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G65-01 CITY OF ELGIN ORDINANCE NO. G65-01 AN ORDINANCE AMENDING CHAPTER 2.30 OF THE ELGIN MUNICIPAL CODE, 1976 AS AMENDED, ENTITLED "RESIDENTIAL REHABILITATION PROGRAM" PASSED BY THE CITY COUNCIL OF THE CITY OF ELGIN ON THIS 12TH DAY OF SEPTEMBER 2001 Published in pamphlet form by authority of the City Council of the City of Elgin, Kane and Cook Counties, Illinois, on this 14th day of September 2001. r STATE OF ILLINOIS ) ss. COUNTY OF KANE ) CERTIFICATE I, Dolonna Mecum, certify that I am the duly appointed and acting municipal clerk of the City of Elgin, Cook and Kane Counties, Illinois. I further certify that on September 12, 2001, the Corporate Authorities of such municipality passed and approved Ordinance No. G65-01, which provided by its terms that it should be published in pamphlet form. The pamphlet form of Ordinance No. G65-01, including the Ordinance and a cover sheet thereof, was prepared, and a copy of such Ordinance was posted in the municipal building commencing on September 14, 2001, and continuing for at least ten days thereafter. Copies of such Ordinance were also available for public inspection upon request in the office of the municipal clerk. DATED at Elgin, Illinois, on September 14, 2001. 1:16)--(0-34..-.4 Municipal Clerk (SEAL) tehk Ordinance No. G65-01 AN ORDINANCE AMENDING CHAPTER 2 . 30 OF THE ELGIN MUNICIPAL CODE, 1976 AS AMENDED, ENTITLED "RESIDENTIAL REHABILITATION PROGRAM" BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS : Section 1 . That Chapter 2 . 30 of the Elgin Municipal Code, 1976, as amended, entitled "Residential Rehabilitation Grant Program, " be and is hereby amended to read as follows : "2 . 30 . 010 : TITLE: This Chapter shall be entitled the RESIDENTIAL REHABILITATION PROGRAM. Any reference to the Residential Rehabilitation Program shall be construed to refer to this Chapter and any amendments . 2 . 30 . 020 : DEFINITIONS : tow DWELLING: A building, or portion thereof, used exclusively for human habitation. DWELLING UNIT: One or more rooms containing individualized cooking, sleeping and sanitary facilities which is designed, occupied or intended for use by one household for human habitation. HUD: The United States Department of Housing and Urban Development . LAWFUL SINGLE-FAMILY DWELLING OR RENTAL RESIDENTIAL PROPERTY: A single-family dwelling or rental residential property lawfully established under this Code. MOBILE HOME: A factory assembled structure designed for permanent habitation and so constructed as to permit its transport on wheels, temporarily or permanently attached to its frame, from the place of its construction to the location, or subsequent locations, and placement on a temporary foundation, at which it is intended to be a permanent habitation, and situated so as to permit the occupancy thereof as a dwelling unit for one or more persons. few MOBILITY-LIMITED DISABLED INDIVIDUAL: Any person who is challenged by a physical handicap that requires special fixtures or structural modifications, or some combination thereof, in order to move independently in or about a residential structure . OWNER-OCCUPIED: A single-family dwelling or rental residential property occupied as the permanent bonafide residence or domicile by the record title holder of the real property on which the single-family dwelling or rental residential property is located. PROPERTY MAINTENANCE CODE : The City of Elgin Property Maintenance Code, as amended. RENTAL RESIDENTIAL PROPERTY: A building with not less than one but not more than four dwelling units that are let or intended to be let for rent or lease . RESIDENTIAL REHABILITATION PROGRAM ELIGIBILITY GUIDELINES : Annually revised Section 8 income guidelines used to determine eligibility in the Residential Rehabilitation Program. SINGLE-FAMILY DWELLING: A building with one dwelling unit . For rah the purposes of this Chapter, a mobile home shall constitute a single-family dwelling. SECTION 8 : Section 8 of the United States Housing Act of 1937, as amended. SECTION 8 INCOME GUIDELINES : The household income limits for participation in housing assistance programs authorized by or consistent with the United States Housing Act of 1937, as amended. 2 . 30 . 030 : ADMINISTRATION: The administration of the provisions of this Chapter is hereby assigned to the Community Development Manager or his or her designee . Applications hereunder shall be made to the Planning and Neighborhood Services Department which shall have the authority and responsibility for carrying out the provisions of this Chapter including preparation and periodic revision of the Residential Rehabilitation Program Eligibility Guidelines . 2 rm. 2 . 30 . 040 : ESTABLISHMENT: The following residential rehabilitation programs are hereby established for the City: A. Owner Occupied, Single-Family Dwelling Rehabilitation Program. B. Rental Residential Property (One to Four Dwelling Units) Rehabilitation Program. C. Emergency Repair Program. D. Handicap Accessibility Program. E. Lead-Based Paint Control/Abatement Program. Funding for the established programs may be allocated until the funds budgeted for such use are exhausted. 2 . 30 . 