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DRAFT HOUSING AND COMMUNITY DEVELOPMENT CONSOLIDATED PLAN

For Program Years 2005 ­ 2009

(6/1/2005 ­ 5/31/2010)

Kane County/City of Elgin Consortium Kane County Development and Resource Management Department 719 Batavia Avenue Geneva, Illinois 60134

Consolidated Plan for Kane County/City of Elgin Consortium Program Years 2005 ­ 2009

Following HUD Review Guidance Questionnaire This guidance is provided as a template for the reviews of complete plans. The submission of sections dealing with Needs Assessments, Housing Market Analysis, and Strategic Plans are not required on an annual basis. Each field office should include additional questions or clarifications that address the complexity of their local situation. Grantee: Kane County, Illinois If a Consortia, list participating communities and asterisk the lead agency: * Kane County, Illinois City of Elgin, Illinois Consolidated Plan covers the following programs: CDBG X HOME X ESG HOPWA Period covered by Consolidated Plan is: 5 Years Also, specify the period with month beginning and year ending: 6/1/2005 to 5/31/2010 Date plan due: 4/15/2005 Date plan received: Automatic approval date (45 days of date received above): 6/1/2005 Are maps included (optional)? Yes Has an Executive Summary been attached (optional)? Yes Did the local jurisdiction include the following tables: Table 1A: Yes Table 1B: Yes Table 1C: Yes Table 2A: Yes Table 2B: Yes (One for Kane County and one for the City of Elgin) Table 2C: Yes Table 3: Yes (Kane County only) Did the grantee use the CPMP Tool? No Did the grantee include one or more proposed outcomes in the Plan? No If the answer is yes, please inform headquarters as required in CPD Notice 03-09. If so, which indicators were used?

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Consolidated Plan for Kane County/City of Elgin Consortium Program Years 2005 ­ 2009 I. Executive Summary

Introduction The Kane County/City of Elgin HOME Consortium is a city-county partnership authorized by HUD for the purposes of receiving Federal HOME Program funds. It consists of Kane County, including the 23 municipalities participating in its Community Development Block Grant (CDBG) Program, and the City of Elgin, which receives CDBG funds directly from HUD. The Consortium must prepare a Consolidated Plan (or Plan), which meets Federal requirements, in order to receive both CDBG and HOME funds. This Plan will govern Federal housing and community development expenditures in Kane County and the City of Elgin for a five-year period (6/1/2005 to 5/31/2010). In its Plan, the Kane/Elgin Consortium seeks to... 1. identify housing conditions and community development needs throughout its combined jurisdictions. 2. establish strategies for addressing those needs, while responding to the varying conditions of particular communities and housing sub-market areas. 3. coordinate the effective use of Federal resources to support specific actions consistent with those strategies. The Plan provides an overview of demographic, economic, and housing considerations, and uses the information obtained to identify critical needs, particularly among the lower-income and special-needs populations, to whom Federal funds are targeted. The Plan's findings follow: A. Demographic Considerations Kane County is booming. As part of the expanding Chicago metropolitan area, the County is experiencing tremendous population growth and development pressures. The population is expected to grow more than 50% between 2000 and 2030, from 404,000 to 692,000. This stems primarily from two trends: 1) the migration of families from elsewhere in the Chicago region into the County and, 2) the migration of foreign-born people, particularly Hispanic and Asian, into the area. This twopronged immigration pattern accounts for most of the present and projected population growth. The magnitude of change is cause for concern, as development traditionally follows population growth. If unmanaged, this growth may undermine community stability, and the County's agricultural base, which remains its dominant land use. In order to balance competing demands, the County adopted the 2030 Land Resource Management Plan, which establishes a rational approach to accommodating growth. Specifically, it promotes redevelopment within the urban-corridor communities along

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the Fox River, sensitive development of new areas within the critical growth area, and the protection of rich agricultural land in the western half of the county. B. Economic Conditions The Consortium boasts a robust economy with a relatively high employment growth rate. Over time, its economy has shifted from being reliant on agriculture and manufacturing to a more diversified, service-oriented base. The fastest growing sectors of the local economy include services, construction, and wholesale trade. Since 1993, the largest share of jobs (those found in service industries) increased from 30% to 33% of Kane County's employment base. Manufacturing (27% of total employment) and retail trade (20% of total employment) were the next largest source of jobs, growing at slower rates. The location of jobs now tends to be de-concentrated outside larger communities, where the majority of lower-income, minority, and immigrant populations reside. This is causing a geographic mismatch between employment centers and the supply of affordable workforce housing, which leads to increased commute times and congestion on area roadways. There is a significant need for workforce housing in the major employment areas. Another trend impacting the economy is that more jobs require some competency in information technology. This affects the employment outlook for workers, particularly lower-income, un-skilled and semi-skilled workers without proficiency in this area. Housing Needs and Homeless Needs Assessment Within the area served by the Consortium, there are a variety of housing needs, depending largely on whether households own or rent their homes, are homeless, or have special needs. The characteristics and needs are discussed below. A. Owner Households Of the County's roughly 102,000 owner households in 2000, approximately 25% were lower income, under Federal guidelines. A look at need among households with incomes that are extremely low (at or below 30% of Median Family Income, or MFI), very low (31-50% MFI), and low (51-80% MFI) is even more revealing. Four percent of all homeowners in Kane County have extremely low incomes. Of those, almost half are elderly. A total of 6.3% of all homeowners have very-low incomes, with almost 45% of them being elderly. Finally, 14.5% of all homeowners in the County have low incomes, and 60.6% of them are elderly. There appears to be no disproportion by race or ethnicity, but it is clear that elderly households stand out as needing some form of housing assistance. Because these households tend to live in substandard conditions and lack the financial resources to make needed repairs, a housing rehabilitation program would address a significant portion of the owner household need.

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B. Renter Households There were 32,129 renter households in Kane County in 2000. Of those, approximately 57% were considered lower-income. Almost 19% of all renters had extremely low-incomes, almost 13% had very low-incomes, and roughly 25% had low incomes. Many of these households simply lack enough income to obtain decent and affordable housing. As a result, some live in substandard conditions, others pay excessive amounts of income for rent, and many suffer from both conditions. Not surprisingly, the strongest need for rental-housing assistance is found among extremely- and very low-income households, with a disproportionate need among African-American households. This suggests that there is a compelling need to rehabilitate substandard rental housing, and create additional rental housing (combined with continuing affordability requirements) for those with extremely low or very-low incomes. C. Homeless Needs It is difficult to obtain empirical data on the homeless population, since the homeless tend to be less visible in the community, and data collection systems are still in the formative stage. The problem of homelessness, although not as prevalent as in some major cities, does exist in Kane County, with probable concentrations in two communities, Elgin and Aurora and, to a lesser extent, in St. Charles. It is reasonable to assume that most (perhaps 80%) of the County's homeless reside in Elgin and Aurora, given population concentrations, and the number of facilities and services offered in those communities. Despite the above, the number and/or capacity of facilities and services are insufficient to address the need. There are too few permanent homeless shelters and transitional housing facilities. There is, therefore, a need to extend the reach of the County's Continuum of Care to address the needs of this population. D. Special Needs Populations Special needs exist among the developmentally disabled, people with serious mental illness, those who have substance abuse problems, people suffering from domestic abuse, veterans, the frail elderly, and those diagnosed with HIV/AIDS. With appropriate levels of assistance, these individuals can live more productive and satisfying lives. Absent this attention, they obtain emergency treatment, which tends to be ineffective and costly. In some instances, unmet needs are asserted in antisocial and sometimes criminal behavior. There are too few treatment facilities in the area served by the Consortium, and those that exist have limited funding, or are threatened with cutbacks. More permanent treatment and supportive housing for these individuals is required.

