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HomeMy WebLinkAboutRESOLUTIONS-1984-008-R-841/4/84 8-R-84 A RESOLUTION Creating a Displacement Strategy Directed Toward the Mitigation of Involuntary Permanent Displacement of Evanston Residents in the Implementation of the 1984-85 Community Development Block Grant Program WHEREAS, the Congress of the United States did pass the Housing and Community Development Act of 1974, which is known as Public Law 93-383 and was amended by Pub. L 95-557, Pub. L 96-399, and Pub. L 97-35; and WHEREAS, Title I of the Act makes block grants available for certain housing and community development activities; and WHEREAS, the City of Evanston is an "entitlement City" by definition • of said Act, and as such, is eligible for grant funds; and WHEREAS, the City of Evanston also must certify that, prior to the submission of its application to the Department of Housing and Urban. Development, it has met certain citizen participation requirements, as outlined in Subpart D §570.301(a)(2) in the Community Development Block Grant Rules and Regulations; and is WHEREAS, said United States Department has added a provision in Sub- part D requiring that the City of Evanston must develop, adopt, make public and implement a statement of local policy indicating the steps that will be taken to minimize displacement and mitigate any adverse effects on low and moderate income households in Evanston; and. WHEREAS, such a strategy has been developed,by evaluating which Com- munity Development Block Grant program activities may result in residential dis- placement; and •SR f rY �.1 4' 1/4/84 8-R-84 WHEREAS, the City of Evanston, in an effort to assure community • participation in the development and implementation of the Displacement Strategy did hold a public hearing on January 3, 1984 to receive citizen comments on the Strategy's content; and WHEREAS, the City's Housing and Community Development Act Committee. did approve said Displacement Strategy at its meeting on January 3, 1984; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS, that the attached Displacement Strategy, marked as Exhibit A, attached hereto and incorporated herein by reference, is hereby approved and the, City Manager is hereby directed to carry out said Strategy. T 7/ Mayor ATTEST: , City Clerk G a ADOPTED: i G' ,1984 EXHIBIT A PROPOSED DISPLACEMENT STRATEGY • CITY OF EVANSTON COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM The Department of Housing and Urban Development (HUD) has added a provision to its presubmission requirements in the: application for entitlement funding. The general policy on displacement provides that, in the administration of Federal housing and community development programs; involuntary displacement of persons from their neighborhoods should be minimized. The grantee must estimate the amount of public and private displacement and take into account the objective of helping displaced persons relocate within their own neighborhoods in the selection of general locations for newly constructed or substantially rehabilitated publicly assisted housing. The new provision requires that where CDBG activities could result in involuntary per- manent displacement, grantees must develop, adopt, make public and implement a state- ment of local policy indicating the steps that will be taken to minimize such displacement and mitigate its adverse effects on low and moderate income households. This strategy is intended to address these requirements. PART I. BASIC STEPS FOR.AVOIDING DISPLACEMENT. The steps which the City.intends to take to avoid displacement, or to mitigate its effects, can be summarized in the following manner (any specialized actions for *an individual activity will be included in the activity descriptions following Part I). 1. The City will follow all applicable .rules of the Uniform Relocation and Real Property Acquisition Policies Act, which applies to any acquisi- tion of real property by a state agency that is carried out for a project that is financially assisted by HUD (see 24CFR §42.85 and §42.61). 2. Efforts will be made, to the greatest bxtent possible, to relocate renter and owner occupants to nearby replacement housing/commercial space or within the project area. i, 3. Property acquisition will be highly selective,targeting only those properties essential to the success of the project. 4. The City will place priority on the.purchase of an unoccupied building; if a suitable, unoccupied site cannot be found, the City will give priority to purchasing.an occupied property from a willing seller. 5. When a property must be,acquired quickly for whatever reason, efforts will be made to avoid tenant or owner displacement until the property is actually needed. 6. The acquisition and/or demolition of properties will be timed so as to allow the maximum amount of time for tenant or owner relocation. 