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TO: Mayor John Laesch
FROM: Chris Ragona, Director of Community Services, Community Services Department
DATE: July 2, 2025
SUBJECT:
A Resolution Authorizing Approval of Substantial Amendment 2025-# 2 to Re/Allocate Prior Years' Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and HOME Investment Partnerships - American Rescue Plan (HOME-ARP) Funding, Adopt HOME Program Resale and Recapture Policy, and Amend HOME-ARP Allocation Plan.
PURPOSE:
On behalf of the Block Grant Working Committee (BGWC), Staff requests approval of its proposed funding recommendations utilizing prior year CDBG, HOME, and HOME-ARP funding. If Staff’s request is approved, this will result in modifications to the City’s 2018, 2019, 2020, 2021, 2022, 2023, and 2024 Annual Action Plans identified as Substantial Amendment 2025-#2 to reallocate CDBG, HOME, and HOME-ARP funding to new and/or existing projects.
BACKGROUND:
The City’s HOME Community Housing Development Organization (CHDO) and HOME-ARP application process opened on March 3, 2025, and closed on March 28, 2025. City staff outreach efforts included notifications to prior and current recipients of funding and prospective first-time applicants. The following table outlines the City’s outreach efforts:
|
Outreach Opportunity |
Date |
|
Pre-Application Announcement Email - Notice #1 |
3-3-2025 |
|
Beacon Newspaper Advertisement |
3-6-2025 |
|
Community Resource Team Email |
3-6-2025 |
|
Community Resource Team Social Media Post |
3-6-2025 |
|
Pre-Application Announcement Email - Notice #2 |
3-18-2025 |
|
Final Reminder Regarding Application Due Date |
3-26-2025 |
|
Application Due Date |
3-28-2025 |
Under each email notification, an estimated 540 representatives from non-profit agencies, elected officials, advisory boards, interested businesses, and residents of the City were provided with information regarding the City's five specialized grant opportunities: the City of Aurora Opioid Use Disorder Grant (OUD), a Request for Qualification for a HUD Certified Housing Counselor, CHDO Housing Activities, a Tenant Placement Assistance (TPA) Program, and a Tenant Based Rental Assistance (TBRA) Program. The City also published an advertisement and press release in The Beacon News. The specialized grant opportunities were also advertised utilizing the City's social media accounts.
The 2025 CHDO and HOME-ARP application rounds closed on March 28, 2025 with three (3) applicants requesting $1,520,000 dollars (CHDO: $500,000 and HOME-ARP: $1,000,000). A CHDO is a special type of nonprofit organization designated by HUD under the HOME Program and required to receive a set-aside of HOME funds for developing affordable housing. HOME (non-CHDO) applications (from non-profit or for-profit housing developers) are accepted on a rolling basis, and an additional application with a request for $725,000 was submitted on May 23, 2025. During this time, the City also published an RFQ for HUD -Certified Housing Counselor, resulting in two proposals, each requesting $10,000 for a total amount of $20,000.
Community Development Division (CDD) staff reviewed and scored each application to focus on the following criteria:
-Completeness and quality of the application
-Budget including sources and uses
-Grant management experience
-Past performance
-Ability to operate or carry on project with a reduced amount of funds
-Performance metrics
-Duplication of services
-Ability to serve Aurora residents
City staff also completed good standing checks with the City’s Division of Revenue and Collections, State of Illinois, Internal Revenue Service, and federal debarment registry to confirm each applicant’s funding eligibility.
This Amendment will amend the City’s down payment assistance program changing its scope of work and reprogram CDBG funds to accommodate the amended scope of work.
DISCUSSION:
Recommendations for Substantial Amendment 2025-#2 were directly informed by staff analysis of submitted applications alignment, all of which are recommended to align with the City’s Consolidated Plan’s goals and objectives. Substantial Amendment 2025-#2 funding recommendations and applicant summaries can be found in Exhibit A. The Amendment’s proposed HOME Resale and Recapture Policy can be found in Exhibit B. Essentially, the Amendment (Exhibit C) will result in the following the re/allocation of CDBG, HOME, and HOME-ARP funds: approximately $67,000 in CDBG funds, $1,525,000 in HOME funds, and $505,000 in HOME-ARP funds.
Substantial Amendment 2025-#2 Recommendations
CDBG:
CDBG funding in the amount of $66,626.94 has been recommended to complement the City administered HOME funded down payment assistance program, providing closing-cost assistance in the form of an up to $5,000 grant.
HOME:
Two housing development activities have been recommended for HOME funding for a combined total of $1,525,000. The Neighbor Project (TNP) ($500,000) and Habitat for Humanity of Northern Fox Valley (HFHNFV) ($725,000) will provide rental housing and home ownership opportunities, respectively. Each of these set preliminary recommendations will require additional review and would require an additional approval by City Council in the form of a redevelopment agreement.
Three hundred thousand ($300,000) has been recommended for the City’s Down Payment Assistance which will provide up to $20,000 deferred loans for homebuyers at or between 30-80% AMI. Program administration funds in the amount of $20,000 will be divided equally to fund two HUD-certified homebuyer counselor activities. To qualify for funding, Down Payment Assistance beneficiaries are required to participate in a HUD-certified homebuyer counseling program.
