ORDINANCE -as Amended
WHEREAS, the City of Chicago (the "City") is a home rule unit of government under Article VII, Section 6(a) ofthe Constitution ofthe State of Illinois, and, as such, may exercise any power and perform any function pertaining to its government and affairs; and
WHEREAS, the City, by prior ordinances, had established various incentive programs to provide down-payment and/or closing cost assistance to City of Chicago police officers, firefighters and paramedics, to encourage the rebuilding of designated City neighborhoods (the "Prior Programs"); and
WHEREAS, the City has determined that continued housing purchase assistance to Chicago public safety officers is necessary, essential and appropriate to encourage the rebuilding of certain City neighborhoods and to enhance other revitalization efforts already under way in those neighborhoods; and '
WHEREAS, the City, building on the successes ofthe Prior Programs, now desires to establish a new Public Safety Officers Home Buyer Assistance Program (the "Program"), by and through its Department of Planning and Development ("DPD"), that offers forgivable, no-interest loans to qualifying City police officers, firefighters and paramedics, to assist in their purchase of primary, owner-occupied residences that are located within specific police districts and census tracts within the City; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:
SECTION 1. The above recitals are incorporated herein and made a part hereof.
SECTION 2. The Program, as set forth in Exhibit A attached hereto and made a part hereof, is hereby authorized.
SECTION 3. Subject to the approval of the Corporation Counsel, and subject to the appropriation of funding, the Commissioner of DPD (the "Commissioner") and a designee of the Commissioner are each hereby authorized to execute and deliver loan agreements and mortgages to borrowers who qualify under the Program for the purpose of financing the purchase of property that qualifies under the Program, and to execute all such other agreements and instruments, including subordinations ofthe City mortgages to later re-financings, and to perform any and all acts as shall be necessary or advisable in connection with the Program.
SECTION 4. The Program neither imposes any additional duties to be performed, nor grants any rights to additional remuneration or benefits, by or to Chicago employees by virtue of their participation as borrowers under the Program.
SECTION 5. The Program is an Eligible Program, and employees of the City who qualify for participation in the Program are Eligible Persons, as such terms are defined in Section 2-45-130 ofthe Municipal Code of Chicago (the "Municipal Code").
SECTION 6. Section 2-45-115(G)(1) of the Municipal Code is hereby amended by the addition ofthe underlined clause:
2-45-115 2015 affordable requirements.
(Omitted text is not affected by this ordinance)
fifty percent (50%) shall be used for the construction, rehabilitation or preservation of affordable housing or may be used in connection with such other housing programs as shall be specifically approved by the City Council for such revenues; and
(Omitted text is not affected by this ordinance)
SECTION 7. The amount of $3,000,000 is hereby appropriated for Program purposes from the Affordable Housing Opportunity Fund, as such term is defined in Section 2-45-115(G) ofthe Municipal Code.
SECTION 8. To the extent that any ordinance, resolution, rule, order or provision of the Municipal Code, or part thereof, is in conflict with the provisions of this ordinance, the provisions of this ordinance shall control. If any section, paragraph, clause or provision of this ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any ofthe other provisions of this ordinance.
SECTION 9. This ordinance shall be published by the City Clerk, by causing to be printed in special pamphlet form at least five copies hereof, which copies are to be made available in her office for public inspection and distribution to members of the public who may wish to avail themselves of a copy of this ordinance.
SECTION 10. This ordinance shall be in full force and effect from and after its adoption, approval by the Mayor and publication as provided herein.
Exhibit A
Public Safety Officers Home Buyer Assistance Program
General Description:
The Program provides forgivable, no-interest loans to qualifying City police officers, firefighters and paramedics, to assist in their purchase of primary, owner-occupied residences that are located within specific police districts and census tracts within the City.
Eligible Participant:
Both (1) and (2) must be met:
Any employee of the City who is:
a non-probationary full-time sworn police officer in good standing for at least one year prior to the date ofthe Loan, or
a non-probationary full-time sworn member of the Fire Department in good standing for at least one year prior to the date of the Loan, or
a non-probationary full time Emergency Medical Technician/Paramedic with the Chicago Fire Department in good standing for at least one year prior to the date of the Loan; and
whose household income does not exceed 150% ofthe median household income for the Chicago Primary Metropolitan Statistical Area.
Eligible Locations:
The Eligible Property must be located within one ofthe eligible police districts and census tracts, all as set forth on Exhibit B attached hereto.
Eligible Property Type:
The Property must be a residential building containing not more than two dwelling units that serves as the primary residence of record of the Eligible Participant during the Term of the Loan.
Loan underwriting terms: Loan amount: Borrowers:
$30,000 per Eligible Property
More than one Eligible Participant allowed on a given Note, but not more than one Note per Eligible Property
Any of the following costs, paid to others, in connection with the purchase by Eligible Participant ofthe Eligible Property: down payment, title insurance, credit reports, recording fees, appraisals,
points, transfer stamps, water certification settlement fees, third party property inspection fees, first year's pre-payment of mortgage insurance, pre-paid interest and such other costs as approved by DPD
Cash out: Buyer's equity: Loan to value:
Other loans:
Not permitted for the Term None required.
The appraised value of the Eligible Property, at the time of closing of the Loan, must exceed the sum of (i) the face value of the Note and (ii) the amount of all other loans made in connection with the Eligible Property during the Term
The Eligible Participant must be both the borrower on the Note and the named borrower on all other loans made in connection with the Eligible Property during the Term
Termination date:
Interest:
Mortgage:
10 years from the date of the Note Zero percent per annum
Junior mortgage to the senior purchase mortgage, or to any replacement senior purchase mortgage undertaken during the Term of the Loan
Subordination: Permitted, only to any replacement senior purchase mortgage
undertaken during the Term of the Loan
Amount Forgiven: $3,000, on each anniversary of the date of the Note, provided that
the Eligible Property continues to serve as the primary or principal dwelling of record of at least one Eligible Participant and the Eligible Participant continues to be an Eligible Participant as defined above
Exhibit B
Eligible Police Districts and Census Tracts
An Eligible Location must:
be located within one of these Chicago police districts: 6, 7, 9, 10, 11, 15
and
be located within one ofthe census tracts shown on the attached list
[see attached]
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JOSEPH A. MOORE
Alderman. 49th Ward 7356 North GreenviewAvenue Chicago. Illinois 60626 telephone 773-338-5796 ward49@cityofchicago org www.ward49.com
CITY COUNCIL
CITY OF CHICAGO COUNCIL CHAMBER
City Hall, Room 200 121 North LaSalle Street Chicago. Illinois 60602 Telephone 312-744-3067
COMMITTEE MEMBERSHIPS
HOUSING AND REAL ESTATE
Chairman
Budget and Government Operations
Committees. Rules and Ethics
Education and Child Development
Finance
Health and Environmental Protection
Human Relations
Special Events. Cultural Affairs and Recreation
June 28, 2017
To the President and Members of the City Council:
Your Committee on Housing and Real Estate, for which a meeting was held on June 13, 2017, having had under consideration the ordinance introduced by Mayor Rahm Emanuel on May 24, 2017, this being the amendment to the Municipal Code of Chicago pertaining to the Public Safety Officers Home Buyer Assistance Program, begs leave to recommend that Your Honorable Body Approve said ordinance transmitted herewith.
This recommendation was concurred in by a voice vote of all committee members present with no dissenting votes.
Respectfully submitted,
oseph A. Moore, Gha rman ittee on Housing and Real Estate