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Home My WebLink About5. New Business 04/02/2013Village of Mount Prospect cnintPm Community Development Department MEMORANDUM \ A .. ..TO: .... ,. MICHAEL E. JANONIS, VILLAGE _ ... ..,...�_ MANAGER � FROM: DIRECTOR OF COMMUNITY DEVELOPMENT DATE: MARCH 12, 2013 • . - SUBJECT: RESOLUTION ELECTING TO JOIN THE COOK COUNTY CONSORTIUM AND ALIGN OUR CDBG PROGRAM YEAR WITH THE CONSORTIUM PROGRAM YEAR BACKGROUND The Federal Government allocates HOME Investment Partnership Program (HOME) formula grants to State and localities that communities use to fund a wide range of activities that build, buy, and /or rehabilitate affordable housing for rent or homeownership. States are automatically eligible for HOME funds and receive either their formula allocation or $3 million, whichever is greater. Local jurisdictions that are eligible for at least $500,000 under the formula also can receive an allocation directly from HUD. Communities like Mount Prospect that do not qualify for an individual allocation under the formula can join with one or more neighboring localities in a legally binding consortium whose members' combined allocation would meet the threshold for direct funding. Other localities may participate in HOME by applying for program funds made available by their State. The Village of Mount Prospect's annual allocation under the HOME formula is $84,000. This money is ceded to the State and the Village currently makes application to the State when pursuing eligible programs (either on our own or when a not - for - profit such as the recent Alden Senior Development makes application for a project within the Village). These funds are combined with the State's allocation who then solicits applications and awards grants throughout the state for eligible projects. The Village is not guaranteed that any of our $84,000 will be awarded to projects within the community. In recent years, the State has awarded the Village $30,000 for a first time homebuyer program in addition to the Alden Group project. Cook County recently approached the Village about joining the Cook County HOME Consortium. By joining this consortium, the Village's $84,000 allocation would be combined with the County's allocation and the Village (and investors /not - for - profit groups pursuing projects in the Village) would make application to the County rather than the State for any eligible projects in the community. The primary advantages of switching from the State consortium to the County consortium are that Village would have a greater chance of being funded because we would be competing with a smaller group of communities for HOME funds and our annual allocation would be used locally (in Cook County vs. statewide) if funds are not allocated for a Village project. To become a member of the Cook County Consortium, the Village must agree to change our CDBG Program Year to match the Consortium Program Year which runs from October 1 through September 30 (as opposed to our current fiscal calendar year), in accordance with HUD rules. To facilitate the 9 month gap in CDBG funding that would result in this Program Year shift, Cook County will provide UVfl \vh I hcdSTLAMCDBUICook COUnttl Consortium \CC COMI liom Memo 030713 docs corporate, non - Federal dollars to cover the Village's administrative and social service expenses to align the Program Years. The details of this agreement are outlined in the attached Memorandum of Understanding between Cook County and the Village of Mount Prospect for the Federal Fiscal Year 2014. Although the Village will be entering into the Cook County Consortium for the benefit of additional HOME funds, our CDBG funds will continue to be allocated directly from HUD and the CDBG program will continue to be administered by the Village. CONCLUSION The Village Board is asked to approve the attached resolution authorizing our participation in the Cook County Consortium and to authorize the Village Manager to execute a Memorandum of Understanding with Cook County to align our CDBG Program year with that of the Consortium's. Please forward this memorandum and attachments to the Village Board for their review and consideration at their April 2, 2013 meeting. Staff and Cook County representatives will be present at the meeting to answer any questions related to this matter. ` d, WV' pw h7llacd° a \VxV..,MIVVY; "V,bIf9C6 \Saa7¢vk 4°sr wu y ConsmuiuumVCC Cl xuwrsoufi0M y.IM0 03071.4 dl= RESOLUTION NO. A RESOLUTION AUTHORIZING THE VILLAGE OF MOUNT PROSPECT'S PARTICIPATION IN COOK COUNTY'S HOME INVESTMENT PARTNERSHIPS PROGRAM CONSORTIUM AND ADOPTION OF THE CONSORTIUM'S PROGRAM YEAR FOR THE VILLAGE'S COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM WHEREAS, the Village of Mount Prospect, an Illinois municipality (the "Village ") and the County of Cook, a body politic and corporate of the State of Illinois (the "County ") are home rule units and units of local government pursuant to the Illinois Constitution of 1970; and WHEREAS, Article VII, Section 10 of the Illinois Constitution of 1970 and the Intergovernmental Cooperation Act, 5 ILCS 220/1 et seq., authorize local governments to contract or otherwise associate among themselves to obtain or share services, and to exercise, combine or transfer any power or function, in any manner not prohibited by law; and WHEREAS, the Village is a grantee of Community Development Block Grant funds ( "CDBG funds ") provided by the U.S. Department of Housing and Urban Development ( "HUD "); and WHEREAS, Cook County administers the Cook County HOME Investment Partnerships Program Consortium (the "HOME Consortium "), a group, including the County and certain other participating municipalities, that receives federal funding (the "HOME Funds ") pursuant to the Cranston - Gonzalez National Affordable Housing Act for the support