Village approves 2025 CDBG annual action plan, five-year consolidated plan and modified single-family rehab repayment terms

The Planning, Building & Zoning Committee approved the Village of Hoffman Estates’ 2025 Community Development Block Grant (CDBG) annual action plan and the 2025–2029 consolidated plan on Aug. 4 and also approved a CDBG agreement with Northwest Housing Partnership to continue the single-family rehabilitation program with modified repayment terms. Staff told the committee the village’s 2025 allocation for the annual action plan is “just under $230,000,” roughly $10,000 less than the prior year. Under HUD rules, staff said the village will fund two new projects in 2025 (one infrastructure project and administration), while continuing existing partners and projects such as the Community Action Center (CAC) and single-family rehabilitation through Northwest Housing Partnership. To increase resident participation in the rehab program, staff recommended changing the loan repayment terms. The new schedule retained a 0% interest loan but phases repayment forgiveness over time: full repayment for 0–5 years, 50% repayment beginning in year six, and full forgiveness after 15 years. Staff said the adjustment is modeled on neighboring municipalities’ programs and is intended to generate more interest without reducing program income controls required by HUD.