Urbana commission certifies Habitat for Humanity as CHDO and advances $197,500 HOME funding for five houses

The Urbana Community Development Commission voted to certify Habitat for Humanity as a Community Housing Development Organization and to authorize a HOME funding agreement that would allocate $197,500 in development funds to five Habitat homeownership projects and $30,000 for operating support.

Staff described the two related resolutions as a pair: one to certify Habitat as a CHDO for the Urbana-led HOME Consortium and one to authorize the funding agreement. Staff said the HOME funds are a set-aside in the consortium's annual allocation and that the consortium comprises the City of Urbana, the City of Champaign and unincorporated Champaign County. Staff told commissioners Habitat was the only applicant this funding cycle.

Chad Hoffman, identified in the meeting as "Chad Hoffman, executive director, Habitat for Humanity," said the application requests $197,500 in development funding to support five projects (about $39,500 per project) and also seeks $30,000 in CHDO operating funds. He described Habitat's homeownership program requirements, including 300 hours of sweat equity and a financial education sequence for participating homeowners.

"It is a 0% interest mortgage with Habitat," Hoffman said, adding the organization structures mortgages so repayment funds can be reinvested in future builds. He acknowledged that property taxes and insurance are concerns for lower-income homeowners and said Habitat can extend loan terms to lower monthly payments if needed.

Commissioner Chris (first name only in the transcript) raised concerns that Habitat-built homes can become among the most valuable on a block, which can increase property-tax burdens for homeowners on fixed incomes; he and other commissioners encouraged coordination with assessors and continued attention to long-term affordability.

On separate motions, Patty moved and Chris seconded certification of Habitat as a CHDO; the chair called the vote and announced the ayes had it. Patty then moved and Chris seconded authorization of the HOME funding agreement; the commission again voted in favor. Staff noted both resolutions will go to City Council for final approval before contracts are executed.

The commission packet includes project pro forma budgets and a project schedule for each home; staff said exhibit pages list project addresses and that two homes are estimated to be completed in March 2026 and three in 2027. Staff also said that selection of homeowners for the five projects had already occurred.

Next steps: the certified CHDO designation and the funding agreement will be forwarded to City Council for final approval and, if approved there, agreements will be executed to begin development work.