G106-04 (2) . I
Ordinance No.G106-04
AN ORDINANCE
AMENDING CHAPTER 2.30 OF THE ELGIN MUNICIP• L CODE, 1976,AS AMENDED,
ENTITLED "RESIDENTIAL REHABILIT• TION PROGRAM"
BE IT ORDAINED BY THE CITY COUNCIL OF T E CITY OF ELGIN, ILLINOIS:
Section 1. That Chapter 2.30 of the Elgin Munici•al Code, 1976, as amended, entitled
"Residential Rehabilitation Program"be and is hereby furthe amended by amending Subsection C
of Section 2.30.050 entitled "Owner Occupied, Single-F. ily Dwelling Rehabilitation Grant
Program"to read as follows:
"C. Grants: The amount of any grant .hall be determined by the
community development manager or his or her desi ee in accordance with the
residential rehabilitation program eligibility guideline..
1. Applicants with household in:omes meeting the section 8
extremely low income and very low income gu delines may qualify for a one
hundred percent (100%) grant not to exce-d fifteen thousand dollars
($15,000).
2. Applicants with household inco es meeting the section 8 low
income guidelines may qualify for a one hundr:d percent(100%)grant not to
exceed ten thousand dollars ($10,000)."
Section 2. That Chapter 2.30 of the Elgin Municip:1 Code, 1976, as amended, entitled
"Residential Rehabilitation Program"be and is hereby further. ended by amending Subsection C
of Section 2.30.060 entitled "Rental Residential Property (1 o 4 Dwelling Units) Rehabilitation
Loan Program"to read as follows:
"C. Zero Interest Forgivable Loans: The : ount of any zero interest
forgivable loan shall be determined by the community d-velopment manager or his or
her designee in accordance with the residential rehailitation program eligibility
guidelines.
1. Applicants may qualify for a zer• interest forgivable loan not
to exceed ten thousand dollars($10,000) for eal h rental residential property
provided the applicant's actual costs incurred in meeting the requirements of
the property maintenance code for completing t e exterior repairs identified
in the agreement match or exceed the amount •f the loan. An appropriate
security interest in the full amount of the loan n favor of the city, and in a
form as approved by the city, shall be recorded .gainst the title of the rental
residential property for which the loan is grante. provided the city's security
interest is subordinate to not lower than a secon• position on the record title
to the rental residential property. Zero interes forgivable loans shall be
forgiven after five(5)years from the completion il ate of the improvements,as
determined by the community development m. ager or his or her designee,
provided the applicant retains ownership of the rental residential property
during that five (5) year time period. Should the applicant relinquish his or
her ownership interest in the rental residential •roperty during the five (5)
year term of the zero interest forgivable loan,the balance of the loan shall be
repaid on a prorated basis of that five (5) yrar term at the time such
ownership interest is relinquished."
Section 3. That all ordinances or parts of ordinances i conflict with the provisions of this
ordinance be and are hereby repealed.
Section 4. That this ordinance shall be in full fore: and effect upon its passage and
publication in the manner provided by law.
s/Ed ',chock
Ed Sc ock, Mayor
Presented: December 15, 2004
Passed: December 15, 2004
Omnibus Vote: Yeas: 6 Nays: 0
Recorded: December 16, 2004
Published:
Attest:
s/Dolonna Mecum
Dolonna Mecum, City Clerk
toFFt
`` c'y City of E l g i n Agenda Item No. G-
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November 26, 2004 L
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TO: Mayor and Members of the City Council
NEIGHBORHOOD VITALITY
FROM: David M. Dorgan, City Manager
Amy Coyne, CDBG Program Coordinator
SUBJECT: Revision 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.
RECOMMENTATION
It is recommended that the City Council approve the changes to the Residential Rehabilitation
Grant Program and the revised Residential Rehabilitation Grant Ordinance of the City of Elgin,
Chapter 2.30 of the Elgin Municipal Code.
BACKGROUND
On June 26, 2001 the Mayor and City Council approved revisions to the Residential
Rehabilitation Grant Program and revised Residential Rehabilitation Grant Ordinance of the City
of Elgin. One of the major revisions involved reducing the amount of grant assistance from
$7,500 to $5,000 for the Single Family Dwelling Rehabilitation Program, the Rental Residential
Property (one to four dwelling units) Rehabilitation Loan Program, the Handicap Accessibility
Program, and $3,000 for the Emergency Repair Program.
The reasoning behind reducing the overall funding level was due in part to the lead regulations
the U.S. Department of Housing and Urban Development (HUD) would be enforcing, beginning
in the 2001 CDBG Program Year. At that time the City did not have qualified contractors to
perform the work involving lead. By reducing the funding level to $5,000, HUD's lead
regulations only stipulated that safe work practices occur; licensed lead contractors were not
mandatory at this funding level. Today contractors are available and funding levels can be
increased.
City staff would like to increase the funding level to a maximum of $15,000. Residents with
incomes less than 50% of the Median Family Income would receive a maximum grant amount of
$15,000. Residents with incomes at 51-80% of the Mediar_ Family Income would receive a
maximum grant amount of$10,000. Historically, this has never been proposed or implemented.
Residential Rehab Ordiance Revision
November 24, 2004
Page 2
Upon recent review of the program, City staff feels a higher evel of funding will be of greater
benefit to the City and to the low and moderate income reside is receiving the assistance.