050 OWNER-OCCUPIED, SINGLE-FAMILY DWELLING REHABILITATION GRANT PROGRAM A. Eligible Rehabilitation: Exterior repair or rehabilitation of owner-occupied, lawful single-family dwellings . Eligible assistance shall be limited to the actual costs incurred in meeting the requirements of the Property Maintenance Code. B. Applicant Qualifications : Eligible applicants shall include any person who meets all of the following qualifications : 1. Owns and occupies a lawful single-family dwelling located within the corporate limits of the City. 2. Is at least eighteen (18) years of age . 3. Is a member of a household meeting the current Section 8 guidelines established by HUD. C. Grants : The amount of any grant shall be determined by the Community Development Manager or his or her designee in accordance with the Residential Rehabilitation Program Eligibility Guidelines . 1. Applicants with household incomes meeting the Section 8 3 rextremely low income and very low income guidelines may qualify for a one hundred percent (100%) grant not to exceed five thousand dollars ($5000 . 00) plus a one hundred percent (100%) grant toward lead-based paint control and abatement activities not to exceed two thousand five hundred dollars ($2500 . 00) . 2 . Applicants with household incomes meeting the Section 8 low income guidelines may qualify for a one hundred percent (100%) grant not to exceed three thousand seven hundred and fifty dollars ($3750 . 00) plus a one hundred percent (100%) grant toward lead-based paint control and abatement activities not to exceed two thousand five hundred dollars ($2500 . 00) . D. Partial Grants : Partial grants for completed repairs may be allowed if the applicant ' s financial ability to participate in the rehabilitation program is dependent upon the phasing of repairs . E. Conditions; Agreement Required: Program participation shall require the execution of an agreement between the applicant and + the City. The Community Development Manager, or his or her designee, is authorized to execute the agreement on behalf of the City. The agreement shall include, but is not limited to, the following requirements for the applicant : 1. The applicant shall complete the exterior repair or rehabilitation of the owner-occupied, lawful single- family dwelling designated within the agreement in compliance with the Property Maintenance Code within a six (6) month period from the date of the execution of the agreement . 2. The applicant shall retain ownership of and continue to occupy such rehabilitated owner-occupied, lawful single-family dwelling for a period not less than twelve (12) months following the rehabilitation completion date as determined by the Community Development Manager or his or her designee . Should the applicant relinquish his or her ownership interest during the twelvemonth period, the grant shall be repaid in full . 3. Program participation and exterior rehabilitation activities shall result in full compliance with the 4 rft. Property Maintenance Code as it applies to the exterior of the single-family dwelling. 2 . 30 . 060 : RENTAL RESIDENTIAL PROPERTY (ONE TO FOUR DWELLING UNITS) REHABILITATION LOAN PROGRAM: A. Eligible Rehabilitation: Exterior repair or rehabilitation of lawful rental residential property. Eligible assistance shall be limited to the actual costs incurred in meeting the requirements of the Property Maintenance Code . B. Applicant Qualifications : Eligible applicants shall include any person who meets the following qualifications : 1. Owns a lawful rental residential property located within the corporate limits of the City. 2. Is at least eighteen (18) years of age . 3. When the rental residential property is owner-occupied, is a member of a household meeting the current Section 8 guidelines established by HUD for either extremely low household income, very low household income, or low household income . 4. When the rental residential property is not owner- occupied, is renting, at not more than the Section 8 Fair Market Rent Rates, less than fifty-one percent (51%) of the dwelling units (one of two units; two of three units, or; three of four units) in the rental residential property to households meeting the current Section 8 guidelines established by HUD. C. Zero Interest Forgivable Loans : The amount of any zero interest forgivable loan shall be determined by the Community Development Manager or his or her designee in accordance with the Residential Rehabilitation Program Eligibility Guidelines . 1. Applicants may qualify for a zero interest forgivable loan not to exceed five thousand dollars ($5000 . 00) for each rental residential property provided the applicant' s actual costs incurred in meeting the requirements of the Property Maintenance Code for completing the exterior repairs identified in the 5 r agreement match or exceed the amount of the loan. An appropriate security interest in the full amount of the loan in favor of the City, and in a form as approved by the City, shall be recorded against the title of the rental residential property for which the loan is granted provided the City' s security interest is subordinate to not lower than a second position on the record title to the rental residential property. Zero interest forgivable loans shall be forgiven after five years from the completion date of the improvements, as determined by the Community Development Manager or his or her designee, provided the applicant retains ownership of the rental residential property during that five-year time period. Should the applicant relinquish his or her ownership interest in the rental residential property during the five-year term of the zero interest forgivable loan, the balance of the loan shall be repaid on a pro-rated basis of that five-year term at the time such ownership interest is relinquished. 