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Housing Market Analysis An analysis of the Consortium's housing market reveals some notable shifts in housing mix over the last decade of the twentieth century, and a disparity among housing submarkets regarding the supply of affordable units. These issues are discussed below. A. Housing Mix Kane County's housing stock is roughly three-quarters owner-occupied, and onequarter rental. Between 1990 and 2000, a period of strong population growth, the County gained more than 27,000 owner units, but lost nearly 500 rental units. The loss of rental housing distinguishes Kane County from the other collar counties in the metropolitan area, which experienced gains in their supply of both owner-occupied and renter-occupied housing. B. Housing Affordability Between 1990 and 2001, median home values increased faster in the Chicago area than in almost every other major metropolitan area in the United States. During the same period, however, median household incomes throughout the area ­ including Kane County ­ did not keep up. In fact, according to a recent report by the Fannie Mae Foundation, the median family income in the Chicago area is no longer enough to qualify a homebuyer for the loan amount necessary to finance the purchase of a median-priced home in the area. In order to afford the average two-bedroom apartment in the Chicago area, a person must earn a wage of at least $17.13 per hour. At the current minimum wage, therefore, that person would have to hold approximately three full-time jobs to afford modest housing. With the Consortium's housing stock becoming increasingly expensive, the gap between household income and housing costs is expected to widen further over the next several years. To cope with this trend, more and more lower-income households will likely find themselves facing the following options: 1. spend more than 30% of their incomes for housing expenses, 2. live further away from their places of employment in order to find less-expensive housing but increasing their commute time and congestion on area roadways, or 3. "double-up" with relatives or other families in order to reduce per-person housing expenses. C. Geographic Distribution of Affordable Housing The short supply of affordable housing is exacerbated by the fact that the geographic distribution of affordable units is extremely uneven. This is evinced in a 2004 report, prepared by the University of Illinois for the Illinois Housing Development Authority, and completed in response to the Illinois Affordable Housing Planning and Appeal Act, which encourages municipalities and counties to incorporate sufficient affordable housing into their communities.

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Utilizing Census and other data, the number of affordable owner and renter housing units was calculated for each community and the unincorporated areas of each county. An inventory of affordable housing units in the area served by the Consortium showed affordability ranging from 2% to 68%, with nearly half of the localities near one end of the spectrum or the other. More than 40% of the units, for example, in Burlington, Carpentersville, Elgin, Maple Park, Montgomery, and Pingree Grove are affordable, with less than 10% meeting the affordability criteria in Barrington Hills, Gilberts, Sleepy Hollow, Sugar Grove, and Wayne. The Consortium's affordable housing is clearly distributed unevenly. Strategic Plan The Plan identifies the five Consortium's highest priorities for the next five years, ranked according to their relative importance. Priority #1: Affordable Housing Consistent with the housing needs assessment and market analysis discussed earlier, the Consortium's objectives regarding affordable and special-needs housing are to preserve existing units throughout the area served by the Consortium, and to create additional units in areas where they are currently lacking and near employment centers. Specifically, the Consortium will address owner-occupied and renter-occupied housing needs as follows: 1) Provide first-time homebuyer assistance and rehabilitation assistance to lowincome homeowners throughout the area. Homebuyer and home-maintenance education, and financial management counseling services will be encouraged as a component of such assistance. 2) Provide gap financing for affordable homeownership and rental opportunities, by providing development subsidies designed to reduce the market price of such housing. This activity is targeted for those areas where there is a jobs/housing mismatch, and where the supply of affordable housing is limited. Priority #2: Infrastructure Public infrastructure directly affects the environmental quality of neighborhoods and communities. Both the County and City will utilize their Federal funding to provide "gap" financing for critical infrastructure projects. Generally, there are three main areas of concern: 1) storm water drainage, 2) sanitary sewers and potable water supply, and 3) streets and sidewalks. In unincorporated areas, such projects will aim to improve neighborhoods plagued with inadequate infrastructure, thus enabling their annexation to adjacent municipalities. Within incorporated areas, priority will be placed on projects that are part of an overall effort to improve neighborhood conditions.

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Priority #3: Public Facilities Local governments and non-profit organizations often lack the financial resources necessary to make capital improvements to community and public facilities. Kane County and the City of Elgin will provide support for the construction, rehabilitation and general improvement of public facilities such as parks, community centers, and facilities from which human services are provided to area citizens. Priority #4: Homelessness The Consortium will work to increase the availability of both emergency-shelter and transitional-housing services and facilities. Furthermore, it will continue to support the Continuum of Care for Kane County, as a vehicle through which services to the homeless population are coordinated and funding is obtained to address critical needs. Priority #5: Planning and Capacity-Building With a high rate of growth and tremendous development pressures, planning is critical to ensuring orderly growth and maintaining a high quality-of-life for all citizens. The Consortium will support community planning in general, and will undertake, where necessary, specific planning activities that contribute to the effective use and leveraging of resources. Particular attention will be given to planning that fosters redevelopment in the urban-corridor along the Fox River or focus on critical growth areas in the County's 2030 Conceptual Land Use Strategy. (Please see the land use map in Appendix 1.) As the County and City expand their participation in Federal housing and community development programs, they will work to identify and build the capacity of non-profit organizations (especially potential Community Housing Development Organizations, or CHDO's) with which they may partner to address the needs identified in this plan.

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II. Consultation Process (91.100)

Question #1: Has the grantee consulted with other public/private entities that provide assisted housing, health services, and social services in developing this plan? Use the following checklist as a guide to determine extent of consultation process:

Consultation Requirement Housing Services Social Services Health Services Homeless Services Lead-based Paint Adjacent Government State (Non-housing) County (Metro. City) Metro. Planning Agencies HOPWA PHA-Comprehensive Grant Plan

24CFR 91.100(a)(1)

91.100(a)(2)* 91.100(a)(3)**

91.100(a)(4) 91.100(b) 91.100(c)

Yes X X X X X X X X X X X

No

* Were State/Local health and child welfare agencies consulted regarding lead paint issues. (Yes) ** Was copy of the plan submitted to the State, and County if applicable; if an urban county, to the entitlement cities in the County? (Yes) Answer: Yes (Please see the following narrative.)

The County contacted the State of Illinois and its own Health Department concerning lead-based paint hazards and that data has been incorporated into the Plan in various and appropriate places. Significantly, the Consortium and the County Health Department have closely coordinated actions to obtain and implement lead hazard reduction activities. These efforts will continue and are likely to increase during this Plan's period of applicability. With the exception of the Cities of Aurora and St. Charles, adjoining municipalities did not actively participate in the planning process, although the Consortium has maintained close working relationships with neighboring municipalities, the State of Illinois, and the Northeast Illinois Planning Commission, NIPC, concerning planning issues and other issues of mutual concern. Local municipal involvement was also achieved through participation in the County's regional planning districts, particularly in the development of the 2030 Land Use plan. All ideas and comments were considered and many were incorporated into the Plan.

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Question #2: Did the grantee indicate that it consulted with other organizations that provide housing and supportive services to special needs populations (including elderly persons, persons with disabilities, persons with HIV/AIDS, homeless persons? Answer: Yes (Please see the following narrative.)

The Consortium hosted a series of five development meetings very early in the planning and development process on July 6-8, 2004, at convenient locations throughout the County. Three citizen fora occurred in the south, central and northern parts of the County to obtain citizen input, and two focus group meetings were held to obtain agency input. Both focus group meetings were designed to solicit comments concerning community needs and priorities. The following organizations were invited:

Housing Organizations Invited/Participated

Community Contacts* Habitat for Humanity of Northern Fox Valley* Joseph Corporation* Mid-Valley Neighborhood Improvement Association* Neighborhood Housing Services of Elgin* Office of Congressman Dennis Hastert John Biris, Housing Developer Capstone Construction* Community Housing Ass'n of DuPage County* Creative Assistance Development, Inc.* JRD, Inc. St. Charles Community Development Dept.* Shelters for Healthy Environments Housing Authority of Elgin* Aurora Housing Authority Realtor Association of the Fox Valley* Amcor Mortgage, Inc. Aurora Dept. of Neighborhood Redevelopment* National City Mortgage Services, Inc.* Geneva Mental Health Board Statewide Housing Action Coalition* Supportive Housing Providers Association HOPE Fair Housing Center* Stone Tower Properties*

Social Service Organizations Invited/Participated

Centro de Informacion Senior Services Ass'n Christ Community Church Community Counseling Center* Ecker Center for Mental Health* Veteran's Assistance Center* Well Child Center Northern IL Food Bank* Kane County Health Dept.* Hope for Tomorrow, Inc. Mutual Ground PADS, Inc. (Elgin)* United Way of Elgin* PADS, Inc (Aurora)* Lazarus House* Project Reach* United Way (Aurora Area)* Association for Individual Development* NAMI* Wayside Cross Ministries Comm. Crisis Center* IL Coalition to End Homelessness United Way of Greater St. Charles and Elburn* Aurora Dept. of Neighborhood Redevelopment*

* Participated in Focus Group Meeting

The two focus group meetings were well attended, with more sparse attendance at the three citizen events (3 to 12 at each). Those who attended, however, made valuable contributions. There was an almost exclusive focus on the need for affordable housing, and for services to help families become successful residents and neighbors in affordable rental housing. Several residents and agencies commented on the need for emergency shelter and transitional housing, with supportive services to help them address the underlying

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causes of homelessness. There was impassioned discussion of the need for supportive services for special needs populations as well. Without them, the speakers reasoned, treatment is ineffective, causing more serious problems that must be borne by society as a whole.

