Submitted By
Ahmad M. Zayyad, Deputy Village Manager/Interim Director of Development Customer Services
Reviewed By
Erin E. Baynes, Assistant to the Village Manager
Agenda Item Title
Title
A Resolution Authorizing a Single-Family Housing Rehabilitation Loan and a Lead Hazard Reduction Grant (SFR-102)
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Overview
Overview
The purpose of the Single-Family Housing Rehabilitation (SFR) Loan Program is to address and correct deteriorated and blighted homes throughout the Village. The eligible homeowner requests a deferred loan of $25,000 and a lead hazard reduction grant of $22,860 from the Village.
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Recommendation
Recommendation
Adopt the Resolution
Background
Using Community Development Block Grant (CDBG) funding from the U.S. Department of Housing and Urban Development (HUD), the Single-Family Housing Rehabilitation (SFR) Program provides loans to low and very low-income owners/occupants of single-family properties to correct documented or potential code violations, address deficiencies, and make general property improvements. There are two loan products to support program goals: 1) A deferred-payment loan program that provides no-interest loans of up to $25,000, deferred for repayment for 20 years; and 2) an emergency loan program that provides no-interest loans of up to $5,000 per unit, deferred for repayment for 5 years, for correction of single emergencies, code violations of an emergency nature, or life-endangering circumstances. A minimum contingency of 10% is added to the loan principal to cover any unforeseen conditions and is removed from the loan if not used.
The primary eligibility criteria for all loans are as follows: 1.) The household income must be within HUD income limits; 2.) There must be adequate equity; 3.) Rehabilitation work must be primarily code-related, basic repair work. For each eligible applicant, the Neighborhood Services Department determines financial eligibility, inspects the property, and prepares a detailed scope ...
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