0 -2- PART 11. CDBG PROGRAM ACTIVITIES POSSIBLY RESULTING IN DISPLACEMENT. The following Community Development Block Grant (CDBG) funded activities may result.in the displacement of families or individuals as a result of the acquisition or demolition of real property. Besides the aforementioned steps/policies in Part I, the special measures which the City intends to take to avoid displacement, or mitigate its effects, follow the description of each activity. A. 1984-85 Congregate Housing for the Elderly. A total of $40,000 has been allocated to this activity for FY1984. These funds will be used to purchase•real property for the purpose of establishing a congregate housing facility for the elderly. The following is a special.measure the City of Evanston will.take to avoid displacement or mitigate its effects. -If an occupied site, owned by a willing seller is purchased and the seller is elderly and otherwise eligible to participate in the con- gregate facility, the individual(s) will be given priority for occupancy in the dwellinks. B. 1983-84 Downtown II Acquisition Fund. A total of $200,000 has been set aside for property acquisition in the Downtown II project area. The funds will be used to acquire those properties which have the highest redevelopment priority. The City of Evanston will take the following special measure to avoid displacement or mitigate its effects. • -When a property is occupied for a commercial or residential use, every effort will be made to avoid acquisition until the property is actually needed for project purposes. C. 1983-84 ECDC Church/Dodge Project. A total of $450,000 has been allocated to this project. The purpose of the project is to revitalize the Church/Dodge neighborhood commercial area. Selective property acquisition may be required to achieve this objective over the long term. The following special measures will be taken by the City of Evanston to avoid displacement or mitigate its effects. I' -Where the timing of the acquisition and demolition of project sites is up to the discretion of the project managers (ECDC), every effort will be made to avoid displacement until absolutely necessary. In addition, displacees will be given the maximum amount of time possible to relocate. -Although application of the Uniform Act Regulations are not mandatory in this project (because it is being carried out by a subgrantee), the subgrantee has indicated a willingness to utilize the guidelines for relocation benefits set'forth in the regulations. 0 -3- • D., 1980-81 and 1981-82 Custer/Callan Improvement Project. Approximately $85,000 remains in this project account for physical improve - meets to the Custer/Callan neighborhood commercial strip. Implementation of one or more of these improvements may necessitate property acquisition and demolition, resulting in residential or commercial displacement. The steps outlined in Part I generally apply to this activity. E. Multifamily Housing Rehabilitation. A total of $153,000 is available for this activity, based on the $75,000 allocated in the 1984 program year and the $78,000 remaining from previous grant years. The City has already developed a Tenant Assistance Policy to mitigate the hardship of displacement resulting from rehabilitation work. This policy is attached hereto and incorporated into the displacement strategy in Append -ix A. This administratively developed policy will be revised in accordance with the new CDBG regulations and the new policy will be reflective of these changes. F. Other Housing Programs. A total of $485,000 has been allocated for the City's Single-family rehabili- tation program in 1984. The City has adopted a Relocation Policy to reduce the hardship of relocation resulting from rehabilitation work. This temporary dis- placement -policy is included in Appendix B. is 0 • • APPENDIX A CITY OF EVANSTON A MULTIFAMILY REHABILITATION DEMONSTRATION PROGRAM TENANT ASSISTANCE POLICY il I. GENERAL PROVISIONS • The purpose of the Tenant Assistance Policy is to clarify tenant rights under the City of Evanston's Multifamily Rehabilitation Program designed to promote rehabilitation of rental properties located in the Community Development Target Areas'°(Census Tracts 8092, 8093, 8097, 8098, and 8101 - see attached map). This policy specifically provides for: (1) any temporary moves during rehabilitation; and (2) the displacement of any low-income households resulting because of -rehabilitation undertaken through this program. A. Tenant Right to Occupancy In accordance with the following policies,'all eligible tenants with valid leases at the time the prbject receives final approval and a subsidy commitment from the Ciiy of Evanston are assured of the right to renewed/continued occupancy upon completion of the rehabilitation. Immediately upon completion of the rehabilitation work, the owner shall offer each eligible tenant a one year lease. iB. Definitions of Household Income. For the purpose of this program, household income shall be the gross income of all persons residingin the household who are 18 years of age or older. Tenants failing to submit verification of income cannot be evaluated for eligibility for permanent relocation expenses and will be so advised by the City.! 1. Tenant households earning 80% or less of the Standard Metropolitan Statistical Area (Sti1SA) Median Income There will be a limited number of Existing Section 8 Certificates available for tenant households earning 800 or less of SNISA Median Income. A schedule of SNISA median income by household sizze is attached. 