2. Applicants may also qualify for a one hundred percent (100%) grant toward lead-based paint control and abatement activities not to exceed two thousand five hundred dollars ($2500 . 00) for each rental residential property. D. Partial Loans or Grants : Partial loans or grants for completed repairs may be allowed if the applicant' s financial ability to participate in the rehabilitation program is dependent upon the phasing of repairs . E. Conditions; Agreement Required: Program participation shall require the execution of an agreement between the applicant and the City. The Community Development Manager, or his or her designee, is authorized to execute the agreement on behalf of the City. The agreement shall include, but is not limited to, the following requirements for the applicant : 1. The applicant shall complete the repair or rehabilitation of the rental residential property designated within the agreement in compliance with the current adopted Property Maintenance Code within a six (6) month period from the date of the execution of the agreement . 6 2. The applicant shall retain ownership of and continue to occupy, when applicable, such rehabilitated structure and otherwise continue to satisfy the applicable eligibility requirements set forth in Subsection B of this Section, as amended, for a period not less than five (5) years following the rehabilitation completion date as determined by the Community Development Manager. Should the applicant relinquish his or her ownership interest in the rental residential property during the five-year term of the zero interest forgivable loan or otherwise fail to satisfy the applicable eligibility requirements set forth in Subsection B of this Section, as amended, the balance of the loan shall be repaid on a pro-rated basis of that five-year term at the time such ownership interest is relinquished or at the time any one of the applicable eligibility requirements is no longer being satisfied. 3. Program participation and rehabilitation activities must result in full compliance with the Property Maintenance Code as it applies to the exterior of the rem. rental residential property. 4. An applicant owning rental residential property shall provide the names, addresses, and household incomes for the tenants residing in each dwelling unit . When the rental residential property is not owner-occupied, the applicant shall rent, at not more than the Section 8 Fair Market Rent Rates, not less than fifty-one percent (51%) of the dwelling units (one of two units; two of three units, or; three of four units) in the rental residential property to households meeting the current Section 8 guidelines established by HUD for a period not less than six (6) months following the rehabilitation completion date as determined by the Community Development Manager or his or her designee. 5. The applicant shall retain the rent levels in effect at the time the application was approved for each dwelling unit on the rental residential property for a period of not less than six (6) months following the rehabilitation completion date, as determined by the Community Development Manager, of the of the improvements . 7 2 . 30 . 070 : HANDICAP ACCESSIBILITY PROGRAM: A. Eligible Accessibility Work: Grants shall be awarded for structural modifications to owner-occupied, lawful single-family dwellings and lawful rental residential property for the purchase and installation of handicap accessibility fixtures for dwelling units occupied by households having one or more mobility-limited disabled individuals . Eligible assistance shall be limited to the actual costs incurred in completing the designated accessibility work. B. Applicant Qualifications : Eligible applicants shall include any person who meets the following qualifications : 1. Owns or occupies a lawful single-family dwelling or lawful rental residential property located within the corporate limits of the City. 2. Is at least eighteen (18) years of age . 3. Is a member of a household meeting the current Section 8 guidelines established by HUD. e4. Requires structural building modifications or the installation of handicap accessibility fixtures to serve the accessibility needs of an occupant within the eligible household. C. Grants : Applicants with household incomes at or below the Section 8 low income guidelines may qualify for a one hundred percent (100%) grant not to exceed five thousand dollars ($5000 . 00) plus a one hundred percent (100%) grant toward lead- based paint control and abatement activities not to exceed two thousand five hundred dollars ($2500 . 