MEMORANDUM COMMUNITY & ECONOMIC DEVELOPMENT DEPARTMENT

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1 MEMORANDUM COMMUNITY & ECONOMIC DEVELOPMENT DEPARTMENT TO: SUBJECT: John Phillips, City Manager Rental Rehab V Grant Certificates and Resolution Date: February 17, 2003 As part of the process to obtain a $157,500 grant from the Illinois Housing Development Authority (IHDA) for the Rental Rehab V program, the attached certificates and resolution must be executed. Following this step, IHDA will prepare the closing documents, with an expected closing date of March 31, In anticipation of the closing, staff is soliciting interest from owners of rental property. Applications will be available starting March 10, with a 5:00 p.m. March 28, 2003 deadline. The program will provide rehabilitation funding assistance for as many as 11 units of vacant rental housing through a 5-year term, 0% forgivable loan. The IHDA assistance cannot exceed $14,999 per unit and must be for no more than 75% of the renovation costs. The remainder of the rehabilitation funding is contributed by the property owner. Recommendation: That the Mayor and City Clerk be authorized to execute the Rental Rehab V Certificates and Resolution. Submitted by: Alan M. Carmen, Planning and Redevelopment Administrator Gregory S. Champagne, Community and Economic Development Director Approved: John C. Phillips, City Manager

2 City of Rock Island, Illinois HS-672 OFFICER S CERTIFICATE To: Illinois Housing Development Authority 401 N. Michigan Avenue Suite 900 Chicago, Illinois Attn: Sylvia Marchwiany Re: City of Rock Island, Illinois ( Sponsor ) Ladies and Gentlemen: Please refer to the Small Rental Properties Program Agreement ("SRPP Agreement") dated, 2003, among Sponsor and the Illinois Housing Development Authority ( Authority ). This certificate ( Certificate ) is delivered to you pursuant to the terms of the SRPP Agreement. Capitalized terms used but not otherwise defined in this Certificate have the meanings set forth for such terms in the SRPP Agreement. The undersigned hereby certifies to the Authority as follows: 1. The undersigned is the City Clerk of the Sponsor and that as such the undersigned is authorized to execute this Certificate on behalf of the Sponsor. 2. The person or persons listed on Exhibit A hold the offices of Sponsor set forth next to their respective names and hold such offices by election or appointment through the date of this Certificate. The signature appearing opposite such person s name is his or her genuine signature. Such person is authorized to execute the documents authorized by the resolutions attached as Exhibit B. 3. Attached as Exhibit B and incorporated by reference is a true, correct and complete copy of the resolutions duly adopted by the City Council of the Sponsor, authorizing, among other things, the execution, delivery and performance of the SRPP Agreement on behalf of the Sponsor, such resolutions are in full force and effect on and as of the date of this Certificate and have not been amended, rescinded or repealed. 4. On the date of this Certificate, the representations and warranties of the Sponsor set forth in the SRPP Agreement and the other documents identified in the SRPP Agreement are true and correct in all material respects with the same effect as if made on the date of this Certificate (except to the extent stated to related to a specific earlier date, in which case such representations and warranties are true and correct as of such earlier date).

3 4. On the date of this Certificate, no Default, Event of Default or event through the passage of time or giving of notice, or both would mature into a Default or Event of Default, has occurred and is continuing. 6. On the date of this Certificate, there has been no material adverse change in the condition (financial or otherwise), operations, assets, business, properties or prospects of the Sponsor. (Signature Page Attached) 2

4 IN WITNESS WHEREOF, this Certificate is executed and delivered on February 24, Jeanne F. Paggen Its: City Clerk The undersigned Mayor of the Sponsor, certifies that the person named above is the duly appointed or elected City Clerk the Sponsor and that the signature set forth immediately above is his or her genuine signature. IN WITNESS WHEREOF, this Certificate is executed and delivered on February 24, Mark W. Schwiebert Its: Mayor 3

5 EXHIBIT A INCUMBENCY CERTIFICATE Name Office Signature Mark W. Schwiebert Mayor Jeanne F. Paggen City Clerk A-1

6 EXHIBIT B A RESOLUTION ACCEPTING A GRANT FROM THE ILLINOIS HOUSING DEVELOPMENT AUTHORITY FOR SMALL RENTAL PROPERTIES PROGRAM WHEREAS, the City of Rock Island, Illinois ( City ) has been awarded a grant ( Grant ) from the Illinois Housing Development Authority ( IHDA ), program administrator of the HOME Investment Partnerships Program ("HOME Program") for the State of Illinois, in the amount of $157,500 under IHDA s Small Rental Properties Program ( SRPP ) and in order to receive such Grant, the City must formally accept the terms and conditions of the Grant, including but not limited to the SRPP Agreement, and authorize certain of its officials to execute the appropriate documents required in connection with the Grant. THEREFORE BE IT RESOLVED that the City shall enter into a SRPP Agreement with IHDA wherein IHDA agrees to make the Grant to the City, which shall be used by the City to assist in the rehabilitation of rental property (low-income) homes which are the principal residences of the households residing therein, all in accordance with the terms and conditions set forth in the SRPP Agreement. FURTHER RESOLVED, that the Mayor of the City and the Clerk of the City are hereby authorized and empowered to execute and deliver in the name of or on behalf of the City the SRPP Agreement and any and all amendments, modifications and supplements thereto, and to execute and deliver such additional documents, instruments and certificates, as may be necessary or desirable for the City to perform its obligations under the SRPP Agreement. FURTHER RESOLVED, that the Mayor and the Clerk be and hereby are authorized and directed to take such additional actions, to make further determinations, to pay such costs and to execute and deliver such additional instruments (including any amendments, SRPP Agreements or supplements) as he or she deems necessary or appropriate to carry into effect the foregoing resolutions. FURTHER RESOLVED, that the City hereby ratifies, authorizes and confirms and approves all documents and instruments executed in connection with the Grant and the SRPP Agreement, including those acts taken prior to the date hereof. (Signature Page follows) B-1

7 PASSED BY THE CITY OF ROCK ISLAND, COUNTY OF ROCK ISLAND, STATE OF ILLINOIS, AND APPROVED BY ITS MAYOR THIS 24 TH DAY OF FEBRUARY, APPROVED: Mayor CERTIFIED: City Clerk B-2

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