Northbrook — Ch. 19 Art. VII Affordable Housing Trust Fund § 19-187

(a) Creation; management and administration. There is hereby established the affordable housing trust fund, to be held as a separate fund within the village. The village, by and through its director of finance, shall be responsible for the day-to-day investment and fiscal maintenance and management of the affordable housing trust fund. The day-to-day fiscal maintenance and management shall be undertaken pursuant to the approved investment policies and practices used by the village for other similarly held funds. Except for disbursements and other action taken as part of the day-to-day fiscal maintenance and management of the affordable housing trust fund, no disbursements of the affordable housing trust fund may be made except by the director of finance, or their designee, upon the written direction of the board of trustees, by resolution duly adopted.
(b) Purpose. The purposes of the affordable housing trust fund are to provide financial resources to address the affordable housing needs of individuals and families of low-to-middle income who live or work in the village by promoting, preserving, and producing long-term affordable housing; provide housing-related services to eligible households, and provide support for not-for-profit organizations that actively address the affordable housing needs of eligible households. The affordable housing trust fund will provide financial support for a wide variety of eligible activities that serve eligible households.
(c) Sources of revenue. The affordable housing trust fund shall be funded from multiple sources including:
(1) Private cash donations from individuals and corporations designated for the affordable housing trust fund.
(2) Payments-in-lieu of providing affordable housing units, as authorized in the Northbrook Zoning Code's Affordable Housing Requirements.
(3) Demolition tax receipts collected, as may be authorized by article IX of chapter 23 of this Code.
(4) Matching funds from a federal or state affordable housing trust fund; or a state program designated to fund an affordable housing trust fund.
(5) Principal and interest from affordable housing trust fund loan repayments and all other income from trust fund activities.
(6) The sale of real and personal property.
(7) Budget appropriations, development fees and other funds as designated from time to time by the board of trustees.
(d) Distribution and use of housing trust fund. The board of trustees shall be solely responsible for the distribution of the affordable housing trust fund resources and funds in accordance with the requirements of this section. Distribution of funds from the affordable housing trust fund shall be in the form of grants or loans or such other funding mechanisms that support the purposes of the affordable housing trust fund. Any housing trust fund money unused at the end of any year shall remain in the affordable housing trust fund for future eligible activities, pursuant to the requirements of this section.
(e) Affordable housing trust fund operations. The board of trustees shall be solely responsible for the operation of the affordable housing trust fund, including, without limitation, the following:
(1) Establishing annually affordable housing trust fund goals, and reporting and presenting those goals to the board of trustees;
(2) Establishing policies, funding priorities, affordable housing trust fund program requirements, procedures for disbursing affordable housing trust fund awards, and an annual budget to be reported to the village board of trustees prior to the beginning of each fiscal year of the affordable housing trust fund;
(3) Approving affordable housing trust fund awards for eligible activities;
(4) Monitoring eligible activities funded by the affordable housing trust fund;
(5) Evaluating affordable housing trust fund activities; and
(6) Reporting no less than annually to the board of trustees on the expenditures, accomplishments, and activities of the affordable housing trust fund.
(f) Eligibility requirements.
(1) Purpose of eligible activity. Each eligible applicant shall demonstrate that the requested eligible activity will advance and support the purpose of the affordable housing trust fund, as set forth in this section.
(2) Eligible applicants. Developers, not-for-profit organizations, housing owners/operators, and units of government shall be eligible applicants for affordable housing trust fund resources. The affordable housing trust fund shall seek proposals from eligible applicants and make awards for eligible activities based on the priorities set forth in subsection 19-187 (g) and on the eligibility guidelines, program requirements, and process established and maintained by the board of trustees. The village manager or designee shall develop and issue eligibility guidelines, program requirements, and applications forms for affordable housing trust fund grants and loans. Eligible applicants may apply to the board of trustees for affordable housing trust fund awards for eligible activities.
(3) Types of eligible activities. The following housing-related activities are the types of activities that may receive affordable housing trust fund resources:
a. Housing production, including, without limitation, new construction, rehabilitation, and adaptive re-use.
b. Preservation of existing affordable housing stock.
c. Financing the acquisition, demolition, and disposition of property that may be used in whole or part for affordable housing projects.
d. Weatherization of existing affordable housing units.
e. Emergency repairs to existing affordable housing units.
f. Rental assistance.
g. Funding to facilitate affordable homeownership opportunities including down payment assistance, second mortgages, closing costs, etc.
h. Grants for not-for-profit organizations that are actively engaged in addressing the affordable housing needs of eligible households.
i. Making loans at interest rates below or at market rates in order to strengthen the financial feasibility of proposed affordable housing projects.
j. Providing gap financing for affordable housing developments.
k. Interim financing of public costs for affordable housing projects in anticipation of a permanent financing source (i.e., construction financing, bond sale, etc.).
l. Housing-related support services, including home ownership education and financial counseling.
m. Technical assistance to the village in implementing its affordable housing objectives.
n. Administrative costs associated with affordable housing programs.
o. Any other activity that the board of trustees determines would address the village's affordable housing needs of the community.
(g) Priorities for trust fund awards. Among proposals for eligible activities that otherwise meet established program requirements and eligibility criteria, priority shall be given to: (a) applications that provide the longest term of affordability of affordable housing, and (b) applications that provide housing to serve the needs of households with the lowest household incomes.
(h) Review and approval of applications. All complete applications for affordable housing trust fund awards shall be submitted to the board of trustees, which shall make the final decision to approve or deny all applications for funding by the affordable housing trust fund.
(i) Conditions. As a condition to any affordable housing trust fund award for any eligible activity, the eligible applicant shall first, among other applicable requirements as established from time-to-time by the board of trustees, execute and record such agreements, conditions, and restrictive covenants, or other similar instruments, as shall be required by the board of trustees ("Conditions"). Among other requirements, the conditions may bind the eligible applicant and the property, if applicable, to the requirements of this section 19-187 and provide that all awards shall be used in strict compliance with the requirements of the board of trustees and the conditions. The conditions may also include a requirement that if the property or development is no longer being used for affordable housing pursuant to the requirements of the specific award, the eligible applicant or successor owner of the property or development may be required to reimburse the affordable housing trust fund for up to 100 percent of the award, plus applicable interest.
(j) Available funds. The affordable housing trust fund is authorized to accept and utilize funds, property, and other resources from all proper and lawful public and private sources, including, without limitation, the funds dedicated to the affordable housing trust fund from the imposition of the village's demolition tax pursuant to article IX of chapter 23 of the village Code and from other fees that may be collected by the village for the purpose of promoting the supply of affordable housing in the village, including, but not limited to payments-in-lieu required by the Zoning Code. The village board of trustees may make additional funds available, as it deems necessary and appropriate. The board of trustees may provide additional financial resources to the affordable housing trust fund from any available, proper and lawful board of trustees fund or source.
(k) Staff. The village, on behalf of, and in consultation with, the board of trustees, and pursuant to the village's standard employment policies, may employ such personnel as are approved by the board of trustees and as are necessary to assist the board of trustees in the administration of the affordable housing trust fund, including, without limitation, the following:
(1) To administer the application and award process;
(2) To identify opportunities for providing affordable housing;
(3) To identify funding sources and possible partners for providing affordable housing; and
(4) To educate the community, including village residents and employers, about the village's affordable housing initiatives.