R2022-179 Resolution Approving an Agreement Between the City of Decatur and Decatur Area Habitat for Humanity Regarding American Rescue Plan Funds

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DATE: October 13,2022 TO: Mayor Julie Moore Wolfe Decatur City Council FROM: Scot Wrighton, City Manager Jon Kindseth, Deputy City Manager RE: Resolution Approving Agreement Between the City of Decatur and Decatur Area Habitat for Humanity Regarding American Rescue Plan Funds The City Council #1 priority is neighborhood revitalization. Realizing this goal, in the past, has been partially hampered by insufficient resources to invest in our neighborhoods beyond keeping up with the necessary demolitions. When the City was provided new revenue under the American Rescue Plan, the City Council allocated a significant portion to rehabilitation in target neighborhoods. This item advances revitalization through rehabilitation. The City allocated millions of ARP funds to be used under the eligible activity of increasing high-quality affordable housing. To achieve this staff has proposed three different types of residential rehabs: owner- occupied, rental property rehabs, and this piece of community partnerships for rehabs. This proposed agreement with DAH4H will provide up to$250,000 to be used in rehabbing vacant properties within Decatur to add higher quality housing stock. This agreement is like the "Abandonment to Rehab"program that the City Council approved with the land bank earlier this year. The City has been successful in acquiring several vacant derelict houses that can be rehabbed. The City is continuing to provide a pipeline of houses to the landbank to rehab these houses, but more partnerships are needed to continue to scale up this work. The money provided by the City will be used to purchase materials and cover expenses related to the rehabilitation of these houses. The basic framework of this program is that the City will identify and obtain the title to vacant houses that are determined to be rehabbed. City will provide some of these houses to DAH4H to manage the rehab of these houses, utilizing partnerships with the area High Schools, Trades & Labor Council, Workforce Investment Solutions, and local contractors. The houses will likely be used as the classrooms for the students and pre-apprenticeship program participants,providing our local students and residents hands on experience as well as a new marketable skill set. Upon successful completion of the rehab, DAH4H will seek out new first-time home buyers for these houses, as they have been doing for 35 years with their new construction home program. This program will provide new opportunities for our severely rent burden residents to have a chance at home ownership and generational wealth. It also allows for us to rehab blights structures to keep them off our demo list. This program will run in parallel with, and be complimentary to, other residential rehab programs using ARP funds allocated for housing rehabs.