Title
Vote to reallocate ESG funds to meet two-year expenditure deadlines
Staff Summary
· Given the restrictiveness of recent changes to the Emergency Solutions Grant (ESG) program, homelessness prevention programs to which 2012 ESG funds were allocated are unlikely to meet stringent June 4, 2014 ESG expenditure deadlines.
· In order not to return these ESG funds to HUD, staff recommends the CDC reallocate funds to homelessness prevention programs that have proven track record spending ESG funds in timely and compliant ways.
· At the February 12, 2014 CDC meeting, the CDC considered a staff recommendation to reallocate $14,444.70 unspent of $20,000 ESG 2102 contract with Prairie State Legal Services, for which the expenditure deadline is June 4, 2014. At the meeting, Prairie State's Mark Guest expressed Prairie State's ability to use the funds on time, although Finance Director Gail Tilkin Walsh had agreed since November, 2013 to repurpose the funds. This agreement was confirmed in a February 25, 2014 email (attached) from Gail Tilkin Walsh stating, "Prairie State agrees to the reprogramming of 2012 dollars for other purposes.'"
· The unspent amount of $14,444.70 would be reallocated to ESG contingency projects recommended by Homeless Assistance ARC at December 9, 2013 meeting and approved by CDC on January 15, 2014.