Distributing Federal Housing Money

From the McHenry County Board’s Planning and Development Committee’s April 12th agenda packet:

Resolution Authorizing Program Year 2015, 2016 and 2017 HOME Investment Partnerships Program Allocations

McHenry County receives an annual commitment of Federal HOME Investment Partnership Programming. The HOME funding is divided into Community Housing Development Organization (CHDO) funding, general funding, and funding for program administration.

HOME CHDO funding must be allocated to a service agency that applies and meets the CHDO classification criteria. Administrative funding is utilized by the County to manage and operate the program.  General funding may be allocated to a wider range of for profit and not for profit organizations for housing projects that meet HOME program requirements and the McHenry County Annual Action Plan and Five Year Consolidated Plan.

The total amount of HOME funding available is $1,209,922.74 and is designated by year as follows:

  • 2015: $335,150.74
  • 2016: $434,772.00
  • 2017: $440,000.00 (estimated)

Community Housing Development Organization (CHDO) set-aside portion of the aforementioned funding available to be allocated by McHenry County this funding round for the CHDO organizations is $155,427.59. The CHDO set-aside funding is designated by year as follows:

  • 2015: $30,211.79
  • 2016: $65,215.80
  • 2017: $60,000.00 (estimated)

The total amount of HOME General Funding to be allocated by McHenry County this funding round is $1,054,495.15. The General Funding is designated by year as follows:

  • 2015: $304,938.9
  • 2016: $369,556.20
  • 2017: $380,000.00 (estimated)

The Community Development and Housing Grant Commission recommends the following allocation of HOME funds by program year:

2015 total funding – $335,150.74

  • $30,211.79 CHDO funding to Habitat for Humanity for Acquisition and Rehabilitation Program
  • $54,135.95 General Funding to Habitat for Humanity for Acquisition and Rehabilitation Program (this amount has been reduced from the original CDHG Commission meeting due to partial allocation of 2015 funding to Habitat for Humanity o complete a separate Neighborhood Stabilization Program project)
  • $207,500.00 General Funding to Home of the Sparrow, Inc. for Acquisition of Affordable Housing
  • $43,303.00 Administration funding to McHenry County Department of Planning and Development- Community Development Division

2016 total funding – $434,772.00

  • $65,218.80 CHDO funding to Habitat for Humanity for Acquisition and Rehabilitation Program
  • $207,500.00 General Funding to Home of the Sparrow, Inc. for Acquisition of Affordable Housing
  • $162,056.20 General Funding to McHenry County Housing Authority for Owner-Occupied Rehabilitation Program

2017 total funding – $440,000.00 (estimated)

  • $60,000.00 CHDO funding to Habitat for Humanity for Acquisition and Rehabilitation Program
  • $250,000.00 General Funding to Full Circle Communities Pearl Street Apartments Project
  • $90,000.00 General Funding to McHenry County Housing Authority for Owner – Occupied Rehabilitation Program
  • $40,000.00 Administration funding to McHenry County Department of Planning and Development – Community Development Division

In the event that Home of the Sparrow cannot proceed with their project, $103,750.00 of General Funding from HOME Program Year 2015 and $103,750.00 of General Funding from HOME Program Year 2016 will be allocated to Habitat for Humanity for its projects and $103,750.00 of General Funding from HOME Program Year 2015 and $103,750.00 of General Funding from HOME Program Year 2016 will be allocated to the McHenry County Housing Authority for its projects.

In the event that Habitat for Humanity cannot proceed with its projects, $54,135.95 of General Funding from HOME Program Year 2015 will be allocated to Home of the Sparrow, Inc. for its project and any Community Housing Development Organization (CHDO) funding will be allocated in a separate funding round.

In the event that the McHenry County Housing Authority cannot proceed with its projects, $162,056.20 of General Funding from HOME Program Year 2016 and $90,000 of General Funding from HOME Program Year 2017 will be allocated to Habitat for Humanity for its projects.

In the event that Full Circle Communities cannot proceed with its tax-credit project or that it is not funded through the Illinois Housing Development Authority tax-credit program by October 1, 2016, funding allocated to it will be allocated in a separate funding round.

HOME Administration Funding designated for use by McHenry County for the 2015 and 2017 program years has not yet been recognized by the County. The attached resolution recognizes the 2015 funding and once it is adopted as part of the Division budget it will be available for administrative uses for the HOME program. The 2017 administration funding will be recognized in County FY2017 after Congress approves the Federal budget for the HOME program.

Funding allocated for the 2017 Program Year has been estimated based on averaging of allocations made to McHenry County in past years.  Projects and Administration receiving an allocation of funding for 2017 will be adjusted in direct relation to the increase or decrease in the actual overall HOME Investment Partnerships Program funding provided to McHenry County.  The purpose of indicating an allocation for 2017 early allows for the capacity to allot an intended allocation to tax credit projects that generally involve extensive application periods.  Early designation of these allocations allows additional time to run an additional funding round for 2017 to allocate tax credit money to other projects should the tax credit application to the Illinois Housing Development Authority fail to become funded.


Comments

Distributing Federal Housing Money — 2 Comments

  1. If you like the controls HUD imposes on Counties which participate in HOME, you should support this.

    Just look at Winnebago County where residents tried to stop a HUD funded development – result?

    You guessed it, investigation by the federal DOJ.

    You think the IMRF inquisition is costly and has a negative impact on a County Board?

    Wait until you run afoul of HUD.

  2. I have seen other comments on this blog relative to Section 8 housing.

    What mechanism do you think is in place to build ‘affordable’ housing for purposes of leasing those units to people who hold Section 8 Vouchers?

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