Submitted By
Jonathan Burch, Assistant Village Manager/Neighborhood Services Director
Reviewed By
Erin E. Baynes, Assistant to the Village Manager
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 1017 North Harlem Avenue (SRP-049)
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Overview
Overview
The purpose of the Small Rental Properties Rehabilitation Loan Program is to address deteriorated and blighted homes throughout the Village and provide affordable rental housing. The eligible owner of this mixed-use property with two residential units requests a forgivable rehabilitation loan of $10,000 from the Village.
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Recommendation
Recommendation
Adopt the Resolution.
Background
The Neighborhood Services Department administers the Small Rental Rehabilitation Loan Program, which was established on November 1, 2010, and is 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 includes two types of assistance: (1) forgivable loans limited to $5,000 per unit; and (2) a Marketing Services Agreement with the Village's designated marketing agent 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 lease at least 51% of their units at rents affordable to households earning at or below 80% of the Area Median Income (AMI) for two years.
Located at 1017 N Harlem Avenue, SRP-049 is a two-unit property with two rental units. As required by CDBG regulations, one of the rental households qualifies as low-income. A lead inspection and risk assessment were not required since the total federal funding is limited to $5,000 ...
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