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 (SFR-082)
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 homeowner is only requesting a deferred loan of $20,350.00 without the need for a lead hazard reduction grant as no lead was found in the risk assessment.
Body
Staff Recommendation
Approve the Resolution Authorizing a Single Family Housing Rehabilitation Loan for this one-unit, single-family residential property.
Fiscal Impact
Funding from the Village loan is from Fund 2020, the Community Development Block Grant (CDBG) Revolving Loan Fund which is comprised of loan repayments from prior applicants. This loan will reduce the $150,001.00 loan balance, by $20,350.00, to $129,651.00 (Account 2020-46206-101-585613).
Funding from the Village lead grant Fund 2083, the Community Development Block Grant (CDBG) Fund, is not being requested as no lead was found in the risk assessment.
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 any unforeseen conditions and is removed from the loan...
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