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HomeMy WebLinkAbout04.30.18 SPECIAL CITY COUNCIL MEETING CITY OF EVANSTON, ILLINOIS LORRAINE H. MORTON CIVIC CENTER JAMES C. LYTLE COUNCIL CHAMBERS Monday, April 30, 2018 6:00 p.m. ORDER OF BUSINESS (I) Roll Call – Begin with Alderman Wilson (II) Mayor Public Announcements (III) City Manager Public Announcements STAR Communities Recognition of City of Evanston’s 4-STAR Sustainable Community Recertification (IV) Communications: City Clerk (V) Public Comment Members of the public are welcome to speak at City Council meetings. As part of the Council agenda, a period for public comments shall be offered at the commencement of each regular Council meeting. Public comments will be noted in the City Council Minutes and become part of the official record. Those wishing to speak should sign their name and the agenda item or non- agenda topic to be addressed on a designated participation sheet. If there are five or fewer speakers, fifteen minutes shall be provided for Public Comment. If there are more than five speakers, a period of forty-five minutes shall be provided for all comment, and no individual shall speak longer than three minutes. The Mayor will allocate time among the speakers to ensure that Public Comment does not exceed forty-five minutes. The business of the City Council shall commence forty-five minutes after the beginning of Public Comment. Aldermen do not respond during Public Comment. Public Comment is intended to foster dialogue in a respectful and civil manner. Public comments are requested to be made with these guidelines in mind. 1 of 122 City Council Agenda April 30, 2018 Page 2 of 3 (VI) Special Orders of Business SPECIAL ORDERS OF BUSINESS (SP1) Resolution 25-R-18, Supporting Direct Public Transportation Service to Evanston Township High School Staff recommends City Council adopt Resolution 25-R-18, supporting direct public transportation service to Evanston Township High School. For Action (SP2) Affordable Housing Work Plan Updates Staff presents City Council with updates on the Inclusionary Housing Ordinance Subcommittee, coach houses, the Landlord Rehabilitation Assistance Program, and the three-unrelated occupancy rule. For Action: Accept and Place on File (SP3) Resolution 26-R-18, Execute Intergovernmental Agreement with Evanston Township High School District No. 202 Staff recommends consideration of Resolution 26-R-18 authorizing the City Manager to execute an intergovernmental agreement (IGA) with the Board of Education of the Evanston Township High School District No. 202. The IGA recognizes the mutual benefits to the City, ETHS and the community of the educational and housing program commonly known as Geometry In Construction (GIC) and memorializes the expectations and commitments of both parties to maintain the program going forward. For Action (SP4) Expanding Accessory Dwelling Units to Address Housing Needs in Evanston Staff requests direction from City council regarding follow-up steps relating to Accessory Dwelling Units (ADUs) as a strategy to expand housing choices and affordable housing in Evanston. At its meeting on January 29, City Council directed staff to revise current zoning to allow rental of existing coach houses as a first step. An ordinance to permit this was introduced at the April 23, 2018 meeting. Staff proposes undertaking a comprehensive review of how to expand ADUs to further address Evanston’s housing needs. Involving the Age Friendly Taskforce in this evaluation, as well as in community outreach and education, would provide valuable perspective regarding housing needs of seniors, including smaller accessible housing units, the ability to age in place, and avoiding displacement due to rising housing costs. For Action 2 of 122 City Council Agenda April 30, 2018 Page 3 of 3 (SP5) Steps Toward Homeownership – Special Use for Small Lot Housing Staff recommends consideration of developing a Special Use process that would enable developers to propose the construction of modest-size homes on smaller lots than currently allowed by our zoning. This process would enable the development of “starter” homes affordable to first-time homebuyers and less affluent residents by reducing the land cost associated with the development of a single family home. It would also allow non-conforming parcels throughout our community that are currently undevelopable based on zoning to be put into productive use. For Action (SP6) Update on Priority Based Budgeting Process Staff recommends Council accept and place on file the update on the priority- based budgeting process and direct staff to move forward with the public outreach portion of the process. For Action: Accept and Place on File (VII) Call of the Wards (Aldermen shall be called upon by the Mayor to announce or provide information about any Ward or City matter which an Alderman desires to bring before the Council.) {Council Rule 2.1(10)} (VIII) Executive Session (IX) Adjournment MEETINGS SCHEDULED THROUGH MAY 15, 2018 Upcoming Aldermanic Committee Meetings 5/3/2018 7:00 PM Housing and Homelessness Commission 5/7/2018 6:00 PM Human Services Committee 5/14/2018 6:00 PM Administration & Public Works, Planning & Development, City Council 5/15/2018 7:00 PM Housing & Community Development Act Committee Information is available about Evanston City Council meetings at: www.cityofevanston.org/citycouncil. Questions can be directed to the City Manager’s Office at 847-866-2936. The City is committed to ensuring accessibility for all citizens. If an accommodation is needed to participate in this meeting, please contact the City Manager’s Office 48 hours in advance so that arrangements can be made for the accommodation if possible. 3 of 122 For City Council meeting of April 30, 2018 Item SP1 Resolution 25-R-18, Support Public Transit Service to ETHS For Action To: Honorable Mayor and Members of the City Council From: Erika Storlie, Interim Director of Community Development, Assistant City Manager Subject: Resolution 25-R-18, Supporting Direct Public Transportation Service to Evanston Township High School Date: April 26, 2018 Recommended Action: Staff recommends City Council adopt Resolution 25-R-18, supporting direct public transportation service to Evanston Township High School (ETHS). Livability Benefits: Built Environment: Promote diverse transportation modes Education, Arts & Community: Promote a cohesive and connected community Equity & Empowerment: Ensure equitable access to community assets Summary: City staff were a part of the steering committee to the joint Pace and Chicago Transit Authority (CTA) North Shore Transit Coordination Plan & Market Analysis Study (North Shore Coordination Plan) in Northeastern Illinois. Proposed Phase 1 changes were newly released in April 2018. However, Evanston was not previously made aware, or asked to weigh-in, on the details of the service discontinuations and replacements proposed in these Phase 1 changes, including number of trips to ETHS. Route 205, which the CTA is proposing to discontinue, includes direct stops to and from ETHS. The proposed replacement for CTA Route 205 is not an equivalent service and provides an undue hardship to transit riders, resulting in a less accessible and less livable community. Mayor Hagerty requested staff bring this resolution before City Council for consideration. Background: The North Shore Coordination Plan began in 2016 with rider and non-rider surveys and open houses showcasing existing conditions. Representatives from key agencies and municipalities, including Evanston, were invited to participate in the project Steering Memorandum 4 of 122 Committee. In September 2017, Pace and CTA hosted a second round of open houses to announce proposed updates and changes to routes. No information was provided on the number of trips to ETHS or other destinations on existing routes. Representatives only noted service would continue to ETHS but did not disclose the frequency of service. In April 2018, Pace and CTA released the Final Report and Route-by-Route Summary of Changes on the project website. These documents are dated December 2017 but were not released to the public or Evanston staff until published on the website. As part of the release of the detailed changes to the routes in April, Pace and CTA announced a joint public hearing, scheduled for April 24, 2018, from 4:30 – 6:30 pm in the Levy Senior Center in Evanston. The public hearing was well attended and many attendees had to stand. Pace and CTA presented on the proposed North Shore Coordination Plan Phase 1 study changes outlined in the Final Report. Proposed Phase 1 changes are scheduled to begin in April 2018, after approval by both the CTA boad and Pace board. As part of Phase 1, CTA proposes the discontinuation of Route 205, which provides 15 – 30 minute service frequency from 6:20 am – 6:35 pm, including direct stops to and from ETHS. Pace proposes to replace direct service to ETHS with one route from southeast Evanston in the morning and one route from ETHS to southeast Evanston in the afternoon with the extension of Pace Route 213 to CTA Howard Terminal. The proposed replacement for CTA Route 205, with one direct morning and one direct afternoon trip to ETHS from Pace Route 213, is not equivalent service. A lack of equivalent and direct service in the proposed Phase 1 changes makes Evanston less accessible and less equitable for all public transit users in Evanston. The City supports Pace and CTA delaying the proposed Phase 1 route changes to modify service to address the needs of all Evanston residents, including those traveling to and from ETHS. 5 of 122 4/30/2018 25-R-18 A RESOLUTION Supporting Direct Public Transit Service to Evanston Township High School WHEREAS, the City is committed to promoting the highest quality of life for all residents, including accessible, equitable, and independent public transportation options; and WHEREAS, increasing personal equity and independence in Evanston is obtained through diverse and accessible transportation choices to work, school, entertainment, shopping, and medical facilities; and WHEREAS, Pace and the Chicago Transit Authority (CTA) conducted a joint North Shore Transit Coordination Plan & Market Analysis Study in Northeastern Illinois, including the City of Evanston, and have proposed Phase 1 service changes that are not equivalent to current service levels; and WHEREAS, Evanston Township High School (ETHS) relies on CTA Route 205 as a critical service for the transportation of students and staff from southeastern Evanston; and WHEREAS, CTA proposes the discontinuation of Route 205, which provides 15 – 30 minute service frequency from 6:20 am – 6:35 pm, including direct stops to and from ETHS; and WHEREAS, Pace proposes to replace direct service to ETHS with one route from southeast Evanston in the morning and one route from ETHS to southeast Evanston in the afternoon; and 6 of 122 25-R-18 ~2~ WHEREAS, the proposed replacement for CTA Route 205 with one direct morning and one direct afternoon trip to ETHS from Pace Route 213 is not equivalent service and provides an undue hardship to transit riders, resulting in a less accessible and less livable community, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: SECTION 1: The foregoing recitals are incorporated herein by reference as though fully restated. SECTION 2: The City supports direct public transit service to ETHS for the provision of an accessible, equitable, independent, and livable community. SECTION 3: The City requests Pace and CTA delay the proposed Phase 1 route changes, and instead modify service to fully address the needs of all Evanston residents, including those traveling to and from ETHS. SECTION 4: That this Resolution 25-R-18 shall be transmitted to the Pace and CTA Board of Directors for their consideration. SECTION 5: That this Resolution 25-R-18 shall be in full force and effect from and after its passage and approval in the manner provided by law. _______________________________ Stephen H. Hagerty, Mayor Attest: _______________________________ Devon Reid, City Clerk Adopted: __________________, 2018 Approved as to form: ______________________________ Michelle L. Masoncup, Interim Corporation Counsel 7 of 122 For City Council meeting of April 30, 2018 Item SP2 Affordable Housing Work Plan Updates For Action: Accept and Place on File To: Honorable Mayor and Members of the City Council From: Erika Storlie, Interim Community Development Director Sarah Flax, Housing and Grants Administrator Savannah Clement, Housing Policy and Planning Analyst Subject: Affordable Housing Work Plan Progress to Date Date: April 26, 2018 Recommended Action: Included in this memorandum are updates on the Inclusionary Housing Ordinance Subcommittee, coach houses, the Landlord Rehabilitation Assistance Program, and the three-unrelated occupancy rule. Funding Source: N/A Livability Benefits: Built Environment: Support housing affordability; provide compact and complete streets and neighborhoods; and Equity & Empowerment: Ensure equitable access to community benefits, and support poverty prevention and alleviation. Summary: Inclusionary Housing Ordinance Subcommittee The Subcommittee met on January 17th, 2018, and February 7th, 2018. The next meeting was put on hold until a housing finance workshop could take place. The date for the workshop is tentatively scheduled for Wednesday, May 30th, at 6:30 p.m. It will take place in the James C. Lytle Council Chambers. Rental of Coach Houses City Council approved the rental of coach houses to non-family members at its meeting on April 23, 2018. Landlord Rehabilitation Assistance Program Staff has completed the application materials for the program. A program agreement has been drafted and sent to the Law Department for revisions. Once the agreement is finalized, staff will begin accepting applications for the program. Memorandum 8 of 122 In addition, staff has provided a brief comparison chart (below) of the City’s CDBG Housing Rehab Program and the Landlord Rehab Assistance Program. The CDBG Housing Rehab Program is for both single-family and multi-family rehabilitation work. Both the CDBG and the Landlord Rehab Assistance programs could be beneficial for different types of rehab work. The appropriate program will be determined by staff and the landlord depending on the scope of work, and the landlord’s ability to provide money upfront. The CDBG Housing Rehab Program is designed more for property owners who lack the capacity to get market rate financing. The job specifications, bidding, work oversight, etc. is handled by the City’s housing rehab specialist to ensure all federal regulations are followed. CDBG Housing Rehab Landlord Rehab Assistance Loan terms 0-3% interest based on underwriting; amortized or deferred based on anticipated cash flow and ability to pay debt service 0% interest, forgivable after affordability term City contribution 100% of project costs up to $50,000 or $20,000/unit 50% of project costs, up to $50,000 Affordability restrictions 51% of units must be affordable to households earning at or 80% AMI at project completion Depends on project: if rehab work only applies to one unit, that unit must be rented to HHs earning at or below 60% AMI; if project applies to whole building (such as roof work), then all units must be affordable to HHs at or below 60% AMI. HH incomes can go up to 80% AMI after initial occupancy. Length of affordability There are no long-term affordability requirements Contingent on loan amount: Under $10,000: 10-year affordability term; between $10,000 and under $25,000: 15-year affordability term; between $25,000 and up to $50,000: 20-year affordability term 9 of 122 Occupancy 3-Unrelated Staff seeks direction on next steps to address the occupancy limit for residential dwelling units of no more than three unrelated persons. At its meeting on October 30, 2017, City Council referred this to the Planning and Development Committee. At its meeting on January 8, 2018, the Planning and Development Committee requested a white paper on rooming houses. At the January 29 City Council meeting, the need to address occupancy standards was discussed. At the October 30, 2017 and January 29, 2018 meetings to discuss ways to address the shortage of housing affordable to low, moderate, and middle income households, council members discussed the effect of the occupancy limit of no more than three unrelated persons per dwelling unit in the City Code. The “three unrelated clause” is difficult to enforce and impacts affordable housing options, particularly for seniors, immigrants and households of unrelated persons that are becoming more common. It limits home sharing, which can provide affordable housing in existing underutilized structures such as single family homes designed for large families/households but occupied by a senior, and provide additional income to enable owners living on a fixed income to pay property taxes and other expenses. Discussion revolved around the ineffectiveness of the “three unrelated” ordinance at regulating behavior of individuals in housing. It was noted that over occupancy of dwelling units can be effectively addressed using the occupancy standards in the Property Maintenance code, which uses square footage and room configuration to establish maximum occupancy. In addition, the Nuisance Premises Ordinance provides a means to address behavior of residents that is disruptive to neighbors. The ability of landlords to rent to four or more unrelated students for higher rent, or to not address maintenance needs because the students could not request a compliant-based property standards inspection to address the issues without risking eviction for non-compliance with the three unrelated rule was also discussed. Rooming houses, which are already addressed in City zoning, were discussed as a means of allowing larger numbers of unrelated people to share a dwelling unit. However, current zoning restricts rooming houses to multi-family zoning districts as a special use; rooming houses are not allowed in single family zoning districts. A staff memo on rooming houses in Evanston and a map of their locations is attached. Additional considerations Cohousing, a housing alternative more common in Europe, particularly in Denmark where it began, is gaining interest in the U.S. The cohousing movement seeks to create intentional communities whose residents commit to being a part of the community for their mutual benefit. It also has some common elements with the sharing economy. Individuals or families live in their own dwelling spaces, yet share common spaces and activities, such as cooking and dining. Cohousing can take many forms and can be ownership or rental. A number of cohousing developments for seniors have been developed and AARP is advocating for expansion of cohousing to address the needs of the growing senior population. 