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PROPOSED RESOLUTION
PROPOSAL FOR ARPA PERMANENT SUPPORTIVE HOUSING FUNDING - HAMLIN AVENUE PERMANENT SUPPORTIVE HOUSING DEVELOPMENT
WHEREAS, on March 11, 2021, the federal government authorized the American Rescue Plan Act of 2021 (“ARPA”) which includes $1.9 trillion in federal stimulus funds to hasten the United States’ recovery from the economic and health effects caused by the COVID-19 pandemic; and
WHEREAS, specifically, the federal government has authorized and allocated a federal award of approximately $1,000,372,385 of ARPA funding to Cook County to assist the County in its recovery from the economic and health effects of COVID-19; and
WHEREAS, on June 24, 2021, the Cook County American Rescue Plan Act Framework (the “ARPA Framework”) was presented to the Cook County Board of Commissioners; and
WHEREAS, the Cook County Board of Commissioners via Resolution 21-3654 accepted the ARPA federal award allocated to Cook County to assist the County in its recovery from the economic and health effects of COVID-19 in the amount of approximately $1,000,372,385.00; and
WHEREAS, Resolution 21-3654 further authorized the Cook County Budget Director and Comptroller to create and implement a Special Purpose Fund for the ARPA award and other accounting measures to track the acceptance and spending of the federal award; and
WHEREAS, the Cook County Board of Commissioners authorized the Chief Financial Officer, Budget Director, Chief Procurement Officer and applicable using agencies to issue grants, contracts and agreements for ARPA programs approved via Resolutions 22-3657 and 22-0637; and
WHEREAS, to further the Policy Roadmap Goals, the Bureau of Economic Development has developed a menu of programs to support economic recovery, inclusive of the development of affordable and supportive housing in the post COVID era, which have undergone review and approval through the Project Management Office process to utilize ARPA funding for such programs and initiatives pursuant to the issuance of grants, contracts, and loan agreements; and
WHEREAS Resolutions 22-3657 and 22-0637 provided that any awards issued regarding ARPA programs in an amount over $1M shall require the approval of the Cook County Board of Commissioners; and
WHEREAS, The Department of Planning and Development within the Bureau of Economic Development was designated the lead for ARPA Initiative NT095: Permanent Supportive Housing Development, a $10,000,000.00 initiative geared toward providing development subsidies in the form of a subordinate mortgage to offset the increased development costs due to inflationary pressures, increased labor and material costs, supply line shortages in support of continued housing development for residents requiring supportive services in Cook County; and
WHEREAS, Sertoma Star Services proposed the development of a 25-unit permanent supportive housing (PSH) development at 12000 S. Hamlin in Alsip, a suburb of southern Cook County. The project will be a mix of one-bedroom and two-bedroom units for individuals and families with disabilities earning less than 30% of the Area Median Income.
WHEREAS, Sertoma Star Services, which has over 50 years of service to persons with intellectual or mental disabilities and their families, will serve as owner, service provider, and the property manager of the Hamlin Ave PSH project. Further, Sertoma will provide clinical staff and property management staff for Hamlin Ave PSH. The property manager will be onsite two days per week, as well, to address property needs, rental documents and provide tenant support, as needed. Maintenance staff will provide maintenance and repair services to the physical building.
WHEREAS, the proposed developer, Sertoma Star Services has requested a loan of $1,740,300.00 in American Rescue Plan Act - Permanent Supportive Housing (ARPA-PSH) funding, with a thirty-year term, 0% permanent loan rate and substantially deferred until maturity.
NOW, THEREFORE, BE IT RESOLVED, that the Cook County Board of Commissioners hereby approves the loan of ARPA funds for the development and authorizes the Director of Planning and Development to enter into loan and security agreements with Sertoma Star Services.
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