G65-01 (2) Ordinance No. G65-01
AN ORDINANCE
AMENDING CHAPTER 2 .30 OF THE ELGIN M ICIPAL 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 "Residentia Rehabilitation Grant
Program, " be and is hereby amended to rea. as follows :
"2 .30 . 010 : TITLE:
This Chapter shall be entitled the RES DENTIAL REHABILITATION
PROGRAM. Any reference to the Residential Rehabilitation Program
shall be construed to refer to this Chapter and any amendments.
2 . 30 . 020 : DEFINITIONS:
DWELLING: A building, or portion thereof, used exclusively for
human habitation.
DWELLING UNIT: One or more rooms co taining 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 .f Housing and Urban
Development .
LAWFUL SINGLE-FAMILY DWELLING OR RENTAL 'ESIDENTIAL PROPERTY: A
single-family dwelling or rental reside tial property lawfully
established under this Code .
MOBILE HOME: A factory assembled structur: designed for permanent
habitation and so constructed as to p_rmit its transport on
wheels, temporarily or permanently attac ed to its frame, from
the place of its construction to the ocation, or subsequent
locations, and placement on a temporary oundation, at which it
is intended to be a permanent habitation, and situated so as to
permit the occupancy thereof as a dwellig g unit for one or more
persons .
MOBILITY-LIMITED DISABLED INDIVIDUAL: Any person who is
challenged by a physical handicap that re•uires special fixtures
or structural modifications, or some c•mbination 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 bonafi.e residence or domicile
by the record title holder of the real property on which the
single-family dwelling or rental resident ' al property is located.
PROPERTY MAINTENANCE CODE: The City of El•in Property Maintenance
Code, as amended.
RENTAL RESIDENTIAL PROPERTY: A building ith not less than one
but not more than four dwelling units tha. are let or intended to
be let for rent or lease.
RESIDENTIAL REHABILITATION PROGRAM ELIGIBILITY GUIDELINES :
Annually revised Section 8 income guide ines used to determine
eligibility in the Residential Rehabilita. ion Program.
SINGLE-FAMILY DWELLING: A building with one dwelling unit . For
the purposes of this Chapter, a mobile 'ome 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 house old income limits for
participation in housing assistance programs authorized by or
consistent with the United States Hou_ing 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 b- made to the Planning
and Neighborhood Services Department hich shall have the
authority and responsibility for carryin•; out the provisions of
this Chapter including preparation and p-riodic revision of the
Residential Rehabilitation Program Eligibility Guidelines .
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2 . 30 . 040 : ESTABLISHMENT:
The following residential rehabilitatio programs are hereby
established for the City:
A. Owner Occupied, Single-Family D elling 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 Pdogram.
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 ac.ual costs incurred in
meeting the requirements of the Property Maintenance Code.
B. Applicant Qualifications : Eligible ai•plicants shall include
any person who meets all of the following qualifications :
1. Owns and occupies a lawful single-family dwelling
located within the corporate lilits 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 sha 1 be determined by the
Community Development Manager or his or her designee in
accordance with the Residential '+ehabilitation Program
Eligibility Guidelines.
1. Applicants with household incom=s meeting the Section 8
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extremely low income and very low income guidelines may
qualify for a one hundred perc=nt (100%) grant not to
exceed five thousand dollars ($5000 . 00) plus a one
hundred percent (100%) grant ■oward lead-based paint
control and abatement activit ' es not to exceed two
thousand five hundred dollars ( '2500 . 00) .
2 . Applicants with household incom:s meeting the Section 8
low income guidelines may qua ify for a one hundred
percent (100%) grant not to exc_ed three thousand seven
hundred and fifty dollars ($3751 . 00) plus a one hundred
percent (100%) grant toward 1=ad-based paint control
and abatement activities not ' o exceed two thousand
five hundred dollars ($2500 . 00) .
D. Partial Grants: Partial grants for completed repairs may be
allowed if the applicant ' s financial ab' lity to participate in
the rehabilitation program is dependen. upon the phasing of
repairs .
E. Conditions; Agreement Required: Prog. am participation shall
require the execution of an agreement be ween the applicant and
the City. The Community Development M-nager, 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 ihe exterior repair or
rehabilitation of the owner-o.cupied, lawful single-
family dwelling designated wi hin the agreement in
compliance with the Property Maintenance Code within a
six (6) month period from the d.te of the execution of
the agreement .
2. The applicant shall retain ownership of and continue to
occupy such rehabilitated .wner-occupied, lawful
single-family dwelling for a period not less than
twelve (12) months followi g the rehabilitation
completion date as determin-d by the Community
Development Manager or his or h-r designee. Should the
applicant relinquish his or er ownership interest
during the twelvemonth period, the grant shall be
repaid in full .
3. Program participation and e. terior rehabilitation
activities shall result in full compliance with the
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Property Maintenance Code as it applies to the exterior
of the single-family dwelling.
2 . 30 . 060 : RENTAL RESIDENTIAL PROPERT (ONE TO FOUR DWELLING
UNITS) REHABILITATION LOAN PROGRAM:
A. Eligible Rehabilitation: Exterior r=pair or rehabilitation
of lawful rental residential property. Eligible assistance shall
be limited to the actual costs inc 'rred in meeting the
requirements of the Property Maintenance diode .
