R2023-212 Resolution Authorizing City Manager to Amend the Terms of Agreement for the American Rescue Plan Funds to Land of Lincoln Credit Union

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AGREEMENT BETWEEN CITY OF DECATUR, ILLINOIS AND LAND OF LINCOLN CREDIT UNION REGARDING AMERICAN RESCUE PLAN FUNDS OWNER OCCUPIED CONTRACTOR LOAN FUND This Agreement("Agreement") is made and entered into between the City of Decatur, Illinois, an Illinois municipal corporation("City") and the Land of Lincoln Credit Union ("LLCU"), for and in consideration of the mutual covenants and promises and good and valuable consideration contained herein. WHEREAS,the City has received funds from the American Rescue Plan Act("ARP"); and, WHEREAS,the City has determined that a Contractor's Loan Fund Program is needed to provide access to capital for participating contractors for the purposes of purchasing materials needed for home improvements for city housing rehabilitation programs ("Program"); and, WHEREAS,the ARP funds received by the City may be used for specific eligible activities, including to finance,repair and rehabilitate homeowner occupied residential units, rental occupied residential units, as well as a home improvement revolving loan fund; and, WHEREAS,LLCU is a State Chartered financial institution founded in 1947 with its principal office located in Decatur, Illinois; and, WHEREAS,the City has determined that LLCU has the capacity to provide assistance and administer the Program. NOW, THEREFORE, in consideration of the mutual promises and covenants, it is agreed between the parties hereto the following: Section 1. The City agrees to provide an amount not to exceed Five Hundred Thousand Dollars ($500,000) from its portion of the ARP funds to LLCU for use in the Program upon execution of an Agreement between the City and LLCU. City will reimburse Land of Lincoln Credit Union in the amount of the principal loan for each eligible loan dispersed in the Program no later than thirty(30) days following the receipt of invoice. Section 2. The City will be responsible for determining criteria and eligibility for Program and notify LLCU of an applicant's eligibility in writing. Section 3. LLCU shall not provide, give or loan any monies under the Program without being notified in writing by City of specific eligibility of an applicant. Section 4. LLCU shall be responsible for the administration of loan funds provided in the Program made under the provisions of the Agreements between the parties.