DuPage County CDC Executive Committee met July 11.
Here is the minutes provided by the Committee:
1. Call to Order
11:35 am meeting was called to order by Chairman Tim Elliott at 11:43 am.
11:35 am or Immediately Following Home Advisory Group
2. Roll Call
Chairman Elliot called the meeting to order at 11:43 am.
Present: Anderson, Berley, Chaplin, Chrisse, Elliott, Tornatore, Wiley (Remote)
Absent: Bastian, Chassee, Grasso, Grill, Krucek
Tornatore made the motion, seconded by Anderson, for Wiley to participate via phone while on Military duty. On a voice vote, motion passed.
A visual roll call was performed.
Staff Present: Mary Keating, Community Services Director; Jennifer Chan, Community Development Administrator; Christine Pedersen, Senior Accountant/Community Services Manager; Christopher Ragona, Community Development Manager; Julie Hamlin, Sr. Community Development Specialist; Barb Temborius, Community Development Specialist; Therese Witkus, Community Development Specialist; Christopher Donovan, Community Development Specialist; Dorin Fera, Community Development Specialist; Tom Schwertman, Community Development Specialist; Nicole Rashan, Principal Account Clerk and Anthony Mistretta, Community Development Intern.
State’s Attorney - Patrick Collins.
Others Present: Margo Matthew - Bridge Communities; Karen Ayala - DuPage County Health Department; Dennis Brennan - DuPage County Health Department; Carol Simler - DuPage P.A.D.S.
3. Public Comment
There was no public comment.
4. Approval of Minutes
A. CDC - Executive Committee - Regular Meeting - May 2, 2017 11:35 am
There was no discussion.
On a voice vote, the motion passed.
Result: Accepted [Unanimous]
Mover: Elizabeth Chaplin, District 2
Seconder: Janice Anderson, District 5
Ayes: Anderson, Berley, Chaplin, Chrisse, Elliott, Tornatore, Wiley
Absent: Bastian, Chassee, Grasso, Grill, Krucek
5. Action Items
A. Action Item -- 16-17-684 : CD15-12 DuPage P.A.D.S. 3rd Modification, 2nd Time Extension
Chan stated that DuPage P.A.D.S. received 2015 and 2017 CDBG funds. Granting this extension allowed P.A.D.S. to do both projects simultaneously saving on project costs. Carol Simler was in the audience to answer any questions.
On a voice vote, the motion passed.
Result: Approved [Unanimous]
Mover: Elizabeth Chaplin, District 2
Seconder: Janice Anderson, District 5
Ayes: Anderson, Berley, Chaplin, Chrisse, Elliott, Tornatore, Wiley
Absent: Bastian, Chassee, Grasso, Grill, Krucek
B. Action Item -- Recommendation for approval of a third agreement modification with the Village of Addison, Project Number DBG-DR-13 buy-out and demolition of 540 N. Highview, to increase funding in the amount of $19,681.25 for a total project cost of $189,218.75
Chan stated the largest increase in project cost came as the result of a formal estimate of expenses under the Uninform Relocation Act. John Berley, Addison’s’ representative was available for questions Berley stated that the initial relocation cost estimate done at the beginning of the project turned out to be too low.
There was no discussion.
On a voice vote, the motion passed.
Result: Approved [Unanimous]
Mover: Sam Tornatore, District 1
Seconder: Elizabeth Chaplin, District 2
Ayes: Anderson, Berley, Chaplin, Chrisse, Elliott, Tornatore, Wiley
Absent: Bastian, Chassee, Grasso, Grill, Krucek
C. Action Item -- Recommendation for approval of the First Substantial Amendment to the 2017 Action Plan.
On a voice vote, the motion passed.
Result: Approved [Unanimous]
Mover: Elizabeth Chaplin, District 2
Seconder: Janice Anderson, District 5
Ayes: Anderson, Berley, Chaplin, Chrisse, Elliott, Tornatore, Wiley
Absent: Bastian, Chassee, Grasso, Grill, Krucek
6. Other Business - Update On NAMI Request For Forgiveness
The following information was distributed during the meeting.
To: Community Development Commission Executive Committee
From: Mary A. Keating, Director,
Community Services
Date: July 10, 2017
Subject: New Business Informational Item - Update on National Alliance on Mental Illness (NAMI) DuPage Request for Forgiveness on CDBG Deferred Loan
On May 2, 2017, the Community Development Commission Executive Committee recommended approval for the forgiveness of one loan to NAMI DuPage, in the amount of $52,500, for project number CD93- l2. NAMI previously informed the Committee they were looking to sell two properties to a new owner who would maintain the properties in their current use. This item was placed on the Health and Human Services Committee agenda scheduled for May 16, 2017, but was removed after additional information was discovered on the terms of a sale to a prospective buyer and the possible displacement of tenants due to an increased monthly rent.