B. Applicant Qualifications : Eligible asplicants shall include
any person who meets the following qualif ' cations :
1. Owns a lawful rental reside tial property located
within the corporate limits of he City.
2. Is at least eighteen (18) years of age.
3. When the rental residential prod,erty is owner-occupied,
is a member of a household meeting the current Section
8 guidelines established by H ID for either extremely
low household income, very low ousehold income, or low
household income.
4. When the rental residential property is not owner-
occupied, is renting, at not m.re than the Section 8
Fair Market Rent Rates, less than fifty-one percent
(51%) of the dwelling units (o e of two units; two of
three units, or; three of fou • units) in the rental
residential property to households meeting the current
Section 8 guidelines established, by HUD.
C. Zero Interest Forgivable Loans : T e amount of any zero
interest forgivable loan shall be deter fined by the Community
Development Manager or his or her designer in accordance with the
Residential Rehabilitation Program Eligib ' lity Guidelines .
1. Applicants may qualify for a zero interest forgivable
loan not to exceed five thousand, dollars ($5000 . 00) for
each rental residential p •operty provided the
applicant' s actual costs inc rred in meeting the
requirements of the Property Maintenance Code for
completing the exterior repa ' rs identified in the
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agreement match or exceed the .:mount of the loan. An
appropriate security interest in the full amount of the
loan in favor of the City, and a form as approved by
the City, shall be recorded ag.:inst 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 res dential property. Zero
interest forgivable loans shall be forgiven after five
years from the completion date of the improvements, as
determined by the Community Devrlopment Manager or his
or her designee, provided 'he applicant retains
ownership of the rental resid-ntial 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, he balance of the loan
shall be repaid on a pro-rated oasis of that five-year
term at the time such o nership interest is
relinquished.
2. Applicants may also qualify fod a one hundred percent
(100%) grant toward lead-bas-d paint control and
abatement activities not to ex eed two thousand five
hundred dollars ($2500 . 00) for -ach 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 rehabilitat 'on program is dependent
upon the phasing of repairs .
E. Conditions; Agreement Required: Program participation shall
require the execution of an agreement be ween the applicant and
the City. The Community Development M_nager, 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 compl-te the repair or
rehabilitation of the rental residential property
designated within the agreement in compliance with the
current adopted Property Mainte ance Code within a six
(6) month period from the date of the execution of the
agreement .
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2. The applicant shall retain owner-hip of and continue to
occupy, when applicable, such ehabilitated structure
and otherwise continue to s.:tisfy the applicable
eligibility requirements set forth in Subsection B of
this Section, as amended, for .: period not less than
five (5) years following the re abilitation completion
date as determined by the Community Development
Manager. Should the applicant relinquish his or her
ownership interest in the rent-1 residential property
during the five-year term .f the zero interest
forgivable loan or otherwise fail to satisfy the
applicable eligibility requir-ments set forth in
Subsection B of this Section, .s amended, the balance
of the loan shall be repaid o a pro-rated basis of
that five-year term at the time such ownership interest
is relinquished or at the ime any one of the
applicable eligibility requirem_nts is no longer .being
satisfied.
3. Program participation and re abilitation activities
must result in full complia ce with the Property
Maintenance Code as it applies to the exterior of the
rental residential property.
4. An applicant owning rental res dential property shall
provide the names, addresses, a d household incomes for
the tenants residing in each swelling unit . When the
rental residential property is of owner-occupied, the
applicant shall rent, at not m.re than the Section 8
Fair Market Rent Rates, not les- than fifty-one percent
(51%) of the dwelling units (o e of two units; two of
three units, or; three of fou • units) in the rental
residential property to households meeting the current
Section 8 guidelines establish:d by HUD for a period
not less than six (6) onths following the
rehabilitation completion date as determined by the
Community Development Manager od his or her designee.
5. The applicant shall retain the dent levels in effect at
the time the application was ap.roved for each dwelling
unit on the rental residential .roperty for a period of
not less than six (6) onths following the
rehabilitation completion date, as determined by the
Community Development Manage. , of the of the
improvements .
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2 . 30 . 070: HANDICAP ACCESSIBILITY PROG• • :
A. Eligible Accessibility Work: Grants shall be awarded for
structural modifications to owner-occupied , lawful single-family
dwellings and lawful rental residential p operty for the purchase
and installation of handicap accessibilit fixtures for dwelling
units occupied by households having one o more mobility-limited
disabled individuals . Eligible assistance shall be limited to the
actual costs incurred in completing the d-signated accessibility
work.
B. Applicant Qualifications : Eligible a•plicants shall include
any person who meets the following qualifications :
1. Owns or occupies a lawful sin•le-family dwelling or
lawful rental residential prop=rty 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.
4. Requires structural building modifications or the
installation of handicap acc=ssibility fixtures to
serve the accessibility needs o : an occupant within the
eligible household.
C. Grants : Applicants with household i comes at or below the
Section 8 low income guidelines may qua ify for a one hundred
percent (100%) grant not to exceed live thousand dollars
($5000 . 00) plus a one hundred percent (100%) grant toward lead-
based paint control and abatement activi ies not to exceed two
thousand five hundred dollars ($2500 . 00) .
D. Conditions; Agreement Required: Program participation shall
require the execution of an agreement bet een the applicant, the
property owner, when different from the -pplicant, and the City.
