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City of Evanston Illinois Consolidated Annual Performance and Evaluation Report Fiscal Year 2005/06 (March 1, 2005 to February 28, 2006) A report on the use of Federal Community Development Block Grant, HOME Investment Partnership Program, and Emergency Shelter Grant Funds by the City of Evanston. Prepared by City of Evanston, Community Development Department, July, 2006 Community Delopment Department Planning Division 2100 Ridge, Evanston, Illinois 60201 847-866-2928 www.cityofevanston.org City of Evanston, Illinois CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT For Fiscal Year 2005/06 (March 1, 2005 to February 28, 2006) TABLE OF CONTENTS PAGE I. Introduction.......................................................................................................................................1 A. Summary of Resources and Programmatic Accomplishments.............................................1 B. Evanston Strategic Plan .......................................................................................................1 II. Narrative Statements........................................................................................................................3 A. Assessment of Five Year Consolidated Plan Goals and Objectives.....................................3 1. Housing .........................................................................................................................3 2. Public Services.............................................................................................................11 3. Public Facilities, Public Improvements, Environment and Community Appearance.....14 4. Economic Development ...............................................................................................16 B. Affirmatively Further Fair Housing ................................................................. .....................21 C. Affordable Housing Activities...............................................................................................22 D. Continuum of Care Activities ...............................................................................................23 E. Other Actions.......................................................................................................................23 F. Leveraging Resources ........................................................................................................24 G. Citizen Comments ................................................................................................................. H. Self Evaluation ...................................................................................................................... III. Narrative Statements for CDBG Entitlement Funds ....................................................................26 A. Use of CDBG Funds and the Consolidated Plan.................................................................26 B. Changes in Program Objectives..........................................................................................27 C. Completion of Consolidated Plan Actions............................................................................28 D. National Objectives .............................................................................................................28 E. Displacement of Persons.....................................................................................................28 F. Economic Development Activities with unfilled Low Income Jobs .......................................28 G. Low and Moderate Income Benefit......................................................................................28 H. Program Income..................................................................................................................29 I. Completed Rehab Projects..................................................................................................29 J. Neighborhood Revitalization Strategies ..............................................................................29 IV. Narrative Statements for HOME Entitlement Funds .....................................................................31 K. Use of HOME funds and the Consolidated Plan..................................................................31 L. Report of Contracts and Subcontracts with MBEs/WBEs....................................................33 M. Matching Funds report ........................................................................................................33 N. Monitoring and Inspections..................................................................................................34 O. Assessment of Affirmative Marketing and Outreach............................................................34 V. Narrative Statements for HOPWA Entitlement Funds ..................................................................35 VI. Narrative Statements for ESG Entitlement Funds ........................................................................36 A. Use of ESG Funds and the Consolidated Plan....................................................................36 B. Match Requirements ...........................................................................................................36 VII. Public Participation Requirements ................................................................................................36 APPENDICES A. Citizen Comments B. PR03 CDBG Activity Summary Report for 2005-06 C. PR06 - Summary of Consolidated Plan Projects for 2005-06 D. PR20 – ESG Grantee Activity Summary E. PR22 – Status of HOME Activities F. PR23 – Summary of Accomplishments,for 2005-06 G. HUD Form- 40107-A - HOME Match Report H. HUD Form – 40107 – Annual Performance Report HOME Program I. PR 4949.3 Financial Summary of CDBG J. City of Evanston Strategic Plan City of Evanston, IL 2005/06 CAPER I. INTRODUCTION A. Summary This Consolidated Annual Performance and Evaluation Report (CAPER) discusses Evanston's community development objectives and how the City of Evanston has been able to successfully implement programs and projects to address those objectives during the 2005/06 program year (March 1, 2005 to February 28, 2006) utilizing federal funding provided to Evanston by the U.S. Department of Housing and Urban Development (HUD), the City spent $3,616,392 on community development activities during the 2005/06 program year. These funds were expended on programs and projects which were consistent with the City's One-Year Action Plan for FY 2005/06 and the City's HUD 2005-2009 Consolidated Plan. This is the first CAPER based on the new five year Consolidated Plan. Evanston received $2,899,558 in HUD federal funds in FY 2005/06: $2,247,021 in Community Development Block Grant (CDBG) funds, $564,940 in HOME Investment Partnerships (HOME) funds and $87,597 in Emergency Shelter Grants (ESG) funds. Together with unexpended CDBG and HOME funds from prior years plus program income (loan repayments), the City used these federal funds to carry out activities to assist low and moderate income residents and to eliminate blighting and deterioration through neighborhood revitalization capital improvement strategies. This Consolidated Plan Annual Performance and Evaluation Report discusses how Evanston addressed its community development objectives by utilizing HUD-provided funding and leveraging local and other funding sources in FY 2005/06. Evanston's priority needs and community development objectives were derived from the City's HUD 2005- 2009 Consolidated Plan. Evanston's Consolidated Plan is a five year strategic planning document which sets out the City of Evanston's priority needs and community development objectives and suggests ways in which the City can address those needs and objectives. The Consolidated Plan was adopted by the Evanston City Council on January 10, 2005. Evanston's Consolidated Plan addresses the following three federal statutory goals: Provide decent housing: assist homeless persons in obtaining affordable housing, retain the affordable housing stock, increase the availability of permanent housing that is affordable to low-income residents without discrimination, and increase supportive housing that includes structural features and services to enable persons with special needs to live appropriately. Provide a suitable living environment: improve the safety and livability of neighborhoods, increase access to quality facilities and services, reduce the isolation of income groups within areas by de- concentrating (affordable) housing opportunities and revitalizing deteriorating neighborhoods, restore and preserve natural and physical features of special value for historic, architectural or aesthetic reasons and conserve energy resources. Expand economic opportunities: create jobs accessible to low and very-low income persons, provide access to credit for community development that promotes long-term economic and social viability, empower low and very low-income persons in federally assisted and public housing to achieve self-sufficiency. The priority needs and strategic objectives contained in Evanston's 2005-2009 Consolidated Plan were developed through a community input process which included Evanston residents, City boards and commissions (i.e., the Housing and Community Development Act Committee, Evanston Housing Commission, Evanston Plan Commission, Evanston Human Relations Commission and Economic Development Committee) and the participation of many not-for-profit organizations which carry out the programs and projects designed to address the needs of Evanston's low/moderate income residents. B. Evanston Strategic Plan – Implications for Community Development In 2006, the City adopted a new Strategic Plan which addresses numerous community development goals and objectives. The Strategic Plan is consistent with the Consolidated Plan. The goals most immediately relevant to the Consolidated Plan include the following: 1. Create and implement a comprehensive economic development strategy which results in a vibrant and diverse economy. 2. Create policies and programs that result in a well maintained, diverse housing stock. 3. Generate marketable job skills for Evanston residents. Section I Page 1 City of Evanston, IL 2005/06 CAPER 4. Create and maintain functionally appropriate, sustainable, accessible and high quality infrastructure and facilities. 5. Protect and optimize the City's natural resources and built environment, leading by example through sustainable practices and behavior. 6. Coordinate and influence transportation resources to provide an improved system that is safe, integrated, accessible, responsive, understandable, and efficient and meets the needs of all people. 7. Ensure that Evanston neighborhoods are safe, clean and attractive. 8. Provide opportunities for and engage Evanston youth and young adults to become active and productive citizens of the Evanston community. 9. Strive to ensure that all Evanston residents have access to health care as well as basic food, housing and shelter. 10. Create collaborative and productive partnerships with schools, hospitals, business organizations, arts organizations and other not for profit groups and governments. 11. Continue to develop a collaborative relationship with Northwestern University, the city's largest employer. Two goals of the 13 do not apply to the Consolidated Plan. The economic development strategy more specifically will focus on the following priorities: downtown development, neighborhood development, business retention, business attraction, creative class, employment capture by local residents and citywide technological and communication needs. The housing goals of the strategic plan have several objectives for action that relate directly to the implementation of the Consolidated Plan and the efficient and effective use of HUD resources and local resources to achieve housing objectives. These include the following. • Assess existing housing programs and inspection services to identify strengths and gaps. • Develop and implement a comprehensive inclusionary and affordable housing policy. • Create workforce ownership and rental housing opportunities. • Improve affordable housing provided in Evanston by regional housing agencies and local not for profits through exemplary tenant screening and enforcement of property standards. • Continue advocacy of affordable housing choices throughout the northern suburbs. A complete copy of the strategic plan with implementation tasks has been enclosed as an Appendix. Section I Page 2 City of Evanston, IL 2005/06 CAPER II. NARRATIVE STATEMENTS II-A. Assessment of Five Year Goals and Objectives The City of Evanston was able to undertake 50 new programs/projects in the 2005/06 program year utilizing CDBG, HOME and ESG funds. Together with 14 continuing CDBG and HOME programs/projects from prior years, the City had 64 ongoing activities during the 2005/06 program year. More than 99% of the funds expended served low and moderate income Evanston residents. The following table shows the amount of CDBG, HOME and ESG funds which were available to the City of Evanston for FY 2005/06, the amount obligated to projects and programs implemented during the year and the amount expended during the reporting period, March 1, 2005 - February 28, 2006. SUMMARY OF RESOURCES AND PROGRAMMATIC ACCOMPLISHMENTS Amount Available Amount Amount Grant 3/1/05 Obligated Expended CDBG Funds on hand 3/1/05 $2,641,407 $2,641,407 2005 entitlement 2,247,021 2,247,021 Program income 291,100 Prior Period Adj. (79,551) Total CDBG $5,099,977 $5,099,977 $2,721,771 HOME Prior years' funds $1,666,499 1,068,202 $805,657 2005 entitlement 564,940 56,494 Program Income 77,927 ________ Total HOME $2,309,366 $1,124,696 $805,657 ESG Prior year's funds $1,367 $1,367 2005 entitlement 87,597 87,597 Total ESG $88,964 $88,964 $88,964 TOTAL FUNDS: $7,498,307 $6,313,637 $3,616,392 HOW ACTIVITIES ADDRESSED PERTINENT STRATEGIC PLAN GOALS AND OBJECTIVES The CDBG, HOME and ESG funds expended during the year for programs and projects which benefited Evanston low and moderate income residents and clearly address the goals and objectives identified in the Five Year Consolidated Plan for 2005 – 2009. Those activities undertaken in Fiscal Year 2005/06 are described below the relevant Consolidated Plan Goals indicated by a check box for the categories of Housing, Public Service, Economic Development and Public improvement. II-A-1. Housing Goals The City's Consolidated Plan for 2005–2009 contains a number of objectives that address housing goals for lower income persons. The City utilizes funding from all three of its HUD grants (CDBG, HOME and ESG) to address the housing needs of the low income population ranging from 30% of area median income (extremely low) to 50% of median (very low) to 80% of median (low). Other funding sources such as the City's Special Housing Fund, Cook County lead grant awards, and HUD Supportive Housing Program grants, assist the City in addressing these goals. Maintain existing affordable housing options and promote opportunities that increase the supply of affordable housing for low income households. The range of affordable housing needs was met through a variety of programs administered by the City and non-profit agencies. Housing projects used $2,033,821 in federal funds in 2005-06, with $1,139,200 in CDBG, $805,657 in HOME funds, and $88,964 in ESG funds, plus an additional $233,000 in local funds through the City's Special Housing Fund. The funds helped existing homeowners maintain their homes, Section II Page 3 City of Evanston, IL 2005/06 CAPER helped low income residents purchase affordable homes, ensured housing standards were met in existing rental properties, and provided housing assistance to very low income persons facing homelessness. The Community Development Department is responsible for overseeing the funding and reporting for these programs, and administers the CDBG and the HOME programs. In addition, Community Development administration oversees the Property Standards, Property Rehabilitation, Building, Zoning and Planning Divisions and the Evanston Housing Corporation. Salaries of the Community Development Director and the Director's Assistant are partially funded with CDBG funds. Community Development Administration participated in the implementation of the West Evanston Tax Increment Financing District and facilitated a number of Planned Developments in 2005-06, two of which are located in the CDBG Target Area. A number of Planned Developments contributed a payment for the City's Affordable Housing efforts as a public benefit of the Planned Development. Other Community Development Administration activities included participating in Inclusionary Housing policy development, serving on Loan Committees, and coordinating the work of staff involved in several CDBG administered programs. Provide funds and assistance for low income single family owner-occupants to rehab their homes. Provide low interest rehabilitation loans for existing rental properties with a majority of low income households. Address Lead Based Paint Hazards The City continues to provide housing rehabilitation services through its CDBG Revolving Loan Fund to qualifying owner and tenant occupied housing. While the number of rehabilitated units was less than anticipated for 2005-06 due in part to a vacant staff position, it is anticipated that the five year goals will be met. The One and Two Family Rehabilitation Program provides owner occupants earning up to 80% of median income an opportunity to rehabilitate their homes with affordable loans. During the 2005-06 fiscal year, eleven (11) owner-occupied units, including one condominium, were rehabbed with $248,000 in zero percent (0%) funding. Funds are utilized for eliminating code violations and improving and updating existing building components including roofing, heating, electrical, plumbing and structural, and eliminating lead based paint hazards. The program was modified in the last two years to include condominium owner- occupants. The Multi-family Rehabilitation Program, which addresses buildings containing two or more units with a majority of tenants earning up to 80% of median income, rehabbed nine (9) units using approximately $54,000 in very low interest funding. In addition, the City in 2003 obtained Cook County funding to address lead based paint hazards in Housing Rehabilitation projects. In 2005-06, approximately $147,000 of Cook County funds was utilized to address lead based paint hazards, supplementing CDBG funds. A high percentage of the One and Two Family Rehabilitation Loans are made to very low income households , those with household incomes of 50% or less of the area median income. These loans do not have to be repaid until the property is sold or title is otherwise transferred, thus allowing the owner to make improvements without incurring any additional ongoing housing expense. Households earning up to 80% of median income may qualify for 0% funding with monthly payments for up to 25 years. In the Multi-Family Program, interest rates equal one-half of the 30 Year Treasury bill. The loans are paid back for up to a 20 year