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 Authoring the Execution of a Loan Commitment and Agreement for the Property Located at 501-505 Madison Street (SRP-035)
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 $15,000 from the Village.
Body
Staff Recommendation
Staff agrees with the Housing Programs Advisory Committee recommendation to approve this $15,000 forgivable loan.
Fiscal Impact
This rehab loan of $15,000 was allocated under the Community Development Block Grant (CDBG) budget. $90,000 in funds were allocated to Small Rental Rehabilitation loans in the FY2018 budget. As of now, $90,000 of these funds remain available. Once these funds are expended, $75,000 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 their units to households earning at or below 80% of the ...
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