U.S.

DEPARTMENT

OF HOUSING AND URBAN DEVELOPMENT

Special Applications Center 77 W. Jackson Blvd., Room 2401 Chicago, llllnols 60604·3507 Phone: (312) 353-6236 Fax: (312) 886-6413
OFFICE OF PUBLIC HOUSING

SEP 0 ':' 2010

Ms. Jean Federman Executive Director Aurora Housing Authority 1630 Plum Street Aurora, IL 60506-3462 Dear Ms. Federman: The Department has reviewed the Aurora Housing Authority's (AHA) application for the demolition of 1 non-dwelling building, containing 1 dwelling unit and 28 dwelling buildings containing 145 dwelling units at Jericho Circle, IL09000000 1. The Special Applications Center (SAC) received this application on May 20, 2010 via the Public and Indian Housing Information Center (PIC), DDA0003797. Supplemental information was received through July 27, 2010.
I am pleased to approve your request to demolish! non-dwelling building, containing 1 dwelling unit and 28 dwelling buildings containing 145 dwelling units at Jericho Circle, lL09000000 1.
0._ .. :
• ~' ••

-. _.+ ........ ~ DOFA: 07/07/1975 Bedroom Si ze Total I·BR 2·BR 3·BR 4+BR Eltisting Units 4 76 137 119 336 Approved Units 26 0 49 145 70 Number of Dwelling Bulldlnas Existing 128 Number of Dwelling BuildinRs Proposed 28 Number of Non-Dwelling Buildings Existing 2 Number of Nou·DwelUng Bulldlnas Proposed I Number of (Dwelling and Ncn-Dwelllng) ACC Units In l'HA' s Total 672 Housing Inventory for A 11 Develooments Dullding Numbers Per PICI 1401 Jericho Cir, 14031erlcho Clr, 1405 Jericho Cir, 1407 Jericho cir, 1408 Jericho Clr, 1409 JerichoCir, 1410 Jericho Cir, J411 Jericho Cir, 1412 Jericho Clr, 1413 Jericho Clr, 1414'Jericho Cir, 1415 Jericho Clr, 14J6 Jericho Clr,1418 Jericho Cir,1420 Jericho Cir, 1422 Jericho Cir, 1424 JerichoCir, 1426 Jericho Cir, 1428 Jericho Cir, 1430 Jericho Cir, 1432 Jericho Cir, 1434 Jericho Clr, 1436 Jericho Cir, 1440 Jericho Cir, 1442 Jericho Cir, 1446 Jericho Cir, 1448 Jericho CIr, 1450 Jericho Cir.
-"+"

-.+"" •• ,- __ " - --

... '.' .!~,rlrM.Cl.rtlf~.~l

".r

_

Approval of your application is based on the Department's understanding of your submission, as outlined in the enclosed memorandum from me to the ffiJD Chicago HUB. The HUD Chicago HUB has been informed of this approval. Its staff is available to provide any technical assistance necessary for your agency to proceed with the demolition.

Visit our World Wide Web Site http://www.hud,gov/offices/pih/centers/sac/

2

24 CPR. Part 970.31 eliminated the requirement for one-for-one replacement of public housing units. Therefore, the AHA is not required to provide for replacement housing, and the Department is under no obligation to fund replacement housing. Please be aware that the demolition of these units will affect your operating subsidy eligibility significantly. Please contact your financial analyst at the HOD Chicago HUB for additional information, Please make sure that your annual formula characteristics report is updated properly to reflect these changes. The HOD Chicago HUB Office of Public Housing will prepare an amendment to the Annual Contributions Contract to reflect the decrease in units, resulting from this demolition. If you are interested in applying for housing choice vouchers for relocation in connection with the units approved for demolition, you must submit an application to the HUB Office of Public Housing for review and approval in accordance with the procedures in HOD Notice 200913, or HUDts current Notice outlining the application procedures. In accordance with 24 CPR, Part 970.35 of the regulation. your agency is required to inform the HUD Chicago HUB of the status of the project (i.e., delays, actual demolition or other problems). When the demolition has been achieved, please submit a report to the HOD Chicago HUB confirming the action and certifying compliance with all applicable requirements. Files must be maintained which are sufficient for audit purposes and must be made available upon request.

_._.,~. "',.' _The AHA m~st'ente'r the "'aCt'~~lirdat~s~~f ~~~li'ti~~ d'ir~tlyi~t~ th~Inventory d

.•. Removals sub-module in PIC~for the HUD Chicago HUB approval. so that the status of the units in PIC is changed to "removed from inventory!'
> ••••• ._-

••

_

••

As you start the process of implementation, I urge you to continue to maintain an open dialogue with your residents and local officials. If you have to modify your plans, the HUD Chicago HUB stands ready to assist you.

