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Concur with the Housing Programs Advisory Committee and Approve the Resolution Authorizing a Single-Family Housing Rehabilitation Loan (SFR-104)
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Introduction
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The purpose of the Single-Family Housing Rehabilitation (SFR) Loan Program is to address and correct deteriorated homes throughout the Village. The eligible homeowner requests a deferred loan of $14,614 from the Village.
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Recommended Action
Staff is recommending that the Board approve the resolution.
Prior Board Action
There is no prior Board action associated with this item.
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) no-interest loans of up to $25,000, deferred for repayment for 20 years; or 2) an emergency loan that provides no-interest loans of up to $5,000 per unit, deferred for repayment for 5 years. Emergency loans are for the correction of single emergencies, code violations of an emergency nature, or life-endangering circumstances. A minimum contingency of 10% is added to any 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 of work with a line-by-line item cost estimate. Using the scope of work, the homeowner invites contractors...
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