Title
Joint resolution amending the recapitalization of 2014 Lake County HOME Investment Partnerships Program (HOME).
Staff Summary
· In February 2014, the Lake County Board took action to resolve ineligible projects identified by the U.S. Department of Housing and Urban Development (HUD), which included five HOME Investment Partnerships Program (HOME) projects dating back to 1994.
· In lieu of sending cash directly to HUD, Lake County was permitted to invest $271,746.69 of non-federal funds in a local HOME account for creating new housing projects, bound by HOME rules.
· Subsequent to this action, staff followed repayment instructions provided by HUD, and due to a miscommunication during the instruction process, $46,025 were absorbed by U.S. Treasury and are no longer available for local projects.
· The issue of noncompliance has been resolved to HUD's satisfaction, and in lieu of direct repayment of $271,746.69 to HUD, the community has been benefited by $225,721.69 being spent on local projects.
· To address the matter of $46,025 of recaptured funds, staff recommends available HOME program income be used to meet the grant commitments approved by the County Board in June 2014.
Body
RESOLUTION
WHEREAS, Lake County is a recipient of grant funds from the U.S. Department of Housing and Urban Development (HUD), including the HOME Investment Partnerships Program (HOME); and
WHEREAS, HUD identified five ineligible grant projects from 1994 to 2011 that were required to be repaid. The Lake County Board took action to resolve this matter in February 2014; and
WHEREAS, in lieu of sending cash directly to HUD, Lake County was permitted to invest non-federal funds in a local HOME account for creating new HOME projects, bound by HOME rules; thereby replacing the ineligible projects; and
WHEREAS, Community Development's source of repayment included $38,473.69 of third party cash repaid by developers and $233,273.00 of Lake County Affordable Housing Program grants; and
WHEREAS, in June 2014, the County Board allocated the total value of $271,746.69 to housing projects that would be bound by HOME grant requirements; and
WHEREAS, subsequent to this action, staff followed repayment instructions provided by HUD, and a miscommunication in the instruction process resulted in some funds ($46,025) being absorbed by U.S. Treasury, that are no longer available for local projects; and
WHEREAS, the issue of noncompliance has been resolved to HUD's satisfaction; and
WHEREAS, in lieu of direct repayment of $271,746.69 to HUD, the community has been benefited by $225,721.69 being spent on local projects; and
WHEREAS, the County Board approved $271,746.69 of grant commitments in June 2014, which now face a deficit of $46,025 due to the recapture by U.S. Treasury; and
WHEREAS, there is program income from the HOME Investment Partnership (HOME) Program available for expenditures in FY2015 amounting to $117,395 that was not previously appropriated in FY2015 or a prior year; and
WHEREAS, $46,025 of HOME Program Income will be used to meet HOME previous grant commitments in replacement of funds absorbed by U.S Treasury; and
WHEREAS, $71,370 of HOME Program Income will allow for future HOME grant commitments expenditures in the HOME program.
NOW THEREFORE BE IT RESOLVED, that upon acceptance by the County Board, an emergency appropriation is hereby authorized in the following Management Center expense account: HOME 740-2920010-79950-000-000-000-00000
DATED, at Waukegan, Lake County, Illinois, on February 10, 2015.