R2001-81 AUTHORIZING EXECUTION OF AGREEMENTS

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' � , Neighborhood Services Department Memorandum 01-31 DATE: A ril 12 2001 II' P � � TO: Honorable Mayor Howley and City Council FROM: Steve Garma ' Manager Reginald Fl e , Director—Neighborhood Services Dept. � Terry Cunning am—HOME Program Specialist�� SUBJECT: HOME Supportive Housing Project Allocations - FY01/02 SUMMARY RECOMMENDATION: Staff requests approval to help fund two supportive housing projects in the City of Decatur under the FY2001-02 U.S. Department of Housing and Urban Development (HUD) HOME grant program. Staff recommends approval of the resolution to allocate $63,000 to Dove, Inc. for permanent supportive housing for the homeless, and $50,000 to Heritage Behavioral Health Center for supportive housing for adults with mental illness. BACKGROUND: Dove, Inc. is applying on behalf of the Homeward Bound partnership and First Presbyterian Church, for funding to help with renovation of an apartment building at 240 W. Prairie. Homeward Bound has identified permanent supportive housing as the next component needed in the Continuum of Care of services to homeless persons. This project will provide 8 units of permanent supportive housing for persons participating in Homeward Bound's Transitional Housing Program. Funding for this project is being provided by First Presbyterian Church($200,000), the State of Illinois ($95,000), and the Illinois Housing Development Authority($300,000), and the proposed$63,000 in City HOME funds that will be used to replace windows, exterior doors, and interior banisters so as to abate lead-based paint hazards in the building, as required by the new HUD lead-based paint management regulations. Herita�e Behavioral Health Center is developing a new 18-unit apartment complex at 350 E. Grand Street,which will be occupied by adults with mental illness who are receiving treatment in their programs. Along with the recommended$50,000 HOME allocation, funding for construction of this project has been secured from HUD's "Section 811"funds and the Illinois Housing Development Authority. All of the residents would be low income. These projects are consistent with the City of Decatur's Consolidated Plan, and funding for them has been included in the City's annual Action Plan and proposal to HUD for FY2001/02 funding. They specifically address the needs outlined in priority areas 2 and 3 of the Consolidated Plan to � provide permanent supportive housing for the homeless and for persons with special needs. Both projects are consistent with the goals of, and eligibility guidelines for, the U.S. Department of Housing and Urban Development HOME program, to provide decent affordable housing to lower-income households. Greater details are attached.