The reasoning behind increasing the funding level from $5,1100 up to a maximum of $15,000
($15,000 for 0-30% MFI and $10,000 for 51-80% MFI);
• As of the September of 2004, the City has 8 licensed lead ontractors bidding on lead related
projects.
• City staff and licensed lead contractors have the experi:nce and knowledge to administer
lead projects at the maximum spending threshold of$15,060.
• The current $5,000 maximum spending limit is not addr:ssing all of the code violations on
many of the dwelling units.
• A greater number of code cases would be closed out.
• Participants would not have to come back into the progra six months to a year later to have
additional rehabilitation work done on the dwelling unit.
• More cost effective to bid out one big project instead of a few smaller projects.
• Administering the program would be become more efficie t.
All other elements of the program would remain the same. III dividuals would still have to meet
r HUD's income requirements. The focus of the Residential R-I abilitation Program will still be to
assist as many households as possible, at the same time pu ging a new focus on addressing all
eligible exterior code violations on a single dwelling unit.
COMMUNITY GROUPS/INTERESTED PERSONS CO TACTED
None.
frA..,FINANCIAL IMPACT
The aggregate funding for the Residential Rehabilitation Pro:ram in the proposed 2005 CDBG
Program year will remain the same as last year at $600,001. The maximum individual grant
amount awarded to each qualified homeowner would now b- increased to $15,000 rather than
the current amount of$5,000.
N\15),\/ LEGAL IMPACT
None.
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Residential Rehab Ordiance Revision
November 24, 2004
Page 3
ALTERNATIVES
1. Approve the funding level increase up to a maximum . $15,000.
2. Do not approve the funding level increase up to a maxi urn of$15,000.
Respectfully submitted for Council consideration.
AC/ac
Attachment
ADMINISTRATIVE GUIDELI ES
CITY OF ELGIN
RESIDENTIAL REHABILITATION P 'OGRAM
The City of Elgin's Residential Rehabilitation Program has bean in existence since 1977 and has
assisted in the improvement of dwelling units throughout the co munity. Overall objectives of the
program are to financially assist homeowners in making maint:nance type repairs, to improve the
quality and safety of the existing housing stock, and to foster co unity pride. The Program makes
outright grants available to low and moderate income households The following are the policies and
conditions that govern the Residential Rehabilitation Program.
GENERAL CONDITIONS OF PROGRAMS
The following are conditions that apply to all five rebate progra s:
1. Applicants must be at least 18 years of age.
2. Eligible structures must be lawful residential structures loca ed within the City of Elgin corporate
limits and contain no more than four dwelling units.
3. Eligible structures shall be inspected by the program coordi ator for eligible exterior repairs and
any code deficiencies that must be corrected.
4. Repairs must be made in conformance with the current .pplicable City of Elgin's Property
Maintenance codes.
5. Program participants must execute a grant agreement prio to the beginning of any repairs and
have received notice to proceed.
6. Incomes of occupants, owners, and tenants must be susplied and meet the Department of
Housing and Urban Development(HUD)low and moderate. income guidelines.
GRANTS
7. The Department of Housing and Urban Development (H P) low/moderate income guidelines
and the occupant's total household incomes for the pre ious calendar year will be used to
determine the amount of all eligible grants (with excep ion of non-occupant divorcees and
deceased spouses incomes). Grants are applied to the actual -ligible repair cost.
A. Up to X000$15,000 for households that meet the HU very low incomes guidelines,
B. Up to$337-50 $10,000 for households that meet the H II low income guidelines,
C. $3,000 for emergency repairs,
D. $5,000 for accessibility modification,
E. $2,500 for applicable lead base paint hazard reduction,
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PROGRAM ENTRY
8. Homeowners may have a maximum of two (2) structures in the grant program at one time.
9. Each structure may enter into the grant program twice once within a five (5) year period. The
10. Immediate program re-entry may be granted after initial Grant Agreement allotted time has
expired and repairs have not been completed provided:
A. Participants are still eligible for the program,
B. Partial grants have not been issued under the previous agreement,
C. No grants will be issued under the previous agreement,
D. Partial grants will not be issued under the new agreement.
HOUSEHOLD INCOMES
11. The household incomes of the previous year will determine the amount of eligible grants
participants may receive. Household incomes may be verified by the following documents:
A. Income Tax
B. Social Security Benefits
C. Pensions
D. Unemployment Benefits
E. Public Assistance
rik F. Interest
G. Other appropriate verifiable income
OWNERSHIP
12. Ownership may be verified by the following documents:
A. Deeds
B. Current house insurance policy
C. Contractual Agreement(registered with the county)
D. Current Property Tax bill
E. Other verifiable proof of ownership
INSPECTIONS
13. Call the City of Elgin for an inspection of your property, for the purpose of informing you of all
eligible repairs and any code deficiencies that must be corrected and may be eligible for a grant.
Eligible Repairs:
➢ Maintenance type exterior repairs,
➢ Emergency repairs,
➢ Exterior water and sewer service,
➢ Accessibility modification,
➢ Repairs of fire damaged homes not covered by insurance (insurance claims verifying
coverage must be submitted),
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➢ Repairs for structures located in special flood hazard areas provided:
1. The structure is insured through the National Floud Insurance Program.
2. The estimated cost of rehabilitation must be le,s than 50% of the cost of the fair
market value of the structure before rehabilitatio .
