document is submitted to
HUD. A period of at least 15 days will be provided for this purpose. A summary of the comments or
views and any reason for accepting or not accepting a comment will be attached to the CAPER and sent
to HUD.
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raw 2.0 YEAR 2004-2005: COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM
2.1 Program Objective
The primary objective of the Community Development Block Grant Program is:
"To develop viable urban communities by providing decent housing and a suitable living environment
and expanding economic opportunities,principally for persons of low and moderate income."
Consistent with this objective, at Ieast 70 percent of CDBG funds must be used for activities that benefit
low and moderate income persons. No more than 30 percent of CDBG funds may be used for activities
eliminating blight or blighting influences. Public Service activities must not exceed 15 percent of the
total CDBG grant allocation for the City of Elgin. Up to 20 percent of the total CDBG grant can be used
to pay program administration costs.
2.2 Program Priorities
It is the intent of the Elgin City Council to maximize the amount of CDBG funds available to the
community and limit administration costs. Therefore, the Elgin City Council has established the
following priorities for the distribution of CDBG funds.
• Projects focusing on capital improvements.
ro- • Projects having a minimum budget of$25,000.
• Organizations having the capacity to undertake project management responsibilities,
including data collection, management and reporting as required by federal CDBG
regulations.
On October 8, 2003, the Elgin City Council established the rehabilitation of affordable housing as a
priority for the 2004-2005 CDBG program. This activity has been a City priority for a number of years
and is consistent with the 2000-2004 Consolidated Plan. Last year, the City Council allocated $549,000
in CDBG funds to the Residential Rehabilitation Program. This allocation amounted to nearly 53% of
the $1,038,000 that the City of Elgin received from the U.S. Department of Housing and Urban
Development.
Due to the strength and popularity of the Residential Rehabilitation Program, it is anticipated that the
upcoming CDBG allocation for this program will remain at or above the current level. This program not
only helps to maintain the City's affordable housing stock but also leverages private funds for additional
rehabilitation activities.
The Residential Rehabilitation Program will now address lead-based paint hazards. Testing for lead-
based paint and the use of safe work practices by contractors may be required on homes being
rehabilitated with CDBG funds. The actions that will be taken during the rehabilitation process will be
dependent on the age of the home and the extent of the work being performed. Lead-based paint
activities will increase project cost and may require the allocation of additional CDBG funds for housing
rehabilitation purposes.
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. 2.3 Program Requirements
To obtain CDBG funding, all projects must fall under an authorized category of basic eligibility and
must meet a national objective as defined by HUD. Appropriate documentation of eligibility must be
attached to the project application by the proposing agency or organization. All CDBG fund recipients
will be required to sign a Sub-recipient Agreement with the City of Elgin to ensure compliance with
federal requirements and regulations.
2.3.1 National Objectives
Each funded activity must meet one of three national objectives. The national objectives are:
1. Benefit low and moderate income persons or households as defined by Section 8 household
income guidelines. A project may benefit the low and moderate income population by providing
an area benefit, serving limited clientele, resulting in housing that will be occupied by low and
moderate income households, or creating or retaining jobs for low and moderate income persons.
In all situations, at least 51% of the beneficiaries must be identified as low and moderate
income.
2. Prevent or eliminate slums or blight.
3. Meet other community development needs having a particular urgency because existing
conditions pose a serious and immediate threat to the health or welfare of the community and
other financial resources are not available to meet such needs.
2.3.2 Eligible Activities
CDBG funds can only be used for eligible activities as defined by HUD regulations. Types of projects
which may be eligible for funding under the CDBG Program are described in the summary of activities
below.
1. Rehabilitation and Preservation Activities.
a. Rehabilitation assistance for publicly or privately owned residential properties, low-
income public housing, commercial or industrial buildings (if privately owned, funding
is limited to the exterior and the correction of municipal code violations), nonprofit-
owned nonresidential buildings and manufactured housing.
b. Types of assistance. Financing for: the preceding types of rehabilitation activities
through grants, loans, loan guarantees, and interest supplements; buildings and
improvements listed except for the limitation on commercial and industrial buildings;
acquisition of tools to be lent to owners and tenants to carry out rehabilitation activities;
rehabilitation services such as counseling, energy auditing, preparation of work
specifications, inspections and loan processing; and the removal of architectural barriers
that restrict mobility.
c. Historic Preservation. Rehabilitation, preservation or restoration of historic properties
whether publicly or privately owned.
d. Renovation of closed buildings. Renovation of closed buildings, such as closed school
rimib buildings, for use as an eligible public facility or for housing.
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