G51-03 (2) O,dinance No. G51-03
AN ORDINANCE
AUTHORIZING THE ESTABLISHM1NT OF A
RESIDENTIAL CONVERSION GRAN 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 hom: 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 fu ction 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 dwellif gs are given incentives
and financial assistance to convert the ' r 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 Municipa Code, 1976, as amended,
be and is hereby amended by adding the eto a new Chapter 2 . 29
entitled "Residential Conversion Grant i-rogram" which reads as
follows :
"Chapter 2 . 29
RESIDENTIAL CONVERSION G' A T PROGRAM
2 . 29. 010 ESTABLISHMENT:
There is hereby established a Residential Conversion
Grant Program (hereinafter referred o as "Program" ) for
the City. Applications for program p-rticipation shall be
prioritized by the Community Development Group Director
(hereinafter the "Director") to op.imize resources and
benefits to the City of Elgin. Gr_nts for the Program
established may be made until funds .udgeted for such use
are exhausted.
2 .29 . 020 PURPOSE:
The purpose of this Program is t. provide financial
assistance and incentives for own-rs of multi-family
residential properties to convert t ese properties into
their original, conforming resident ' al use and to offset
the loss of revenue experienced by t e property owner for
the reduction in dwelling units . urogram expenditures
shall be limited to projects result ng in a reduction in
the number of dwelling units on a property and in no
event shall any expenditure be mad- to increase the
number of dwelling units on a properly.
2 . 29 . 030 ADMINISTRATION:
The administration of the provisions of this chapter is
hereby assigned to the Director .r the Director' s
designee. Applications for the Prog am shall be made to
the department of planning and nei•;hborhood services,
which shall have the authority and responsibility for
carrying out the provisions of this c apter. 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 pu•lished 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 Conv-rsion Grant Program
is limited to properties that eet the following
criteria:
1. Currently multi-family re-idential properties
that are "non-conforming ses" as defined in
Elgin Municipal Code Se tion 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 .e at least 18 years
of age and be owners of record, mortgagees, or owners
with a beneficial interest in a tuust holding record
title to an eligible property. Own-rs participating in
the Program shall abide by all Brogram requirements
including but not limited to the com itment to conform to
local building codes and ordinance-. . Participation in
the Program shall preclude concurrent participation in
the "Historic Architectural Rehabili ation Grant Program"
and the "First Time Homebuyers Dow, Payment Assistance
Program" . Participation in the City of Elgin' s
"Residential Rehabilitation Grant Program" or any other
federally-funded housing rehabilitation program is
precluded for six (6) months folio ing 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 propertie- located in "User
Defined Areas 5 and 22" as set forth n the United States
Census designation (the southeast section of Elgin) , a
maximum of Twenty Three Thousand Do lars ($23 , 000) per
dwelling unit eliminated in the conversion may be
provided. No grant authorized pursu-nt to this Chapter
shall be made until a letter of compl-tion and compliance
has been issued by the City.
Start up funds may be provided to eligible participants
prior to the commencement of the con ersion work. These
funds shall be used to pay for mater als and/or secure a
contractor for conversion work. Gr.ntee shall submit a
formal written request for said fu ds to the Director
justifying the need for such funds. he 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 exce=d $10, 000 per unit
converted.
2 .29 . 050 CONDITIONS :
A. Agreement Required: Grant ecipients shall be
required to execute an agree' ent with the City
imposing duties upon the grante- which include, but
are not limited to, the follow ng obligations :
1 . Grantee shall require licensed contractors to
complete all necessary wo k to accomplish such
a conversion within 180 d.ys from the date the
agreement is fully executed.
2 . Grantee shall not sell, onvey or otherwise
transfer their interest the property being
converted until a lette of completion and
compliance has been issue• by the City.
3 . Grantee to the fullest ex.ent permitted by law
shall indemnify, defend a d hold harmless the
City, its officers, employees, agents, board
and commissions from and against any and all
causes of action, suits, claims for damages,
and any and all other liability, which may
arise out of or relale to the Program
agreement or the Program any way. In the
event of any action agai st the City, its
officers, employees, agents, boards or
commissions covered by suc duty to indemnify,
defend and hold harmless, -uch action shall be
defended by legal counsel of the City' s
choosing. The provision- relating to such
indemnity, duty to defend and hold harmless
shall survive any termination and/or
expiration of the Agreemen .
