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G45-85 r-sk Ordinance No. G45-85 AN ORDINANCE AMENDING THE RESIDENTIAL REHABILITATION GRANT ORDINANCE OF THE CITY OF ELGIN WHEREAS, certain areas of the City are characterized by older housing which is or tends to be in a state of disrepair or deterioration and often may be inhabited by persons of limited incomes who are unable to bear the cost of rehabilitation of such residential structures so as to meet minimum housing code requirements; and WHEREAS, the City of Elgin has received a grant from the Department of Housing and Urban Development to provide funds for a program of grants designed to encourage and assist property owners in such areas in rehabilitating residential structures; and WHEREAS, the geographical area described herein and titled the rehabilitation target area has been determined to be in need of significant residential rehabilitation and inhabited by a significant number of persons with relatively low incomes; and WHEREAS, the City of Elgin is a home rule unit within the meaning of the Con- stitution of the State of Illinois and is authorized to exercise any power and perform any function relating to its government and affairs; and WHEREAS, it is within the government and affairs of the City of Elgin and in the interest of the public health, safety and welfare to promote the rehabilitation of the deteriorated residential buildings in the City of Elgin; and WHEREAS, it is necessary and desirable to amend the provisions of the Residential Rehabilitation Grant Ordinance heretofore passed. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section I. That Chapter 2.30 of the Municipal Code of the City of Elgin, 1976, as amended, is hereby amended to read as follows: "2.30.010 Title. This ordinance shall be entitled the "Residential Rehabilitation Grant Ordinance of the City of Elgin". Any reference to the residential rehabilitation grant ordinance of the City shall be construed to refer to this ordinance and any amend- ments thereto. 2.30.020 Administration. The administration of the provisions of this ordinance are hereby assigned to the Department of Community Development. Applications here- under shall be made to the Department of Community Development which shall have the responsibility to carry out the provisions of this ordinance. 2.30.030 Establishment. There is hereby established a Residential Rehabilita- tion Grant Program for the City of Elgin. Grants shall be made until funds allocated for such use are exhausted. 2.30.040 Applicant Qualifications. The following applicants shall be eligible for grants to rehabilitate qualifying residential structures to meet minimum housing code requirements in accordance with the terms of the residential rehabilitation grant program: A. Any individual who 1) owns a structure, within the rehabilitation target area, containing no more than four dwelling units; and 2) is at least 18 years of age. B. Any individual who owns residential property outside the rehabilitation target area but within the corporate limits of the City of Elgin who I) owns and occupies a structure containing no more than four (4) dwelling units; 2) is at least 18 years of age; and 3) meets the current Section 8 low income guidelines as established by the U.S. Department of Housing and Urban Development. 2.30.050 Grants. A. Owner-occupied structures. The amount of any grant shall be determined by the Department of Community Development in accordance with the current grant reimbursement chart as applied to a maximum of $10,000 rehabilitation construction costs. The Department of Community Development shall annually establish a current grant reimbursement chart which establishes the percentage of construction costs to be rebated based upon household size and income. The grant reimbursement chart is based upon the most current Section 8 household income guidelines as established by the U.S. Department of Housing and Urban Development. Households, defined as the applicant and all other persons who will make the applicant's dwelling unit their primary residence for all or part of the next twelve (12) months, may qualify for a 100 percent grant for eligible repairs as follows: I) Household income at 81 to 100 percent of Section 8 very low income limits equals a maximum $1,000 grant. 2) Household income at 61 to 80 percent of Section 8 very low income limits equals a maximum $2,000 grant. 