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TO: Mayor John Laesch
FROM: Chris Ragona, Director of Community Services
DATE: October 7, 2025
SUBJECT:
A Resolution authorizing the City to accept a grant award of $2,000,000 from the State of Illinois Community Development Block Grant - Coronavirus (CDBG-CV) Healthy Houses Program to preserve up to six-unit (per site), landlord-owned residential properties for low- and moderate-income residents, and encourage neighborhood revitalization with an emphasis on maintaining health and safety.
PURPOSE:
To obtain City Council approval of a grant acceptance for the Healthy Houses Program to fund the installation and/or replacement of entire Heating, Ventilation and Air Conditioning (HVAC) Systems in single and multi-family, low- and moderate- income rental housing units.
BACKGROUND:
The Illinois Department of Commerce and Economic Opportunity (DCEO) offered a unique, one-time funding opportunity to provide Community Development Block Grant - Coronavirus (CDBG-CV) Healthy Houses Program grants for housing projects which preserve single and multi-family, landlord owned, low- and moderate- income units, up to six units total, and encourage neighborhood revitalization with an emphasis on health and safety. On October 22, 2024, City Council approved City staff's grant application submittal to the DCEO (R24-351).
DISCUSSION:
This $2,000,000 CDBG-CV grant will assist eligible landlords and property owners by providing funding for partial or total HVAC system replacements (includes electrical and plumbing necessary to modernize the HVAC units) in approximately 100 to 150 low- and moderate-income (LMI) rental housing units. The program is limited to properties with six or fewer units (per site) that are located within the City's corporate limits and owned by City-licensed landlords. Landlords will be required to submit an application with occupant information to confirm eligibility (at least 51% of their tenant households must be LMI). Per State budget thresholds, $50,000 of this $2,000,000 grant has been set aside for program administration costs which could include a third-party administrator to assist with various aspects of the program (see Exhibit B - Grant #20-303001 Budget).
As a result of this project, the City will provide landlords/property owners of affordable housing units with the opportunity to improve the quality of life, safety and health for the City's low to moderate income tenants through the installation of HVAC systems. This HVAC rehabilitation effort will improve the City residents' housing air quality, increase energy efficiency, and reduce utility bills.
The referenced Grant Agreement (attached as Exhibit A) has been reviewed by the Legal Department, and no concerns were identified.
The revenue accounts for this project will be determined by the Community Development Division and the Finance Department.
IMPACT STATEMENT:
This Resolution will allow the City of Aurora to utilize funding from the Illinois Department of Commerce and Economic Opportunity for the CDBG-CV Healthy Houses Program.
This funding will pay for HVAC upgrades to preserve low- and moderate- income, landlord-owned single- and multi-family housing (up to six units). The City will administer the awarded grant funds through the Community Development Division in the same manner as it administers the City's CDBG entitlement funds. Community Development staff are currently developing the guidelines for this housing rehabilitation program and will ensure that all requirements comply with HUD regulations.
RECOMMENDATIONS:
Recommend to approve a Resolution authorizing the City to accept a grant award of $2,000,000 from the Illinois Department of Commerce and Economic Opportunity (DCEO). Staff also requests authorization for the City's Mayor, Chief Community Services Officer, Director of Community Services, or their designees to execute any contracts as well as any other documents associated with this grant, including but not limited to DCEO's CDBG-CV program administration requirements.
cc: Public Health, Safety, and Transportation (PHST) Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution authorizing the City to accept a grant award of $2,000,000 from the State of Illinois Community Development Block Grant - Coronavirus (CDBG-CV) Healthy Houses Program to preserve up to six-unit (per site), landlord-owned residential properties for low- and moderate-income residents, and encourage neighborhood revitalization with an emphasis on maintaining health and safety.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City was awarded a grant of $2,000,000 from the Illinois Department of Commerce and Economic Opportunity (DCEO) for the State of Illinois Community Development Block Grant - Coronavirus Healthy Houses Program Grant with no matching cost requirement.
WHEREAS, this grant will assist eligible landlords/property owners with replacement of partial or total HVAC systems in low to moderate income qualified rental units.
WHEREAS, the program is limited to properties with six or fewer units that are located within the City's corporate limits.
WHEREAS, the revenue account for this project will be determined by the Community Development Division and the Finance Department.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: the City is authorized to accept a $2,000,000 grant from the State of Illinois Community Development Block Grant - Coronavirus Healthy Houses Program with no matching cost requirement according to grant agreement #20-303001.
The City Council authorizes the City Clerk to update the Resolution upon notification from the Illinois Department of Commerce and Economic Opportunity (DCEO) of the official grant number.
The City Council authorizes the City's Mayor, Chief Community Services Officer, Director of Community Services, or their designees to execute any contracts as well as any other documents associated with this grant, including but not limited to DCEO's program administration requirements.