Urbana commission certifies Habitat for Humanity as CHDO, authorizes $197,500 in HOME funds for five homes
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Summary
The Urbana Community Development Commission voted to certify Habitat for Humanity as a Community Housing Development Organization and to forward a HOME consortium funding agreement to City Council that would provide $197,500 for development of five affordable homeownership units and $30,000 in operating support.
The Urbana Community Development Commission voted to certify Habitat for Humanity as a Community Housing Development Organization (CHDO) and approved a resolution to authorize a HOME consortium funding agreement for five affordable homeownership projects.
At the meeting, staff explained that the HOME consortium (City of Urbana, City of Champaign and unincorporated Champaign County) designates a lead entity and that Urbana executes funding agreements for consortium projects. Staff said Habitat was the only applicant in the current funding cycle and requested $197,500 in development funds (a program set-aside) to support five homes, plus $30,000 in operating support for the organization. Three projects are located in Champaign and two in Urbana.
Chad Hoffman, executive director of Habitat for Humanity, described the organization’s homeowner model and schedule: “We apply for the total funds… it is important to us for building affordable housing in our community,” and said the program requires homeowner partners to complete volunteer hours and a financial education program. Hoffman said the HOME subsidy is “just a portion of what it cost us to build the house,” and that Habitat issues 0% interest mortgages to homeowners and uses mortgage receipts and donor funds to fill remaining gaps. “It is a 0% interest mortgage with Habitat,” he said.
Commissioners raised questions about long-term affordability and property tax pressures for Habitat homeowners. Commissioner Chris warned that Habitat homes can become the highest-valued houses in a neighborhood and that rising property taxes and insurance can strain low-income owners; staff and Habitat representatives acknowledged the concern and said they are coordinating with assessors and considering mortgage-term adjustments to help homeowners remain stable.
Staff noted project-level pro formas and schedules are included in the packet exhibits. Hoffman told the commission two homes are scheduled to start in March with completion expected in 2026, and the remaining three are slated to begin in summer/fall with completion in 2027.
Commissioner Patty moved to certify Habitat for Humanity as a CHDO and forward the resolution to City Council; Commissioner Chris seconded, and the motion passed. Later, the commission moved to authorize execution of the HOME consortium funding agreement for Habitat, with the same motion/second pattern; that motion also carried.
The approvals now go to City Council for final action before any agreements are executed. Staff emphasized the funding recommendation aligns with the Consolidated Plan goals for 2025–2029 and said they will continue to provide schedule and reporting updates to the commission.