The Community Development Manager, or h s or her designee, is
authorized to execute the agreement on .ehalf of the City. The
agreement shall include, but is not limited to, the following
requirements for the applicant :
1. The applicant shall demonstrat: the mobility limiting
disability of a member of •ne or more occupant
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households which require the accessibility
improvements .
2. The applicant shall compleue the accessibility
improvements to the single-f-mily dwelling or the
dwelling unit or dwelling u its within a rental
residential property designated in the agreement within
a six (6) month period foll. ing the date of the
execution of the agreement .
3. An applicant owning rental res dential property shall
provide the names, addresses, a d household incomes for
the tenants residing in each • elling unit . When the
rental residential property is of owner-occupied, the
property owner shall rent, at n.t more than the Section
8 Fair Market Rent Rates, no less than fifty-one
percent (51%) of the dwelling u its (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 e-tablished by HUD for a
period not less than six (6) months following the
rehabilitation completion date as determined by the
Community Development Manager o • his or her designee.
2 .30 . 080 : EMERGENCY REPAIR PROGRAM:
A. Eligible Repair Work: Grants for t e emergency repair of
water service lines, sanitary sewer laterals, furnaces,
electrical systems and water heaters •.erving owner-occupied,
lawful single-family dwellings . Grants f.r the repair of water
service lines shall be limited to the rep-ir of those portions of
the water service line extending from t e water shut-off valve
located in the public right of way sery cing the single-family
dwelling to the terminus of the water ser ice line at the single-
family dwelling. Grants for the repair of sanitary sewer laterals
shall be limited to the portion of the s-wer extending from the
single-family dwelling to the wye at the -anitary sewer main. For
the purposes of this Section, the term "e ergency" shall mean an
unforeseen combination of circumstances t at calls for immediate
action; a sudden unexpected happening; a 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 se ice lines, furnaces,
electrical systems and water heaters are expressly precluded from
grant eligibility. Eligible assistance s all 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 li its 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 H • for either extremely
low household income, very low ousehold income, or low
household income.
4. Requires the repair of either a water service line,
sewer service line, furnace, wa er heater or electrical
system serving a lawful single- family dwelling located
within the corporate limits of he City.
C. Grants : Eligible applicants may app y for a one time, one
hundred percent (100%) grant, not to exceed three thousand
dollars ($3 , 000 . 00) to complete the neces-ary repairs.
D. Conditions; Agreement Required: Program participation shall
require the execution of an agreement beiween the applicant and
the City. The Community Development M.nager, or his or her
designee, is authorized to execute the agreement on behalf of the
City. The agreement shall include, but ; s not limited to, the
following requirements for the applicant :
1. When applicable, the applicant -hall :
a. Demonstrate to the Water Director, or the Water
Director' s designee, that the water service line
serving the owner-occupies , lawful single-family
dwelling requires emergenc repair.
b. Demonstrate to the Public Works Director, or the
Public Works Director' s de- ignee that the sanitary
sewer lateral serving the owner-occupied, lawful
single-family dwelling req ires emergency repair.
c. Demonstrate to the Directo , of Code Administration
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and Development Services, .r the Director of Code
Administration and Develop -nt Services' designee,
that the furnaces, electr cal systems and water
heaters serving the owner-occupied, lawful single-
family dwelling require emergency repair.
2. The Water Director, Publi• Works Director, or
Director of Code Administr=tion and Development
Services, when applicable, shall provide the
Community Development Mana•er with his or her
findings regarding the applicant' s proposed
emergency repairs prior to th- Community Development
Manager' s execution of the ag eement .
3. The applicant shall complete the repairs designated
within the agreement within . sixty (60) day period
following the date of tie execution of the
agreement .
4. The applicant shall retain o nership of the single-
family dwelling for a peri.d of six (6) months
following the completion dat- of the improvements,
as determined by the Commun' ty Development Manager
or his or her designee.
2 .30 . 090 : LEAD-BASED PAINT CONTROL/ABATEMENT PROGRAM:
A. Eligible Lead-Based Paint Contro 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 1=ad levels in his or her
blood by the Kane County Health Departme t . Eligible assistance
shall be limited to the actual costs inc rred in performing the
lead-based paint control or abatemenu work identified in
collaboration with the Kane County Health Department .
B. Applicant Qualifications : Eligible a•plicants shall include
any person who meets the following qualif ' cations:
1. Owns a lawful single-family dw:lling or lawful rental
residential property located within the corporate
limits of the City.
2. Is at least eighteen (18) years of age .
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3. Requires lead-based paint cont of or abatement of a
lawful single-family dwelling o 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, t at the subject child is
a member of a household meetin• the current Section 8
guidelines.
C. Zero Interest Forgivable Loans : T e amount of any zero
interest forgivable loan shall be deter fined 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 singl--family dwelling or a
dwelling unit within a rental residenuial property and the
economic feasibility of eliminating or mi imizing the lead-based
paint hazards. The amount of any zero i terest forgivable loan
shall also be in accordance with the curnrent 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 z-ro interest forgivable
loan not to exceed ten thousan• dollars ($10, 000 . 00) .
An appropriate security interes' in the full amount of
the loan in favor of the Ciiy, and in a form as
approved by the City, shall b- recorded against the
title of the single-family dwelling or rental
residential property for whici the loan is granted
provided the City' s security interest is subordinate to
not lower than a second positio 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 owne .ship of the rental
residential property during thaw five-year time period.
