Committee authorizes up to $661,000 for housing rehabilitation; staff outlines eligibility and loan structure

The Evanston HCDC voted Dec. 16 to authorize up to $661,000 of CDBG funding for the city’s housing rehabilitation program, which staff described as a long‑running partnership between the City and a community partner (identified in the transcript as SIPA/SEPA) that focuses on life‑safety and code repairs.

Staff said the program provides 0% deferred loans that are repaid when a title transfers or the owner sells; borrowers must be at or below 80% of area median income to qualify. Staff cited typical maximum loan amounts in the presentation as $50,000 for single‑family homes and $20,000 for condominiums and said the application estimates a total program budget of about $1.6 million including prior‑year funds and program income. Staff stressed that using a revolving loan fund helps sustain program capacity because repayments create program income the city can reuse; converting to fully forgivable grants would reduce long‑term sustainability unless alternative ongoing funding streams (for example, a long‑term TIF allocation) are identified.

Committee questions and staff answers - Heirs and transfers: If an owner dies and the property transfers, the inheritor may reapply and must income‑certify; if the inheritor qualifies the deferred loan can remain deferred until they sell. - Wait list: Staff said the current active wait list is relatively short after recent outreach and cleanup of stale entries. - Multifamily: Staff said they plan to open a multifamily application (spring/summer 2026) with requirements that 51% of units in a project rent to income‑eligible tenants; typical multifamily rehab would focus on roofs, HVAC and other building systems rather than interior upgrades.

Program details cited in the meeting (as stated by staff) - Income eligibility: households at or below 80% AMI. - Typical maximum loan: $50,000 (single‑family) and $20,000 (condo), per transcript text. - Funding request: up to $661,000 of CDBG for the program (including program management costs). - Program total (application): approximately $1,600,000 (includes prior‑year funds and program income).

Next steps Staff will proceed with program management and the application process as authorized and provide follow‑up reporting; the committee requested more frequent updates on outstanding loan balances and program activity than the historical annual report.