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PROPOSED RESOLUTION
PROPOSAL FOR CORPORATE FUNDING - SINGLE FAMILY HOME DEVELOPMENT (MODULAR HOUSING)
WHEREAS, on June 15, 2024, the Cook County Board of Commissioners through Resolution 24-2735 of the Cook County Board) approved the creation of the ARPA NT 093 Mortgage Assistance - Single Family Home Development (Modular Housing) program as a demonstration program to create single family homes utilizing the Modular form of construction; and
WHEREAS, American Rescue Plan Act of 2021 (ARPA) funds allocated to Cook County were authorized to fund the initial projects under the Single-Family Home Development Program; and
WHEREAS, Resolution 24-2735 granted the Bureau of Economic Development authority to utilize ARPA funds for the demonstration of single-family homes utilizing modular technologies and the Director of Planning and Development under the Bureau of Economic Development was authorized to select and structure developments and enter into development, partnership and loan agreements required for the development of single-family homes; and
WHEREAS, the Department of Planning and Development under the Bureau of Economic Development has initiated the Program and begun to yield single family homes demonstrating the modular technology; and
WHEREAS, the Bureau of Economic Development has worked cooperatively with the Cook County Land Bank Authority and respective municipalities to identify vacant parcels for redevelopment; and
WHEREAS, the Cook County Board of Commissioners authorized $3,000,000 in Corporate funding for the expansion of the Single-Family Home Development Program through Fiscal Year 2025 Amendment to the Tentative Appropriation Ordinance Amendment #12; and
WHEREAS, the Cook County Land Bank Authority issued a Request for Qualifications (RFQ) on August 8, 2023, under which Inherent L3C responded and upon review was designated as a qualified respondent for both development and construction of single-family homes utilizing modular construction techniques; and
WHEREAS, the Department of Planning and Development has identified development opportunities within the Humboldt Park and North Lawndale communities of Chicago through Inherent L3C, both a not-for-profit workforce and housing development firm, and existing developer under the ARPA funded portion of the Single-Family Home Development Program, and located in the Lawndale Community; and
WHEREAS, the Bureau of Economic Development and the Department of Planning and Development wishes to extend the program under the subject request for funding with consistent features including structuring development funding as a construction loan to designated developers to support the development of the homes, with the loans collateralized by the land and homes developed, repayable from the proceeds of sales to homebuyers, net of the homebuyer subsidy. Additionally, proceeds of the sale will be accumulated per development to finance additional development of single-family homes within additional phases of development as proceeds remain available; and
WHEREAS, single family homes provide the basis for community, family stability and wealth accumulation, the single-family homes will be developed to support family with incomes less than 120% of Area Median Income, supported by a subsidy of no greater than seventy-five thousand dollars ($75,000) per unit in developer subsidy convertible in part or in whole to a homebuyer subsidy directly benefitting the household purchasing the home as their primary residence; and
WHEREAS, homebuyer subsidy awards will require homebuyers reside in the property as their primary residence; and
WHEREAS, the proposed expansion of development will be primarily within the Disproportionately Impacted Areas (DIA) or Qualified Census Tracts (QCT), in which homebuyers with household income exceeding the 120% AMI may purchase the homes without subsidy.
NOW, THEREFORE, BE IT RESOLVED, that the Cook County Board of Commissioners hereby approves the use of $3,000,000 of Corporate funds for the continuation of the demonstration of single-family homes utilizing modular technologies and authorizes the Director of Planning and Development under the Bureau of Economic Development to select and structure development and enter into development, partnership and loan agreements required for the development of single-family homes.
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