BACKGROUND

The Home Investment Partnership Program (HOME) is a Federal program administered by HUD that is designed to increase the quality and availability of affordable housing. HUD annually calculates the amount of HOME funds attributable based on Arlington Heights’ population. These HOME funds are currently added to HOME funds administered by the Illinois Housing Development Authority (IHDA) and allocated for projects throughout the State.  By affirmative action, Arlington Heights may join the Cook County HOME Consortium resulting in the HOME funds attributed the Village going to Cook County to be allocated for projects within the County.

In recent years, Hoffman Estates, Mount Prospect, Schaumburg, and Palatine have become members of the Cook County Consortium. In May 2015, Des Plaines voted to become a member.  

CONSIDERATIONS

1.     Project Funding

Although the Village has been successful in receiving funds from IHDA in the past, there are several factors strengthening the likelihood of funding through Cook County: 

• Cook County is addressing community needs and program objectives on a sub-regional basis across the County.

• The number of northwest suburbs that have joined the Cook County HOME Consortium are more likely to have a combined influence on County allocations than was the case when the communities were not involved with the County through the Consortium.

• Cook County has recently supported projects within two new HOME Consortium member communities: Mount Prospect and Oak Park. Cook County has also provided Conditional Commitment Letters for financial commitments for the renovation of the Goedke Apartments (approximately $750,000) and the Parkview Apartments ($2 million) in Arlington Heights. The financing for Parkview Apartments is conditioned upon the Village either contributing to the project or joining the HOME Consortium.  

2.  Administration

There are several important changes that would be made in the administration of the Village’s CDBG program as a result of joining the Cook County HOME Consortium:

• Fiscal Year - If the Village joins the Cook County HOME Consortium, it is a Federal requirement that the Village change its CDBG program year to be the same as the Cook County HOME Consortium with a Federal fiscal year of October 1 – September 30. 

• Gap Period – If the Village elects at this time to join the Cook County HOME Consortium, there will be a gap period between the end of the current CDBG fiscal year on April 30, 2016 and the beginning of the new fiscal year on October 1, 2016. During this gap period, no new CDBG funds will be available from HUD.

On June 10, 2015, the Cook County Board agreed to provide the Village with up to $56,510 to cover CDBG expenses during the gap period. This funding would allow the Village to cover the administrative and public services costs during the gap period at the same monthly prorated basis as are incurred during the current fiscal year. The Cook County funding would also cover up to $10,000 for emergency repairs under the Single Family Rehabilitation Loan Program during the gap period.

• HUD Plans and Reports – As a member of the Cook County HOME Consortium, the Village would be required to merge its Consolidated Plan, Annual Action Plans and Consolidated Annual Performance and Evaluation Report (CAPER) with those of Cook County and the other HOME Consortium members, and these documents would be submitted to HUD by Cook County.

• Duration of Commitment – In accordance with federal law, Cook County must provide the members of the HOME Consortium the opportunity to discontinue their membership in the HOME Consortium every 3 years. If the Village joins the HOME Consortium beginning October 1, 2016, it would be joining at the beginning of the second year in the 3 year cycle. Therefore, the Village could elect to discontinue its membership in the Cook County HOME Consortium with the program year ended September 30, 2018.  

On June 9, 2015, the Housing Commission discussed the HOME Consortium.  Cook County’s HOME Conditional Commitment Letter the Parkview Apartments was included in that discussion. There was a motion that failed regarding the joining of the HOME Consortium due to insufficient information being available at the June 9th meeting.  

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