R2004-178 AUTHORIZING EXECUTION OF AGREEMENTS

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Economic & Urban Development Department Memorandum # 04-165 November 9, 2004 TO: Honorable Mayor Osborne and City Council FROM: Steve Garm ity Manager Dane C. Br g Assistant City Manage� Linda J. Love,Neighborhood ProgramslVlanager � c�" Terry Cunningham,NeighborhoodlHousing Planner , , SUBJECT: HOME Supportive Housing Project Allocation for Harbor Place RECOMMENDATION: Staff recommends approval of the attached resolution authorizing execution of an agreement with Dove Inc. in which $50,000 in funds under the U.S. Department of Housing and Urban Development (HUD) HOME program will be allocated for Harbor Place. This project will provide eight units of permanent supportive housing for women who are recovering from substance abuse disorders to be reunited with their children. The funds were allocated for supportive housing in the FY2004 Action Plan. BACKGROUND: Dove, Inc. is developing a project known as Harbor Place on the 800 block of East Clay Street, � across from its offices. The development will consist of an eight unit, low-rise U-shaped building with a central courtyard, common areas, and a playground. Total project cost is $1,470,000,with other funding being provided by IHDA($1,108,750), HUD Supportive Housing Program ($214,510), the Federal Home Loan Bank ($80,000) and Illinois DCEO ($16,750). In addition, DCDF is providing a $219,443 loan far interim predevelopment and construction financing. Harbor Place will provide a safe, supportive environment for women who are in recovery from substance abuse disorders and are receiving ongoing treatment from Heritage Behavioral Health Center, where they can be reunited with their families. While Dove will develop and own the project, all supportive services will be coordinated through Heritage. The Decatur Housing Authority will provide Section 8 vouchers for all residents. This project is consistent with the City of Decatur's Consolidated Plan and specifically addresses the need outlined in priority area 2C of the Consolidated Plan to provide permanent supportive housing for persons with special needs. The project is consistent with the goals of, and eligibility ' guidelines for, the U.S. Department of Housing and Urban Development HOME program, to provide decent affordable housing to lower-income households. The project description, budget, funding commitments, and HOME agreement are attached. POTENTIAL OBJECTIONS: None known.