Title
Joint resolution approving a third amendment to the 2020 United States Housing and Urban Development (HUD) Annual Action Plan (AAP).
Staff Summary
• HUD requires the submission of an Annual Action Plan (AAP) and associated amendments to govern expenditure of federal housing and community development funding for each program year.
• HUD notified Lake County that an error was made in calculating Fiscal Year 2020 (FY 2020) allocations resulting in a slight reduction to Lake County’s Community Development Block Grant (CDBG) and HOME grants. The revised FY 2020 allocations are $2,904,904 CDBG and $1,669,965 HOME. A total of $459 CDBG program income and $346 HOME program income has been allocated to account for the difference and ensure availability of funds already committed through the approved AAP.
• Additionally, the AAP assigns prior year funds made available through loan repayments and project changes. The AAP allocates $30,763 of CDBG program income, $92,847.63 CDBG prior year funds, $109,675 Lake County Affordable Housing Program (LCAHP) prior year funds and $14,124 HOME program income in the following ways:
o $13,476.63 in CDBG and $109,675 in LCAHP to Community Partners for Affordable Housing (CPAH) for the acquisition of affordable housing properties in Libertyville, Illinois;
o $109,675 of prior year CDBG to CPAH for acquisition of a Community Land Trust (CLT) unit; and
o $13,778.40 in HOME funds to CPAH for the down payment assistance program.
Body
RESOLUTION
WHEREAS, HUD requires the submission of an AAP and associated amendments to govern the expenditure of federal funding, including assigning program income and reallocating prior year funds; and
WHEREAS, HUD made an error in calculating Fiscal Year 2020 (FY 2020) allocations resulting in a $459 reduction to Lake County’s Community Development Block Grant (CDBG) and $346 HOME grants; and
WHEREAS, a total of $30,763 of CDBG program income and $14,124 of HOME program income has been generated; and
WHEREAS, a total of $92,847.63 of CDBG and $109,675 in LCAHP prior year funding is available to allocate; and
WHEREAS, the proposed third amendment to the PY2020 AAP allocates $459 of CDBG program income and $346 of HOME program income to previously approved funding commitments; and
WHEREAS, the proposed third amendment to the PY2020 AAP allocates
allocates $13,476.63 in CDBG program income and $109,675 in LCAHP prior year funds to Community Partners for Affordable Housing (CPAH) for the acquisition of affordable housing properties, $109,675 of prior year CDBG to CPAH for acquisition of a Community Land Trust (CLT) unit, $13,778.40 in HOME program income to CPAH for the down payment assistance program; and
WHEREAS, the Housing and Community Development Commission (HCDC), at its meeting on November 18, 2020, recommended approval of this amendment to the PY20 AAP; and
WHEREAS, it is necessary to establish a budget emergency appropriation for both the new revenue and offsetting expenses to execute the programs established in the AAP; and
WHEREAS, an emergency appropriation in an amount of $44,887.40 is necessary for Fiscal Year (FY) 2021 to provide for the eligible activities outlined int the AAP; and
NOW, THEREFORE, BE IT RESOLVED, by this County Board of Lake County, Illinois, that this third amendment to the 2020 HUD Action Plan is hereby approved and an emergency appropriation in the amount of $44,887.40 is hereby authorized in the FY 2021 budget in the Fund 740 HUD Grants budget as detailed in the attachment.
BE IT FURTHER RESOLVED, that the Chair of the Lake County Board or their designee is hereby authorized to execute the necessary documents to implement these changes and to complete the amendment process.
DATED at Waukegan, Illinois, on January 12, 2021.