3. An exception to #2 would be that the City of :]gin's Preservation Coordinator has
determined the structure to be historical or have .ome special architectural or cultural
significance.
➢ Eligible structures condemned by the City of Elgin Department of Code Administration
for maintenance type repairs.
Ineligible Repairs:
➢ Aluminum and vinyl siding, unless existing sidi g is irreplaceable and determined
eligible by the Housing and Rehabilitation Coordina or.
➢ Sandblasting of exterior siding,
➢ Remodeling and additions,
➢ Substitutions
ESTIMATESBIDS
14. Homeowners must obtain at least two estimates for the c o st of eligible repairs performed by
persons other than the homeowner or relatives. Only one estimate for the cost of materials is
needed if work is performed by the homeowner or relatives:
A. Estimates must consist of cost of labor and materials.
B. Contractor's signature, contractor's license number, an. or social security number must be
provided.
AGREEMENTS
15. An appointment with the City of Elgin Planning and Neigh s orhood Services Department must be
made to review estimates, income and ownership verificati o , and to execute a grant agreement.
A. Homeowner must supply:
✓ Estimates/Bids
✓ Ownership verification
✓ Income verification
✓ Other applicable documentation
16. ONLY AT THIS POINT A NOTICE TO PROCEED I. GIVEN. Any repairs started or
completed prior to the execution of the Rehabilitation Program Agreement will not be eligible
for a grant.
17. Immediately after the execution of the agreement, homeowners will be notified in writing of
estimated eligible grant amounts. GRANTS WILL B FINAL AFTER RECEIPT OF
INCOME VERIFICATION FROM THE INTERNAL VENUE SERVICE.
18. Repairs must be completed within six (6)months from the o ate of the agreement.
A. Thirty(30) days for emergency repairs.
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19. Any changes and/or additions to the scope of work must be verified and approved by the
program coordinator in writing prior to the initiation of the .ctual work.
EXTENSIONS
20. An extension to the agreement deadline may be granted pro 'ided:
A. It is requested in writing thirty (30) days prior to the expiration date expressing unusual
circumstances and the amount of time requested.
B. An evaluation is made by the program coordinator of the remaining work.
C. Extensions to the amount of time are subject to approvsl by the City of Elgin Planning and
Neighborhood Services Department.
D. Extensions shall not exceed ninety(90) days.
• E. Changes or additions to the scope of work will not be eli:ible after requesting an extension.
F. Partial grants will not be eligible after requesting an ext:nsion.
21. Failure to fulfill the terms of the agreement will result in:
A. Non-payment of the grant
B. Repayment of any grants received by the homeowner.
C. Project will be closed and file forwarded to the Dep.rtment of Code Administration and
Development Services for the possible correction of any remaining code violations.
PAYMENTS
22. Only after the project is completed will grants be paid i approximately two (2) to three (3)
weeks after applicable receipts and/or bills are received.
A. Receipts/bills must be signed, dated, and marked by the contractor and/or merchant and
indicate any payments made.
B. Grant payments may be endorsed to the contractor provi s ed:
1. Repairs are completed and after a successful inspect on.
2. Related repair cost in excess of the 100% grant has seen paid by the owner.
C. Owner-occupied structures may be eligible for partial gr:nt payments on repairs,provided:
1. Minimum eligible cost is $1,000.
2. Payment for requested repair(s)is completed.
DISPUTE RESOLUTION
23. If a disagreement should occur between the homeowner an the contractor, at the request of the
homeowner and/or the contractor, a meeting will be schedules with the homeowner, the contractor,
and the program coordinator.
A. The problem will be evaluated by all three parties and a s ecision recommended by the program
coordinator.
B. If either party is in disagreement with the program coordinator's decision, they may file in
writing that they do not agree with the decision and would like to move to the next step.
C. The next step will be a panel consisting of the program oordinator, Community Development
Block Grant Coordinator, Community Development Grou s Director or his designee.
D. The problem will be re-evaluated and a decision will b, made by this panel. If either party
disagrees with the decision, they may request a meeting wi h the City Manager.
E. The City Manager panel will consist of the City Manager'•. choice. The City Manager's decision
will be final.
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OWNER-OCCUPIED, SINGLE FAMILY DWELLING REHABILITATION PROGRAM
1. Household incomes must meet HUD low income guidelines.
2. Owner must maintain ownership of eligible structures for a period of twelve (12) months after
the repairs are completed.
RENTAL RESIDENTIAL PROPERTY REHABILITATION LOAN PROGRAM
1. SINGLE FAMILY:
A. Household incomes must meet HUD low income guidelines,
B. Rent cannot exceed fair market rent as determined by the HUD
C. Owners must maintain affordable rents, as defined by the Department of Housing and Urban
Development(HUD), for the term of rehabilitation contract.
D. Owners must maintain ownership of eligible structures for the term of the rehabilitation
contract.
2. MULTI-FAMILY:
A. 51%of household incomes must meet HUD low income guidelines, and
B. Rent of all units can not exceed the fair market rent as determined by HUD,and
C. Owner-occupied structures, grants are determined by the owner's income.
D. Owners must maintain affordable rents, as defined by the Department of Housing and Urban
Development(HUD), for the term of rehabilitation contract.
