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 (SPR-028).
End
Overview
Overview
The purpose of the Small Rental Properties Rehabilitation Loan Program is to address and to correct deteriorated and blighted homes throughout the village, to provide affordable rental housing, and to improve the energy efficiency of small rental properties. The eligible owner of this four unit property is requesting a forgivable rehab loan of $20,000 from the Village.
Body
Staff Recommendation
HPAC and the Neighborhood Services Division recommend approval of this $20,000 forgivable loan.
Fiscal Impact
This rehab loan of $20,000 will reduce the remaining budgeted balance of $70,001 to $50,001. This program was budgeted under the Community Development Block Grant (CDBG) Fund, account no. 2083-46201-664-585617.
Background
The Neighborhood Services Division 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, (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; (2) 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 their units to households earning below 80% of the Area Median Income (AMI), a household of four would earn below $57,900 per year.
SRP-028 is a four unit b...
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