Waukegan CDBG asks city for $400,000 to speed housing-rehab work as federal aid falls

Community Development Block Grant officials told the Waukegan City Council on Aug. 4 they are asking the city for $400,000 to expand the program that repairs single‑family homes for low‑income owners.

The request comes after federal Community Development Block Grant (CDBG) funding was reduced for program year 2025 and after the department said it received a new $360,000 grant from the Illinois Housing Development Authority to supplement work locally.

CDBG compliance coordinator Cynthia Alexander Jackson told the council the department traditionally has been funded entirely by HUD and that the city’s help would allow staff to move more cases off its multi‑year wait list.

"We received a grant, from the state of Illinois, from the Illinois Housing Development Authority, which is $360,000," Jackson said during the presentation. She added: "As of this very moment, we have not received a contract from HUD nor do we have access to the funds for program year 2025."

Why it matters

Council members were shown before‑and‑after photos of projects: widened bathroom doorways for wheelchair access, repaired roofs, rebuilt kitchens and exterior work that resolved repeated code violations. Jackson said the program prioritizes life‑safety emergencies and "substantial" code‑violation projects and that the department currently has 82 homes on its waiting list.

Jackson said the CDBG program uses liens to discourage resale of rehabilitated houses: "That lien would stay on your house after 5 years. 50% of that lien is forgiven. And then after 10 years, the other, 50% is forgiven." She also noted the program's administrative cap: "For HUD, we can only do 20% for admin, and we are at 18.3% already."

Details of the request and staff answers

- Funding: The department asked the council to approve $400,000 in city funds to expand housing rehabilitation capacity. Jackson said IHDA awarded $360,000 and HUD allocations for 2025 were reduced; the city money would be used to increase the number of rehabs and make a part‑time rehab coordinator full time so cases move faster.

- Per‑unit cap and reach: Jackson said HUD rules allow up to $50,000 per home in many cases, and that the $400,000 would allow the program to assist roughly 8–15 homes depending on work needed: "we spend up to $50,000 per home. So depending upon what type of work needs to be done, we could spend as little as $10,000…" (Jackson).

- Eligibility and the waiting list: Jackson said the published waiting list contains households that have passed an initial screen but not the full income documentation step. "We have 82 homes on our current waiting list, and it's been taking us about 2 years to work through that list," she said. Some named aldermen said they could personally vouch for seniors on the list who need repairs.

- Program income and oversight: Jackson said recovered lien payments (program income) are recycled into the program. When asked how the city will ensure federal requirements are respected if city dollars are used, Jackson and staff said funds would be tracked separately by source and, where possible, HUD guidelines would be followed for parity of treatment.

- What the grant cannot do: Jackson said HUD rules do not permit spending on tree removal unless the tree caused damage to a house; house exterior repairs and siding are eligible, but routine landscaping or tree removal is not.

Council response and next steps

Several council members pressed for budget detail before a final vote. Alderman Keith Martinez framed the request from a humanitarian perspective, saying he personally knows seniors waiting for work: "I look at that at humanitarian side of it… I can vouch for specifically for my waiting list because I've been in her house and I've seen the damage" (Martinez).

Council members asked for a line‑item breakdown showing how much of the $400,000 would fund direct rehab work versus personnel and administrative costs. Jackson said HUD rules limit administrative expenses to 20% and that CDBG's current admin draw is about 18.3%; she offered to supply the finance breakdown before the council's vote.

The council did not vote on the request on Aug. 4. Jackson asked members to consider the item at the next meeting and said staff would provide the detailed personnel and allocation numbers requested by aldermen.

Ending

CDBG staff said they will provide the detailed budget split and program income history before the council acts. Jackson closed by stressing the neighborhood effect of individual rehabs: fixing a house, she said, "benefited the entire block because now they no longer have an eyesore on their block."