term. Loan payments (program income) replenish the revolving loan fund and allow the City to fund new loans. The Housing Rehabilitation Division offers a range of loans and services that address rehab of condominium units, vacant buildings, building emergencies, demolition, including dangerous garages, and removal of dangerous/diseased trees. Housing Rehabilitation staff work closely with other Community Development staff including Building, Planning, Zoning and Property Standards, as well as with other departments such as Fire, Police and Health, and outside agencies. Housing Rehabilitation promotes its programs on an on-going basis through all available sources including the web site, radio, print, the City's Highlights newsletter, and possibly most importantly through all Property Standards violation letters and notices. The Housing Rehabilitation Construction Specialist and the Property Standards Supervising inspector are both required by the City of Evanston to be certified by the State of Illinois as a lead risk assessor. The City works to be thorough in all aspects of addressing lead based paint hazards in all required areas. Section II Page 4 City of Evanston, IL 2005/06 CAPER The City of Evanston's Health Department coordinates the Childhood Lead Poisoning Prevention Program and works in conjunction with the Community Development Department to address lead based paint hazards. Environmental lead assessments are conducted in dwelling units where children with elevated blood lead levels reside. The source of lead poisoning is determined and corrective work may be required. Owners who do their own lead abatement work are required to attend an individualized safe lead removal education and training session provided by the Health Department. The owner must submit a safe lead removal plan that is approved by the Health Department prior to beginning abatement work. Education for homeowners, landlords, and tenants is provided through media campaigns, health fairs, school based activities, day care outreach, and community presentations. Safe work practice education is offered to homeowners doing their own painting, maintenance, and renovation work. CDBG funded rehab projects over $5,000 undergo a lead risk assessment and if lead paint areas will be disturbed as a result of the rehabilitation work, federal and state lead based paint guidelines are followed. Households with young children may be eligible for funding through the Health Department's lead based paint grant from Cook County. Non-profit agencies also provide housing assistance to low and moderate income residents. CEDA/Neighbors at Work used CDBG funds for its Minor Repairs/ Painting Assistance program which help low income single-family property owners take care of routine maintenance items in their homes. In 2005/06, CEDA completed minor repair projects on 7 homes, provided interior painting on 16 homes, and exterior painting on 6 homes. Priority is given to elderly and disabled homeowners and property owners who have received a housing code citation from the City's Property Standards division. Twenty-two projects were evaluated for the presence of lead-base paint and lead abatement measures were taken, where needed. Maintain property standards and enforce building codes. The City's Property Standards Division enforces the recently adopted ICC, International Property Maintenance Code, 2003 edition. This includes a number of local amendments which allow the Division to be more comprehensive in its inspections without requiring other City or inspection staff to cite certain violations. The Property Standards Division inspects non owner-occupied rental housing located primarily in buildings containing two or more units. The City has approximately 14,000 units within multi-family (two or more units) buildings. CDBG provides funding for a portion of the property standards staff. Buildings located in the CDBG target areas are inspected on a two year cycle. Property standards conducts routine inspections and also responds to complaints about a building or premises, including interior violations such as electrical, plumbing, heating and paint issues and hazards. Exterior complaints include trash and garbage, weeds, graffiti, abandoned vehicles and vacant buildings. In 2005-06, City property standards staff inspected 3,397 CDBG Target Area dwelling units through its regular inspection program, resulting in the correction of 4,412 housing code violations. In addition, staff investigated 1,590 property standards complaints. In 2005 and 2006 the City updated its building codes to address the most recent health, safety and energy conservation standards. Among the codes adopted are the 2003 International Building Code (IBC), International residential Code for One and Two family Dwellings (IRC), International Energy Conservation Code, International Fire Code, and Life Safety Code. Provide funding for first time home purchase opportunities – new construction or rehabilitation. Maintain existing affordable housing options and promote opportunities that increase the supply of affordable housing for low income households. Promote owner financial education Promote educational workshops and/or home buyer clubs for prospective homeowners Reduce foreclosure actions through education and early intervention and explore efficient and equitable methods to turn around foreclosed properties Support housing efforts to address the needs of special needs populations: elderly and frail elderly; victims of domestic violence; youth at risk of becoming homeless; and persons with developmental disabilities, physical disabilities, mental illness, substance abuse problems persons, and HIV/AIDS. Section II Page 5 City of Evanston, IL 2005/06 CAPER HOME Program funding and local funds were used for acquisition and rehab of single family or multi-family units in order to provide first time home purchase opportunities during the last fiscal year. Evanston's median home sale price in 2005 was $320,000. Seven low/moderate income, first- time home buyers were able to purchase homes in 2005/06 at reduced prices as a result of HOME subsidies awarded to the projects. • 3 town home units constructed by Econ Development Corporation sold for $185,000 each • 1 town home unit rehabilitated by Evanston Community Development Association sold for $165,000 • 3 condominium units rehabilitated by Reba Place Development Corporation sold for $100,000, $125,000 and $150,000. Four other ownership projects were awarded funding and are currently in development. • 12 unit condominium conversion with 9 units affordable to low income purchasers to be rehabilitated by Reba Place Development Corporation • 6 unit condominium conversion to be rehabilitated and remodeled by Evanston Community Development Association • 3 single family homes owned and managed by Evanston Housing Coalition as rental, to be rehabilitated and sold to low income purchasers • 2 new town home units to be constructed by Evanston Housing Coalition Three first-time home buyers purchased newly constructed affordably priced town homes. A low interest loan to the developer, Econ Development Corporation, reduced construction costs and enabled the developer to sell each unit for $185,000. The units feature three bedrooms, partially finished basements and garages. Evanston Community Development Association, a non-profit, faith-based organization, completed its first project in 2005. With HOME funding from the City, ECDA purchased a three- bedroom town home unit from a family in financial difficulty, saving them from going through foreclosure. ECDA rehabbed the unit and sold it for $165,000 in April to a household with two adults and three children who had been renting a two bedroom apartment. Building on that success, ECDA then purchased a six unit, two-bedroom apartment building later in the year, using HOME funds for acquisition. Their plans are to reconfigure the apartments into three bedroom units and sell them as affordably priced condominiums ranging from $100 - $150,000 a unit. Reba Place Development Corporation completed rehab of a 90 year old historic landmark rental building, converting it from four rental units to five condominium units. Three of the five units were sold in 2005 to income-eligible buyers at prices of $100,000, $125,000 and $150,000. All three of the existing tenants were able to purchase units, one of which was HOME assisted and two others at moderate prices. Because of the interest expressed in the affordable condo units, Reba Place Development Corporation purchased a 12 unit rental building late in the year in order to convert it to a condominium development affordable to low income households. Prices for the two bedroom units will range from $90,000 to $150,000 for 9 HOME-assisted units. The building, located in a south Evanston CDBG targeted area that has seen considerable condominium conversion and loss of affordable rental units, housed a number of low income tenants. Tenants not wishing to purchase a condominium unit were eligible for Relocation Assistance in conformance with the Uniform Relocation Act. The City pro-actively addressed a troubled single family property that was going through foreclosure when it provided acquisition funding to the Evanston Housing Coalition to purchase it. Located near a prominent intersection in west Evanston, it was the site of numerous police calls and a source of problems in the area. The original intent was to rehabilitate the property and sell it to an income eligible homeowner, but after a closer inspection of the structure, plans were altered. Community Development staff and Evanston Housing Coalition felt that new construction on the site would provide greater value for the subsidy, a better product for purchasers and would make a strong, positive statement about revitalization of the area, leveraging additional reinvestment. After demolishing the property, Evanston Housing Coalition (EHC) worked with a local architect and sought community involvement in the design of two attached single family homes with garages on the 50 – 130' lot. Construction began in March, 2006, and each unit will be sold for $185,000 to households under 80% AMI. EHC also undertook the rehabilitation of some of its single family rental houses which it had managed for the previous 10 years, using HOME and local Mayor's Special Housing Funds for the rehab. EHC's goal for the Section II Page 6 City of Evanston, IL 2005/06 CAPER rehab is to address all current and potential maintenance or repair issues and sell them properties to households at or under 80% of area median income. All of the HOME funded ownership programs include a homebuyer educational component to inform potential buyers about mortgage financing, credit and budgeting issues, and the responsibilities of home ownership. The developers offered workshops and also referred interested people to lender seminars and home purchase workshops held regularly by Housing Opportunity Development Corporation, one of Evanston's Community Housing Development Organizations (CHDO). During the year, Housing Opportunity Development Corporation also worked on developing a comprehensive home ownership program in cooperation with another local non-profit group, the Evanston Community Development Corporation. Addressing the needs of extremely low income families, the City's Families in Transitions Program continued a second year of rental support for a family sponsored by Connections for the Homeless. Rental subsidy from the the Mayor's Special Housing Fund and support services from Connections helped the household successfully address a number of challenges and gave them a solid footing to become self-sufficient. Two other families were awarded rental subsidies in 2005/06 to help them transition to self-sufficiency. The families are sponsored by Connections for the Homeless and the YWCA/Evanston North Shore. Since 1995, the City's Families in Transition program has provided rental subsidies for 24 extremely low income families (under 30% AMI) so that the families did not spend more than 30% of their income for rent and utilities. The subsidy is paid to a non-profit sponsor who works closely with the family and provides community connections and referrals to support services to help them transition from needing housing assistance to being self-sustaining. Interfaith Housing Center of the Northern suburbs received CDBG funding for two programs that help people find or remain in housing they can afford and lower the possibility of losing their home. The Homesharing program matches individuals in need of an affordable place to live with homeowners who had extra room and want the social or financial benefit of renting space. Often the renters assist elderly homeowners with household chores or provide companionship and help enable them to remain in their homes. The agency's Predatory Lending Prevention Program provides education on the characteristics of predatory lending. Such loans can strip an owner's equity in their property, make monthly mortgage payments unaffordable, and can often result in foreclosure and loss of their home. The agency also works with owners who are victims of predatory lending, helping them achieve a solution, which could involve changing the terms of the predatory loan changed, refinancing, taking out a reverse mortgage, or selling the property before foreclosure and finding more affordable housing. Other programs received CDBG funding to continue their efforts that help owners maintain affordable housing. CEDA Neighbors at Work administers the City's Handyman Program which provides simple home maintenance projects for low income senior citizens. In 2005/06, 146 senior households were assisted by the handyman. CEDA also administers the Minor Repair/Painting Assistance program which helps ensure that owners preventing deterioration of property due to lack of funds for minor repairs and painting. Both these programs help senior citizens maintain their homes in a safe and livable condition, allowing them to remain in their homes and maintain their independence for as long as they are able. The Health and Human Services Department of the City administers the Adaptive Devices for Accessibility program which provides vouchers and handyman services to residents with disabilities in order to retrofit houses or apartments and make them accessible. In 2005/06, 39 Evanston residents living with disabilities were assisted through the CDBG funded program. Reduce vacant and boarded properties. Concern about the effects of residential foreclosures and vacant buildings on neighborhoods, particularly in the City's 5th Ward CDBG target area, led to passage of the City's Vacant Building Ordinance in January, 2004. The ordinance requires that vacant buildings be registered with the City, that they be inspected for Code Compliance, and that a plan is submitted for making the building habitable. The total number of vacant buildings has declined slightly in the last year and in fiscal year 2005/06, the City declared 28 vacant buildings. The Vacant Building Ordinance assists in getting code violations corrected and further prevents "flipping" or reselling properties to unsuspecting buyers at a significant profit without improving the building's condition. Preserve existing subsidized rental units and public housing units. Interact with HACC concerning property standard issues and tenant screening to improve the quality of affordable housing Section II Page 7 City of Evanston, IL 2005/06 CAPER Engage in discussions with HACC concerning the disproportionate concentration of Housing Choice Voucher holders in one census tract in South Evanston Acknowledge the opportunity to use Housing Choice Vouchers for ownership and explore appropriate situations The Housing Authority of Cook County manages 248 subsidized housing units in Evanston, and also administers the federal Housing Choice Voucher program which provides rent subsidies individuals holding vouchers in private market apartments. The extremely low income population, with incomes under 30% of median, has historically has been served through these programs. The subsidized units are comprised of 200 units for seniors and disabled persons, located at the Perlman Apartments and the Walchirk Apartments. In addition, HACC manages 45 units of scattered site family housing which consist of 16 two-bedroom units, 23 three-bedroom units, and six four-bedroom units. There were no losses or additions in 2005 to the subsidized units, and the Authority made scheduled renovations to the units. While under renovation, vacancies went unfilled, so that in the fall when repairs were completed, there was a rare availability of units. Housing Choice Voucher holders pay up to 30% of their income for rent, with the Authority making up the difference between the tenant payment and the fair market rent of the specific unit. Voucher holders choose their own apartment, subject to an inspection by the Authority and the landlord's willingness to accept voucher payments. The number of Housing Choice Voucher holders in Evanston has been steadily decreasing during the last few years due to funding issues experienced by the Housing Authority. The number of voucher users in Evanston as of September, 2005 was 792, down from 855 a year prior. This is a decrease from approximately 1100 voucher holders in 2003. The Housing Authority has not added names to its regular waiting list (other than seniors or disabled) in years, and as voucher holders leave the program, they are not being replaced. The distribution of voucher holders within Evanston remains concentrated in two low income census tracts, and Evanston remains the second highest housing market for voucher holders in suburban Cook County. The Housing Authority invited area landlords to a workshop in 2005 to explain the housing choice voucher system, although few landlords new to the program attended. It still remains difficult for renters to find suitable, affordable apartments across all areas of the city. The rental market has been challenging in the last few years, with flat rents and increasing operating costs. Within the last two years, the Authority changed its calculation for rent subsidies, and many of the rent rates in Evanston exceed the amount covered by the Voucher and the amount the household can afford to pay. Given those conditions and other priority demands, the City did not actively work to expand the base of landlords renting to voucher holders. Reba Place Development Corporation explored the possibility of using Housing Choice vouchers for ownership housing in a HOME assisted condominium project under development. None of the existing tenants with Housing Choice Vouchers were interested in purchasing a unit and opted instead to relocate to other rental buildings. However, there is always the possibility that a voucher holder who has completed the Authority's homeownership training program may be able to purchase a unit when the developer markets them to the public after rehabilitation. Health and Human Services staff and members of Evanston's Commission on Aging met with staff of the Housing Authority to discuss safety concerns of seniors at the Walchirk and Perlman apartments. As