R2023-18 Resolution Authorizing Agreement between City of Decatur, Illinois and Central Illinois Land Bank Authority Regarding Housing Assistance Programs

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ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT DATE: February 6, 2023 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 Agreement Between City of Decatur, Illinois and Central Illinois Land Bank Authority Regarding Housing Assistance Programs RECOMMENDATION: Staff recommends the City Council approve a resolution and enter into an agreement with the Central Illinois Land Bank Authority(CILBA) to administer housing assistance programs. BACKGROUND: The City of Decatur received a home repair and accessibility grant award from Illinois Development Housing Authority in an amount not to exceed $400,000. Eligible activities for this grant include, forgivable mortgage loans to low-income households (below 80%AMI) and very low-income households (below 50%AMI) in connection with making repairs for health, safety, energy efficiency, accessibility, roof repair or replacement. Also, the city has committed a match for this grant in an amount not to exceed $400,000, for a total grant amount of$800,000 to be expended over the next 24 months. The Central Illinois Land Bank Authority(CILBA) helped staff prepares and apply for these grant funds. Also, as Council knows, the city committed$500,000 of American Rescue Plan (ARPA) funds to launch an "Abandonment to Rehab"program in partnership with CILBA to address blight and encourage homeownership in our urban core. Cumulative, CILBA will be managing$1.3 million dollars in housing assistance programs for the City. In an effort to maximize these housing programs and ensure success, staff is recommending that CILBA manage and implement the home repair and accessibility grant and continue managing the abandonment to rehab program. Also, in an effort to safeguard that these grant monies are deployed before expiring, staff recommends committing $150,000 in calendar year 2023 and$150,000 in calendar year 2024 of ARPA funds to CILBA for administrative cost related to the housing programs mentioned above. ATTACHMENTS: Resolution, Agreement, Home Repair and Accessibility Commitment Letter. 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 civ Inck�,I dcc,lt 11 111 BUDGET/TIME IMPLICATIONS: None.