Title
Joint resolution authorizing an emergency appropriation in the amount of $360,998.32 in Community Development U.S. Department of Housing & Urban Development (HUD) grant spending as a result of revenue from the sale of homes purchased and repayments by previous homebuyers under affordable housing programs.
Staff Summary
• Periodically, funds are returned or paid back to the County from federal programs administered by the County. In accordance with federal funding requirements, this resolution re-appropriates returned funds from three separate programs.
• The Housing grant programs (HUD funds) have been running successfully by providing funds to purchase and rehabilitate homes for income-qualified persons. Part of these programs is the repayment of federal funds when the homes are sold or when a housing developer doesn’t require all of the funds to complete the purchase and/or rehabilitation.
• This resolution authorizes the re-appropriation of repaid and earned funds for four different reasons. The first repayment is from the sale of three homes, originally purchased and rehabilitated using HOME Investment Partnership Program (HOME) and Neighborhood Stabilization Program (NSP) funds. The sale of these three homes generated $220,063.83 of program income and HUD rules govern the reinvestment of these program dollars.
• The second source of funds is the repayment by the City of Waukegan of $69,011.44 of HOME funds invested in rehabilitating a house that could not be saved.
• The third source of funds is developer interest payments totaling $29,774.32, with the fourth source of funds from housing repayments of $42,148.73 of the HOME, NSP1 and NSP3 affordable housing programs.
• An emergency appropriation in three management centers is necessary to allow for the reinvestment of these funds, as required, in the NSP1, NSP3 and HOME Programs.
Body
RESOLUTION
WHEREAS, Lake County has received revenue from the sale of homes purchased under the HOME Program, small return of funds from the Neighborhood Stabilization Program (NSP), and repayments by previous homebuyers under the HOME and AHP Programs; and
WHEREAS, such revenues resulting from sales of homes containing HOME or NSP grant subsidies must be repaid to the NSP, AHP and HOME Programs; and
WHEREAS, the program income generated in the amount of $360,998.32 was not appropriated in the FY2018 budget; and
WHEREAS, an emergency appropriation is necessary to establish funding to Lake County Board-Approved AHP, NSP and HOME Program investments.
NOW, THEREFORE, BE IT RESOLVED, by this County Board of Lake County, Illinois, that an emergency appropriation in the amount of $199,824.49 is hereby authorized in expense account 740-2960020-72990-000-000-000-00000, $150,052.83 in expense account 740-2970010-72990-000-000-000-00000 and $11,121 in expense account 740-2970011-72990-000-000-000-00000.
DATED at Waukegan, Illinois, on January 15, 2019.