Northbrook — Ch. 19 Art. VII Affordable Housing Trust Fund § 19-188

(a) Applicability. The requirements of this section 19-188 apply to the use of affordable housing trust fund distributions for all affordable housing trust fund projects, and are in addition to the requirements of section 19-187 and any conditions, as that term is defined in section 19-187 (i), imposed by the village manager.
(b) Performance of affordable housing trust fund projects.
(1) Compliance with project summary and schedule of construction . All affordable housing trust fund projects must be completed in accordance with a project summary and schedule of construction approved by the village manager.
(2) Amendments to project summary and construction schedule . Neither the project summary nor the schedule of construction may be modified or amended except upon the prior written approval of the village manager.
(3) Leased properties . If a grant recipient retains ownership of any property for lease to third-party tenants in connection with an affordable housing trust fund project, the property must be made available for lease not later than the date that is six months after the date of completion by the grant recipient of the affordable housing trust fund project. All leased properties must be maintained at all times in a good and habitable condition and in accordance with all applicable property maintenance laws and regulations.
(c) Disbursement of affordable housing trust fund distributions.
(1) Draw requests required. Distributions may be disbursed to grant recipients pursuant to written draw requests submitted by the grant recipient to the village manager.
(2) Required documentation. Grant recipients must submit the following documents and information to the village manager with the written draw request in order to receive a distribution:
a. Evidence regarding the development of property. Evidence of the seller, location, and anticipated purchase price of the specific property to which the particular draw request pertains.
b. Compliance with village manager's requirements. A certification from the grant recipient that the grant recipient, to the best of its knowledge, has complied with the requirements set forth in the grant recipient's application for the distribution of funds, as approved by the village manager.
c. Evidence regarding funding for affordable housing trust fund project. Evidence of all the grant recipient's funding commitments and sources of funds for the affordable housing trust fund project, including all equity, debt, and grant funds.
d. Marketing plan and resident selection plan. A marketing plan and resident selection plan for the property.
e. Pricing of units. Documentation on the pricing of the property.
f. Compliance with Uniform Relocation Act. Evidence of the grant recipient's compliance with the relocation noticing provisions, and a copy of its relocation plan, in each case to the extent applicable, as required by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. § 4601 et seq.
g. Zoning and land use approvals. Evidence that the grant recipient has obtained all zoning and land use approvals necessary under all applicable laws and regulations for the affordable housing trust fund project.
h. Additional documents. All other documents the village manager, its designees, or its counsel may reasonably request as a condition precedent to receipt of any portion of the distribution.
(3) Deadline for submitting draw requests. The grant recipient must submit all draw requests within 24 months after the effective date of the distribution. The grant recipient may request an extension of such date subject to the approval by the village manager in its sole discretion.
(4) Schedule for disbursement. The village will disburse funds to the grant recipient in accordance with a disbursement schedule agreed to by the grant recipient and the village manager, but only upon receipt of all necessary draw requests that comply with the requirements of this section. Where the disbursement schedule provides for disbursement concurrent with the closing of any other financing source for the project, including, without limitation, any state affordable housing tax credit, no disbursement will be made prior to such closing.
(d) Restrictive covenant . Not later than three business days after acquiring any property, and prior to leasing, transferring, or encumbering any property, the grant recipient must execute and record a restrictive covenant against the property, in a form approved by the village manager, to preserve the affordability of the property.
(1) Required provisions . Each restrictive covenant must contain, without limitation, the following provisions:
a. The seller of the property must provide written notice to the village manager, including the full contact information of the new owner or owners of the property, of any transfer of ownership of any portion of the property;
b. The property must be maintained, operated, marketed, and used as affordable housing; and
c. The village manager may enforce the restrictive covenant, which enforcement may include an action for specific performance.
(2) Successor authority . In the event of a change in law that affects the existence or organization of the village, the village may exercise all rights granted pursuant to any restrictive covenant.
(3) Priority; subordination . In the event that the grant recipient has granted any mortgage or other security interest in any property prior to the recordation of the restrictive covenant, the mortgagee or holder of the security interest must either: (a) release its mortgage or security interest prior to recordation of the restrictive covenant; or (b) agree in writing to subordinate its interest in the property to the restrictive covenant.
(e) Restrictions on leases, transfers, and encumbrances of properties . No portion of any property may be leased, transferred, or encumbered without the prior written consent of the village manager, unless such transfer or conveyance complies with this subsection and subsection (d). A grant recipient may transfer all or any portion of a property to a wholly-owned subsidiary, parent corporation, or affiliate of the grant recipient upon notice to, but without the need for the written consent of, the village manager.
(f) Reporting and notices. At all times while undertaking an affordable housing trust fund project, each grant recipient must:
(1) Progress reports. Deliver to the village manager, on a quarterly basis or on such other timeline as requested by the village manager, progress reports in form and substance acceptable to the village manager, setting forth such information as the village manager requires, including, without limitation, pricing of the properties, income qualifications of initial purchasers of the properties, stages of completion of construction, schedule updates, reports on the use of funds, evidence of the grant recipient's financial status, and performance relative to the requirements of this section, in a form to be provided by the village manager. To further permit the verification of such status, the grant recipient must permit any person designated by the village manager to visit and inspect the affordable housing trust fund project and to review the books and financial records of the grant recipient. The grant recipient will discuss its affairs, finances, and accounts with the village manager at such reasonable times and as often as may be requested by the village manager. The village manager will establish the due dates of the quarterly reports.
(2) Notices to the village. Promptly give written notice to the village manager, as soon as reasonably possible, of:
a. Any pending material litigation or any government order specifically and materially affecting the grant recipient or the affordable housing trust fund project;
b. Any change of name, address, identity, or ownership of the grant recipient;
c. Any other event or fact which may reasonably be deemed by the village manager to adversely affect the financial or operating conditions of either the grant recipient or the affordable housing trust fund project; and
d. Any other event or fact for which notice is required by this section, or other applicable law or regulation.
(g) Recordkeeping, monitoring, evaluation, and audit .
(1) Retention of records . Each grant recipient must keep beneficiary and other demographic records and financial information as the village manager may require. These records must include all information pertaining to (a) authorizations, obligations, unobligated balances, assets, liabilities, outlays, and income, as applicable, and (b) performance and efforts to comply with the requirements of this section. The grant recipient must provide the village manager with any periodic reports the village manager may request pertaining to the activities undertaken in connection with the distribution, and must certify the accuracy of the information contained in the periodic reports, including any close-out reports, and costs and obligations incurred in connection with the affordable housing trust fund project. The grant recipient must provide the village manager operating statements, if any, and such other financial and project information as the village manager requests.
(2) Access to properties . Each grant recipient must grant representatives and designees of the village manager access to any property on a monthly basis, or at such other times as reasonably requested by the village manager, to inspect the property and review the grant recipient's books and records concerning the affordable housing trust fund project.