R2022-83 Resolution Authorizing the City Manager to Enter into an Agreement with Land of Lincoln Credit Union for Property Rehabilitation Program Services

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ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT DATE: May 16, 2022 TO: Mayor Julie Moore Wolfe and City Council Members FROM: Scot Wrighton, City Manager Cordaryl "Pat"Patrick, Director of Economic and Community Development SUBJECT: Resolution Authorizing American Rescue Plan(ARP) Funds to Land of Lincoln Credit Union RECOMMENDATION: Staff recommends the City Council approve the resolution and authorize the city manager to negotiate terms of agreements with Land of Lincoln Credit Union to administer and provide loan services for a home improvement loan fund and a contractor's loan fund for the owner-occupied rehabilitation program utilizing ARP funds. BACKGROUND: At the April 11th Neighborhood Revitalization Study Session, staff presented eight recommendations to Council relative to combating our housing challenges in Decatur. One of those recommendations was investing in personal capital by partnering with Land of Lincoln Credit Union to manage a revolving loan for a home improvement loan fund and a contractor's loan Fund. The home improvement loan fund will provide access to capital for landlords, which in many cases, are unable to get a traditional loan for home improvements due to the value of the home (asset)being less than the loan amount needed for rehabilitation. The contractor's loan fund will provide access to capital for small contractors that may not have the cash flow for payroll, materials, supplies, transportation, lodging, etc.,to take on the owner- occupied rehabilitation program. This will help small contractors build personal credit and build their capacity as a business,which is critical to the success of our housing initiatives. Staff is anxious to launch the programs that the City Council tentatively approved on April 11. Since staff is still perfecting the contracts and agreements with Land of Lincoln, and because the Council will not meet again until June 20, it is requested that the City Manager be authorized to sign the agreements to embody the program details put forth here. ATTACHMENTS: Resolution and program specifics and outcomes. POTENTIAL OBJECTIONS: Staff is not aware of objections. INPUT FROM OTHER SOURCES: None. STAFF REFERENCE: Should the City Council have any questions, they may contact Cordaryl M. Patrick, Director of Economic and Community Development, at 424-2727 or e-mail cpatrick60,,decaturil.gov. BUDGET/TIME IMPLICATIONS: None.