Okahumka Rosenwald School restoration stalled; county asks applicant to reapply or seek alternative funding

Housing and community services staff told Lake County commissioners on Sept. 23 that the long-running restoration of the Okahumka Rosenwald School and a proposed adjoining community center has stalled and is at risk of losing the county’s Community Development Block Grant (CDBG) allocation unless the applicant resolves permitting and procurement issues.

Marie Bridal Kareem, director of housing and community services, reviewed the project history and financials. The community group originally sought county support for a three-phase project (structural stabilization, historic restoration of the school and a new ADA-compliant community building). The project later consolidated phases and the county awarded about $287,310 in CDBG funds for the scope submitted in 2023. Bridal Kareem said the state historic preservation grant and a National Trust award were part of the funding package and that roughly $124,972 of the state award had already been expended; the state was reviewing an additional reimbursement request for $249,945.

County staff said the project has not completed required site-plan approvals with planning and zoning and that the county has not yet been reimbursed through HUD for work under the current subrecipient agreement; HUD had flagged the project in its system because no CDBG drawdowns had been recorded and the contract was approaching its December 2025 completion date.

Bridal Kareem said the applicant asked the county to pay the CDBG award to the contractor upfront; staff reminded the board that CDBG is a reimbursement program and that the county’s agreement requires documentation. Staff described the choices discussed with the applicant: 1) seek additional state or legislative funding; 2) reduce the project scope to complete the historic building and a small restroom facility as a higher-priority, lower-cost phase and reapply for future CDBG cycles; or 3) rescind the award and have the applicant reapply in a later funding round.

Architects and contractors who have volunteered reduced-fee work addressed the board to say they had cut fees and would further adjust drawings and bids to lower cost. Chip D'Amico, an organizer for the project, and local supporters urged the county to extend the contract and work through permitting issues; several residents and historical preservation advocates asked commissioners for help to complete the project.

The board and staff agreed to arrange a follow-up meeting among the applicant, housing and community services, planning and zoning and the county attorney’s office to review outstanding site-plan comments and next steps. Commissioners did not vote to rescind the award at the meeting; staff said they had recommended rescission as an administrative option and asked that the applicant reapply in the spring funding cycle if the county did not extend the contract or secure additional funds.

What’s next: County staff will meet with the applicant and planning/zoning and the county attorney to identify whether the project can resolve outstanding site-plan and permitting issues and to explore options to preserve the CDBG award. If the applicant cannot meet HUD timing or documentation requirements, staff may recommend rescinding the award and allow re-application in the next CDBG cycle.