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La Grange Park updates funding for central sewer separation project, removes HUD grant over compliance concerns
Summary
Trustees approved a funding restructure for the central area sewer separation project after staff identified federal compliance conflicts in combining a HUD community grant with other awards; changes free up a net $225,000 and preserve MWRDGC and DCEO funding.
Village staff told trustees the central area sewer separation project’s funding package was revised after a review identified compliance conflicts that would arise from combining a HUD community project grant with other state and MWRDGC funds. The board voted unanimously to adopt a resolution updating the project funding and to proceed with bidding.
Staff recounted prior awards and adjustments: an $850,000 HUD community project grant received through Congressman Chewy Garcia’s office; Metropolitan Water Reclamation District of Greater Chicago (MWRDGC) funding of $4 million through the Stormwater Partnership Program; and several Illinois Department of Commerce and Economic Opportunity (DCEO) grants, including a $500,000 award previously in the project and two recent $250,000 grants. Final engineering also removed six planned permeable green intersections, cutting that portion of the budget by about $575,000.
Because HUD treats a project as federally funded in its entirety for compliance purposes, staff determined in consultation with the village engineer and attorney that combining HUD requirements with other grant programs would create incompatible obligations under recent federal guidance (Executive Orders referenced in the packet). To resolve the conflict, staff recommended removing the HUD award from the project and reallocating other grants and sewer fund contributions so the scope can proceed without the compliance constraint; those changes produced an estimated net funding improvement of $225,000 for this project.
Engineer Lucas and staff said the revised design maintains necessary conveyance capacity. Trustees noted the long history of the project and expressed appreciation for staff and external partners. The resolution (updating Resolution 25‑09) directs staff to begin bidding the revised scope and to continue coordination with the village’s HUD grant administrator about whether the HUD funds could be redirected to another eligible project.
The resolution passed unanimously. Staff will return with updates on bidding outcomes and any reallocation of grant funds.