Should the applicant relinquis his or her ownership
interest in the during the fiv= -year term of the zero
interest forgivable loan, the b.lance of the loan shall
be repaid on a pro-rated basis of that five-year term
at the time such ownership interest is relinquished.
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2. Applicants seeking loans for the lead-based paint
control or abatement on or wit in dwelling units that
are not owner-occupied may qual fy for a zero interest
forgivable loan not to exceed five thousand dollars
($5000 . 00) for each dwellin'; unit provided the
applicant' s actual costs incurred in the lead-based
paint control or abatement wore 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 fur 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-f.;mily dwelling or the
rental residential property. Z=ro interest forgivable
loans shall be forgiven afte five years from the
completion date of the remedial measures, as determined
by the Community Development anager, or his or her
designee, provided the applica t retains ownership of
the single-family dwelling or the rental residential
property during that five-year ime period. Should the
applicant relinquish his or he • ownership interest in
the single-family dwelling or the rental residential
property during the five-year t=rm 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 interes is relinquished.
D. Partial Grants : Partial loans or gra is shall not be awarded
to participants in the Lead-Based Print Control/Abatement
Program.
E. Conditions; Agreement Required: Prog am participation shall
require the execution of an agreement bet een the applicant, the
property owner, when different from the a.plicant, and the City.
The Community Development Manager, or h s or her designee, is
authorized to execute the agreement on b-half 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 wi hin the dwelling unit
designated within the agreement within a six (6) month
period from the date of the execution of the agreement .
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2. The applicant shall retain owner-hip of and continue to
occupy, when applicable, the si gle-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 renta residential property
during the five-year term of the zero interest
forgivable loan, the balance •f the loan shall be
repaid on a pro-rated basis of that five-year term at
the time such ownership interesi is relinquished or at
the time any one of the applicable eligibility
requirements is no longer being satisfied.
3. An applicant owning rental res . dential property shall
provide the names, addresses, a d household incomes for
the tenants residing in each d elling unit . When the
rental residential property is of owner-occupied, the
applicant shall rent, at not more than the Section 8
Fair Market Rent Rates, not les- than fifty-one percent
(51%) of the dwelling units (o e of two units; two of
three units, or; three of four units) in the rental
residential property to househo' ds 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 co trol or abatement , as
determined by the Community Dev=lopment Manager.
2 .30 . 100 : GRANTS; GENERAL:
A. Evaluations Required: The Community Development Manager, or
his or her designee, shall evaluate or ca se 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 •f any agreement for a
grant . A second evaluation shall be made following completion of
work and prior to the payment of any gran. .
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
guidelines for the implementation of this hapter.
C. Limitations : Grants or loans authorized under this Chapter
shall be limited to the reimbursement of a tual expenses incurred
for eligible repairs, shall be payable .nly upon satisfactory
completion of the designated repairs and -.hall be limited to the
amount approved at the time of execution of the rehabilitation
grant agreement . No grants shall .e approved for any
rehabilitation, repair, reconstruction , lead-based paint
abatement or accessibility improvement a tivities initiated or
completed prior to the execution of the ehabilitation 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 iievelopment 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 ther- are circumstances,
difficulties, or hardships that make unr-asonable the time for
compliance specified by the rehabilitati•n grant agreement . For
the consideration of time extensions, personal circumstances
peculiar to the property owner may consti ute such circumstances
within the meaning of this subsection as ay material shortages,
labor strikes, or seasonal limitations pr-venting the completion
of the work contemplated in the rehabilit-tion grant agreement .
E. Failure To Perform: Failure to perf.rm the obligations of
the rehabilitation grant agreement shall -ubject the applicant to
repayment of any grant monies received.
F. Penalty For Misrepresentation or ailure 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 :ails to comply with the
applicable conditions affecting that pers.n' s grant or loan shall
be subject to a fine of not less than one hundred dollars
($100 . 00) nor more than five hundred doll-rs ($500 . 00) , shall be
required to reimburse the City for the am.unt of the grant, plus
the City' s costs in administering that g ant, and shall forfeit
the right to any future participation in any program authorized
under the Residential Rehabilitation Prog •am Ordinance . "
Section 2 . That all ordinances or marts of ordinances in
15
conflict with the provisions of this ordinance be and are hereby
repealed.
Section 3 . That this ordinance shal be in full force and
effect upon its passage and publication i the manner provided by
law.
s Ed Sch.ck
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 :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
16
NI
��1OFEk
%.,
� " Item No.
City of ElginAgenda
op Q1,
E •-- ....
July 6, 2001 G
I
e
N i
TO: Mayor and Members of the City Council QUALITY HOUSING
FROM: Joyce A. Parker, City Manager
SUBJECT: Revisions to the Residential Rehabilitation Ordinance of
the City of Elgin, Chapter 2 . 30 of the Elgin Municipal
Code
PURPOSE
The purpose of this memorandum is to provide the Mayor and members
of the City Council with information to consider changes to the
City' s Residential Rehabilitation Grant Program and revisions to
the Residential Rehabilitation Grant Ordinance of the City of
Elgin.
rft.
