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TO: Mayor John Laesch
FROM: Chris Ragona, Director of Community Services, Community Services Department
DATE: September 3, 2026
SUBJECT:
A Resolution Authorizing Approval of Substantial Amendment 2026-#2 to Re/Allocate Prior Years' HOME Investment Partnerships (HOME) Funds, Revise the HOME Maximum Purchase Price Limits, and Revise the HOME Program Resale and Recapture Policy.
PURPOSE:
Staff requests approval of a Substantial Amendment (2026-#2) to the City’s 2026 Annual Action Plan for submission to the U.S. Department of Housing and Urban Development (HUD) for the following federal programs: Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME). The purpose of this amendment is to reallocate HOME funds to a new activity, update the City’s Resale/Recapture Policy, and revise the City’s current maximum purchase price limits for new construction affordable housing.
The 2026 Annual Action Plan “(2026 Action Plan”) is part of the 2025-2029 Consolidated Plan, which helps states and local jurisdictions assess affordable housing and community development needs and market conditions and make data-driven, place-based investment decisions. The 2026 Action Plan continues to stress the following objectives:
1. Expand and Maintain the Affordable Housing Stock.
2. Ensure the Housing Stock is Safe, Healthy, and Accessible for all Residents.
3. Public Service Assistance.
4. Enhance and Improve Access to Amenities
5. Program Administration (CDBG and HOME)
Additionally, the City must also modify its 2024, 2025, and 2026 Action Plans identified as Substantial Amendment 2026-#2 to reallocate HOME funding to this new activity which was previously provided preliminary set aside funding through the City’s Affordable Housing Solutions (AHS) fund (Gaming Tax funds).
BACKGROUND:
This Substantial Amendment will approve three separate items:
Item #1 - Reallocate set aside funding awarded to The Neighbor Project - The Neighbor Project was previously awarded a set aside of $320,000 to construct new affordable housing on vacant lots for qualifying homebuyers. This Substantial Amendment changes the source of funds from the City’s Affordable Housing Solutions funds to HOME funds. Pre-development work is ongoing and a formal agreement will be presented to City Council at a later date if the project moves forward. A project summary can be found in Exhibit A.
Item #2 - Update the maximum allowed purchase price for new construction affordable housing funded with CDBG or HOME funds - HUD establishes maximum purchase limits generally on an annual basis for existing homes as well as homes defined as new construction. City staff conducted a local market study and determined the established new construction maximum limits for Aurora’s four county area was significantly higher than the limits released by HUD. The table below reflects the current limits and the proposed new limits based in current market conditions and past sales over the last year:
|
State |
County Name |
1-Unit (new construction current) |
1-Unit (new construction current proposed) |
|
IL |
Kane County |
$371,000 |
$420,850 |
|
IL |
DuPage County |
$399,000 |
$487,150 |
|
IL |
Will County |
$387,000 |
$582,120 |
|
IL |
Kendall County |
$350,000 |
$403,655 |
A full summary on the data collected and methodology can be found in Exhibit B. City staff does not anticipate providing assistance to homes with values over $500,000, however, these new limits do allow for more flexibility in providing down payment assistance should applicants be able to demonstrate they will have an affordable monthly payment.
Item #3 - Update the City’s Resale/Recapture Policy - The City of Aurora, as an entitlement of HOME funds, must establish a Resale/Recapture Policy to outline how funds are managed for homebuyer activities such providing downpayment assistance and constructing new affordable housing. In preparation for providing HOME funds to Habitat for Humanity of Northern Fox Valley’s new construction affordable housing project (set aside approved by City Council on February 24, 2026, R26-0451), the policy has been updated to establish a revised process when a home is resold and clarifies how to calculate a fair return on investment. Changes to the policy can be found in Exhibit B.
DISCUSSION:
Amendments to the 2026 Annual Action Plan are based on staff’s analysis of application alignment with the 2025-2029 Consolidated Plan and modifications needed in order to move forward on new affordable housing development.
In accordance with the City’s Citizen Participation Plan and the requirements of the U.S. Department of Housing and Urban Development Department, the 30-day notice for this Substantial Amendment to the 2026 Action Plan were posted in the Beacon News on August 16, 2026. Each document was also made available on the City's website and at the City’s three library branches. A public hearing will be conducted on September 4, 2026 at 1:00 p.m. to provide the public with an opportunity to comment on Substantial Amendment #2 to the 2026 Action Plan.
IMPACT STATEMENT:
Since its inception in 1974, the CDBG program has invested over $57 million dollars in the City of Aurora. These funds have supported a wide range of community needs, including public facility improvements, housing development, job training, youth programming, domestic violence services, homelessness prevention, historic preservation, and senior services. Since becoming an entitlement community under the HOME program 15 years ago, the City has allocated approximately $9 million in HOME funds to rehabilitate its aging housing stock, create affordable rental housing units, and explore additional uses of HOME funds to further expand affordable housing throughout the City. This proposed amendment to the 2026 Action Plan will allow the City to further affordable housing for homebuyers.
RECOMMENDATIONS:
Staff recommends approval of the request authorizing approval of Substantial Amendment 2026-#2 to Re/Allocate Prior Years' HOME Investment Partnerships (HOME) Funds, Revise the HOME Maximum Purchase Price Limits, and Revise the HOME Program Resale and Recapture Policy. 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 Substantial Amendment #2 to the 2026 Action Plan including but not limited to HUD's program administration requirements.
Please do not hesitate to let me know if you have any questions, 630-256-3321 or ragonac@aurora.il.us.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Authorizing Approval of Substantial Amendment 2026-#2 to Re/Allocate Prior Years' HOME Investment Partnerships (HOME) Funds, and Revise the HOME Maximum Purchase Price Limits, Revise the HOME Program Resale and Recapture Policy.
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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 of Aurora's Block Grant Working Committee recommended adoption of the Substantial Amendment 2026-#2 at its August 10, 2026 meeting; and
WHEREAS, the Substantial Amendment 2026-#2, will allow the City to further affordable housing for homebuyers and define priorities for community development funding; and
WHEREAS, funding will be available in the 2026 City Budget, HOME program account (213-1330-801-44-series).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: City Council of the City of Aurora, Illinois, finds as facts all of the preamble recitals of this Resolution and hereby approves a resolution authorizing Substantial Amendment 2026-#2 , and 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 Substantial Amendment 2026-#2 including but not limited to HUD's program administration requirements.