a result of these discussions and further efforts by legislative officials, the Authority developed a plan to limit these and other buildings throughout Cook County to seniors only. The plan was discussed at public hearings in June, 2006. Continue addressing barriers to affordable housing, which include: o High costs of housing, land, and new construction; o High property taxes; o Violations of the Fair Housing Ordinance; and o Zoning ordinances, property standards, and building codes that may be unreasonable, per periodic review. o Ensure Fair Housing Opportunities are enforced and individuals seeking housing are not discriminated against because of race, color, religion, sex, age, sexual orientation, marital status, disability, familial status or national origin. While City subsidies for development of affordable housing helps make the initial purchase price affordable to low income buyers, ongoing expenses, particularly property taxes, may become a financial burden and Section II Page 8 City of Evanston, IL 2005/06 CAPER become a barrier to remaining in the housing. In addition to high housing prices, Evanston also experiences high property taxes. To address this issue, Planning staff met in 2005 with the Cook County Assessor to discuss the Assessor's Special Assessment Program for Affordable Housing. After discussion and review of the documents governing resale of City-assisted housing, the Assessor's office found that the documents met its guidelines for maintaining long term affordability. Buyers of assisted housing with restrictions placed on the resale prices may apply after purchase for their property to be assessed based on the affordable purchase price rather than the market rate price. The City's Human Relations Commission enforces Evanston's Fair Housing Ordinance and other fair housing laws and works to prevent discrimination in the rental or sale of housing. Human Relations Commission staff also mediate disputes between tenants and landlords and other parties, conducts periodic housing audits to ensure that fair housing opportunities are being provided, and offers educational programs for residents, tenants, landlords and the real estate community. CDBG funding supports positions in the Human Relations Commission (HRC) office and addresses the goal of ensuring a diversity of housing choices in Evanston. During the 2005/06 program year, the Commission investigated Fair Housing complaints, with 20 on-going cases, and one completed case. The Commission also conducted 4 housing audits, conducted fair housing educational and training workshops that reached almost 2,000 persons, held 65 individual landlord training sessions, and processed 1,723 landlord or tenant inquiries or complaints. Explore downpayment and closing cost grants. Explore subsidies for affordable set-aside units in market rate developments. Provide funds and technical assistance for rental development projects that serve low income households Promote a mix of incomes in assisted projects and in market rate development. Because the City cannot control ever increasing private market housing prices nor subsidize enough housing units to meet the demand, other options to enhance affordability were considered. Downpayment and closing cost grants can help reduce mortgages and make monthly payments more affordable for low income purchasers. In 2005 the City explored the availability of downpayment grants to Evanston homebuyers through participation in Illinois Housing Development Association (IHDA) programs. In 2006 the City will use part of its bond volume cap to participate in IHDA First Time Homebuyer Programs which provide low interest mortgage financing, downpayment grants, and mortgage credit certificates providing federal income tax credits. The City is also exploring future use of "American Dream Downpayment Initiative" funds through IHDA's HOME Program. The City referred its Community Housing Development Organizations and other non-profit housing organizations to appropriate training opportunities in the area. A few of the organizations took advantage of training offered by HUD and the Federal Home Loan Bank of Chicago. At meetings of the Planning and Development Committee, City Council members discussed various recommendations of the Housing Commission and staff for an Inclusionary Housing policy that would require certain market rate, private developments to include affordable units. Various criteria and requirements have been discussed, as well as feasibility issues and potential outcomes. How HOME subsidies can be incorporated into inclusionary efforts in order to benefit purchasers or renters and offset costs to developers remains to be explored. Developers of Planned Developments have made voluntary contributions to the City for affordable housing activities in lieu of setting aside affordable units, ranging from $500 to $2,000 per unit. Contributions for five Planned Developments with 485 new units approved or modified in 2005 totaled approximately $660,000. Support housing efforts to address the needs of homeless persons for a variety of housing options and help end chronic homelessness. - Maintain emergency and short term transitional services to prevent first time or recurring homelessness, - Maintain existing transitional housing programs - Maintain permanent supportive housing for mentally ill and disabled homeless individuals. - Expand services where possible to meet identified needs - Develop additional supportive housing for homeless families, find an appropriate housing model for long term homeless families - Improve access by homeless individuals and families to mainstream resources throughout the Continuum of Care, with training for agencies and families. - Expand participation in Homeless Management Information System (HMIS) among agencies to coordinate, track, and analyze services and results. Section II Page 9 City of Evanston, IL 2005/06 CAPER - Foster community understanding of issues relating to homelessness - Work toward regional approaches and solutions to homelessness through participation in the Regional Round Table. The Evanston Alliance on Homelessness meets monthly and coordinates Evanston's Continuum of Care for homeless funding. Sub-committees worked on a variety of issues, such as risk reduction programs, family needs, and how to improve discharge planning from mental health institutions and corrections facilities. Committees often work with other groups on a regional basis. The Alliance recommended funding totaling $655,292 for Supportive Housing Programs through HUD. In report year 2005/06, three new applications were approved. Housing options received a grant for partial funding of its Pathways Transitional Housing Program which provides permanent supportive housing to eight adults with severe and persistent mental illness. Connections for the Homeless received funding for its New Beginnings Transitional Housing Program which provides seven scattered site units of transitional housing plus intensive support services for families headed by older teens or young adults, with a child under the age of six. Connections also received funding to expand its Incline Program, which provides scattered site housing and support services for chronically homeless individuals with disabilities. The following local agencies were listed in the Alliance's application for Supportive Housing Funds as service providers for homeless persons or those at risk of becoming homeless. • BE-HIV • CarePoint Adult, Child & Family Association • Catholic Charities • CEDA/Neighbors at Work • Child Care Network of Evanston • City of Evanston/Health and Human Services • City of Evanston/Mental Health • City of Evanston Police Department • Connections for the Homeless • District 65 Early Childhood Programs • Evanston Community Defender • Evanston Ecumenical Action Council • Evanston Northwestern Health Care • Evanston Township • Evanston Vet Center • Evanston/Skokie Valley Senior Services • Family Focus • First Presbyterian Church • Fresh Base and Fresh Start • Housing Authority of Cook County • Housing Options • IL Dept. of Child and Family Services • IL Dept of Human Services • Infant Toddler Welfare Society of Evanston • Jewish Family Services • Legal Assistance Foundation of Metropolitan Chicago • McGaw YMCA • Metropolitan Family Services • PEER Services • Reba Place Church Dev. Corp. • Resurrection Behavioral Health • Salvation Army • Trilogy • Youth Job Center. • Y.O.U • YWCA Evanston / North Shore These agencies address the causes of individual homelessness, help people become successfully housed, or address current needs of homeless persons or families. Prevention Services include mortgage assistance, rental or utilities assistance, counseling, and advocacy. Support Services include case management, life skills, alcohol & drug abuse treatment, mental heath counseling, healthcare, HIV/AIDS Section II Page 10 City of Evanston, IL 2005/06 CAPER care, education, employment, child care and transportation. Street outreach, a mobile clinic, and legal assistance make up some of the Outreach Services. A number of these organizations received CDBG and/or Emergency Shelter Grants (ESG) to assist their activities. ESG is overseen by the City's Department of Health and Human Services. Four organizations received in ESG funds in 2005/06 to help them address the needs of extremely low income population who were homeless. Connections for the Homeless received ESG funding for its Entry Point program, which provided street outreach services to 293 homeless persons. It also received CDBG funding for Hilda's Place, its 36 bed transitional housing shelter, which provided 12,633 bed nights to 181 homeless persons in the report year. ESG funds helped support the Evanston Ecumenical Action Council's (EEAC) operation of its Hospitality Center which serves persons from the overnight shelter and assists them with employment counseling and job searches. In the 2005/06 program year, CDBG funds were used to partially support EEAC's job counselor's position. The job counselor assisted 143 persons. The organization also established a mentoring program, which matches specially trained persons with clients of the hospitality center. The mentors offer advice and support during a person's job search and follow-up support after employment has been achieved. First Base/Fresh Start, administered by Fisher Memorial A.M.E. Zion Church, provides services for homeless and extremely low income persons, including ex-offenders, who have special difficulty finding employment and housing. They received funding from ESG and CDBG to help with their activities and assisted 668 persons during the Report Year. Many other agencies receiving CDBG assistance address homeless needs. They include CEDA/Neighbors at Work, Legal Assistance Foundation, Youth Job Center, and Interfaith Housing of the North Shore, YWCA, Evanston Community Defender, Skokie Valley Senior Services, and Family Focus. Affordable rental projects developed by Housing Opportunities Development Corporation and Reba Place Development Corporation work with agencies to provide affordable apartments for homeless persons. The City provided $10,000 in matching funds for the Alliance's Homeless Management Information System which helps track clients and allows agencies to coordinate services. Funding came from Evanston's Special Housing Fund. Housing Options provides affordable housing in scattered sites for persons living with mental illness who are able to live independently with counseling and case management assistance. Because they are on fixed incomes or have limited earning potential and often dealing with medication issues, this population faces many challenges in finding affordable housing and is at risk of becoming homeless. Housing Options purchased a 12 unit building in Fiscal Year 2005/06 which will help address the scarcity of affordable options for this vulnerable population. The YWCA - Evanston/Northshore offers domestic violence services, including operation of the Shelter for Battered Women, which provides shelter and counseling to victims of domestic violence, offering an alternative to staying in abusive living situations or being homeless. CDBG funding in FY 2005/06 helped them provide shelter, referrals, counseling, legal advocacy and other services for 436 women and children. Their 24 hour crisis line received 1,389 calls during the year and staff provided shelter clients with 6,912 hours of counseling, advocacy and legal services. II-A-2. Public Services The City's goal for public services is to improve the safety and livability of neighborhoods and to improve the general welfare of low and moderate income residents. In fiscal year 2005/06, the City provided $374,553 in CDBG funds to 22 programs in the Public Service category. The amount is capped by federal regulation at 15% of the annual CDBG program funds. These programs met a majority of the City's Consolidated Goals for Public Services, although some are addressed under other Goal categories. Provide employment, job preparedness training, and job placement for Evanston's low and moderate income residents, including youth ages 14-24. CDBG funding assisted the Youth Job Center of Evanston in providing employment counseling for 1,298 young adults (ages 14-25) and placed 226 young adults in jobs. Of those placements, 183 persons were placed in career track positions. Twenty-three persons completed the center's Strategic Corporation Alliances program, which provides former welfare recipients with training and other job preparedness skills. Section II Page 11 City of Evanston, IL 2005/06 CAPER The City's Summer Youth Employment Program hires high school students (ages 14-18) to perform a variety of jobs during the summer vacation period in both City departments and private employers. Over 400 students visited the Civic Center in April 2005 seeking employment; 100 were hired for the nine week program. Ninety-seven percent of the students hired successfully completed the program. Some students were also hired by the private sector. Students learn important job skills in customer service, importance of showing up for work each day and on time, and appropriate work habits. Students are employed as clerks and public works workers (the green team) who clean alleys, parks and other public spaces. CDBG funds helped pay for the administration of the program and supervision of the youth workers in community jobs. As previously discussed under the goals to combat homelessness, the Evanston Ecumenical Action Council provides (EEAC) employment counseling and training to guests of Hilda's Place transitional shelter at its Hospitality Center. Benefiting from both ESG and CDBG funding, the organization's job counselor assisted 143 persons last year. The organization is an alliance of area religious institutions in the area, and uses scores of community volunteers at its Hospitality Center and it regular soup kitchens, which alternate locations every few years among the member institutions. Provide for the basic needs of low and moderate income residents, including food, shelter, heat, clothing, safety, health care, emergency shelter, and access to legal services, employment, and jobs that provide a living wage. Several public services programs addressed the goal of providing basic needs of low and moderate income persons. Emergency shelter at the YWCA-Evanston/Northshore was provided for 436 women and children (63 Evanston residents) who were affected by domestic violence. The shelter's 24 toll free crisis hotline also handled 1,389 (191 Evanston residents) calls during the year. Connections for the Homeless' Entry Point program, which links chronically homeless individuals, counseled 293 individuals (160 Evanston residents) with the goal of linking them to transitional and permanent housing and assisting them in accessing community resources. Sixty-eight persons were placed in shelter or transitional housing; 155 persons were provided access to community resources and 4 homeless persons with disabilities were provided permanent supportive housing. Entry Point received ESG and CDBG funding to implement these services. Interfaith Housing Center of the North Shore's Homesharing Program facilitated 22 matches in Evanston for persons seeking affordable housing by matching them with housing providers, often senior citizens who needed companionship, additional income or other services. At the close of the 2005/06 program year, thirteen senior citizens were able to remain in their homes due to additional income or assistance provided by being matched with persons seeking affordable housing in Evanston. Free legal services were provided for 605 income eligible residents: the Evanston Community Defender's Office served 75 residents during the year and provided legal representation in criminal court or juvenile administrative hearings. The Defender's Office also provided crisis intervention and social work services for 56 persons who were counseled by the social worker while their cases were pending. The Legal Assistance Foundation of Metropolitan Chicago (LAF) provided free legal services to 549 low and moderate income residents in civil and administrative legal matters. The agency closed 565 cases during the year and 118 residents were referred to pro bono attorneys for assistance with their legal cases. Meals at Home provided 75 very low income Evanston residents with home delivered meals (lunch and dinner) six days a week and holidays. CDBG funds were used to subsidize the cost of the meals for persons who could not afford the $7.50 a day meal charge. Develop or increase recreational programs for low and moderate income residents Provide access to information for all residents by publishing informational materials in Spanish and other languages Cooperate with neighborhood organizations in developing programs which will meet the needs of low income persons. Girl Scouts/Illinois Crossroads Council received CDBG funding for two programs aimed at two different age groups. Both Studio B and Nadie Como Yo/Uniquely Me, a bilingual English/Spanish program, promote reading literacy, self-esteem, and health/life choices among girls in elementary school, middle school and high school. Last year, 936 girls from Evanston schools enrolled in the programs. Open Studio Project enrolled 178 at-risk youth who participated in art and action workshops which offer creative outlets ways for youth to manage their anger and other adolescent emotions. They used CDBG funding to help provide these services. The Junior Wildkits provided scholarship funding to 70 participants in its sports and tutoring program at Evanston schools. Section II Page 12 City of Evanston, IL 2005/06 CAPER The Police Department ran a Neighborhood Youth Outreach program with CDBG funding and made over 1,200 street outreach contacts. The program works with young people who are involved in youth related disturbances or on juvenile probation and helps alleviate neighborhood tension and provide appropriate outlets for youth. Eleven Outreach youth participated in a Youth Empowerment Seminar Series. Outreach workers attended 22 community meetings and provided employment assistance, academic advocacy, home visits, crisis intervention and gang mediation. Provide assistance to Evanston's elderly residents, helping them to obtain access to benefits and services. Ensure that persons and property are protected. The North Shore Senior Center's Evanston/Skokie Valley Services (NSSC) program provided case management services for 890 senior citizens (134 Evanston residents), many of whom were very low income women living alone. The CDBG funded program assisted 560 seniors who were disabled or had special needs. The Evanston senior case manager also provides on-site services at four senior public housing buildings, the Fleetwood/Jourdain senior nutrition site and the Levy (senior) Center. Staff services were also provided to low vision, wellness clubs and facilitated grandparents raising grandchildren groups. NSSC's services enable many of their clients to remain in their homes with the assistance of supportive services. The Police Department's Senior CDBG-funded Crime Prevention Specialist provided information and services to Evanston's senior citizens through educational meetings, distribution of Senior Crime Prevention manuals and File of Life refrigerator magnets containing the individual's emergency medical information. During the 2005/06 program year 4,178 Evanston seniors were provided services by the Senior Crime Prevention Specialist. 