Lake County Illinois - File #: 17-0220

• File #: 17-0220
• Version: 1
• Name: Amendments to Multiple Plans for U.S. Dept of Housing and Urban Development
• Type: resolution
• Status: Passed
• File created: 2/10/2017
• In control: Health and Community Services Committee
• Final action: 3/14/2017
• Title: Joint resolution approving amendments to Neighborhood Stabilization Program 1 and 3 Substantial Amendments and 2013, 2014, 2015, and 2016 Housing and Urban Development (HUD) Action Plans.

Date	Ver.	Action By	Action	Result
3/14/2017	1	Lake County Board	adopted	Pass
3/1/2017	1	Financial & Administrative Committee	recommended for adoption to the consent agenda	Pass
2/28/2017	1	Health and Community Services Committee	approved and referred on to the Financial and Administrative Committee	Pass
2/15/2017	1	Housing and Community Development Commission	approved	Pass
2/15/2017	1	Housing and Community Development Commission - Executive Committee	approved	Pass

Title

Joint resolution approving amendments to Neighborhood Stabilization Program 1 and 3 Substantial Amendments and 2013, 2014, 2015, and 2016 Housing and Urban Development (HUD) Action Plans.

Staff Summary

•                     Several proposed project changes have resulted in the proposed 2^nd Amendment to the 2016 Action Plan, 3^rd Amendment to the 2015 Action Plan, 6^th Amendment to the 2014 Action Plan and 10^th Amendment to the 2013 Action Plan. Additionally, the Neighborhood Stabilization Program Round 1 and Round 3 Substantial Amendments require updating.

•                     HOME Program City of Waukegan 2015 funds were initially allocated for two acquisition-rehabilitation-resale projects; but after evaluating the properties on the market and rehabilitation costs of available properties, the City of Waukegan will only be able to complete one such project with its Program Year 2015 HOME Program funds.

•                     In January 2017, Habitat for Humanity Lake County opted out of investing HOME Program funds in its new homes due to stringent requirements of the Final HOME Rule of 2013 and high costs due to Illinois Prevailing Wage. This decision by Habitat for Humanity caused reallocation of $178,360 in HOME funds by the Affordable Housing Advisory and Recommendation Committee (ARC). Funds from Program Years 2013 ($58,360) and 2014 ($50,000) are rolled into 2017 Action Plan recommendations. The attached 2016 Action Plan Amendment contains the ARC’s recommendation to shift $70,000 in 2016 funds from Habitat for Humanity to Affordable Housing Corporation of Lake County for owner-occupied rehab.

•                     Project delivery costs for the following projects either had not been budgeted or exceeded budget: Bridge House 2013 (+$840); Busy Brains 2015 (+$680); North Chicago Road/Sidewalks 2015 (+$1,640) and LCRDC Inspection Remedies 2016 (+$1,500). Such cost overruns have been remediated by moving environmental reviews back to staff. The allocation of $4,660 of Community Development Block Grant (CDBG) program income to these projects is requested in the 2013, 2015 and 2016 Action Plan Amendments.

•                     One-fifth of the North Chicago Strategic Revitalization Plan, the construction of 4 units of veterans’ housing at 1235 Victoria, is proposed to be funded with uncommitted Neighborhood Stabilization Program (NSP) funds instead of 2013 HOME funds due to strict HOME Program timelines.  These 2013 HOME funds ($175,029.20) are included in the ARC’s recommendation to grant these funds to the Affordable Housing Corporation of Lake County for rapid spending on owner-occupied rehab projects.

Body

RESOLUTION

WHEREAS, the U.S. Department of Housing and Urban Development (HUD) required a Substantial Amendment in 2008 for Neighborhood Stabilization Program (NSP) funds and in 2010 for NSP3 funds and requires the submission of an Annual Action Plan and associated amendments to govern the expenditure of federal funding; and

WHEREAS, the Lake County Citizen Participation plan requires the execution and approval of an Action Plan Amendment for any new project or major change in scope of project; and

WHEREAS, 2013, 2014 and 2016 open projects were allocated additional Community Development Block Grant (CDBG) funds to cover project delivery costs, especially to complete environmental reviews; and

WHEREAS, unspent HOME Program funds from 2013, 2014 and 2016 must be reallocated to the owner-occupied rehabilitation program managed by the Affordable Housing Corporation of Lake County for timely and grant-compliant spending; and

WHEREAS, previously uncommitted Neighborhood Stabilization Program (NSP) funds shall replace 2013 HOME funds in the construction of four units of permanent supportive housing for veterans in North Chicago; and

WHEREAS, the Housing & Community Development Commission (HCDC) at its meeting on February 15, 2017 recommended approval of the attached plan amendments.

NOW THEREFORE BE IT RESOLVED, by the County Board of Lake County, Illinois, these amendments are hereby approved.

BE IT FURTHER RESOLVED, that the Chairman of the Lake County Board or his designee is hereby authorized to execute the necessary documents to implement these changes and to complete the amendment process.

DATED at Waukegan, Illinois, March 14, 2017.