R2006-63 AUTHORIZING FUNDING AGREEMENT

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. �, � . .. _ HOME PROGRAM FY2005 COIVIMUNITY HOUSING DEVELOPMENT�,RGANIZATION (CHDO) AGREEMENT l �l� / � THIS AGREEMENT, entered into on the / � day of/� �� , 2006 by and between the City of Decatur, Illinois, hereinafter called the "City", and th�borhood Housing Development Corporation, organized under the laws of the State of Illinois, hereinafter called "NHDC". WHEREAS, the City has entered into an agreement with the U.S. Department of Housing and Urban Development, hereinafter called "HUD", for the purpose of conducting a HOME Program; and whereas the City has received a special allocation from HUD for housing to be developed or owned by a Community Housing Development Organization, hereinafter called "CHDO", for the purpose of providing permanent housing for chronically homeless individuals; and whereas NHDC has been identified as a CHDO, subject to the terms and conditions stated below; and whereas NHDC submitted a proposal dated March 27, 2006 to conduct activities eligible under the HOME program guidelines and requested a grant of HOME funds to carry out the activities under the stated proposal. NOW, THEREFORE, the parties in consideration thereto mutually agree and covenant as follows: I. SCOPE OF SERVICE A. NHDC may receive up to $209,400.00 from the City under the HOME Program to implement the proposed activities. Funding will be dispersed based upon actual project expenditures, for a total not to exceed the grant amount of$209, 400.00. B. NHDC shall use the funds as outlined in the proposal dated March 27, 2006, specifically, for eligible costs of acquisition, pre-development, construction, soft costs and other eligible items associated with the construction of 14 one-bedroom units in a two-story building located at the corner of Webster and Clay. This building will be used as permanent supportive housing for eight chronically homeless individuals. All additional sources of funds for the project must be confirmed prior to the start of the project, or adjustments to the budget must be submitted to the City to confirm that the project is able to be completed without the use of the additional funding source(s). C. NHDC shall not obligate or expend any funds under the terms of this agreement until a written Notice to Proceed is issued by the Economic and Urban Development Department of the City. The Notice to Proceed shall be issued following completion of all conditions of this Agreement which include (1) completion of environmental review requirements, (2) confirmation of additional funding sources as stated in I.B. above, and (3) submission of a signed extension to the Real Estate Purchase Contract for the property located on the corner of East Clay and Webster St., with a legal description of: William Martin's 2"d addition, W40' E 80 N 99 of Lot 1 BLK 1 and W 40' E 120 N' 99 of lot 1 BLK 1. until at least June 27, 2006. 1