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-075)
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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 $23,730 and a lead hazard reduction grant of $6,500 from the Village.
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Recommendation
Recommendation
Approve the Resolution.
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 $121,708 loan balance, by $23,730 ($175,000 original budget amount from the 2017 budget) to $97,978 (Account 2020-46206-666-585613).
Funding for the Village lead grant is from Fund 2083, the Community Development Block Grant Fund. This grant will reduce the $64,060 budget amount for Lead Hazard Reduction grants ($90,000 original budget amount from the Program Year 2016 budget) by $6,500 leaving $57,560 (Account 2083-46201-666-585612).
Background
Using 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 an...
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