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TO: Mayor John Laesch
FROM: Chris Ragona, Director of Community Services
DATE: March 13, 2026
SUBJECT:
A resolution authorizing the city to accept a grant award of $2,000,000 from the Illinois Department of Commerce and Economic Opportunity (DCEO) and to approve a Participation Agreement between the City of Aurora and Mutual Ground for renovations to the family shelter located at the campus of Mutual Ground.
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:
Mutual Ground has been providing critical services for victims of domestic violence, sexual violence and substance use for nearly 50 years in the City of Aurora. The need for domestic and sexual violence direct services has increased post-COVID. Clients are arriving at Mutual Ground with extremely complex situations which require additional counseling, advocacy and shelter. The emergency shelter is presently housed in a historic mansion built in 1853 that requires extensive updates, repairs and reconfigurations to be able to provide access shelter to more victims of domestic and sexual violence along with space to accommodate additional staff. Upon completion of the proposed project at Mutual Ground, there will be immediate benefit to those served. The table below outlines the number of persons staying at the shelter as well as the nights stayed. The number of clients staying at the shelter has reduced, however the number of nights stayed has significantly increased. There are lots of factors that can contribute to this, but the lack of affordable housing is contributing to longer stays which fills the shelter to maximum capacity which reduces the number of families that can stay at the shelter.
|
Year |
Nights of Stay |
Adults |
Children |
|
Pre-Covid July 2019- June 2020 |
9,468 |
135 |
108 |
|
July 2023 - June 2024 |
8,604 |
162 |
133 |
|
July 2024 - June 2025 |
12,775 |
126 |
102 |
DISCUSSION:
This grant will provide $2,000,000 in federal funding over 2 years to provide support to Mutual Ground. As a result of this project, the city is expected to benefit from this project by improving the shelter of Mutual Ground to provide temporary housing and concurrent supportive services to qualified homeless Aurora and residents from surrounding communities. The City will not incur any direct costs as a result of this grant award however it will sign a contract directly with the selected general contractor to perform the work. Procurement will follow all city guidelines and the lowest most responsible bidder will be presented to City Council for approval. Mutual Ground will assist in complying with state and federal regulations however the city will ultimately need to meet all requirements for state reimbursement.
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 rehabilitation of the Family Shelter at Mutual Ground.
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 will not be rehabilitated.
A 2026 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: $2,000,000.00.
RECOMMENDATIONS:
Recommend to approve a resolution authorizing the city to accept a grant award of $2,000,000 from the Illinois Department of Commerce and Economic Opportunity (DCEO) and to approve a Participation Agreement between the City of Aurora and Mutual Ground for renovations to the family shelter located at the campus of Mutual Ground.
cc: Public Health, Safety, and Transportation (PHST) Committee

CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution authorizing the city to accept a grant award of $2,000,000 from the Illinois Department of Commerce and Economic Opportunity (DCEO) and to approve a Participation Agreement between the City of Aurora and Mutual Ground for renovations to the family shelter at the Mutual Ground campus.
body
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
WHEREAS, the city was awarded a grant of $2,000,000 from the Illinois Department of Commerce and Economic Opportunity, and
WHEREAS, This project will benefit the City of Aurora by improving the family shelter of Mutual Ground 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 $2,000,000 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 2026 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.
RECOMMENDATIONS:
Recommend to approve a resolution authorizing the city to accept a grant award of $2,000,000 from the Illinois Department of Commerce and Economic Opportunity (DCEO) and to approve a Participation Agreement between the City of Aurora and Mutual Ground for renovations to the family shelter of the Mutual Ground campus.