Title
Joint resolution approving First Amendment to the 2018 United States Housing and Urban Development (HUD) Action Plan.
Staff Summary
• HUD requires the submission of an Annual Action Plan and associated amendments to govern the expenditure of federal funding.
• 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.
• The First Amendment to the 2018 Annual Action Plan allocates $143,139 in new 2018 program income and reallocates $1,019,909 from canceled projects.
• Such re-allocations require this proposed amendment to the Annual Action Plan be accompanied by a 30-day public comment period and public hearing.
• The Affordable Housing Advisory and Recommendation Committee (ARC) of the Housing and Community Development Commission (HCDC) recommended the replacement projects and programs for funding.
• The HCDC, recommended the approval of this amendment to the Annual Action Plan for 2018 at its meeting on October 10, 2018.
Body
RESOLUTION
WHEREAS, HUD requires the submission of an Annual Action Plan and associated amendments to govern the expenditure of federal funding; and
WHEREAS, the grant funding administered by Lake County Community Development requires prudent administration and timely spending to meet federal compliance requirements; and
WHEREAS, a new Grant Funding Allocation Policy has been proposed to both allocate new funding (e.g. program income) and re-allocate slow-spending grants and canceled projects on a timely and consistent basis; and
WHEREAS, such re-allocations require this proposed amendment to the Annual Action Plan accompanied by 30-day public comment period and public hearing, 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, the First Amendment to the 2018 Annual Action Plan allocates $143,139 in new 2018 program income and reallocates $1,019,909 from canceled projects; and
WHEREAS, the canceled projects were profiled in the Grant Performance Update; and
WHEREAS, accumulated 2018 program income resulted from the sale of a HOME-funded rehab at 854 Adams Street in Waukegan, IL, HOME down payment assistance payoffs, a CDBG loan payment (NorthPointe) and a CDBG owner-occupied rehab loan payoff; and
WHEREAS, under the Grant Funding Allocation Policy, reallocated grants must first be used to fund major community development and housing projects already approved by the Lake County Board - in this case the Deerfield-based Zion Woods and Waukegan-based LakePointe affordable rental housing projects; and
WHEREAS, the Zion Woods project’s $1.45 million in Lake County grant funding has not changed but shifted to $1,242,558.14 in 2018 funds: CDBG ($642,498.59) and HOME ($807,501.41) with the remainder anticipated in 2019; and
WHEREAS, the increase in funding for the LakePointe affordable housing project from $397,390 to $775,000 helps to meet the CDBG spending timeliness requirements while also increasing the viability of a major affordable housing project by securing the land and increasing the application score in competition for State of Illinois low income housing tax credits; and
WHEREAS, after January 1, 2019, the LakePointe project will move forward under the CPAH name per the merger plans of AHC, CPAH and LCRDC; and
WHEREAS, the Grant Funding Allocation Policy further prescribes that reallocated grants be used to fund LCB-approved housing & community development programs that have the capacity and proven ability to spend additional funds within the next six to nine months; and
WHEREAS, with this proposed Action Plan Amendment, housing programs recommended for increased funding (totaling $292,880) are the Acquisition/Rehab/Resale program of Community Partners for Affordable Housing (+ $120,975 CDBG) and both the Down payment Assistance Program (+$119,011 HOME) and Owner-Occupied Rehab (+$52,894 CDBG) of the Affordable Housing Corporation of Lake County; and
WHEREAS, after January 1, 2019, all of these programs will be managed under the CPAH name per the merger plans of AHC, CPAH and LCRDC; and
WHEREAS, the Affordable Housing Advisory and Recommendation Committee (ARC) of the Housing and Community Development Commission (HCDC) recommended the replacement projects and programs for funding; and
WHEREAS, the Housing and Community Development Commission (HCDC), at its meeting on October 10, 2018, recommended approval of this amendment to the Annual Action Plan for 2018.
NOW THEREFORE BE IT RESOLVED, by the County Board of Lake County, Illinois, this first amendment to the 2018 HUD Action Plan is 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, November 13, 2018.