HomeMy WebLinkAboutResolution #0704
RESOLUTION NUMBER 7~ ~
A RESOLUTION ESTABLISHING THE REHABILITATION
GUIDELINES" TO BE USED IN THE ,ADMINISTRATION
OF THE COMMUNITY DEVELOPMENT BLOCK GRANT PRO-
GRAM IN THE CITY OF CANTON, ILLINOIS.
WHEREAS, the city of Canton, Illinois, under the date of July 31,
1975, entered into a "Grant Agreement" and "Funding Approval under
Title I of the Housing and Community Development Act of 1974" with
the United States of America for financial aid to the city of Can-
ton, Illinois, under Title I of the Housing and Community Develop-
ment Act of 1974, for the Community Development Block Grant Pro-
gram, Grant Number B-75-DN-17-0001, located in the city of Canton,
Illinois; and,
WHEREAS, in accordance with the Housing and Community Development
Act of 1974, the City Council of the city of Canton, Illinois,
deems it necessary and advisable to establish Rehabilitation Guide-
lines for use in administering the rehabilitation program as pro-
vided for in the Community Development Block Grant Program Applica-
tion; and,. "
WHEREAS, the city of Canton, Illinois, has had prepared proposed
"Rehabilitation Guidelines" to be used in the execution of the
Community Development Block Grant Program.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CANTON, ILLINOIS:
That the "Rehabilitation Guidelines," dated March
22, 1976, and hereto attached, be, and the same
are, hereby adopted by the city of Canton, Illinois,
for use in the administration of the Community De-
velopment Block Grant Program.
PASSED by the City Council of the city of Canton, Illinois, and
APPROVED by the Mayor thereof this 6th day of April, 1976.
APPROVED:
~ ~-
B
Ro ert F. Je ings, Ma r
Attest:
Nellie Craw ord, City Clerk
..r
Rehabilitation ,sidelines
r:HER?~:~S, the City of C'~n.._~, .. :_. ~ _,.itr~d Community Dcv:,lr, .,ent
funds; therefore, the (,i~: of Crsn~.;:: .~~::~~. ~, _ _..~:'~ilitation =,uid~: [ ~y which
the project ; 11 _ ~ _ _. ~~:; . ~" _._ i nes will _ _.. ci period-
ically to achieve the ma:~:imum impact _, ~.• - ~L-+ nor the Community Deve! c; ~i~_':Zt Home
Rehabilitation Grant Program.
I. Qualifications for grant. ~'::~ ~.pplicant must have owned and
occupied the property for at least one hundred eighty (180)
days prior to the time of the application. Either the owner
or the owner's spouse must be the principal wage earner. If
ownership of the property vests in more than one person, the
term "applicant" shall include all such persons.
a. "Owner" includes a contract purchaser, provided
that the contract for purchase is examined and
judbed to be an adequate legal document.
b. Good title. ~n attorney, _ervice will be used
~s necessary to _,tablis'~. ,-~~:,_rship and good
II. The structs~-e must be re~_'.~:1tia- nronerty containing one (1) or
two (2) duelling units and located in an area designated for re-
habilitation treatment. 'iocaever, emergency grants will be avail-
able to qualified nc::. ers anywhere in the City of Canton, pro-
~-i,°~ r the applicant .~ ~-its the eligibility require::ents.
III. Li::itation on grant amount. The amount of grant For which each
t;~ Licant qualifies d~^•~nds on family size ~:aa gr~.~ss income. The
_~.:..~s are derived from the maximum income limits for Section 8
'~:'.>'ic Housing Assistance Fulton County. Thy following chart
summarizes the grant limits for each income level.