BACKGROUND
In July 2000, the U. S . Department of Housing and Urban Development
(HUD) provided the City of Elgin with the services of a consultant
to assist in a review and potential restructuring of the
Residential Rehabilitation Program. The consultant assessed the
design and procedural aspects of the program and recommended
changes that would simplify program administration and insure
compliance with HUD guidelines and regulations, including lead-
based paint regulations .
Based on the consultant' s recommendations as -well as the City' s
efforts to comply with lead-based paint requirements, the program
guidelines and eligibility requirements are proposed to be revised.
The major changes to the Residential Rehabilitation Program are as
follows :
► The revised Residential Rehabilitation Program consists of 5
components-Single Family Owner Occupied Rehabilitation, Rental
Property Rehabilitation, Emergency Repair, Handicap
Accessibility, and Lead-based Paint Control/Abatement . Please
note the Emergency Repair Program has been expanded to include
rik repairs to water/sewer service, furnace, electrical systems
and water heater emergencies .
l Residential Rehabilitation Ordinance - Revisions
July 6, 2001
Page 2
► To be eligible for program funds, a 1 households must meet
HUD' s Section 8 income limits .
► Housing rehabilitation is limited te exterior improvements
except for qualifying emergency repairs and handicap
accessibility improvements .
► Rental properties will only be eligi.le for forgivable loans
rather than outright grants . If pro.erty owners continue to
own the property for 5 years followinn the award of the loan,
then the loan will be forgiven. Lie s will be placed on the
properties to provide a means to m.nitor ownership of the
properties .
► Funding for the rehabilitation of single family owner occupied
and rental properties will not =xceed $5, 000 with an
additional $2 , 500 toward lead-based paint abatement . This
amount was selected since, historica ly, $5, 000 has been the
average allocation per house and the focus of the program is
to serve as many households as poss ble. Also, lead-based
paint regulations require more omprehensive testing,
evaluation and treatment measures fo . residential properties
em. receiving more than $5, 000 in federa assistance .
► The target area component of the p •ogram has been removed
since the location no longer qualifie_ as a slum and blighted
area.
► Funding for the Lead-based Paint Co' trol/Abatement program
will not exceed $10, 000 per property .nd will be available for
up to three qualified high-risk properties . Residences with
children having high blood lead levees will be targeted for
this program. Properties will be identified and selected in
coordination with the Kane County Heath Department and their
lead testing requirement for kinderg. rten-aged children.
The 2001-2002 Community Development Block erant_(CDBG) program year
will be the first year in which the ity of Elgin will be
administering the new lead regulation-. . The Planning and
Neighborhood Services Department will mon tor the success of this
new ordinance in implementing and complying with these standards .
Periodically, staff will report to the City Council on the
ordinance' s effectiveness.
COMMUNITY GROUPS/INTERESTED GROUPS CONTAC ED
Victor Thornton, Director, Community Plan ing Department, HUD
tow Shirley Williams, Consultant, TONYA, Inc .
t Residential Rehabilitation Ordinance - Rev sions
July 6, 2001
Page 3
(/)4„..--FINANCIAL IMPACT
The City Council allocated $590 , 000 in program year 2001-2002 CDBG
funds to the Residential Rehabilitation Program. The program
guidelines must be revised before these fu ds can be expended. It
is anticipated that the City will receive its CDBG allocation in
August 2001 .
L GAL IMPACT
The City of Elgin' s CDBG Program must be in compliance with federal
lead-based paint regulations (Requireme' ts for Notification,
Evaluation and Reduction of Lead-based Pai, t Hazards in Federally
Owned Residential Property and Housi, g Receiving Federal
Assistance, 24CFR part 35) by August 10 , 2001 . An ordinance to
incorporate the proposed changes to the pr.gram is being drafted.
ALTERNATIVES
To approve the recommended revisions to the Residential
Rehabilitation Program or request alternative revisions to the
Residential Rehabilitation Program.
RECOMMENDATION
The recommendation is that the Mayor and silty Council approve the
changes to the Residential Rehabilitatio Grant Program and the
revised Residential Rehabilitation Grant ordinance of the City of
Elgin, Chapter 2 . 30 of the Elgin Municipa Code .
Respectfull submitted,
(�
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cc
Joyce I�. Pa ker
City Manage .
JAP/jaw
Attachment
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CDBG Residential Rehabilitation 'rograms
Proposed Revisions
A. Name: Single Family Owner Occupied Reha s ilitation Program
Terms: CDBG Grant
Priority: Exterior Improvements
Area: City-Wide
Eligibility: Household income qualification based i n HUD's Section 8 income limits.
1. Extremely Low and Very Low Income (50% or less of median family income)
eligible for 100%grant, City share for rehab wog k not to exceed $5,000,plus 100%
grant toward lead-based paint activities, not to xceed $2,500.
2. Low Income(greater than 50%,but not greater than 80%of median family income)
eligible for 100%grant, City share for rehab work not to exceed$3,750,plus 100%
grant toward lead-based paint activities, not to xceed $2,500.
B. Name: Rental Property (1 to 4 units) Rehabi itation Program
Terms: CDBG 0% interest, forgivable loan .fter 5 years from date of the City's
approval of the improvements. If own:rship changes, loan is paid back on
a pro-rated basis(i.e. 50%repaid if sold n 2'/2 years,20%repaid if sold after
rub* 4 years, etc). Lien is placed on the pro o erty and City will subordinate -no
lower than second position. Lien waiv:d after five years.