E. Owners must maintain ownership of eligible structures for the term of the rehabilitation
contract.
EMERGENCY REPAIR PROGRAM
1. Applicants who own a single family residential structure, located within the City of Elgin
corporate limits, may receive a one time 100% grant, not to exceed $3,000, to undertake eligible
emergency repairs.
2. Household incomes must be within the Department of Housing and Urban Development
low/moderate income guidelines.
3. Applicant must have been notified by the City of Elgin's Water Department Director, Code
Administration Director, Public Works Director, or their designee, prior to the execution of a
grant agreement for emergency repairs.
4. Repairs must be completed within thirty(30) days of the execution of a grant agreement.
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ELGIGIBLE EMERGENCY REPAIRS:
A. Water service repairs(from the buffalo box to the house ,
B. Under serviced electrical systems,
C. Water heater replacement,
D. Inoperable furnaces (during the fall or winter season),
E. Sewer repair or replacement
ACCESSIBILITY MODIFICATION PROGRAM
1. To determine eligibility, applicants must contact Fox Vall•y Center for Independent Living at
(847)695-5818 and meet the following requirements:
2. Applicants may receive a one time 100% grant not to :xceed $5,000 to undertake eligible
accessibility modification improvements.
3. Applicant must own a residential structure containing no e re than four dwelling units, located
within the City of Elgin's corporate limits.
4. 51% of household incomemust be within the DHUD low/me derate income guidelines.
rh. 5. All rents cannot exceed fair market rent guidelines as dete fined by DHUD.
6. Current rent levels and ownership must be maintained for period of six months following the
accessibility modification improvements completion date.
7. Accessibility modifications must be completed within six onths from the date of the execution
of the Accessibility Grant Agreement.
PENALTY
ANY PERSON OR PERSONS WHO WILLFULLY MA I A FALSE STATEMENT OR
STATEMENTS IN OBTAINING A GRANT UNDER THE PROVISIONS OF THE
REHABILITATION PROGRAM SHALL BE SUBJECT T I A FINE OF NOT LESS THAN
ONE HUNDRED ($100)DOLLARS NOR MORE THAN FIVE HUNDRED ($500) DOLLARS.
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ELGIN MUNICIPAL COD 5
CHAPTER 2.30
RESIDENTIAL REHABILITATION PI' OGRAM
2.30.010: TITLE:
This chapter shall be entitled the RESIDEN IAL REHABILITATION
PROGRAM. Any reference to the residential rehab litation program shall be
construed to refer to this chapter and any amendments. iOrd. G65-01 § 1, 2001)
2.30.020: DEFINITIONS:
DWELLING:A building, or portiop thereof,used exclu'ively for human habitation.
DWELLING UNIT: One or more rooms containing indi idualized cooking, sleeping
and sanitary facilities which is designed, occupied o intended for use by one
household for human habitation.
HUD: The United States department of housing and urb:n development.
LAWFUL SINGLE-FAMILY DWELLING OR ' NTAL RESIDENTIAL
PROPERTY: A single-family dwelling or rental re•idential property lawfully
established under this code.
MOBILE HOME: A factory assembled structure designed for permanent
habitation and so constructed as to permit its transpor on wheels, temporarily or
permanently attached to its frame, from the place of its onstruction to the location,
or subsequent locations, and placement on a tempora , foundation, at which it is
intended to be a permanent habitation, and situated so as to permit the occupancy
thereof as a dwelling unit for one or more persons.
MOBILITY LIMITED DISABLED INDIVIDUAL: An, person who is challenged
by a physical handicap that requires special fixtures or .tructural modifications, or
some combination thereof, in order to move independen ly in or about a residential
structure.
OWNER OCCUPIED: A single-family dwelling or ental residential property
occupied as the permanent bona fide residence or domic le by the record title holder
of the real property on which the single-family dw;Iling or rental residential
property is located.
PROPERTY MAINTENANCE CODE: The city of E gin property maintenance
code, as amended.
RENTAL RESIDENTIAL PROPERTY: A building wi h not less than one but not
more than four(4) dwelling units that are let or intende to be let for rent or lease.
RESIDENTIAL REHABILITATION PROGRAM ELI GIBILITY GUIDELINES:
Annually revised section 8 income guidelines used to determine eligibility in the
residential rehabilitation program.
SECTION 8: Section 8 of the United States housing act of 1937, as amended.
SECTION 8 INCOME GUIDELINES: The hou.ehold income limits for
participation in housing assistance programs authoriz:d by or consistent with the
United States housing act of 1937, as amended.
SINGLE-FAMILY DWELLING: A building with s ne dwelling unit. For the
purposes of this chapter, a mobile home shall constit to a single-family dwelling.