10 of 122 In addition, there are a small number of hosing cooperatives in Illinois, including the Stone Soup Cooperative and Qumbya Housing Cooperative, both in Hyde Park, where residents live in groups and share household chores, often paying below-market rents. Some cooperatives are structured like college dorms, where each resident has a separate room but shares common rooms and appliances or bathrooms with multiple stalls. Qumbya has more than 50 residents ranging in age from young children to retirees living in three separate properties. The Fellowship for Intentional Community lists 20 communities in Illinois, including Reba Place Fellowship in Evanston. Additional research could be undertaken on cohousing and cooperative options as a means of expanding affordable housing options at the direction of the Council City Code relating to occupancy is shown below. 6-18-3. - DEFINITIONS. FAMILY: (A) Type (A) Family: One (1) or more persons related by blood, marriage, or adoption living together as a single housekeeping unit in a dwelling unit. (B) Type (B) Family: Two (2) unrelated persons and their children living together as a single housekeeping unit in a dwelling unit. (C) Type (C) Family: A group of not more than three (3) unrelated persons living together as a single housekeeping unit in a dwelling unit. (D) Type (D) Family: A group of two (2) or more persons containing within it one (1) or more families, as defined in Subsections (A) and (B) of this definition, including a husband and wife married to one another and their children, as well as adults, living together in a dwelling unit as a single housekeeping unit and management, in premises in which the adult occupants are affiliated with a bona fide not for profit corporation organized for religious purposes chartered by the state of Illinois, that owns or rents the property and has been in existence for at least five (5) years prior to seeking certification by the director of planning and zoning as provided herein; provided, that in no case shall the total occupancy of the dwelling unit exceed two (2) persons per bedroom, nor shall the premises be utilized for religious public assembly. This type (D) family may occupy a dwelling unit only in accordance with the procedures in Section 6-4-1-14 of this Title. "Family" shall not be construed to mean a club, a lodge or a fraternity/sorority house. 6-4-1-14. - OCCUPANCY OF DWELLING UNITS. No dwelling unit shall be occupied by more than one (1) type (A), type (B), or type (C) family, as defined in Chapter 18, "Definitions," of this Ordinance except as hereinafter provided: (A) Upon written application to the Zoning Administrator, certification of approval shall be issued or occupancy for a dwelling unit by a type (D) family in all districts where dwelling units are allowed, except the R1 and R2 districts, provided that the application establishes that the occupancy conforms with the definition of a type (D) family. The members of a type (D) family household shall not keep or store more than one (1) motor vehicle for each such dwelling unit or for each off-street parking space lawfully existing in connection with such dwelling unit, whichever is greater. Certification would be revoked at any time the occupancy or off-street parking no longer 11 of 122 conforms to the definition of a type (D) family, or if a request for current records is not answered so as to establish that the type of ownership complies with the definition of a type (D) family. (B) No dwelling unit which contains less than one thousand (1,000) square feet of floor area shall be used to provide living quarters for roomers, servants or permanent guests. Where the floor area of a dwelling unit exceeds one thousand (1,000) square feet and the family occupying the dwelling unit is a type (A) or type (B) family then the dwelling unit may also be used for living quarters for not more than two (2) servants, roomers, or permanent guests, provided that the living quarters are located within the dwelling unit as a physically integral part. Attachments: • Landlord Rehabilitation Assistance Program Guidelines • Residential Housing Rehabilitation Program Description & Guidelines • Rooming houses memo from January 29, 2018 • A map of the city’s rooming houses 12 of 122 City of Evanston Landlord Rehabilitation Assistance Program Program Guidelines Approved by City Council March 12, 2018 C O M M U N I T Y D E V E L O P M E N T D E P A R TM E N T H O U S I N G & G R A N T S D I V I S I O N 2100 R IDGE A VENUE , E VANSTON , I LLINOIS 60201 847-448-4311 | WWW.CITYOFEVANSTON.ORG 13 of 122 City of Evanston – Landlord Rehabilitation Assistance Program Guidelines P a g e | 2 Program Purpose and Overview The purpose of the Landlord Rehabilitation Assistance Program (“the Program”) is to maintain existing affordable housing throughout the city by providing financial assistance to local landlords. The Program is for landlords that own and manage affordable rental units in Evanston. Program participants are eligible to receive City funding upon the completion of their approved rehabilitation work (“the Project”). The funding is in the form of a loan, forgivable over a specified time year period that is contingent on the loan amount. Applicants seeking funding for building improvements are eligible for up to 50% of the total project cost, for a maximum amount of $50,000 in City funding. Applicants that have received assistance from this Program within the last ten years are not eligible for funding. The Program is managed and administered by the Housing and Grants Division of the Community Development Department. Eligibility Criteria Eligible participants of the Program include rental property owners with income qualified tenants in the building or unit(s) being rehabbed. A property owner of affordable rental units must:  Be current on all fees and taxes owed to the City of Evanston;  Be in good standing with the City regarding code violations and inspections;  Have income qualified tenants that are at or below 60% of area median income at initial occupancy; and  Re-certify household incomes on annual basis to ensure that they are at or below 80% AMI after initial occupancy. The needs of the property will be evaluated and rehabilitation project specifications will be prioritized to address the following conditions, listed in order of priority: 1. Code Violations and Life-Safety Needs: These items are included in the City of Evanston’s housing code, building code and rehabilitation standards, oftentimes the building owner may have been given a written notice of a violation by the City’s Building Department of Property Standards Division. o Life threatening conditions o Health and safety items o Items which alleviate a physical hardship for disabled or elderly tenants, such as egress ramps, grab bars, mobility modifications to kitchen and baths, etc. 2. Incipient code violations: These items include those elements which will lengthen the useful life of the structure, but are not yet an immediate threat to the occupants or the structure. 3. Energy and resource conservation: These items are directly related to the conservation of energy and resources by upgrading the dwelling’s thermal protection, installing water saving fixtures, installing energy-efficient furnaces or other major mechanical equipment, and/or window replacement. These items are to conform to the Department of Housing and Urban Development’s “Initiative on Energy Efficiency in Housing.” 14 of 122 City of Evanston – Landlord Rehabilitation Assistance Program Guidelines P a g e | 3 Rehabilitation activities which are generally eligible are replacement of major building components (roof, HVAC, plumbing, electrical, etc.) that are no longer functioning, replacement of windows and/or doors that are not safe and do not properly secure the home, modernization of kitchens and bathrooms, and interior/exterior property preservation (such as painting, siding, tuck pointing, soffit and fascia repair or replacement, etc.). All Projects completed through this Program must conform to the City of Evanston Property Rehabilitation Standards for the HOME Investment Partnerships Program/Community Development Block Grant. Basic maintenance, including cleaning and repainting of units before being leased, and beautification, whether interior or exterior, would not be eligible expenses unless necessary to return the property to its condition after other eligible work described above has been performed. Creation of new or additional habitable space is not allowed as part of the scope of work. Once the work specifications are agreed upon, the landlord will be responsible for soliciting a minimum of three (3) construction bids, with a preference for local MWEBE contractors, for all work. The landlord has the ultimate responsibility for selection of the contractor. If the lowest responsible bid is not accepted, the landlord must provide a justification for using another contractor. Throughout the duration of the forgivable loan, the landlord will be required to submit annual compliance reports to the City in order to ensure the building or unit(s) remains affordable. If the landlord maintains compliance with the affordability restrictions for the life of the loan, the loan will be forgiven and the City’s lien will be released from the property. Landlord Rehabilitation Assistance Program Administration The Program provides participants the opportunity to receive funding of up to 50% of the total Project costs, upon approval and completion of rehabilitation work for the Project, up to an approved amount of less than or equal to $50,000. Participants are responsible for submitting billing and payment requests to the City. The participant shall pay 50% of the bill for completed work on the Project, and the City will pay the balance. The City shall not make payments of less than $10,000, unless the payment is for the Project’s final bill. Funding Source(s): Projects will be funded through: The City’s Affordable Housing Fund. Payment/Forgivable Loan: The funding is in the form of a loan, forgivable over a specified time period contingent on the loan amount, as follows:  Under $10,000: 10-year affordability term  Between $10,000 and under $25,000: 15-year affordability term  Between $25,000 and up to $50,000: 20-year affordability term If the rehab work is for one unit only, then the affordability terms would apply to that unit. If the rehab work is for the building as whole, such as roofing, HVAC, etc., then the entire building is subject to the affordability terms. Terms & Conditions 15 of 122 City of Evanston – Landlord Rehabilitation Assistance Program Guidelines P a g e | 4 In accordance with the Program Guidelines, the City of Evanston will provide financial assistance up to the approved amount of a project at no more than half of the total project cost. The funding will come in the form of a loan forgivable over the time period specified above. Any draws paid by the City of Evanston pursuant to this program shall not be made until all work has been approved by the City. Additionally, all payments for said work must be made to directly to the contractors, material suppliers, and vendors. Participants of the Program must submit to the City of Evanston itemized invoices detailing work completed and materials purchased. Such invoices shall include proof of payment to all contractors, suppliers, and vendors. Documentation must be submitted within 45 days of project completion. The participant shall also submit unconditional lien releases and other documentation as required by this Program. The participant is responsible for 50% of all payments to all contractors, material suppliers, and vendors. Any draws paid by the City of Evanston pursuant to this Program constitute loans made to the participants. Said loans will be forgiven, as described in the Program Agreement, however, if the property owner or successor-in-interest assumes the participant’s obligations of the Program Agreement pursuant to a City-approved assignment and assumption agreement, and continues to house income qualified tenants in the rehabilitated property and maintain the improvements for a specified period time period (10, 15, or 20 years) from the date the program agreement is signed without removing or significantly altering the Improvements, as determined by the City of Evanston in its sole discretion. If the property owner sells the property owner or fails to maintain affordability through the life of the forgivable loan, the remaining share of the loan (prorated on a monthly basis) shall become due, plus three percent (3%) interest per annum payable to the City of Evanston is due within thirty (30) calendar days, unless the succeeding property owner or business owner (i) assumes the obligations of the Program Agreement pursuant to a City of Evanston approved assignment and assumption agreement, and (ii) does not make any changes to the property resulting in the removal of significant alteration to the Improvements, and maintains the Improvements for the specified time period in the loan (10, 15 or 20 years) from the date of the last payment made by the City for the Project. The prorated amount due will be obtained by multiplying the original loan amount times the percentage obtained by dividing the number of months remaining in the loan’s time period that commences on the month that the program agreement is signed and ends, which is the total number of months in the loan period. Prevailing Wages: Projects utilizing Affordable Housing Funds are not required to comply with federal Davis-Bacon Prevailing Wages or State of Illinois Prevailing Wages. Project Completion: Projects must be completed within 180 business days of receiving the Notice to Proceed by the City. Property Taxes and Liens: Property taxes must be current, and participants may have no debts in arrears to the City when the Commitment Letter is issued. The property must also be clear of all other non-debt related liens. 16 of 122 CITY OF EVANSTON R E S I D E N T I A L H O U S I N G R E H A B I L I T A T I O N P R O G R A M D E S C R I P T I O N & G U I D E L I N E S City of Evanston Community Development Department Building & Inspection Services 2100 Ridge Avenue Evanston, Illinois 60201 847-448-4311 www.cityofevanston.org Effective April 20, 2015 17 of 122 1 INTRODUCTION The City of Evanston is dedicated to promoting safe, sanitary and decent housing for its citizens. To facilitate this, the City offers a Housing Rehabilitation Program, funded by the Department of Housing and Urban Development’s Community Development Block Grant (CDBG) program, which provides financing to maintain and improve the quality of Evanston’s housing stock that is occupied by low and moderate income households. The Rehabilitation Program provides income eligible owner-occupants and owners of residential investment properties that are occupied primarily by income eligible households, with financial assistance in the form of below market rate loans to accomplish this purpose. The guidelines as set forth in this manual include the program purpose and priorities, eligibility criteria, program design, rules and policies that generally govern the Housing Rehabilitation Program. PURPOSE, OBJECTIVES AND PRIORITIES The Housing Rehabilitation Program was developed to improve the quality of housing, and therefore quality of life, for low to moderate income owners and renters by providing necessary improvements to meet their housing needs. PROGRAM OBJECTIVES 1. To provide safe and sanitary housing to low and moderate-income homeowners and renters within the City of Evanston; 2. To encourage the revitalization, preservation, and stabilization of primarily low and moderate income neighborhoods in Evanston; 3. To reduce housing costs for low to moderate income residents by incorporating energy conservation techniques into housing rehabilitation projects; PROGRAM PRIORITIES & ELIGIBLE ACTIVITIES Loans will considered based on the applicant’s ability to incur and repay, whether immediately or in the anticipated future, debt obligations made using the property as collateral. The needs of the property will be evaluated and rehabilitation project specifications will be prioritized to address the conditions set forth, in the following order: 1. Code Violations and Life-Safety Needs These items are included in the City of Evanston’s housing code, building code and rehabilitation standards, oftentimes the building owner may have been given a written notice of a violation by the City’s Building Department or Property Standards Division. 18 of 122 2  Life threatening conditions  Health and Safety items  Items which alleviate a physical hardship for disabled or elderly applicants, such as egress ramps, grab bars, mobility modifications to kitchen and baths, etc.  