Question #3: Did the grantee consult with Public Housing Agencies during Consolidated Plan development? Answer: Yes (Please see the following narrative.)

The Consortium sought input from the two public housing authorities in Kane County, the Housing Authority of Elgin (HAE) and the Aurora Housing Authority (AHA)1. Both agencies provided valuable information during the Plan's development period through communications with the Consortium and with the Consortium's consultant.

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AHA does not serve the Consortium but is a major housing provider in Kane County.

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III. Citizen Participation (91.105, and 91.200)

Question #1: Is there a description of the development of the plan and efforts to broaden public participation, including the names of organizations involved in the development of the plan? Answer: Yes (Please see the following narrative.)

As mentioned previously, the Consortium made considerable efforts to involve residents and other stakeholders throughout the process. A citizen participation chronology follows:

07/06/04 07/06/04 07/07/04 07/07/04 07/08/04 11/18/04 11/19 ­ 12/30/04 2/2-3/04 Housing Focus Group ­ Kane County Government Center Citizen's Forum (South County area ­ North Aurora Library) Citizen's Forum (Central County area ­ St. Charles Library) Citizen's Forum (North County area ­ The Centre of Elgin) Social Services Focus Group ­ County Government Center Preliminary Consolidated Plan presented to (and adopted by) CDBG and HOME Commissions Preliminary Consolidated Plan posted on County Website for public review and comment Draft Consolidated Plan released by for public comment by CDBG and HOME Commissions

Add dates as they materialize This process was effective. Many entities, particularly non-profit health and service agencies and housing providers, actively participated and raised, as already indicated, a number of ideas and comments. Participants, particularly the housing and service providers, shared valuable information that affected the content and focus of this Plan. Businesses, large institutions, and (with the exception of the City of Aurora, and the City of St. Charles) adjoining municipalities did not actively participate in the planning process, although the Consortium has maintained close working relationships with neighboring municipalities, the State of Illinois, and the Northeast Illinois Planning Commission, NIPC, concerning planning issues and other issues of mutual concern. Local municipal involvement was also achieved through participation in the County's regional planning districts, particularly in the development of the 2030 Land Use plan. All ideas and comments were considered and many were incorporated into the Plan.

Question #2: Is there a summary of the citizen participation process, and were the public hearing and comment period requirements satisfactory? Answer: Yes (Please see immediately preceding narrative for answer to first part of this question as well as the following narrative.)

There was ample notification of the public both prior to its public hearings and during the Plan's development. In addition to the required newspaper publications, it posted public 11

hearing notices, the compiled results of the citizen comments received during the public fora and focus group meetings, as well as preliminary and draft Plans for public review and comment. An open invitation for public comment was made on the website.

Question #3: Are citizen comments included in the plan, and are the comments specifically and adequately addressed by the grantee? Answer: Yes (Please see the following narrative.)

Insert Citizen Comments Here

Question #4: Is there a description of the lead agency or entity responsible for overseeing the development of the Consolidated Plan? Answer: Yes (Please see the following narrative.)

This Plan was jointly developed by the County of Kane, and the City of Elgin, the Consortium's primary members. Both are CDBG recipients, but neither meets the threshold for designation as a HOME Participating Jurisdiction (PJ) in its own right. Aware of the financial and development possibilities arising from the HOME Program, both communities decided that it was in their best interest to form a Consortium, thereby attaining PJ status. The County was selected to be the Lead Agency for the Consortium, and its Development Department, with its level of resident expertise in housing and community development, was tapped to administer the program for the County, and therefore for the Consortium. The City of Elgin, through its Department of Planning will, however, be active in developing and managing the Consortium's programs and activities, and will independently administer its CDBG Program. City oversight will also include development of the CDBG components of five Annual Plans (to be incorporated into the Consortium's Annual Plan) and preparation of CDBG components of the Consolidated Annual Performance Report (CAPER).

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IV. Housing and Homeless Needs Assessment (91.205)

A. Housing

Question #1: Has the grantee identified the estimated number and types of families with housing needs for a five-year period? Note: Table 2A, required. Family types (extremely low-, low-, moderate, and middle income) that should be identified are: · Renter/owner · Elderly · Single persons · Large families · Persons with disabilities · Persons with HIV/AIDS Answer: Yes (Please see the following narrative, and Table 2A in Appendix 1 of this Plan.)

General Popular opinion is split between those who see housing affordability as a critical issue, and those who disagree. The latter tend to believe that the private market will address inequities, while the former contend that the poor, including the working poor, are hardpressed to meet life's basic needs. They also contend that the poor pay too much for housing, and that some families have no housing at all. Others think the affordability concern valid, but find affordable housing concentrated in a few communities, and that others should assume a share. This poses a dilemma for policy makers. In truth, both positions have merit. · Housing advocates say that even affordable housing is expensive in today's market and may be prohibitively so in the future. Poor, and even working class, families are financially squeezed, and more affordable units must be provided. This problem will not go away. Those who argue for balance, however, are also correct. A community is an economic unit that must provide services to its residents. It requires a mix of housing types and price ranges for economic and social viability. At some ill-defined point, they contend, too many affordable homes alters the popular perception of a community, and what once was viewed as diverse and viable, becomes "lowincome", and a place to be avoided. In this view, reality follows the perception, leaving an economically distressed place, left to its own devices and not able to serve those who remain. Balance is therefore necessary to ensure overall neighborhood and community vitality, while meeting the housing needs of residents.

·

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The Consortium finds that housing affordability is a growing concern and, given current trends, decent affordable housing will soon be out of reach for a Chicago area family at median family income, or MFI. Clearly, this issue is larger than the Consortium, which has too few public resources to substantially increase supply. A look at the housing needs of the County's lower income homeless and special needs populations is in order. Estimated Housing Needs of Lower-Income Persons HUD's CHAS data book, with 2000 data2, formed the basis for the following narrative and for Table 2A, Housing Needs, which identifies and prioritizes lower-income housing needs. The CHAS statistics break households into Elderly, Small-Related, LargeRelated and All Other categories. This Plan assumes that the category of others is synonymous with single person household, those numbers are used for purposes of calculating the needs of single person households as required by HUD regulation. The following narrative examines the CHAS data. · · There was a 24.9% increase in the number of households between 1990 and 2000. There were a total of 32,169 renter households which comprised 24.0% of all occupied units, and 101,720 owner households for 76.0% of that total.

In any analysis it is important to define the classification terms used, so that confusion may be avoided. This analysis is no different, and a definition of key terms follows. · · · · · · · · Elderly households are defined as one- and two-person units having one or more persons at or over age 62, or who are declared to be disabled. Small Related vary in size from two-to-four related individuals. Large Related consist of five or more related individuals. All Other (Single-Person) Households consist of those households which do not meet the other criteria. Extremely Low Income (ELI) households have incomes below 30% MFI. Very Low Income (VLI) households have incomes between 31% and 50% of MFI. Low Income (LI) households have incomes between 51% and 80% of MFI. Moderate Income (MI) households have incomes between 81% and 95% of MFI. It should be noted that the CHAS data does not specifically identify members of this group.

1. Estimated Needs of Renter Households a. ELI Renters There were, in 2000, a total of 32,139 renter households in Kane County. Of those... ·

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5,990 households 18.6% of all renters, were ELI.

It should be noted that the numbers presented include those for the City of Aurora, which is the County's largest community, and which is not participating in the Consortium. Ideally, the Aurora figures should be subtracted, but the complexities caused by that City's four-county jurisdiction make an accurate analysis problematic at best. The Aurora numbers were therefore left in the data.

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· · · · · ·

1,280 households, 21.4% of ELI renters, and 4.0% of all renters, were elderly. 2,295 households, 38.3% of ELI renters and 7.1% of all renters, were SmallRelated. 840 households, or 14.0% of ELI renters, and 2.6% of all renters, were LargeRelated. 1,575 households, or 26.3% of ELI renters, and 4.9% of all renters, were All Other. 1,690 households, or 28.2% of ELI renters, are Hispanic. 1,485 households, or 24.8% of ELI renters, are African-American.

These persons obviously have great difficulty obtaining housing at affordable prices and, even when they do, are likely to live in substandard or overcrowded conditions; or both. Their need for decent and affordable housing is severe. The proportions of Hispanic- and African-American families are higher than their share of the County's population, but only the need among African-Americans approaches disparity as defined by HUD. b. Very-Low Income (VLI) Renters This group, with incomes between 31% and 50% the median, is somewhat better off than ELI renters, but they still desperately need adequate housing. Considered by type, one finds that... · · · · · · · 5,769 households, or 17.9% of all renters, are VLI. 1,285 households, or 22.3% of all VLI renters, are Elderly. 2,225 households, or 38.5% of all VLI renters, are Small-Related. 965 households, or 16.7% of all VLI renters, are Large-Related. 1,294 households, or 22.4% of all VLI renters, are All Other Households. 1,875 households, or 32.5%% of all VLI renters, are Hispanic. 740 households, or 12.8% of all VLI renters, are African-American.