Priority: Exterior improvements
Area: City-Wide
Eligibility: Household income qualification based on HUD's Section 8 income limits.
Occupancy: If owner-occupied,owner must meet S-ction 8 income guidelines. If non-
owner occupied, 51% of units must h.,ve households that meet Section 8
income guidelines (1 out of 2 units, 2 o t of 3 units, 3 out of 4 units).
1. 50/50 matching program, City share for reh.b work not to exceed $5,000 per
building plus 100% grant toward lead based p. nt activities, not to exceed$2,500.
C. Name: Emergency Repair Program
Terms: CDBG Grant
Priority: Eligible repairs are limited to water sewer service, furnace, electrical
systems, and water heater emergenc es.
Area: City-Wide
Eligibility: Household income qualification bases on HUD's Section 8 income limits.
Occupancy: Owner occupied single family only.
1. 100% grant, not to exceed $3,000.
2. Residential Rehabilitation Grant Coordinator must be notified by the Water
Department of a water service leak or by the Co Oe Administration Department of an
emergency or code deficient sewer, furnace, el ctrical, or water heater system.
D. Name: Handicap Accessibility Program
Terms: . CDBG Grant
Area: City-Wide
Occupancy: If owner-occupied,owner must meet S-ction 8 income guidelines. If non-
owner occupied, 51% of units must h;ve households that meet Section 8
income guidelines(1 out of 2 units, 2 o t of 3 units, 3 out of 4 units).
1. 100%grant,City share toward improvement not to exceed$5,000,plus 100%grant
toward administrative fees and lead based pain activities, not to exceed $2,500.
E. Name: Lead Based Paint Control/Abatemen Program
Terms: CDBG 0% interest, forgivable loan ,fter 5 years from date of the City's
approval of the improvements. If own-rship changes, loan is paid back on
a pro-rated basis(i.e. 50%repaid if sold in 2 V2 years,20%repaid if sold after
4 years, etc). Lien placed on the prope y, City will subordinate - no lower
than second position. Lien waived aft:i five years.
Area: City-Wide
Occupancy: If owner-occupied,owner must meet 'ection 8 income guidelines. If non-
owner occupied, 51% of units must ave households that meet Section 8
income guidelines (1 out of 2 units, 2 out of 3 units, 3 out of 4 units).
1. Available funding targeted for high risk prope ies as defined by a City/County staff
panel. Properties will be identified based upo8 child lead-level test results.
2. Owner-occupied dwelling unit: 100% oan, City share toward interim
control/abatement not to exceed $10,000.
3. Non-owner occupied dwelling unit: 50/50 patching program, City share toward
interim control/abatement not to exceed $5,001 (in the form of a forgivable loan).
Andrea Paetsch - Elgin's TA-Joyce Parker.doc Page 1
U.S.DEPARTMENT O' HOUSING AND URBAN DEVELOPMENT
Illinois State Office
77 W.Jackson Blvd.
Chicago,Illinois 60604 3507
OFFICE OF
COMMUNITY PLANNING&DEVELOPMENT
July 27, 2000
Ms. Joyce Parker
City Manager
City of Elgin •
150 Dexter court •
Elgin, Illinois 60120 •
•
Dear Ms. Parker: •
SUBJECT: TONYA Rehabilitation Technical Assistance
We closed one of the monitoring findings contingent on your .cceptance of technical •
assistance on the design of your rehabilitation program. That technical assistance is
•
in the form of a report prepared by Shirley Williams of TONY•, Inc., who made an
on-site visit to Elgin on July 11-12, 2000. The report was rec:ived in my officeon
•
July 24, 2000 and is being sent to you as an attachment to th s correspondence.
We find the report to be quite comprehensive and hope that ou will find value in it's
content. I urge you to implement the recommendations in th= report as soon as •
•
practical.
•
This letter is being transmitted electronically (to paetsch_a@i ityofelgin.org) and by
regular mail so that you may make use of the attachments to the report.
If you have questions or need clarification on any aspect of t le report, please call •
Valton Nunn, Community Planning and Development Repres-ntative, at (312) 353-
1696, extension 2709. He will contact Ms. Williams and pro ide you a response. I ••
appreciated the opportunity to meet with you briefly on July 11, 2000 and look •
forward to continuing dialogue to address any issues we ma have.
•
Sincerely,
Victor H. Thornton
Director
Enclosure
Andrea Paetsch - Elgin TA TONYA Report.doc Page 1
HOUSING REHABILITATION TECHNIC • ASSISTANCE
ELGIN, ILLINOIS
The purpose of the technical assistance provided, on Jul, 11-12, 2000, was
to make an assessment of the administration and mana:ement of the city's housing
rehabilitation program; and to recommend fundamental revisions, additions, and
suggestions for general improvement of the existing program.
The assessment included review of the following:
Administrative Guidelines
The City has simple, unencumbered operating procedu es. The approach requires
greater involvement on the part of the participating ho l eowners and contractors.
The process is characterized as:
■ The homeowner obtains estimates from two contractors.
■ Program staff reviews the contractor's propo al for reasonableness of cost
and compliance with program requirements.
(.14 ■ The homeowner selects contractor and monitors contractor performance.
The contractor initiates payment requests.
Essential control is maintained by the City, (not necess.rily in this order) such as:
■ Performs intake to determine homeowner eli:ibility.
