Submitted By
Tammie Grossman, Director of Development Customer Services
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Authorizing A Single Family Housing Rehabilitation Loan And A Lead Hazard Reduction Grant (SFR-073)
End
Overview
Overview
The purpose of the Single Family Rehabilitation Loan Program is to address and to correct deteriorated and blighted homes throughout the village. The eligible homeowners are requesting a deferred loan of $24,999 and a lead hazard reduction grant of $21,340 from the Village.
Body
Staff Recommendation
Approve the resolution.
Fiscal Impact
Funding from the Village loan is from Fund 2020, the Community Development Revolving Loan Fund. This loan will reduce the $144,303.91 fund balance (as of May 23, 2017), by $24,999 to $119,304.91 (Account 2020-46206-101-585613).
Background
Using Community Development Block Grant (CDBG) funding, the Single-Family Housing Rehabilitation Program provides loans to low-and-very low-income owner/occupants of single-family properties to correct documented or potential code violations and deficiencies, and to make general property improvements. There are two loan products to accomplish program goals: 1) a Deferred-Payment Loan Program which makes no-interest loans of up to $25,000, deferred for repayment for 20 years; and 2) an Emergency Loan program which makes no-interest loans of up to $5,000 per unit, deferred for repayment for 5 years, for correction of single emergencies, code violations of an emergency nature, or life-endangering circumstances. A minimum contingency of 10% is added into the principal on the loan to cover any unforeseen conditions, and is removed from the loan if not used.
The primary eligibility criteria for all loans are: the household income must be within income limits set by the US Department of Housing and Urban Development (HUD); adequate equity; primarily Code-related and basic repair work. For each eligible applicant, the Neighborhood Services Di...
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