159 elder abuse cases were referred to Metropolitan Family Services for investigation and disposition; 468 seniors were referred to other Evanston organizations for assistance and services; 1,257 File of Life cards were distributed; 648 Senior Crime Prevention manuals were distributed; 368 seniors attended educational seminars and community meetings about crime prevention for seniors; and 96 Evanston taxi drivers received sensitivity training on how to deal with older adults. The crime prevention specialist works closely with managers and residents in HUD-assisted buildings, Jacob Blake Manor and Ebenezer Primm Towers, as well as Housing Authority of Cook County buildings at 1900 Sherman and 2300 Noyes Court. Conduct educational programs to prevent foreclosures and predatory lending. Interfaith Housing Center received a 2005/06 CDBG grant to provide educational information about Predatory Lending practices and reached 275 Evanston residents with information. Eighty-one persons attended educational forums and the agency provided consultation to 42 agencies or organizations which served Evanston residents. They also reviewed 18 mortgage loans for predatory lending characteristics. This program was discussed earlier under the Housing goals. Conduct outreach to families. Metropolitan Family Services provided psychiatric services and counseling using CDBG funds to eight parents of children who participated in the agency's family support and counseling program and child & adolescent mental health program. Evanston Shorefront/ the Legacy Project provided educational programs on the history of the north shore's African American population and their contributions to the local community and to society. CDBG funding assisted in the project's outreach efforts and special programs. Coordinate resources. CDBG Administration encompasses a number of tasks, from implementing CDBG funded programs such as Adopt a Fancy Can and Neighborhood Façade Improvement, to providing technical assistance to grantees, to disbursing funds and monitoring program accomplishments, to community development planning. In Report Year 2005/06, $313,393 was allocated for CDBG Administration, in conformance with the 20% cap allowed by program regulations. Help meet day care needs of low and moderate income families Provide programs and services for underserved populations, such as female heads of households with children under age 18. CDBG funds were awarded to Reba Early Learning Center for capital improvements to the day care center which is located in the CDBG Target Area and serves predominantly low income families. The activity is described further in the Public Improvements section. Section II Page 13 City of Evanston, IL 2005/06 CAPER Funding from the Mental Health Board provided funding to support expenses for the Child Care Center of Evanston, Infant Welfare Society of Evanston and the Child Care Network of Evanston. A number of families served by these day care centers are female heads of households with young children. In addition, the mental Health Board awarded grants to Family Focus which provides a Pregnant and Parenting Program for Teens and other programs that assist underserved populations. In conjunction with service providers, coordinate access to programs for the treatment of alcohol and substance abuse. Mental Health Board funding addressed these needs in 2005/06 with funding for PEER Services and Dimensions Mental Illness/Substance Abuse Collaboration. Provide services to residents with disabilities in order to integrate them into the community. Housing Options serves people with chronic mental illness, particularly schizophrenia and bi-polar disorder mental illness by managing scattered site housing and access to support services. Residents are able to live independently without live-in, on-site staff but are supported by Housing Option's team that includes social workers, a nurse, case managers, and psychiatrists. The agency received multi-year funding in Supportive Housing grants as well as funding from the Mental Health Board to carry out their activities in 2005/06. Housing Options purchased a 10 unit building in January, 2006 in order to expand their services, made possible by a $1 million private donation. The Mental Health Board provided funding to other organizations that assist persons with disabilities and help integrate them into the community, such as Center for Independent Futures and SHORE. II-A-3. Public Facilities, Public Improvements, Environment and Community Appearance Public improvements maintain public facilities and infrastructure, thereby providing access and improving the livability of neighborhoods for low and moderate income residents. The improvements undertaken during the report year address the Consolidated Plan goals and objectives relating to transportation, infrastructure, parks, open space, recreation, and public buildings. Ensure that public buildings, parks, and curb cuts are ADA-compliant to provide access for disabled residents. Maintain the street system, including curb and sidewalk replacement, street and alley paving, and alley resurfacing which provide, safe, efficient, and convenient access to homes and business establishments. Ensure that there is sufficient parking in neighborhoods and the downtown business district and that parking lots and structures are maintained in safe condition and have sufficient lighting. The City's Public Works Department used $150,000 in CDBG funds to fund, in part, four alley paving projects in the CDBG Target Area. Public Works also installed or corrected 78 ADA accessible curb ramps where the existing curbs were non- compliant with accessibility standards for persons with disabilities. Locations were identified by monitoring citizen complaints. Deteriorated curbs (2,117 lineal feet) and sidewalks (18,530 square feet) were also replaced along street segments in the CDBG Target Area. CDBG funds were used to pay special assessments totaling $80,000 for 35 income-eligible property owners affected by alley paving projects who would have otherwise been adversely impacted by the cost of the public improvement adjacent to their properties. Annually the City develops a five year Capital Improvement Plan which addresses capital needs of the City. Recent estimates have indicated a $300 million capital need in Evanston. During the past several years staff has undertaken a variety of comprehensive assessments of the following capital needs: the Comprehensive Pavement Study; Parks, Forestry and Recreation Strategic Plan, the analysis of the Civic Center, the Ten Year Sewer Improvement Program, Street Lighting, Chicago Avenue and Howard Street Streetscape, the current development of the Information Services Strategic Plan, as well as the development of the City Strategic Plan. The most recently developed capital plan calls for the following future funding levels: 2007/08 $42 million Section II Page 14 City of Evanston, IL 2005/06 CAPER 2008/09 $23 million 2009/10 $22 million 2010/11 $27 million 2011/12 $22 million The use of CDBG funds for infrastructure in the target area is consistent with the goals of the City's Five Year Capital Improvement Program. Major priorities for the CIP include: sidewalk, alley and road improvements; park rehabilitation, the rehabilitation of City facilities, water and sewer improvements, streetscape enhancement, street light upgrades, neighborhood traffic calming, traffic signals upgrades and beautification. The City's draft Capital Improvement Plan for 2005-2009 was described in Chapter 1, with additional information in Appendix 1.4. Total capital expenditures proposed for 2005-2009 are $98.5 million, and $32.3 million is budgeted for 2005-2006. Improve energy efficiency in recreation and other public buildings, and rehabilitate outdated and inadequate public buildings with special emphasis on making the buildings accessible to physically disabled persons. Strengthen the image of the community by emphasizing appearance and design in redevelopment and rehabilitation of public and private facilities that primarily serve low and moderate income persons. The Weissbourd-Holmes Family Focus Center received $50,000 to repair several problems with its current heating system. These improvements will increase the longevity of the center's two boilers and increase the efficiency of its existing heating system. Family Focus Center is a community focal point, used by residents for community meetings, workshops and family events. It is also home to several community resources including, Family Focus Our Place, The McGaw YMCA's Foster Reading Program, Infant Welfare Teen Baby Nursery, Peer Services, City of Evanston Youth Service Bureau, Connections for the Homeless and several youth sports programs. The population served by these programs comes primarily from low to moderate income households. Hemenway Methodist Church received $50,000 towards the construction of an elevator to assist clients of several community services housed within its building. These programs include a soup kitchen, medical supply closet, food pantry and a bilingual pre-school and day care center. This project will expand the availability of these programs to populations until now hindered from access, specifically the elderly and physically disabled. Reba Place Early Learning Center received $50,000 in CDBG funds to renovate its facilities. Repairs included replacing the flooring through out its facility, replacing single pane windows with energy efficient windows, and updating the building's siding, signage, and sidewalk. Reba Place Early Learning Center is a medium sized child care facility that focuses on serving a diverse population of children and families. The majority of its target population is low-to-moderate income families. McGaw YMCA began work at its SRO residence to replace a 75 year old service elevator that was beyond repair. Over 200 men, most very low income, are provided short and long-term housing at the YMCA. The Community Development Department's Neighborhood Public Improvements program makes funds available for community groups who apply for specific improvement. Provide and maintain recreation buildings, parks, and other open areas to meet the recreational needs of CDBG Target Area residents. Improve the safety of CDBG Target Area playgrounds to meet U.S. Consumer Product Safety Commission standards. Improve the physical appearance of the community, especially in the CDBG Target Area, through landscaping of parks, housing, commercial rehabilitation, and neighborhood cleanup. In the Report Year, $194,821 in CDBG funds were expended in 2005/06 for park, playground and community recreational facility improvement projects located in the CDBG Target Area. Projects include: Ridgeville Park District completed the installation of outdoor lighting in Brummel Park in 2005-06. Residents of all ages use Brummel Park. The park contains a play system, open space for a variety of recreational play, and benches. This project received $16,000 of CDBG funding. The lighting plan enhances the recreational services and safety for the park during peak periods of usage. The lighting plan was also supported by the Evanston Police Department. Section II Page 15 City of Evanston, IL 2005/06 CAPER 2005/06 was the second year of funding for renovations to Mason Park Field House and the surrounding exterior grounds. Improvements to the field house which were completed this year were ADA accessibility improvements to its entryway and washrooms, the installation of central air conditioning and a new heating system, replacement of deteriorated windows and doors, roof repairs, and electrical/lighting improvements. Work also included significant renovations to exterior grounds, including pathway and patio reconstruction, new site furnishings, construction of a park entry feature, basket ball courts, baseball field, lighting system, fencing and landscaping. These facilities are located in Census Tract 8095, which contains a high concentration of low and moderate income persons, minority residents and where approximately 12.6% of the population is below the poverty line. The existing east wall window system of the gymnasium at the Fleetwood-Jourdain Community Center was replaced with an industrial storefront window system in order to ensure safety and provide adequate structural strength to withstand the structural forces of spectators leaning against the windows. This project received $75,000 in CDBG funding in 2005-06. The building contains a variety of recreation/activity rooms and facilities which are used for a variety of programs: martial arts, a senior nutrition program, after-school care, fitness programs, basketball leagues, and arts and crafts. It is located in census tract 8092 which consists of 55% low and moderate income persons in the 2000 Census. The Evanston Community Development Corporation received funding in 2005/06 to establish program plans, undertake fundraising efforts and address community revitalization goals. It was involved in a 27 unit affordable "rent to own" proposal for Darrow Corners that ultimately did not receive Planned Development approval, assisted with promoting and implementing a regular homeownership education program , and assisted the Evanston Housing Coalition in involving local workers in its home ownership development projects. The City's graffiti inspector removed 1,466 incidents of graffiti from public property (i.e., street lights, traffic signals, mailboxes) in the CDBG target area. The City of Evanston's Planning Division facilitated an Adopt a Fancy Can program for residents living in the CDBG target area. The purpose of the program is to discourage littering by the placement of trash receptacles on residential parkways to enhance the appearance of neighborhoods. Thirteen residents adopted new decorative trash receptacles (fancy cans). In adopting a fancy can, the resident enters into an agreement with the City to maintain the fancy can. Along with the fancy can, an initial supply of trash bags is supplied. Since the inception of the Adopt a Fancy Can program in 2002/03, forty-five fancy cans have been adopted by target area residents and purchased with CDBG funds. The amount of litter on parkways throughout the CDBG target area has been markedly decreased by the presence and use of the fancy cans. II-A-5. Economic Development Economic development initiatives strengthen Evanston's economic position, improve revenue streams, contribute to the revitalization of targeted areas, enhance the physical quality and diversity of business services and create new job opportunities, particularly for low and moderate income persons. Neighborhood revitalization (CDBG, TIF, CIP, HOME, sales tax sharing) Downtown development (TIF, bonds, CIP, sales tax sharing) Tax base enhancement strategies (TIF, bonds, sales tax sharing) Job generating business development (industrial & commercial) Housing development (market rate financing, HOME assistance, Mayor's Special Housing Fund) Redevelopment of distressed properties (TIF, sales tax sharing). The Minority, Women & Evanston Business Enterprise Program received CDBG funding for its operations in 2005/06. The primary purpose of the City of Evanston's Minority, Women and Evanston Business Enterprise Program (M/W/EBE) is to identify and promote opportunities for M/W/EB enterprises with an emphasis on City procurement and redevelopment projects. The goal is effectuated by (1) identifying companies that are ready, willing and able to provide commodities, services and construction trades, (2) educating M/W/EB enterprises about the bidding process and (3) enabling and reporting the utilization of M/W/EB enterprises for general and subcontractor participation by requiring 25% M/W/EBE participation on all projects equal to or exceeding $20,000. Section II Page 16 City of Evanston, IL 2005/06 CAPER Evanston's Minority/Women/Evanston Business (M/W/EBE) program assists in capacity building for minority, women and Evanston based businesses by facilitating their inclusion in City-bid projects and purchase of services. The City of Evanston has a goal of 20% M/W/EBE participation in City-sponsored construction projects (25% M/W/EBE participation for large projects). The M/W/EBE program also coordinates other services to minority, women-owned and Evanston based businesses, such as keeping a list of residents interested in construction work and requesting that construction firms awarded City contracts consider hiring residents for their project. This program also assists businesses, which create jobs for low and moderate-income persons, co-sponsors one to two Chicago area vendor fairs a year in collaboration with Northwestern University, Evanston Hospital and Resurrection/St. Francis Health Care, and conducts periodic training for small businesses. Two TIF District projects have a 25% targeted group participation: the Sherman Plaza Redevelopment Project which is well underway, and the Howard/Ridge Redevelopment Project with an imminent start up. M/W/EBE participation to date for the Sherman Plaza Redevelopment Project W.E. O'Neil Construction Company Sherman Plaza Parking Garage Total Hard Costs $34,996,676 (100%) EBE $ 2,587,537 ( 7.4%) WBE 2,272,575 ( 6.5%) MBE 3,579,057 (10.2%) Total $ 8,439,169 (24.1%) Focus Construction Company Sherman Plaza Condominium and Retail Total Hard Costs $67,873,236 (100%) EBE $ 308,009 ( .5%) WBE 695,565 ( 1.0%) MBE 1,360,541 ( 2.0%) Total $ 2,364,115 ( 3.5%) M/W/EBE participation to date for the Howard/Ridge TIF District The Howard/Ridge Redevelopment Project will begin with Howard Street Station Apartments, a 221 unit, 17 story, market-rate apartment building. The total project cost is $43,630,730. The general contractor, Weis Builders sought and received targeted group participation waivers $41,726,560. Projected targeted group participation amounts to $1,904,170 and