Council hires MSA to write IHDA home-repair grant application, approves $6,500 contract

The Freeport City Council voted 6-2 on March 3 to hire MSA Professional Services to prepare an application for the Illinois Housing Development Authority (IHDA) Home Repair and Accessibility (HREP) grant program, approving a $6,500 contract to write and submit the proposal.

MSA’s Community Development Administrator Tara Walters told the council the HREP round opening now includes $16 million statewide and that applications for Freeport are due March 14. “My recommendation for how many homes I believe the City would be able to, you know, feasibly get done in 2 years would be 17 homes,” Walters said during the presentation.

The grant program provides funding for health-and-safety repairs and accessibility improvements for owner-occupied, low- and very-low-income homes. Under the program a single full-rehab award can cover up to $50,000 in construction costs plus project delivery (capped at 15 percent) and is structured as a five-year forgivable loan; a roof-only option covers up to $25,000 and is structured as a three-year forgivable loan. Walters and staff recommended the city request funding aimed at 17 full-rehab projects, a package the presentation estimated at $1,026,375 (approximately $850,000 for construction, $127,500 project delivery and $48,875 administration).

Why it matters: The program is intended to preserve affordable housing and keep low-income and mobility-impaired homeowners in place by paying for repairs the homeowners cannot afford. The IHDA scoring priorities include applicant capacity, a reasoned workplan and budget, demonstrated need and readiness to proceed — criteria Walters said the city must document in the application.

What presenters told the council MSA’s presentation outlined applicant eligibility, scoring criteria and the application timeline. Properties must be single-family, owner-occupied, current on mortgage, free of tax sales and certain liens, and meet IHDA property-value limits (Stevenson County’s existing-home limit was presented as $209,000). Income eligibility is measured with IHDA’s calculator; the program prioritizes households at or below 50 percent of area median income (AMI) and allows up to 80 percent AMI if demand requires it.

Walters said IHDA awards are competitive and the city may contract a third-party administrator if it lacks in-house capacity. She recommended the city apply for the “full rehab” project type to retain flexibility; projects that later qualify only for roof-only assistance can be reclassified.

Council questions and public comment Public comment included support from resident Wendy Slayton, who said the program would “improve quality of life” and help retain responsible homeowners. Alderman Stacy pressed staff on timing and the short window before the March 14 application deadline; Walters and other staff said they had circulated the funding notice in February and that the $6,500 fee would secure MSA’s grant-writing services on a tight schedule. Alderman Monroe confirmed MSA is a recommended third-party administrator based on prior work with the city.

Formal action and vote The council adopted a resolution to contract with MSA Professional Services for grant-writing services in the amount of $6,500. The motion, made by Alderman Parker and seconded by Alderman Sellers, passed 6-2 (Parker, Shadle, Sellers, Clem, Monroe and Simmons — aye; Stacy and Sanders — no).

Clarifying details recorded at the meeting - Application due: March 14, 2025. - Round funding available statewide: $16,000,000. - Recommended city request: 17 homes; estimated total request $1,026,375 (construction $850,000; project delivery 15% = $127,500; administration 5% = $48,875). - Assistance per home: up to $50,000 (full rehab) or up to $25,000 (roof-only); project delivery and admin caps described above. - Income prioritization recommended: households at or below 50% AMI prioritized; fallback to 80% AMI if insufficient eligible applicants. - Property requirements: owner‑occupied, single‑family, current on mortgage, clear title (no mechanics or tax liens), property-value limit for existing homes presented as $209,000.

Next steps Staff will return with a contract and, if the council executes the MSA agreement, MSA will prepare and submit the IHDA application and, if awarded, administer the program either through city staff or a third-party administrator per the grant agreement.