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TO: Mayor John Laesch
FROM: Chris Ragona, Director of Community Services, Community Services Department
DATE: July 2, 2025
SUBJECT:
A Resolution Approving Project Recommendations Funded from Year One of the Aurora Affordable Housing Fund in the Amount of $400,000.
PURPOSE:
On behalf of the Block Grant Working Committee (BGWC), Staff requests approval for 2025 Projects funded by the Aurora Affordable Housing Fund (AAHF) by resolution. This approval is necessary in order to award and process 2025 projects
BACKGROUND:
2025 is the first year in which the AAHF will provide funding to a variety of programs that preserve and create affordable housing in the City of Aurora. This fund was created based on nine (9) recommendations identified in the city's affordable housing strategy document completed in 2024. Additional information on each of the nine recommendations identified in the strategy can be found in Exhibit A. This first year of the AAHF will primarily focus on recommendations #7, #8, and #9 by first establishing an affordable housing fund, creating a new program to assist tenants in finding housing, and enhancing the City's existing Down Payment Assistance (DPA) Program.
Aurora Tenant Assistance Placement (ATPA) Program
The ATPA Program was designed to provide flexible funding to prospective tenants seeking housing within the City. In a competitive rental market with few vacancies, households seeking to find a home are often overlooked if they have a lower credit score, a prior eviction, are currently homeless, have non-traditional income such gig work or non-salary pay, and other barriers that prevent them from being selected. By contracting with trusted housing agencies who can advocate on behalf of households who face challenges in their housing searches, the housing agency can offer incentives to landlords such as additional security deposits, one time upfront payments, or other flexible payments depending on the circumstances. Federal funds are not as flexible with allowable program activities, so utilizing the City fund allows City housing partners to create solutions on a case-by-case basis while satisfying the ATPA Program's policies and procedures.
Partner solicitation opened on March 3, 2025, and closed on March 28, 2025. For 2025, the total funding available is $200,000. City staff outreach efforts included notifications to prospective applicants. The following table outlines the City's outreach efforts:
|
Outreach Opportunity |
Date |
|
Pre-Application Announcement Email - Notice #1 |
3-3-2025 |
|
Beacon Newspaper Advertisement |
3-6-2025 |
|
Community Resource Team Email |
3-6-2025 |
|
Community Resource Team Social Media Post |
3-6-2025 |
|
Pre-Application Announcement Email - Notice #2 |
3-18-2025 |
|
Final Reminder Regarding Application Due Date |
3-26-2025 |
|
Application Due Date |
3-28-2025 |
Under each email notification, an estimated 540 representatives from non-profit agencies, elected officials, advisory boards, interested businesses, and residents of the City were provided with information regarding the City's five specialized grant opportunities: the City of Aurora Opioid Use Disorder Grant (OUD), a Request for Qualification for a HUD Certified Housing Counselor, Community Housing Development Organizations (CHDO) Housing Activities, ATPA Program, and a Tenant Based Rental Assistance (TBRA) Program. The City also published an advertisement and press release in The Beacon News. The ATPA Program, and other specialized grant opportunities were also advertised utilizing the City's social media accounts.
The ATPA Program funding round closed on March 28, 2025, with two applicants requesting a total of $200,000. Out of these two applicants that were preliminarily recommended, one applicant has withdrawn from this funding, making the new amount recommended as $100,000.
Community Services Department, Community Development Division staff reviewed and scored each application to focus on the following criteria:
-Experience administering opioid related programs.
-Completeness and quality of the application.
-Budget including sources and uses.
-Past performance.
-Ability to operate or carry on project with a reduced amount of funds.
-Performance metrics.
-Duplication of services.
-Pre-existence of services.
-Ability to serve Aurora residents.