4 . Grantee shall submit monthly progress reports
detailing the progress •eing made on the
project or activity and a final report on the
completed project or acti ity outlining the
goals achieved by the proj -ct or activity.
5 . Grantee shall supervise and monitor the
• performance of the work n order to ensure
compliance with all grant program requirements
and all applicable city cooes and ordinances.
6 . Grantee shall obtain a co version 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 Cit with copies of all
contracts and work propos.ls 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 a 1 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 authorize, 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 expense. incurred prior to
the execution of the Grant Agr-ement .
D. Failure to Perform: Failure to perform the
obligations of the Grant Agreement shall require
the grant recipient to immediat-ly repay any grant
monies received.
E. Penalty for Misrepresentatioi : Any person,
corporation or unincorporated a-sociation willfully
making a false statement or m srepresentation in
obtaining a grant under the •rovisions of this
chapter shall be subject to a f 'ne of not less than
one hundred dollars ($100 . 00) nor more than five
hundred dollars ($500 . 00) and shall forfeit the
ability for future participa. ion in any Grant
program funded or administered by the City. Any
such person, corporate ' r unincorporated
association shall also repay -ny monies received
pursuant to this chapter. "
Section 2 . That all ordinances o resolutions or parts
thereof in conflict with the provisions of this ordinance be and
are hereby repealed.
Section 3 . That this ordinance sh- ll be in full force and
effect upon its passage and publication ' n the manner provided by
law.
s/ Ed S. hock
Ed Schoc , Mayor
Presented: June 25, 2003
Passed: June 25, 2003
Omnibus Vote : Yeas : 7 Nays : 0
Recorded: June 26, 2003
Published: June 26, 2003
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
OF f<
Q �._ � ' § Agenda Item No.
City of Elgin _
E "3
G .�r
June 6, 2003 ir
N a ,
QUALITY HOUSING
TO: Mayor and Members of the City louncil
FROM: David M. Dorgan, City Manager l�
Janice Ward, Senior Planner
SUBJECT: 2003 Residential Conversion Grant Program
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with information to consider the
proposed Residential Conversion Grant Program policies and
procedures .
BACKGROUND
In November 2002 , City staff assumed the administrative
responsibilities for the Residential Conversion Grant Program
from Neighborhood Housing Services (NHS) . Internal procedures
for property inspections and the payment of grant funds were
developed to monitor and process conversions currently underway.
In order to prepare for the 2003 Residential Conversion Grant
Program and the intake of applications, City staff worked with
NHS to restructure the program policies and operating
procedures . The Program, with proposed changes, was to be
presented to the Committee of the Whole for review on April 9,
2003 . However, the item was tabled in order to make additional
adjustments and revisions to the program.
Staff has further refined the 2003 Residential Conversion Grant
Program policies and simplified several provisions . The original
program' s provision to reimburse the property owner a flat rate
of $20, 000 (or $23 , 000 for the southeast section of Elgin) per
unit converted was reinstated into this revised proposal . There
was a concern that the former proposal, which provided a lesser
dollar amount per converted unit , would detrimentally impact the
level of program participation.
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Residential Conversion Grant Program
June 6, 2003
Page 2
Additionally, the policy to provide onl one grant payment to
the property owner upon completion o' the conversion and
compliance with all program requirements as amended in order to
accommodate property owners who do n.t have the financial
resources to initiate the conversion work. The new policy
provides that eligible applicants may receive up to $5, 000 in
start-up funds to pay for materials and or secure a contractor
for the conversion work and up to $10, 080 at the discretion of
the Community Development Group Director depending on the size
of the project and extenuating circumst.nces . A lien will be
placed against the property to guarantee the return of funds in
the event the conversion is not completed.
These changes, along with program eligibility requirements, are
detailed in this memo' s attachment . The attached program
description also describes the following program policies : 1)
concurrent participation in other housing grant programs is
precluded to avoid duplication of fundi g; 2) all electrical,
rk mechanical and plumbing work must be p-rformed by a licensed
contractor to guarantee conformity ith city codes and
procedures; 3) program participants lust submit all paid
invoices, receipts and waivers of lien irom all contractors to
verify that materials and labor have .een paid in full; 4)
periodic inspections and activity reports are required to ensure
the participant' s compliance with progra procedures; and 5) the
property conversion must be completed wit in a six-month period.