of affordable housing; and WHEREAS, the amount of HOME funds that the County receives is based upon the populations of the participating municipalities within its jurisdiction; and WHEREAS, the Village, while entitled to receive CDBG funds directly from HUD, may also elect to participate in the HOME Consortium, so as to utilize HOME funds within the Village and allow HUD to take into account its population when calculating the County's annual HOME funds entitlement grant; and WHEREAS, the County has requested the Village to join the HOME Consortium, subject to the terms of the current HOME Consortium Agreement originally executed on June 15, 2002 by and between the County and the City of Berwyn, the City of Chicago Heights, and the Town of Cicero; and WHEREAS, the Village's participation in the HOME Consortium will require it to modify its present program year for CDBG funds to conform to the HOME Consortium's program year, which runs from October 1 through September 30 in accordance with HUD rules; and WHEREAS, the Village's modification of its present program year will create a gap in its CDBG funding and the County has agreed to provide funding to the Village, 305844_1 not to exceed $84,562.50 in corporate, non - Federal dollars, to cover the Village's loss in administrative and social service CDBG funding as a result of the alignment of program years; and WHEREAS, the President and Board of Trustees of the Village of Mount Prospect has deemed that it is in the best interests of the Village to receive HOME funds as a member of the HOME Consortium and, to accomplish that goal, it is in the best interests of the Village to enter into a Memorandum of Understanding, attached hereto as Exhibit 1, which will become an integral part of the Consortium Agreement (the "Addendum "). NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, PURSUANT TO ITS HOME RULE POWERS AND AUTHORITY SET FORTH IN THE ILLINOIS CONSTITUTION OF 1970 AND ILLINOIS INTERGOVERNMENTAL COOPERATION ACT (5 ILCS 220/1 ET SEQ .), AS FOLLOWS: SECTION 1: The recitals set forth above are incorporated by reference into this Section One as materials terms. SECTION 2: That the President and Board of Trustees hereby approve the Memorandum of Understanding, in a form substantially as attached hereto as Exhibit 1, as an Addendum to the current HOME Consortium Agreement originally executed on June 15, 2002 by and between the County and the City of Berwyn, the City of Chicago Heights, and the Town of Cicero. SECTION 3 : That the Village Manager and Village Clerk of the Village of Mount Prospect are hereby authorized to execute the Memorandum of Understanding, described in Section 2 of this Resolution. SECTION 4 : That this Resolution shall be in full force and effective from and after its passage and approval in the manner provided by law. AYES: NAYS: PASSED and APPROVED this day of 2013. Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk 305844 1 MEMORANDUM OF UNDERSTANDING EXHIBIT 1 HOME Investment Partnerships Program (HOME) ADDENDUM TO CONSORTIUM AGREEMENT THIS Memorandum of Understanding is entered into by and between the County of Cook, a body politic and corporate of the State of Illinois (the "County ") and the Village of Mount Prospect, an Illinois municipal corporation (the "Village "), (collectively known as the "Parties "), to permit the Village to participate in the County's HOME Investment Partnerships Program Consortium and to align the Village's program years for CDBG Grants to facilitate that participation. The executed Memorandum of Understanding (the "Addendum ") shall become an integral part of the Consortium Agreement, as hereinafter defined. WITNESSETH: WHEREAS, the United States Congress has enacted the Cranston - Gonzalez National Affordable Housing Act ( "the Act ") providing federal financial assistance for the support of affordable housing as identified in Title II -- Investment in Affordable Housing of the HOME Investment Partnerships Act: and WHEREAS, the Act makes possible the allocation of funds (the "HOME Funds ") to the County for the purpose of undertaking affordable housing activities identified in the Act; and WHEREAS, the amount of HOME Funds that the County receives pursuant to entitlement status under the Act is determined by the United States Department of Housing and Urban Development ( "HUD ") formula that takes into consideration the populations of the participating municipalities within its jurisdiction; and WHEREAS, certain municipalities within the County are entitled to receive Community Development Block Grant ( "CDBG ") funds directly from HUD, and may also elect to participate in the Cook County HOME Investment Partnerships Program Consortium (the "HOME Consortium "), which would allow those municipalities to receive HOME Funds and allow HUD to take into account the populations of those municipalities when calculating the County's annual HOME Funds entitlement grant; and WHEREAS, the County and the Village have determined that joint action is the most effective way to accomplish the purposes of the Act; and WHEREAS, units of local government are granted the following powers by Article VII, Section 10(a) of the 1970 Constitution of the State of Illinois: "Units of local government and school districts may contract or otherwise associate among themselves, with the State, with other states and their units of local government and school districts, and with the United States to obtain or share services and to exercise, combine or transfer any power 3056511 or function, in any manner not prohibited by law or by ordinance. Units of local government and school districts may contract and otherwise associate with individuals, associations, and corporations in any manner not prohibited by law or by ordinance. Participating units of government may use their credit, revenues, and other