G51-03 Ordinance No. G51-03
AN ORDINANCE
AUTHORIZING THE ESTABLISHMENT OF A
RESIDENTIAL CONVERSION GRANT PROGRAM
WHEREAS, pursuant to Section 6 (a) of Article VII of the 1970
Constitution of the State of Illinois, the City of Elgin, Cook and
Kane Counties, is a municipality and a home rule unit of government
duly organized and existing under the Constitution and laws of the
State of Illinois; and
WHEREAS, the City of Elgin is a home rule unit authorized to
exercise any power and perform any function relating to its
government and affairs; and
WHEREAS, the City Council deems it to be in the best interests
of the City of Elgin to institute a program whereby owners of
lawful non-conforming multi-family dwellings are given incentives
and financial assistance to convert their properties into their
original, conforming residential use .
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ELGIN, ILLINOIS :
Section 1 . That the Elgin Municipal Code, 1976, as amended,
rft. be and is hereby amended by adding thereto a new Chapter 2 . 29
entitled "Residential Conversion Grant Program" which reads as
follows :
"Chapter 2 . 29
RESIDENTIAL CONVERSION GRANT PROGRAM
2 . 29 . 010 ESTABLISHMENT:
There is hereby established a Residential Conversion
Grant Program (hereinafter referred to as "Program" ) for
the City. Applications for program participation shall be
prioritized by the Community Development Group Director
(hereinafter the "Director" ) to optimize resources and
benefits to the City of Elgin. Grants for the Program
established may be made until funds budgeted for such use
are exhausted.
2 . 29 . 020 PURPOSE:
The purpose of this Program is to provide financial
assistance and incentives for owners of multi-family
residential properties to convert these properties into
their original, conforming residential use and to offset
the loss of revenue experienced by the property owner for
the reduction in dwelling units . Program expenditures
shall be limited to projects resulting in a reduction in
the number of dwelling units on a property and in no
event shall any expenditure be made to increase the
number of dwelling units on a property.
2 . 29 . 030 ADMINISTRATION:
The administration of the provisions of this chapter is
hereby assigned to the Director or the Director' s
designee. Applications for the Program shall be made to
the department of planning and neighborhood services,
which shall have the authority and responsibility for
carrying out the provisions of this chapter. The Director
shall establish any reasonable rules and procedures not
otherwise established by this chapter and not in conflict
with the provisions of this chapter that are necessary
for administration of the Program. Any such rules and
procedures shall be written and published in pamphlet
form and provided to the City Council when amended from
time to time .
2 . 29 . 040 GRANT PROGRAM:
A. Eligible Properties :
Participation in the Residential Conversion Grant Program
is limited to properties that meet the following
criteria:
1 . Currently multi-family residential properties
that are "non-conforming uses" as defined in
Elgin Municipal Code Section 19 . 90 . 015, as
amended, and substantiated as set forth in
said section;
2 . Currently are licensed by the City of Elgin;
3 . Will be converted to their original,
conforming residential use .
4 . Are located outside a floodplain.
B. Eligible Participants :
Eligible program participants must be at least 18 years
of age and be owners of record, mortgagees, or owners
with a beneficial interest in a trust holding record
title to an eligible property. Owners participating in
the Program shall abide by all Program requirements
including but not limited to the commitment to conform to
local building codes and ordinances . Participation in
the Program shall preclude concurrent participation in
the "Historic Architectural Rehabilitation Grant Program"
and the "First Time Homebuyers Down Payment Assistance
Program" . Participation in the City of Elgin' s
"Residential Rehabilitation Grant Program" or any other
em. federally-funded housing rehabilitation program is
precluded for six (6) months following the successful
completion of the conversion and the Grantee ' s receipt of
their final payout .
