Evanston staff review CDBG housing-rehab program and eligibility rules

Marian Johnson, the city’s housing and grants supervisor, told the Housing and Community Development Committee that Evanston’s CDBG housing rehabilitation program is aimed at preserving primary residences for households earning at or below 80% of area median income. “Essentially as of 2026 for a household of one it’s an income at or below $68,000,” Johnson said during a slide presentation.

Johnson described eligibility limits that include no foreclosure or unpaid taxes and assessed-value caps drawn from Cook County assessor data: $540,000 for single-family homes and two-flats, and $252,000 for condos and townhomes. She explained the city program is structured as a 0% interest deferred loan repaid on sale or title transfer, with maximum assistance of $50,000 for single-family/two-flats and $20,000 for condos. “The program is a 0% interest deferred loan,” Johnson said, noting repayment timing is unpredictable because payments typically arrive only when a title transfers.

The presentation emphasized that the program targets health-and-safety work rather than cosmetic upgrades: eligible projects include roofs, accessibility upgrades, electrical and GFCI work, carbon-monoxide detectors, and certain sewer repairs. Johnson said the fund balance is about $1,260,000, the city currently has 68 open loans with an unpaid balance of roughly $1.4 million, and the program’s goal is about five to ten projects a year. “It’s very difficult to project how much money we’re going to get any year,” she said, pointing to past volatility in repayments.

Council members pressed staff on outreach and whether rising assessed values are making homeowners ineligible; Johnson said it has been rare so far but staff is monitoring and may adjust caps to prioritize lower-value households. She also described a separate IDA-funded component that prioritizes households under 50% AMI and can include forgivable funds for some projects.