resources to pay costs and to service debt related to intergovernmental activities", and WHEREAS, the Illinois Intergovernmental Cooperation Act, (5 ILCS 220/1 et seg.), provides in part as follows: "Section 3. Intergovernmental Agreements. Any powers, privileges or authority exercised or which may be exercised by a public agency of this State may be exercised and enjoyed jointly with any other public agency of this State and jointly with any public agency of any other state or of the United State, to the extent that laws of such other state or of the United States do not prohibit joint exercise or enjoyment." "Section 5. Intergovernmental Contracts. Any one or more public agencies may contract with any one or more public agencies to perform any governmental service, activity or undertaking which any of the public agencies entering into the contract is authorized by law to perform provided that such contract shall be authorized by the governing body of each party to the contract. Such contract shall set forth fully the purposes, powers, rights, objectives and responsibilities of the contracting parties"; and WHEREAS, the Parties to this Addendum are units of local government, exercising their powers pursuant to the Intergovernmental Cooperation Act, and home rule units exercising their home rule powers pursuant to Article VII, Section 6 of the 1970 Constitution of the State of Illinois; and WHEREAS, the Parties to this Addendum agree to comply with all provisions outlined in the current HOME Consortium Agreement originally executed on June 15, 2002 by and between the County and the City of Berwyn, the City of Chicago Heights, and the Town of Cicero, all Illinois municipal corporations, the terms of which Agreement are incorporated herein as if fully set forth (the "HOME Consortium Agreement "); and WHEREAS, the Village, in electing to join the HOME Consortium, must conform to the HOME Consortium's program year, which runs from October 1 through September 30 in accordance with HUD rules; and WHEREAS, the Village will continue to receive a direct allocation of CDBG funds from HUD while electing to join the Cook County HOME Consortium and agrees to modify its existing CDBG program year to conform to the HOME Consortium's program year as necessary; and 305651_,1 2 WHEREAS, the County is seeking to increase its allocation of HOME Funds, and therefore seeks to include the Village in its HOME Consortium; and WHEREAS, to facilitate the addition of the Village to the HOME Consortium, the County will provide funding to the Village, not to exceed $84,562.50 in corporate, non - Federal dollars, to cover the Village's loss in administrative and social service CDBG funding as a result of the alignment of program years (the "Gap Funding "); and WHEREAS, this aforementioned Gap Funding will be provided during a one year period, starting January 1, 2014, in an annual amount not to exceed $84,562.50 to cover the nine (9) month gap from January 1, 2014, to September 30, 2014. NOW, THEREFORE, in consideration of the mutual promises contained herein and the recitals hereinabove set forth, it is hereby agreed between the County and the Village, as follows: A. That the recitals hereinabove set forth are incorporated herein by reference as if fully set forth herein. B. That the Village shall become a member of the HOME Consortium effective October 1, 2014 for the 2014 program year and thereafter unless terminated pursuant to the current Home Consortium Agreement. C. That the Parties to this Addendum agree to comply with all provisions outlined in the current HOME Consortium Agreement, which remains in effect until the HOME funds from Federal Fiscal Year 2014 (commencing October 1, 2014 ending September 30, 2015) are expended and closed out pursuant to 24 CFR 92.507. D. That the Village agrees to evidence its consent to participate in the HOME Consortium, in accordance with the terms of the Consortium Agreement and this Addendum, by providing the County with two certified copies of a Resolution adopted by the governing body of the Village authorizing the Village Manager or other designee of the Village to execute this Addendum. E. That the signature of said Village Manager or other designee will be affixed to this Addendum evidencing the Village's consent and an executed copy shall be provided to the County. F. That the County agrees to evidence its consent to include the Village in the HOME Consortium and to provide the Gap Funding to the Village, in accordance with the terms of the Consortium Agreement and this Addendum, by providing the Village with one certified copy of a Resolution adopted by the governing body of the County, authorizing the Chief Executive Officer or other designee of the County to sign this Addendum. G. That the signature of said Chief Executive Officer will be affixed to this Addendum evidencing its consent. 305651, ,1 H. That a copy of this Addendum executed by the Chief Executive Officer or other designee of the County will be provided to the Village. I. That the Parties hereto agree that this Addendum may be executed in one or more counterparts, each of which shall, for all purposes, be deemed an original and all of such counterparts, taken together, shall constitute one and the same Agreement. J. To the extent of a conflict in the terms of the Consortium Agreement and this Addendum, the terms of this Addendum shall govern. K. This agreement shall become effective upon the date last signed by the Parties. IN WITNESS WHEREOF, the undersigned Parties have caused this Addendum to be executed by their duly designated Officials. COUNTY OF COOK, ILLINOIS BY: Bureau Chief ATTEST: County Clerk SEAL: APPROVED AS TO FORM: Assistant State's Attorney VILLAGE OF MOUNT PROSPECT, ILLINOIS I"V Village Manager ATTEST: Date:. Village Clerk APPROVED AS TO FORM: Corporation Counsel Date: 305651_1 4