These households also have difficulty finding decent housing at affordable prices. They, too, are likely to live in overcrowded and/or substandard conditions, or pay disproportionate income for rent. Their needs are only slightly less critical than their ELI counterparts. One finds the bulk of need among small family, and all other households, followed by elderly and large family households. It appears that there is a disparate need among African-American VLI renter households compared to the general population. Please note that there are 11,759 VLI and ELI renter households, or 36.5% of all renters in the County. This illustrates the severity of housing need among renter households. c. Low Income (LI) Renters This group has incomes falling between 51% and 80% of MFI, and particularly those near the 80th income percentile, are better able to obtain decent affordable housing. They may be, however, pinched by the cost of housing and other necessities. The further one falls below the 80th percentile, the more likely is 15

that one will be inadequately housed, and the more precarious one's overall financial state will be. Considered by type, one finds that... · · · · · · · 8,214 households, or 25.5% of all renters, are LI. 869 households, or 10.6% of all LI renters, are elderly. 3,355 households, or 40.8% of all LI renters, are Small-Related. 1,330 households, or 16.2% of all LI renters, are Large-Related. 2,660 households, or 32.4% of all LI renters, are All-Other. 2,610 households, or 31.8% of all LI renters, are Hispanic. 900 households, or 10.9% of all LI renters, are African-American.

LI families may have trouble finding decent, affordable housing, but not as much as their ELI and VLI counterparts. It appears that the elderly and large-related households exhibit a lesser degree of need than all-other and particularly smallrelated households and, although the needs of African-American and Hispanic households appear to be disparate, as defined by HUD. The reader should note that the sum total of ELI, VLI and LI households, is 19,973, or 62.1% of all renter households in Kane County, almost two out of three. HUD defined a four-person household with an annual income under $56,500 as lower income in the Chicago area in 2004. There are many working families at this level who are, by definition, eligible for housing assistance. Despite their hard work, without some form of housing assistance, they may be unable to obtain decent housing at affordable prices. Some may even risk homelessness. d. Moderate-Income (MI) Renters The CHAS data does not address this group of renter households, identifying only those households having incomes of more than 80% MFI. 2. Estimated Needs of Owner Households According to the CHAS data for 2000, 101,720 households own their own homes. Of those, 25,114 households, roughly 25% of all owners, have incomes < 80% MFI. a. ELI Owners The need among ELI homeowners is surprisingly large, given the high threshold for homeownership. There are... · · · · · · · 4,089 ELI owner households, or 4.0% of all Kane County owners. 1,959 elderly ELI owners, or 47.9% of the total. 1,065 Small-Related Households, or 26.0% of the total. 540 Large-Related Households, or 13.2% of the total. 525 All Other households, or 12.8% of the total. 675 households, or 16.5% of all ELI homeowners, are Hispanic. 245 households, or 6% of all ELI homeowners, are African-American.

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These households are likely live in substandard conditions, lack the financial resources to make improvements, and may need help to maintain and improve their homes. As might be expected, the elderly have the largest proportion of need, since many have to subsist on small pensions after retirement. When race and ethnicity are considered, there appears to be no special need among either African-Americans or Hispanics. ELI families have critical needs for assistance. b. VLI Owners Like ELI owners, there are a surprising number of VLI owners, given the high threshold for homeownership. There are... · · · · · · · 6,452 VLI owner households, or 6.3% of all owner households. 2,863, or 44.7% of all VLI owners, are elderly. 1,620, or 25.1% of all VLI owners, are found in Small-Related households. 1,199, or 18.6% of all VLI owners, are found in Large-Related households. 770, or 11.9% of all VLI owners, are found in All Other households. 1,520 VLI homeowners, or 23.6% of all homeowners, are Hispanic. 177 VLI homeowners, or 2.7% of all homeowners, are African-American.

The analysis for the VLI subgroup is essentially the same as that for ELI households. Hispanics account for almost ¼ of the total, while AfricanAmericans account for less than 3%. c. LI Owners There are even more LI households in Kane County... · · · · · · · 14,753 households, or 14.5% of all owner households are LI. 8,949 households, or 60.6% of all LI owner households, are elderly. 4,979 households, or 34.1% of the total are in Small-Related households. 3,320 households, or 22.8% of the total are in Large-Related households. 2,225 households, or 63.3% of all LI households, are All-Other 3,640 households, or 3.6% of all LI homeowners, are Hispanic. 444 homeowner households, or 6.9% of all LI homeowners, are AfricanAmerican.

These families live in substandard and/or overcrowded conditions, and may face high housing cost as their predominant housing concern. There are comparatively fewer Hispanic and African-American household. Various programs have been implemented to address their housing needs. d. Moderate-Income Owners The 2000 CHAS data does not address Moderate Income households, only providing gross numbers for households over 80% of MFI.

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Need By Household Type and Tenure Category Roughly three-quarters of all County residents own their homes, while the other onequarter rents. As can be expected, this distribution varies among different income and household categories. An analysis of conditions from this perspective can prove useful in determining need, and approaches to meeting the need. 1. ELI Renters vs. Owners There are 10,079 ELI households in Kane County, comprising 7.5% of all County households. Of those 5,990, or 59.4%, are renters, and 4,089, or 40.6% own. The former group is more likely to be non-elderly, while the latter is more likely to be elderly (perhaps retirees living on fixed incomes). Although the need is strong in both groups, renters have a slight edge. It appears that rental assistance, possibly coupled with housing rehabilitation in substandard units, should be a high priority for ELI renters. Housing repair is indicated for ELI owners. 2. VLI Renters vs. Owners There are 12,221 VLI households, comprising 9.1% of all households in Kane County. Of these some 5,769 households, or 47.2% rent, and 6,542 households, or 53.5% own. Need is therefore split evenly between owners and renters. Renter needs are greatest among Small-Related and All-Other households, while for owners it is greatest among the elderly and Small-Related households. A strategy similar to that suggested for ELI renters is indicated. 3. LI Renters vs. Owners There are 22,787 LI households in Kane County, constituting 17% of all households. Of those, 8,214 (36% of the LI household universe) rent. The other 14,573 families (or 63% of the LI total) own their homes. This distribution suggests similar housing strategies to address the housing need among both tenure types. Since LI households have more discretionary income than ELI and VLI households, they may be better positioned to purchase and maintain homes, and homebuyer assistance programs might be appropriate. 4. Moderate Income Owners vs. Renters This category of need could not be analyzed since the CHAS data tables did not specifically identify moderate-income households. Summary There are several types of housing need among the County's LI households. Some, particularly renters, have some kind of (substandard) housing problem. A program of housing rehabilitation for both renters and owners living in substandard housing, is indicated. This strategy may be particularly useful to those communities that have older, and more affordable housing than to the newer and/or more highly priced communities.

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The conditions just described, however, do not address the extent of unmet need. There are other LI families who want to live in the County but cannot find decent units at an affordable price. There is consequently a need for more affordable housing in areas that currently do not have it, particularly areas of high and growing employment, and in communities which lack a level of affordable housing. Unfortunately, there are insufficient resources to address all needs over the short term. To the extent possible, however, the Consortium will leverage its HOME and CDBG resources thereby increasing their impact in the community.

Question #2: Has the grantee identified the types of housing needs in the community for a 5-year period? Types of housing needs should be determined with an analysis of: · Severe cost and cost burden · Overcrowding (especially for large families) · Substandard (renter/owner, extremely low-, low-, moderate, and middle income) Answer: Yes (Please see the following narrative.)

Cost Burden and Substandard Conditions The values of housing grew faster in metropolitan Chicago than any major housing market in the country. The Fannie Mae Foundation estimates that, in order to afford an average two-bedroom apartment in the Chicago area, a person must earn a wage of at least $17.13 per hour. At the current minimum wage, that person would have to hold down approximately three full-time jobs to afford modest housing. With the housing stock becoming increasingly expensive, the gap between household income and housing costs is expected to widen further over the next several years. More specific data follows: Housing in some areas, particularly Aurora, Elgin, Carpentersville, North Aurora and South Elgin, is relatively affordable. Elsewhere that picture does not apply. Even in more affordable areas, many families pay large portions of their income for housing. Census data, incorporated into the following tables, highlights this concern. The table does not show cost data for families <30% MFI, but does show that cost is a serious problem for VLI owners. Of the units affordable to that group, perhaps 80% were built before 1970, and require active maintenance and repair. Only 6.5%, however, have some identified housing problem, a good sign for the present. Fully 32.3% of the homes affordable to LI households are so occupied. Almost 70% of these units pre-date 1970, and require active maintenance and repair. Only 2.8% of the LI units have one or more problems, so most are probably standard. Their owners may, however, be burdened with repair costs as systems and features wear out. A program of housing rehabilitation will address these needs.

