Elyria holds first public hearing on 2025 CHIP application; owner-occupied rehab recommended

Elyria’s Community Development and Finance committees held a joint public hearing on Monday, March 31, 2025, on the city’s application for the 2025 Community Housing Impact and Preservation (CHIP) program, with staff saying the application is due June 18 and asking the committees to treat the application as an emergency to meet the deadline.

The CHIP program uses state HOME funds to support housing activities such as owner-occupied rehabilitation, rental rehabilitation, homeownership assistance and tenant-based rental assistance. Community Development Manager Mona Almaybaiad said Elyria typically receives about $250,000 and that the city plans to prioritize owner-occupied rehabilitation and funding for administration pending the next public hearing.

The manager told the committee that owner-occupied rehabilitation can cover major systems — “electrical, plumbing, heating systems, roofing, walls, and floors” — and that under CHIP the maximum available per owner-occupied unit is $85,000, compared with the city’s Community Development Block Grant (CDBG) dollars that typically provide up to $20,000 per household. “The CHIP grant can provide up to 85,000 dollars to address multiple issues in the home,” she said.

The manager also described other CHIP activities and why Elyria has historically avoided rental rehabilitation: rental rehab requires a 15-year affordability period, ongoing income verification for tenants and a repayment requirement to the state if an income-qualified tenant is not in place for an 18-month window. “...the rental rehabilitation part of it is...a risky program for the city to apply for,” the manager said, noting monitoring and potential paybacks as principal concerns.

On tenant-based rental assistance (TBRA), the manager said the program subsidizes monthly rent for income-qualified households so tenants generally pay no more than 30% of adjusted gross income and that Elyria has in the past partnered with the Lorain Metropolitan Housing Authority on TBRA. She said the city previously allocated $15,000 for a TBRA effort but providers used only $5,000 of that amount.

Council members pressed staff on paperwork and monitoring requirements. Council member Mrs. Saworka asked whether staff capacity exists to manage the documentation and income verification required for long-term affordability monitoring; the manager said the city would likely recommend funding administration and private owner-occupied rehabilitation at the next hearing and that rental rehabilitation would not be recommended at this time.

Council member Mrs. Mitchell asked whether the $85,000 ceiling applies per home. The manager confirmed that $85,000 is the current maximum per owner-occupied unit but noted the city would not necessarily award the maximum amount to every household, adding that at $85,000 apiece a $250,000 allocation would fund only two homes.

Questions also addressed lead service lines and plumbing: staff said county lead-remediation funds exist and recommended residents pursue that funding where appropriate, though CHIP funds can also address lead issues within a home.

The committees held the first public reading and established a second public hearing for May 27, 2025, with final consideration slated for the City Council meeting on June 2, 2025.

The manager said staff will return May 27 with a final list of activities the city intends to include in the application. No formal appropriation or award was approved at the March 31 hearing.

Ending: The committees will reconvene the CHIP discussion at a second public hearing on May 27, then consider final action June 2; staff asked the committees to treat the application as an emergency to meet filing deadlines.