Arlington Heights Pushes Envelope with HUD

Arlington Heights trustees approved a plan Monday to grant 14 local agencies and charities Community Development Block monies despite the U.S. Department of Housing and Urban Development’s recommendation it cut down the list of recipients.

Representatives from local agencies and charities, from an agency that helps sexually abused children to a homeless shelter, gave presentations during a public hearing on the Community Development Block Grants (CDBG). 

HUD administers the grant program and has not announced the amount of CDBG the village will receive for 2013. There is some concern the funding may be reductions as the federal government looks to make cuts in the debt ceiling, Village Manager Bill Dixon said.

At this point, Arlington Heights can fund $360,230 in CDBG requests. It received 19 requests totaling $483,698. Among the requests was from Faith Community Homes that helps provide rent and mentoring to low income families. It asked for a $400 grant.

But HUD doesn’t want the village to fund small grants because the impact is negligible and fewer, larger grants would have greater impact, staff said.

Under HUD’s directive, Faith Community Homes would lose its funding.

Village trustees faced two options Monday. Option 1: pass a plan that would grant Faith Community Homes, along with two other agencies/charities, a higher amount than requested to meet HUD’s requirements. Option 2: pass a plan that cuts small CDBG grants. Faith Community Homes and Northwest CASA, which helps sexual assault victims, would lose funding.

“I would not be in favor of option 2. You need to send HUD a message from this board,” Trustee Joseph Farwell said. “HUD people are not hearing what we just heard. They don’t see how matching funds can make or break places like Faith Community Homes.”

“It’s sometimes prudent to test guidelines and see how much pushback you get,” Farwell said.

Trustees agreed with Farwell and voted yes on Option 1.

Arlington Heights needs to publish its plan. The village board plans to take another vote on the measure March 4. The plan will then go to HUD for approval, said Charles Witherington-Perkins, director of planning and community development.

Monday’s meeting was difficult, said Mayor Arlene Mulder.

“It’s painful and sad that there’s such great need,” she said. “On the flip side, it’s good to hear about all the organizations dedicated to helping all these people with needs.”