Title
Joint resolution approving four Memoranda of Understanding (MOUs) between Lake County, Illinois, and four sub-recipients of the 2016 Community Development Block Grant (CDBG), and authorizing the sub-recipients to incur costs prior to U.S. Department of Housing & Urban Development’s (HUD’s) 2016 CDBG award to Lake County.
Staff Summary
• Four potential sub-recipients (Village of Lake Villa, Village of Round Lake Beach, Little City Foundation-Mundelein rental, and the Lake County Residential Development Corporation-Zion rentals) of 2016 CDBG funds have requested permission to start CDBG-funded projects in the second quarter of 2016, prior to Lake County receiving its annual CDBG entitlement grant agreement in June or July 2016.
• Under Section 24 CFR 570.200(h) of the Code of Federal Regulations (CFR), HUD permits CDBG grantees such as Lake County to allow its CDBG sub-recipients to begin spending on CDBG projects prior to receipt by Lake County of its CDBG award.
• The four CDBG projects have been recommended for this pre-award cost authorization by the Housing & Community Development Commission (HCDC).
• Each MOU puts the respective sub-recipient on notice that it bears the risk of incurring pre-award costs including reimbursement of these expenses which is completely dependent on the CDBG 2016 grant award provided by HUD and has a potential outcome where no CDBG funds are awarded.
Body
RESOLUTION
WHEREAS, Lake County Community Development requests that Lake County enter a MOU with four potential sub-recipients of 2016 Community Development Block Grant (CDBG) funds; and
WHEREAS, said four potential sub-recipients are the Village of Lake Villa, the Village of Round Lake Beach, Little City Foundation and the Lake County Residential Development Corporation; and
WHEREAS, said understandings authorize these four potential CDBG sub-recipients to incur project costs prior to receipt by Lake County of its 2016 CDBG award.
NOW, THEREFORE, BE IT RESOLVED, by this County Board of Lake County, Illinois, that a MOU may be signed with the Village of Lake Villa, the Village of Round Lake Beach, Little City Foundation and the Lake County Residential Development Corporation authorizing each potential sub-recipient to incur CDBG project costs under the full understanding that all risks are borne by the sub-recipient.
DATED at Waukegan, Illinois, on April 12, 2016.