cover
TO: Mayor John Laesch
FROM: Chris Ragona, Director of Community Services, Community Services Department
DATE: August 13, 2026
SUBJECT:
A resolution to approve a reallocation of $370,000 in Affordable Housing Solutions (AHS) funding to the City of Aurora's Choose Aurora Down Payment Assistance Program.
PURPOSE:
To reallocate $370,000 in Affordable Housing Solutions (AHS) Funding consisting of $320,000 from The Neighbor Project's Infill Construction Project along with an additional $50,000 that was previously unallocated to the City of Aurora's Choose Aurora Down Payment Assistance Program for homebuyers up to 120% Area Median income (AMI, $145,800 for a family of 4).
BACKGROUND:
The City's Affordable Housing Solutions (AHS) fund supports activities dedicated to preserving and creating local affordable housing. It was established from nine key strategies identified in the City’s 2025-2030 Affordable Housing Strategy. The nine recommendations can be found in Attachment A.
As part of 2026 staff recommendations, $320,000 was originally set aside for The Neighbor Project's Infill Construction Project aimed to construct affordable single family housing on vacant lots for first time homebuyers. City staff is working on pre-development planning, however implementation is not expected to begin until spring 2027. For this reason, city staff has recommended to change the source of the set aside for The Neighbor Project proposal to HOME funding and reallocate AHS funding in the amount of $320,000 to increase the budget of Choose Aurora to allow additional homebuyers up to 120% Area Median income (AMI, $145,800 for a family of 4 to apply for assistance). The remaining $50,000 would come from an unallocated line item within the AHS budget. The proposed updated recommendations can be found in Attachment B.
The City of Aurora's Choose Aurora Down Payment Assistance program initially allocated $600,000 earlier this year consisting of $300,000 in federal funds and $300,000 in AHS funds coming from the City's Gaming Tax. Since the revised program was released, a total of 34 applications have been received with 15 applications approved. With several applications pending, by increasing the budget, city staff projects that an additional 15-20 households can access Choose Aurora in 2026. 100% of funds are provided in the form of a deferred loan and must be paid back when the home is sold or is no longer the primary residence of the household. The Choose Aurora Flyer can be found in Attachment C.
.
DISCUSSION:
Safe, decent, and sanitary affordable housing remains out of reach for many residents of Aurora as well as households across the country. The Choose Aurora Program provides gap financing to ensure an affordable payment is established so homebuyers can grow savings, purchase goods and services, and reduce the total households defined as cost burdened.
Account numbers where funds have been requested for 2026 budget: AHS: 215-1330-463.50-50: $370,000.
IMPACT STATEMENT:
Reallocating $370,000 in AHS funding from The Neighbor Project's Infill Construction Project and unallocated line item in AHS to the Choose Aurora Program will continue to provide opportunities for homebuyers up to 120% AMI.
RECOMMENDATIONS:
Staff recommends to approve a resolution to reallocate $370,000 in Affordable Housing Solutions (AHS) funding to the City of Aurora's Choose Aurora Down Payment Assistance Program.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution to approve a reallocation of $370,000 in Affordable Housing Solutions (AHS) funding to the City of Aurora's Choose Aurora Down Payment Assistance Program.
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 staff recommendations of reallocating AHS funds to the Choose Aurora Program; and
WHEREAS, funds are requested in the 2026 budget in the following accounts: AHS: 215-1330-463.50-50: $370,000; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: subject to the approval of this item, $370,000 of AHS funding will be reallocated for the Choose Aurora Program to continue to provide home ownership opportunities for home buyers seeking to make Aurora their home.