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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.