R2004-105 AUTHORIZING FUND REALLOCATION

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' CITY OF DECATUR ILLINOIS HOME COMPETITIVE REALLOCATION As of today, construction is underway on Phase I of the Near North Redevelopment Project, now known as Wabash Crossing. This phase is building a"new urbanism"community with 206 rental units (100 public housing replacement units, 85 affordable tax credit units, and 21 market rate units) and 43 units of affordable for-sale single family housing. Phase I also includes a new elementary school,residential and linear parks, and streetscaped boulevards. When all three phases of project are completed, the new community will include 551 new rental units and 123 new homeownership units (both subsidized and market rate) along with a mixed-use"Town Center" and additional community facilities. This year, the Decatur Near North Redevelopment � Plan and Design Guidelines received an award for excellence in design from the Illinois Chapter of the American Planning Association. ' The City of Decatur's commitment to the Near North proj ect is demonstrated not only through policy,but through a major financial investment. The City expended approximately$6 million in CDBG entitlement funds for property acquisition, relocation and demolition. The City has committed another$10.4 million in public improvements including streets, utilities, site preparation, lighting, and landscaping. This is funded in part by an$8.5 million Section 108 guaranteed loan authorized by HUD in early 2003. On November 3, 2003, the City adopted the "Near North Redevelopment Project Area and Redevelopment Plan" and approved Tax Increment Financing for the project. In addition, the city committed$387,000 in HOME funds to assist constructing 43 affordable for-sale housing units in Phase I,with another$800,000 in HOME funds anticipated in later phases. In addition, the Near North Revitalization Project is providing job opportunities for low income residents of the area. An extensive Section 3 program is employing low income residents of the area in construction-related trades, and hiring local minority and women-owned contractors. As of November 2003, 582 certified Section 3-eligible residents are in the employment pool,with job training skills being provided to some through the "Step Up"program. Eight Section 3- certified contractors have been identified as eligible to bid on subcontracts. Completion of the Neaz North Redevelopment Area plan will significantly increase the supply of new, affordable rental and homeownership housing in the central part of Decatur. Funding of this grant application could allow for development of supportive housing units for the chronically homeless within a later phase of this project. The City's first venture into the development of new affordable housing was through the Neighborhood Housing Development Corporation(N�IDC), one of its CHDOs. Combining over $600,000 in HOME funds with financing from the Illinois Housing Development Authority (II3DA) and private sources,NHDC constructed 20 new single family homes in the Meadowlark Subdivision between 1999 and 2003. Located adjacent to the Decatur's industrial corridor with excellent access to job opportunities, these homes are occupied by first time homebuyers, the majority of whom are African American. NHDC undertook an aggressive marketing campaign to target first time homebuyers through local churches and other nonprofit organizations, and offered substantial purchase price writedowns, downpayment assistance, and interest free second mortgages to eliminate many of the traditional barriers to homeownership. Moreover, NHDC offered an extensive program for prospective buyers that included pre- purchase counseling, assistance in securing mortgage financing, and preventative maintenance training. PAGE 10