(Ord. G65-01 § 1,2001)
2.30.030: ADMINISTRATION:
The administration of the provisions of this chapte is hereby assigned to the
community development manager or his or her desig o ee. Applications hereunder
shall be made to the planning and neighborhood ser ces department which shall
have the authority and responsibility for carrying out t e provisions of this chapter
including preparation and periodic revision of th. residential rehabilitation
program eligibility guidelines. (Ord. G65-01 § 1,2001)
2.30.040: ESTABLISHMENT:
The following residential rehabilitation programs are hereby established for the
city:
A. Owner occupied,single-family dwelling rehabilit tion program.
B. Rental residential property(1 to 4 dwelling units rehabilitation program.
C. Emergency repair program.
D. Handicap accessibility program.
E. Lead based paint controVabatement program.
Funding for the established programs may be allocated ntil the funds budgeted for
such use are exhausted.(Ord. G65-01 § 1,2001)
2.30.050: OWNER OCCUPIED, SINGLE AMILY DWELLING
rik REHABILITATION GRANT PROGRAM:
A. Eligible Rehabilitation: Exterior repair or rehabilitation of owner occupied,
lawful single-family dwellings. Eligible assistance shall be limited to the
actual costs incurred in meeting the requirements of the property
maintenance code.
B. Applicant Qualifications: Eligible applicants shall include any person who
meets all of the following qualifications:
1. Owns and occupies a lawful single-family dwelling located within the
corporate limits of the city.
2. Is at least eighteen (18)years of age.
3. Is a member of a household meeting the current section 8 guidelines
established by HUD.
C. Grants: The amount of any grant shall be determined by the community
development manager or his or her designee in accordance with the
residential rehabilitation program eligibility guidelines.
1. Applicants with household incomes meeting the section 8 extremely low
income and very low income guidelines may qualify for a one hundred
percent (100%) grant not to exceed five fifteen thousand dollars
(-$5500100) ($15,000), . . . . ! !° , ; .
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2. Applicants with household incomes meeting the section 8 low income
guidelines may qualify for a one hundred percent (100%) grant not to
exceed three ten thousand • • ; . . . !.! !)
($10,000), . . . . • • • , ! !o • .
D. Partial Grants: Partial grants for completed repairs may be allowed if the
applicant's financial ability to participate in the rehabilitation program is
dependent upon the phasing of repairs.
E. Conditions; Agreement Required: Program participation shall require the
execution of an agreement between the applicant and the city. The
community development manager, or his or her designee, is authorized to
execute the agreement on behalf of the city. The agreement shall include, but
is not limited to,the following requirements for the applicant:
1. The applicant shall complete the exterior repair or rehabilitation of the
r"` owner occupied, lawful single-family dwelling designated within the
agreement in compliance with the property aintenance code within a six
(6) month period from the date of the execution of the agreement.
2. The applicant shall retain ownership of a o d continue to occupy such
rehabilitated owner occupied, lawful single-family dwelling for a period
not less than twelve (12) months following t i e rehabilitation completion
date as determined by the community develo ment manager or his or her
designee. Should the applicant relinquish hi. or her ownership interest
during the twelve (12) month period, the gra I t shall be repaid in full.
3. Program participation and exterior rehabilit•tion activities shall result in
full compliance with the property maintena ce code as it applies to the
exterior of the single-family dwelling. (Ord. e65-01 § 1, 2001)
2.30.060: RENTAL RESIDENTIAL PROPERTY (1 0 4 DWELLING UNITS)
REHABILITATION LOAN PROGRAM:
A. Eligible Rehabilitation: Exterior repair or reh,bilitation of lawful rental
residential property. Eligible assistance shall 13: limited to the actual costs
incurred in meeting the requirements of the prop•rty maintenance code.
B. Applicant Qualifications: Eligible applicants sh:11 include any person who
meets the following qualifications:
1. Owns a lawful rental residential property 1 o cated within the corporate
limits of the city.
2. Is at least eighteen(18)years of age.
3. When the rental residential property is owne occupied, is a member of a
household meeting the current section 8 gui o elines established by HUD
for either extremely low household income, ery low household income,
or low household income.
4. When the rental residential property is not o ner occupied, is renting, at
not more than the section 8 fair market re t rates, less than fifty one
percent (51%) of the dwelling units (1 of 2 nits, 2 of 3 units, or 3 of 4
units)in the rental residential property to hot'.eholds meeting the current
section 8 guidelines established by HUD.
C. Zero Interest Forgivable Loans: The amount of ny zero interest forgivable
loan shall be determined by the community deve opment manager or his or
her designee in accordance with the resident al rehabilitation program
eligibility guidelines.
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1. Applicants may qualify for a zero interest f 1 rgivable loan not to exceed
($10,000) for each rental residential
property provided the applicant's actual cots incurred in meeting the
requirements of the property maintenanc= code for completing the
exterior repairs identified in the agreement atch or exceed the amount
of the loan.An appropriate security interest i i the full amount of the loan
in favor of the city, and in a form as app oved by the city, shall be
recorded against the title of the rental reside o tial property for which the
loan is granted provided the city's security i 1 terest is subordinate to not
lower than a second position on the record t tle to the rental residential
property. Zero interest forgivable loans sha I be forgiven after five (5)
years from the completion date of the impr 1 vements, as determined by
the community development manager or his o her designee,provided the
applicant retains ownership of the rental resi 1 ential property during that
five (5) year time period. Should the appl'cant relinquish his or her
ownership interest in the rental residential 1 roperty during the five (5)
year term of the zero interest forgivable loan, he balance of the loan shall
be repaid on a prorated basis of that five (5) year term at the time such
ownership interest is relinquished.
2. • . . . . . . • . . • . . . . I '
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rilh‘ . . . . . • . . . . . 1 1�1 11 . . • . ' .. •
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D. Partial Loans Or Grants: Partial loans or grant for completed repairs may
be allowed if the applicant's financial abil ty to participate in the
rehabilitation program is dependent upon the ph•sing of repairs.