Per HUD, the City must have a Resale and Recapture Policy in place to ensure that affordability will be maintained for HOME-assisted homeownership units. In keeping with this, Staff drafted has drafted a HOME Resale and Recapture Policy for review and approval.
HOME-ARP Funding:
The City received a total of two (2) applications for HOME-ARP TBRA funding. One of the two application’s were ineligible for funding, so only one application had been preliminarily recommended for funding. Five Hundred Thousand ($500,000) had been preliminarily recommended for Hesed House to administer the HOME-ARP TBRA Program, but has now withdrawn their interest from this funding. The City will offer this opportunity again for 2026 to potentially find a partner with the experience and capacity to administer this program.
To fund TBRA and to reflect a $4,094 increase to the City’s HOME-ARP allocation (HUD notice received 5/22/25), an amendment to the City’s HOME-ARP Allocation Plan is also submitted for review as follows:
|
City of Aurora |
Funding Amount |
Percent of the Grant |
Statutory Limit |
|
Supportive Services |
$1,365,000 |
50% |
|
|
Acquisition and Development of Non- Congregate Shelters |
$0 |
0% |
|
|
Tenant Based Rental Assistance (TBRA) |
$500,000 |
15% |
|
|
Development of Affordable Rental Housing |
$675,000 |
25% |
|
|
Non-Profit Operating |
$0 |
0% |
5% |
|
Non-Profit Capacity Building |
$0 |
0% |
5% |
|
Administration and Planning |
$290,797 |
11% |
15% |
|
Total HOME ARP Allocation |
$2,730,797 |
100% |
|
A summary of each application is included as Exhibit A.
For reference, the following documents are attached:
Exhibit A – CDBG, HOME, and HOME-ARP Recommendation and Applicant Summary Project List
Exhibit B – Substantial Amendment 2025-#2 (includes HOME Resale and Recapture Policy);
Exhibit C – Draft Block Grant Working Committee Minutes
Exhibit D – Homebuyer Assistance Small Repair Program Policies and Procedures
Exhibit E – Homebuyer Assistance Program up to 80% Policies & Procedures
Exhibit F – Homebuyer Assistance Program up to 120% Policies & Procedures
Exhibit G – Homebuyer Agreement Template
In accordance with the City of Aurora’s Citizen Participation Plan and the requirements of the U.S. Department of Housing and Urban Development Department, the 30-day notice for Substantial Amendment (2025-#2) were posted in the Beacon News on June 10, 2025. The Substantial Amendment was also made available on the City's website and at the City’s three library branches. A public hearing was conducted on July 7, 2025, at 1:00 p.m. to provide the public with an opportunity to comment on Substantial Amendment 2025-#2.
IMPACT STATEMENT:
Since its inception in 1974, the CDBG program has invested over $55 million dollars in the City of Aurora. These funds have supported streets and infrastructure, housing development, job training, youth development, homeless services, historic preservation, and senior services among others. Since becoming an entitlement community under the HOME program 15 years ago, the City has allocated approximately $8 million in HOME funds to rehabilitate its aging housing stock, create affordable rental housing units, and explore additional uses of HOME funds to further expand affordable housing throughout the City. HOME-ARP funds in the amount of $2,730,797 support investments in providing affordable housing opportunities and supportive service activities for residents who are homeless or at risk of homelessness.
RECOMMENDATIONS:
Staff recommends approval of the request authorizing approval of Substantial Amendment (2025-#2). Staff also requests authorization for the City's Mayor, Chief Community Services Officer, Director of Community Services, or their designees to execute any contracts as well as any other documents associated with the Substantial Amendment (2025-#2) including but not limited to HUD's program administration requirements.
Please do not hesitate to let me know if you have any questions, 630-256-3321 or ragonac@aurora.il.us.
cc: Public Health, Safety and Transportation Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing Approval of Substantial Amendment 2025-# 2 to Re/Allocate Prior Years' Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and HOME Investment Partnerships - American Rescue Plan (HOME-ARP) Funding.
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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 has initiated numerous community development and
housing activities through funding by the U. S. Department of Housing and Urban Development (HUD); and
WHEREAS, the City of Aurora has a Consolidated Plan and Annual Action Plans which have been adopted by the City Council and which have defined priorities for CDBG, HOME, and HOME-ARP funding; and
WHEREAS, the City of Aurora is required by HUD to complete a Substantial Amendment to reallocate its unexpended prior program year resources; and
WHEREAS, Substantial Amendment (2025-#2) will define priorities for community development funding; and
WHEREAS, the City of Aurora's Block Grant Working Committee recommended adoption of Substantial Amendment 2025-#2 at its July 1, 2025 meeting; and
WHEREAS, funding will be available in the 2025 City Budget CDBG program account (221-1330-801-43-series), HOME program account (213-1330-801-43-series); HOME-ARP program account (213-1330-331.11-19-series), HOME-ARP program account (213-1330-801.44-60 series), and HOME-ARP program account (213-1330-801.44-61 series).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: City Council of the City of Aurora, Illinois, finds as facts all of the preamble recitals of this Resolution and hereby approves a resolution authorizing Substantial Amendment 2025-#2, and authorizes the City's Mayor, Chief Community Services Officer or their designees to execute any contracts as well as any other documents associated with these approvals, including but not limited to HUD's program administration requirements