00) . D. Conditions; Agreement Required: Program participation shall require the execution of an agreement between the applicant, the property owner, when different from the applicant, and the City. The Community Development Manager, or his or her designee, is authorized to execute the agreement on behalf of the City. The agreement shall include, but is not limited to, the following requirements for the applicant : 1. The applicant shall demonstrate the mobility limiting disability of a member of one or more occupant 8 households improvements . which require the accessibility 2. The applicant shall complete the accessibility improvements to the single-family dwelling or the dwelling unit or dwelling units within a rental residential property designated in the agreement within a six (6) month period following the date of the execution of the agreement . 3. An applicant owning rental residential property shall provide the names, addresses, and household incomes for the tenants residing in each dwelling unit . When the rental residential property is not owner-occupied, the property owner shall rent, at not more than the Section 8 Fair Market Rent Rates, not less than fifty-one percent (51%) of the dwelling units (one of two units; two of three units, or; three of four units) in the rental residential property to households meeting the current Section 8 guidelines established by HUD for a period not less than six (6) months following the rehabilitation completion date as determined by the Community Development Manager or his or her designee . 2 . 30 . 080 : EMERGENCY REPAIR PROGRAM: A. Eligible Repair Work: Grants for the emergency repair of water service lines, sanitary sewer laterals, furnaces, electrical systems and water heaters serving owner-occupied, lawful single-family dwellings . Grants for the repair of water service lines shall be limited to the repair of those portions of the water service line extending from the water shut-off valve located in the public right of way servicing the single-family dwelling to the terminus of the water service line at the single- family dwelling. Grants for the repair of sanitary sewer laterals shall be limited to the portion of the sewer extending from the single-family dwelling to the wye at the sanitary sewer main. For the purposes of this Section, the term "emergency" shall mean an unforeseen combination of circumstances that calls for immediate action; a sudden unexpected happening; an unforeseen occurrence or condition; a sudden or unexpected occasion for action, or; a pressing necessity. Grants for the routine repair or periodic maintenance of water and sewer service lines, furnaces, electrical systems and water heaters are expressly precluded from grant eligibility. Eligible assistance shall be limited to the 9 actual costs incurred in performing the designated emergency repairs . B. Applicant Qualifications : Eligible applicants shall include any person who meets the following qualifications : 1. Owns and occupies a lawful single-family dwelling located within the corporate limits of the City. 2. Is at least eighteen (18) years of age . 3. Is a member of a household meeting the current Section 8 guidelines established by HUD for either extremely low household income, very low household income, or low household income . 4. Requires the repair of either a water service line, sewer service line, furnace, water heater or electrical system serving a lawful single-family dwelling located within the corporate limits of the City. C. Grants : Eligible applicants may apply for a one time, one hundred percent (100%) grant, not to exceed three thousand dollars ($3 , 000 . 00) to complete the necessary repairs . D. Conditions; Agreement Required: Program participation shall require the execution of an agreement between the applicant and the City. The Community Development Manager, or his or her designee, is authorized to execute the agreement on behalf of the City. The agreement shall include, but is not limited to, the following requirements for the applicant : 1. When applicable, the applicant shall : a. Demonstrate to the Water Director, or the Water Director' s designee, that the water service line serving the owner-occupied, lawful single-family dwelling requires emergency repair. b. Demonstrate to the Public Works Director, or the Public Works Director' s designee that the sanitary sewer lateral serving the owner-occupied, lawful single-family dwelling requires emergency repair. ec. Demonstrate to the Director of Code Administration 10 and Development Services, or the Director of Code Administration and Development Services' designee, that the furnaces, electrical systems and water heaters serving the owner-occupied, lawful single- family dwelling require emergency repair. 2. The Water Director, Public Works Director, or Director of Code Administration and Development Services, when applicable, shall provide the Community Development Manager with his or her findings regarding the applicant' s proposed emergency repairs prior to the Community Development Manager' s execution of the agreement . 3. The applicant shall complete the repairs designated within the agreement within a sixty (60) day period following the date of the execution of the agreement . 4. The applicant shall retain ownership of the single- family dwelling for a period of six (6) months following the completion date of the improvements, as determined by the Community Development Manager or his or her designee . 