2. Tenant households earning more than 80 % of the SNISA Median Income t Tenants earning more than 8010 of the SMSA Median Income shall be charged the fair market rent as determined by the owner for the dwelling they occupy. - 2 - . II. RELOCATION ASSISTANCE This section covers tenant and landlord rights and responsibilities in the case where either (1) temporary relocation of residents is required in order to accomplish rehabilitation, or (2) permanent displacement of low income tenants occurs. In both instances, property owners will be liable for all housing and moving costs as provided in this section and the City shall bear no financial responsibility for these or any other expenses incurred by tenants under this program. Before any City loan funds are placed in the rehabilitation fund escrow, and within 14 days of notification by the City, the owner shall place any,funds estimated by the City to be required for temporary relocation assistance or permanent relocation in a separate interest -bearing escrow account, hereafter referred to as the relocation escrow. After a final commitment has been given to the owner, the City will notify all tenants in the building of their rights under this program. A. Temporary Relocation The rehabilitation of a multifamily property often involves temporary i inconveniences. Residents should expect some normal level of temporary inconvenience and adjust their living schedules accordingly. The following provisions are made in the event that temporary moves are required. With the City's approval, tenants shall be reimbursed from the reloca- tion escrow account for reasonable and necessary housing and moving expenses as defined in section 1 and 2 below. The remainder of the escrow funds, if unused, shall be returned to the owner after the completion of the project. 1. housing expenses If temporary relocation is required, as determined by the City, in order to carry out the rehabilitation of the tenant's dwelling, the ter_ant shall be reimbursed for any increased monthly housing cost to be defined as rent and utilities incurred in connection with the move. The housing offered for the temporary period will Ibe decent, safe and sanitary. The property owner shall assist the tenant in locating suitable housing. Costs for temporary - 3 - housing shall be reimbursed for the period'that.the original unit • is being rehabilitated. 2. Moving Expenses If the tenant must temporarily move to another building.or to another unit in the same building, the tenant shall be reimbursed for moving expenses, up to a maximum of $300. B. Permanent Relocation (also referred to as Displacement) 1. Displacement Criteria for Relocation Permanent relocation benefits will be available for tenants who are determined by the City to be displaced and must move per- manently from their existing dwelling. Said determination shall be made within 14 days of final application approval,and based upon data provided by the tenant and the owner. Displacement and relocation depend upon the income of the tenant and the after -rehabilitation rent to be charged for the unit that the tenant presently occupies. Displacement will be considered to have occurred under the following circumstance: • If a tenant household's income is 80% or less of the SMSA Median Income, and the after rehabilitation rent for the unit exceeds 110% of the established HUD Fair Market Rent for the appropriate size unit, the tenant will be considered displaced. (The HUD Fair Market Rent schedule is attached.) 2. 'Relocation Benefits for Displaced Tenants Each residential tenant displaced as a direct result of a pro- ject assisted under the demonstration shall be entitled to assistance in accordance with the following policies: a. Notice: The tenant shall be contacted personally and in writing by the City and provided timely information that fully explains the reason for the displacement and describes the relocation assistance available to him/her. Unless the City determines there is an urgent need for • vacation of the property because of substantial danger _ � a to the health or safety of the occupants, or unless the tenant is evicted for cause, the tenant shall be given at least 90 days advance notice of.the earliest date by which he/she must vacate the property. b. Advisory Services: The City of Evanston and/or the Housing---o Authority of Cook County will offer the tenant advisory services to minimize hardships in adjusting to the relocation. c. Suitable Replacement Dwelling: The owner may offer the displaced tenant a suitable replacement dwelling. In the event there is disagreement between the landlord and tenant as to what constitutes a suitable replacement dwelling, the City shall make the final determination. Any displaced tenant shall not be entitled to cash payment assistance (see Section 2(d) below) if