COMMUNITY GROUPS/INTERESTED PERSONS CONTA4TED
The Executive Director from the Neighborhood Housing Services
and a representative from the Board of Directors of the
Neighborhood Housing Services .
Yltk-'
FINANCIAL IMPACT
There are sufficient funds budgeted and available ($345, 131) in
the Riverboat Fund, account number 275-0000-791 . 92-32 , project
number 079880 for the Residential Co ersion Grant Program.
Currently, forty-eight (48) potential applicants are on a
waiting list and have requested progra applications . These
applicants will be processed on a first come first-serve basis .
' Any applicant that cannot be served from the 2003 program budget
r Residential Conversion Grant Program
June 6, 2003
Page 3
will be considered for the 2004 Resid=ntial Conversion Grant
Program given budgeted dollars are availaole.
LEGAL IMPACT
�A revised Grant Agreement and Ordinance ill be prepared by the
City' s Corporation Counsel .
ALTERNATIVES
1 . Maintain the previous Residential Conversion Grant Program
structure and policies as implemented by NHS .
2 . Approve the proposed Residential Conversion Grant Program
structure and policies .
3 . Establish a different set of policies to restructure the
Residential Conversion Grant Program
eill- RECOMMENDATION
It is recommended that the City Council approve the proposed
Residential Conversion Grant Program st •ucture and policies as
outlined in this memorandum.
Respectfully submitted for Council consid:ration.
JAW
Attachment
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rik DRAFT
RESIDENTIAL CONVERSION GRANT PRO GRAM AGREEMENT
THIS AGREEMENT is made and entered into this day of ,2003,by
and between the City of Elgin, Illinois, a municipal corporatio , (hereinafter referred to as "City")
and , the title holder or sole beneficial
owner of the real property located at (hereinafter referred
to as the "Grantee").
WITNESSETH:
WHEREAS, the Grantee is the owner of the property co only known as
, Elgin, Illinois (hereinafter referred to .s the "Subject Property"); and
WHEREAS, the Grantee has made an application (Ex 'bit A) to the City of Elgin for a
Residential Conversion Grant Program grant to be used for ce ain interior and exterior structural
renovations to the Subject Property thereby returning the Subje't Property to its original residential
use; and
WHEREAS, the City has agreed to provide a Residential onversion Grant Program grant to
the Grantee for certain interior and exterior structural renovatio s to the Subject Property pursuant to
the terms and conditions of this Agreement and Chapter 2.29 I f the Elgin Municipal Code.
NOW, T HEREFORE, for and in consideration of the utual promises and undertakings
contained herein,and other good and valuable consideration,th- receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:
1. Grantee shall remove dwelling unit(s) at
thereby restoring the property to its original use as a residence.
2. Grantee represents and warrants that he/she is the own-r of the Subject Property and the
structure thereon which is to be converted to its original r:sidential use as defined above,and is
at least eighteen (18)years of age.
3. Grantee shall obtain a Conversion Permit and insure that all necessary permits for all interior
and exterior alterations to be performed on the Subject Prey perty are obtained,prior to initiating
any work. All such permits shall be retained until complr tion of the work.
4. Grantee shall complete all work proposed under this • greement in conformance with all
applicable City codes and ordinances. By signing this Ai eement,the Grantee acknowledges
receipt of a copy of the City of Elgin's A Residential IP ner's Guide: When a Permit is
rak Required.
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5. Pursuant to an inspection by City of the Subject Property, the City has prepared a Work List
outlining each task on the interior and/or exterior of the S bject Property requiring alteration,
modification or repair. Said Work List is attached hereto as Exhibit B to this Agreement.
6. Grantee shall submit to the City monthly progress reports s etailing the progress being made on
the project and a final report on the completed project.
7. Grantee shall not sell,convey or otherwise transfer their i terest in the Subject Property prior
to the issuance of a letter of completion and compliance sy the City.
8. Upon completion of the prescribed conversion work, Gr. tee shall provide to the City:
a. Copies of all contracts/work proposals from contra.tors performing conversion work.
b. Invoices itemizing eligible material and labor ani stamped paid receipts therefore
evidencing proof said materials and labor have bee paid in full.
c. Final waivers of lien from all contractors that perfo ed conversion work on the Subject
Property.
d. The Code Administration and Development Servic:s Department letter confirming the
final inspection and the change in land use to the o ginal residential use.
