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PROPOSED COMMUNITY DEVELOPMENT BLOCK GRANT - DISASTER RECOVERY (CDBG-DR)
Department: Planning and Development
Other Part(ies): BEDS Plus Care, Inc., LaGrange, Illinois
Request: CDBG - DR Program Project Loan
Total Development Cost: $5,791,750.00
Project Loan Amount: $1,300,000.00
Fiscal Impact: None
Account(s): 910-1401
Summary: The Bureau of Economic Development respectfully submits the attached CDBG - DR Program project loan recommendation in the amount of $1,300,000.00 to a to-be-formed Partnership solely owned by BEDS Plus Care, Inc. This project loan will be utilized to support CDBG - DR eligible project costs incurred during the new construction of twenty (20) units of permanent supportive housing for chronically homeless individuals. All 20 units will be CDBG - DR-assisted. The total development cost (TDC) is $5,791,750.00. The requested CDBG - DR funds account for twenty two (22) percent of the TDC. Additional funding sources include IHDA Trust Fund, Federal Home Loan Bank’s Affordable Housing Program, Illinois Donations Tax Credits, Lyon’s Township Mental Health and Owner’s Equity.
The requested CDBG - DR funds would subsidize the project via a permanent loan based upon the following terms: A 0%, 30-year loan, payable at $1,200 per year, principal accrual until sale, refinance, or end of the loan term. The loan will be due on sale or transferrable with Cook County permission. A twenty (20) year affordability period will also apply.
I respectfully request approval of this project, and that the Bureau Chief of Economic Development or his/her designee be authorized to execute, on behalf of the County of Cook, any and all documents necessary to further the project approved herein, including, but not limited to, funding agreements, intergovernmental agreements, amendments, and modifications thereto. The approval of this project by the Honorable Body will permit staff to issue necessary commitments to allow this project to move forward.
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