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Residents may soon see fewer vacant homes on the West Side thanks to $1 million authorized by the Chicago City Council to rehab homes and stabilize communities within the Chicago Central Park TIF District.
“This step we have taken is to spur development in our community. We have to reverse the damage caused by the recession and housing crisis,” 28th Ward Ald. Jason C. Ervin said in a press release.
“We see the economy improving, and this initiative will help to increase growth and create stable communities for families,” he said.
There are enough funds, allocated to assist residents in purchasing and rehabbing single-family homes, to assist in the rehabilitation of 20 to 30 homes in the TIF district, which includes a portion of the 28th Ward along with the 27th Ward, according to the release.
“This is what we have been fighting for; to be able to use TIF money to put foreclosed properties back on the tax roles and help families acquire affordable homes with the hope that jobs and contracts will come to the neighborhood,” said 27th Ward Ald. Walter Burnett.
The Department of Housing and Economic Development and Neighborhood Housing Services of Chicago will work together to implement the program.
To be eligible for the program, home buyers must have a household income of no more than 120 percent of the median income in the area, which is $75,000 for a family of four. In addition, the property must be vacant, require a permit and need rehab work costing $25,000 or more per unit.
For example, if the purchase price of a home is $40,000 and the rehab cost is $100,000 – totaling $140,000 – buyers would be eligible to receive up to 25 percent of the cost to buy and rehab the home, or $35,000 in TIF assistance.
The home buyer would be required to live in the house for 10 years. If homeowners decide to sell within the 10 years, they would be required to pay back a pro-rated amount of the TIF funds they received.
The programs’ details are still being finalized, and applications will be posted soon, according to 28th Ward spokesperson Ty Cratic. For more information, contact Neighborhood Housing Services of Chicago at 773-329-4010.