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Affordability of Owner Units in 2000

Value of Owner Housing Value < 30% Value 31% - 50% # Occupied Units % Occupants < 50% % pre-1970 units % w/some problem vacant for sale Value 51% < 80% # Occupied Units % Occupants < 80% % pre-1970 Units % w/some problem vacant for sale # Households 0 ­ 1 BR Not Available 530 41.5% 67.0% 20.8% 0 869 54.5% 60.9% 5.2% 15 # Households 2 BR Not Available 2,745 38.1% 66.1% 10.9% 130 7,795 43.1% 65.4% 4.6% 210 # Households 3 BR Not Available 5,965 21.5% 86.3% 3.3% 70 27,045 28.5% 70.5% 2.2% 305

Total Not Available 9,240 27.5% 79.2% 6.5% 200 35,709 32.3% 69.1% 2.8% 530

Source: 2000 CHAS Data Affordability Mismatch for all Households

Renters tend to have more housing problems than do owners, and they tend to occupy lower cost units. It is not surprising, therefore, that the number of renters with some housing problem is higher than for owners. One can reasonably infer that this is partly due to deferred maintenance. A program of rental rehabilitation is indicated to address these conditions.

Affordability of Renter Units in 2000

Value of Renter Housing Rent < 30% # Occupied Units % Occupants < 30% % pre-1970 Units % w/some problem vacant for rent Rent 31% - 50% # Occupied Units % Occupants < 50% % pre-1970 units % w/some problem vacant for sale Rent 51% < 80% # Occupied Units % Occupants < 80% % pre-1970 Units % w/some problem vacant for sale 0 ­ 1 BR 2 BR 3 BR Total

1,550 64.5% 41.9% 29.7% 120 4,275 50.2% 69.5% 46.9% 410 5,365 63.9% 52.7% 54.6% 190

1,070 45.8% 56.5% 29.9% 125 4,370 37.4% 67.2% 40.0% 340 7,320 50.9% 48.3% 38.7% 305

1,425 32.6% 66.3% 17.2% 30 1,920 28.4% 76.8% 30.7% 35 2,595 43.5% 59.2% 37.8% 45

4,045 48.3% 54.4% 25.3% 275 10,565 40.9% 69.9% 41.1% 785 15,280 54.2% 51.7% 44.1% 540

Source: 2000 CHAS Data Affordability Mismatch for all Households

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Housing Overcrowding To cope, more lower-income households find themselves facing the following options: 1. spend more than 30% of their incomes for housing, 2. live further away from their jobs in order to find less-expensive housing. This will increase commuting times and congestion on area roadways, or 3. "double-up" with relatives or other families in order to reduce per-person housing expenses. In fact, as the table below indicates, Kane County has the highest rate of overcrowded housing in the metropolitan area, outside Cook County.

Source: Metropolis 2020

Question #3: Has the grantee included a discussion of any racial or ethnic groups that have a disproportionately greater need in comparison to the needs of a particular income category? Note: Disproportionately greater need exists when the percentage of persons in a category of need who are members of a particular racial/ethnic group is at least 10% points higher than the percentage of persons in the category as a whole. See Section 91.205 (b)(2) Answer: Yes (Please see the following narrative.)

The communities of Carpentersville, Elgin, and Aurora have sizeable Hispanic and smaller African-American populations (see the following table), while the others (including the rural communities) are mostly non-minority. There are increasing numbers of Asians entering the housing market as well, but there are no concentrations 21

among this group. Housing in communities with higher minority concentrations is generally (but not always) more affordable than in non-minority jurisdictions, and more expensive in the latter. Prices are, in fact, almost beyond the reach of middle-income households in the Tri-Cities, especially on the west side of the Fox River, according to one real estate broker. This has resulted in the concentration patterns just described. Definition of Area of Minority Concentration Any area having a racial and/or ethnic concentration in excess of 25% is deemed to have a higher than average representation of minority residents. There are few such areas in Kane County outside of Elgin, Carpentersville, and Aurora. The following Table identifies the communities with the largest concentrations of minority residents. The reader will then find the 2000 census tract map for Kane County, which identifies areas of racial and/or ethnic concentrations. The other Kane County communities have much smaller minority populations, all below 5% of their total population.

Concentrations of Racial & Ethnic Minorities by Census Tract

Community Elgin Carpentersville Aurora North Aurora South Elgin Montgomery Kane County State of Illinois United States Source: 2000 Census Total Population 94,987 30,586 142,990 10,585 16,100 5,471 404,119 12,419,293 281,421,906 # & % African-American 6,427 1,279 15,817 474 415 165 23,279 1,876,875 34.658,190 6.8% 4.2% 11.1% 4.5% 2.6% 3.0% 5.8% 15.1% 12.3% # & % Hispanic 32,430 12,410 46,557 1,025 1,664 741 95,294 1,530,262 35,305,796 34.3% 40.6% 32.6% 9.7% 10.3% 12.5% 23.7% 12.3% 12.5%

Of the County's 95,294 Hispanic residents, 91,397 are found in three communities, Elgin, Carpentersville, and Aurora. This is 96% of the total. With the exception of Aurora, with 11.1%, no Kane County community has more than 7% African-American residents. Please note that the table does not include multi-racial or ethnic categories. The numbers therefore include a variety of racial and ethnic identities.

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B. Homeless

Question #1: Has the grantee satisfactorily identified the nature and extent of homelessness, and is there a continuum of care concept? (See Table 1A in Appendix 1 of this Plan.) Information should be on both homeless singles and families (and subpopulations) that are either sheltered/unsheltered or threatened with homelessness. Answer: Yes (Please see the following narrative.)

The agencies which serve the County's homeless population, and consequently their services, appear to be located in two major nodes, Aurora in the south and Elgin in the north, with a smaller locus found in the Tri-Cities area. There are, according to the Continuum of Care for Kane County, 10 major agencies which assist the homeless: Hesed House (in Aurora), PADS of Aurora, PADS, Inc. Transitional Housing Living Community of Aurora, PADS of Elgin, and Lazarus House (in St. Charles), the Community Crisis Center of Elgin, Cornerstone Shelter for Boys, NCO Youth and Family Services, Wayside Cross Lifesprings Women's Ministry and Master Touch Men's Ministry, Mutual Ground, Ecker Center for Mental Health and Larkin Center. A description of the mission and services rendered by each of these agencies can be found on pp. 17 ­ 18 of the Continuum of Care's 2003 SuperNOFA application, found in Appendix 2 at the end of this Plan. Despite the number of homeless service agencies, there are gaps. Homeless shelters provide only temporary escape from the elements, and while several agencies provide emergency and, to a lesser extent, transitional shelter, there are no permanent emergency, few transitional housing, and no permanent housing facilities available. During the summer, moreover, both the Aurora and Elgin shelters close. To compensate the Aurora PADS makes available the rear of its property for a tent city. Soup kitchens continue to operate through the summer months. One result is the immediate full occupancy at these shelters once the doors re-open in fall. Development plans are underway, but they will just begin to address the problem. The existing system cannot, therefore, address every need. Specific estimates for the County's homeless population with special needs follow: Chronically Homeless The Continuum of Care for Kane County estimated that there were a total of 95 chronically homeless individuals in Kane County at the time of its 2003 SuperNOFA application. Chronic Substance Abuse Individuals with chronic substance abuse often find themselves without jobs or housing, since they may be incapable of finding or retaining employment. They may require

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supportive services, and if not treated effectively, may engage in anti-social or criminal behavior, sometimes just to find housing (through incarceration). The County's 2003 Continuum of Care SuperNOFA application estimated the need of 150 sheltered individuals. Seriously Mentally Ill The County's Continuum of Care estimates there to be 138 sheltered individuals. SMI individuals have difficulty obtaining effective treatment, due to budget cut backs, which have closed SMI treatment and prevented agencies from providing outreach services. These people may be unable to adequately care for themselves and find adequate housing. Dually Diagnosed Homeless Individuals According to national statistics, approximately one-third of all SMI individuals have substance abuse problems, often due to "self-medication". Dually diagnosed individuals experience very similar problems as SMI individuals, and are hurt by a lack of effective treatment options. It is therefore estimated that there are 46 dually-diagnosed homeless individuals in Kane County. Veterans The Continuum of Care estimated that 19 veterans live in shelters, who need supportive services, as well as housing, so that they may be reintegrated back into mainstream life. Persons with HIV/AIDS The Kane County Health Department reported 243 cases through 2002. Assuming that 40% of all affected persons reside in Aurora, and excluding them from this Plan, there are 146 people living with HIV/AIDS in the area of the Consortium. If 117, or 80% of that total, are individuals, the remaining 29 live with families. Of these, 20% are likely to be homeless. As a result, the Consortium estimates there to be 23 homeless individuals living with HIV/AIDS, and 6 families affected by HIV/AIDS in the area of the Consortium. Victims of Domestic Violence The Continuum of Care for Kane County indicated a total of 29 homeless victims of domestic violence in its 2003 SuperNOFA application. Youth There are 37 homeless youth residing in the area of the Consortium, primarily to escape family problems. These are, by definition, individuals. Other There are no other special subsets of the homeless population.

