R2004-105 AUTHORIZING FUND REALLOCATION

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' CITY OF DECATUR. ILLINOIS HOME COMPETITIVE REALLOCATION income families in obtaining a home through down payment assistance, education, and counseling. Only three years into the plan, Decatur had far exceeded this goal,having aided over 600 families in that time. Since 1999, the City has committed nearly$20 million of its revenue bond capacity to assisting low income residents in becoming homeowners. As stated in an ordinance adopted by City Council on March 3, 2003: "the Municipality has now determined that it is necessary, desirable and in the public interest to issue revenue bonds to provide an adequate supply of safe, decent and sanitary residential housing for low and moderate income persons and families within the Municipality, which such persons and families can afford."The Assist Program offers a 4.25% cash gift for downpayment and closing costs to qualified first-time home buyers working through local lenders. Since 2000, the Assist bond program has helped 553 Decatur families become homeowners. The City's Homebuyer Program assists low-income families with financing to purchase a home. Working through five local banks, the program uses HOME funds to provide a low- interest second mortgage for 25% of the purchase price. All recipients receive counseling to prepare them for home ownership. This program has assisted 571ow-income families in the past five years. In addition, City staff refers potential buyers to other downpayment assistance programs offered by local financial institutions and nonprofit organizations. The City also assists in providing financial education for its low-income residents. Decatur has two HUD-certified housing counseling providers: Consumer Credit Counseling Service of Central Illinois (CCCS), and the Community Investment Corporation of Decatur(CICD). City staff makes numerous referrals to both these organizations. Under contract with the public � housing authority, CICD provides homebuyer counseling for former public housing residents in the new Wabash Crossing redevelopment area. Decatur's two Community Development Housing Organizations (CHDOs)prepare clients to purchase housing developed with HOME funds, and local financial institutions counsel reci ients of down a ent assistance ro am P P Ym P gT s. In partnership with area fmancial institutions and nonprofit organizations, the City sponsors an annual Decatur Affordable Housing Fair. Last year's fair, coordinated by the Decatur Fair Housing Committee,provided its 53 attendees with information on credit requirements, home inspections, and other topics. This year, an affordable housing committee has "spun off'from the Fair Housing Committee to produce an even larger and more comprehensive event. Assistance to renters. Decatur's policies to make existing rental housing affordable to its low income households focus primarily on the use of rent subsidy programs. The City continues to support use and expansion of the Housing Choice voucher program to assist its low income renters. Currently 1,046 households use Housing Choice Vouchers administered by the Decatur Housing Authority. Due to the continuing need for rental assistance (an average of 400 families are on the waiting list for Housing Choice vouchers) the City's Consolidated Plan included a goal of adding 300 more vouchers, of which 100 were added in 2003. The City of Decatur was instrumental in designing two Shelter Plus Care projects that increased the affordability of permanent rental housing in 2001 and 2002. As one of the six principal partners in the Macon County Continuum of Care, the City helped plan the projects to make PAGE 6