■ Inspects property to ensure it is in eligible ar:a and prepares a deficiency
report.
■ Inspects for contract compliance and payme t approval for quality work
only.
■ Upon receipt of appropriate invoices, a chec, for payment of satisfactorily
completed work is basically made payable to homeowner and the
contractor.
The assessment also included:
■ Review of chronological steps from intake to completion of an individual
case. •
■ Review of rehabilitation forms and paperwork. •
_.__., " ,,, ., L) r‘ rteport.doc
t
MAJOR RECOMMENDATIONS FOR IMPROEMENT
1. The Rehab Specialist indicated he makes abo t 200 inspections a year and of the
initial inspections has about 25% fall-out. Cu ently, the initial inspection is
made before the homeowner is determined to •e income eligible. Also, at the
time of the initial inspection and before the dei iciency list is prepared, the
homeowner is given instructions to get two es iimates of the work needed. It is
recommended that the following steps be con•ucted in this order:
(2) Determine that homeowner is income e iigible
(3) Conduct initial inspection
(4) Prepare and provide deficiency list to homeowner
(5) homeowner obtains estimates from two ontractors detailing scope of work
based on the deficiency list
2. The city was cautioned that more attention nee•s to be given to verifying
and reporting all applicant income in order to a.sure compliance with HUD
regulations. Since the requested assistance is d rectly related to household
income, it is extremely important that all of the ousehold income (including
appropriate multifamily rental income) always 'ome under close scrutiny.
For some single family applicants, a summary ol applicant income information
is requested and provided directly by IRS which is certainly acceptable.
However, in other cases, this is not the practice. It is recommended that the city
be consistent in obtaining income verifications: .,lso, there is a need to get clear
understanding of the information provided on the tax forms. Other options
open to the city are to forward verification of em.loyment forms to all identified
employers and/or request latest tax return from a•plicant.
The applicant income should be transferred from the IRS or r verification forms
and reported in the appropriate place on the appli ation."
For the multifamily applicants, all rental income ust be satisfactorily verified
in a consistent manner. It is suggested that the cup ent form used by the city be
revised to include (1) an additional line to show r;ntal income; and (2) add
"Tenant rented from (date) to (date) ." Also, i determining eligibility of
rental income for multifamily applicants only the et income should be used.
Net income from real estate should be calculat•d on the basis of gross rental
r
Andrea Paetsch - Elgin TA TONYA Report.doc rage
income less expenditures for mortgage interest, d-preciation, insurance, real
estate taxes, maintenance, repairs and other cash -xpenditures for property.
The city currently uses a form to obtain tenant inco e information. It is
recommended that the following items be added to t is form: (1) initial rental
date; and (2) number of bedrooms.
3. Dispute Resolution Procedure
The City should develop a procedure for handling d sputes between the
homeowner and the contractor relating to contractee work. A suggested process
is offered below:
1. When a situation evolves into a dispute betw.en the homeowner and
contractor, the Rehab Specialist will sit dow with both parties and listen
to each party's position. The problem will b: evaluated objectively
within the scope of the contract and a decision will be rendered.
2. The Rehab Specialist will record the stated p oblem and his proposed
solution in the case file.
3. If either the homeowner or contractor disagr:es with the Rehab Specialist's
decision or if a decision cannot be reached, t' e Division Manager and/or
an internal panel could be established to inte vene.
4. The Division Manager or panel will listen to all sides of the dispute, evaluate
the work that is in dispute and render a decis on if appropriate.
5. If the homeowner and/or contractor are not s.tisfied with the Division
Manager's decision, the case may be referrer to the Better Business
Bureau (BBB) for mediation/arbitration, if ti is is offered in your State.
6. If your BBB offers this service, each party ill be advised that the decision
of the BBB is legally binding. The Rehab S•ecialist will then develop a
case file to be sent to the BBB, which usuallh includes a referral letter
summarizing the problem, a copy of the reh.bilitation contract, and any
other documents required.
Andrea Paetsch - Elgin TA TONYA Report.doc Page 4
4. Sweat Equity
While sweat equity or the owner contractor approach may very well
expand the rehab work, staff is cautioned to use good judgment in allowing
homeowners to perform work. This practice can put homeowners in debt
situations due to their inappropriate use of equipmen' and materials. There
should be evidence of their skill to perform. Further, it should be clear that
reimbursement will only be made for acceptable wor anship, the cost of
materials, and supplies. Owners acting as their own ontractor should be
- required to signed an acknowledgment form indicati g their ability to perform
the work. (A suggested format attached.)
5. Monitoring of Rents
The City should develop a process for monitoring o i tenant rents for the 6
month period stated in the Administrative Guidelines. A simple suggestion is to
send a form letter to the tenant after the 6 month pe iod requesting the amount
of current rent payment. Then the Rehab Specialist can compare this amount to
the amount paid when the grant was approved. If t e rent level has not been
maintained, the City should take the appropriate act on to recover funds.
6. Fact Sheet
It was noted that when the Rehab Specialist conduc s the initial inspection,
extensive verbal instructions were given to the pote, tial client. As discussed, it
is suggested that a Fact Sheet be developed to sho all the steps required to
followed to obtain assistance. Since homeowners aving work done prior to
approval has been an ongoing problem in the progr:m, it is recommended that a
clause stating something to the effect that "all wor performed prior to approval
is ineligible" be added to the Fact Sheet. This clau.e needs to be communicated
to potential clients verbally and in writing as often :s possible. Also, the City
needs to be consistent in adhering to this rule and .t pay when this occurs.