Ainars Rodins, P.E. Director Enclosure

U.S. DEPARTMENT

OF HOUSING AND URBAN DEVELOPMENT

Special Appllcations Center 77 W. Jackson Blvd .• Room 2401 Chicago, Illinois 60604-3507 Phone: (312)353·6236 Fax: (312) 886·64 13
OFFICE OF PUBLIC HOUSING

SIP 0 1 2010

MEMORANDUM FOR: Steve Meiss, Director, Office of Public Housing, 5APH FROM: Ainars Rodins, P.E., Director, Special ApplicationsCenter(SAC~

tl41l

Qc<l....lLc

SUBJECT: Approval for the Aurora Housing Authority's Request for the Demolition of 1 NOllM dwelling Building, 28 Dwelling Buildings Containing 145 Dwelling Units at Jericho Circle, IL09000000 1. The SAC received this application on May 20, 2010 via the Public and Indian Housing Information Center (PIC), DDA0003797. Supplemental information was received through July 27, 2010. The Environmental Assessment was performed by the City of Aurora under 24 CFR, Part 58 on July 19, 2010, and was signed offby the Chicago HUB on July 26,2010. The Chicago HUB provided a certification stating that the submission accurately describes the current physical condition of the project proposed for demolition, and that the reasons provided by the Aurora Housing Authority (AHA) to justify the proposed action are correct and factual. Under 24 CFR, Part 970.7(a)(I), in order for a demolition or disposition application to be approved after November 24, 2006} the effective date ofthis regulation, a Public Housing Agency (PHA) must provide ~'Acertification that the PHA has described the demolition or disposition in the PHA Annual Plan and timetable under 24 CFR part 903 (except in the case of small or high-performing PHAs eligible for streamlined annual plan treatment), and that the description in the PHA Annual Plan is identical to the application submitted pursuant to this part and otherwise complies with Section 18 of the Act (42 U.S.C. 1437p) and this part." On March 22,2010, the Chicago HUB approved the AHNs agency plan, which includes the subject action.
Description of Development

The AHA proposed the demolition of 1 non-dwelling building, containing 1 dwelling unit and 28 dwelling buildings containing 145 dwelling units at Jericho Circle, IL09000000 1. Details of the proposed demolition are as follows:

Visit our World Wide Web Site http://www .hud.gov I offices/ pih/ centers/ sac/

2
Jericho Clrde,IL090000001 DOFA: 07/01/1975
2-BR Bedroom Size l-BR 3-BR 4+BR Total Existing Units 4 76 119 336 137 Proposed Units 0 26 49 145 70 Number of Dwelling Buildings Existing 128 Number of Dwelling Buildings Proposed 28 2 Number of Non-Dwelling Buildings Existing Number of Non-Dwelling Buildings Proposed I Number of (Dwelling and Non-Dwelling) ACC Units in PHA's Total 672 Housing Inventory for All Developments Building Numbers Per PIC: 1401 JerichoCir, 1403 Jericho Cir, 1405 Jericho Cir, 1407 Jericho Cir, 1408 Jericho Cir, 1409 Jericho Cir, 1410 Jericho Cir, 1411 Jericho Cir, 1412 Jericho Cit. 1413 Jericho Cir,1414 Jericho Cir, 1415 Jericho Cir, 1416 Jericho Cir.1418 Jericho Cir,1420 Jericho Cir, 14221erlcho Cir, 1424 Jericho Cir, 1426 Jericho CIr, 1428 Jericho Cir, 1430 Jericho Cir, 1432 Jericho Cir, 1434 Jericho Cir, 1436 Jericho Cir, 1440 Jericho Cir, 1442 Jericho Cir, 1446 Jericho Cir, 1448 Jericho Cir, 1450 Jericho Cir,

History of the Development

The AHA has received approval from for the following removal actions at the development:
Development Number Removal Type Disposition Number of Units Approved 4 Number of Acres Approved Date of Approval September 3, 2004

IL090000001

0.53

Reason(s) for Action (Justification)

.P.EA t9 -Ct}rtify.thaUh~·Iln:tj~Us<.ohsnlete.!Iii ro .p.h}!~k,aJ condition, lOGstioJ1,..o.! ...oihesi!!ctors; ..-

The AHA proposed the demolition based on 24 CFR, Part 970.15, which requires the

making it unsuitable for housing purposes, and no reasonable program of modifications is costeffective to return the public housing project 01' portion of the project to useful life; and the partial demolition will ensure the viability of the remaining portion of the development by reducing density to permit better access by emergency, fire, or rescue services, or improving the marketability by reducing density to that of the neighborhood or other developments in the AHA's inventory. The AHA is proposing the demolition of 1 non-dwelling building containing 1 dwelling unit and 28 dwelling buildings containing 145 dwelling units at Jericho Circle, IL090000001. The proposed dwelling buildings were constructed in 1972 and have severe structural problems, The Structure Evaluation Engineers, Inc. completed an assessment of Jericho Circle. A copy of the assessment report is included in the application, which identifies faulty floor beams, over stressed joists, various cracks in the walls and partitions and roof damage. In addition, electrical and plumbing problems represent a threat to public health and safety; due to the severe state of disrepair, 53 of the units are vacant. The Total Development Cost (TOC) limit for the units proposed for demolition is calculated below. The Department used the TDC applicable at the time of submission of this demolition application.