Structural, electrical, mechanical, plumbing, fire prevention and other code items not addressed above 2. Incipient Code Violations These items include those elements which will lengthen the useful life of the structure, but are not yet an immediate threat to the occupants or th e structure. 3. Energy and Resource Conservation These items are directly related to the conservation of energy and resources by upgrading the dwelling’s thermal protection, installing water saving fixtures, installing energy-efficient furnaces or other major mechanical equipment, and / or window replacement. Items in this category, that are not already part of the scope of work due to a need as listed in Categories 1 or 2 above, will be completed if the Borrower’s financials allow for the loan to increase in order to complete items within this category. These items are to conform to the Department of Housing and Urban Development “Initiative on Energy Efficiency in Housing”. Rehabilitation activities which are generally eligible are replacement of major home components (roof, HVAC, plumbing, electrical, etc.) that are no longer functioning, replacement of windows and/or doors that are not safe and do not properly secure the home, demolition of structures (such as a garage) if deemed an unsafe structure and interior and exterior property preservation (such as painting, siding, tuck pointing, soffit and fascia, tree removal if tree is diseased or deemed hazardous, etc.). At no time will unnecessary beautification, whether interior or exterior, be added as a scope of work, unless it is necessary to return the property to the condition it was prior to other work (as described above) being performed. Creation of new or additional habitable space is not allowed as part of the scope of work. GENERAL RULES AND TERMS OF ELIGIBILITY ONE & TWO-UNIT AND CONDOMINIUM OWNER-OCCUPIED REHABILITATION The following general rules govern the financial conditions that apply to all programs offered under the One and Two-Unit as well as Condominium Owner-Occupied Rehabilitation Program. Applicants who do not meet the criteria set forth in these General Rules will be denied assistance. 19 of 122 3 1. Applicant must own and occupy a single-family property, two-unit property or condominium unit as their principal residence throughout the term of the loan. 2. The income of the entire household cannot exceed 80% of the median income of the Chicago Primary Metropolitan Statistical Area (PMSA). Income eligibility is determined using 24 CFR Part 5 method of income determination. See Appendices for current income limits and a description of how household income is determined. 3. With two-unit properties, the unit not occupied by the owner must be occupied within four (4) months of completion of the Housing Rehabilitation. Eligibility will be determined based on the owner’s unit and household information only; t here are no restrictions on household income or rent amount for the rental unit. 4. An applicant will be ineligible for any housing rehabilitation program if he/she owes any back taxes or if there are any adverse encumbrances, judgments or liens on the property to be rehabilitated. 5. Housing Rehabilitation loans may be made in a subordinated position to a fixed-rate primary mortgage, however, subordination to reverse or adjustable-rate mortgages are not allowed Subordination to other loan products will be evaluated on a case by case basis. The final loan to value ratio, including the City’s funding, must be 100% or less. The loan to value is calculated by adding the market value of the property to 50% of the rehabilitation costs, which is then divided by the total of all mortgages on the property. If there is a household with a code violation or life-safety need that exceeds the 100% value limit, consideration will be made on a case by case basis, under the assumption the household would otherwise qualify for a loan. 6. In the event of a sale or transfer of property; refinancing of the primary mortgage (if applicable) without a subordination approval from the City of Evanston; death of the borrower(s); or vacancy of the premises by the owner; the loan is due payable in full. Heirs of the property may make application for a new loan and are required to meet the program eligibility requirements at the time of application. The loan must be paid off or an application for a new loan must be made within 60 days of the loan recipient’s death. If an application is not received within 60 days, the loan will start accumulating interest at a rate of one-half of the 30-year Treasury Bond rate as issued monthly. If the property is transferred to a minor due to death or incapacity of the borrower, the laws of wills and trusts in the State of Illinois shall apply. After the minor has reached the age of 18, the individual assumes the obligations and restrictions contained within the title transfer loan, namely the Mortgage and Promissory Note, to the extent permitted by law. 7. No applicant shall receive additional rehabilitation assistance within 10 years of the date of completion of the original rehabilitation loan; if an existing rehabilitation loan is in default status; or if the owner has a previously defaulted loan that has been written off by the City of Evanston. Consideration will be given to emergency repairs where health or life safety concern 20 of 122 4 exists where previous assistance was provided within the 10 year period. 8. For single-family or two-unit properties the maximum loan amount is $50,000. For condominium units, the maximum loan is $20,000 per unit. The actual loan amount will be determined by the City’s loan committee with consideration of applicant’s financial circumstances, the value of the home before and after rehabilitation and the scope of the work as determined by the Housing Rehabilitation Specialist. 9. For condominium units, loans are only for those areas within a unit that the owner of the unit has authority to change, alter or improve, as defined by the condominium declaration, by- laws, and or other rules and regulations as issued and adopted by the condominium association or board. If condominium covenants require board notification for work performed, an affidavit of notification will be requested. 10. Cooperatives are not eligible for the CDBG-funded rehabilitation program. INVESTOR OWNED RENTAL REHABILITATION The following general rules govern the financial conditions that apply to all programs offered under the Investor Owned Rental Rehabilitation Program. Applicants who do not meet the criteria set forth in these General Rules will be denied assistance. 1. Applicant must own a building containing two or more rental units . Condominiums and cooperatives are not eligible for this program. 2. Applicants cannot owe any back taxes on the property nor have any outstanding adverse encumbrances, judgments or liens. 3. The maximum loan for is $20,000 per unit. The actual loan amount will be determined by the City’s loan committee with consideration of applicant’s financial circumstances, the value of the property before and after rehabilitation and the scope of the work as determined by the Housing Rehabilitation Specialist. 4. Housing Rehabilitation loans may be made in a subordinated position to a fixed-rate primary mortgage, however, subordination to reverse and adjustable-rate mortgages are not allowed. Subordination to other loan products will be evaluated on a case by case basis. The final loan to value ratio, including the City’s funding must be 100% or less. The loan to value is calculated by adding the market value of the property to 50% of the rehabilitation costs, which is then divided by the total of all mortgages on the property. If there is a household with a code violation or life-safety need and funding exceeds the 100% value limit, consideration will be made on a case by case basis, under the assumption the household would otherwise qualify for a loan. 5. No applicant shall receive additional rehabilitation assistance within 10 years of the date of completion of the original rehabilitation loan; if an existing rehabilitation loan is in default status; or if the owner has a previously defaulted loan that has been written off by the City of 21 of 122 5 Evanston. 6. Applicants shall execute a personal guarantee for the amount of the loan, in addition to executing an Assignment of Rents. 7. At least 51% of all units must be occupied by tenants with an income at or below 80% of the median income of the Chicago Primary Metropolitan Statistical Area (PMSA). Income eligibility is calculated using 24 CFR Part 5 method of income determination. See Appendices for current income limits and a description of how household income is determined. The income-qualified units must be rented at affordable rates as defined by current HUD Fair Market rates. Tenant verifications for income must be submitted on an annual basis by the building owner. See Appendices for information regarding Fair Market Rents and Tenant Income Reporting. 8. Buildings with eight or more units are subject to Davis-Bacon Standard Provisions and other Related Acts. Buildings with more than four units are subject to the Uniform Federal Accessibility Standards. 9. The program is subject to the availability of funding. APPLICATION PROCEDURES The Community Development Department’s Building & Inspection Services Division has programmatic oversight of the application and loan qualifying process. All loans will be taken to the Loan Committee for review and determination of approval and loan terms. The application process is as follows: 1. Inquiries regarding the program may be directed to the staff of the Housing Rehabilitation Program. Upon request, any interested party can be sent an application form, which must be completed it its entirety and submitted with all requested supplemental information related to the Household’s income, asset and debt history. 2. Completed applications are to be submitted to the City for consideration; applications will be prioritized first by priority needs (life-safety issues will take precedence over incipient code violations, for example) and second by date of receipt. Any application being held on the waiting list for another application will be notified in writing as such, and owner will have the opportunity to withdraw application. Once a wait list application begins to be processed, the property owner will be notified in writing as such. 3. If any additional information or documentation is needed in order to process an application, Housing Rehabilitation Program staff will contact the applicant and/or a member of their household. Failure to provide this information or documentation could render the application incomplete and unable to be processed. 4. Staff will review the property for compliance with HUD’s required environmental review process, which includes a historic preservation review. It must be determined that there are 22 of 122 6 no adverse environmental conditions present that would disallow the project from moving forward. More information regarding the Environmental Review Process can be found in the section below. Any structure designated as a Landmark Building by the Evanston Preservation Commission shall be subject to review by that Commission before rehabilitation can be considered for approval. 5. Income will be calculated for the household using the HUD Part 5 definition of income, which will be used to determine eligibility. If a household is determined to be income eligible, the Housing Rehab Specialist will make an appointment with applicant(s) to complete a home inspection to determine the scope of work and estimated budget based on the program priorities listed previously. The inspector will evaluate the needs of the home utilizing the City Inspection Checklist (see Appendices). The proposed scope of work and estimated cost will be presented to the loan committee for consideration. If a project is determined to be ineligible for assistance, a letter will be sent to the applicant informing the applicant(s) the reason for denial; the applicant shall have five (5) business days from the date of the letter to appeal a denial. 6. The Committee will review all information including household income, household size, applicant(s) debt and mortgage information, scope of work, preliminary budget and any relevant supporting information (such as pictures, code violations, etc.). The Committee will make a decision as to what the applicant(s) are able to afford, what work shall be considered part of the final scope of work and the terms of the loan (See Loan Terms and Conditions for more information on how this is evaluated). 7. A letter detailing the decision of the Loan Committee shall be sent to the applicant(s) within two (2) business days of the Loan Committee meeting; the applicant(s) shall have up to five (5) business days to accept the loan and shall schedule a loan closing appointment with the staff of the Housing Rehabilitation Program. If the loan is denied by the Loan Committee, a letter will be sent informing the applicant(s) the reason for denial; the applicant shall have five (5) business days from the date of the letter to appeal a denial. 8. If approved, the applicant shall sign a mortgage, note and project agreement consistent with the terms of the approved loan. The documents shall be recorded at the Cook County Recorder of Deeds office by staff. LOAN TERMS AND CONDITIONS Each applicant, if determined to be income-eligible for participation in the CDBG-rehabilitation loan program, will be evaluated to determine what loan terms they are able to afford. This is based on an analysis of the scope and cost of the work to be performed, value of the home, outstanding mortgage loan(s), household debt-to-income ratio and any other factors affecting the long-term affordability of the home. Investor-owned rental properties will also be evaluated on the property’s operating budget and capital improvement plan reserves. The analysis will be brought to a loan committee, composed of no less than three Building & Inspection Service and Housing & Grants staff members, who collectively make a decision as to income-eligibility, scope of work approval and assignment of loan product. All approved loan 23 of 122 7 applicants will receive either an amortized loan or a deferred loan from the City. Appeals of loan committee decisions may be made within five (5) business days of the date on the notification of decision. DEFERRED LOAN A Deferred Loan has zero (0%) interest and no monthly payments. When the property is sold or title otherwise transferred, or in the event of the death of the mortgagee, the Deferred Loan becomes due and payable in full. A mortgage will be recorded in the full amount of the Deferred Loan. This product will be offered to income-eligible owner-occupants of single-family, two-unit and condominium units who do not have the financial capacity to afford loan payments due to their income, high cost of living and/or high debt-to-income ratio, as determined through underwriting. Usually this will be for households with a total debt-to-income ratio at or above 43% for a 20 year loan term. A deferred loan may be offered to investor-owned properties that show insufficient capacity to operate the property as safe and sanitary housing and cover additional debt service based on an underwriting review of the property’s pro forma and capital replacement plan. Owner(s) will have to demonstrate an inability to provide outside investment (private financing, conventional loan or line of credit, etc.) for a deferred loan to be considered. This product may also be offered to non-profit agencies for housing that serves low-income, special needs populations where the agency does not have adequate capital reserves for needed improvements. These situations will be reviewed on a case-by-case basis, with an analysis of the property’s operating budget, rent roll and capital improvement plan to determine inability to make repairs outside of CDBG investment. AMORTIZING LOAN An Amortizing Loan has equal monthly payments for the term of the loan. The loan term may be 5, 10, 15 or 20 years and is based on the size of the loan and the mortgagee’s capacity to carry debt service based on underwriting. This product will be offered at zero (0%) interest to income-eligible owner-occupants of single-family homes, two-flats or condominium units who have been determined have the capacity to afford loan payments based on their household income, housing debt, debt-to income ratio and other factors, as determined through underwriting. Usually loan terms will be structured so that the household’s total debt-to-income ratio does not exceed 43% over a 5, 10, 15 or 20 year loan term. An amortizing loan with interest may be offered to investor-owned properties or non-profit agencies who own and operate rental properties which, through underwriting, based on th e property’s operating pro forma and capital replacement plan, show a capacity to operate the property as safe and sanitary housing and cover additional debt service over a 5, 10, 15 or 20 year period. The interest rate will be determined through underwriting and will not exceed 3%. 