Title
Joint resolution authorizing the repurposing of previously approved Lake County Affordable Housing Program projects as federal HOME Investment Partnership (HOME) and Community Development Block Grant (CDBG) Program projects to offset liability from previous ineligible CDBG and HOME projects.
Staff Summary
* In 2014, HUD authorized Lake County, going forward, to encumber previously approved Lake County Affordable Housing Program (AHP) projects with CDBG and/or HOME restrictions as a "credit" in lieu of repayment to HUD for past ineligible projects under HUD rules.
* Lake County utilized this repurposing arrangement in 2014 and at that time community development staff informed the Health and Community Services committee that this arrangement would likely be utilized in future program years upon identification of any additional ineligible HUD-funded projects.
* Several ineligible HUD-funded projects have now been identified through a HUD audit and staff self-monitoring, which include: (1) a 2011 CDBG Public Infrastructure project (Mundelein road improvements) totaling $78,234; (2) a 1994 HOME project from 1994 (Mary's Mission) totaling which $65,000; and (3) a number of additional projects whose potential total liability has not yet been finalized.
* Previously approved Lake County Affordable Housing-funded projects available for repurposing of these ineligible projects total $260,200 (detailed in the attached memo and resolution).
* Due to the imminent award of these AHP-funded projects, their encumbrance will be necessary prior to HUD's final determination of total liability for the past ineligible projects.
* The selected AHP project grant agreements will consequently contain release clauses for CDBG/HOME restrictions to the extent that repurposing is unnecessary for a portion thereof.
Body
RESOLUTION
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) requires recipients of Community Development Block Grant (CDBG) f...
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