E. Conditions; Agreement Required: Program par icipation shall require the
execution of an agreement between the ap 1 licant and the city. The
community development manager, or his or he designee, is authorized to
execute the agreement on behalf of the city. The •greement shall include, but
is not limited to,the following requirements for t 1 e applicant:
1. The applicant shall complete the repair or ehabilitation of the rental
residential property designated within the ag eement in compliance with
the current adopted property maintenance c 1 de within a six (6) month
period from the date of the execution of the a.1 eement.
2. The applicant shall retain ownership of an 1 continue to occupy, when
applicable, such rehabilitated structure and o herwise continue to satisfy
the applicable eligibility requirements set fo th in subsection B of this
section, as amended, for a period not less tha 1 five (5) years following the
rehabilitation completion date as deter fined by the community
rimb. development manager. Should the applic•nt relinquish his or her
ownership interest in the rental residential 'roperty during the five (5)
year term of the zero interest forgivable boa or otherwise fail to satisfy
the applicable eligibility requirements set fo th in subsection B of this
section, as amended, the balance of the loan s all be repaid on a prorated
basis of that five (5) year term at the time such ownership interest is
relinquished or at the time any one of the applicable eligibility
requirements is no longer being satisfied.
3. Program participation and rehabilitation activities must result in full
compliance with the property maintenance code as it applies to the
exterior of the rental residential property.
4. An applicant owning rental residential prope ty shall provide the names,
addresses, and household incomes for the tenants residing in each
dwelling unit. When the rental residenti.1 property is not owner
occupied, the applicant shall rent, at not m i re than the section 8 fair
market rent rates, not less than fifty one pe cent (51%) of the dwelling
units (1 of 2 units, 2 of 3 units, or 3 of 4 un ts) in the rental residential
property to households meeting the cur ent section 8 guidelines
established by HUD for a period not less than six (6) months following the
rehabilitation completion date as deter fined by the community
development manager or his or her designee.
5. The applicant shall retain the rent levels in effect at the time the
application was approved for each dwelling :I it on the rental residential
property for a period of not less than si. (6) months following the
rehabilitation completion date, as deter o fined by the community
development manager, of the improvements. (I rd. G65-01 § 1,2001)
2.30.070: HANDICAP ACCESSIBILITY PROGRAM:
A. Eligible Accessibility Work: Grants shall b awarded for structural
modifications to owner occupied, lawful single- mily dwellings and lawful
rental residential property for the purchase a i d installation of handicap
accessibility fixtures for dwelling units occupied $y households having one or
more mobility limited disabled individuals. ligible assistance shall be
limited to the actual costs incurred in completing the designated accessibility
work.
B. Applicant Qualifications: Eligible applicants sh AI include any person who
meets the following qualifications:
1. Owns or occupies a lawful single-family dwelling or lawful rental
residential property located within the corpor:to limits of the city.
2. Is at least eighteen (18)years of age.
3. Is a member of a household meeting the c rrent section 8 guidelines
established by HUD.
4. Requires structural building modifications or the installation of handicap
accessibility fixtures to serve the accessibility ieeds of an occupant within
the eligible household.
C. Grants: Applicants with household incomes at i r below the section 8 low
income guidelines may qualify for a one hundre• percent (100%) grant not
to exceed five thousand dollars ($5,000.00), p1 s a one hundred percent
(100%) grant toward lead based paint control an' abatement activities not to
exceed two thousand five hundred dollars ($2,500.00).
D. Conditions; Agreement Required: Program pa icipation shall require the
execution of an agreement between the applican , the property owner, when
different from the applicant, and the city. T e community development
manager, or his or her designee, is authorized t i execute the agreement on
behalf of the city. The agreement shall includ., but is not limited to, the
following requirements for the applicant:
1. The applicant shall demonstrate the mobility limiting disability of a
member of one or more occupant hous•holds which require the
accessibility improvements.
2. The applicant shall complete the accessibility improvements to the single-
family dwelling or the dwelling unit or dw•Iling units within a rental
residential property designated in the agree ent within a six (6) month
period following the date of the execution of tie agreement.
3. An applicant owning rental residential prope ty shall provide the names,
addresses, and household incomes for the tenants residing in each
dwelling unit. When the rental residenti.I property is not owner
occupied, the property owner shall rent, at lot more than the section 8
fair market rent rates, not less than fifty one percent (51%) of the
dwelling units (1 of 2 units, 2 of 3 units, or 3 of 4 units) in the rental
residential property to households meeti g the current section 8
guidelines established by HUD for a period of less than six (6) months
following the rehabilitation completion d•to as determined by the
community development manager or his or h•r designee. (Ord. G65-01 §
1,2001)
2.30.080: EMERGENCY REPAIR PROGRAM:
A. Eligible Repair Work: Grants for the emerge cy repair of water service
lines, sanitary sewer laterals, furnaces, electrical systems and water heaters
serving owner occupied, lawful single-family dwe lings. Grants for the repair
rimik
of water service lines shall be limited to the rep,.it of those portions of the
water service line extending from the water sh t off valve located in the
public right of way servicing the single-family dw•Bing to the terminus of the
water service line at the single-family dwellin y Grants for the repair of
sanitary sewer laterals shall be limited to the po tion of the sewer extending
from the single-family dwelling to the wye at th• sanitary sewer main. For
the purposes of this section, the term "emergenc " shall mean an unforeseen
combination of circumstances that calls for i mediate action; a sudden
unexpected happening; an unforeseen occurrenc• or condition; a sudden or
unexpected occasion for action; or a pressing necessity. Grants for the
routine repair or periodic maintenance of wat•r and sewer service lines,
furnaces, electrical systems and water heaters a e expressly precluded from
grant eligibility. Eligible assistance shall be 1 mited to the actual costs
incurred in performing the designated emergenc repairs.