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The Continuum of Care for Kane County is developing a Homeless Management Information System (HMIS) to allow more accurate estimates of homeless needs in the area of the Consortium. Until it is available, however, the Continuum relied on a Pointin-Time Survey, conducted on February 20, 2003, to identify homeless needs. This survey found a total of 505 homeless individuals and families in Kane County. Of these, only 18 are considered to be chronically homeless. The resulting numbers are provided in the following table.

Point-In-Time Survey of Homeless Needs - 2/20/03

Type of Assistance Sheltered Emergency Homeless Individuals Families with Children Persons in Homeless Families with Children Total3 251 34 70 321 Transitional 82 12 38 120 18 0 0 18 351 46 108 505 Unsheltered TOTAL

Source: Continuum of Care Gaps Analysis, p. 21, 2003 SuperNOFA Application

This table in part reproduces Table 1A, Homeless and Special Needs Populations, found in Appendix 1 at the end of this Plan.

Question #2: Has the grantee identified homeless facilities and services needs for homeless individuals and homeless families with children, both sheltered and unsheltered and homeless subpopulations? Answer: Yes (Please see the following narrative.)

Homeless Facilities As mentioned, there are several facilities that provide emergency shelter and related services for homeless families and individuals. These are identified below, along with a description of the scope of services provided by each. These are named and described below. Facilities for non-homeless special needs populations are also identified below. Inventory of Homeless & Special Needs Facilities and Services Hesed House, located in Aurora provides year-round emergency shelter through its Public Action to Deliver Shelter (PADS) Inc. Program, which has two main components.

3

All numbers are estimates.

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·

·

PADS, provides overnight emergency shelter along with food and hospitality to as many as 225 individuals. Related counseling, medical, legal and other services are offered on campus, by partner agencies. In the summer months, Hesed House makes available the extensive rear of its property for a tent city. Transitional Living Community provides shelter year round for individuals or families. This Program assists individuals and families who are in transition from homelessness to permanent housing. Participants must be employed. It also provides counseling and education services, and has helped many persons back into society.

Elgin Public Action to Deliver Shelter, located in Elgin, is a non-profit ministry, which uses churches to provide shelter on a rotating basis from October through April. From May through September referral services are coordinated from the PADS office and provided through inter-agency agreements. Community Crisis Shelter in Elgin, provides emergency shelter for persons dealing with domestic violence, sexual abuse, homelessness, and other emergencies. Its population is primarily comprised of women. It provides meals and an extensive array of supporting services designed to address virtually all needs of clients. It also provides transitional housing for females 18-21 years of age and six transitional housing units to families with children in community apartments. Mutual Ground of Aurora provides shelter, counseling and basic educational services for abused spouses and their dependents. The program also provides assistance to male spouses but houses these individuals in local hotels. Mutual Ground provides training for clients, including Information Technology classes, and English as a Second Language (ESL) classes. It has also worked through area churches to identify at-risk women, and offers bi-lingual counseling services to help at-risk Latino women. Cornerstone Shelter for Boys, a program of NCO Youth & Family Services, provides emergency shelter, food, and services for homeless boys, aged 13 -17. Lazarus House, located in St. Charles, provides year-round emergency shelter to homeless individuals and families and transitional housing to 28 individuals. The transitional housing program assists individuals and family transition from homelessness into permanent housing. Participants must be employed. The program also serves individuals at risk of homelessness by providing meals and other support services. Wayside Cross Ministries, located in Aurora, treats drug and alcohol abuse, and provides transitional housing for up to 90 men. On occasion, it shelters non-addicted homeless individuals. People enter treatment from all walks of life and social strata, receive drug and spiritual counseling and, ultimately, job referral and job placement services.

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Lifespring Center, located in Aurora, is the women's with children's division of Wayside Cross Ministries. It provides shelter, education, and life skills training for women in need. It can house approximately 35 individuals at one time. Larkin Center, located in Elgin, provides supervised transitional housing to SMI homeless individuals, and provides mental health services for the chronically mentally ill. The Salvation Army, with locations in Aurora and Elgin, provides limited financial assistance for rent and utilities to homeless individuals and those at-risk of homelessness and financial assistance to families and individuals for shelter at local hotels. It also provides food bags, clothing and medical attention to the homeless and, finally, assistance in resume writing, interviewing skills, and money for phone calls and bus transportation for individuals looking for work. The Ad-hoc Disaster Committee, composed representatives of the City of Aurora, Wayside Cross, the Red Cross, and Aurora Township, operates to address shelter needs in the case of an emergency or severely cold weather. The Association for Individual Development (AID), in Aurora, serves adults with special needs, and offers housing to meet the client's needs. Its current inventory includes 25 scattered site apartments serving 50 individuals receiving supplemental supportive services, an eight-unit apartment building serving 20 individuals with 24 hour supervision, and eight group homes serving 82 mentally ill to severely retarded adults. The Community Counseling Center, located in Elgin, provides counseling services for persons with mental illness, persons with HIV/AIDS and for individuals and groups. The Ecker Center for Mental Health, located in Elgin, provides counseling services for persons with mental illness, persons with HIV/AIDS. It also provides permanent supportive housing. The reader is referred to the Continuum of Care for Kane County's 2003 SuperNOFA application, found in Appendix 2, for a more detailed listing of the agencies and services offered to homeless and special needs populations.

Question #3: Has the grantee identified the extent of homelessness by racial/ethnic group, if the information is available? Answer: No (Data is not available. Please see the following narrative.)

There are no reliable estimates of homelessness by race. It is believed, however, that the Hispanic population tends to be underrepresented in the ranks of the homeless, perhaps because of it tends to rely on private support networks. As a consequence, 27

although many Hispanics are poor, the number requesting homeless assistance tends to be low.

Question #4: Did the grantee describe the jurisdiction's strategy for developing a system to address homelessness and the priority needs of homeless persons and families (including the subpopulations identified in the needs section)? The jurisdiction's strategy must consider the housing and supportive services needed in each stage of the process, i.e. preventing homelessness, outreach/assessment, emergency shelters and services, transitional housing, and helping homeless persons (especially any persons that are chronically homeless) make the transition to permanent housing and independent living. Answer: Yes (Please see Appendix 3.)

The reader is referred to the Strategic Plan portion of this document for detail concerning the Continuum of Care's strategy to develop a system to address homelessness.

Question #5: Did the grantee describe its strategy for helping extremely low- and low-income individuals and families who are at imminent risk of becoming homeless? Answer: Yes (Please see the following narrative.)

The Consortium plans to help ELI, VLI, and LI individuals who are at imminent risk of becoming homeless by: 1) remaining active in the Kane County Continuum of Care, 2) working to increase the number of and availability of emergency and transitional housing facilities, 3) providing housing rehabilitation assistance, and encouraging the development of affordable housing in areas close to employment opportunities, to maintain and create decent affordable housing opportunities, and 4) providing capital improvement funding, if possible and when necessary, to agencies serving the homeless and those at risk of homelessness. C. Special Needs - Not Homeless

Question #1: Has the grantee included a discussion on the estimated number of non-homeless persons in need of supportive housing, and their supportive housing needs? See Table 1B (optional) in Appendix A. Note: Estimated number of non-homeless persons should include the elderly, frail elderly, persons with disabilities, persons with alcohol or other drug addiction, persons with HIV/AIDs and their families, and public housing residents. Answer: Yes (Please see the following narrative.)