is categorized as follows: Weis Builders Howard Street Station Apartments Total Hard Costs $43,630,730 EBE $ 284,500 ( 0.7%) WBE 223,454 ( 0.5%) MBE 1,396,216 ( 3.2%) Total $ 1,904,170 ( 4.4%) Weis Builders has agreed to provide 8 Evanston residents employment on this project. Fourth Quarter Purchasing Department Awards: EBE $ 162,781 ( 4.5%) WBE 92,312 ( 2.6%) MBE 109,804 ( 3.0%) Total $ 364,899 (10.1%) Purchasing Awards </= $19,999.99 total $ 3,580,420 4th Quarter Council Awards >/= $20,000 total $3,432,325 *EBE $ 0 ( 0.0%) WBE 257,249 ( 7.5%) MBE 261,124 ( 7.6%) Total $ 518,373 ( 15.1%) *North Shore Towing was awarded a three year towing contract. The contract can be extended twice for a one year term based on performance during the first three year period. Council Awards FY 2005/06 >/= $20,000 total $13,992,731 Section II Page 17 City of Evanston, IL 2005/06 CAPER EBE $ 421,246 ( 3.0%) WBE 1,123,648 ( 8.0%) MBE 1,593,371 (11.4%) Total $ 3,138,265 (22.4%) FY 2005/06 Council awards fell below the 25% M/W/EBE participation goal due to market factors and user department decisions as follows: • Targeted group companies did not have capabilities to bid as a prime contractor. • The prime contractor requested and was granted a waiver of targeted group participation due to the prime's inability to identify ready, willing and able sources to fulfill all or a part of the targeted group goal. • The user department had targeted group participation either reduced or totally waived. Although the City of Evanston has used Tax Increment Financing Districts (TIF) as a strategy for creating development opportunities and increase revenue streams since 1985, the continued use of carefully targeted TIF Districts as a development strategic goal was officially made a goal of the City's HUD Consolidated Plan for 2005/06. The City of Evanston has experienced success during the past sixteen years with attracting multi-million dollar commercial and residential development projects in various parts of the community with Tax Increment Financing Districts. To date, six Tax Increment Financing Districts have been established in Evanston. The TIF Districts are: Downtown II TIF District #1; Southwest TIF District #2; Howard/Hartrey TIF District #3; Washington National TIF District # 4; Howard/Ridge Street TIF District # 5 a special CDBG target area and West Evanston TIF District #6, also a special CDBG target area. Downtown II TIF District #1: Established in 1985 The Downtown II TIF District was approved in 1985. After facilitating the relocation of and thus retaining existing businesses located in this district to other parts of the city development of Church Street Plaza took place between 1999 and2003. This project includes a new 1,400 space municipal garage, a 150 room Hilton Garden Hotel, an eighteen screen cinema new seven story office building, a 207 unit upscale residential tower, a major book store and various retail boutiques and restaurants. The new cinema attracted more than one million visitors in its first year of operation in 2000 and continues to draw visitors from around the area. Several more residential development projects have been completed in the downtown area and other parts of the City. More are slated for completion in various parts of the City during the next few years. Prior to the formation of the TIF District and subsequent development projects, the City was receiving $300,000 per year in real estate property tax revenue from this district. In 2003 the amount the City received in real estate property tax revenue was over $5 million. The 1985 base Equalized Assessed Valuation (EAV) for the properties prior to the Church Street Plaza development projects was $1,835,672. The EAV for fiscal year 2003/4, reporting year 2005, was $82,002,602. While real estate and sales tax revenues have been impressive as a result of this development project, just as important were the retention of over 300 jobs and the creation of approximately 300 new jobs as a result of the improvements made, many of which were filled by low and moderate income residents. The Downtown II TIF district is easily accessible via public transportation, bicycles and walking. Southwest TIF District # 2: Established in 1990 The Southwest TIF District is located in an area that required significant environmental clean-up before redevelopment could proceed. Wards Manufacturing, a long-time Evanston manufacturer, was relocated from its site in the Downtown II TIF district to the Southwest TIF district, thus retaining an important employer in Evanston. The City was able to attract a Sam's Club store to this area, creating 200 jobs. Sam's Club continues to be a prime employer in Evanston and makes a significant contribution to the economic vitality of the City. Sam's Club recently expanded services by adding a gas station, prompting additional employment opportunities. The 1990 base year EAV for properties within the Southwest TIF district was $1,007,606. In fiscal year 2003/4, reporting in 2005, the EAV was $7,620,998. The Southwest TIF District has performed so well that the City may consider an early retirement in 2006 for this district. Howard/Hartrey TIF District # 3: Established in 1992 The establishment of the Howard & Hartrey TIF District #3 was the third TIF established by the City. Anchored by a Jewel/Osco store, other tenants are Best Buy; a World Bank branch; an Office Max and a Section II Page 18 City of Evanston, IL 2005/06 CAPER Target store. Sales tax revenues alone generated from the stores at the Howard/Hartrey Shopping Center represent approximately 25% of the City's total sales tax revenue stream. Over 500 hundred full and part- time job opportunities were created. The 1992 base year EAV for this district was $7,034,353. For fiscal year 2003/4, reporting in 2005, the EAV was $20,252,929. Washington National TIF District #4: Established in 1994, Amended in 1999 After the Washington National Insurance Company headquarters, a long-time Evanston employer, relocated outside the city in the late 1980's, the Washington National TIF District was created to redevelop a key lock in downtown Evanston. A residential/retail project was developed on the site, and includes a residential building, Park Evanston, with 283 rental units, plus street level stores. In 1999 the Washington National TIF District boundaries were extended to accommodate a new multi-million dollar development project for the downtown area bounded by Church Street, Sherman Avenue, Davis Street and Benson. Known as Sherman Plaza, construction is largely completed. Upon completion, Sherman Plaza will consist of a new 1,500 space municipal parking garage, a 212 unit condominium building, a health club and retail spaces. The condominium units are approximately 90% sold. While not known specifically at this time, a significant number of new jobs are expected to be created from this redevelopment project. This area is also conveniently located to public transportation. The base EAV for this district was approximately $25,000,000. In fiscal year 2003/4, reporting in 2005, the EAV has exceeded $45,000,000. Howard Street TIF District # 5: Established in 2004 A fifth TIF District was established in 2004 along Howard Street from Ridge Avenue east to the City limits at the Howard Street CTA station. The Howard Street TIF district encompasses an economically distressed area. Bristol Chicago Development L.L.C. has received approval from the City for construction of a 221 unit rental residential building to be located one block west of the Howard CTA station. Construction is expected to begin in the early summer of 2006. The developer has committed to a minority construction and ancillary services hiring goal of 25%, exceeding the City's posted voluntary goal by 10%. Additionally, eight employment positions with the developers firm are reserved solely for Evanston residents. The City of Chicago's Gateway redevelopment project, located on the south side of Howard Street west of the CTA station, (construction of a new CTA station is planned for Howard Street) adds to the improved economic climate in the Howard Street area, which will be further enhanced with the planned construction of a new CTA station at Howard Street. Based on focus group analysis and historical commercial uses on Howard Street, the overall objective for this new TIF District is to stimulate residential development with commercial/retail at critical intersections. The base EAV for this district is approximately $5.9 million. However, there were no revenues or expenditure data for the 2005 reporting year. West Evanston TIF District #6 Established in 2005: The West Evanston TIF District # 6 was established in the fall of 2005. The largest portion of the City's minority population lives in close proximity to this district's boundaries. Creation of the district was the result of mutual efforts of the City, neighborhood stake holders and organizations; concerned citizens and merchants, both in the neighborhood and throughout the City. Residential dwellings were deliberately excluded from the TIF district boundaries. The land area is comprised primarily of vacant railroad right of way land and vacant or poorly performing commercial/manufacturing space. No significant development has occurred within the boundaries of this district for decades. From the beginning the belief was that the new district would be propelled primarily by smaller residential and residential/mixed use development projects. Since the creation of the district, a forty unit townhouse development project has been approved although a twenty-seven unit affordable housing development project was denied. Additionally, several developers have presented development concepts in various parts of the district and inquiries from interested developers or agents are regularly received. There has been so much interest to the point that the City established a 130 day moratorium on development to enable the development of a comprehensive strategic plan for the district. Concerns ranged from establishing proper zoning; appropriate land massing for particular types of developments; capital improvement needs; appropriate scale and architectural blending, transitional borders with adjoining Section II Page 19 City of Evanston, IL 2005/06 CAPER communities, and green space creation. Other obvious objectives are the creation of jobs; minority/women and Evanston based businesses participation in all aspects of any projects and neighborhood enhancements. The City issued a Request For Qualifications (RFQ) to aid in the district planning. Of the dozen responses received as a result of the RFQ, the City selected four firms as qualified to meet the objectives. The City will shortly provide the firms with a Request for Proposals (RFP) to begin the detailed work required design plans and urban infill objectives. The original four TIF districts have performed at or better than expectations in terms of generating incremental real estate tax revenues, sales tax income stream and creating jobs; increased revenues have not yet been realized from the City's newest TIF district, Howard Street. In addition, financial performance of the four TIF districts has generated sufficient revenue to meet annual debt obligations and to provide Evanston's two school districts with over $600,000 per year in revenue. The school districts utilize these restricted funds to provide job training for targeted residents. It is anticipated that the City will join the school districts in a new Intergovernmental Agreement which will raise the annual amount for the schools to $800,000. The City of Evanston, in developing unique project development agreements, incorporates participation requirements and goals for inclusion of minority, women-owned and Evanston based businesses (M/W/EBE) in development projects. The City has established a mandatory 25% participation rate for M/W/EBE's and a voluntary 15% goal for hiring Evanston residents to work on development projects. Other Economic Development Efforts In keeping with the HUD Consolidated Plan Goals, the City has employed sales tax revenue sharing programs with limited life terms, to assist developers in building and/or rejuvenating riskier shopping centers or commercial buildings that are not located in TIF districts. Using this revenue sharing program, the City has enjoyed a successful collaboration with Home Depot in its shopping center development project, located in southwest Evanston at Oakton Street east of McCormick Boulevard. The shopping center's retail establishments are providing substantial sales tax revenues as well as creating employment for more than 350 people. The tax revenue sharing agreement was also used for the Evanston Plaza shopping center located at Dempster and Dodge in west Evanston. This shopping center had been largely vacant and had been deteriorating for several years. With City of Evanston assistance, the developer was able to retain the Frank's Nursery & Crafts store, give the shopping center a facelift, and attract a new Dominick's Food store, an A.J Wright family store, several restaurants and new commercial spaces for other retailers. Sales tax revenues have increased significantly and 100 or more jobs have been generated. Unfortunately the Frank's Nursery and Craft chain closed its doors and the developer has struggled in attracting a similar co-anchor for the shopping center. The developer is currently considering other emerging development opportunities for the vacant retail space. The renamed Main Street Marketplace shopping center, adjacent to the Southwest TIF District #2, has provided an economic boost to this west Evanston shopping area. The City entered into a sales tax revenue sharing program with a development firm and renovation of the shopping center was completed in 2005. The developer was able to retain the Marshall's store, saving 50 jobs, attract a Food 4 Less food store which opened in 2004 and generated 150 new jobs. Fifteen new residential developments projects have been completed in downtown Evanston. Downtown hotel space has also been improved and the number of rooms increased. The historic Orrington Hotel recently went through a $30 million renovation by the new owners, and approximately 200 jobs were created to staff the refurbished hotel. A new Hilton Garden Inn was built as part of the Church Street Plaza project, and the Best Western hotel, also located in downtown Evanston, has been refurbished. The City of Evanston also recognizes the need to support small businesses located in neighborhood business districts and this support is also a goal in the Consolidated Plan. The City sponsors programs such as the Neighborhood Business District Improvement Program and the CDBG-funded Neighborhood Storefront Improvement Program. These programs are designed to attract and retain commercial businesses to the neighborhood business districts and to assist business district organizations in their development goals. Section II Page 20 City of Evanston, IL 2005/06 CAPER The Storefront Improvement Program provides rebates up to 50% of the cost of approved façade renovation projects. Renaissance Realty, a small, Evanston owned business, received a grant of $20,000 from the program. They used the funds last year for windows in the four storefront structure which was renovated at a cost of approximately $500,000 Another Evanston based small developer, Asas/Spatz Properties, received a $10,000 grant from the Storefront Improvement Program in 2005, representing 50% of the cost for particular façade renovation work. In the past, this development firm has rehabbed several vacant or under- utilized buildings in Evanston which have resulted in unique and attractive renovated projects in the context of industrial settings. Historically, Evanston has maintained several thriving neighborhood business districts. These districts have strong local business/community associations, which strive to promote economic development while preserving the unique character of each area. Many of the neighborhood business districts serve low/moderate areas of the City. The Economic Development Committee, consisting of five aldermen and four citizen members, administers the Neighborhood Business District Improvement Program which is funded by the City's hotel tax. Through the program, funds are authorized for distribution to different neighborhood associations. The grants ranged from $5,000 to $15,000 and the funds have been used for such projects as transportation studies, holiday lighting, brochures, sidewalk repairs, installation of lamp- post banners, benches, banners, planters and curbside trash can containers. In similar fashion the City supports the Façade Improvement Program through its CDBG program. Rebates of up to 50% of the cost of renovation of the storefront, or $10,000 per storefront, are offered for approved projects in target area neighborhood business districts. The intent of the program is to restore storefronts, as much as possible and practicable, to their original appearance, while at the same time enhancing the overall appearance of the storefront. These projects are beneficial not only for the business owner, but also address code compliance issues and increase the attractiveness of the business district. In 2004/05, $45,000 in CDBG funds was expended for three projects. An additional $14,000 in both economic development and CDBG funds has been obligated toward one façade project. A companion program, funded with City economic development funds, is offered to commercial business owners in neighborhood business districts located outside the CDBG target area. A major neighborhood planning effort in the City's west Side area has included a substantial economic development component. While people often debate the most appropriate revitalization strategy, there has been a significant increase in business and resident participation in planning for redevelopment in this area. Two new locally based business associations have emerged in this area over the past two years: the Dr. Hill Association and the E-Town Development Corporation. The Westside Citizens District Council has acquired 1817 Church Street, formerly owned by the City. The District Council is in the planning process to renovate the building in order to establish a Black American Heritage House and Technological Resource Center. It is envisioned that renovation of this historic three story building will help to anchor redevelopment in the Church/Dodge neighborhood business district. Private investment has increased in the west Evanston Ashland Avenue corridor of this neighborhood, including three projects which have converted vacant warehouses into live/work space and new job generating commercial space. The Evanston Community Development Association received CDBG funding in the report year to carry out economic development and neighborhood revitalization planning activities in the west side area. The organization collaborated with other agencies to offer a regular home purchase education series. They worked with a non-profit housing developer on plans for an affordable rent-to-own project, and met with local organizations and agencies on a variety of issues such as local