9. Once the Subject Property is converted,the Grantee and G antee's successors and assigns shall
maintain the Subject Property as a lawful,conforming resit ential property in compliance with
all applicable ordinances and requirements of law.
10. Grantee agrees that his participation in the Residentia Conversion Grant Program shall
preclude his concurrent participation in the "Historic • chitectural Rehabilitation Grant
Program" and the "First-time Homebuyer's Down-Pa ent Assistance Program". Grantee
agrees not to participate in the City of Elgin's"Residenti.1 Rehabilitation Grant Program"or
any other federally-funded housing rehabilitation progra for six (6) months following the
successful completion of the conversion and the Grantee s receipt of their final payout.
11. The City agrees to pay to the Grantee the total grant pa ent not to exceed$ for
the conversion of the Subject Property. The maximum t. al reimbursement shall in no event
exceed the maximum amounts as provided in Elgin Mu icipal Code Section 2.29.040C, as
amended.
12. The City agrees to provide the funding provided for in thi-Agreement within 30 days from the
completion of the conversion work and submittal of all s.cumentation that substantiates the
completion of work and compliance with the City Municipal Code and regulations
promulgated there under. Required documentation incl des verification that permits were
issued and closed,substantiation that all materials and las or related to the conversion work as
specified in the conversion work list have been paid in fu 1, final waivers of lien, and land use
status change letter(Exhibit C).
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A. If requested,up to$5,000 in start-up funds may be p •vided to eligible participants prior
to the commencement of the conversion work. T ese funds are to pay for materials
and/or secure a contractor for the conversion work. he applicant must submit a written
formal request to the Community Development Gr.up Director justifying the need for
such funds and the amount of funds required. Th- amount of start-up funds can be
adjusted at the discretion of the Community Develo ement Group Director depending on
the size of the project and extenuating circumstance s but shall not exceed $10,000 per
unit converted.
B. In the event that start-up funds are provided, the iantee shall sign the Property Lien
Form, as found in Exhibit D. Said lien shall be in thr amount equal to the start-up funds
provided. Upon the Grantees receipt of the start-up' nds,the City shall file and record
said lien against the subject property as security in th- event the Grantee fails to complete
the conversion project as described herein. Up en satisfactory completion of said
conversion project, the City shall perform the nece•sary actions to release the lien that
has been recorded against the Subject Property.
13. Grantee hereby agrees to the fullest extent permitted by aw to indemnify, defend and hold
harmless City, its officers, employees, agents,boards and commissions from and against any
and all causes of action, suits, claims for damages, and a y and all other liability,which may
arise out of or relate to this Agreement or Grant Program i i any way. In the event of any action
against the City, its officers, employees, agents, boar.s or commissions covered by the
foregoing duty to indemnify,defend and hold harmless,s ch action shall be defended by legal
counsel of the City's choosing. The provisions of this par.graph shall survive any termination
and/or expiration of this Agreement.
14. Grantee shall complete the removal of units specified in P. agraph 1 and each task as identified
in Exhibit B within 180 days from the date this Agreeme t is fully executed.
15. Grantee shall supervise and monitor the performance ofth work in order to ensure compliance
with all grant program requirements and all applicable ci y codes and ordinances.
16. This Agreement shall not be construed to create a partnership,joint venture or employment
relationship between the parties hereto.
17. This Agreement shall be subject to and governed by t e Elgin Municipal Code, 1976, as
amended,including,but not limited to,Chapter 2.29 thereof entitled"Residential Conversion
Grant Program" and the laws of the State of Illinois. I e parties hereto hereby agree that
venue for any and all actions which may be brought by e.ch and either of them to enforce the
provisions of this Agreement shall be in the Circuit Cou of Kane County, Illinois.
18. The terms of this Agreement shall be severable. In the event that any ofthe terms or provisions
of this Agreement are deemed to be void or otherwise unenforceable for any reason, the
�/r• remainder of this Agreement shall remain in full force a d effect.
