Cynthia Jackson, compliance coordinator for the city's Community Development Block Grant (CDBG) program, told the Community Development Committee the department is asking the city for funds to expand its housing-rehab work because federal funding has been reduced and the program's current staff cannot keep up with demand.

Jackson said the department received a $360,000 grant from the Illinois Housing Development Authority (IHDA) — its first from that state source — but that it has not yet received a HUD contract for program year 2025 and has been notified HUD funding will be reduced. The department reported 82 homes on its waiting list and that it currently takes roughly two years to reach a household on the list. To accelerate service, staff asked the city to provide additional money (committee discussion referenced a $400,000 request) so the department can increase a part-time rehab coordinator to full time and expedite roughly 15 additional rehabs, depending on work scope.

Jackson and other staff described who the program serves and how the funds would be used. Most clients are single-family, owner-occupied households; many are seniors on fixed incomes. The rehab program addresses emergencies (life-safety repairs such as roofing and sewer issues) and "substantial" projects that correct code violations. Staff explained program rules about funding sources: HOME funds are limited to substantial projects, HUD funds cover emergency work, and the department tracks funding sources separately to meet each program's requirements.

The department described its borrower-lien policy for rehab work: a lien placed on the property equals the value of the work, 50% of the lien is forgiven after five years and the remainder is forgiven after 10 years, unless the homeowner sells or vacates the property, in which case repayment is required. Staff said program income recovered from repaid liens is re-used in the program.

Committee members asked for more data about program administration, including how much program income has been recovered historically and the portion of the city request that would pay personnel versus direct rehab work. Jackson said HUD rules cap administrative spending at 20% and that the CDBG team already allocates about 18.3% to administration; she offered to obtain specific salary and finance figures for aldermen before they vote. Staff also clarified that HUD guidelines do not permit using CDBG funds for tree removal unless the tree had caused damage to a house (for example by falling on a structure).

Jackson said all public materials are available in English and Spanish and that the department will provide financial breakdowns and program-income figures on request.

Why it matters: The CDBG rehab program offers home repairs that address safety and habitability for low-income and often elderly residents. Committee members expressed support for helping seniors but also raised concerns about using city tax or special-fund dollars to expand a federal program when HUD allocations have been shrinking.

Next steps: Staff will provide more detailed budget and personnel information to aldermen ahead of the council vote; Alderman Hayes and staff agreed to meet to review open questions.

Provenance: the presentation began with Cynthia Jackson's remarks and continued through committee questions and closing remarks.