Title
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Concur with the Housing Programs Advisory Committee and Approve the Resolution Authorizing Housing Loan Forgiveness
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Introduction
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This item requests Village Board approval and authorization to forgive the outstanding balance, in the amount of $7,545.00, on a loan issued in 1994 through the former First Time Homebuyers Assistance Program.
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Recommended Action
Approve the resolution.
Prior Board Action
The Board has taken the following prior action(s):
* RES 24-298: A Resolution to Approve a Community Development and Housing Loan Forgiveness Policy
Background
Historically, requests to forgive, defer, or modify Village loans were considered on an individual basis without a formal application process or consistent evaluation standards. To create a clearer and more equitable process, staff developed the Community Development and Housing Loan Forgiveness Policy. The Village Board considered and adopted the policy on October 8, 2024, through Resolution 24-298. The policy establishes eligibility requirements, application procedures, evaluation criteria, advisory committee review, and a formal recommendation process while maintaining the Village Board's final decision-making authority.
In 1994, the applicant received a $7,545 loan through the First Time Homebuyers Assistance Program. The program provided down payment and closing cost assistance to income-eligible households through no-interest, deferred-payment loans with 30-year terms. The full $7,545 balance remains outstanding. The First Time Homebuyers Assistance Program operated from 1992 through 1995 and used Community Development Block Grant funds to provide down payment and closing cost assistance to income-eligible households. Assistance was structured as no-interest, deferred-payment loans with 30-year terms secured by a Trust Deed. The loan came due in August 2024. The loan remains outstanding and unpaid.
In the loan forgiveness application, the appli...
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