B. Applicant Qualifications: Eligible applicants sh 11 include any person who
meets the following qualifications:
1. Owns and occupies a lawful single-family i welling 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 c rrent section 8 guidelines
established by HUD for either extremely low ii ousehold income, very low
household income,or low household income.
4. Requires the repair of either a water service line, sewer service line,
furnace, water heater or electrical system se ing a lawful single-family
dwelling located within the corporate limits o the city.
C. Grants: Eligible applicants may apply for a one time, one hundred percent
(100%) grant, not to exceed three thousand dol ars ($3,000.00) to complete
the necessary repairs.
D. Conditions; Agreement Required: Program pa 'cipation shall require the
execution of an agreement between the ap s licant and the city. The
community development manager, or his or he designee, is authorized to
execute the agreement on behalf of the city. The greement shall include, but
is not limited to, the following requirements for t i e applicant:
1. When applicable,the applicant shall:
a. Demonstrate to the water director, or th• water director's designee,
that the water service line serving the ow er occupied, lawful single-
family dwelling requires emergency repai .
b. Demonstrate to the public works dire tor, or the public works
director's designee that the sanitary sew:r lateral serving the owner
occupied, lawful single-family dwelling re•uires emergency repair.
c. Demonstrate to the director of code administration and development
services, or the director of code admi istration and development
services' designee, that the furnaces, el ctrical systems and water
heaters serving the owner occupied, la ful single-family dwelling
require emergency repair.
2. The water director, public works direc or, or director of code
administration and development services, when applicable, shall provide
the community development manager with h s or her findings regarding
the applicant's proposed emergency repairs prior to the community
development manager's execution of the agre:ment.
3. The applicant shall complete the repairs desi,nated within the agreement
within a sixty (60) day period following the.•ate of the execution of the
agreement.
4. The applicant shall retain ownership of the .ingle-family dwelling for a
period of six (6) months following the completion date of the
improvements, as determined by the comm nity development manager
or his or her designee. (Ord. G65-01 § 1,2001
2.30.090: LEAD BASED PAINT CONTROL/ABATEM NT PROGRAM:
A. Eligible Lead Based Paint Control Or Abatemen Work: Exterior or interior
control or abatement of lead based paint on or 'thin a lawful single-family
dwelling or a dwelling unit within a lawful ental residential property
occupied by a child that has been identified as h,ving high lead levels in his
or her blood by the Kane County health depar ent. Eligible assistance shall
be limited to the actual costs incurred in perfo ming the lead based paint
control or abatement work identified in collabor:tion with the Kane County
health department.
B. Applicant Qualifications: Eligible applicants sh.11 include any person who
meets the following qualifications:
1. Owns a lawful single-family dwelling or lawf i1 rental residential property
located within the corporate limits of the city.
2. Is at least eighteen (18)years of age.
3. Requires lead based paint control or abatem•nt of a lawful single-family
dwelling or a dwelling unit within a lawful rental residential property
that is occupied by a child that has been id•ntified as having high lead
levels in his or her blood by the Kane ounty health department,
provided however, that the subject child is a member of a household
meeting the current section 8 guidelines.
C. Zero Interest Forgivable Loans: The amount of any zero interest forgivable
loan shall be determined by the community dev lopment manager, or his or
her designee, upon information derived from a r sk assessment analyzing the
incidence of lead based paint hazards affecting 'he single-family dwelling or
a dwelling unit within a rental residential s roperty and the economic
feasibility of eliminating or minimizing the lea s based paint hazards. The
amount of any zero interest forgivable loan shal also be in accordance with
the current section 8 income guidelines.
1. Applicants seeking loans for the lead based p int control or abatement on
or within owner occupied, single-family d •llings or rental residential
properties may qualify for a zero interest f rgivable loan not to exceed
ten thousand dollars ($10,000.00). An appro I Hate security interest in the
full amount of the loan in favor of the city, aid in a form as approved by
the city, shall be recorded against the title of he single-family dwelling or
rental residential property for which the lo n is granted, provided the
city's security interest is subordinate to not 1 i wer than a second position
on the record title to the single-family d ening or rental residential
property. Zero interest forgivable loans sh• I be forgiven after five (5)
years from the completion date of the remedy al measures, as determined
by the community development manager,or ip is or her designee, provided
the applicant retains ownership of the rental residential property during
that five (5) year time period. Should the ap I licant relinquish his or her
ownership interest in the during the five (5) •ar term of the zero interest
forgivable loan, the balance of the loan sh Al be repaid on a prorated
basis of that five (5) year term at the time such ownership interest is
relinquished.