The tenants in each property are clients of the DuPage Health Department, and discussion is currently taking place between NAMI and the Health Department on acquiring these properties to maintain the current use and provide continued housing for persons with disabilities.
The CDC is currently working with the Health Department on providing CDBG funds to assist in acquiring these properties and will monitor the terms of the sale before making a decision on forgiving, transferring, or requesting payback on all, or a portion of the current liens on the property. Any approvals required from the CDC Exec Committee will be brought forth once the terms and sale price are agreed upon by both parties. CDC staff will continue to update the CDC Executive Committee as new information becomes available and if a sale takes place.
Keating informed the Committee that the DuPage County Health Department approached the Department expressing its concern about the pending sale of the two NAMI properties. NAMI owns the two group homes, but the Health Department is the tenant; manages the services in the group homes, and is responsible for the individuals who reside in the homes. There are 16 individuals potentially impacted by the sale.
NAMI had indicated they would seek a potential buyer who was committed to the continuing use of the properties. The Health Department was approached by a potential buyer of those properties and was asked to sign a long-term lease containing significant rent increases. One of the primary reasons for the rent increase was that the buyer was not a non-for-profit, tax exempt organization and the properties would go back on the tax rolls. Even if the buyer wanted to break even on this deal, there would be no choice but to increase the rents to recoup the expense of the property taxes.
The Health Department was extremely concerned about the potential displacement of the individuals in which 80% of them had lived in one of the two group homes for over 20 years. These are individuals with disabilities. The parents and family members of the individuals were also concerned on the outcome if the homes were sold to another entity and the Health Department could no longer afford to rent and run the services.
Discussions ensued as to how to facilitate the Health Department becoming the owner of the properties. By doing so, it would negate the possibility of displacement and long-term housing stability would continue. Two options were available to assist in the transaction.
Currently, there is $450,000 in unobligated funds from projects that came in under budget and admin money. The $450,000 could be used to assist the Health Department in the purchase of the properties.
Also, the current CDBG County liens could be transferred from NAMI to the Health Department. Both options would reduce any additional capital required by the Health Department for purchase of the buildings.
Staff would recommend that the $450,000, as outlined in the 2017 Substantial Amendment to the Action Plan, be used towards the purchase of the NAMI properties.
If this approach was approved, two actions would take place outside of the normal funding process. Under the normal process, an application would be due in October with final project approval by County Board not taking place until the following March. Since the homes are still on the market, they could be sold at any time. This project would bypass the competitive application process because of the risk of the displacement of the 16 individuals.
In addition, normal policy is for a cap of $400,000. Staff would recommend $450,000, because that was the total amount available that could be used to assist the Health Department in maintaining these properties.
Elliott stated that the manner in which this was being done was a little unorthodox but the purpose and the goal were central. Keating agreed. The process would be modified, but would still meet the mission of the Community Development Block Grant program.
Tornatore stated that he sits on the Health Department board. He asked if it has been determined if the remaining $52,500 from the 40 year lien was going to be forgiven or not. His concern was how this unknown factor could affect the negotiations between NAMI and the Health Department. Whatever decision was made would impact the sale price of the properties.
Keating said that there is actually a total of $188,000 in liens on the properties. At this point in time, Keating would not recommend forgiveness. What action would be taken would depend on the entity who actually purchased the property. Once the Health Department has the new appraisals and knows the value of the properties, a decision could be made. The basic goal is to not displace the 16 individuals.
The CDC’s loan forgiveness policy, approved by the CDC Executive Committee, is permissive in nature and allows the Community Services Director to forgive liens within the parameters of the policy. Keating noted that the actual agreement was made between NAMI and the County Board. The County Board would have the final decision if the loan was to be completely forgiven or if there would be a combination of forgiveness and lien transfer.
Tornatore felt forgiveness of the $52,000 should happen if it were sold to the Health Department. The CDC will work with the Health Department to assist, as much as possible, with the purchase of the properties. Tornatore asked if this transaction would be within the bounds of the regulations. Keating confirmed the regulatory obligation is only five years and it was fulfilled long ago.
Elliott confirmed that Keating has the ability to choose whether the lien is or is not forgiven; however the ultimate decisions lies with the County Board. Keating agreed.
Berley asked if the Health Department owns other properties. Tornatore replied yes. He also asked if this project was scored how it would do. Keating felt it would score very well.
There were no other questions.
7. Adjournment
Chaplin made the motion, seconded by Tornatore, to adjourn the meeting at 11:53 am. On a voice vote, the motion passed.
8. Next Meeting Date - August 1, 2017
http://dupage.iqm2.com/Citizens/FileOpen.aspx?Type=15&ID=6069&Inline=True
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