Submitted By
Tammie Grossman, Director of Development Customer Services
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Awarding a Small Rental Property Rehabilitation Loan and Authorizing the Execution of a Loan Commitment and Agreement for the Property Located at 615 South Maple Avenue (SRP-034)
End
Overview
Overview
The purpose of the Small Rental Properties Rehabilitation Loan Program is to address deteriorated and blighted homes throughout the Village, and to provide affordable rental housing. The eligible owner of this three unit multi-use property is requesting a forgivable rehabilitation loan of $24,999 from the Village.
Body
Staff Recommendation
Staff agrees with the Housing Programs Advisory Committee recommendation to approve this $24,999 forgivable loan.
Fiscal Impact
This rehab loan of $24,999 was allocated under the 2017 program year Community Development Block Grant (CDBG) budget. $90,000 in funds has been allocated to Small Rental Rehabilitation loans in the FY2018 budget (GL account 2083-46201-101-585617). As of now, $75,000 of these funds remains available. Once these funds are expended, $50,000 will remain available.
Background
The Development Customer Services Department administers the Small Rental Rehabilitation Loan Program, which was established on November 1, 2010 and funded with Community Development Block Grant (CDBG) funds. The Program is open to rental buildings with seven or fewer units. The Program has two major purposes: (1) upgrade the physical conditions of small rental buildings; and (2) expand the housing choices of renters to encourage economic and racial diversity. The Program has two types of assistance: (1) forgivable loans which are limited to $5,000 per unit; and (2) a Marketing Services Agreement for the Oak Park Regional Housing Center to affirmatively market the units in the building. In exchange for the forgivable loan funds, owners agree to match the loan funds by 25% and to rent at least 51% of...
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