2. Applicants seeking loans for the lead based p.int control or abatement on
or within dwelling units that are not owner occupied may qualify for a
zero interest forgivable loan not to exc•ed five thousand dollars
($5,000.00) for each dwelling unit provided the applicant's actual costs
incurred in the lead based paint control or abatement work match or
exceed the amount of the loan.An appropria 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 against the title of tie single-family dwelling or
rental residential property for which the lo,1 n is granted provided the
city's security interest is subordinate to not It wer than a second position
on the record title to the single-family dwell ng or the rental residential
property. Zero interest forgivable loans sha I be forgiven after five (5)
�'' years from the completion date of the remed al measures, as determined
by the community development manager,or o is or her designee,provided
the applicant retains ownership of the single- amily dwelling or the rental
residential property during that five (5) yel r time period. Should the
applicant relinquish his or her ownership Merest in the single-family
dwelling or the rental residential property du ing the five(5)year term of
the zero interest forgivable loan,the balance i f the loan shall be repaid on
a prorated basis of that five (5) year term :t the time such ownership
interest is relinquished.
D. Partial Grants: Partial loans or grants shall not be awarded to participants
in the lead based paint control/abatement progra .
E. Conditions; Agreement Required: Program pa ticipation shall require the
execution of an agreement between the applican , the property owner, when
different from the applicant, and the city. T e community development
manager, or his or her designee, is authorized i execute the agreement on
behalf of the city. The agreement shall includ:, but is not limited to, the
following requirements for the applicant:
1. The applicant shall complete the lead based paint control or abatement
on or within the dwelling unit designated wi hin the agreement within a
six (6) month period from the date of the exec tion of the agreement.
2. The applicant shall retain ownership of an continue to occupy, when
applicable, the single-family dwelling or re o tal residential property on
which the lead based paint control or abate ent has been performed for
a period not less than five (5) years f llowing the rehabilitation
completion date as determined by the comm nity development manager.
Should the applicant relinquish his or he ownership interest in the
single-family dwelling or the rental residen al property during the five
(5) year term of the zero interest forgivable lo an, the balance of the loan
shall be repaid on a prorated basis of that fi e (5) year term at the time
such ownership interest is relinquished or :t the time any one of the
applicable eligibility requirements is no longe being satisfied.
3. An applicant owning rental residential prope ty shall provide the names,
addresses, and household incomes for th: tenants residing in each
dwelling unit. When the rental residenti:1 property is not owner
occupied, the applicant shall rent, at not ore than the section 8 fair
market rent rates, not less than fifty one pe cent (51%) of the dwelling
units (1 of 2 units, 2 of 3 units, or 3 of 4 un ts) in the rental residential
property to households meeting the cu rent section 8 guidelines
established by HUD for a period not less than six (6) months following the
completion date of the lead based paint control or abatement, as
determined by the community development anager. (Ord. G65-01 § 1,
2001)
2.30.100: GRANTS; GENERAL:
A. Evaluations Required: The community develop ent manager, or his or her
designee, shall evaluate or cause to be evaluated 11 single-family dwellings or
rental residential properties for which a grant •r loan is sought pursuant to
the terms of this chapter to determine whet o er they are lawful and to
confirm compliance with the property mainte•ance code. Such evaluation
shall be made prior to the execution of any agr:ement for a grant. A second
evaluation shall be made following completio• of work and prior to the
payment of any grant.
B. Applications And Guidelines: The community •evelopment manager, or his
or her designee, is hereby authorized and direct•d to prepare and distribute
the appropriate forms and guidelines for the im•lementation of this chapter.
C. Limitations: Grants or loans authorized under his chapter shall be limited
to the reimbursement of actual expenses incurre N for eligible repairs,shall be
payable only upon satisfactory completion of the designated repairs and shall
be limited to the amount approved at the time of execution of the
rehabilitation grant agreement. No grants s•all be approved for any
' rehabilitation, repair, reconstruction, lead •ased paint abatement or
accessibility improvement activities initiated •r completed prior to the
execution of the rehabilitation grant or loan ,greement. The community
development manager, or his or her designee, ay 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 develop ent manager, or his or her
designee, may grant a one time extension to a re•abilitation grant agreement
authorized under this chapter not exceeding si • (6) months when there are
circumstances, difficulties, or hardships that ma e unreasonable the time for
compliance specified by the rehabilitation rant agreement. For the
consideration of time extensions, personal cir umstances peculiar to the
property owner may constitute such circumsta•ces within the meaning of
this subsection as may material shortages, labor strikes, or seasonal
limitations preventing the completion of the work contemplated in the
rehabilitation grant agreement.
E. Failure To Perform: Failure to perform the obi'gallons of the rehabilitation
grant agreement shall subject the applicant t• repayment of any grant
monies received.
F. Penalty For Misrepresentation Or Failure To C•mply With Conditions: Any
person who wilfully makes any false stateme•t or misrepresentation in
obtaining a loan or grant under the provisions of this chapter, or wilfully
fails to comply with the applicable conditions aff cting that person's grant or
loan shall be subject to a fine of not less than o i e hundred dollars ($100.00)
nor more thin five hundred dollars ($500.00), sh 11 be required to reimburse
the city for the amount of the grant,plus the city s costs in administering that
grant, and shall forfeit the right to any future p rticipation in any program
authorized under the residential rehabilitation program ordinance. (Ord.
G65-01 § 1,2001)
r