GROSS
INCOME
~ GRANT
AMOUNT
Family Size 1 2 3 4 5 6 7 8
Grants a. $6,000 $ 7,650 $ 8,600 $ 9,600 $10,200 $10,800 $11,400 $11,950 $5,000
312 Loans b. 6,300 8,035 9,030 10,080 10,710 11,340 11,970 12,547 I 4,000
c. 6,615 8,434 9,481 10,584 11,245 11,907 12,568 13,274 ~ .3,000
d. 6,945 8,855 9,955 11,113 11,807 12,502 13,196 13,927 I 2,000
e. 7,292 9,297 10,452 11,668 12,397 13,127 13,855 14,623 1,000
f. 7,656 9,761 10,974 12,251 13,016 13,828 14,547 15,354 500
* Line b. through Line f. will be used for loans and grants when
low interest loans b~~ome available to the Department of Commu-
nity Development.
IV. Considered income.
a. The income includes wages and salaries, social
security, pension and annuities, interest and
dividends, and earnings from real estate (in-
eluding rent or room and board regularly re-
ceived on the property to be rehabilitated).
2
b. Lnc<: __ .. ill .... _ _ .~_.. ~ n the ~:ar,ner which
most accurately reLle.~t ~.ich applicant's true
financial cond.itic~~~. ~ ;i~leration will be
giv:~n on r'.1_~ in_'. icy ~ _ s ... __ _ income from
investments ~:r_f, ~~e~,t-~ ~~: -~~ ~ ~ ror ii-aelihood.
._. A1.1 income in;_c~:_ ._ ~e verified in „ci-
ting from the apprc;uriate sources.
V. Assets limitation for rant=.
a. For the purpose of determining grant eligibility,
assets will generally consist of cash, stocks and
bonds, and real estate other than the applicant's
personal residence. Those items normally consid-
ered a part of maii:taining a modest household
(furnishings, appliances, one automobile, etc.)
will not be included.
b. As a general rule, a retired individual or an
ia~ividual livin_ c:; a _~ income will be al-
lowed assets os X3,000. _. retired couple or a
couple living on ~ ~i_.e_ ~~.:come will be allowed
:13,000 assets. ~;1e pr ,:ci pal determinant of
grant eligibility is the applicant's income, and
Tahen evaluating assets, close scrutiny will be
liven to the effect on the income if those assets
iaere used to finance r_he rehabilitation work.
c. `~itii the limitations placed on income for grant
eligibility, it is not anticipated that non-re-
tired grant eligible homeowners will have sub-
stantial assets. Applicants in this category
~~~ill be limited to one (1) year's salary. Those
~~;=th assets in excess of the one year's salary
would be required to match any grant funds.
VZ. Conditions under which a grant is made.
a. All code violations cited by the housing inspec-
for must be corrected. If the grant amount is
not sufficient to correct all violations, the
applicant may provide supplemental financing.
Any supplementary funds must be deposited in
escrow before the work is started.
b. The purpose of the rehabilitation program is to
allow people to remain in their home in lieu of
being displaced by acquisition when they do not
have the financial means to make the needed re-
pair; therefore, the grant recipient must agree
to maintain the premises in good condition. The
owner must also agree to carry hazard insurance
covering the full value of the structure.
VII. Work allowable under rant.
a. The Community Development staff will provide
,F
. •~
full technical as:;istance - each grant. This
will include the initial i--,~:>~~ction, the writing
of specifications for -.. > be performed, se-
curing ~~~:d evaluat in; .. , . , ... _.,ir.~ the con-
structior, process. In m to correcting all
code violations, ti<<~ _ _v include, when feas-
ible, an amount to cover the following:
1. Incipient violations.
Those components oz a structure not
presently defective but which by virtue
of their age and condition are likely
to soon become a violation and should
be replaced.
2. Items which improve the marketability
of the structure. Also, those items
that make the structure more economi-
cally maintainable ~:~:ay be included in
the rehabiLtatia_~. r:~nc (e.g. sink,
cabinets, .: _:'•.r c.--~erings, etc.) .
The oojectives or the rehabilitation progr:~::;~ are designed to help the low- and
moderate-income individuals and families ~:~ho cannot financially afford to correct
structural deficiencies.