Cook County Spends $13.5 Million To Buy Homeless Shelter Hotels In Evanston, Oak Park

CHICAGO — Cook County commissioners approved a plan to use more than $13 million in federal coronavirus relief dollars to purchase a pair of suburban hotels that were converted to homeless shelters during the pandemic.

In a unanimous vote at Thursday's board meeting, commissioners authorized a $7 million to the Evanston-based Connections for the Homeless, which has been operating a shelter while leasing out the Margarita Inn at 1566 Oak Ave. in Evanston, and $6.5 million to Maywood-based Housing Forward and the Oak Park Development Corporation, which plan to acquire and redevelop the Write Inn at 211 N. Oak Park Ave. in Oak Park.

The funding will come in the form of 30-year, no-interest loans using dollars allocated by the American Rescue Plan Act, or ARPA, the $1.9 trillion economic stimulus President Joe Biden signed into law seven weeks after taking office. Over the past three years, county officials have used other coronavirus relief funding to contribute to the cost of leasing the two hotels.

Cook County Department of Planning and Development Susan Campbell said county officials have been working on developing a multi-tiered approach to homelessness, even prior the pandemic.

"We are advocating for this vote so that we can secure the sites that we invested in already during the pandemic, so at least we have some sites for people to move into as we get into the winter," Campbell told commissioners at a finance committee meeting.

During the first wave of the COVID-19 pandemic in Illinois, the system of emergency shelters in Northern Illinois collapsed, with the temporary congregate shelters run by volunteers forced to shutter.

"In its place rose a new model of shelter, one in which comprehensive, dignity-based services are provided in a welcoming and healing environment," said Betty Bogg, CEO of Connections for the Homeless.

"In Cook County, five suburban shelter providers supported by the Alliance to End Homelessness in Suburban Cook County transformed suburban Cook County's decade old model of offering evening-only shelter in church and synagogue basements to one that was 24/7 and hotel-based," said Housing Forward CEO Linda Schueler.

In May, the Evanston City Council approved a special-use permit allowing for a permanent homeless shelter at the Margarita Inn, which Bogg said serves about 70 residents at a time.

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"Connections is proud to say that since the beginning of the pandemic, we have partnered with Cook County to deliver shelter services with this model in three different hotels and have delivered those services to over 450 county residents, more than 80 of whom were children under the age of 18," Bogg said.

"With this model our success rate and finding people a housing solution within the shelter is 80 percent. Our pre-pandemic rates hovered around 40 percent," she said. "Cook County's funding allowed us to do that."

Commissioner Josina Morita, who represents north suburban Cook County, said Connections was one of the few organizations operating with a "housing-first" model that takes in anyone who needs housing.

"There's not the pre-conditions that others oftentimes have. We understand why they do that but really appreciate the role that Connections plays in being a housing-first open door to anyone who needs support," Morita said. "I've heard firsthand testimonials, I've been to the site. I know it's been a long road in building community support, but there truly is community support for this project. And in partnership with Evanston really proud to support this this item."

Several commissioners whose represent south suburban Cook County questioned why the county has not yet found a suitable location for a permanent, hotel-based shelter in the Southland.

Commissioner Donna Miller said all but one of the top 11 municipalities where people request emergency homeless services are in the south suburbs.

"So when we hear that huge disconnect as to the need and then where the placement is, that's where there's so much concern." Miller said.

According to county officials, $29 million has been earmarked for a south suburban shelter and funding has been provided to lease out several south suburban hotels — but none have been found suitable for Cook County to buy and hand over to a nonprofit agency to operate.

"We have no proposals at all anywhere south of 87th Street, and that's where 50 percent of the need is," Miller said. "So we need to have higher intentionality and focus on what we're going to do about that, because winter is coming, for real."

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Karl Bradley, the county's deputy director of housing and strategic finance, said officials were looking to find a developer to assist in acquiring a south suburban shelter.

"There's a longer gestation period for development, if we have to go into retrofits or even new construction, so that may take us a little longer in the south suburbs," Bradley told commissioners.

While Evanston and Oak Park, wealthy communities known for their progressive politics, have permitted shelters around their central business districts, the often cash-strapped towns of the Southland have not been so eager.

"Municipalities have different reasons why they do hotels and they don't do hotels. There is a reliance on the hotel tax that comes out of these hotels for the annual budgets of municipalities in some cases, where some don't," Bradley said. "And they have the option, or want to, wait for that hotel to come back versus taking a non-taxable option at that location."

Commissioner Sean Morrison, the lone Republican on the 17-member Cook County board, asked about the annual operating cost of the two hotel-based shelters, with the Margarita Inn costing about $1.5 million a year and the Write Inn costing $2.3 million annually due to its on-site medical services.

Based on representations that the average shelter resident stays for about 8-10 months and hotel capacity, he estimated the hotels help about 160 people a year.

"So we're looking at roughly $21,000 a person, to provide this service for 8 to 10 months?" Morrison asked.

"Per room," Schueler said. "I would say that's per room."

Commissioner Stanley Moore queried Bogg about plans for keeping the hotel-based shelters operating. Bogg said Connections and Housing Forward were both provided with large increases in state funding in the recent budget signed by Gov. J.B. Pritzker and both raise significant private funding to assist with operations.

"Is the county going to own these hotels when this is over, or are you going to own these hotels?"

"We are," Bogg said.

"So we're purchasing these hotels for your organization?" Moore said.

"That's correct, in the form of a 30-year forgivable loan," Bogg answered.

"Wow," Moore said. "I didn't know that."

Earlier: Evanston Licenses Margarita Inn As First Permanent Homeless Shelter