TO: Mayor Thomas J. Weisner
FROM: Daniel Barreiro, Chief Community Services Officer
DATE: October 22, 2013
SUBJECT: title
Resolution Accepting an Illinois Housing Development Authority (IHDA) Grant in the Amount of $279,300 to Fund a First Time Homebuyer Acquisition and Rehabilitation Program and Authorization to Execute Agreements with IHDA and the Joseph Corporation to Implement the Program
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PURPOSE:
To obtain the City Council's approval of a proposed Resolution that would authorize the following:
1. The receiving of $279,300 in grant funds from the Illinois Housing Development Authority (IHDA);
2. Authorize an Agreement with IHDA to fund a down payment grant and rehabilitation soft loan program;
3. Authorize an Agreement with Joseph Corporation in an amount not to exceed $274,300 to administer a loan and grant program for housing down payment and rehabilitation assistance in the City's Neighborhood Revitalization Strategy Area (NRSA) and CDBG eligible census tracts;
4. Authorize the City's Neighborhood Redevelopment Manager to execute any documents necessary to implement the above grant, with the concurrence of Corporation Counsel.
BACKGROUND:
In May of this year, Neighborhood Redevelopment Division Staff assisted the Joseph Corporation to complete an application to IHDA for a soft loan program that offers up to $25,000 in soft loan financing for low and moderate income homebuyers in the City's NRSA to purchase and rehabilitate their first homes. This program will make forgivable grants and loans to homebuyers for acquisition and rehabilitation of vacant properties first in the NRSA, and secondarily in CDBG eligible census tracts. Eligible borrowers will receive a maximum amount of $25,000 for down payment, closing costs and rehabilitation assistance. Grant amounts for down payment and closing costs are limited to $3,000 for low-income households and $5,000 for very low-income households. Loan amounts to the borrower will vary, b...
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