Andrea Paetsch - Elgin TA TONYA Report.doc rdgC
7. Log Sheet
It is recommended that the City keep a log sheet stap ed to the inside of each
case folder. This log sheet will contain the chronolo!y of events, showing dates
and description of all actions. For example, date of i itial client visit, receipt of
all verifications, inspections, approval, payments, problems pertinent to case,
etc. This practice is very helpful to auditors or anyo ie reviewing case files. (A
suggested format attached)
8. Re-Structuring Financial Assistance •
The budgeted amount for housing rehabilitation is re atively small (about
$700,000) and Admin. (about $80,000). Currently, t e City only has a direct
grant program. The average grant is $4-5,000. It is oted that investor grants
are quite common and this could be a area vulnerabl- to waste. It is strongly
recorhmended that the structure of financial assistan e be carefully re-analyzed
to not only meet needs of the target population but to determine its ability or
inability to pay. Providing a grant to an applicant o i low income may be
•
appropriate while providing the same assistance to . moderate income applicant
may be wasting valuable resources. When people have the ability to pay •
something, this should be encouraged.• Usually a lo v interest loan program is
established to address this situation: However, in your particular case, this may
not be feasible at this time when such factors as ext:nt of rehab, target
population, staff capability, budget, as well as the cost of the new lead-based
paint requirements are considered. It may be bene ficial to consider a Deferred
Loan or Forgivable Loan program which could res It in recapture of some funds
in the future.
The characteristics of a Deferred Loan program are outlined below:
1. The applicant must be an individual or fan ily who owns and
and occupies eligible residential property or is a purchaser
occupant of an eligible property.
2. Applicant must be income eligible accord ing to program
guidelines and has no other means of firm cing repairs and
improvements.
3. Interest rate - 0%
4. Term of loan - Repayment of loan occur- on sale or transfer of interest in
property.
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Andrea Paetsch - Elgin TA TONYA Report.doc rdyc o
The Forgivable Loan is characterized by some of the same, above, except the
repayment is calculated by a graduated reduction of repayment over a
specific term.
The City Attorney's office would need to develo N necessary legal
instruments for the above mentioned programs.
Other options for considering financial restructu ing could include •
conformance to specific stipulations: such as, •
1. Eliminating non-owner occupied inves or grants. To be eligible for an •
investor loan, the applicant should be ai individual or family who
owns and continues to occupy a one to two unit residential •
property. The investment loans could .e intended for homeowners
who have a very low, fixed income. V-ry low income is
interpreted to mean 50% or less than a ea median as adjusted for
household size. •
2. Make 100% grants to those persons wi h income at or below 50% of
the median and who have no other me.:ns of financing repairs and
•
• improvements to home, while applica its earning over 50% and less
than 80% could be eligible for.a lesse grant (maybe 90 or 75% of
maximum grant, or whatever city deter .ines).
3. Matching grant (with personal or priv.;to funds); to be eligible for a
matching grant, the applicant should .e an individual or family
who owns and occupies a one-to- fou dwelling unit residential
property with income at or below 80° The City of Elgin will
match dollar-for-dollar to a maximu of$4,000 (or whatever is
determined by city) .
The above are several creative approaches to r:structuring financial
assistance which may be helpful should the Cit, of Elgin decide to reassess
the needs of the target population.
Andrea Paetsch - Elgin TA TONYA Report.doc
•
9. Lead-Based Paint Requirement
The cost of the new lead-based paint requirement was briefly discussed. For
your information the costs associated with the evaluation and reduction of lead-
based paint hazards in housing structures are eligible expenses under the CDBG.
Typically these expenses might include:
• Inspecting buildings for possible lead-based paint hazards;
• Testing surfaces to see if they contain lead- based paint;
■ The abatement of lead hazards; and
■ Payment of temporary relocation costs to protect residents from hazards
while abatement work is taking place. •
•
The city's grants that are under $4,000 will fall under Approach#1 of the
regulations which presumes that lead-based paint is present and requires the use of
safe work practices on all surfaces being disturbed. The grants that are $5,000 and
over fall under Approach#2 which requires paint testing on deteriorated paint, safe
work practices and unit-wide clearance. Also, the city must distribute lead hazard •
information pamphlets to all homeowners and tenants participating in the program.
The above is a summary of required activities. It is recommended that the city
examine the requirements in more detail to ensure that the rehabilitation program is
in full compliance.
- . ,r„ c�uf i.JJC
. _
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OWNER-CONTRACTOR ACKN•WLEDGMENT FORM
Owner Name
Property Addr•ss
Case No.
I hereby certify that , ' ehabilitation Specialist, has
explained the advantages of selecting a contra ctor to complete the approved
list of work for my property. However, I ha e chosen to act as my own
contractor and perform the work myself bee.use
I acknowledge and understand that I will only be reimbursed for the cost of
materials, supplies and work satisfactorily co pleted.
Submitted by:
Ho U eowner date
Rehabilitation Specialist Approval
Disapproval -
Comments:
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Andrea Paetsch - Elgin TA TONYA Report.doc -�- -
CASE FOLDER LOG
DATE COMMENTS