24 of 122 8 LOAN SERVICING Upon completion of the rehabilitation project, a loan completion letter will be sent to the owner as a confirmation of project completion and a reminder of the terms of the project, including ongoing compliance requirements and loan terms. Annual compliance requests will be sent to owners for the term stated in the mortgage, note and project agreement, or until the loan is fully satisfied, whichever comes first. The City shall have the right to call the Note as due in full in the event of a default for non- payment or non-compliance of all terms of the mortgage, note and/or project agreement. Housing Rehabilitation loans may be subordinated to another mortgage to allow a property owner to refinance a first mortgage, provided that the refinance is to better the financial situation of the property owner (e.g.: lower interest rate, more affordable payment, etc.). In order for a subordination request to be considered, the new loan and homeowner must meet the following criteria:  The terms of the new loan are not predatory  There is no cash out (the homeowner cannot receive a check from the new lender due to the new loan)  The property owner is in compliance with all aspects of the Housing Rehabilitation loan they currently have. A service charge of $50.00 shall be required to process the subordination agreement. Applicant shall submit a completed subordination agreement request with an accompanying remittance of $50.00 to the City. All requests require a minimum processing time of two weeks. The mortgagee is responsible for payment of recording costs. REHABILITATION STANDARDS AND PROJECT MANAGEMENT PROCEDURES These general procedures and physical standards for the rehabilitation of existing residential properties have been developed to provide minimum design and construction criteria for the City Rehabilitation Program. These provisions are intended to serve as an aid in carrying out rehabilitation objectives and goals, which seek to address those physical, social, and economic factors which have tended to contribute to neighborhood deterioration. REHABILITATION STANDARDS The Housing Rehabilitation Program uses a combination of HUD’s Housing Quality Standards (HQS), HUD’s Final Rule on Lead-Based Paint Poisoning, the City of Evanston’s Building Code and the International Code Council’s (ICC) International Property Maintenance Code (IPMC), International Residential Code (IRC) and the International Energy Conservation Code (IECC) as the basis for determining minimum property standards. These code standards are hereby incorporated by reference and made a part of these property rehabilitation standards. Additionally, the rehabilitation program will utilize an inspection checklist (see appendices) as a basis for determining the needs of the properties that are rehabilitated under this program. The rehabilitation standards may be superseded in whole or in part by the above codes in instances where code requirements are more stringent. The purpose and intent of the rehabilitation standards are three-fold: 25 of 122 9 1. To assure improved housing that is livable, healthful, safe, and physically sound, and at the same time is low enough in cost for the present residents of the building to afford. 2. To provide a guide to an acceptable minimum level for residential rehabilitation with sufficient flexibility to meet varied local conditions. 3. To encourage innovation and improved technology for reducing construction and maintenance costs in order that safe and decent housing may be provided to as many City residents as possible. Rehabilitation work completed as part of this program shall be in compliance with the above listed codes and standards; while it is the goal of the program to bring the home completely up to code, it may not always be feasible as the home may require more work than is financially feasible. When there is more work than dollars available to bring a home up to code, work will be given consideration based on the program priorities listed on pages 2 and 3. All work shall be done with medium and/or construction grade materials; there shall be no ability for the owner to upgrade materials to luxury grade. If there shall be a change in any project specification due to an item being out of stock of the contractor’s inability to find the originally contracted item, replacement items shall be of similar size, quality, and shape unless noted otherwise. Energy efficiency improvements shall be made when either the component is at the end of its useful life or the cost of the rehabilitation of said component shall bear a cost that is realized in energy- efficiency savings within the life expectancy of the component or 20 years, whichever is less. ENVIRONMENTAL REVIEW The City of Evanston is the Responsible Entity for the City’s entitlement grants and is therefore responsible for the Environmental Review (ER) referred to in the regulations at 24 CFR Part 58 for CDBG-funded activities. Housing and Grants staff ensure that the ER process is complete and in compliance with the National Environmental Protection Act (NEPA) before funds are committed to a specific activity. The City’s Community Development Director is the Certifying Officer (CO) for HUD Environmental Reviews for purposes of compliance, having been delegated that role by the City Manager. The CO is the decision-maker concerning whether a project is approved or rejected on the basis of the environmental review findings. The Housing Rehab Specialist is responsible for conducting ERs for specific housing rehab projects. The City plans to use a tiered review process for Housing activities for its 2015-2019 ConPlan. The Grants and Compliance Specialist will be responsible for the Tier 1 review, which addresses all environmental issues that can be addressed on a community wide basis such as airports and farmland. The Housing Rehab Specialist will complete the Tier 2 review, which addresses all issues that are site specific, including noise, above and underground storage tanks and Historic Preservation, under the supervision of the Grants and Compliance Specialist. Procedures The Housing Rehabilitation Specialist and Grants and Compliance Specialist use the Environmental Review Process flowchart provided by the Region 5 Environmental Officer to determine the level of review for each activity as outlined below: 26 of 122 10  Review of all activities funded in the annual Action Plan to determine the level of ER based on activity type (Exempt; Categorically Excluded, Not Subject to 58. 5; Categorically Excluded, Subject to 58.5; or Environmental Assessment), including consideration of using tiered or aggregated reviews for projects with unspecified sites.  Complete the appropriate ER form (Exempt, Statutory Checklist, Environmental Assessment, or other applicable review format) by conducting research on the various laws and authorities, collecting information and documentation, making determinations and consulting with appropriate agencies and resources.  Publish or post any applicable notices relating to use of funds for the appropriate length of time based on the ER level and receive any comments  If required, submit the Request for Release of Funds (RROF) (7015. 15) to HUD  Pending receipt of the Authority to Use Grant Funds from HUD (Form 7015. 16), enter into agreements (subrecipient agreements, memoranda of understanding (MOU), or contracts, as appropriate); these agreements include federal uniform administrative and cross-cutting requirements, as applicable. The City will re-evaluate its environmental findings and decisions if there are substantial changes in the nature, magnitude, or extent of a project, or if environmental conditions are discovered during implementation of a project. If the changes do not affect the original determination, this will be documented to the file. In any instance where changes make the original determination invalid, a new ER will be prepared. Record Keeping A written Environmental Review Record (ERR) will be created and maintained for every activity and project funded in full or part with CDBG (§ 58.38). The ERR substantiates decisions and conclusions concerning the environmental impact of the activity or project. Each ERR is retained in the project file in compliance with CDBG records retention policy and includes the following documentation as appropriate based on the level of review:  Complete description of the activity or project, including funding amount and source(s), with pictures of the site and renderings of completed project, as appropriate  Completed ERR form (dated and signed by CO)  Documentation of the evaluation of the effects of the activity or project on the environment, including, but not limited to: o Consultation with applicable authorities, including Historic Preservation Planner o All determinations and findings o Verifiable source documents and relevant base data  Maps (including the location of the project)  Letters of correspondence, approvals or required permits  Phase I and Phase II Environmental Site Assessment reports LEAD BASED PAINT POLICY & PROCEDURES All housing units in a project assisted with CDBG funds must comply with the regulations of the Lead 27 of 122 11 Safe Housing Rule (LSHR) found at 24 CFR Part 35. The purpose of this regulation is to notify the occupants of the hazards of lead-based paint and to identify and address lead-based paint hazards during the project. Specific requirements vary depending on the type of work performed and the level of federal subsidy. For CDBG-funded projects involving the acquisition or rehabilitation of housing, the lead-based paint requirements established by the regulation fall into the major categories listed below: Summary of Required Activities to Address Lead-Based Paint Category Required Activities Notification All of the following notices must be provided as ap propriate:  Lead Hazard Pamphlet  Disclosure  Notice of Lead Hazard Evaluation or Presumption  Notice of Lead Hazard Reduction Activity Lead Hazard Evaluation One or more of the following may apply:  Visual Assessment  Paint Testing  Risk Assessment (or Lead Hazard Screen) Lead Hazard Reduction One or more of the following may apply:  Paint Stabilization  Interim Controls (or Standard Treatments)  Abatement The following always apply:  Safe Work Practices  Clearance Ongoing Maintenance This requirement may apply.  Inspect and maintain lead hazard reduction work Exemptions CDBG projects may be exempt from the Lead Safe Housing Rule if they meet the criteria listed below:  Housing units constructed after 1978.  Emergency repairs to residential properties are being performed to safeguard against imminent danger to human life, health or safety, or to protect the property from further structural damage due to natural disaster, fire or structural collapse. The exemption applies only to repairs necessary to respond to the emergency.  Properties that will not be used for human residential habitation. This does not apply to common areas such as hallways and stairways of residential and mixed-use properties  Housing projects exclusively for the elderly or persons with disabilities, with the provision that children less than six years of age will not reside in the dwelling unit.  An inspection performed according to HUD standards found the property contained no lead- based paint 28 of 122 12  According to documented methodologies, lead-based paint has been identified and removed, and the property has achieved clearance  The rehabilitation will not disturb any painted surface  The property has no bedroom.  The property is currently vacant and will remain vacant until demolition The Renovation, Repair, and Painting Rule (RRP Rule) The Renovation, Repair, and Painting Rule (RRP), issued by the EPA in 2008 and amended in 2010 and 2011, requires the use of lead-safe practices and other actions aimed at preventing lead poisoning. Contractors performing renovation repair, and painting projects that disturb lead-based paint in homes built before 1978 must be EPA-certified and must follow specific work practices to prevent lead contamination. Further, for jobs where lead-based paint is disturbed, firms must assign one or more “certified renovators,” who have successfully completed an EPA -approved training course. All renovation workers must receive on the job training from the certified renovation. Projects subject to the EPA RRP do not require clearance examinations. All contractors with RRP covered projects funded by CDBG must follow these three simple procedures:  Contain the work area  Minimize dust  Clean up thoroughly. Procedures Applications for funding are reviewed by Housing and Grants staff to determine if they are subject to either the HUD LSHR or the EPA RRP and provide information on the appropriate regulations, including the certifications required for any paint inspectors, risk assessors and individuals performing lead clearance testing, from 40 CFR 745.226. Bid documents for covered projects must specify any certifications required by contractors and the project budget must include costs for evaluating lead- based paint hazards, as well as appropriate lead hazard reduction activities (paint stabilization, interim controls or abatement) in their project budgets. The City’s Housing Rehab Specialist is responsible for ensuring compliance with LSHR on all rehab projects and must be a certified Illinois Department of Public Health Lead Inspector. The Rehab Specialist is responsible for:  Calculating the level of assistance by taking the lower of the per unit rehabilitation hard costs (regardless of source of funds) or the per unit Federal assistance (regardless of the use of the funds).  Determining the most appropriate approach to evaluate lead hazards and address them as summarized below:  For projects ≤ $5,000 per unit, workers must be trained in safe work practices, notices must be provided to owners and tenants, and clearance must be achieved.  For projects between $5,000 and $25,000 per unit, either: o Presume that lead-based paint is present and perform standard treatments in lieu of interim controls on all applicable painted surfaces and presumed lead-based paint hazards 29 of 122 13 o Conduct a lead hazard screen instead of a risk assessment. If the screen indicates there is no lead contamination, no lead hazard reduction is required. If the screen indicates the presence of lead, a risk assessment must be conducted and required interim controls and clearance performed  For projects over $25,000 per unit, either: o Presume that lead-based paint hazards exist and abate all applicable painted surfaces that will be disturbed during rehabilitation and all presumed lead hazards o Conduct a lead hazard screen instead of a risk assessment. If the screen indicates there is no lead contamination, no lead hazard reduction is required. If the screen indicates the presence of lead, a risk assessment must be conducted and required abatement and clearance performed The Rehab Specialist is responsible for ensuring all notifications, including the Lead Hazard Information pamphlet, Evaluation or Presumption of Lead Hazards, and Lead Hazard Reduction work, are provided to property owners and residents; and that contractors have the appropriate certification and training and all lead safe practices are followed. All actions must be documented in the project file. PROJECT MANAGEMENT & REHABILITATION PROCEDURES 1. Prior to a final approval, but after the project has been determined to be income-eligible, the Rehab Specialist will make an appointment with the owner to inspect the property. The purpose of the inspection is to assess the needs of the property and determine a final scope of work, including the requirements to address any lead hazards. The Rehab Specialist will create a preliminary scope of work and budget based on the inspection which will then be taken to the loan review committee for consideration. 2. The loan committee will review the proposed scope of work and budget, as well as the application and supplemental documents, and make a decision as to program eligibility, appropriateness of the scope of work and budget and loan terms. If the application is approved, the loan committee will collectively determine the budget for the project (which shall include an appropriate amount of contingency funding, generally not to exceed 20% of the total project budget) as well as the terms of the loan as appropriate based on underwriting of the application. 3. A letter will be sent to the property owner within two (2) business days of the loan committee meeting informing them of the proposed scope of work, budget and loan terms or of denial for eligibility for the program. The property owner shall have five (5) business days to appeal any decision. Appeals will be heard by the loan committee. For approved projects, the Rehab Specialist will meet with the owner at the property to review the final scope of work and detailed project work write-up and specifications and obtain approval to proceed with the bidding process. 4. Once the work specifications are agreed upon, the Rehab Specialist shall solicit construction bids using the program’s Approved Contractors List; if the owner would like a contractor that is not on the list to be part of the bidding process, the contractor shall request to be added to the approved contractor list and provide evidence of program requirements and shall be approved to be eligible before bidding on the job. Contractors shall be notified by letter to submit bids by the deadline in the bid package in order to be considered for the job. Contractors must attend a scheduled walk-through of the property and meet the owner to be eligible to bid on the job. Contractors are ineligible to 30 of 122 14 perform work on their own home as part of the program . On behalf of the owner, the Rehab Specialist obtains a minimum of three (3) proposals from contractors for all work. 5. The Housing Rehab Specialist recommends a contractor to the property owner based on the lowest responsible and responsive bid. The property owner has ultimate responsibility for selection of the contractor from among the bids that are deemed responsible and responsive by the Rehab Specialist. If the lowest responsible bid is not accepted, the property owner shall provide justification for using another contractor. 