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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 remaining $18,804 balance on a loan issued in 2001 through the former Community Development Rehabilitation Loan Program. The original loan amount was $35,804, and the borrower has repaid $17,000 to date.
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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.
This is a request for forgive a Community Development Rehabilitation program loan. Historical program materials indicate that the Community Development Rehabilitation Loan Program provided financial assistance to income-qualified owner-occupants to correct code violations, address property deficiencies, and complete necessary residential improvements. The program later became the Village's Single-Family Rehabilitation Loan Program and is currently the Residential Rehabilitation Program. This loan was funded with Community Development Block Grant funds.
In 2001, two related family members took out Community Development Rehabilitation loans. One was an amortizing ...
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