employment and training opportunities and affordable housing. II-B. Actions Taken to Affirmatively Further Fair Housing The City of Evanston has a Fair Housing Ordinance and is committed to promoting fair housing choice for all persons and to fostering compliance with the non-discriminatory provisions of its Fair Housing Ordinance. Evanston's Fair Housing ordinance goes beyond most suburban laws because it bans discrimination based on sexual orientation. The City's Human Relations Commission enforces the City's Fair Housing Ordinance, as well as the Fair Employment Practices Ordinance and the Landlord and Tenant Ordinance. The goal of the Human Relations Commission is to ensure that all Evanston residents and workers, and everyone who desires to live or work in Evanston, is afforded an opportunity to grow and participate in all levels of the local society, regardless of race, color, creed, national origin, sexual orientation and economic and educational levels/groups. The Human Relations Commission planned to update the City's fair housing brochure and publish it in Spanish. The Commission also participates or coordinates a variety of other activities, such as community Section II Page 21 City of Evanston, IL 2005/06 CAPER wide dialogues on race relations, civility, violence prevention, crime prevention and accessibility. The Human Relations Commission collects and distributes donations at Christmas time to needy families, and it sponsors the annual CommUNITY picnic in collaboration with the Evanston Police Department. Interfaith Housing Center of the Northern Suburbs received funds through the HUD's Fair Housing Initiative Program for an 18-month private enforcement initiative, with Evanston included in their program area. Human Relations Commission staff respond to inquiries and concerns about property rental or purchase. It processes discrimination charges and also provides mediation services through the Alternative Dispute Resolution Program. In FY 2005/06 the Human Relations staff responded to 1,723 landlord/tenant questions and investigated 210fair housing complaints. Staff also performed four housing audits to test compliance with fair housing laws. The department takes a proactive approach to alleviating complaints, disputes and discrimination. It sponsors periodic education seminars throughout the year for landlords and tenants, realtors and community II-C. Affordable Housing Activities The City supports Community Housing Development Organizations, other non-profit organizations and private developers that work to provide affordable housing. The City provided funding for six HOME assisted affordable housing projects in 2005/06 which addressed the goals of creating and maintaining affordable housing. Two CHDO's, Reba Place Development Corporation, and Evanston Housing Corporation, completed ownership project in the Report Year, as well as a private developer, Econ Housing Corporation, and another non-profit organization, Evanston Community Development Association. The projects are described in more detail in the HOME Program narrative in Section III. The projects resulted in three new condo homeowners at 836-838 Elmwood, one town home owner at 1720 McDaniel, one single family owner at 1735 Brown, and three town home owners at 1734-38 Darrow. Affordable projects in development during the report year include nine affordable condominium units at 602 Mulford, one single family rehab at 1933 Dodge and construction of two town homes at 1710-12 Dodge. The City provided local funding to purchase the property at the sight of the new construction, with the intent of rehabilitating it for sale to income eligible homeowners. After Evanston Housing Coalition purchased the property, however, it was decided to demolish the existing dilapidated building and build two new units as-of- right on the lot. Another CHDO, Housing Opportunity Development Corporation (HODC) joined with the Evanston Community Development Corporation on a proposal for 27 units of affordable rental housing in the Fifth Ward, and HODC was awarded a tax credit allocation from IHDA that would provide $6 million in equity for construction funding. After going through community meetings and the Plan Commission and Planning and Development Committee process, HODC's proposed Planned Development was denied by the City Council in Program Year 2006/07 because of vocal neighborhood opposition to rental development at the chosen location. Other affordable housing efforts included a new Employer Assisted Housing Program for City of Evanston employees, which expanded on a pilot program. Two employees obtained downpayment grants through the program for the purchase of a home in Evanston in April, 2005. In November, 2006, the City Council approved a new program that would provide downpayment grants from the City's Special Housing Fund for up to six employees, along with homeownership education. The program was revised to increase the income caps to 100% of median and increase the City's grant amount from $5,000 to $8,000. The program was rolled out at the beginning of Fiscal Year 2006/07. The Families in Transition program provided rental subsidy funding to a family sponsored by Connections for the Homeless. Two new FIT subsidies were awarded to very low income families sponsored by Connections for the Homeless and the YWCA/Evanston North Shore. The Community Development Rehab Programs described in the Housing Goals section contribute to affordable housing efforts by helping to maintain decent rental buildings and helping owners take care of maintenance issues. The CDBG Revolving Loan Rehabilitation programs managed by the Community Development Department continued to provide loans to low income single family owners and multi-family rental buildings with low income tenants. The programs are described in more detail in Section II-A. Property taxes play a large role in housing affordability, and in 2005 the City worked with the Cook County Assessor's Office on getting assessments based on affordable purchase prices of City assisted housing rather than market rate prices. Section II Page 22 City of Evanston, IL 2005/06 CAPER Affordable Housing Goals and Accomplishments Number of Housing Units Program Five Year Goals 2005-2009 Units Achieved HUD Consolidated Plan Report Year 2005/066 Single Family 19 CDBG Single Family Rehab 16 11 HOME Funded Single Family 0 Rehab HOME Funded Single Family 7 Purchase MSHF Single Family Rehab or 1 Purchase Multi-Family 28 9 CDBG Funded Multi-Family 12 9 Rehab/Acquisition HOME Funded Multi-Family 0 Rehab/Acquisition MSHF Rehab/Acquisition 0 Other Category 12 Evanston Housing Corporation First Time Home Buyer Program 3 Self-Help Paint Program 20 6 Families in Transition 3 TOTAL 40 II-D. Continuum of Care Activities The Evanston Alliance on Homelessness oversees the Continuum of Care for persons who are homeless. The Alliance prepares the annual Continuum of Care Plan, reviews and ranks applications for state and federal homeless assistance funds, and submits an annual Plan to HUD. Monthly meetings of the Alliance are attended by community volunteers, City staff, service agencies, housing developers, and advocacy groups, among others. The Alliance is also a member of the Regional Roundtable on Homelessness, consisting of the City of Evanston, the City of Chicago, and the Counties of Cook, DuPage, Kane, Lake, McHenry, Will and Winnebago/Boone Counties. In 2005, the Alliance secured $655,293 from HUD through the SuperNOFA application for 3 projects. The housing and support services provided by agencies in the City's Continuum of Care are described in Section II-A. II-E. Other actions indicated in the strategic and action plans. As mentioned earlier, efforts continued in 2005/06 to establish an Inclusionary Housing program as recommended by the Housing Commission. The program would involve private developers in expanding the supply of affordable housing units. The City continues to implement HUD's lead based paint hazard reduction strategies and received another Lead-Based Paint Hazard Control Grant from Cook County. Funds have been used for lead hazard mitigation projects, and offset the additional costs incurred by the use of licensed lead contractors and remediation or lead-safe work. The Rehab Specialist in the Housing Rehabilitation Division, a licensed Illinois Lead Risk Assessor, is required to perform Lead Risk Assessments on most projects funded by a CDBG rehab loan prior to loan approval. If it is determined that there is lead-based paint in the work area and it would be disturbed by the proposed rehab work, the cost of lead abatement is included in the rehab loan. Projects in homes occupied by the disabled or solely by the elderly do not need to be assessed, but require lead safe work practices by trained contractors. Section II Page 23 City of Evanston, IL 2005/06 CAPER Housing Choice vouchers enable lower income families to find affordable housing in Evanston and help the City to maintain its economic diversity. The Housing Authority of the County of Cook (HACC) administers the Housing Choice Voucher program for suburban Cook County and operates scattered site and senior housing in Evanston. As of September, 2005, 792 households in Evanston used Housing Choice Vouchers through HACC to subsidize their rent, approximately 200 less than the number three years prior. Due to budget reductions, the Housing Authority is not adding names to the waiting list other than for disabled persons or seniors. II-F. Leveraging Resources The City of Evanston's numerous community development goals and priority needs require the City to be successful in leveraging private and public investment beyond the resources provided by HUD and the City. Evanston as a diverse community has a history of successful private/public partnership to achieve public objectives that strive to enhance the city. Evanston is able to leverage the HUD funds it receives with funding from a variety of federal, state, local and private resources. The City also supports and encourages many public and private initiatives which address the needs of low and moderate income residents. In the report year, the following programs were known to be used for community development efforts: Other Federal Programs - Supportive Housing Program (HUD), Shelter Plus Care (HUD), Supportive Housing for Persons with Disabilities (Section 811 - HUD), - Public Housing and Housing Choice Vouchers (HUD), (HUD), the Federal Home Loan Bank Affordable Housing Program, Low Income Home Energy Assistance Program (LIHEAP). State Programs – Illinois Department of Family Services Private Resources - Community development corporations (Housing Opportunities Development Corporation, Reba Place Development Corporation, Evanston Housing Coalition), private banks, notably First Bank and Trust of Evanston, developers, investors and businesses. Local Programs - Evanston Housing Corporation's First Time Homebuyers Program, Families in Transition Program, Emergency Assistance Services, General Assistance Program, Police Homebuyer Program, Mayor's Special Housing Fund. For a description of these programs, please refer to Chapter V of the City's Consolidated Plan or contact City staff. Investment of Evanston's CDBG, HOME and ESG funds is matched with other public and private funding resources. ESG grants are matched dollar for dollar from other sources. HOME funds must have a 20% cumulative match requirement which has been exceeded. Individual property owner investment has been stimulated by the investment of public funds in many cases. This is especially true of Clyde Avenue near Howard Street, where the use of HOME funds was successful in rehabilitating two problematic properties which led to private investment in several larger buildings that have improved substantially. Planned developments have recently included developer contributions for affordable housing as a result of ongoing discussion concerning an inclusionary housing program that would require on-site affordable units in market rate developments, or contributions in lieu. II-G. Citizen Comments Comments made at theJuly 20, 2006 Public Hearing on this report are attached. II-H. Self-Evaluation The development of the 2004-2009 Consolidated Plan in 2004 was an opportunity to evaluate priority needs and identify gaps in addressing these needs. The five year goals reflect ambitious strategic direction to address these needs, beginning with the 2005-06 Fiscal Year. The City of Evanston is committed to providing programs and services which improve the quality of life for its residents and address the City's community development objectives. Attached to this document are reports, generated by HUD's IDIS (Integrated Disbursement Information System), which also describe the City's accomplishments utilizing FY 2005/06 CDBG, HOME, and ESG funds. Section II Page 24 City of Evanston, IL 2005/06 CAPER The City of Evanston obligates all of its annual CDBG and ESG funds to specific programs/projects by the beginning of its program year (March 1st.). Together with program income and reallocated funds from completed prior years' activities, Evanston was able to fund 39 CDBGprojects/programs and three administrative/planning activities for the 2005/06. Evanston also awarded ESG grants totaling $88,964 to three not-for-profit agencies providing services for homeless persons. HOME funds are obligated as applications are approved and a portion is reserved for CHDOs. The City disburses its HOME funds as loans for rental projects, and in various ways for home ownership projects depending on the need. Construction or rehab funds are either paid back in full or in part or are grants that allow the developer to reduce the purchase price below the market value and or the development costs. Funds are obligated when specific proposals are identified and approved and the City Council. All programs/activities are first reviewed by City staff, a Loan Committee, and the Evanston Housing Commission to ensure that they are feasible, address Evanston's community development objectives and are consistent with the priority needs identified in the City's Consolidated Plan. Both the Evanston Housing Commission and the City Council's Planning and Development Committee recommend approval of HOME loans prior to City Council approval. The City of Evanston has three certified CHDO's (community housing development organizations) which have developed most of the HOME-funded affordable projects. They are the Evanston Housing Coalition, Reba Place Development Corporation and Housing Opportunity Development Corporation. A fourth organization, the Evanston Community Land Trust, has applied for CHDO approval. The City has also been meeting with a new housing development organization, ECDA (Evanston Housing Development Association) and is in the process of identifying its first project. Staff who administer the CDBG, HOME and ESG programs work closely with City departments and Evanston service providers to ensure that HUD funds are spent as expeditiously as possible and programmatic objectives are met. The CDBG program continues to remain within HUD's timeliness guideline, which is that no more than 1.5 times the annual grant allocation remains unexpended at the close of the program year. The City met its timliness deadlines for its HOME allocations but continues to explore other affordable housing projects for use of its HOME funds with its three CHDO's and other housing developers. The City's HOME program is under the direction of the Evanston Housing Commission and ESG grants and program oversight are performed by the City Council's Human Services Committee. The Consolidated Plan was approved by HUD in March 2005. It is not possible to address every one of Evanston's community development objectives and priority needs in any given year and solely with CDBG, HOME and ESG funds. However, it is through the leveraging of its HUD-provided federal funds with other public and private investment that Evanston continues to maintain its housing stock, provide job opportunities for low and moderate income residents and be a very desirable place where persons at many income levels want to live, work and enjoy leisure activities. Because the City of Evanston takes the initiative by utilizing its HUD funding to address its priority community development needs, other federal, public and private funders have and continue to be stimulated to invest in programs and activities which benefit Evanston residents, particularly low and moderate income residents. Three objectives for the next fiscal year have been developed based on evaluation of performance in 2005- 06. They are: (1) Improve the timeliness and completeness of IDIS data entry and reports, through additional training of primary staff, cross training of back up staff and monitoring of IDIS timeliness by management staff. Staff received IDIS Training and technical assistance and have corrected the majority of previously identified data problems. (2) Create more affordable housing opportunities throughout the City and especially in West Evanston, consistent with the Consolidated Plan. (3) With input from Housing Commission, develop a request for proposals for HOME funded programs or projects, such as a downpayment program or program that can be used in conjunction with new construction private developments, and a mixed income rental project in a non-CDBG target area. Section II Page 25 City of Evanston, IL 2005/06 CAPER III. NARRATIVE STATEMENTS FOR CDBG ENTITLEMENT FUNDS III-A. Assessment of the relationship of the use of CDBG funds to the priorities and specific objectives identified in the Consolidated Plan All FY 2005/06 CDBG funds provided to Evanston were obligated to programs and activities addressing the City's priority community development objectives identified in the 2005-2009 HUD Consolidated Plans. At the close of the 2005/06 program year, $2,975,197 in CDBG funds had been expended for activities benefiting primarily low and moderate income persons. While most public service projects were completed within the 2005/06 program year, some public improvement projects remain on-going. The CDBG-funded activities primarily benefited low and moderate income persons, with over 50% of CDBG funds providing a direct benefit. Expenditure of CDBG Funds in FY 2005/06 Priority Need Amount Obligated/Expended Percent of Total Affordable Housing & $1,139,200 41.86 Homelessness Public Services 370,553 13.61 Public Facility & Improvements 584,015 21.46 Open Space, Parks, Recreation 216,710 7.96 Economic Development 97,900 3.6 Administration of CDBG Program 313,393 11.51 (includes neighborhood planning) TOTAL $2,721,771 100% CDBG funds were expended or committed for the following programs in Fiscal Year 2005/06. They addressed goals identified in the Consolidated Plan as detailed in Section II. Funds were awarded in 2005/06 unless otherwise indicated. ORGANIZATION / AGENCY PROGRAM AWARD EXPENDED PUBLIC SERVICES $370,550 Expended in 2005/06 Connections For The Homeless Entry Point $12,401 $12,401 Evanston Community Defender Evanston Community Defender's Office 45,304 45,304 Evanston Ecumenical Action Council Hospitality Center For The Homeless 3,819 3,819 Evanston Jr. Wildkits Scholarship And Training Program 2,391 2,391 Fisher Memorial AME Zion Church First Base - Homeless Program 4,764 4,764 Girl Scouts/Il. Crossroads Council, Studio B & Nadie Como Yo!