6. Contracts are drafted for the rehabilitation work in addition to the owner’s mortgage, note and project agreement. A loan closing meeting will be scheduled where the owner and contractors will meet to review all rehabilitation related documents and contracts and execute signatures by all parties. Expectations of rehabilitation, including timeliness of work, payment and lien release procedures and quality of work will be discussed. Upon execution of all contract documents, the owner will also close on their loan by signing the mortgage, note and project agreement. Once all documents have been signed by the City, each party to the contract will receive copies. One copy of each document will also be placed in the project file. 7. If there is a contract of $100,000 or more, a contractor shall provide a performance bond prior to the start of construction. A copy of the bond, as well as the sworn statement, shall be placed in the project file. 8. City project management during the rehabilitation process will include progress inspections in addition to required inspections by the Building & Inspection Services Division for plumbing, electrical, mechanical and structural work, if applicable. Any deviations from the rehabilitation contract or issues with the workmanship of the contractor shall be handled as soon as the Rehab Specialist is made aware. Resolutions may include written notice of failure to perform requesting the contractor to complete the work in a manner that is to the satisfaction of the owner and in accordance with the contract, or in extreme circumstances, removal of the contractor and rebidding the job for another contractor to complete. The owner should make the Rehab Specialist aware of any concerns immediately and the Rehab Specialist shall take any unresolved issues to the loan review committee to consider remediation actions. 9. Any change to the contract shall be made in the form of a change order; no changes shall be made by physically writing on the original contract or by verbal authorization. Change orders under $500.00 which are modifications to the original scope of work due to unforeseen circumstances or unavailable materials may be made without loan committee consideration, but must be made in writing and signed by the owner, contractor and Rehab Specialist. Change orders over $500.00 or that adds a new item to the scope of work (for reasons identified above, not to add additional items at the discretion of the owner) shall be taken to the loan committee for consideration. If said change order is approved, it shall be made in writing and signed by owner, contractor, Rehab Specialist and Building & Inspection Services Division Manager. 10. Payments shall be made to the contractor in amounts no less than 33% of the contract amount, unless it is the sole and final payment of the contract. Payments shall be made to contractors only 31 of 122 15 after receipt of original lien waivers, sworn statements, pay-out orders, inspection tickets, contractor affidavits and, when necessary, paid invoices are provided to the City. For projects with eight or more units, certified timesheets must be submitted with any payment request. Additionally, payments will only be processed when the property owner has signed a payment authorization form confirming their satisfaction with the work completed as identified in the invoice. If the property owner refuses to sign the payment authorization, the loan committee may make decisions as to the appropriateness of payment to the contract; invoices deemed appropriate for payment will be made and will be debited from the owner’s loan balance. This will be conveyed to the owner in writing. If all of the work has been completed satisfactorily, the contractor shall submit a final pay-out order affidavit, and all necessary releases of liens and warranties shall be collected for distribution to the property owner. For work not satisfactorily completed, the City shall issue a “punch -list” (statement of incorrect or incomplete items) to the contractor. The items shall have to be completed within a specified time period, as stated on the punch-list. Once the “punch-list” items are completed and approved the Housing Rehab Specialist the pay-out shall be processed. Final payments shall follow the same procedures as listed above. 11. Upon completion of all rehabilitation work, a final lead clearance shall be ordered. Upon obtaining lead clearance certification, the rehabilitation project is considered complete. Unspent funds shall be applied to the loan amount and final principal balance determined. The owner will receive a loan completion statement informing them of their repayment obligations and loan terms, including final principal balance of the loan. 12. All contractors are required to provide a one-year warranty from final contractor payment date on all work performed on rehabilitation activities. The owner is responsible to contact the contractor for any warranty-related problems. Should a dispute between the contractor and owner arise during the contractor’s one-year warranty period, every attempt shall be made by those parties to reach an agreement. There is no obligation or liability of the Community Development Department in such circumstances; however, Community Development staff may enter into the negotiations to facilitate an agreement. CONTRACTOR ELIGIBILITY & DEBARMENT All contractors shall be pre-approved by the City of Evanston as eligible to participate in the Rehabilitation Program. In order to be eligible, a contractor must have any required trade licenses, not have any judgments or liens against them, have current proof of insurance and must be in good standing with the City of Evanston. They must also have appropriate lead hazard training, certification and insurance for any lead hazard stabilization, interim controls or abatement requirements. Contractors and subcontractors listed on the Federal System Award Management website (www.sam.gov) as debarred or excluded may not be used by the Housing Rehabilitation Program. Additionally, any contractor on the City’s local debarred contractor list may not be used. If the any contractor has consistently exhibited poor workmanship, unethical behavior, or refuses to comply with the requests of the City, or if the contractor falsifies information, files for bankruptcy or if the City has reason to doubt his/her solvency, has insufficient insurance, fails to honor warranty work or has failed to complete or pursue diligently this or any other rehabilitation projects, the contractor 32 of 122 16 shall be barred from any further rehabilitation work associated with the Housing Rehabilitation Program. The contractor shall also be removed from any eligible Contractor’s List, and may, at City of Evanston discretion, be removed from his current project. In that event, any and all financial obligations of the City to the contractor shall be at an end as of the date of termination. The local Contractor Debarment shall be in effect for two (2) years, after which time, the contractor may re- apply to be eligible for the program. DEFINITIONS After-Rehabilitation Value: An estimate of the post rehabilitation market value of a property. This value is calculated by adding 50% of the proposed rehabilitation costs to the as-is appraised. Amortization: The gradual extinguishment of a debt (including interest, if any) by equal monthly payments. As-Is Appraised Value: An estimate of the market value of a property in its existing condition as determined by an appraiser or, in the absence of the need for a professional appraisal, an estimation of value by Housing Rehabilitation staff. Assets: An account or tangible item, which has a cash value or can be converted to cash. These include, but are not limited to, cash, stocks, bonds, CDs, checking accounts, savings accounts, retirement account, etc. Code Violations: Violations of the current ICC International Property Maintenance Code as adopted and amended by the City of Evanston, other current applicable City building codes and Housing and Urban Development (HUD) standards. Deferred (Title Transfer) Loans: Deferred loans are loans made at zero (0%) percent interest without monthly payments. The property serves as collateral in the form of a mortgage. When the property is sold or title is otherwise transferred, of in the event of the death of the mortgagee, the deferred loan shall be paid in full. Gross Monthly Income: The Housing Rehabilitation Program uses HUD’s Part 5 definition of income to determine eligibility to participate in the program and receive assistance. Household income includes the incomes of all adults living in the property, regardless of familial relationships. Gross monthly income shall include, but is not limited to:  The gross earnings, which include, salary, overtime pay, commissions, fees, tips, and bonuses  Interest and/or dividends.  Passbook value of equity in the subject property owned by the applicant.  Net income from business or net rental income.  Social security, annuities, pensions, retirement funds, etc. 33 of 122 17  Unemployment benefits, Workers compensation, etc.  Alimony, child support, welfare payments. Housing Expenses: Payments for principal and interest on loans secured by lien on the property, mortgage insurance premiums, hazard insurance premiums, real estate taxes, special assessments, homeowner assessments, and other relevant housing expenses. Incipient Code Violations: An element of the structure which is not in violation of the housing code but which appears to be in a condition which will deteriorate into an actual code violation in the near future. Investor-Owned: A property that is owned by an investor, or group of investors, for which the majority of the property is rental units not occupied by one or more of the owners . Mortgage: A duly-recorded encumbrance upon a property. Owner-Occupant: A person who occupies and will continue to occupy property of which he/she is the legal owner. Rehabilitation: The process of reconstructing a usable structure, using modern techniques and materials, which overcomes deterioration and code violations and provides a satisfactorily improved physical condition. Residential Property: A property used for residential purposes. Standard Dwelling Unit: A dwelling unit which meets existing minimum housing code standards for habitation. Specifically, a dwelling unit in compliance with the current ICC International Property Maintenance Code, as adopted and amended, and HUD Minimum Property Standards. Substandard Dwelling Unit: A dwelling unit that does not meet the criteria for a standard dwelling unit. A substandard dwelling unit can be classified as either: 1) Deteriorated unit, i.e., one that is substandard but is structurally sound or able to be made structurally sound and can be brought up to standard condition with rehabilitation; or 2) Dilapidated unit, i. e., a substandard unit that has deteriorated to the extent that it is unsafe, unsanitary, or dangerous to human life, and rehabilitation is not feasible. 34 of 122 For City Council meeting of January 29, 2018 Item Rooming Houses Research For Discussion To: Honorable Mayor and Members of City Council From: Johanna Leonard, Community Development Director Sarah Flax, Housing and Grants Administrator Savannah Clement, Housing Policy and Planning Analyst Subject: Rooming Houses Research Date: January 24, 2018 Recommended Action: At its meeting on January 8, 2018, the Planning and Development Committee requested a white paper on rooming houses. Staff seeks direction on next steps. Funding Source: N/A Livability Benefits: Built Environment: Support housing affordability; provide compact and complete streets and neighborhoods; and Equity & Empowerment: Ensure equitable access to community benefits, and support poverty prevention and alleviation. Discussion: During the January 8, 2018 Planning and Development Committee discussion on the City’s three-unrelated occupancy rule, Committee members requested more information on rooming houses in Evanston and nationwide. Presently, there are a total of 76 buildings registered as rooming houses in Evanston. However, most of the buildings are owned by Northwestern University and operate as dorms or fraternity/sorority houses. Evanston hotels are also registered as rooming houses. An attached map indicates the location of the current registered rooming houses throughout Evanston. Hotels such as the Homestead and Margarita European Inn offer extended stay options but do not consider themselves to be rooming houses. Many of the smaller, single family home structures offer rooms for rent to Northwestern University students. Current zoning code stipulates that rooming houses must receive a special use zoning approval in all multi-family residential districts, and are not at all permissible in any other district. However, many of the rooming houses that currently exist do not have special use status since they were in existence prior to the adoption of the current zoning code Memorandum 35 of 122 and are considered legal nonconforming uses. Many of these structures look like single family homes, but rent by the room with shared kitchens and common areas. Background: Evanston’s current rooming houses are regulated by the following language in the City Code: 5-2-6. - ROOMING HOUSES; REQUIREMENTS AND STANDARDS. Every provision of this Chapter which applies to rooming houses shall also apply to hotels, except to the extent that any such provision may be found in conflict with the laws of the State. (A) At least one flush water closet, lavatory basin and bathtub or shower, properly connected to a water and sewer system approved by the Director of Community Development and in good working condition, shall be supplied for each six (6) persons or fraction thereof residing within a rooming house including members of the operator's family whenever they share the use of such facilities, provided that in a rooming house where rooms are let only to males, flush urinals may be substituted for not more than one-half (½) of the required number of water closets. All such facilities shall be so located within the dwelling as to be reasonably accessible to all persons sharing such facilities from a common hall or passageway. Every lavatory basin and bathtub or shower shall be supplied with hot water at all times. No such facilities shall be located in a basement except by written approval of the Director of Community Development. (B) The operator of every rooming house shall change supplied bed linens and towels therein at least once each week, and prior to the letting of any room to any new occupant. The operator shall be responsible for the maintenance of all supplied bedding in a clean and sanitary manner. (C) Every room occupied for sleeping purposes shall contain the following floor space: One person ..... 70 square feet More than one person ..... 50 square feet per occupant (D) Every rooming unit shall have safe, unobstructed means of egress leading to safe and open space at ground level as required by the laws of the State and the City. (E) The operator of every rooming house shall be responsible for the safe and sanitary maintenance of all walls, floors and ceilings and for the maintenance of a sanitary condition in every other part of the rooming house. The operator shall be further responsible for the safe and sanitary maintenance of the entire premises where the entire structure or building is leased or occupied by the operator. History of Rooming Houses: In the early 20th century, rooming houses offered affordable housing for America’s urban working class. However, with rising affluence over the course of the century, housing options such as rooming and boarding houses were mostly regulated out of existence. 