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TO: Mayor John Laesch
FROM: Chris Ragona, Director of Community Services
DATE: October 22, 2025
SUBJECT:
A resolution authorizing the city to accept a grant award of $1,578,000 from the Illinois Department of Commerce and Economic Opportunity (DCEO) and to approve a Participation Agreement between the City of Aurora and Hesed House for renovations to expand the family shelter capacity of Hesed House.
PURPOSE:
The Illinois Department of Commerce and Economic Opportunity (DCEO) issued a notice of funding opportunity to fund construction, reconstruction, rehabilitation, or acquisition of property for Homeless Shelters (as defined by the U.S. Department of Housing and Urban Development (HUD) dedicated to the provision of stable, safe and adequate housing with a goal of increasing capacity to pre-COVID levels. Only units of local government in areas receiving direct entitlement CDBG funding from HUD were eligible to apply for the state of Illinois CDBG-CV Urban Shelter Program. The city of Aurora submitted two applications on behalf of Hesed House and Mutual Ground, with each application receiving approval.
BACKGROUND:
According to research published by Western Illinois University, between 2023 and 2024, there has been a staggering increase of 116% in the number of people experiencing homelessness in Illinois. Even prior to the pandemic, a person experiencing homelessness arrived at Hesed House in Aurora seeking support every 8 hours.
To continue to meet rising demand, Hesed House is seeking to complete a renovation and expansion of its family shelter space. The Hesed House family shelter opened in 2018 and provides a variety of services beyond the 24/7/356 access to meals and shelter for resident families. The current legal capacity of the family shelter is 59 men, women, and children. Unfortunately, increasing demand has forced Hesed to utilize off-site hotels to supplement the family shelter.
In calendar year 2024, the Family Shelter averaged 77 men, women, and children per night, including 104 in Q4 of that year. With the Family Shelter’s in- house capacity currently at 59, additional clients were housed at hotels at a cost to Hesed House of approximately $750,000 annually. This is not a sustainable model and the funding for said model is nearly exhausted. This shelter expansion project would fill a critical need for the City of Aurora by increasing the capacity of the Hesed House Family Shelter to over 100 men, women, and children. This will ensure that not only will families and children not be forced to try to survive on the streets and in the elements when experiencing homelessness, but also ensure they have access to safe, stable shelter and the myriad of life-changing services provided at Hesed House. This shelter expansion is a critical step in the fight to end homelessness in the greater Aurora area.
In recognition of the critical role Hesed House and the family shelter play in our network of community resources, the City of Aurora elected to partner on an application for funding to the Department of Commerce and Economic Opportunity’s (DCEO) Community Development Block Grant Coronavirus (CDBG-CV) Urban Shelter Program for an amount not to exceed $2,000,000 (R24-213). After further discussion, assessment, and planning, a submission of $1,578,000 was developed and selected for award by the DCEO. Both the referenced Grant Agreement and the Participation Agreement have been reviewed by the Legal Department with no concerns identified.
The project, as it has been awarded, includes constructing the following facilities:
Sleeping spaces for families;
Classroom space;
Computer lab;
Clothes closet;
Family isolation rooms;
Indoor children’s play area;
Platform lift for ADA accessibility;
Renovated activity room;
Sensory room;
Restrooms; and,
New security features.
Following construction, this project will result in additional capacity for men, women, and children for an overall capacity of 90+. The additional spaces identified for construction will also create access for children and families to learn and play, increase access to on-site case management activities, and create opportunities for e-learning and employment preparation for all ages.
This project is anticipated to be complete prior to the funding deadline of 05/31/2027. This includes architectural design, permitting, construction, inspection, and issuance of a certificate of occupancy. Construction is anticipated to begin in 2026 following receipt of a building permit. No land acquisition is proposed as a part of this project.
DISCUSSION:
This grant will provide $1,578,000 in federal funding over 2 years, provided on a reimbursement basis, to provide support to Hesed House. As a result of this project, the city is expected to benefit from this project by improving the capacity of Hesed House to provide temporary housing and concurrent supportive services to qualified homeless Aurora residents. The City will not incur any direct costs as a result of this grant award.
IMPACT STATEMENT:
This resolution will allow the City of Aurora to utilize funding from the Illinois Department of Commerce and Economic Opportunity for the CDBG-CV Urban Shelter Program to fund the reconstruction of the Family Shelter at Hesed House.
The City will administer any awarded grant funds through the Community Development Division in the same manner as it administers CDBG entitlement funds.
If not approved, funds will be returned to the Department of Commerce and Economic Opportunity, and shelter capacity will remain at 59 men, women, and children.
A 2025 budget amendment will be completed to add the revenue of these funds to: 101-1330-334-30-02 and the expenses to: 101-1330-463-00-00 to 101-1330-463-99-99: $1,578,000.00
RECOMMENDATIONS:
Recommend to approve a resolution authorizing the city to accept a grant award of $1,578,000 from the Illinois Department of Commerce and Economic Opportunity (DCEO) and to approve a Participation Agreement between the City of Aurora and Hesed House for renovations to expand the family shelter capacity of Hesed House.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing the city to accept a grant award of $1,578,000 from the Illinois Department of Commerce and Economic Opportunity (DCEO) and to approve a Participation Agreement between the City of Aurora and Hesed House for renovations to expand the family shelter capacity of Hesed House
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, The City of Aurora strives to support homeless Aurora residents by improving the quality of shelters and increasing, and
WHEREAS, the city was awarded a grant of $1,578,000 from the Illinois Department of Commerce and Economic Opportunity, and
WHEREAS, This project will benefit the City of Aurora by improving the capacity of Hesed House to provide temporary housing and concurrent supportive services to homeless Aurora residents; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows:
1) The city is authorized to accept a $1,578,000 grant from the Illinois Department of Commerce and Economic Opportunity with no matching cost requirement according to grant agreement #20-301002 and able to increase the grant amount up to $2,000,000 without City Council approval if approved by the state for any unforeseen expenses.
2) A 2025 budget amendment will be completed to add the revenue of these funds to: 101-1330-334-30-02 and the expenses to: 101-1330-463-00-00 to 101-1330-463-99-99.
3) That the City Council authorizes the Mayor or his designees to execute the grant agreement and subrecipient agreement and authority to sign all other documents necessary to administer the program.