/Uniquely Me! 4,300 4,300 Interfaith Housing Center Homesharing Program 13,365 13,365 Interfaith Housing Center Predatory Lending Prevention 4,764 4,764 Legal Assistance Foundation/Chicago Evanston Legal Services 9,546 8,709 Meals At Home Food Delivery To Seniors And Disabled 9,546 9,546 Metropolitan Family Services Psychiatric Services For Parents 4,764 4,764 North Shore Senior Center Evanston/Skokie Valley Senior Services 23,840 23,840 Open Studio Project Art & Action Program For At Risk Youth 4,764 4,764 Shorefront NFP The Legacy Project 9,546 9,546 Youth Job Center Of Evanston Job Readiness, Placement And Follow-Up 67,980 67,980 YWCA-Evanston/Northshore Domestic Violence Services 36,703 36,703 City - Community Development Graffiti Removal Program 28,521 28,521 City - Community Dev/Planning Adopt A Fancy Can 4,764 3,989 City - Police Department Senior Crime Prevention Program 19,093 19,093 City - Police Department Neighborhood Youth Services 14,310 14,310 City - Human Relations Commission Summer Youth Employment Administration 47,677 47,677 Section III Page 26 City of Evanston, IL 2005/06 CAPER ORGANIZATION / AGENCY PROGRAM AWARD EXPENDED AFFORDABLE HOUSING AND 1,139,200 Expended in 2005/06 HOMELESSNESS City - Community Development Administration 106,000 105,996 City – Community Development Housing Code Compliance 248,000 240,566 City – Community Development Housing Rehab Administration 238,000 237,991 CD Loan Programs Single Family & Multi Family Rehab Prgm Incm 286,598 City – Health/Human Services Handyman Program 12,000 8,352 CEDA/Neighbors at Work Minor Repairs/Painting Assistance 163,000 148,000 City – Human Relations Commission Housing Advocacy Program 84,866 84,864 Prior Years Allocations City – Health /Human Services Adaptive Devices 6,383 City – Facilities Management Boiler Building Apartment 14,558 City – Community Development Demolition – Vacant Lot 5,892 PUBLIC IMPROVEMENTS 8 00,725Expended in 2005/06 City – Community Development Neighborhood Public Improvements 25,000 317 City – Public Works Alley Improvement Program 150,000 149,860 City – Public Works Block Curb/Sidewalk Program 75,000 65,071 City- Public Works Special Assessment Assistance 80,000 67,302 City –Parks/Forestry & Recreation Fleetwood Jourdaine Window Replacement 75,000 47,904 City – Parks/Forestry & Recreation Mason Park 360,000 64,791 Ridgeville Park District Brummel Park Lighting 16,000 16,000 Hemenway Community Services 50,000 53,000 Elevator Reba Early Learning 50,000 50,000 McGaw YMCA Eelevator 50,000 12,115 Family Focus 50,000 49,997 Prior Years Allocations City – Public Works Accessible curb 64,612 City – Public Works Street light Upgrade 41,853 City – Community Development S Evanston Neighborhood Security 3,434 City – Police Howard St, Enhancement, Outpost 2,700 Evanston Westside Citizen's District Black American Heritage Center 24,066 Council Reba Park 450 Fleetwood Jourdain 85,656 Fleetwood Jourdain East Wall 1,592 ECONOMIC DEVELOPMENT 97, 900 Expended in 2005/06 City – Community Development Neighborhood Storefront Improvement 20,000 0 Evanston Community Devel. Corp. Neighborhood Revitalization and Planning 25,000 25,000 City – Finance Department Minority, Women, Evanston Business 72,900 72,900 ADMINISTRATION OF CDBG $313,393 expended in 2005/06 313,393 PROGRAM City - Community Development - CDBG Administration 313,393 313,393 Planning III-B. Nature of and reasons for any changes in program objectives and indications of how the jurisdiction would change its programs as a result of its experiences Evanston's priority needs and community development strategies were identified in the City's 2005-2009 HUD Consolidated Plan. Priority needs are reviewed by the City on a regular basis through citizen input at City boards and commissions, such as through the CDBG program's annual Needs Hearing. The City of Evanston believes it has fully utilized its HUD-provided funding to address as broad a range of community development objectives as possible. The City of Evanston plans to continue to support a wide range of programs and activities which will address its community development objectives and provide services, affordable housing and economic development opportunities for low and moderate income persons. There were no changes in Evanston's program objectives in FY 2005/06 from the objectives set forth in the City's One Year Action Plan for FY 2005/06. In terms of on-going programs, the loan limits for the CD Revolving Loan Rehabilitation Programs were increased in the Report Year to accommodate the increased Section III Page 27 City of Evanston, IL 2005/06 CAPER costs for repair work to bring the properties up to code. Housing programs may require enhanced marketing in the next program year to ensure more people are aware of the various products. III-C. Completion of Consolidated Plan Actions; Assessment of the grantee's efforts in carrying out the planned actions described in its action plan as part of the grantee's certification that it is following a current HUD-approved Consolidated Plan The City of Evanston has fully utilized its allocation of FY 2005/06 CDBG and ESG funds. All CDBG and ESG funds were obligated to community development activities prior to the start of the 2005/06 program year (March 1, 2004). As of February 28, 2005, the City has utilized 100% of its 2005/06 HUD funding for programs and activities which address the priority needs identified in the 2000-2004 HUD Consolidated Plan. A total of $2,721,771 was expended at the end of the 2005/06 program year (February 28, 2006). CDBG funds are leveraged with other public and private resources by grant/loan recipients to carry out programs and activities. City departments which receive HUD funding for their projects also leverage those funds with other city, state funds and grant sources. All applications for Evanston's HUD funds are carefully reviewed by the City to ensure that the proposed projects are consistent with the priority needs and community development objectives identified in the City's Consolidated Plan. The City also reviews and certifies all applications for other HUD programs (i.e., SuperNOFA applications) for consistency with the City's Consolidated Plan community development objectives. III-D. National Objectives All the programs met one of the three national objectives which are to provide decent housing, provide a suitable living environment and expand economic opportunities. III-E. Displacement of persons; Activities involving acquisition, rehabilitation or demolition of occupied real property The City of Evanston has a Residential Anti-displacement and Relocation Assistance Plan, which it implements in the event there is displacement or relocation of residents because of activities carried out with HUD funds. City staff closely monitors projects which could potentially involve relocation of residents to ensure that the Residential Anti-displacement and Relocation Assistance Plan and Uniform Relocation Act procedures are followed. If displacement or relocation is a possibility, information about the City's Residential Anti-displacement and Relocation Assistance Plan are distributed to the persons affected and relocation assistance is provided, as needed. The City has never had to implement this plan for activities funded by the CDBG or ESG programs. Relocation assistance was provided to three residential tenants (temporary relocation) and one business (permanent displacement), who were relocated as the result of Reba Place Development Corporation's rehab of a building at 806 Elmwood, HOME assisted project. III-F. Economic development activities with unfilled jobs for low income persons There were no economic development activities which offered jobs for low income persons. The City of Evanston Business Development (M/W/EBE) program assists in capacity building for minority, women and Evanston based businesses by facilitating their inclusion in City-sponsored projects. This is done through participation, along with other Evanston employers (Evanston Hospital, Resurrection/St. Francis Hospital, Northwestern University, etc.) in vendor fairs, which give minority, women-owned and Evanston businesses an opportunity to learn about upcoming construction projects and other purchases. The Minority Business Coordinator also keeps a list of residents interested in construction work and requests that construction firms which are awarded City contracts consider hiring residents for their project. III-G. Low and Moderate Income Benefit; Activities which serve a limited clientele not falling within one of the categories of presumed limited clientele low and moderate income benefit Several programs were funded under the presumed limited clientele low and moderate income benefit guidelines. Presumed benefit CDBG projects included the YWCA-Evanston/Northshore's Domestic violence services, North Shore Senior Center's Evanston/Skokie Valley Services, Connections for the Homeless' Section III Page 28 City of Evanston, IL 2005/06 CAPER Entry Point program, the Evanston Ecumenical Action Council's Hospitality Center for the Homeless, and First Base/Fisher Memorial A.M.E. Church's First Base – Homeless Program III-H. Program Income The CDBG funded Revolving Loan Fund provides rehab loans to low and moderate income owners of single and multi-family properties. In 2005/06, the City received $240,452 in loan repayments. In the 2005/06 program year $213,100 in housing rehab loans were approved and disbursed. III-I. Completed rehabilitation program projects In FY 2005/06 rehabilitation was completed on twelve single family housing units, which used approximately $280,000 in funding through the City's Single Family Rehab Program. Eight owners were very low income, four were low income, five were female heads of household, eight were Black/African American and four were White. III-J. Neighborhood revitalization strategy The City of Evanston does not currently have a HUD approved neighborhood revitalization strategy. However, the City has and continues to pursue neighborhood planning and revitalization activities in three locations within the City. Two of these, West Evanston and Southeast Evanston/Howard Street, are wholly located within the CDBG Target Area. In the third, the Chicago Avenue corridor, the City is working to strengthen the tax base and expand economic activities. In addition, the Evanston City Council has recently completed and adopted a new strategic plan which created as a goal, "Define Evanston neighborhoods and ensure that they are safe, clean, and attractive." This goal and its related strategies support and complement the City's ongoing efforts within the CDBG Target Area. West Evanston Neighborhood Planning A three-year, City initiated neighborhood planning process for West Evanston successfully concluded in 2004. This neighborhood study area is a sizeable portion of western Evanston, including portions of both th nd its 5 and 2 Wards. It is entirely located within the CDBG Target Area. The planning process was guided by three stated principles: To understand problems/issues in the study area from the standpoint of all stakeholders; To improve the quality of life within the neighborhood by envisioning and creating a more vibrant area for families, individuals and local businesses; and To foster an environment where a diversity of people, interests and activities can coexist and feel a mutual sense of pride. The planning process resulted in the Canal-Green Bay road/Ridge Avenue-Church Street Study Area Planning Report. This neighborhood plan describes and prioritizes community goals, objectives and action recommendations organized within seven issue areas: Economic Development; Urban Design, Community Character, and Zoning; Public Infrastructure, Services, Streets and Transportation; Housing; Public Safety and Community Cohesion; and Youth. The report and its recommendations were approved by the Evanston Plan Commission in 2004 and adopted by the City Council in September 2005. In 2005-06 the City worked with local elected officials, community organizations, residents and the development community to attract the redevelopment envisioned by the Plan within these West Evanston neighborhoods. City staff assisted the Economic Development Commission and the City Council to establish the West Evanston TIF as one means of assisting worthy private developments which contribute economic activity and jobs to the area. TIF monies are also earmarked for local public improvements – including streetscapes and neighborhood beautification projects. Much of the area consists of vacant or underutilized properties, which are former industrial and commercial sites, or abandoned railroad right-of-way. Since the establishment of the TIF, several of these have been acquired for redevelopment and there has been an observed increase in real estate transactions within the area. Given the area's obsolete industrial zoning designation and the probability of new development proposals, the area is in need of updated physical planning, design studies and land use regulations. During 2006-07, the City will seek the professional physical planning and urban design services necessary to implement the goals of both the TIF and the adopted neighborhood plan. The expense for this will be paid through the City's economic development fund, and eventually reimbursed by the proceeds of the West Evanston TIF. Southeast Evanston/Howard Street Neighborhood The City continues to focus its efforts on attracting and facilitating redevelopment projects to the Howard Street corridor. This effort is consistent with the stated objectives in the Southeast Evanston Comprehensive Neighborhood Plan, developed by the residents with the assistance of the city staff. The Section III Page 29 City of Evanston, IL 2005/06 CAPER neighborhood plan received a 1999 Illinois Best Practices certificate. Among the plan objectives are increased local homeownership opportunities and economic development. In 2003, the City designated the north side of Howard Street, between Ridge Avenue and the eastern corporate boundary, as the Howard-Ridge TIF District. Proceeds from the TIF will be used to assist redevelopment projects which meet the planning goals for the corridor. During 2005/06, the city continued to work with the developer of the first redevelopment proposal within the TIF. The City funded an independent analysis of environmental conditions on the site and began making major improvements to its public water service in the area. The City also incurred costs to replace a planter in the Howard Street streetscape that was damaged as a result of a vehicular accident caused by a DUI driver. Chicago Avenue Corridor Historically, Chicago Avenue had been a busy commercial strip, home to auto dealerships and other larger commercial uses. However, beginning in the 1980's, the commercial base began to erode as dealerships closed or consolidated and a major supermarket closed its doors. In the early 1990's, anxiety over losing property tax and sales tax revenues was somewhat allayed by the fact that interest was being expressed by developers of mixed-use projects. Encouraging and guiding the transition in land use within the corridor became the focus of a neighborhood planning process from 1997 to 1999. The resulting plan seeks to stimulate and guide the redevelopment of underutilized or vacant properties. The plan recommends the City provide a vision for the corridor that will promote an attractive development environment for prospective investors and developers, as well as for neighboring residents and businesses. Since then, this corridor continues to serve as one of the City's major locations for new development. It is second only to downtown Evanston in terms of its growth in new residential units. A central component of the Chicago Avenue vision is the design for an updated, pedestrian-friendly streetscape. In 2000, the City used $75,000 of CIP monies to develop the Phase I, conceptual design for this streetscape. In 2002/03, the City again committed $97,000 in CIP monies to develop final engineering plans to construct the first section of the streetscape. In 2005/06, this "Prototype Block" was constructed at a cost of $242,201 approximately half of which was paid for by the developer. Also this year, for other redevelopment site, the City spent $128,000 to develop its streetscape plans. Now under construction, this segment of the streetscape will be completed using $150,000 of developer funds and approximately $13,300 of City CIP funds. In order to get ahead of the curve for future redevelopment projects in the corridor, the City has contracted to complete the engineering for the remainder of both sides of the streetscape, from Greenleaf Street to South Boulevard. These plans will be finished by November 2006. The City will require future developments to design their sites in accordance with these plans. City of Evanston Strategic Plan To better focus its energies, operations and resources, the City of Evanston undertook a strategic planning process in 2005. Under the leadership of a consultant, the council, city staff, residents, civic groups and organizations, and local boards and commissions were engaged in a process to outline a strategic plan for the city's future. Management staff and the Council established as its mission statement: The City of Evanston is committed to promoting the highest quality of life for all residents by providing fiscally sound, responsive municipal services and delivering those services equitably, professionally with the highest degree of integrity. This Mission is supported by three key Values: Economic Viability; Strengthening Community; and Environmental Sustainability. One of the goals aimed at strengthening the community is "Define Evanston neighborhoods and ensure that they are safe, clean and attractive." To achieve this goal, a two year work program will be designed to inventory neighborhood resources, assets and needs and to identify existing service gaps, opportunities and threats. The Plan also calls for a methodology for responding to identified neighborhood needs – particularly in regards to multi-generational recreation opportunities and public safety. Section III Page 30 City of Evanston, IL 2005/06 CAPER IV. NARRATIVE STATEMENTS FOR HOME ENTITLEMENT FUNDS IV-A. Use of HOME Funds and Consolidated Plan Working with its designated Community Housing Development Organizations (CHDOs) and other non-profit for for-profit groups, the City used HOME funds to benefit low and moderate-income residents. The three designated CHDOs are Evanston Housing Coalition, Housing Opportunity Development Corporation and Reba Place Development Corporation. They all manage affordably priced, well maintained rental units, provide technical assistance to other groups, and contribute in many ways to the provision decent, safe and affordable housing. Housing Opportunity Development Corporation manages four large multi-family buildings in Evanston in addition to their small rental properties. All of the units