36 of 122 Most American cities today control the low end of the housing market, by setting a minimum size requirement around 400 square feet for a studio. As a result, this frequently eliminates housing options for low income individuals in high cost markets. Additionally, building codes throughout the country established occupancy limits, capping the number of unrelated people who can room together under the same roof. In his 2013 ebook, Unlocking Home: Three Keys to Affordable Communities, Alan Durning argues that limitations on housing options at the bottom end of the market results in creating an increase in demand, thereby increasing rents on all other portions of the housing market. Durning outlines three key ways municipalities can create more inexpensive housing options in walkable neighborhoods, at little or no cost to the public: 1. Legalize rooming houses; 2. Decriminalize roommates; and 3. Welcome accessory dwelling units. In Seattle, WA, developers have built what are being called, “apodments.” The units in these buildings are more akin to a dorm room, with some units as small as 120 square feet. Each unit comes equipped with a bedroom, small bathroom and a microwave, and cost about half the price of a studio apartment. Alan Durning states that the old rooming houses served both upwardly mobile young people and middle-aged working-class singles. He asserts that new rooming houses could do this, as well. Attachments: A map of the city’s rooming houses 37 of 122 McCORMICK BLVDSH E R IDAN RD PARK PL ASHLAND AVEDODGE AVEHURD AVEGIRARD AVELEE STOAK AVE SHERIDAN PL RIDGE CTG R E E N B A Y R D THAYER ST PRATT CTGRANT JENKS ST HAVEN ST PAYNE ST LEON PL P O P L A R A V E GREY AVEHARRISON ST PR A I R I E A V E REBA PL COLFAX ST LEMAR AVEMARCY AVEDAVIS ST MAPLE AVEHARTZELL ST LIBRARY PL SIMPSON ST CLYDE AVEBROWN AVEGREELEYPITNER ALYLAUREL AVEHINMAN AVEDEWEY AVEEWING AVECOWPER AVEKIRK STHOVLAND CTJUDSON AVEGARRETT PLARBORLN FOREST AVEINGLESIDE PK GREY AVEST. MARK'S CTEMERSON ST CAMPUS DRSHERMAN AVEWILDER ST MILBURN PKGARRISON AVETHELIN CT FOREST PLASBURY AVEMICHIGAN AVEWESLEY AVELELAND AVECENTRAL ST CALLAN AVERIDGE TER HULL TER HOWARD ST ISABELLA ST GROSS POINT RDCUSTER AVEEMERSON ST LYONS ST FOWLER AVECLARK S T DARROW AVEPIONEER RDHASTINGS AVEHARTREY AVEBRUMMEL STPRINCETON AVEPROSPECT AVEHAMLIN ST PAYNE ELM AVECASE PLRIDGEWAY AVEMULFORD ST MICHIGAN AVELAWNDALE AVECHURCH S T CRAIN ST DEMPSTER STJACKSON AVEKEDZIE ST CLINTON PL McDANIEL AVEELMWOOD AVESEWARD ST RO SLY N PL E A S T R A I L R O A D A V E FLORENCE AVEBENSON AVESHERMAN PL CULVER FORESTVIEW RDMARTHA LNHAWTHORNE LN WADE CT BROWN AVECROFT LN COLFAX TER BROWNGREYBRI D G E ST CALVIN CIR BROWN AVERICHMOND AVENORMANDY PL WOODLAND RD ELINOR PL KEENEY ST SOUTH BLVD HAMILTON ST GREENWOOD ST UNIVERSITY PLREESE AVEAUTOBARN PL GAFFIELD PLLINCOLNWOOD DRCRAWFORD AVELEONARD PLCENTRAL PARK AVEBENNETT AVEMADISON PL BRADLEY PL GREENLEAF STWALNUT AVEROSALIE ST BURNHAM PL WARREN STLIVINGSTON WASHINGTON ST CLEVELAND ST MONTICELLO PL NATHANIEL PL HARVARD TERWOODBINE AVEMAPLE AVEDOBSON STDEWEY AVEDARROW AVEDEWEY AVEINGLESIDE PL RIDGE AVEASBURY AVEFOWLER AVEHARTREY AVECASE ST SOUTH BLVD ASHLAND AVESHERMAN AVELYONS ST STE W A R T A V EMARCY AVEWELLINGTON CTCLEVELAND ST MONROE ST LINDEN PL LAKE SHORE BLVDKNOX CIRHILLSIDE LN TRINITY CT SHERIDAN SQEDGEMERE CTG R E E N B A Y R D GARNETT PL CENTRAL ST HARRISON RIDGEAVEPAYNE ST WESLEY AVECHURCH ST HARTZELL ST P R A I R I E A V E DODGE AVEOAKTON ST SOUTH BLVD CRAINMcDANIEL AVEPITNER AVELEE ST ASHLAND AVEGROVE ST FOSTER ST ASBURY AVEBARTON AVEGRANT ST BRYANT AVEJUDSON AVESHERMAN AVECOLFAX ST ISABELLA ST DAVIS ST MAIN ST RIDGE AVEASBURY AVET H A Y E R C T THAYER ST ISABELLA ST HAYES DARTMOUTH PL COLFAX PL THAYERTHAYERST C R A W F O R D LINCOLNWOOD DRLIVINGSTON ST CHANCELLOR ST CHANCELLORLIVINGSTON MILBURN ST LAKESIDE CT EUCLIDPARK PL WESLEYCLARK STLYONS ST GREY AVEDEWEY AVEPAYNE ST MAIN STDODGE AVECENTRAL ST McDANIEL AVEEWING AVESHERIDAN RDBRUMMEL STPITNER AVELINCOLN ST HINMAN AVE SEWARD ST WESLEY AVECENTRAL ST KEENEY ST RIDGE AVEOAK AVEJACKSONSHERMAN AVEDOBSON ST LINCOLN ST SEWARD STDARROW AVEGREY AVEPARK PL NOYES ST LAKE ST THAYER ST WASHINGTON ST LAKE STMcDANIEL AVEBROWN AVEAUSTIN STASHLAND AVEWESLEY AVETECH DR NOYES CTHAMPTON PKYOTTO LNBERNARD PLMEADOW-LARK LNRIDGE AVEELGI N R D ELMWOOD AVECOLFAX ST HINMAN AVESIMPSON ST WESLEY AVEOAKTON ST SHERIDAN RD SHERIDAN RD DEMPSTER ST GREY AVELEE ST SIMPSON ST CHICAGO AVECHICAGO AVEBENNETT AVEMADISON ST KEENEY STOAKRIDGE AVESHERIDAN RDGRANT ST ASBURY AVEGROVE S T ELG I N R D FLORENCE AVEFOREST AVEDODGE AVEFOSTER ST MULFORD ST GREENLEAF ST HILLSIDE RD HARTREY AVEHARTREY AVEGREY AVEARNOLD PLPITNER AVELINCOLN ST McCORMICK BLVDFOSTER STGREENWOOD ST CALLANPARK PL JUDSON AVE NOYES ST DARROW AVEASHLAND AVEHARRISON ST HOWARD ST NOYES GLENVIEW RD PRINCETONCLIFFORD ST HIGHLAND AVELAWNDALE AVEDARTMOUTH PL ARTSCIRCLE DRORRINGTON AVEEASTWOOD AVEBROADWAY AVEWASHINGTON ST NORTHWESTERNPL DRYDEN PL ") ")")") ") ")") ") ") ")")")")")")") ")")")") ") ") ")") ") ") ") ")") ") ") ") ")")") ")") ") ")") ") ") ")")")")")")")")")")")")")")")")")")")") ") ") ")") ")") ") ")")")")")")")")NORTH SHORE CHANNELNORTH SHORE CHANNELLAKEMICHIGAN700400 500300600 800200 900 1002600 1700 310012001900 1000 130014002200 2300 11001800280015003600 20002400 2700 34002100 250029001600300032003300 300600 2800 1900 1000 2700 400 2500 1400 800 1700 1600 700220024001400 200500 140020023002000 700 8002600 1200 22001500 16001200100 150013001002900190010005002100 220024001100 1100 2001300 28001000120026001500 2300 1800 2000700 300 900600400240025002000 13001800 300 800 6001100100 500 25002700 1600 17003500260017001800900190090021002300210040038003700")Rooming House Main Road Local Street Railroad Water City Boundary 0 0.5 10.25 Mile 1:31,680 1 inch = 0.5 mile Rooming Houses 1/23/2018 This map is provided "as is" without warranties of any kind. See www.cityofevanston.org/mapdisclaimers.html for more information. RoomingHousesMap.mxd ´ 38 of 122 For City Council meeting of April 30, 2018 Item SP3 Resolution 26-R-18 Authorizing the City Manager to Execute an Intergovernmental Agreement with Evanston Township High School District No. 202 For Action To: Honorable Mayor and Members of the City Council From: Erika Storlie, Assistant City Manager/Acting Community Development Director Michelle Masoncup, Interim Corporation Counsel Sarah Flax, Housing and Grants Administrator Savannah Clement, Housing Policy and Planning Analyst Subject: Resolution 26-R-18, Authorizing the City Manager to Execute an Intergovernmental Agreement with Evanston Township High School District No. 202. Date: April 25, 2018 Recommended Action: Staff recommends consideration of Resolution 26-R-18 authorizing the City Manager to execute an intergovernmental agreement (IGA) with the Board of Education of the Evanston Township High School District No. 202. The IGA recognizes the mutual benefits to the City, ETHS and the community of the educational and housing program commonly known as Geometry In Construction (GIC) and memorializes the expectations and commitments of both parties to maintain the program going forward. Funding Source: NA Livability Benefits: Built Environment: Support housing affordability; provide compact and complete streets and neighborhoods; and Equity & Empowerment: Ensure equitable access to community benefits, and support poverty prevention and alleviation. Discussion: The Geometry in Construction Affordable Housing program is a partnership that provides significant benefit to our community cost effectively. GIC is one of the most popular classes at ETHS, with 99 students registered for the 2017-2018 school year. The program is currently in its fifth year and the homes developed through the program address an important need for ownership housing affordable to moderate and middle income families, defined as households with incomes ≤120% of the area median. ETHS and City employees are prioritized to purchase from the GIC program. Community Partners for Affordable Housing (CPAH) manages the sale of the ETHS homes to Memorandum 39 of 122 eligible buyers. Long-term affordability is maintained using 99-year renewable ground leases or Land Use Restriction Agreements (LURA) and resale restrictions to households with incomes ≤120% of the area median. Property addresses of the first five homes developed through GIC are: ● 1941 Jackson Avenue, a one-story home from GIC’s 2013-14 school year ● 1820 Dodge Avenue, a two-story home from GIC’s 2014-2015 school year ● 2142 Dewey Avenue, a two-story home from GIC’s 2015-2016 school year ● 1509 Emerson Street, a two-story home from GIC’s 2016-2017 school year ● 2005 Grey Avenue, a two-story home currently under construction in GIC’s 2017- 2018 school year The first three GIC homes are completed and have been sold to income eligible households. The 1509 Emerson Street home was moved to its permanent site on June 26, 2017. Plumbing, electrical, HVAC, drywall, etc. work by licensed contractors is underway; completion is anticipated by summer 2018. An ETHS employee has already expressed interest in purchasing the home. The 2005 Grey Avenue home will be moved from ETHS to its permanent site in June 2018. The GIC program effectively leverages other sources of funding for affordable housing, as preconstruction and construction costs, including architectural fees, materials and on-site labor (electrical, plumbing, HVAC, drywall, etc.) are borne by ETHS. The City waives the building and right of way permit fees. The City has provided four of the lots in the first five years of the program: three were acquired as foreclosed housing with NSP2 but the homes were demolished because their severely deteriorated condition made rehab infeasible. The 2005 Grey Avenue site was purchased by the City with funding from the Affordable Housing Fund. Staff is currently pursuing the acquisition of four properties as the sites for future GIC homes through judicial deeds or the Cook County No Cash Bid Program. Three of the properties are vacant lots and the fourth has a severely deteriorated single family home that is infeasible to rehab. ------------------------------------------------------------------------------------- Attachments: • Resolution 26-R-18 authorizing the City Manager to execute an intergovernmental agreement with Evanston Township High School District No. 202 • Draft Intergovernmental Agreement Between the City of Evanston and Evanston Township High School District No. 202 regarding the Affordable Housing Program 40 of 122 4/25/2018 26-R-18 A RESOLUTION Authorizing the City Manager to Execute an Intergovernmental Agreement with the Board of Education of Evanston Township High School District No. 202 NOW BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: SECTION 1: That the City Manager is hereby authorized and directed to sign, and the City Clerk is hereby directed to attest on behalf of the City, the Intergovernmental Agreement with the Evanston Township High School District No. 202 (the “Agreement”), attached hereto as Exhibit 1 and incorporated herein by reference. SECTION 2: That the City Manager is hereby authorized and directed to negotiate any additional conditions of the Agreement that deems to be in the best interests of the City. SECTION 3: This resolution shall be in full force and effect from and after its passage and approval, in the manner provided by law. _______________________________ Stephen H. Hagerty, Mayor Attest: _______________________________ Devon Reid, City Clerk Adopted: __________________, 2018 Approved as to form: ______________________________ Michelle L. Masoncup, Interim Corporation Counsel 41 of 122 - 2 - EXHIBIT 1 INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF EVANSTON AND THE BOARD OF EDUCATION OF THE EVANSTON TOWNSHIP HIGH SCHOOL DISTRICT NO. 202 42 of 122 Execution Version 2502968.2 INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF EVANSTON AND EVANSTON TOWNSHIP HIGH SCHOOL DISTRICT NO. 202 REGARDING THE AFFORDABLE HOUSING PROGRAM This INTERGOVERNMENTAL AGREEMENT (“Agreement”) is made by and between the City of Evanston, an Illinois municipal corporation and home rule unit as described in the Illinois Constitution (the “City”), and the Board of Education of Evanston Township High School District No. 202, Cook County, Illinois (“ETHS”). Section 1. Background. A. The City identifies and acquires real property located in the City by purchase or other means to support the City’s affordable housing goals. Often these properties are vacant or the existing structures require demolition. B. ETHS offers its students a class known as ‘Geometry in Construction’ which seeks to explore alternative channels and methods for educating students outside of a traditional classroom setting on various subject matters such as design, mathematics, technical, and construction related subjects. C. The Geometry in Construction class constructs a residence by the end of each school year, which is moved to a residential lot and inhabited. D. Since 2013, the City and ETHS have collaborated with an affordable housing developer, Community Partners for Affordable Housing (“CPAH”) to locate the Geometry in Construction homes on lots owned by the City or ETHS and in turn make the property available for purchase by a qualified applicant for affordable housing. E. The City and ETHS have determined that the cooperation of the parties to date regarding the affordable housing program benefits both public bodies and the community. It is in their collective best interest to enter into this Agreement to memorialize the expectations and commitments of the parties and to maintain the viability of this educational and affordable housing program. Section 2. General Commitments. A. Term. This Agreement shall be in effect from the effective date, as set forth in Section 5.I to until June 30, 2023, and shall automatically renew for subsequent five-year terms; provided that the Agreement will not renew if a party provides written notice by December 31 of the year prior to renewal of the terminating party’s intention to not renew the Agreement. Further, either party may terminate this Agreement at any time without cause by providing the non-terminating party with six months written notice of the terminating party’s decision to terminate the Agreement. If such notice, however, is delivered after ETHS has commenced construction on a Project Home, as defined in Section 3.A, the Agreement shall not terminate until the Project Home is installed on the Subject Property, as defined in Section 3.A. 43 of 122 2 2502968.2 B. Administration of Agreement. The City Manager, or the City Manager’s designee, shall administer this Agreement on behalf of the City. The ETHS Superintendent, or Superintendent’s designee, shall administer this Agreement on behalf of ETHS. C. Meetings. The City Manager and the ETHS Superintendent, or their designees, shall meet at least two times per year to discuss and review the affordable housing program, including the City’s acquisition efforts and the status of construction. D. Notification of Available Property. By March 1 of each year of this Agreement, or by such later date if agreed to in writing by the parties, the City will use best efforts to identify a residential property for the next Project Home site to enable the School District to construct a residence for such property in the immediately following school year. If the Parties decide that a property is not available by March 1, ETHS shall have no obligation to build a residence during the immediately following school year. ETHS will confirm, in its sole discretion, with the City prior to acquisition of the property whether the property is an appropriate site for the residence to be constructed in the upcoming school year. The City shall grant ETHS access to the property to conduct due diligence activities, including environmental assessments, that ETHS deems necessary. ETHS must notify the City and pay for any due diligence, including environmental assessment, that it seeks to be performed prior to the City’s acquisition of the site. Section 3. ETHS Role and Responsibilities. A. ETHS to Construct Project Home. After the City acquires a property (the “Subject Property”), students and staff members shall construct a residence that is approximately 1,000 – 1,500 square feet in size (the “Project Home”). All aspects of the construction will be coordinated and supervised by ETHS, including the building foundation, and installation of all improvements and fixtures in compliance with all applicable codes and regulations. ETHS shall coordinate and perform all aspects of the construction in an efficient, competent, and safe manner in compliance with all federal, state, and local laws and regulations. The Project Home’s primary structure will be constructed on ETHS property (1600 Dodge Avenue, Evanston, Illinois). B. Relocation of Project Home and Duration of Construction. After the Project Home has been constructed, ETHS will arrange to move the Project Home to an appropriate foundation located on the Subject Property. The foundation, mechanical systems, including electrical, plumbing and HVAC, as well as interior and exterior finishing will be completed by subcontractors hired by ETHS. Subject to Force Majeure, ETHS shall use due diligence and commercially reasonable efforts to ensure completion and receipt of a Temporary Certificate of Occupancy within 18 months after commencing construction. C. Permits. ETHS shall be responsible for obtaining all building and occupancy permits for the Project Home to enable it to be occupied on the Subject Property. D. ETHS Costs. All costs for the construction of the Project Home and its placement on the Subject Property will be borne by ETHS, including but not limited to construction materials, labor costs, and removal expenses from ETHS Property to the Subject Property and 44 of 122 3 2502968.2 including landscaping and site improvements on the Subject Property; provided that the City shall waive all building permit fees, right of way fees, but will not waive water/sewer connection fees or other City fees related to the construction and transfer of the Project Home to a third- party. Section 4. City Role and Responsibilities. A. Acquisition of Property. Prior to March 1 of each year of this Agreement, the City, without financial contribution from ETHS, will obtain vacant property of sufficient size and zoned appropriately to allow for the location of a residence. The structure constructed may be a single-family home or a duplex. B. City Inspection. City staff members will inspect the Project Home during construction and the finished Project Home prior to its removal from the ETHS property to ensure compliance with all applicable codes and regulations. C. Affordability Control. The City shall work with an affordable housing organization to ensure that the Subject Property is affordable in perpetuity by placing the property in a land trust or through deed restrictions. Such affordable housing organization shall ensure that the Subject Property is sold to a buyer whose household income does not exceed 120% of the area median income at the time of purchase and who will own the property as their primary residence. Area Median Income means the maximum income limit set by the Chicago- Joliet-Naperville, Illinois HUD Metro FMR Area, which is based on household size as determined annually by the United States Department of Housing and Urban Development. First preference will be given to buyers that are employees of ETHS or the City of Evanston; second preference will be given to eligible households on the centralized wait list for affordable housing in Evanston managed by CPAH. When the property is re-sold, priority will be given to eligible households on the centralized waitlist whose incomes shall not exceed 120% of the area median income at the time of purchase and the purchase price shall be affordable to a household at that income level. Section 5. Miscellaneous. A. Notices. Any notice, request, demand, or other communication provided for by this Agreement must be in writing and will be deemed to have been duly received upon (a) actual receipt if personally delivered and the sender received written confirmation of personal delivery, (b) receipt as indicated by the written or electronic verification of delivery when delivered by overnight courier, or (c) three calendar days after the sender deposits the notice with the U.S. Post Office when sent by certified or registered mail, return receipt requested. Notice must be sent to the addresses set forth below, or to such other address as either party may specify in writing. If to City: Wally Bobkiewicz City Manager Sarah Flax Housing & Grants Michelle Masoncup I City Attorney 45 of 122 4 2502968.2 City of Evanston 2100 Ridge Avenue Evanston, IL 60201 City of Evanston 2100 Ridge Avenue Evanston, IL 60201 City of Evanston 2100 Ridge Avenue Evanston, IL 60201 If to ETHS: Dr. Eric Witherspoon Superintendent 1600 Dodge Avenue Evanston, IL 60201 Mary Rodino Chief Financial Officer 1600 Dodge Avenue Evanston, IL 60201 Brian Crowley Franczek Radelet 300 South Wacker, Ste. 3400 Chicago, IL 60606 B. Binding Agreement. This Agreement shall be binding on and shall inure to the benefit of the Parties, their respective successors, and assigns. C. Amendments and Modifications. No amendment or modification to this Agreement shall be effective until it is reduced to writing and approved and executed by the Parties to this Agreement. D. Governing Laws. