Owner-occupied homes belonging to low- to moderate-income individuals in Waukegan can qualify for funding-emergency or substantial repairs through the U.S. Housing and Urban Development (HUD) Community Development Block Grant program (CDBG).
Funded annually by HUD, Cynthia Jackson, the city’s CDBG compliance coordinator, said that by the time emergency repairs are made, there is usually little, if any, money left for substantial projects. There is a backlog of 82 approved substantial projects in need of funding.
When Jackson and other members of the CDBG staff met with Mayor Sam Cunningham to find a solution, an idea was floated — continue to use the annual HUD allocation for emergencies, and devote a portion of the city’s share of cannabis and gaming tax revenue for the other substantial work.
“All of this is part of rebuilding Waukegan,” Jackson said. “It starts with the community and the residents of the community.”
Jackson said Tuesday the CDBG program hopes to use $400,000 from revenue gleaned from the city’s share of taxes from the sale of cannabis to do substantial repairs for 15 to 20 homes this year, and begin to make a dent in the backlog.
The Waukegan City Council is scheduled to vote on the approval of the use of $400,000 from cannabis taxes when it next meets at 7 p.m. on Aug. 18 at City Hall, fueling Cunningham’s Rebuild Waukegan program at the foundation.
Established in 1965 during the administration of President Lyndon B. Johnson, part of HUD’s mission is improving housing in America’s inner cities and other low-income areas. Cunningham said the CDBG laid part of the foundation for his Rebuild Waukegan program.
“It was founded to help the country and rebuild our communities,” he said of HUD. “Waukegan is an urban-suburban community. We have urban issues. This program will help rebuild the foundation of our neighborhoods.”
Jackson introduced both members of the City Council’s Community Development Committee and the City Council itself to the idea of using city funds to enhance the CDBG and reduce the backlog of substantial projects awaiting funding on Monday.
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Though Jackson said she hopes to do emergency projects with HUD funding, she told the council she was informed the dollars will be less than in past years. She is uncertain of the precise amount. Cunningham was not surprised by the reduction.
“We had a pretty good idea 30 days ago that there would be a lower number from HUD,” he said. “The federal government may be decreasing what it gives, but we’re stepping up our game. We know we have two buckets — gaming and cannabis. We’re going to try to stay ahead of it.”
Of the 82 approved substantial projects, Jackson said she anticipates completing 15 to 20 this year with the $400,000 of cannabis tax money pending council approval. Cunningham said clearing the backlog will be a multi-year program. Using gaming and cannabis funds is appropriate, he said.
Concentrated more in older parts of the city, there are 12 approved projects in the 1st Ward, seven in the 2nd Ward, eight in the 3rd Ward, 10 in the 4th Ward, 14 in the 5th Ward, nine in the 6th Ward, 15 in the 7th Ward, six in the 8th Ward and one in the 9th Ward.
HUD sets the CDBG guidelines. Jackson said people must be income-qualified. Income needs to be less than 80% of the area’s average median income, according to HUD guidelines. Only owner-occupied homes are eligible. Income must be verified on the application.
A member of the city’s CDBG team will determine whether the repair is emergency or substantial. Jackson said a contractor makes an estimate, an agreement is signed and the homeowner awaits funding.
During Jackson’s presentation to the Community Development Committee, Ald. Lynn Florian, 8th Ward, asked what safeguards exist to prevent a homeowner from selling the house quickly after the work is done for a fast profit.
Once the work is done, Jackson said the city places a lien for the total dollar amount of the work done on the property. After five years, 50% of the lien is forgiven and after another 10 years, the entire amount goes away.