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To estimate need among special needs populations, this Plan primarily relied on estimates from the Continuum of Care for Kane County's 2003 SuperNOFA application. Please refer to Table 1B, found in Appendix A, for a rundown, by type, for this estimate. These people may be at risk of homelessness, if their needs go unmet, and include the elderly and frail elderly, persons with severe mental illness (SMI), those addicted to alcohol and/or drugs, SMI persons who are also addicted to drugs and/or alcohol, victims of domestic violence, and persons having (or related to those having) HIV/AIDS, and public housing residents. Elderly and Frail Elderly Persons The 2000 Census shows that there are 31,683 County residents over age 65, of which 11,195 (35.3%) have some kind of disability. These individuals may require special assistance to remain independent since they may, for example, have difficulty with at least one activity of daily living, or ADL, (defined as tasks like washing, cooking, reading, dressing, and doing routine household chores). The frail elderly cannot perform three or more ADL's. It is estimated that 15%, or 3,400, of 22,672 elderly households, have members who meet the definition for being frail. Details are shown in the table on the next page. The numbers are surprisingly large. Some families, fortunately, have private care resources, while others can rely on public programs, e.g. meals on wheels, homemaker's services, dial-a-ride transportation, and home chore services, to help them retain their independence. As many as 50%, or 1,700 individuals, however, still need help.

Elderly and Disabled Elderly in 20004

As % of total disabled 41.3% 36.9% 41.6% 32.5% 32.9% 29.3% 31.9% As % of total disabled 58.6% 63.1% 58.4% 67.4% 67.1% 70.7% 68.1%

Category Total population Total Disabled Sensory Physical Mental Self-Care Going out-side home

Total 31,683 11,195 3,855 7,884 2,378 2,380 5,359

As % 100% 100%

5

Male 13,106 4,133 1,603 2,564 783 698 1,711

Female 18,577 7,062 2,252 5,320 1,595 1,682 3,648

34.4% 70.4% 21.4% 21.2% 47.9%

Source: 2000 Census SF 3 Data

4 5

The numbers include elderly and disabled City of Aurora residents. Disabled seniors comprise 35.3% of the entire elderly population.

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Severe Mental Illness Support for people being treated for mental illness or retardation provided from several local agencies including NAMI (National Alliance for the Mentally Ill), the Association for Individual Development (AID), the Community Counseling Center, Larkin Center, and the Ecker Center, all of which serve Kane County. The total of all assistance is estimated, based on the Kane/Elgin/Aurora Analysis of Impediments to Fair Housing (AI), to be 302 SMI individuals and 108 households with a member who is SMI. Substance Abuse The Consortium estimates there to be 1,390 individuals and 498 households affected by substance abuse problems, based on the 2001 AI. Many of these persons are not LI, and are not in imminent danger of homelessness since they can obtain treatment through private resources. If 20%, however, lacks the resources, then 278 individuals and 100 households have special needs. Disabled Persons The 2000 Census reported that 36,878 residents in Kane County between the ages of 21 and 64 had some form of disability. Many (perhaps 80% or 29,502 people), however, are employed and are otherwise able to function without special assistance. By subtracting them from the Census total, an estimate of 7,376 disabled people with needs is derived. For purposes of this Plan it is assumed that these people have inadequate or no supports, and may need help. Needs of the Developmentally Disabled Several comments focused on the need for housing developmentally-disabled adults who can no longer live with their parents or birth families. The County estimates that approximately 0.15% of its population, or 6,062 people, are developmental disabled. Many have access to family and other supports, although these may fail once parents lose the financial and physical capacity to provide care. An estimated 25%, or 1,515 people, are not financially able to secure the help they need. There may, moreover be 3,700 disabled children in grades K-12 alone who will require such housing as they mature. This problem will therefore grow in magnitude. Victims of Domestic Abuse There are a number of women and children who are not homeless but are affected by domestic violence, and are therefore at risk of becoming homeless. They require special services. The Kane/Elgin/Aurora AI, completed in spring 2001, estimated there to be 450 individuals, and 653 family members affected by spousal abuse in Elgin and in the remainder of the County.

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Persons With HIV/AIDS The Consortium, based on estimates provided by the Kane County Health Department, estimates there to be 23 homeless individuals and 6 homeless families touched by HIV/AIDS. It estimates there to be 94 non-homeless individuals and 23 non-homeless families so affected. They are at-special risk and require special services to address their needs. D. Lead-Based Paint Hazards

Question #1: Has the grantee estimated the number of housing units with lead-based paint hazards? Note: The estimated number of units should be those occupied by low/moderate income families. Answer: Yes (Please see the following narrative.)

Kane County has many pre-1978 homes, when lead was effectively banned from paint. These have, depending on the era of construction, varying levels of lead-based paint (LBP) in the structure, and often found in the soil. Lead is a known toxin, which creates profound physiological, emotional and mental damage. Women of child-bearing age, pregnant women, children under 6, and workers exposed to lead are most at risk. Older structures are more likely to have lead, and to be deteriorated. Deterioration of painted surfaces with lead causes lead hazards for occupants. For purposes of deriving estimates of the number of homes with lead, 1980 was used to define any units which potentially contain LBP. Because older housing is often more affordable, strategies for housing preservation and rehabilitation, and for reducing or eliminating LBP hazards in them should be considered. To fully appreciate the significance of LBP hazards and the impact prescribed treatments would have on the area's housing, the potential risk should be quantified. The following Table shows the number of housing units built in various time frames. For discussion purposes, vacant units have been subtracted from the total number of units. The remainder was multiplied by the average number of persons per household in order to approximate the number of people potentially affected by the Lead Safe Housing Rule (LSHR). The CHAS book lists 0% as a factor for increases in population and new housing construction after 1978. Future changes to the estimates will be limited to the percentage variance in units and people affected.

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Occupied Housing Units Potentially Affected by Lead

# of Owner Units 15,670 5,975 12,341 12,421 14,909 40,411 101,727 # of Renter Units 7,526 2,633 3,205 5,057 8,054 5,699 32,174 # of Owners Affected by Lead 14,103 4,780 9,873 7,701 9,244 0 45,701 # of Renters Affected by Lead 6,773 2,106 2,564 3,135 4,993 0 19,571 # of Households Affected by Lead 20,876 6,886 12,437 10,836 14,237 0 65,272

Year Built

Total # of Households

Risk Factor

Before 1940 1940 ­ 1949 1950 ­ 1959 1960 ­ 1969 1970 ­ 1979 1980 ­ 2000 Total # Units

23,196 8,608 15,546 17,478 22,963 46,110 133,901

90% 80% 80% 62% 62% 0% N/A

Source: 2000 Census and 2002 Updated CHAS Data Book

By multiplying the number of dwelling units (and people) affected by the CHAS data factors, one finds that 65,272 dwelling units, 48.7% of the County's housing stock, potentially contains lead, placing their occupants at risk. The existence of lead, however, does not equate to hazardous conditions, since lead is dangerous only when the paint is not intact, i.e. in sub-standard housing. Many homes with LBP also have deficiencies that pose LBP hazards.

Lower-Income Owner-Occupied Housing Units Potentially Affected by Lead

Lower-Income Categories Low Income (51-80% MFI) Very Low Income (31-50% MFI) Extremely Low Income (0-30% MFI) Totals Source: 2000 Census % of Owners in LowerIncome Categories Total # of Owners Potentially Affected by Lead # of Lower-Income Owners Potentially Affected by Lead 6,626

14.5%

6.3%

45,701

2,879

4% 24.8% 45,701

1,828 11,333

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Lower-Income Renter-Occupied Housing Units Potentially Affected by Lead

Lower-Income Categories Low Income (51-80% MFI) Very Low Income (31-50% MFI) Extremely Low Income (0-30% MFI) Totals Source: 2000 Census % of Renters in LowerIncome Categories Total # of Renters Potentially Affected by Lead # of Lower-Income Renters Potentially Affected by Lead 4,893

25%

13%

19,570

2,544

19% 57% 19,570

3,718 11,155

In recognition of this, Kane County and the City of Elgin have, over time, implemented programs to reduce lead in residential properties.

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V. Housing and Market Analysis (91.210)

A. General Characteristics

Question #1: Has the grantee described the significant characteristics of the housing market, and the housing stock available to persons with disabilities, and persons with HIV/AIDS? (Maps and Tables 1A and 1B found in Appendix 1 at the end of this document) Note: There should be a discussion of housing supply and demand, as well as the condition and cost of the housing. The grantee should identify and describe the locations and degree of racial/ethnic minority concentrations, as well as low/moderate income families. Answer: Yes (Please see the following narrative.)