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Illinois without regard to conflict of law principles. Jurisdiction and venue for all disputes hereunder shall be the Circuit Court located in Cook County, Illinois, or the federal district court for the Northern District of Illinois. E. Authority to Execute. The Parties warrant and represent that the persons executing this Agreement on their behalf have been properly authorized to do so. F. No Third-Party Beneficiaries. No claim as a third-party beneficiary under this Agreement by any person, firm, or corporation shall be made, or be valid, against the Parties. G. Entire Agreement. It is understood and agreed that all understandings and agreements between the Parties are merged in this Agreement and no Party is relying upon any statement or representation not embodied in this Agreement. Each Party expressly acknowledges that, except as expressly provided in this Agreement, the other Parties and the agents and representatives of the other Parties have not made, and the other Parties are not liable for or bound in any manner by, any express or implied warranties, guaranties, promises, statements, inducements, representations, or information pertaining to the transaction contemplated hereby. H. Assignment. This Agreement cannot be assigned by any Party without the written consent of the other Parties and should any assignment be made by one Party without the written consent of the other Parties, such assignment will be null and void. L. Counterpart Signatures. For the convenience of the Parties, this Agreement may be executed in similar counterparts, each counterpart shall be deemed an original instrument, and such counterparts taken together shall constitute one and the same. 46 of 122 5 2502968.2 I. Effective Date. The Agreement shall be deemed dated and become effective on the date the last of the Parties signs as set forth below the signature of their duly authorized representatives. (Signature page follows) 47 of 122 6 2502968.2 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as set forth below. CITY OF EVANSTON By: ________________________________ City Manager Date: BOARD OF EDUCATION OF EVANSTON TOWNSHIP HIGH SCHOOL DISTRICT NO. 202 By: ________________________________ Superintendent Date: 48 of 122 For City Council meeting of April 30, 2018 Item SP4 Developing an Ordinance for Accessory Dwelling Units For Action To: Honorable Mayor and Members of the City Council From: Erika Storlie, Assistant City Manager/Acting Community Development Director Scott Mangum, Planning and Zoning Administrator Sarah Flax, Housing and Grants Administrator Savannah Clement, Housing Policy and Planning Analyst Subject: Expanding Accessory Dwelling Units to Address Housing Needs in Evanston Date: April 23, 2018 Recommended Action: Staff requests direction from City council regarding follow-up steps relating to Accessory Dwelling Units (ADUs) as a strategy to expand housing choices and affordable housing in Evanston. At its meeting on January 29, City Council directed staff to revise current zoning to allow rental of existing coach houses as a first step. An ordinance to permit this was introduced at the April 23, 2018 meeting. Staff proposes undertaking a comprehensive review of how to expand ADUs to further address Evanston’s housing needs. Involving the Age Friendly Taskforce in this evaluation, as well as in community outreach and education, would provide valuable perspective regarding housing needs of seniors, including smaller accessible housing units, the ability to age in place, and avoiding displacement due to rising housing costs. Funding Source: NA Livability Benefits: Built Environment: Support housing affordability; provide compact and complete streets and neighborhoods; and Equity & Empowerment: Ensure equitable access to community benefits, and support poverty prevention and alleviation. Discussion: ADUs, independent housing units created within single family homes or on their lots are increasingly being encouraged in communities throughout the country to address changing housing needs: Memorandum 49 of 122 Page 2 of 2 ● Average family/household size is shrinking while the number of total households is growing. Evanston’s total population of 74,895 is down by about 6% from its peak of 79,808 in 1970. Much of Evanston’s housing stock was built to accommodate larger family sizes common at that time and earlier. ● Increasing number of older adults living in their family homes need additional income to pay mortgage, taxes and maintenance costs. They may also want a family member or caregiver living nearby while maintaining their privacy. ● Integrating affordable housing in high cost, primarily single-family neighborhoods, and increasing density without requiring construction of new infrastructure or changing the character of neighborhoods. Accessory Dwelling Units, Model State Act and Local Ordinance was developed by the American Planning Association (APA) at the request of the Public Policy Institute, part of the Research Group at AARP to assist citizens, planners and government officials in evaluating potential changes to state laws and local ordinances to encourage wider availability of ADUs because of their potential to benefit older adults. Many of the provisions included in this document have been implemented in different communities and been proven successful. Although developed at the request of AARP, the model legislation is designed to assist in the development of ordinances that expand availability of ADUs to serve the needs of households of all ages by increasing housing choices and affordable housing for their residents. Although designed to work with State legislation similar to California, which passed a law in 1982 that pushed local governments to adopt ADU regulations, the Model Local Ordinance can be used independently and provides useful information on different types of ADUs (attached and detached), impact of ADUs in different zoning districts, considerations for permitting, etc. In addition, AARP will be releasing a new guidebook on ADUs and intergenerational housing in the near future that may provide further guidance. ------------------------------------------------------------------------------------- Attachments: Accessory Dwelling Units, Model State Act and Local Ordinance 50 of 122 51 of 122 52 of 122 53 of 122 54 of 122 55 of 122 56 of 122 57 of 122 58 of 122 59 of 122 60 of 122 61 of 122 62 of 122 63 of 122 64 of 122 65 of 122 66 of 122 67 of 122 68 of 122 69 of 122 70 of 122 71 of 122 72 of 122 73 of 122 74 of 122 75 of 122 76 of 122 77 of 122 78 of 122 79 of 122 80 of 122 81 of 122 82 of 122 83 of 122 84 of 122 85 of 122 86 of 122 87 of 122 88 of 122 89 of 122 90 of 122 91 of 122 92 of 122 93 of 122 94 of 122 95 of 122 96 of 122 97 of 122 98 of 122 99 of 122 100 of 122 101 of 122 102 of 122 103 of 122 104 of 122 105 of 122 106 of 122 107 of 122 108 of 122 109 of 122 110 of 122 For City Council meeting of April 30, 2018 Item SP5 Steps Toward Home Ownership – Special Use for Small Lot Housing For Action To: Honorable Mayor and Members of the City Council From: Erika Storlie, Assistant City Manager/Acting Community Development Director Scott Mangum, Planning and Zoning Administrator Sarah Flax, Housing and Grants Administrator Savannah Clement, Housing Policy and Planning Analyst Subject: Steps Toward Homeownership – Special Use for Small Lot Housing Date: April 25, 2018 Recommended Action: Staff recommends consideration of developing a Special Use process that would enable developers to propose the construction of modest-size homes on smaller lots than currently allowed by our zoning. This process would enable the development of “starter” homes affordable to first-time homebuyers and less affluent residents by reducing the land cost associated with the development of a single family home. It would also allow non-conforming parcels throughout our community that are currently undevelopable based on zoning to be put into productive use. Funding Source: NA Livability Benefits: Built Environment: Support housing affordability; provide compact and complete streets and neighborhoods; and Equity & Empowerment: Ensure equitable access to community benefits, and support poverty prevention and alleviation. Discussion: Currently Evanston single family zoning districts have relatively large minimum lot size (7,200 SF in R1 and 5,000 SF in R2) and minimum lot width (35 feet in both R1 and R2) requirements for one primary dwelling unit. This limits density and drives up housing costs. New ownership opportunities for moderate and middle income households (80- 120% of the area median income) could be developed by encouraging moderately-sized single family homes on smaller or narrower lots. A developer would propose a plan for a specific site that would be evaluated individually as a Special Use by the Zoning Board Memorandum 111 of 122 of Appeals and City Council. Some parameters, such as size limits to the homes, could be used to help maintain affordability. Affordability restrictions at initial purchase and at resale through a land trust or deed restrictions should be considered to maintain long- term or permanent affordability. A recommendation could be developed for consideration by the Plan Commission. The vacant double lot at 2122 Darrow Avenue that was acquired through the City’s Neighborhood Stabilization Program 2 could be a pilot site for this program and an RFP could be issued for its redevelopment to generate interest among developers. This would support homeownership opportunities for households with incomes ≤ 120% of the area median who are finding it increasingly difficult to purchase a home in Evanston. The property is zoned R4 and a four-flat could be constructed by right. However, current zoning does not allow for multiple detached homes on the site. This program is another tool for expanding affordable housing options in Evanston and staff seeks direction to implement a pilot or examine other options. 112 of 122 For City Council meeting of April 30, 2018 Item SP6 Update on Priority Based Budgeting Process For Action: Accept and Place on File To: Honorable Mayor and Members of the City Council From: Hitesh Desai, Chief Financial Officer/Treasurer Ashley King, Finance and Budget Manager Kate Lewis-Lakin, Senior Management Analyst Subject: Update on Priority-Based Budgeting Process Date: April 30, 2018 Recommended Action: Staff recommends Council accept and place on file the update on the priority-based budgeting process and direct staff to move forward with the public outreach portion of the process. Livability Benefits: Innovation & Process: Support local government best practices and processes. Summary: Staff will give a presentation to City Council on work done so far in the priority-based budgeting process and plans for the public outreach phase of the process. Background: At the March 19 City Council meeting, staff presented a plan for a priority-based budgeting process. The first steps involved a process by which City staff would internally list and then numerically score all programs and services provided by the City. Two sets of measures were used to score programs at this stage in the process. The first set was Basic Program Attributes. These were first scored by the departments and then reviewed for accuracy by the Finance and Law Department staff. These measures captured metrics including whether a program was mandated to be provided by the state or federal government and its level of internal cost recovery. Details of these measures are included in Attachment A - PBB Scoring Guidelines. The second set of measures was City Council Goals. For this set, staff rated programs based on their relevance to the 2018 City Council goals of: Infrastructure and Facilities, Community Development and Job Creation, Affordable Housing, Police and Community Relations, Stabilize Finances, and Equity. A program with a high score under one of these goals was considered to be crucial to achieving the goal; low scores reflect low relevance to the goal. Further detail on how these goals were evaluated is included in Attachment A. These ratings were discussed and decided upon by an interdepartment Memorandum 113 of 122 team, which included staff members from every department and looked at the full list of programs. Results of Staff Process The result of this staff process is a ranked list of about 150 programs from all City Departments. These are ranked based on the total of all 10 measures used. For example, a highly ranked program is likely to be required to be provided, recover its costs, and be relevant to achieving multiple City Council goals. This full list of 150 programs with scores is included as Attachment B – Full Program List. Staff intends to use this full list to come to a list of about 50 programs that can be the focus of the public outreach process and considered for changes during the upcoming 2019 budget process. In order to accomplish this, staff focused on the bottom half of programs in the ranked list, setting aside the top half for this portion of the conversation. From these 78 programs, staff recommends separating 24 programs from discussion that are required to be provided in some way by the City, but could be considered for higher fees or consolidation with other services. These programs are: With these removed, 54 programs remain, all of which are mandated only by City Code or not required at all. Staff recommends that these 54 programs become a primary focus of the public outreach process to take place in May. Dept. Program CD Stormwater Plan Review PWA Street and Alley Maintenance/Repairs, Sidewalk and Curb Maintenance AS Facilities Management - Emergency Management Services AS Facilities Management - Preventative Maintenance CMO Revenue and Collections - Home rule taxes CMO Revenue and Collections - Online payments CMO Revenue and Collections - Over the Counter payments AS Facilities Management - In-House Construction Projects PWA Street Sweeping PWA Leaf Pickup and Disposal Fire Specialized Rescue Operations AS Fleet Services - Vehicle Replacement Planning and Purchasing PWA Pavement Marking PWA Streetlight, Traffic Signal and Sign Maintenance and Repairs AS Human Resources - Benefits Administration PWA City Properties Landscaping and Snow/Ice Control PWA Snow and Ice Control AS Fleet Maintenance AS Payroll CD Right of Way Permits Health West Nile tracking - grant funded Health Beach/Water Quality monitoring CMO Pension Administration CMO State mandated boards, commission, and committee administration 114 of 122 Dept. Program PRCS City-Sponsored Special Events CD Contractor Licensing PRCS Athletic programming Health Community Health PRCS Summer Food Program/Child Nutrition Program/Congregate Meal Program CD Divvy Bikes PRCS Community Services/Youth Engagement PRCS Gibbs-Morrison Cultural Center PRCS Noyes Cultural Arts Center PRCS Indoor/Outdoor Recreation Programs PRCS Summer Camps PWA Sports Field Maintenance PRCS Special Recreation Programs CD Long-range planning (comprehensive plan, area plans) PRCS Cultural Arts Programs PWA Special Assessment Alley Improvements CD Storefront Modernization Program PRCS Fleetwood-Jourdain Theater PWA Tree Preservation Permit Issuance and Enforcement CD Business Licensing PWA 50/50 Sidewalk Program PRCS Certificate of Rehab Programs CMO Tax Assessment Advocacy PWA Special Refuse Pickups PWA Permits for Block Parties, Moving Vans and Dumpsters CMO Administrative Adjudication CD Sign Permits and Inspection Services Fire Public Education/Community Engagement PRCS Recreation Center Bus Program AS School Crossing Guards Health Vital Records - Birth and Death Certificates PWA Lakefront and Beach Maintenance and Cleaning CMO Community Arts Administration CMO Revenue and Collections - Passport PWA Annual Dredging for Boat Launch and Harbor PWA Twice Annual Bulk Pickups PWA Business District and Park Refuse Pickup and Disposal Health Social Services (Victim Advocacy) CD Historic Preservation Review PWA Dutch Elm Disease Control CD Mental Health Board PWA Public Art Installation Support AS Human Resources - Training PWA Special Event Support PRCS Subsidized Taxi Cab Coupon program CMO