are affordable to a range of households under 80% of median and some units are also rented to other non-profit organizations such as Connections for the Homeless and Housing Options for their clients. Units at the rehabilitated Claridge Apartments, a former SRO at 319 Dempster, serve primarily extremely low income residents. HODC also provides Home Purchase Education Seminars in the area, and partnered with the City over the last 18 months in the City's Employer Assisted Housing Program. Evanston Housing Coalition remains active in the west Evanston neighborhood, and is in the process of rehabilitating the five single family rental properties it has managed for 10 years. The homes will be sold to income-eligible purchasers at affordable prices, with resale restrictions in order to keep them affordable. They also continue to manage one multi-family rental building for low income tenants. They recently purchased a troubled property at a key location on the City's west side, and are building two new town homes there which will be sold to income eligible buyers. Reba Place Development Corporation owns and manages several rental properties on the City's southeast side. During the last year, Reba Place completed its first condominium conversion project and purchased another building to convert to affordable condominiums. Last year they assisted a new housing development organization, Evanston Community Development Association, with its first affordable housing project, and they are providing technical assistance and project management to the organization on their second project HOME Projects Undertaken in FY 2005/06 During the 2005/06 program year, the City was involved in six HOME-assisted projects, all of which were ownership projects, with $1,749,400 in funding disbursed or committed to the projects. The high cost of land and construction in Evanston has resulted in a higher subsidy per unit and subsequent changes to affordability provisions. The subsidy is roughly equivalent to the difference between market value and the price a low income household can afford. The average subsidy of 2005/06 projects was approximately $80,000 per unit. Previously, the City used recapture provisions on ownership projects during the affordability period, but changed to resale restrictions for subsidies over $15,000 per unit due primarily to rapid appreciation in the Evanston housing market. Four of 13 HOME assisted units with recapture provisions have been sold by the initial owners at market prices unaffordable to other low income households. The subsidies were forgiven over the length of the affordability period and the unforgiven portions were recaptured, and most owners received a significant return on their investment. One of the objectives in the Consolidated Plan is to maintain affordable opportunities. With Resale Restrictions in place on more recent projects, the homeowner does not have to pay back any portion of the subsidy, but can not re-sell the property for more than the prescribed formula. Thus the affordability is hopefully maintained for 15 to 20 years, while the homeowner still gets a fair return if he or she sells the property before the end of the affordability period. Although the Consolidated Plan calls for both affordable homeownership and rental housing, every HOME project undertaken in Fiscal Year 2005/06 was for owner-occupied housing as a result of economic conditions that made rental operations more costly. Interest rates rose in the last year from the record lows but remained favorable and again helped fuel demand for first time home purchases. Section IV Page 31 City of Evanston, IL 2005/06 CAPER HOME Projects in Fiscal Year 2005/06 # Developer CHDO? Status Project Address Committed # Home Ownership Census Tract Disbursed Ass'td Or Rental Units 1 Econ No Complete 1834-1838 $292,500 - D 3 Ownership Development Darrow Corporation 8092 2 Reba Place Yes Complete 836-838 $186,900 - D 3 of 5 in Ownership Development Elmwood project Corporation 8101 3 Evanston No Complete 1717-B $80,000 - D 1 Ownership Community McDaniel Development 8092 Association 4 Reba Place Yes Underway 602 Mulford $600,000 - D 9 of 12 Ownership Development 8102 Corp. 5 ECDA No Underway 736-38 Dobson $360,000 -D 6 Ownership 6 EHC Yes Underway 1710-12 Dodge $230,000 – C 2 Ownership 6 Projects 3 3 Complete; $79,889 $1,749,400 26 Ownership CHDOs 3 Underway Average HOME Committed Units Subsidy Per or Unit Disbursed Project 1. Econ Development Corporation, a private for-profit developer, used $292,500 in HOME funds for a low interest construction loan to develop three town homes for sale at an affordable price to households under 80% of median. The HOME subsidy is passed on to the purchasers, reducing the purchase price to $185,000 per unit. The properties are subject to a 20 year affordability period with restrictions on the resale price to ensure they keep the units affordable. The town homes were built on a vacant parcel on a block where the developer has constructed two other projects. The first project sold for $175,000 and received a donation of land from the City valued at $50,000, a $30,800 construction loan from HOME funds, and a $31,000 grant from the Mayor's Special Housing Fund. The second project, a duplex, had development costs of $406,000 plus land costs of $25,000 per unit. It was funded with $100,000 in HOME funds as a low interest construction loan, which was then passed on to the two buyers to reduce the purchase price to $175,000 each. The third project had development costs of around $750,000, including acquisition. It was financed with a construction loan from First Bank and Trust of Evanston and a $97,500 per unit HOME subsidy. The town homes contained three bedrooms, attached garage and semi-finished basements. Project 2. Reba Place Development Corporation was used $186,900 in HOME funds for the rehab and condominium conversion of a five unit property at 836-838 Elmwood. All three of the existing tenants were able to purchase their unit, with one of those units receiving HOME subsidy. A subsidy of $60,000 per unit reduced the purchase price for three HOME assisted units which sold to low income purchasers for $100,000, $125,000 and $150,000.00. In order to ensure continuing affordability, the three HOME-assisted units have resale restrictions for twenty years. The building is a 94 year old Evanston landmark building with two and three bedroom units and a basement, and had always been a rental property. The basement office space was converted into a three bedroom unit. An additional $6,900 in HOME funds was used to pay relocation costs for a permanently displaced business. Total development costs of more than $900,000, were financed with conventional funding through First Bank and Trust of Evanston. A grant through the Cook County Lead Poisoning Prevention Unit was used to replace the windows, a source of lead paint hazards. These were not in the original scope of work, but due to the building's historic landmark status, the windows had to be replaced with similar style wood windows, which added greatly to the cost. The project required other significant modifications including removal of boiler pipes and additional windows in the basement, construction of a fire rated wall in the second floor interior light well between the two buildings, electrical and plumbing upgrades, individual gas forced air heating and enlarging four bathrooms. Section IV Page 32 City of Evanston, IL 2005/06 CAPER Project 3. Evanston Community Development Association (ECDA), a new non-profit, faith-based organization composed of Evanston congregations and partners, worked in partnership with Reba Place Development Corporation last year on their first project. ECDA's mission is to provide first-time home- ownership opportunities in Evanston for low income families. ECDA purchased a three bedroom town home unit from an owner who was facing foreclosure action. The unit at 1717B McDaniel required substantial rehabilitation, and total development costs came to about $250,000. Loans from First Bank and Trust of Evanston and Reba Place Development Corporation were used for acquisition and construction financing. An $80,000 HOME subsidy allowed ECDA to sell the unit to a low income household for $170,000, closing at the end of March, 2005. The unit will remain affordable for 20 years through a Restrictive Covenant that limits the resale to an income eligible buyer at a formula price. The project included a job training component, where the contractor hired two persons from the community. ECDA also involved neighbors and others in the community at a work day where volunteers helped with the initial clean-up of the property and enjoyed a cook-out. Project 4. In early 2005 Reba Place Development Corporation acquired a 12 unit rental building for conversion to condominiums after experiencing the interest among buyers for affordably priced RPDC used $600,000 in HOME funds for to acquire the brick building with 12 two-bedroom units at 602 Mulford. Like the Elmwood project, this will be a mixed income development, with nine HOME-assisted units for low income buyers. The HOME subsidy on nine units is to $66,667 per unit. The developer will provide relocation assistance to tenants who do not wish to purchase their unit The organization spent the last year working getting additional funding for rehab, developing rehab plans, and assisting tenants with relocation services, including moving and replacement housing payments. Because some tenants chose to move when they learned the building would be converted, Reba filled some of the vacant units with families in need of transitional housing, including a family that was a victim of Hurricane Katrina. The scope of work was expanded when it became apparent that a new roof was needed and after the City of Evanston updated its building code so that condominium conversions are now required to include a fire suppression system. In Report Year 2005/06, Reba Place applied for and was awarded funding from the Federal Home Loan Bank of Chicago's Affordable Housing Program for the additional rehab costs. Other funding for the nearly $2 million project comes from First Bank and Trust of Evanston. Project 5. Evanston Community Development Association used HOME funds to purchase a six unit building at 736-38 Dobson in order to convert it to affordable condominiums. During the report year, they developed plans to reconfigure the two bedroom apartments in to three bedroom units and secured additional funding. The units will sell for between $100,000 and $150,000 a unit. Had ECDA not purchased the building, it most likely would have been acquired by a private developer for condominium conversion with units selling at prices not affordable to households under 80% of median. Project 6. Evanston Housing Coalition is undertaking its first new construction project after purchasing a troubled single family house that was in foreclosure. The property needed significant rehab needs and limited market appeal based on its layout and busy street location. It was felt that HOME funds would be better used on new construction that would offer a greater value to the purchasers and attract homeowners who would make a commitment to the neighborhood. EHC is building two side-by-side units that did not require any zoning variations, and even include detached garages. They are using local contractor and architect, and working with ECDC on marketing the houses. Each unit will sell for $185,000. IV-B. Report on Contracts and Subcontracts with Minority Business Enterprises and Women's Business Enterprises Activities of Evanston's Minority Business Enterprises and Women's Business Enterprises Division is described in the Economic Development discussion of Section II and HUD Form-4107 is attached. IV- C –HOME Match Report Attached to this report is the HOME match report for FY 2005/06. The City is required to provide a 25% match for its HOME loans. Match contributions of $155,000 in 2005-06 were combined with $927,860 carry- over of excess match to meet the 2005-06 match liability of $322,818. Section IV Page 33 City of Evanston, IL 2005/06 CAPER IV-D – Results of On-Site Inspections of HOME Assisted Affordable Rental Housing The six HOME-assisted rental projects with 109 units are all leased up and operating. Five of the six rental projects are located in the City's CDBG Target Area and are routinely inspected on a two-year schedule by the City's Property Standards Division. Last year the Housing Planner joined the inspector for 1817 Foster and also inspected 707-13 Seward and 1930 Jackson. The owners immediately addressed problems or code violations noted by the inspections. An inspection will be performed by the Housing Planner in 2006 at 319 Dempster, which is not in CDBG Target area. Location Owner Assisted/Total Units On-site Inspection 619 Brummel Creative Designs 7/22 2 years 743 Brummel HODC 5/13 2 years 319 Dempster HODC 8/48 2 years 1930 Jackson HODC 3/3 3 years 707-13 Seward RPDC 10/24 2 years 1817 Foster EHC 2/2 3 years Rent and income certifications for the HOME assisted units are sent to the project owners annually for the 35 HOME-assisted units. In 2006, certifications were sent to all six projects in the City's HOME portfolio and the City determined that all the buildings were in compliance with HOME rent levels and income targeting. III-E. Assessment of Affirmative Marketing and Outreach HOME funded projects are required to submit a detailed marketing plan in order to ensure that the project will be affirmatively marketed and that people traditionally unserved by the current market are aware of the project. Marketing efforts undertaken last year for the various projects included paid advertisements in the local newspapers, notices in the City newsletter which is distributed to all Evanston residents, a notice on the City's web site fliers distributed to local churches, community centers and non-profit organizations, contacts with local non-profit service providers, home purchase seminars, and open houses. Section IV Page 34 City of Evanston, IL 2005/06 CAPER V. NARRATIVE STATEMENTS FOR HOPWA ENTITLEMENT FUNDS The City of Evanston does not receive a direct allocation of HOPWA funds. However, BEHIV, a not-for- profit agency which provides housing, services and education for persons in Evanston living with HIV/AIDS, does receive approximately $350,000 in HOPWA funds from the City of Chicago, used for a housing voucher program for scattered site apartments in Evanston and Rogers Park. VI. NARRATIVE STATEMENTS FOR ESG ENTITLEMENT FUNDS VI-A. USE OF EMERGENCY SHELTER GRANT FUNDS Programs funded with ESG funds met the City's objectives of addressing the needs of homeless individuals and families by providing emergency shelter and transitional housing. Connections for the Homeless received $68,597 in ESG funds for the operation of its 36 bed transitional shelter, Hilda's Place. Last year, 181 individuals were served at Hilda's Place, provided 12,663 bed nights. The number of extremely vulnerable individuals seeking shelter has increased. This population includes individuals with dementia, Alzheimer's and cognitive deficits. In the fourth quarter, there was an increase in persons requesting food after they had successfully secured housing. Guests at Hilda's Place must work with a case manager to address issues relating to their homelessness if they want to stay at the shelter for more than three days. Hilda's Place staff continued to develop linkage resources focusing on mental health, vocational assistance and housing. The Evanston Ecumenical Action Council (EEAC) operates a Hospitality Center for the guests of Hilda's Place. EEAC received $9,000 in 2005/06 ESG funds for employment counseling at the center. The Center is open from 7:00 a.m. – 11:00 a.m. Monday-Friday and served 143 unduplicated clients. A job counselor, located at the Hospitality Center, worked with 143 clients. The counseling includes teaching interviewing skills and offering encouragement. Other job-related services offered at the Hospitality Center include voice mail, fax service, and use of the phone. The Hospitality Center offers a clean, safe place to prepare while looking for employment and permanent housing. Fresh Start/First Base was awarded $10,000 in 2005/06 ESG funds to assist 57 homeless persons with job readiness training and job placement. VI-B. ESG Match Requirements 2005-2006 Match Contributions Connections EEAC Fresh Start TOTAL Cash Donations/ 4,710 10,000 14,710 Grants Volunteer Value 4,290 4,290 Il Dept Human Service 68,571 68,571 TOTAL 87,571 Requirement 87,597 Difference ( 26) 2004/05 Excess 6,905 VII. PUBLIC PARTICIPATION REQUIREMENTS Activities funded with federal funds in 2005/06 followed the guidelines in the City's Consolidated Plan for public participation opportunities. In addition to regular meetings of the Housing and Community Development Act Committee (CD Committee) which are always open to the public, several Public Hearings and special application review meetings were held regarding the CDBG program. The Committee held three application review meetings during which time applicants made presentations. At a fourth meeting, the Committee made its funding recommendations for programs and projects for the upcoming CDBG year. The recommendations were incorporated into the City's Annual Action Plan, which was submitted to the City Council for approval. These review and funding meetings were open to the public and televised on the Evanston local cable channel. Three other public hearings were conducted which provided opportunities for citizens to comment on specific aspects of the City's CDBG Program. A CAPER Public Hearing was conducted in May regarding the activities of the previous year, a Needs Hearing was conducted in July regarding future needs, and an Sections V, VI & VII Page 35 City of Evanston, IL 2005/06 CAPER Annual Action Plan Hearing was held in December regarding the City's CDBG recommendations and plans for use of HOME and ESG funds for the upcoming year. Specific uses of HOME funds are approved throughout the year as applications are received. The Housing Commission makes recommendations on applications at its regular meetings which are open to the public, with the recommendation forwarded to the Planning and Development Committee. After this Committee makes its recommendation, the proposals are presented to City Council for their funding decision. Emergency Shelter Grants are reviewed by the Human Services Committee. After HUD announced the City's annual ESG entitlement, the Committee reviewed the applications submitted and made recommendations to the City Council. The specific amounts are included in the City's Annual Action Plan. Time for citizen comment is always provided at Human Services Committee Meetings. Notices of meeting dates, public hearings and funding application schedules were mailed to neighborhood groups, community organizations and interested persons and legal notices were placed in the Evanston Review. Citizens who are unable to attend a public hearing are directed to send written comments to the respective board or commission. Sections V, VI & VII Page 36
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