Elgin plans to spend $800,000 in federal grant money on developing more affordable housing, officials said.
At the Wednesday Elgin City Council meeting where it was discussed, Councilman John Steffen thanked staff and city officials for proposing the allocation.
“It’s needed at this point that we kind of refocus where these funds go, and we’re looking at the vast majority of it for affordable housing. I appreciate that,” he said. “There are some noteworthy rehabilitation and infill developments in Elgin that really spark redevelopment. Hopefully more of that will happen.”
The city has $1 million in Community Development Block Grant (CDBG) money from the U.S. Department of Housing and Urban Development. Elgin has received about $42.4 million since 1975 and has used the funds to do things like improve parks, help nonprofit facilities, do street repairs and provide services to address homelessness.
This year, about $800,000 will go to the city’s Affordable Housing Fund, which is used to pay for rehab projects that create more affordable housing in Elgin. The fund is administered through Kane County’s Kane-Elgin HOME Consortium, which oversees the application process and awards money for projects.
Putting the grant into the Affordable Housing Fund represents a 275% increase over what they earmarked last year, City Manager Rick Kozal told the council. The allocation, to be used for gap financing for the rehabilitation or construction of high-quality units of affordable housing, is aligned with the council’s 2023 strategic objective to “promote low- and moderate-income workforce housing,” he said.
Councilwoman Tish Powell said Elgin in the past has used CDBG funds for road projects, which are allowed under the grant rules, but she was never totally on board with the idea of spending it on those projects. This is a good way to use this year’s allotment, she said.
“We have a large need, obviously, in our community and probably in several other communities, for affordable housing as prices continue to increase,” Powell said.
She said she looks forward to working on projects with the county coalition.
Of the remaining CDBG money, Golden Circle YMCA will receive $50,000 for homeless and supportive services and $130,000 is being given to the Continuum of Care Program, which brings additional state and federal funding to Elgin agencies that serve the homeless.
Before the plan can be approved, the public will have a chance to weigh in between May 26 and June 25. All public comments will be provided to the council before a final vote is taken on the ordinance approving the distributions, likely at the June 26 meeting.
Gloria Casas is a freelance reporter for The Courier-News.