2 . 30 . 090 : LEAD-BASED PAINT CONTROL/ABATEMENT PROGRAM: A. Eligible Lead-Based Paint Control or Abatement Work: Exterior or interior control or abatement of lead-based paint on or within a lawful single-family dwelling or a dwelling unit within a lawful rental residential property occupied by a child that has been identified as having high lead levels in his or her blood by the Kane County Health Department . Eligible assistance shall be limited to the actual costs incurred in performing the lead-based paint control or abatement work identified in collaboration with the Kane County Health Department . B. Applicant Qualifications : Eligible applicants shall include any person who meets the following qualifications : 1. Owns a lawful single-family dwelling or lawful rental residential property located within the corporate limits of the City. 2. Is at least eighteen (18) years of age . 11 3. Requires lead-based paint control or abatement of a lawful single-family dwelling or a dwelling unit within a lawful rental residential property that is occupied by a child that has been identified as having high lead levels in his or her blood by the Kane County Health Department, provided however, that the subject child is a member of a household meeting the current Section 8 guidelines . C. Zero Interest Forgivable Loans : The amount of any zero interest forgivable loan shall be determined by the Community Development Manager, or his or her designee, upon information derived from a risk assessment analyzing the incidence of lead- based paint hazards affecting the single-family dwelling or a dwelling unit within a rental residential property and the economic feasibility of eliminating or minimizing the lead-based paint hazards . The amount of any zero interest forgivable loan shall also be in accordance with the current Section 8 income guidelines . 1. Applicants seeking loans for the lead-based paint control or abatement on or within owner-occupied, single-family dwellings or rental residential properties may qualify for a zero interest forgivable loan not to exceed ten thousand dollars ($10, 000 . 00) . An appropriate security interest in the full amount of the loan in favor of the City, and in a form as approved by the City, shall be recorded against the title of the single-family dwelling or rental residential property for which the loan is granted provided the City' s security interest is subordinate to not lower than a second position on the record title to the single-family dwelling or rental residential property. Zero interest forgivable loans shall be forgiven after five years from the completion date of the remedial measures, as determined by the Community Development Manager, or his or her designee, provided the applicant retains ownership of the rental residential property during that five-year time period. Should the applicant relinquish his or her ownership interest in the during the five-year term of the zero interest forgivable loan, the balance of the loan shall be repaid on a pro-rated basis of that five-year term at the time such ownership interest is relinquished. 12 emik 2. Applicants seeking loans for the lead-based paint control or abatement on or within dwelling units that are not owner-occupied may qualify for a zero interest forgivable loan not to exceed five thousand dollars ($5000 . 00) for each dwelling unit provided the applicant' s actual costs incurred in the lead-based paint control or abatement work match or exceed the amount of the loan. An appropriate security interest in the full amount of the loan in favor of the City, and in a form as approved by the City, shall be recorded against the title of the single-family dwelling or rental residential property for which the loan is granted provided the City' s security interest is subordinate to not lower than a second position on the record title to the single-family dwelling or the rental residential property. Zero interest forgivable loans shall be forgiven after five years from the completion date of the remedial measures, as determined by the Community Development Manager, or his or her designee, provided the applicant retains ownership of the single-family dwelling or the rental residential property during that five-year time period. Should the applicant relinquish his or her ownership interest in the single-family dwelling or the rental residential property during the five-year term of the zero interest forgivable loan, the balance of the loan shall be repaid on a pro-rated basis of that five-year term at the time such ownership interest is relinquished. D. Partial Grants : Partial loans or grants shall not be awarded to participants in the Lead-Based Paint Control/Abatement Program. E. Conditions; Agreement Required: Program participation shall require the execution of an agreement between the applicant, the property owner, when different from the applicant, and the City. The Community Development Manager, or his or her designee, is authorized to execute the agreement on behalf of the City. The agreement shall include, but is not limited to, the following requirements for the applicant : 1. The applicant shall complete the lead-based paint control or abatement on or within the dwelling unit designated within the agreement within a six (6) month period from the date of the execution of the agreement . 