Submitted By
Jonathan Burch, Assistant Village Manager/Neighborhood Services Director
Reviewed By
Erin E. Baynes, Assistant to the Village Manager
Agenda Item Title
Title
A Resolution to Approve the Community Development Block Grant (CDBG) Energy Efficiency Program in Program Year 2024 Beginning October 1, 2024
End
Overview
Overview
Staff seeks approval of the Community Development Block Grant (CDBG) Energy Efficiency Program Guidelines to start a new energy efficiency grant program for households with low and moderate incomes.
End
Recommendation
Recommendation
Approve the Resolution.
Background
In 2021, the Village created three (3) residential energy efficiency programs using money from the Sustainability Fund. This suite of programs supported energy efficiency upgrades for multi-family buildings, small rental buildings, and single-family homes.
Building on the success of those programs, the Village of Oak Park CDBG Energy Efficiency Grant Program will provide financial assistance to owner(s)/applicant(s) who desire to reduce their home’s energy consumption. The Village of Oak Park intends to use Community Development Block Grant (CDBG) funds to administer this grant program for low- to moderate-income households. The funds will offset a portion of the expenses that a homeowner incurs to complete energy efficiency improvements. Energy efficiency upgrades lead to savings on utility bills, improved indoor air quality, improved home comfort, and reduced greenhouse gas emissions. Eligible homeowners may qualify for the program by providing proof of permanent property ownership, income eligibility, and completed energy upgrades. The program provides homeowners a maximum grant of $5,000 for energy efficiency improvements.
Under this grant program, supplies and installation costs for the following will be covered:
• Insulation
• Weather stripping
• Conservation costs for water and energy efficiency
• Energy-efficient lighting, including automatic light sensors or timed light sensors
• High-efficiency faucets
• Energy-efficient windows
• Electric heating, venting, and air conditioning (HVAC), such as heat pump installation and thermostat upgrades
• Upgraded electric water heaters
• Air sealing
This program implements Village Board Goals Sustainability & Resiliency, Priority 1: Implement Climate Action Plan, Revise the current Village’s housing rehabilitation programs to encompass electrification, renewable energy, climate resiliency, and health housing retrofits for highly vulnerable community members to maintain affordability.
These program guidelines allow staff to undertake the CDBG Energy Efficiency Program for the 2024 Program Year. The program year begins October 1, 2024. The Board’s approval of these guidelines will allow staff to begin this new program at the start of the 2024 Program Year.
Fiscal Impact
The Village is an entitlement community that receives an annual grant from the U.S. Department of Housing and Urban Development (HUD). Funding for this program would come from these HUD funds and this project is budgeted in the Program Year 2024 (October 1, 2024 - September 30, 2025) Annual Action Plan in the amount of $100,000. The Board approved the Program Year 2024 Annual Action Plan with RES 24-252.
DEI Impact
The Community Development Block Grant (CDBG) program requires that each activity funded, except for administration, meets one of three national objectives. The three national objectives are: 1) benefit to low- and moderate-income (LMI) persons; 2) aid in the prevention or elimination of slums or blight; and 3) meet a need having a particular urgency. An activity that does not meet a national objective is not compliant with CDBG requirements.
The Oak Park CDBG program focuses on the first national objective to benefit low-and moderate-income persons. This objective includes the following eligible activities: Area benefit activities (LMA), Limited Clientele Activities (LMC), Housing Activities (LMH), and Job Creation and Retention Activities (LMJ).
Alternatives
1. Alternative #1 - The Board can delay action to gain additional information or request additional program guideline refinement.
a. Advantages
§ Allows additional refinement.
§ Allows for additional feedback.
b. Disadvantages
• Delays start of the program.
Previous Board Action
• RES 24-252: A Resolution Approving the Final Program Year 2024 Action Plan for Federal Community Development Block Grant Funds and Submittal of the Plan to the United States Department of Housing and Urban Development
• RES 21-267: Multifamily Energy Efficiency Matching Grant Program
• RES 21-269: Energy Efficiency Small Rental Grant Program
• RES 21-276 Residential Energy Efficiency Matching Grant Program
Citizen Advisory Commission Action
These program guidelines were reviewed by the Housing Programs Advisory Committee (HPAC) at its July 17, 2024 meeting. These program guidelines were reviewed by the Energy and Environment Committee at their July 23, 2024 meeting. This program was included in the Program Year 2024 Annual Action Plan that was released for a 30-day public comment period on June 18, 2024.
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A