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Signatures:
City of Elgin Property Owner
Date: Date:
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EXHIBIT A
RESIDENTIAL CONVERSION GRANT PROGRAM
APPLICATION
Name of Grantee Grantee's SS#
Property Address Zip Code
Grantee's Address
City State Zip Code
Phone Numbers: Home Work Cell Fax
Current# of Units Current#of Bedrooms: Unit 1 Unit 2 Unit 3 Unit 4
Total# of Units to be Eliminated Final# of Units after Conversion
Property is Held by: Individual Corporation Partnership Trust
Federal Tax I.D. Number(for other than an Individual):
Date Property was Acquired Outstanding Code Violations Yes No
Description of Proposed Conversion Work
Estimated Cost of Conversion Work
I/We hereby represent that the information contained in this app:ication and documentation provided
is true and correct to the best of my/our knowledge.
Grantee Date
Janice Ward, Senior Planner Date
City of Elgin
Mark Biernacki, Community Development Group Director Date
City of Elgin
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RESIDENTIAL CONVERSION GRAN PROGRAM
APPLICATION (Continues)
List of Required Attachmen s
Please attach the following items to your completed applicatio .
1. Proof of ownership of the Subject Property to be co verted.
• Property Warranty Deed,mortgage statement a d title insurance document
and
• Most recent property tax statement
2. Copy of homeowners insurance and verification th. flood insurance is not required.
3. Verification of property owner's Social Security nu ber.
• Driver's License
or
• Social Security Card
4. Copy of current rental license.
5. Proof as required by Elgin Municipal Code Sectio 19.90.015 that said property is a
lawful "non-conforming use",pursuant to the land se review.
The following items will be required when applying for the Coy version Permit:
6. Written description of the work required for the co version.
7. Drawings showing existing floor plan(prior to cony rsion)and proposed floor plan(after
conversion).
8. Cost breakdown for conversion work.
9. Property Lien Form.
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EXHIBIT B
WORK LIST
TO BE INSERTED HE '
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EXHIBIT C
RESIDENTIAL CONVERSION GRAN PROGRAM
PROGRAM DESCRIPTIO
What is the Residential Conversion Grant Program?
The Elgin City Council adopted this financial incentive program in June of 1995 to assist in the
conversion of multi-family housing units back to their origin.1 residential use. This program is
available to private individuals, corporations, and not-for-pro i t organizations. Both non—owner
occupied and owner occupied properties are eligible for this ding.
How Can I Use the money?
The Residential Conversion Grant Program is designed to pro ide funding for the conversion of
multi-family unit residences back to their original conforming I se. The program provides funding
for construction expenses related to the conversion of the •roperty. Expenses related to the
conversion may include but are not limited to:
• Removal of electrical and gas meters and rewiring
• Removal of kitchens and associated plumbing
• Removal of exterior stairwells and exits
• Elimination of off-street parking and associated landscapi g
This Program also is designed as an incentive grant program to ompensate property owners for the
loss of rental income. Therefore,the Program provides partici o ating property owners $20,000 per
unit removed(or$23,000 for properties located in"User Defined Areas 5 and 22"as set forth in the
U.S. Census designation--the southeast section of the City •f Elgin) to not only pay for the
conversion work but also to provide an additional financial incentive to the property owner.
Terms and Conditions of Grant Program
• Property owners must obtain a conversion permit and all o er applicable permits from the City
of Elgin prior to initiating work on the Subject Property.
• Subject Property must be a registered rental property with t - City of Elgin prior to application to
the program.
• Subject Property must be a lawful non-conforming use pursuant to the Elgin Zoning Ordinance
and land use review.
• All electrical,mechanical and plumbing work must be per formed by a licensed contractor.
• Initial, interim and final inspections will be performed by she City's Code Administration and
Development Services Department. All work completed ust meet all local building/zoning
requirements and shall be completed under permits se ured by the contractor or, when
appropriate, the property owner.
• Grant funds will be paid in full upon completion of all cony;rsion work and compliance with all
other applicable codes and ordinances. The following item' are required prior to the distribution
of funds:
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1) The receipt of a land use status change letter by the City's Department of Code
Administration and Development Services;
2) An approved final i nspection oft he S ubject Property b y the C ity's C ode Enforcement
Officer;
3) The property owner's submittal o f t he following d oc ents t o the administrator o f the
Residential Conversion Grant Program:
a. Contracts/work proposals from all contractors perfoi ing conversion work.
b. All invoices itemizing eligible materials and labor .ssociated with the conversion.
c. Stamped paid receipts and cancelled checks that indi ate that all materials and labor have
been paid in full.
d. Waivers of lien from all contractors performing co ersion work.
e. Land use status change letter.