3
TDC per Pill-20lO-20, Type of Structure: Row Houses Area: Chicago Total Cost Bedroom TDCfUnit Number of Size Unit 2-BR 232,540 6,046,040 26 280,906 14,045,300 3-BR 50 15,382,492 4-BR 334,402 46 6,631,884 368,438 5-BR 18 400,558 2,403,348 6-BR 6 TOTAL 44,509,064

s

s

The AHA provided the cost estimate for rehabilitation based on the existing conditions of the units. The rehabilitation cost was estimated to be $34,905,789 which is 78 percent of the TDC limit. We concur with the AHA's determination that the development is obsolete as to severe structural problems; no reasonable program of modifications is cost-effective to return the public housing project or portion of the project to useful life. Partial demolition will help to ensure the viability of the remaining portion of the development by removing the most obsolete structures that pose a public safety hazard.
Future Use of Property

The AHA has indicated that, after demolition, it intends to use the property on which this development was located for the redevelopment of mixed-finance housing at a later date. The AHA is currently evaluating proposals from qualified developers,
Demolition Cost

The·appHea~i0n·ctmoo·tl~att win -oest ·approxim~t01y.$~)000;000 to -demelish the subjecti units/bulldings at Jericho Circle. IL090000001. The AHA plans to use FY 2010 CFP funds to cover the cost of demolition.
Relocation

When the application was developed and transmitted to the Department, 93 units proposed for demolition were occupied. The AHA has submitted certification regarding relocation as required by the 24 CFR, Part 970.21(e)(f). The AHA estimated the relocation cost for the remaining residents to be $450,000, which includes moving expenses and counseling/advisory services. The funds for relocation are allocated under FY2010 Capital Fund budget. The housing resources offered will be Housing Choice vouchers. HUD also recommends that AHA grant housing search extensions up to 180 days, if needed to house large families and persons with disabilities.
Resident Consultation

1. Project(s) Specific Resident Organization(s): None 2. PHA-wide Resident Organization: None

4

3. Resident Advisory Board (RAB) in accordance with 24 CFR~Part 903.13: RAB 24 CFR, Part 970.9(a) requires that an application for demolition be developed in consultation with the tenants of the project involved, any tenant organization at the project involved and any PHA-wide organizations that will be affected by the activity. The AHA Board members and the Executive Director scheduled and held meetings with the Jericho Circle tenants on November 9,2009. The primary purpose of the meeting was to provide updates on the condition of'the units, discuss the proposed demolition and provide information on other housing options. Notification of the meeting and sign-in sheets were included in the application. No written comments were received.
Board Resolution

As required by 24 CFR, Part 970.7(a)(13), the AHA's Board of Commissioners approved the submission of the application for demolition of the proposed property on May 17, 2010, via Resolution Number 10-12. The last resident consultation was on November 9,2009. The consultation with the local govenunent took place on October 26,2009.
Mayor/Local Government Consultation

. As required by 24 CPR, Part 970.7(14) the application package includes a letter of support from the Honorable Thomas J. Weisner Mayor of the City of Aurora, dated May 3,2010.
Replacement Housing

24 CPR, Part 970.31 eliminated the requirement for one-for-one replacement of public housing units. Therefore, the AHA is not required to provide for replacement housing, and the Department is under no obligation to fund replacement housing
Approval

We have reviewed the application and find it to be consistent with Section 18 of the Act, and the implementing regulations, 24 CFR, Part 970, including requirements related to resident consultation and relocation. Based upon our review, and finding that the requirements of24 CFR, Part 970 and Section 18 of the Act have been met, the proposed demolition of 1 nondwelling building, containing 1 dwelling unit and 28 dwelling buildings containing 145 dwelling units at Jericho Circle, IL09000000, as described in the application and identified previously, is hereby approved.
Operating Subsidy

The demolition of these units will affect the AHA's operating subsidy eligibility significantly. The AHA was advised to contact the Hun financial analyst in the Chicago HUB for additional information.

5

Upon completion of demolition, an amendment to the Annual Contributions Contract, prepared by the Chicago HUB is required to reflect the decrease in units under the Act resulting from this demolition.
Housing Choice Vouchers

If the AHA is interested in applying for housing choice vouchers for relocation in connection with the units approved for demolition, it will need to submit an application to the Chicago HUB. The AHA should submit its application in response to HUD Notice 2009~13, or HUD's current Notice outlining the application procedures.
PIC and Monitoring

The AHA must enter the "actual" dates of demolition directly into the Inventory Removals sub-module in PIC, for the Chicago HUB approval so that the status of the units in PIC is changed to "removed from inventory."
It is the Chicago HUB's responsibility to monitor this activity based on its latest risk assessment. The Chicago HUB must verify that the actual data is being entered by the AHA as the actions occur to ensure the Department is not over paying in operating subsidy, and the Capital Fund formula data is correct.

Upon completion of demolition, the Chicago HUB has the responsibility to amend the Annual Contributions Contract and update PIC to reflect the approved action as appropriate.

Sign up to vote on this title
UsefulNot useful