3) Household income equal to or less than 60 percent of Section 8 very low income limits equals a maximum $3,000 grant. For eligible repairs in excess of the maximum 100 percent grant the owner shall receive a percentage grant in accordance with the grant reimbursement chart. Any owner occupant of a 2, 3 of 4 unit residential structure must provide tenant names, addresses, and household incomes and agree to maintain current rents for one year from the rehabilitation completion date. Partial grants for completed repairs may be granted if the ability to participate in the rehabilitation program is dependent upon the staging of repairs. B. Rental property -- Non-owner occupied - Structures located within the rehabilitation target area. The amount of any grant shall be: I) fifteen (15) percent to a maximum of $1,500 per structure based upon a maximum of $10,000 in rehabilitation construction costs; or 2) twenty-five (25) percent to a maximum of $2,500 per structure based upon a maximum of $10,000 in rehabilitation construction costs. The twenty-five (25) percent grant is available to any owner of rental property that can document that at least fifty-one (51) percent of the after rehabilitation occupant households meet the current Section 8 low and moderate income guidelines. Non-occupant owners shall be limited to no more than two (2) struc- tures actively participating in the rehabiltation grant program at any one time. Any non-occupant owner of rental property must provide tenant names, addresses, and household incomes and agree to maintain current rents for one (I) year after the rehabilitation completion date. C. Structures located within the Summit Street rehabilitation target area will be granted an additional five (5) percent grant for eligible rehabilitation work. D. Structures located within the designated Enterprise Zone will be granted an additional five (5) percent grant on eligible rehabilitation work upon certification of the designated Enterprise Zone by the Illinois Department of Commerce and Community Affairs. E. For purposes of determining eligibility, income shall mean the total of the adjusted gross income as defined by the Internal Revenue Code of the United States and, in addition thereto, any interest not included in the adjusted gross income, any capital gain deduction, any dividend exclusion, if not included in adjusted gross income, of all members of the household of the applicant. In the event of a divorce or death the previous year income of a deceased or non-occupant divorced person shall be excluded in determining the household income. The calculation of income shall be based upon the last fully completed tax year. 2.30.060 Grants -- Conditions -- Agreement Required. Any applicant under this ordinance by signing a rehabilitation agreement shall commit to rehabilitate the resi- dential structure which is the subject of the agreement in compliance with the BOCA Property Maintenance Code within a one (I) year time period. Each applicant shall further agree to own such rehabilitated structure for a period not less than one 91) year following the completion of the rehabilitation. Failure by the applicant to perform the obligations of the agreement shall subject the applicant to forfeit the right to enter the program in the future. 2.30.070 Grants -- Eligible Repairs. Grants for the rehabilitation of residential structures shall be limited to actual costs incurred in meeting the requirements of the BOCA Property Maintenance Code. In addition to grants for residential rehabilitation to meet the minimum property maintenance requirements described herein, eligible appli- cants may be entitled to an additional grant incentive of five (5) percent for energy conservation work and five (5) percent for exterior painting. 2.30.080 Grants -- Evaluations Required. The Director of Community Development shall evaluate, or cause to be evaluated, all premises for which grants are sought to eligible repairs, pursuant to the terms of this ordinance. Such evaluation shall be made prior to the signing of any rehabilitation agreement for a grant and following completion of work and prior to the payment of any grant. 2.30.090 Grants -- Applications and Guidelines. The Director of the Depart- ment of Community Development is hereby authorized and directed to prepare and distribute the appropriate forms and administrative policies for the implementation of this ordinance. 2.30.100 Grants -- Limitations. Grants authorized under the City of Elgin Residential Rehabilitation Grant Program shall be limited to the reimbursement of actual expenses incurred for eligible repairs, shall be payable only upon satisfactory proof of payment for rehabilitation work, and shall be limited to the amount approved at the time of the signing of the rehabilitation grant agreement, unless additional work or work orders are verified and approved in writing by the Director of the Department of Community Development or his designee. No grants shall be approved for repairs initiated or completed prior to the signing of the rehabilitation grant agreement. 