• Residential Conversion G rant Program p articipants w ill of s ell o r o therwise c onvey t heir
interest in the Subject Property prior to completing the cony;rsion and fulfilling their obligations
pursuant to the Agreement.
• Participation in the Residential Conversion Grant Program ill preclude concurrent participation
in the City's Historic Architectural Rehabilitation G .nt Program and the First-time
Homebuyer's Down-Payment Assistance Program. Grantee agrees not to participate in the City
of Elgin's "Residential Rehabilitation Grant Program" or .ny other federally-funded housing
rehabilitation program for six(6)months following the succ-ssful completion of the conversion
and the Grantee's receipt of their final payout.
Does my house qualify?
Properties eligible for participation in the Residential Conversion Grant Program are limited to:
• Properties that are multi-family "non-conforming uses" a• defined in Elgin Municipal Code
Section 19.90.015, as amended;
• Properties currently registered/licensed by the City of Elgi ;
• Properties that will be converted to their original, conform'ng residential use; and
• Properties outside a floodplain.
Do I qualify for the Program?
Eligible program participants include owners of record, mort:agees, or owners with a beneficial
interest in a trust. Owners participating in the program shal abide by the requirements of the
Residential Conversion Grant Program including the commitm;nt to convert multi-family units and
conform to local building codes.
Documentation
To be eligible for the program,participants are required to pro ide the following documents at the
time of application:
• A complete Residential Conversion Grant Program applic.tion;
• Proof of ownership: Warranty Deed,mortgage statement .nd title insurance document;
• Homeowner's insurance statement;
• Proof that property is not located within a flood plain;
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• Copy of the rental registration/license and land use review; and
• Proof that the property is a lawful non-conforming use.
How are projects selected?
Grant applications are accepted by the City of Elgin's Pl. ing and Neighborhood Services
Department at 150 Dexter Ct., Elgin, IL 60120 throughout the year. Projects are selected by the
City's Community Development Group Director to optimize esources and benefits to the City.
Applications must be complete in order to be considered for th program.
What is the Step-By-Step Process for the Residential Cony;rsion Grant Program?
• Obtain an Application from the City of Elgin,Planning and eighborhood Services Department,
150 Dexter Ct.,Elgin, 60120, located on the second floor o the Municipal Building or contact
the Program Administrator at 847-931-5911 to have an ap lication mailed to you.
• Submit your completed Application with all attachme s to City of Elgin, Planning &
Neighborhood Services Department, Residential Conversion Grant Program, 150 Dexter Ct.,
Elgin, 60120.
• City staff reviews your Application to determine your eligi•ility for the program.
A Department of Code Administration(hereinafter referred to herein as"DCA")representative
contacts you by phone to verify your eligibility for the Res dential Conversion Grant Program
and to schedule an appointment for an initial inspection of our property.
• During the inspection,the DCA representative prepares a ork list that itemizes the alterations
r5 needed to perform the conversion as well as improvements ieeded to eliminate code violations.
The City may identify other modifications that must be corn i leted to accomplish the conversion.
Following the inspection, you will receive a letter from I CA that lists the work items and
permits that are required to perform the conversion and elii Mate any code violations.
• The property owner applies for a conversion permit. Draw'ngs showing the existing floor plan
(prior to conversion) and proposed floor plan(after conver•ion)must be submitted to DCA for
approval.
• The City prepares a Residential Conversion Grant Agre:ment which is then signed by the
property owner(s) and the City of Elgin representative.
• Once the Agreement is signed,contractors/property owners obtain permits as identified by DCA
and work can commence.
• DCA performs periodic inspections during the conversion. ' en the conversion is complete and
all code violations are eliminated, the property owner not fies DCA and a final inspection is
scheduled and performed.
• Once a successful final inspection is performed,the prope owner receives a Land Use Status
Change Letter from DCA approving the conversion and co firming the change in land use to the
original residential use.
