Kane County learned Friday (Feb. 17, 2017) that its Development & Community Services Department will receive $250,000 in funding to clear blight and stabilize neighborhoods.

“This funding will allow Kane County to expand its current commitment … and return vacant properties to productive use to advance the economy,” Kane County Development & Community Services Director Mark VanKerkhoff said.

The investments come from the state’s Abandoned Property Program, which is administered by the Illinois Housing Development Authority and funded through filing fees paid by financial institutions.

Effective in June 2013, banks and other lending institutions began funding this program by paying fees on a sliding scale based on how many foreclosures they file each year. For example, an institution that files more than 175 foreclosures must pay $500 per foreclosure, while one with between 50 and 175 must pay $250 per foreclosure, and those with less than 50 foreclosures a year must pay $50 per filing.

Kane County was approved for this second round of funding based on need, capacity, impact, budget, cost reasonableness and readiness to proceed.

• Aurora — $250,000
• Carpentersville — $75,000
• Elgin — $26,962

IHDA established a maximum grant amount of $75,000 per municipality/county. Awards were determined based on the amount of funding available in the geographic set-aside, as well as the applicant’s documented need for funding, the capacity of the applicant to undertake the planned activities, the amount of impact to be achieved, cost reasonableness, and readiness to proceed.

Kane County requested a waiver of the maximum grant amount by illustrate exemplary capacity, need, and impact in order to be considered for a waiver. IHDA considered waiver requests on a case-by-case basis, taking into account the amount of funding available in the geographic set-aside, along with the other criteria, to determine whether to grant the waiver.  Kane County applied for, and was awarded, the maximum amount of $250,000.

About the Kane County Blighted Structures Demolition Program

The Kane County Board initiated the Blighted Structures Demolition Program in 2013. Kane County has already allocated a total of $248,000 to demolish abandoned residential buildings.

The total number of homes for which court orders for demolition have been obtained is 15. Four were demolished by the county, two have been bid out for demolition this fall, four were demolished by the bank or the owner, and one is being rehabilitated by a new owner.

The positive impact is that the county’s program and actions has leveraged the use of the funds for 6 demolitions in that a total of 15 abandoned residential properties have been addressed due to the pressure that a court order brings to an owner.

About IDHA

IHDA is a self-supporting state agency that finances the creation and the preservation of affordable housing across Illinois. Since its creation in 1967, IHDA has allocated $12.4 billion and financed approximately 240,000 affordable units across the state.