City staff also completed good standing checks with the City’s Division of Revenue and Collections, State of Illinois, Internal Revenue Service, and federal debarment registry to confirm each applicant’s funding eligibility. Pre-application meetings were completed, and additional research was conducted to confirm the accuracy of the applicants’ described service areas and outcomes. After a review of each application, City staff organized projects by the requested amount, funding availability, and funding proposal quality. For 2025, the ATPA Program received a total of 2 applications; funding is recommended at full request for both applications. A summary of each application received, the funding requested, and funding recommendations have been attached (Exhibit B). The TPA Program Guidelines and Subrecipient Agreement Template are also attached (Exhibits D and E, respectively).
It is anticipated that approximately 30-40 household will be assisted.
Choose Aurora Down Payment Assistance Program
The Choose Aurora DPA Program has been offered to first time homebuyers for the past ten years. In recent years, changes to market conditions have significantly reduced the number of clients that have been able to qualify for the program with zero clients served so far in 2025.
City staff has also received feedback from applicants, lenders, realtors, and other stakeholders on how to enhance the program to qualify more applicants. The table below outlines the proposed changes to the program:
|
Current Program Guidelines |
Proposed Guideline Changes |
|
Maximum Award - $5,000 Grant |
Up to $27,000 in the form of deferred liens and grants |
|
First time homebuyers only |
All income qualified homebuyers |
|
Income up to 80% MFI ($89,700 for a family of 4) |
Up to 120% - ($143,880 for a family of 4) |
|
Maximum purchase prices |
No maximum purchase prices |
|
Homebuyer education not required for all clients |
Homebuyer education required for households earning at or below 120% MFI |
|
No pre-closing repair grant |
Up to a $2,000 grant to repair items identified in home inspection |
Funding for Choose Aurora will come from three sources:
Community Development Block Grant (closing costs) - Approximately $50,000 available
Home Investment Partnerships Program (HOME) (DPA) - Approximately $300,000 available
AAHF (DPA) for income eligible applicants between 30 - 120% AMI - approximately $300,000 available
The total investment in Choose Aurora is approximately $650,000, of which $300,000 will be funded by the Aurora Affordable Housing Fund. To qualify for funding, Down Payment Assistance beneficiaries will be required to participate in a HUD-certified homebuyer counseling program. The City anticipates assisting approximately 30-40 households.
DISCUSSION:
Both programs will require underwriting to determine eligibility, reporting, and compliance documents similar to the requirements of grants funded by CDBG.
Account numbers where funds have been requested for 2025 budget: AAHF: 215-1330-463.50-50: $400,000.
IMPACT STATEMENT:
Year One of the AAHF will support agencies that provide services to residents seeking housing and also enhance the Aurora Choose Aurora DPA Assistance Program
RECOMMENDATIONS:
Staff recommends adoption of this Resolution authorizing Project Recommendations for Year One of the AAHF in the Amount of $400,000
cc: Public Health, Safety and Transportation Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Approving Project Recommendations Funded from Year One of the Aurora Affordable Housing Fund in the Amount of $400,000.
body
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 of Aurora's Affordable Housing Fund will preserve and expand affordable housing; and
WHEREAS, the Aurora Affordable Housing Fund will help serve hundreds of people; and
WHEREAS, the financial support of local partners and residents is critical to continue to provide a wide range of affordable housing programs and services; and
WHEREAS, the Block Grant Working Committee has reviewed the 2025 Aurora Affordable Housing Fund projects and made recommendations for 2025 funding; and
WHEREAS, funds are requested in the 2025 budget in the following accounts:
AAHF: 215-1330-463.50-50: $400,000
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: subject to the approval of this item in the 2025 budget, the 2025 Aurora Affordable Housing Fund projects including funding for tenant placement assistance ($100,000) and down payment assistance ($300,000) are approved in the amount of $400,000 total and incorporated as part of the 2025 City of Aurora Annual Budget and authorizes the City's Mayor, Chief Community Services Officer or their designees to execute any contracts as well as any other documents associated with these approvals, including but not limited to HUD's program administration requirements.