Committee approves reallocation and earmarks affordable-housing and opioid funds, approves seven funding opportunities

The Public Health, Safety and Transportation Committee on Aug. 26 approved a package of funding recommendations that reallocates prior Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME) and American Rescue Plan funds and advances seven new grant opportunities including housing and opioid use disorder programs.

Chris Vergona, director of community services, told the committee the city reviewed dozens of applications and is proposing a mix of federal and local funding to support housing, tenant assistance and recovery services. “The total funding request was over $13,000,000 and we are recommending around $6,000,000,” Vergona said.

The committee approved three linked resolutions on the agenda (items 25-0539, 25-0540 and 25-0541) that together authorize the substantial amendment and the project recommendations from year one of the Aurora Affordable Housing Fund and the city’s opioid-use-disorder grant round. Committee members voted to pass the items sequentially; each motion carried on an affirmative voice vote.

Why it matters: the actions reallocate previously awarded entitlements and set aside money for specific programs the city says respond to urgent housing and behavioral-health needs. Vergona said the city will use federal entitlement grants, the newly created Aurora Affordable Housing Fund and other sources to support the proposals and to seed future rounds of competitive funding.

Key program recommendations and clarifying details - Tenant-based rental assistance (TBRA): Vergona described a TBRA pilot modeled on the Aurora Housing Authority approach intended to assist households by subsidizing the portion of rent above 30 percent of income. The city projected assisting about 18 households for roughly a year and a half but reported only two applications were received in 2025; one was denied and one partner later declined. Vergona said the city will offer the TBRA opportunity again in 2026. - Habitat for Humanity set-aside: The committee approved a preliminary earmark from HOME funds for a Habitat project described as supporting five HOME-assisted households within a larger 17-home new-construction development. Vergona emphasized the award is a set-aside subject to underwriting, environmental review and a redevelopment agreement to be returned to council for approval later this fall. - CHDO (Community Housing Development Organization) set-aside: The Neighbor Project applied for HOME CHDO funds to renovate recently acquired property at 1–9 South View Street, add a community basement space and convert units to accessibility standards. Vergona said staff hopes to invest the $500,000 earmark in that project pending further review. - Down-payment assistance changes: The committee approved proposed guideline revisions that would raise maximum client assistance to $26,000, split into (a) a $3,000–$5,000 closing-cost grant, (b) up to $20,000 in down-payment assistance delivered as a deferred loan repayable when the property is no longer the borrower’s primary residence, and (c) a $1,000 pre-closing repairs grant. Vergona said income eligibility would increase up to 120% of area median income (AMI) — the presentation gave an illustrative figure of about $143,000 for a family of four — and the program will retain an 80% AMI set-aside for low-income buyers. Vergona also said home-buyer education will be required for all participants. - Repair-grant concern: Committee members raised concerns that a $1,000 repair grant may be insufficient for common pre-closing items such as GFCI outlets, minor electrical repairs or paint. Vergona acknowledged the concern and said staff will capture data and could increase the repair component; he indicated the policy and procedures manual can be updated to adjust the amount. - Tenant placement assistance pilot: The committee approved $100,000 from the Aurora Affordable Housing Fund to pilot a tenant placement assistance program with Hope Fair Housing, targeting households with prior evictions, criminal records or other barriers; staff estimated the pilot could help about 20 households, subject to demand. - Opioid use disorder grants: Vergona recommended $344,000 in the first round of opioid-use-disorder grants drawn from Illinois opioid remediation funds the city is receiving. He said the city had about $700,000 on hand from initial distributions and expects additional, year-by-year payments from the state settlement. Vergona said the funded nonprofit activities will focus on treatment, supporting people in treatment, linkage to care, overdose prevention and training and research; he noted 12 broad allowable uses in the settlement but said all uses must tie back to opioid remediation and be reported.

Process and next steps: Vergona said staff will present the recommendations to the Committee of the Whole before the full City Council and then begin executing projects and completing underwriting and environmental reviews for set-aside transactions. He said formal redevelopment agreements, monitoring plans and payback terms (for deferred loans) will return to the council later this year.

Discussion vs. decision: The committee’s vote advanced staff recommendations as described. Several items (for example, the Habitat and Neighbor Project set-asides) were expressly approved only as preliminary earmarks pending underwriting, environmental review and formal agreements; those agreements will require subsequent council action. Committee members asked that the proposed community resource coordinator — one of nine recommendations tied to the Aurora Affordable Housing Fund listed in staff materials — be removed from the menu of immediate recommendations because staff is not proposing funding for that position at this time.

Speakers and sources: The report and questions on these items came primarily from Chris Vergona, director of community services, and from committee members (Aldermen present). Amy Monroe and Adam Grubbs were noted as staff reviewers; Michael (executive director, Hope Fair Housing) was present in the audience and available for questions. Vergona provided the program details and timelines cited above.

What the committee approved (formal actions): The committee voted to approve the three resolutions on the agenda related to the reallocation and project recommendations (items 25-0539, 25-0540 and 25-0541). Staff will bring back redevelopment agreements, underwriting results and required environmental reviews for council approval where noted.

Outlook: Vergona said staff will release a 2026 call for projects in early September, expect another large pool of applications, and return recommendations to the council in winter 2025–2026 for further allocations and project approvals.