Boards, commisison, and committee administration by resolution/ordinance PWA Engineering for Parks and Facilities Projects CMO Revenue and Collections - Real Estate Transfer Stamps CMO Revenue and Collections - Wheel Tax PWA Bike Infrastructure Maintenance PWA Tree Trimming, Removal and Planting, and Evaluations Police Police Building maintenance PWA Playground Equipment Maintenance and Repairs Health Vacation Rental Permit and Administration (Airbnb) 115 of 122 Public Outreach Process After the April 30 City Council meeting, staff plans to go to the community to ask for public input on the 54 programs listed above. Residents will be asked to choose from this list the 10 most important programs they believe the City provides, and then the 10 least important programs. There will also be an opportunity to name other high and low priorities and to offer general suggestions on other ways to balance the City’s budget. A draft of the survey will be shown in staff’s presentation to Council. The survey will be available online from May 10-31. Printed copies will be distributed to all community centers and the public library. Additionally, staff will hold an Open House on Priority-Based Budgeting at the Civic Center on May 24th from 3 to 8pm to allow residents to give their input in person. Details of this event will be shared through the City’s website, newsletters, and social media throughout May. Attachments: Attachment A – Priority-Based Budgeting Scoring Guidelines Attachment B – Full Program List with Staff Ranking 116 of 122 Attachment A 2019 Priority-Based Budgeting Scoring Guidelines Directions: Please use the guidelines below in order to complete the scoring matrix for your department. Return completed spreadsheet to Ashley and Kate by Friday, March 30. The Budget Team will follow up with you on any questions about specific programs after this date. Part I: Basic Program Attributes Mandated to Provide Program 4 Service is mandated Federally 3 Service is mandated by State 2 Service is mandated by City Charter 1 Service is mandated by City Ordinance or Resolution 0 Service is not mandated Cost Recovery of Program 4 Service recovers 75-100% of costs 3 Service recovers 50-74% of costs 2 Service recovers 25-49% of costs 1 Service recovers 1-25% of costs 0 Service recovers less than 1% of costs Change in Demand for Service 4 Demand is significantly increasing 3 Demand is slightly increasing 2 Demand is remaining constant 1 Demand is slightly decreasing 0 Demand is significantly decreasing Reliance on City to provide service 4 Only City can provide service 3 Only government entities can provide service 2 Only public agencies can provide service 1 Service could be provided by a public agency or not-for-profit 0 Service can be provided by either a public or private entity Portion of Community Served by Program 4 Program serves the entire community 3 Program serves a substantial part of the community 2 Program serves a significant part of the community 1 Program serves some portion of the community 0 Program serves only a small portion of the community 117 of 122 Attachment A Part II: 2018 City Council Goals Rating City Council goals: 0-4 scale 4 Program is essential to achieving the goal 3 Program has a strong influence on the goal 2 Program influences the goal 1 Program has some influence on achieving the goal, though minimal 0 Program has no influence on achieving the goal Sub-points for each goal serve as guidelines for evaluating the program based on the ratings scale above. Invest in City Infrastructure and Facilities  Develops new infrastructure and facilities  Improves infrastructure and facility effectiveness  Provides for the maintenance of infrastructure and facilities  Seeks opportunities to leverage new funding services for improvements  Connects with the community to address issues and concerns regarding infrastructure and facilities Enhance community development and job creation citywide  Creates a safe, business-friendly and sensibly regulated environment that stimulates business development and increases the tax base  Attracts, retains or develops a well-balanced, diverse mix of commercial, industrial and agriculture business that are sustainable and benefit the economy  Effectively plans for a reliable, well-maintained and accessible transportation network that meets the current and future growth needs of the community  Provides a secure, attractive and desirable place to live and work, offering access to core services  Creates partnerships to expand cultural and artistic opportunities and events throughout the community Expand Affordable Housing Options  Facilitates housing options to accommodate a diverse community  Encourages development of small scale housing options like accessory dwelling units, tiny homes, and micro apartments  Encourages inclusionary housing practices in private businesses Further Police/Community Relations Initiatives  Encourages an inclusive community that is accepting, connected and promotes shared responsibility  Promotes local community engagement with the Police Department  Actively seeks honest, open and continued dialogue on issues of race and community relations within departments 118 of 122 Attachment A Stabilize long-term city finances  Generates or seeks new revenue to support City operations  Supports best financial practices of auditing, purchasing, budgeting, and internal controls  Supports long-term financial planning for debt and capital investment Part III: Equity Does the program benefit historically underrepresented or disadvantaged populations? 4 This program is in place specifically to meet the needs of historically underrepresented* Evanston residents 3 This program or service does not specifically target historically underrepresented residents, however, assistance (e.g. scholarship programs) is available to ensure accessibility for all residents. 2 This program does not target underrepresented populations nor does it have provisions to make the program accessible to those populations, however, it is likely that underrepresented populations would be disproportionately impacted if this program is cut. 1 This program provides indirect benefits to underrepresented populations. 0 This program does not provide direct or indirect benefits to underrepresented populations *historically underrepresented populations - race/ethnicity, sex, physical or mental disability, sexual orientation, gender identity, age, immigrant status, veteran status, language and/or socio-economic status. 119 of 122 Staff Rank Dept. Program Mandated to Provide Service Cost Recovery Change in Demand Reliance on City Portion of Community Served Infrastructure and Facilities Community Development/ Job Creation Affordable Housing Police/ Community Relations Stabilize Finances Equity Total 1 CD Community Development Block Grant Administration 4 4 2 3 2 4 4 3 0 3 4 33 2 CMO Citizen Engagement and outreach 0 4 2 4 4 4 4 2 4 0 3 31 3 CD HOME Grant Administration 4 4 2 3 2 2 4 4 0 1 4 30 4 Law Legislative Drafting 3 0 0 4 4 4 4 4 4 0 3 30 5 Health Property Maintenance 3 2 1 4 4 3 4 2 2 0 4 29 6 Health General Assistance - former township 3 3 0 4 4 0 4 4 3 0 4 29 7 Law Contracts /Transactions 1 4 0 4 4 4 4 1 0 4 3 29 8 PWA Water Treatment Plant and Pumping Operations 4 4 1 4 4 4 4 0 0 3 0 28 9 PWA Water Distribution System Maintenance 4 4 0 4 4 4 4 0 0 3 0 27 10 CD Housing Rehabilitation - Federal Funded 4 4 0 1 2 4 4 4 0 0 4 27 11 CD Neighborhood Stabilization Program Grant Administration 4 4 0 1 2 4 4 4 0 0 4 27 12 PWA Utility Billing 1 4 0 4 4 4 4 0 0 4 2 27 13 CD Building Plan Review and Inspection Services 3 4 0 0 4 4 4 2 0 4 2 27 14 Police Communications and Emergency Telephone System (911)3 1 2 4 4 2 4 0 4 1 1 26 15 CMO Office of Equity and Empowerment 1 0 2 4 4 0 4 3 4 0 4 26 16 PWA Street and Alley Maintenance/Repairs, Sidewalk and Curb Maintenance - Federal Funded (MFT)4 4 1 4 4 4 4 0 0 1 0 26 17 PWA Sewer System Maintenance 4 4 0 4 4 4 4 0 0 2 0 26 18 CMO Purchasing 3 1 2 4 4 4 4 0 0 4 0 26 19 CD Emergency Solutions Grant 4 4 0 2 2 2 4 2 0 1 4 25 20 CMO Budget Preparation 3 2 1 4 4 4 2 0 0 4 1 25 21 Police Juvenile Bureau 3 0 2 4 4 0 4 0 4 0 4 25 22 Police Office of Professional Standards 3 0 2 4 4 0 4 0 4 0 4 25 23 Police Records Bureau 3 0 2 4 4 1 4 0 4 1 2 25 24 Health Food Inspections and Enrironmental Health Asssessments 3 2 1 4 4 4 4 0 0 0 2 24 25 CMO Finance Administration/City Treasurer 3 2 1 4 4 4 2 0 0 4 0 24 26 PRCS Operations of Beaches and Boat Facilities 1 4 1 1 4 3 4 0 1 2 3 24 27 Law Litigation 3 3 0 0 4 4 0 1 4 4 1 24 28 CMO Accounts Payable 3 0 1 4 4 4 4 0 0 4 0 24 29 Police Traffic Control 3 1 1 4 4 3 4 0 4 0 0 24 30 Police Problem Solving Team 1 0 2 4 4 0 4 0 4 0 4 23 31 CMO Special Assessment Billing 3 0 0 4 4 4 4 0 0 2 2 23 32 PRCS Chandler-Newberger Community Center 0 4 1 1 4 4 4 0 0 2 3 23 33 PWA Engineering for Streets and Right-of-Way Projects 3 1 1 4 4 4 4 0 0 2 0 23 34 PWA Engineering for Transportation and Traffic Projects 3 1 1 4 4 4 4 0 0 2 0 23 35 PWA Engineering for Water and Sewer Projects 4 0 1 4 4 4 4 0 0 2 0 23 36 CMO Accounting/Financial Reporting 3 1 1 4 4 2 2 1 0 4 1 23 37 Police Criminal Investigations 3 0 2 4 4 0 4 0 4 0 2 23 38 Police Patrol Operations 3 0 2 4 4 0 4 0 4 0 2 23 39 Fire Fire Suppression 3 1 0 2 4 4 4 0 2 0 3 23 40 PRCS Ombudsman Program 1 2 2 1 4 0 4 1 3 0 4 22 41 Police Neighborhood Enforcement Team 1 1 2 4 4 0 4 0 4 0 2 22 42 Police 311 Center 0 0 0 4 4 3 4 0 4 0 3 22 43 PRCS Levy Center/Senior Services 0 2 2 1 4 4 4 0 0 1 4 22 44 Fire Emergency Preparedness - State Funded 3 2 2 0 4 3 3 0 2 0 3 22 45 CMO Revenue and Collections - Department as a whole 1 4 1 4 4 1 0 0 0 4 3 22 46 CD Affordable Housing and Homeless Services (AH Fund)1 4 2 1 2 1 2 4 0 1 4 22 47 PRCS Ecology Center 0 4 1 1 4 4 4 0 0 1 3 22 48 CD Business Attraction and Retention 0 4 1 1 3 4 4 0 0 4 1 22 49 CD Graffiti Removal - Federal Funded 4 4 0 1 2 4 4 0 1 0 2 22 50 CD Land use/zoning process 3 1 0 0 4 4 4 3 0 1 2 22 51 Fire Fire code enforcement 3 1 2 0 4 4 3 0 2 0 2 21 52 PRCS After-School Programming 0 2 2 1 4 0 4 0 3 1 4 21 53 PRCS Fleetwood-Jourdain Community Center 0 2 2 1 4 4 4 0 0 1 3 21 54 PRCS Athletic Fields Rentals 1 1 2 1 4 3 4 0 1 1 3 21 55 Police School Liason Officer 1 0 0 4 4 0 4 0 4 0 4 21 56 PRCS Robert Crown Community Center & Ice Rink 0 3 1 1 4 4 4 0 0 1 3 21 57 Law Liquor Licensing 3 4 0 4 4 0 4 0 0 1 1 21 58 PWA JULIE locates 4 0 1 4 4 4 4 0 0 0 0 21 59 Fire Emergency Medical Services 1 4 2 0 4 0 4 0 2 1 3 21 60 AS Facilities Management - Facilities Planning & Consultation/Assistance on Engineering CIP 4 0 1 4 4 4 3 0 0 0 1 21 61 PWA Engineering Plan Review for Private Development 3 0 1 4 4 4 4 0 0 1 0 21 Basic Program Attributes (From Departments, Budget Team Review)City Council Goals (Interdepartment Team)Attachment B: Full Program List 120 of 122 Staff Rank Dept. Program Mandated to Provide Service Cost Recovery Change in Demand Reliance on City Portion of Community Served Infrastructure and Facilities Community Development/ Job Creation Affordable Housing Police/ Community Relations Stabilize Finances Equity Total Basic Program Attributes (From Departments, Budget Team Review)City Council Goals (Interdepartment Team) 62 AS Information Technology 1 0 2 1 1 4 3 0 4 4 1 21 63 Police Service Desk 3 0 0 4 4 0 4 0 4 0 2 21 64 AS Human Resources - Personnel Management 4 0 1 0 1 1 3 0 2 4 4 20 65 AS Human Resources - Worker's Compensation and Safety 4 2 2 0 1 2 3 0 2 4 0 20 66 CMO MWEBE/LEP Program 1 1 2 4 4 0 4 0 0 0 4 20 67 Police Animal Control Warden 1 1 2 4 4 0 3 0 4 0 1 20 68 PRCS Workforce Development/Career Pathways 0 1 2 1 4 0 4 0 4 0 4 20 69 CMO Sustainability Programs 1 1 1 1 4 4 4 0 0 1 3 20 70 PRCS Mayor’s Summer Youth Employment Program 0 1 1 1 4 1 4 0 4 0 4 20 71 Police Community Strategies Bureau 1 0 1 4 4 0 4 0 4 0 2 20 72 Police Police Property Bureau 1 1 0 4 4 0 4 0 4 0 2 20 73 PWA Residential, Condo and Apartment Recycling Collection and Disposal 1 4 1 4 4 2 3 0 0 1 0 20 74 AS Parking Enforcement 3 4 2 0 4 2 1 0 0 4 0 20 75 PRCS City-Sponsored Special Events 0 4 2 1 4 0 4 0 2 0 3 20 76 CD Contractor Licensing 3 4 0 0 4 3 4 0 0 2 0 20 77 CD Stormwater Plan Review 4 3 0 0 4 4 4 0 0 0 1 20 78 PWA Street and Alley Maintenance/Repairs, Sidewalk and Curb Maintenance 1 1 1 4 4 4 4 0 0 1 0 20 79 AS Facilities Management - Emergency Management Services 4 0 2 4 4 4 1 0 0 0 1 20 80 PWA Engineering for Parks and Facilities Projects 0 0 2 4 3 4 4 0 0 2 1 20 81 AS Facilities Management - Preventative Maintenance 4 0 2 0 4 4 2 0 0 3 1 20 82 PRCS Athletic programming 0 2 2 1 4 0 4 0 1 2 3 19 83 Health Community Health 3 1 1 1 4 0 4 0 0 1 4 19 84 CD Right of Way Permits 1 4 0 0 4 4 4 0 0 2 0 19 85 CMO Revenue and Collections - Home rule taxes 1 4 1 4 4 0 2 0 0 3 0 19 86 CMO Revenue and Collections - Online payments 1 4 1 4 4 1 1 0 0 3 0 19 87 CMO Revenue and Collections - Over the Counter payments (parking tickets, water bills, wheel tax, other misc payments)1 4 0 4 4 1 1 0 0 3 1 19 88 PRCS Summer Food Program/Child Nutrition Program/Congregate Meal Program 0 3 2 1 4 0 4 0 0 1 4 19 89 AS Facilities Management - In-House Construction Projects 4 0 2 0 4 4 2 0 0 2 1 19 90 CD Divvy Bikes 0 2 1 1 4 2 4 1 0 0 3 18 91 PRCS Community Services/Youth Engagement 0 1 0 1 4 0 4 0 4 0 4 18 92 PRCS Gibbs-Morrison Cultural Center 0 1 0 1 4 4 4 0 0 0 4 18 93 CMO Revenue and Collections - Real Estate Transfer Stamps 1 4 2 4 4 0 1 0 0 2 0 18 94 CMO Revenue and Collections - Wheel Tax 1 4 0 4 4 2 2 0 0 1 0 18 95 PRCS Noyes Cultural Arts Center 0 4 0 1 1 4 4 0 0 1 3 18 96 PWA Street Sweeping 4 0 0 4 4 4 2 0 0 0 0 18 97 PWA Leaf Pickup and Disposal 4 0 0 4 4 4 2 0 0 0 0 18 98 CMO State mandated boards, commission, and committee administration 3 0 2 3 4 1 1 1 3 0 0 18 99 CMO Boards, commisison, and committee administration by resolution/ordinance 1 0 4 4 4 1 1 1 2 0 0 18 100 Fire Specialized Rescue Operations 3 1 1 2 4 0 4 0 2 0 0 17 101 PRCS Indoor/Outdoor Recreation Programs 0 2 2 1 4 0 4 0 0 1 3 17 102 PRCS Summer Camps 0 2 2 1 4 0 4 0 0 1 3 17 103 PWA Sports Field Maintenance 1 1 1 4 3 4 3 0 0 0 0 17 104 PRCS Special Recreation Programs 0 1 2 1 4 0 4 0 0 1 4 17 105 CD Long-range planning (comprehensive plan, area plans)0 0 0 0 4 4 4 3 0 0 2 17 106 PRCS Cultural Arts Programs 0 3 1 1 4 0 4 0 0 1 3 17 107 PWA Special Assessment Alley Improvements 0 2 0 4 0 4 4 0 0 0 3 17 108 Health West Nile tracking - grant funded 3 4 0 4 4 0 2 0 0 0 0 17 109 Health Beach/Water Quality monitoring 3 4 0 4 4 0 2 0 0 0 0 17 110 CD Storefront Modernization Program 0 4 0 1 3 4 4 0 0 0 1 17 111 AS Fleet Services - Vehicle Replacement Planning and Purchasing 3 0 0 4 4 3 1 0 0 2 0 17 112 PWA Pavement Marking 1 0 0 4 4 4 4 0 0 0 0 17 113 PWA Streetlight, Traffic Signal and Sign Maintenance and Repairs 1 0 0 4 4 4 4 0 0 0 0 17 114 AS Human Resources - Benefits Administration 4 0 1 0 1 1 3 0 2 4 0 16 Attachment B: Full Program List 121 of 122 Staff Rank Dept. Program Mandated to Provide Service Cost Recovery Change in Demand Reliance on City Portion of Community Served Infrastructure and Facilities Community Development/ Job Creation Affordable Housing Police/ Community Relations Stabilize Finances Equity Total Basic Program Attributes (From Departments, Budget Team Review)City Council Goals (Interdepartment Team) 115 PRCS Fleetwood-Jourdain Theater 0 1 2 1 4 0 4 0 0 1 3 16 116 PWA Tree Preservation Permit Issuance and Enforcement 1 2 1 4 1 3 4 0 0 0 0 16 117 CD Business Licensing 0 4 0 1 3 3 4 0 0 1 0 16 118 PWA Bike Infrastructure Maintenance 0 0 2 4 2 4 4 0 0 0 0 16 119 PWA City Properties Landscaping and Snow/Ice Control 1 0 1 4 4 3 3 0 0 0 0 16 120 PWA Tree Trimming, Removal and Planting, and Evaluations 0 0 1 4 4 3 4 0 0 0 0 16 121 Police Police Building maintenance 1 0 0 4 4 4 2 0 1 0 0 16 122 PWA Playground Equipment Maintenance and Repairs 0 0 0 4 3 4 4 0 0 0 1 16 123 PWA Snow and Ice Control 1 0 0 4 4 3 3 0 0 1 0 16 124 PWA 50/50 Sidewalk Program 0 2 1 4 1 4 2 0 0 0 1 15 125 PRCS Certificate of Rehab Programs 0 1 0 1 1 0 4 0 4 0 4 15 126 CMO Tax Assessment Advocacy 1 0 1 3 3 0 1 2 0 0 4 15 127 PWA Special Refuse Pickups 1 2 1 4 2 2 3 0 0 0 0 15 128 CMO Pension Administration 3 0 0 4 4 0 0 0 0 4 0 15 129 PWA Permits for Block Parties, Moving Vans and Dumpsters 0 4 0 4 2 0 4 0 1 0 0 15 130 CMO Administrative Adjudication 0 4 0 2 1 1 3 0 2 1 1 15 131 CD Sign Permits and Inspection Services 1 4 0 0 4 2 4 0 0 0 0 15 132 AS Fleet Maintenance 4 0 0 0 4 3 1 0 0 3 0 15 133 Fire Public Education/Community Engagement 1 1 1 0 4 0 4 0 2 0 1 14 134 PRCS Recreation Center Bus Program 0 0 1 1 4 0 4 0 0 0 4 14 135 Health Vacation Rental Permit and Administration (Airbnb)1 4 0 0 4 1 4 0 0 0 0 14 136 AS School Crossing Guards 1 1 0 1 4 1 2 0 1 0 2 13 137 Health Vital Records - Birth and Death Certificates 3 1 0 3 4 0 0 0 0 0 1 12 138 PWA Lakefront and Beach Maintenance and Cleaning 0 0 0 4 1 3 4 0 0 0 0 12 139 CMO Community Arts Administration 1 0 0 1 4 1 4 0 0 0 1 12 140 CMO Revenue and Collections - Passport 0 4 2 2 4 0 0 0 0 0 0 12 141 PWA Annual Dredging for Boat Launch and Harbor 0 1 0 4 0 3 3 0 0 0 0 11 142 PWA Twice Annual Bulk Pickups 0 0 0 4 2 2 3 0 0 0 0 11 143 PWA Business District and Park Refuse Pickup and Disposal 0 0 0 4 2 2 3 0 0 0 0 11 144 Health Social Services (Victim Advocacy)0 0 0 1 2 0 2 0 4 0 2 11 145 CD Historic Preservation Review 1 1 0 0 2 2 4 0 0 0 0 10 146 PWA Dutch Elm Disease Control 0 0 0 4 4 0 2 0 0 0 0 10 147 CD Mental Health Board 1 0 0 1 2 0 2 0 1 0 2 9 148 PWA Public Art Installation Support 0 0 2 0 4 0 3 0 0 0 0 9 149 AS Human Resources - Training 0 0 1 0 1 1 3 0 2 0 0 8 150 AS Payroll 3 0 0 0 4 0 0 0 0 1 0 8 151 PWA Special Event Support 0 2 0 0 1 0 4 0 0 0 0 7 152 PRCS Subsidized Taxi Cab Coupon program 0 0 0 0 1 0 0 0 0 0 4 5 Attachment B: Full Program List 122 of 122