DuPage County preliminarily sets aside $2.4 million in HOME funds for 71‑unit Naperville senior/disability housing

DuPage County’s Community Development Commission approved a preliminary set‑aside of $2,400,336 in HOME funds for Gorman & Company LLC’s proposed Tower Court Residence, a three‑story, 71‑unit affordable rental development proposed at the southeast corner of Highway 59 and Third Street in the Will County portion of Naperville.

Julie, a county staff member, described the action as “strictly a preliminary set aside” and said the county will return with a conditional commitment once several contingencies are satisfied. County staff presented an overview of the development: 71 income‑restricted units for low‑income seniors (age 62+) and individuals with intellectual or developmental disabilities; an on‑site services partnership with Ray Graham Association; and a mix of one‑, two‑ and three‑bedroom units. Total estimated project cost is $28,710,024.

Financing discussed at the hearing included a bank mortgage ($3,246,000), Low‑Income Housing Tax Credits ($14,098,590), additional tax credit gap ($4,781,518), a deferred developer fee ($750,000), the county’s proposed HOME loan ($2,400,336), a Federal Home Loan Bank Affordable Housing Program grant ($2,000,000), and a city of Naperville seller’s note ($1,415,580). Staff noted that HOME underwriting in the conditional commitment will not assume the anticipated Section 811 project‑based vouchers in case they are not awarded prior to closing.

Mary, another county staff member who helped explain program rules, outlined required contingencies before a conditional commitment: approval of all other funding sources, completion of environmental review under 24 CFR Part 58, purchase of the site from the city of Naperville, further underwriting once all funding sources are secured, agreement on HOME loan terms, removal of local preference language from the purchase and sale agreement and tenant selection plan, and county approval of tenant selection, affirmative marketing, HOME unit leases and other required documentation. Mary also stated the county HOME units require a 20‑year regulatory affordability period.

Several commissioners questioned the project location and use of DuPage HOME funds in Will County. Mary and Julie explained that Naperville has elected to include its Will County areas in DuPage County’s HOME consortium allocation; as a result the city’s entire HOME allocation is administered with DuPage County so projects in Naperville (including the Will County portion) can be funded by DuPage HOME dollars. Commissioners raised concerns about prioritizing DuPage residents; staff responded that federal HOME rules do not permit residency requirements, though the tenant selection plan and state referral units were described as part of the project’s allocation strategy.

Why it matters: If advanced, the development would add 71 income‑restricted units for seniors and persons with disabilities under a 20‑year HOME affordability term for the county units and is intended to address local affordable housing supply. The preliminary set‑aside does not commit funds; staff will return with a conditional commitment only after the listed contingencies are met.

Ending: The commission approved the preliminary set‑aside. County staff will continue due diligence and return with a conditional commitment only if financing, environmental review and the other listed contingencies are satisfied.