C. Financial Assistance Grants :
The Program shall reimburse the property owner Twenty
Thousand Dollars ($20 , 000) per dwelling unit eliminated
in the conversion. For properties located in "User
Defined Areas 5 and 22" as set forth in the United States
Census designation (the southeast section of Elgin) , a
maximum of Twenty Three Thousand Dollars ($23 , 000) per
dwelling unit eliminated in the conversion may be
provided. No grant authorized pursuant to this Chapter
shall be made until a letter of completion and compliance
has been issued by the City.
Start up funds may be provided to eligible participants
prior to the commencement of the conversion work. These
funds shall be used to pay for materials and/or secure a
contractor for conversion work. Grantee shall submit a
formal written request for said funds to the Director
justifying the need for such funds. The amount of start-
up funds may be adjusted at the discretion of the
Director depending on the size and scope of the projects.
The start-up funds shall not exceed $10, 000 per unit
converted.
2 .29 . 050 CONDITIONS :
A. Agreement Required: Grant recipients shall be
required to execute an agreement with the City
imposing duties upon the grantee which include, but
are not limited to, the following obligations :
1 . Grantee shall require licensed contractors to
complete all necessary work to accomplish such
a conversion within 180 days from the date the
agreement is fully executed.
2 . Grantee shall not sell, convey or otherwise
transfer their interest in the property being
converted until a letter of completion and
compliance has been issued by the City.
3 . Grantee to the fullest extent permitted by law
shall indemnify, defend and hold harmless the
City, its officers, employees, agents, board
and commissions from and against any and all
eft causes of action, suits, claims for damages,
and any and all other liability, which may
arise out of or relate to the Program
re. agreement or the Program in any way. In the
event of any action against the City, its
officers, employees, agents, boards or
commissions covered by such duty to indemnify,
defend and hold harmless, such action shall be
defended by legal counsel of the City' s
choosing. The provisions relating to such
indemnity, duty to defend and hold harmless
shall survive any termination and/or
expiration of the Agreement .
4 . Grantee shall submit monthly progress reports
detailing the progress being made on the
project or activity and a final report on the
completed project or activity outlining the
goals achieved by the project or activity.
5 . Grantee shall supervise and monitor the
performance of the work in order to ensure
compliance with all grant program requirements
and all applicable city codes and ordinances .
6 . Grantee shall obtain a conversion permit and
all necessary permits for any and all
alterations made, and no such work shall be
initiated until all said permits have been
obtained.
7 . Grantee shall allow periodic inspections by
the City to monitor the progress of the work
including but not limited to a final
inspection.
8 . Grantee shall provide City with copies of all
contracts and work proposals from contractors
performing conversion work, invoices itemizing
eligible material and labor, stamped paid
receipts, final waivers of lien and other
documentation showing proof of payment for
materials and labor for all work completed as
may be required by the Director.
B. Director' s Authorization: The Director is
authorized to execute the Grant Agreement on behalf
of the City.
C. Limitations : Grants authorized under this chapter
shall be limited to the amount approved at the time
of the execution of the Grant Agreement . No grants
shall be approved for expenses incurred prior to
the execution of the Grant Agreement .
D. Failure to Perform: Failure to perform the
obligations of the Grant Agreement shall require
.
rm. the grant recipient to immediately repay any grant
monies received.
E. Penalty for Misrepresentation: Any person,
corporation or unincorporated association willfully
making a false statement or misrepresentation in
obtaining a grant under the provisions of this
chapter shall be subject to a fine of not less than
one hundred dollars ($100 . 00) nor more than five
hundred dollars ($500 . 00) and shall forfeit the
ability for future participation in any Grant
program funded or administered by the City. Any
such person, corporate or unincorporated
association shall also repay any monies received
pursuant to this chapter. "
Section 2 . That all ordinances or resolutions or parts
thereof in 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.
e""` Ed Schock, Mayor
Presented: June 25, 2003
Passed: June 25, 2003
Omnibus Vote : Yeas : 7 Nays : 0
Recorded: June 26, 2003
Published: June 26, 2003
Attest : 171A
Dolonna Mecum, City Clerk
(Pk