13 2. The applicant shall retain ownership of and continue to occupy, when applicable, the single-family dwelling or rental residential property on which the lead-based paint control or abatement has been performed for a period not less than five (5) years following the rehabilitation completion date as determined by the Community Development Manager. Should the applicant relinquish his or her ownership interest in the single- family dwelling or the rental residential property during the five-year term of the zero interest forgivable loan, the balance of the loan shall be repaid on a pro-rated basis of that five-year term at the time such ownership interest is relinquished or at the time any one of the applicable eligibility requirements is no longer being satisfied. 3. An applicant owning rental residential property shall provide the names, addresses, and household incomes for the tenants residing in each dwelling unit . When the rental residential property is not owner-occupied, the applicant shall rent, at not more than the Section 8 Fair Market Rent Rates, not less than fifty-one percent (51%) of the dwelling units (one of two units; two of three units, or; three of four units) in the rental residential property to households meeting the current Section 8 guidelines established by HUD for a period not less than six (6) months following the completion date of the lead-based paint control or abatement , as determined by the Community Development Manager. 2 . 30 . 100 : GRANTS; GENERAL: A. Evaluations Required: The Community Development Manager, or his or her designee, shall evaluate or cause to be evaluated all single-family dwellings or rental residential properties for which a grant or loan is sought pursuant to the terms of this Chapter to determine whether they are lawful and to confirm compliance with the Property Maintenance Code. Such evaluation shall be made prior to the execution of any agreement for a grant . A second evaluation shall be made following completion of work and prior to the payment of any grant . B. Applications and Guidelines : The Community Development Manager, or his or her designee, is hereby authorized and directed to prepare and distribute the appropriate forms and 14 elmw guidelines for the implementation of this Chapter. C. Limitations : Grants or loans authorized under this Chapter shall be limited to the reimbursement of actual expenses incurred for eligible repairs, shall be payable only upon satisfactory completion of the designated repairs and shall be limited to the amount approved at the time of execution of the rehabilitation grant agreement . No grants shall be approved for any rehabilitation, repair, reconstruction, lead-based paint abatement or accessibility improvement activities initiated or completed prior to the execution of the rehabilitation grant or loan agreement . The Community Development Manager, or his or her designee, may make direct payments to the contractor performing the work on the eligible repairs upon the satisfactory completion of the designated repairs . D. Extension Of Contract : The Community Development Manager, or his or her designee, may grant a one time extension to a rehabilitation grant agreement authorized under this Chapter not exceeding six (6) months when there are circumstances, difficulties, or hardships that make unreasonable the time for compliance specified by the rehabilitation grant agreement . For the consideration of time extensions, personal circumstances peculiar to the property owner may constitute such circumstances within the meaning of this subsection as may material shortages, labor strikes, or seasonal limitations preventing the completion of the work contemplated in the rehabilitation grant agreement . E. Failure To Perform: Failure to perform the obligations of the rehabilitation grant agreement shall subject the applicant to repayment of any grant monies received. F. Penalty For Misrepresentation or Failure to Comply with Conditions : Any person who wilfully makes any false statement or misrepresentation in obtaining a loan or grant under the provisions of this Chapter, or willfully fails to comply with the applicable conditions affecting that person' s grant or loan shall be subject to a fine of not less than one hundred dollars ($100 . 00) nor more than five hundred dollars ($500 . 00) , shall be required to reimburse the City for the amount of the grant, plus the City' s costs in administering that grant, and shall forfeit the right to any future participation in any program authorized under the Residential Rehabilitation Program Ordinance. " Section 2 . That all ordinances or parts of ordinances in 15 w. conflict with the provisions of this ordinance be and are hereby repealed. Section 3 . That this ordinance shall be in full force and effect upon its passage and publication in the manner provided by law. A Ed Schock, Mayor Presented: September 12, 2001 Passed: September 12, 2001 Omnibus Vote : Yeas : 6 Nays : 0 Recorded: September 13, 2001 Published: September 14, 2001 Attest : --444±42,- — Dolonna Mecum, City Clerk r 16