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PROPOSED RESOLUTION
PROPOSAL FOR ARPA PERMANENT SUPPORTIVE HOUSING FUNDING - UP HOUSE REHABILITATION
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, Unlimited Potential NFP, Inc., dba The UP House (UP House), currently owns and is proposing the rehabilitation of a 50-bed group home providing permanent supportive housing for girls and young women in Illinois Department of Children & Family Services (DCFS) foster care. UP House is located at 13811 Western Avenue in south suburban Blue Island (“the Property”); and
WHEREAS, UP House receives operating funding from DCFS and private donations to provide transitional housing services for girls in foster care and young women aging out of foster care including life skills training and resources to navigate the challenges of adulthood. In addition to housing, programming includes vocational training, educational coursework, and support services such as medical and clinical support, personal development workshops, and mental and physical health education and support; and
WHEREAS, UP House currently houses and serves approximately ten girls and young women and has secured space and funding to increase service provision to approximately fifty girls and young women. That expansion requires rehabilitation funding to meet municipal fire and life safety requirements, install security systems on the campus, replace roofs, and make electrical and plumbing upgrades to improve the Property and extend useful life. Expansion cannot occur until fire and life safety upgrades are made; and
WHEREAS, UP House has applied for funding to complete the rehabilitation and retire must-pay, high-interest acquisition financing maturing in 2027. The loan request is in the amount of $3,500,000 in American Rescue Plan Act - Permanent Supportive Housing (ARPA-PSH) funding with a one-year construction and thirty-year permanent loan term, 0% interest (interest-free), and $1,000 monthly payments of principal only.
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 Unlimited Potential NFP, Inc. or an affiliated single-purpose entity
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