Submitted By
Tammie Grossman, Director Development Customer Services
Reviewed By
AMZ
Agenda Item Title
Title
A Resolution Approving an Amendment to the Funding Grant Agreement Between the Village of Oak Park and Oak Park Regional Housing Center Dated March 3, 2021 and Authorizing its Execution
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Overview
Overview
Pursuant to the Village Board’s direction at its June 7, 2021 meeting, an amendment to the 2021 Funding Grant Agreement between the Village of Oak Park and Oak Park Regional Housing Center (OPRHC) is hereby presented for the Village Board’s review and approval. The Amendment cures the event of default and releases $225,000 in 2020 funding being withheld under the terms of the 2021 Funding Grant Agreement due to the OPRHC’s breach of the 2020 Agreement and extends the due date for the 2020 audit from July 1, 2021, to November 30, 2021.
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Recommendation
Recommendation
Approve the Resolution
Fiscal Impact
The adopted FY 2021 Budget includes $600,000 in funding for the OPRHC (Account # 1001.46206.240.585652) which includes the 2021 budgeted amount of $300,000 for 2021 services and a carry forward of the 2020 allocation of $300,000 of unspent funds. At present, the Village has only paid $75,000 of the 2020 funding as directed by the Village Board. If this item is approved, staff will remit the outstanding $225,000 in 2020 funding to OPRHC and once invoiced will remit the first two-quarters of funding for 2021.
Background
The Village has funded the Housing Center since its creation in the 1970s. Historically, the Village supports OPRHC utilizing both General Revenue Funds and federal Community Development Block Grant (CDBG) funds to pay for specific projects of the Housing Center relating to the Multi-family Housing Incentives Program and also its general administration. Because the Housing Center provides services for CDBG and non-CDBG funded activities, it is necessary for the Village and the Housing Center to have separate agreements for the use of federal CDBG funds and local General Fund revenue.
After not receiving any documentation from the OPRHC for the entirety of 2020, on December 17, 2020, a notice of suspension of payments for thirty (30) days was issued to OPRHC. During this thirty (30) day cure period, OPRHC was to submit the following documents as required by the Agreement:
1. FY 20 monthly invoices pursuant to Section 3.1;
2. FY 20 third-quarter report pursuant to Section 4.0;
3. FY 19 audit pursuant to Section 11.1;
4. Profit and loss statement pursuant to Section 10.0; and
5. Program goal deficiencies pursuant to Section 4.0.
In a notice dated February 3, 2021, the Village advised the OPRHC that 2020 payments would be suspended pending further Board direction. OPRHC had not submitted a 2019 audit and an accurate 2020 profit and loss statement. Additionally, the OPRHC did not meet several program goals such as hiring a Development Coordinator, updating their strategic plan, establishing an online registration system and mobile application. The OPRHC also did not hold quarterly fair housing events due to the Covid 19 pandemic. The failure to provide an independent financial audit of 2019 prevented staff from recommending the Village issue any 2020 funding. The requirement for an Independent Audit and the delivery of the Audit to the Village in a timely manner plays a vital role in the public sector to ensure the public of the lawful use of its tax dollars. Without a presentation of the financial audit and profit and loss statements as found in the audit, Village staff would not recommend allocation of tax dollars.
On March 1, 2021, the Village Board approved the 2021 Funding Grant Agreement (2021 Agreement) and authorized the release of $75,000 of the 2020 funding levels upon execution of the 2021 Agreement and conditioned release of the remainder of the 2020 funds in the amount of $225,000 upon the presentation of the 2019 Audit and 2020 Financial Statements by April 15, 2021, a date agreed to by the OPRHC. The OPRHC did not provide complete versions of the requested documents until May 6, 2021.
Pursuant to Village Board direction, staff prepared an amendment to the agreement, curing the event of default and releasing $225,000 in 2020 funding being withheld under the terms of the 2021 Funding Grant Agreement due to the OPRHC’s breach of the 2020 Agreement and extends the due date for the 2020 audit from July 1, 2021, to November 30, 2021.
Alternatives
Defer action and seek additional information.
Previous Board Action
On June 7, 2021, the Village Board approved a motion to direct staff to prepare an amendment to the 2021 Funding Grant Agreement between the Village of Oak Park and Oak Park Regional Housing Center (OPRHC), releasing $225,000 in 2020 funding being withheld under the terms of the 2021 Funding Grant Agreement due to the OPRHC’s breach of the 2020 Agreement and extending the due date for the 2020 audit from July 1, 2021, to November 30, 2021.
It should be noted that the OPRHC has, in years past, failed to complete their audit report by the original required date. On October 31, 2019, the Village issued a notice informing OPRHC that staff would seek Village Board approval pertaining to the release of the suspended payments prior to the receipt of the 2018 audit. The Village Board approved a motion to waive the independent financial audit requirements of Section 11.1 of the 2019 Funding Grant Agreement until November 30, 2019 (original deadline of 06/30). The 2018 audit was submitted to the Village on November 25, 2019.
Citizen Advisory Commission Action
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Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A