• The property owner provides the Residential Conversion G ant Program administrator with the
following documentation:
a. Contracts/work proposals from all contractors perform ng conversion work.
b. All invoices itemizing eligible materials and labor associated with the conversion.
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c. Stamped paid receipts and cancelled checks that indica e that all materials and labor have
been paid in full.
d. Waivers of lien from all contractors performing conversion work.
• The program administrator processes your payment. A chec is typically available 30-days after
submittal of all required documents. The program administ ator contacts the property owner on
the day the check is available. The City will only release t e check to the property owner.
Who can answer any other questions I might have?
Call the City of Elgin,Planning and Neighborhood Services Des artment at 847-931-5910 for further
information.
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eink
EXHIBIT D
PROPERTY LIEN FO '
TO BE PREPARED BY THE CITY'S LEG• L DEPARTMENT
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[ a
`� OF E.4 6,
` City of Elgin Agenda Item No.•
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April 4 , 2003 i
Y}
geTO: Mayor and Members of the City Council N �''
QUALITY HOUSING
FROM: David M. Dorgan, City Manager $ )
Jan Ward, Senior Planner
SUBJECT: 2003 Residential Conversion Gra t Program
PURPOSE
The purpose of this memorandum is to provide the Mayor and
members of the City Council with info mation to approve the
proposed Residential Conversion Grant Program Ordinance and
grant agreement .
BACKGROUND
The Residential Conversion Grant Program promotes the conversion
of multi-family residences back to their original residential
use . Property owners are reimbursed up to $20 , 000 ($23 , 000 in
the South East Elgin Neighborhood) for construction expenses
related to the conversion of the property and for the loss of
rental income . To qualify for the program, the property must be
a lawful , non-conforming multi-family land use that is licensed
by the City of Elgin as a rental property. Participants are
required to convert the property to the original, conforming
residential use .
Neighborhood Housing Services (NHS) has administered the
Residential Conversion Grant Program for the City of Elgin since
1995 . In November 2002 , City staff assumed the administrative
responsibilities for the program. Internal procedures for
property inspections and the payment of grant funds were
developed to monitor and process conversions currently underway.
In order to prepare for the 2003 Residential Conversion Grant
Program and the intake of applications, City staff worked with
NHS to restructure the program policies and operating
procedures . Program changes were proposed so that internal
controls and a strict monitoring system could be instituted.
rft The major changes were : 1) reimburse the property owner only
for the actual cost to convert a property to the original,
Multi-Family Conversion Program
April 4 , 2003
Page 2
conforming residential use and for one ear' s loss of rent (up
to $12 , 000) for a total grant not to exceed $20, 000 (or $23 , 000
for the South East Elgin Neighborhood) oer unit converted; 2)
provide only one grant payment to th- property owner upon
completion of the conversion and compliance with all program
requirements; 3) require program participants to obtain and
submit at least two bids for materials and labor in order to
substantiate material and contractor costs; and 4) ensure
participant compliance with program procedures through periodic
inspections and activity reports .
COMMUNITY GROUPS/INTERESTED PERSONS CONTA TED
The Executive Director from the Neighborhood Housing Services
and a representative from the Board of Directors of the
Neighborhood Housing Services.
FINANCIAL IMPACT
(4,_,
There are sufficient funds available ($3' 5, 131) in the Riverboat
Fund, account number 275-0000-791 . 92-32 , project number 079880
for the Residential Conversion Grant Program. Currently, forty-
four (44) potential applicants are on . waiting list and have
requested program applications. The..e applicants will be
processed on a first-come first-serve ba%is . Any applicant that
cannot be served from the 2003 program b dget will be considered
for the 2004 Residential Conversion Gran' Program given budgeted
dollars are available .
\ow/LEGAL IMPACT
The City' s Corporation Counsel has prepared the attached
Ordinance and Grant Agreement .
ALTERNATIVES
1 . Maintain the previous Residential 4onversion Grant Program
structure and policies as implement-d by NHS.
2 . Approve the proposed Residential conversion Grant Program
Ordinance and form grant agreement .
Multi-Family Conversion Program
April 4 , 2003
Page 3
RECOMMENDATION
It is recommended that the City Council approve the proposed
Residential Conversion Grant Program 0 dinance and form grant
agreement .
Respectfully submitted for Council consi.eration.
JAW/JW
Attachments