2.30.110 Rehabilitation Target Area -- Description. Commencing at Jefferson Avenue and North Grove Avenue, east on Jefferson Avenue to Liberty Street, thence south to Franklin Street, thence east to Grand Boulevard, thence northeast to the Kane- Cook county line, thence south to Hammond Avenue, thence west to Grace Street, thence north to Bluff City Boulevard, thence west to Raymond Street, thence north to by-pass U.S. Route 20, thence west to the Fox River, thence northerly to Lake Street, thence east to Wellington Avenue, thence northerly to Prairie Street, thence east to Villa Street, thence northerly to Geneva Street, thence north to Highland Avenue, thence west to Center Street, thence north to North Street, thence west to Spring Street, thence north to Kimball Street, thence west to Brook Street, thence north to Seneca Street, thence west to North Grove Avenue, thence north to Jefferson Avenue to the point of beginning, otherwise known as U.S. Census tracts 8513, 8514 and that portion of 8515 east of the Fox River. 2.30.120 Summit Street Rehabilitation Target Area -- Description. The north one half of Block 39 of A.J. Waldron's Subdivision O.L. I, and the north one half of Blocks 20, 21, 22, 23, 24 and 25 of P.J. Kimball Jr.'s 3rd Addition. 2.30.130 Designated Enterprise Zone -- Description. That area in the central portion of the City of Elgin, East of the Fox River; contained within the Southeast quarter of Section I I, the South half of Section 12, all of Section 13, and the East half of Section 14, all in Township 41 North, Range 8 East, all in Kane County, Illinois. This area is described as follows: Commencing at the intersection of the right-of-way center- lines of Grove Avenue and Summit Street; thence Easterly along said Summit Street centerline to the intersection with the right-of-way centerline of North Liberty Street; thence Southerly along said North Liberty Street centerline to the intersection with the right-of-way centerline of Franklin Street; thence Westerly along said Franklin Street centerline to the intersection of the right-of-way centerline of North Porter Street; thence Southerly along said North Porter Street centerline to the intersection with the right-of-way centerline of Park Street; thence Westerly along said Park Street centerline to the intersection of the right-of-way centerline of North Gifford Street; thence South- erly along said North Gifford Street centerline to the intersection with the right-of-way centerline of Division Street; thence Westerly along said Division Street centerline to the intersection with the right-of-way centerline of North Geneva Street; thence Southerly along said North Geneva Street centerline to the intersection with the right-of-way centerline of Fulton Street; thence Westerly along said Fulton Street centerline to the intersection with the right-of-way centerline of Villa Street; thence Southeasterly along said Villa Street centerline to intersection with the right-of-way centerline of Prairie Street; thence Westerly along said Prairie Street centerline to the intersection with the right-of-way centerline of Wellington Avenue; thence Southeasterly along said Wellington Avenue centerline to the intersection with the right-of-way centerline of Bent Street; thence Westerly along said Bent Street centerline extended West to the intersection with . the Easterly bank of the Fox River; thence Northerly along said Fox River Bank to the intersection with the right-of-way centerline of East Chicago Street; thence Westerly along said East Chiago Street centerline to the intersection with the right-of-way centerline of South State Street; thence Southerly along said South State Street center- line extended to the intersection with the right-of-way centerline of South Street extended Easterly; thence Westerly along said South Street centerline to the intersection with the right-of-way centerline of South Crystal Avenue; thence Northerly along said South Crystal Avenue centerline to the intersection with the right-of-way centerline of West Highland Avenue; thence Easterly along said West Highland Avenue centerline to the intersection with the Easterly bank of the Fox River; thence Northerly along said Easterly bank of the Fox River to the intersection with the right-of-way centerline of Kimball Street; thence Easterly along said Kimball Street centerline to the intersection with the right-of-way centerline of North Grove Avenue; thence Northerly along said Grove Avenue centerline to the point of beginning. 2.30.140 Penalty for misrepresentation in obtaining grant. Any person who willfully makes any false statement or misrepresentation in obtaining a grant under the provisions of this ordinance shall be subject to a fine of not less than one hundred (100) nor more than five hundred (500) dollars and shall forfeit the right to participate in the rehabiliation grant program in the future." Section 2. That this ordinance shall be in full force and effect ten days after its publication in pamphlet form. s/ Richard L. Verbic Richard L. Verbic, Mayor Presented: June 24, 1985 Passed: June 24 , 1985 Vote: Yeas 7 Nays p Recorded: Published: Attest: s/ Marie Yearman Marie Yearman, City Clerk