Submitted By
Tammie Grossman, Director Development Customer Services
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Approving a Funding Grant Agreement Between the Village of Oak Park and the Oak Park Regional Housing Center in the Amount of $300,000 for Fiscal Year 2021 and Authorizing its Execution and Termination of the Fiscal Year 2020 Funding Grant Agreement for Default with Remedies Provided in the 2021 Agreement
End
Overview
Overview
The 2021 Funding Grant Agreement between the Village of Oak Park and the Oak Park Regional Housing Center (OPRHC) including a scope of services and program goals and measurements is presented for the Village Board’s review and approval, subject to resolution of all outstanding matters related to 2020 as detailed herein.
End
Recommendation
Recommendation
Staff recommends termination of the 2020 Agreement for default and incorporates steps to correct all outstanding matters by May 1, 2021 under the scope of the 2021 contract. Staff is additionally seeking Board concurrence on newly requested 2021 Contract with Scope of Services changes.
Fiscal Impact
This funding grant agreement covers monthly General Revenue partner agency funding. The CDBG subrecipient grant agreements are not presented here because the CDBG program year does not align with the Village's fiscal year. The CDBG projects for Program Year 2020, run from October 1, 2020 to September 30, 2021 and were presented to the Village Board in a separate agreement on September 16, 2020. Since the CDBG funding is only awarded through September 30, 2021, for the purposes of the General Revenue funding agreement, staff assumed a flat level of CDBG funding for the fourth quarter of 2021. Fourth quarter funding will be subject to the Village's future Federal CDBG funding award.
The Adopted FY 2021 Budget includes $300,000 in funding for the OPRHC (Account # 1001.46206.240.585652).
Consistent with Village staff, FY 2021 salary and benefit increases were eliminated for partners which receive a majority of funding from the Village (either for cost of living adjustments or merit tied to performance).
Background
Release of 2020 Funds:
As the Village Board is aware, a notice of suspension of payments for thirty (30) days was issued to OPRHC on December 17, 2020 in reference to its funding grant agreement for 2020. 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 deficicienceies 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 has 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 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 prevents staff from recommending the Village issue any 2020 funding. Staff is recommending a including a requirement in the 2021 agreement that the 2019 Financial Audit is due on or before April 15, 2021 in order to be eligible for funding in 2020 at a 75% level, if the 2019 Financial Audit provided between April 16, 2021 and May 1, 2021, the OPRHC would be eligible for funding in 2020 at a 50% level. Eligibility for funding is conditioned upon the submission of the the 2019 Financial Audit report and findings and a 2020 Financial profit and loss statement. If the 2019 Financial Audit report and findings are not provided on or before May 1, 2021, the OPRHC would forfeit the 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.
2021 Contract:
The Village has funded the Housing Center since its creation in the 1970’s. 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. This agreement is for the non-CDBG funded programs. However, the attached funding distribution schedule (Exhibit 1 of the agreement) delineates both CDBG and non-CDBG funding for informational purposes only.
The 2021 Funding Grant Agreement (2021 Agreement) also includes an Audit requirement. However, given the status of the 2019 Audit, the 2021 Agreement requires the resolution of all outstanding 2019 Audit matters prior to the payment of any 2021 funding and additionally provides for the completion of the 2020 Financial Audit by June 30, 2021 and delivery to the Village by July 1, 2021. In the event the 2020 Financial Audit is provided between July 2, 2021 and August 1, 2021, eligibility for funding will be reduced up to 50% of approved funding level or $150,000. Eligibility for funding is conditioned upon the timely submission of the 2020 Financial Audit report and findings. If the Audit is not provided on or before August 1, 2021, the OPRHC will not be eligible for 2021 funding.
The scope of services for 2021, as proposed by the Housing Center, is attached. Below is a summary changes:
1. Completion of a Strategic Plan with formed committees of consultants, staff and community stakeholders by July 31, 2021 (the 2020 agreement required the completion of a pro-bono strategic plan by June 1, 2020 but this was not completed).
2. $50,000 of the proposed 2021 funding is earmarked for the hiring of a Development Coordinator with the goal of reducing the Housing Center’s reliance on Village funding (the 2020 agreement included a clause, which the Housing Center requested to remove, that required the Village to only reimburse the actual expenses incurred pursuant to this particular staff position, up to $50,000).
3. Register 1,500 individuals for services in 2021 (the 2020 agreement required 2,000 registrants).
4. The Housing Center is proposing to partner with community agencies, such as Housing Forward, to assist clients with finding apartments as well as provide financial literacy for those clients that need financial education support (the 2020 agreement did not require this).
5. The Housing Center is proposing to re-launch its program, Neighbors Knowing Neighbors (NKN), to effectively work with distinct racial groups in Oak Park in an effort to address social unrest and injustices while creating a platform for community racial healing and transformation (the 2020 agreement did not require this).
6. Effectuate 250 affirmative moves in 2021 (the 2020 agreement required 375 affirmative moves).
7. Development of an online client management system by June 30, 2021 (the 2020 agreement required the development of the system by June 30, 2020).
Development of a mobile app for renters to access affirmative listings over time, with quarterly report check-ins (the 2020 agreement required the development of the app by September 30, 2020).
Alternatives
Defer action and seek additional information.
Previous Board Action
N/A
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A