he/she has refused a suitable replacement dwelling, which is defined as follows: (1) decent, safe and sanitary; (2) available at a monthly housing cost (rent and utilities) that does not exceed 30' of the gross combined income of all members of.the tenant's household who are 18 years of age .or older. (3) in an area that is not subject to unreasonable adverse condition; is not generally less desirable than the location of the displaced person's dwelling with respect to public transportation, utilities, commercial and public facilities; and is reasonably accessible to the per.son's place of employment. (d) available at a monthly housing cost (rent and utilities) which does not exceed 1100 of HUD Fair Market Rents for the area (applicable only to households with Section 8 Certificates). Where it is available, eligible displaced tenants will be offered a Section 8 Existing Housing Certificate of Family Participation. The certificate will reduce the monthly • housing cost (rent and utilities) to these tenants to 300 . of their adjusted income. Those who receive a Section 8 Certificate or who have refused a suitable replacement dwelling which may be offered by the owner will not be entitled to any cash payment assistance. d. Cash Payment Assistance: unless the tenant signs a waiver as specified in Section (g) below, a displaced tenant who is not'offered a suitable replacement dwelling shall be entitled to a lump sum payment computed in the following manner: (The payment may be used to rent or buy a replace- ment dwelling.) (1) monthly rent Plus utility costs at a replacement dwelling up to 1100 of the HUD Fair Market Rent Schedule (2) thirty percent (300) of the gross monthly income of all adult members of the tenant's household (3) line (1) minus line (2) (4) twenty-four (24) times the amount of line (3) up to a maximum of $2,000 e. Moving Expenses: Tenanis,'who must relocate shall be re- imbursed by the property owner for the actual, reasonable cost of moving his/her possessions, up to a maximum amount of $500. f. Permanent Relocation Assistance in Escrow: Before any City loan funds may be disbdrsed, the owner shall be required to place two thousand three hundred dollars (2,300) in the relocation escrow for each tenant household earning 500 or less of the SMSA Median Income, which does not sign a waiver of his/her rights to permanent relocation assistance (see Section (g) below). g. Waiver by Tenant: A fully informed tenant may waive his/her rights to permanent relocation assistance if he/she wishes to exercise his/her rights to renewed/continued occupancy • under Section II(A)..' The waiver shall be in writing. -6- • • Section 8 Income Guidelines Chicago SMSA PERSONS 1 2 3 4 5 6 (80% Median) $ 17,600 20,100 22,600 25,100 26,700 28,250 In effect October 1, 1981 EXISTING SECTION 8 FAIR MARKET RENTS Number of Bedrooms 0 1 2 3 4+ $353 426 498 623 694 Effective: 10/01/83 r1 APPENDIX B CITY OF EVANSTON RELOCATION POLICY Residents of rental units who are displaced from their units due to City Code violations of a serious nature, including those violations which pose a threat to health and safety, and meet income guidelines (see #5 below), may be eligible for monetary assistance as follows: 1. Displacement from the unit shall be only at the direction of the Directors of the Health Department, Property Standards Department or the Building and Zoning Department with notifi- cation to the Housing Department Housing Counselor. 2. Monetary assistance for eligible clients, to be paid as the security deposit, shall be no greater than the amount of one month's.rent of replacement unit. 3. Replacement unit must be inspected and approved by Property Standards Department as to meeting Housing Code provisions. 4. Replacement unit shall be of a rent level comparable to vacated' unit, and, in the opinion of the Housing Counselor, able to be supported financially by the client. • 5. Monetary assistance shall be paid directly to the building owner and be refundable to the City upon vacation of the replacement unit by the client. A signed agreement to this effect (sample attached) shall.be executed and remain in client file. 6. Eligibility for the program shall be only for those residents who meet the Rehab Program income guidelines, confirmed by submittal of their previous year's income tax return. The Housing Department Housing Counselor shall coordinate all activities in regard .to relocation and retain all file material. Income Guidelines Family Size maximum Allowable Gross Income _ 1 $13,350 2 15,250 3 17,150 4 19,050 5 20,250 6 21,400 • 7 22,600 Plus $1,500 for each dependent family member above 7. Ihave received Name of Landlord from the City of Evanston as the security deposit .Amount of Money for I understand this money is to be used Address as a security deposit, not as prepaid 'rent, and is to be returned to the City of Evanston when vacates the NAME OF TENA!iT premises. Interest, at the rate provided for in the Residential Landlord and Tenant Ordinance, is to be paid to the City of Evanston. LANDLORD TENANT DATE TENANT TENANT DATE 0