R2024-224 Resolution Authorizing an Amendment to the Central Illinois Land Bank Authority Agreement

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MEMORANDUM 2024-10 DATE: May 6, 2024 TO: Honorable Mayor Julie Moore Wolfe City Council Members FROM: Scot Wrighton, City Manager Jon Kindseth,Deputy City Manager SUBJECT: Resolution Authorizing an Amendment to the Central Illinois Land Bank Authority Agreement SUMMARY RECOMMENDATION: Staff recommends the City Council authorize the proposed funding with CILBA. The land bank wrote the grant application and is administering a$337,000 Illinois Housing Development Authority's (IHDA) Strong Communities Round 2 grant. The IHDA grant will support four rehab projects up to $75,000 rehab per home; however, the City's additional funding is necessary to fill budget gaps on these four rehabs projects in order to proceed with these rehab projects. BACKGROUND: CILBA has built a pipeline of its first ten homes for the"Abandonment to Rehab"project. The first completed rehab at 439 S Maffit was sold in March 2024. Five rehab projects are under contract and under construction. Another four projects will proceed with construction contracts if the City of Decatur provides additional funds to match the rehabs being done with the $337,000 IHDA grant. The benefit of this program is not limited to the houses that are being rehabbed instead of being demolished. They are also raising the comparable sale prices for each of the neighborhoods that these houses are in. For example,439 S. Maffit was acquired at fair market value of$18K but sold for$64,900, significantly improving home values in the Johns Hill neighborhood in a couple of years' time. The city's ARPA Funds used for building rehab have significantly leveraged other grant funding. In the last year alone, CILBA has raised over$1 Million in state grants for community revitalization work in Decatur and Macon County. The following grants were written by land bank staff and all grants being administered by CILBA: 1) Illinois Housing Development Authority's Strong Communities Round 2 grant-Decatur: $337,000 to support whole house rehabs. 2) Illinois Housing Development Authority's Strong Communities Round 2 grant—Macon County: $337,000 to support strategic demolitions and scale anti-blight work. 3) Illinois Housing Development Authority's Home Repair and Accessibility Program— Decatur: $400,000 to support roof replacement on homeowner occupied properties.