General Characteristics Kane County's housing market is strong and diverse, having a wide variety of homes, by age, type of structure, price range, and tenure (owner/renter) status. Located on the urbanizing fringe of the Chicago region, there is an abundance of new development, and several long-established cities as well. There are more owner than renter units, and neighborhoods are, for the most part growing or stable, and values are increasing. The History of Residential Development The County has experienced waves of urban growth and development since the mid1830's, first in cities, towns and villages, and more recently in suburban areas. · The first wave occurred mainly in closely developed neighborhoods of single-family homes, many within walking distance of the Central Business Districts used by the bankers, merchants and shoppers of the day. These homes comprise the residential cores of several cities and towns. Some of these centers need maintenance and supportive infrastructure improvements, while others are well tended and are magnets for residents and businesses. The second occurred after World War II when, armed with the G.I. Bill, the families of returning servicemen obtained housing, often smaller and mass produced, with two to three bedrooms. These were quickly and inexpensively produced. Between 1949 and 1969, 24,762 (approximately 25% of the County homes) were built. The third wave arrived in the 1970's, with much construction outside of developed areas. As a result, municipalities began to annex land. Some 55,320 units were built between 1970 and 2000. This is over 50% of all single-family homes in existence; and construction continues, with larger and more opulent housing increasingly apparent. New rental units were also developed, with the number of units increasing by 13,753 units (or 42.7%) since 1970. A net loss of 500 rental units, however, occurred during the 1990's. 34

·

·

·

The following chart depicts construction activity in the six-county Chicago region, including Kane County, during the 1990s.

Source: Metropolis 2020

Question #2: Did the grantee identify and describe any area of low-income concentration and any area of minority concentration either in a narrative or one or more maps, stating how it defines the terms "area of lowincome concentration" and "area of minority concentration"? Answer: Yes (Please see the following narrative.)

Areas of High and Low Income Kane County has a north-south orientation and is, in ways, bilaterally similar. If folded like a piece of paper along its center east to west, the areas opposing each other across the fold tend to have similar characteristics. · · · · The Central part encompasses the tri-Cities area of St. Charles, Geneva and Batavia. North Aurora and South Elgin are found further away from that center. Still further from the center are the Cities of Elgin and Aurora, the two largest and among the most diverse communities. Furthest from the center one finds Carpentersville and Montgomery, which show the least amount of similarity.

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The following table tracks several characteristics for the communities. Parallels between them quickly emerge, and may be useful in shedding light on conditions in the County. Statistics for the State of Illinois and for the nation as a whole have been added to enhance the comparison.

Paired Community Characteristics 2000

Median Family Income $55,921 $61,319 $58,404 $61,113 $71,190 $70,780 $82,828 $88,852 $81,689 $55,545 $50,046 Per Capita Income $17,424 $23,395 $21,112 $22,131 $25,676 $25,552 $33,969 $33,026 $27,783 $23,104 $21,587 Median Value of SingleFamily Home $116,300 $135,200 $141,400 $135,500 $154,000 $149,400 $196,200 $217,900 $202,700 $130,800 $119,600 Household Size in 2000 3.45 2.52 2.94 3.04 2.85 2.60 2.62 2.85 2.75 2.63 2.59

Community

Population in 2000

Families in Poverty

Foreign-Born Residents

Carpentersville Montgomery Elgin Aurora South Elgin North Aurora St. Charles Geneva Batavia State of Illinois United States

30,586 5,471 94,487 142,990 16,100 10,585 27,896 19,515 23,866 2,419,293 281,421,906

483 (6.7%) 52 (3.7%) 1,444 (6.4%) 2,137 (6.2%) 89 (2.1%) 319 (3.0%) 157 (2.1%) 422 (2.2%) 155 (2.5%) 1,291,958 (10.7%) 33,899,812 (12.4%)

8,006 (26.4%) 291 (5.8) 22,258 (23.7%) 30,858 (21.5%) 1,419 (9.1%) 849 (8.0%) 1,840 (6.6%) 887 (4.5%) 1,242 (5.2%) 1,529,058 (12.3%) 31,107,889 (11.1%)

Source: 2000 Census Fact Sheet for Selected Kane County Communities

The parallels are closest for the Tri-Cities (St. Charles, Geneva, and Batavia). Incomes closely match in terms of average family and per capita incomes. All are affluent, have fairly low rates of poverty, and have home values substantially above the State and national averages. They also have vibrant neighborhoods and considerable new development. Family (as opposed to household) sizes are comparable and each has small numbers of foreign-born residents. Development is imminent west of Geneva due to the planned extension of the Metra commuter rail line from Geneva to the Village of Elburn, and housing is already being developed. The Villages of South Elgin and North Aurora also match each other in terms of wealth (family, per capita income, and rates of poverty). Their median home values are well above those for the State and U.S. as a whole, but not as high as those in the Tri-Cities. Finally, they have higher numbers of foreign-born residents, although not as high as the state or the country. The Cities of Aurora and Elgin also parallel each other. Both were established in the mid-1800s, have older and historic neighborhoods, and considerable new development. Most differences between them, with the possible exception of single family home values, are minor. There are, however, sizeable statistical differences between 36

neighborhoods within each city, which is not seen in the summary data. This suggests the existence of divergent housing sub-markets which require special strategic consideration by the Consortium. The parallels, however, aren't as strong between the Villages of Carpentersville and Montgomery. The former has lower overall incomes and housing values, larger families, and more foreign-born residents than does the latter. Carpentersville, alone among the County comparators, has numbers which, with the exceptions of median family income and number of families in poverty, compare unfavorably with the national and state figures. Community need, as measured by the census data described in the table, is highest in Carpentersville, which suggests that there is need for the investment of housing and community development resources. Montgomery has characteristics reflecting some of the other comparators. Similar characteristics attract similar types of people and encourage more similar development, and by using the data, it is possible to identify several distinct housing sub-markets in the County. Areas of lower income are identified in the map found in Appendix 1. B. Public and Assisted Housing

Question #1: Has the grantee described the number and condition of the public housing units, results from the Section 504 needs assessments, and the strategies for improving operation and living conditions for public housing residents? Answer: Yes (Please see the following narrative.)

There are two public housing authorities in Kane County: the Aurora Housing Authority (AHA) which administers 656 public housing units and 800 Section 8 Housing Choice Vouchers, with roughly 730 issued in late August 2004. The Housing Authority of Elgin (HAE) is the second public housing agency. It administers a total of 255 low rent public housing units and has 913 Section 8 Housing Choice Vouchers. HAE has waiting lists for both public and Section 8 housing. There are also an unknown number of households receiving Section 8 assistance through other housing authorities or through the State of Illinois. There were no special Section 504 conditions identified by HAE in its evaluation of its public housing units. The condition of public housing in Elgin and Aurora is generally satisfactory, although a number require various degrees of maintenance at a given time. HAE has a significant need for modernization, indicating in its most recent 5 Year Agency Plan, a total financial need of $8,000,000 to completely renovate its public housing units. It is applying Capital Fund moneys received from HUD to address these needs, as they are received. It has also received some CDBG funding from the City which has also

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addressed modernization needs. Both AHA and HAE have maintenance and capital improvement programs, and programs to improve operational efficiency, in place and operative.

Question #2: Has the grantee identified the number of public housing units expected to be lost from the inventory? Answer: N/A (Please see the following narrative.)

HAE has no plans to demolish public housing in the near future at either agency. Neither agency has a HOPE VI grant program. Both AHA and HAE have applied Federal and local policies, procedures, and guidelines in a fair, firm and consistent manner, thereby ensuring equitable treatment of all public housing applicants and residents in a manner that is compliant with Federal, state and local laws. Despite these successes, there are other issues still in need of attention. These include providing more affordable housing for lower-income persons. The lack of emergency housing is, according to HAE, serious, especially with slow economic conditions, and losses of high wage jobs. Finally, crime is still a concern, in neighborhoods with public housing.

Question #3: Check if this jurisdiction has any HOPE VI projects awarded or in development that may result in a net loss of units. With regard to federal, state and locally assisted units other than public housing, has the grantee identified the number and targeting of units by income level and household type, and the number of units expected to be lost from the assisted housing inventory for any reason? Answer: Yes (Please see the following narrative.)

There are eleven assisted housing developments (identified in the following table) in the County. The data do not reveal numbers of units in every development, so it is not possible to determine the extent to which they address the housing need. It is remarkable that of the eleven developments, five are located in Elgin, three in Aurora, two in Carpentersville, and one in Batavia. This supports claims of housing overconcentration in the more affordable communities. It is also fair to say that without these developments there would be a much smaller range of housing opportunities for lower-income households.

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Federally Assisted Rental Developments

Development Aurora Towers/Sage Crest Forest Ridge Apartments Fox Shore Apartments Batavia Apartments Foxview Apartments I & II Burnham Mills Apartments Burnham Schoolhouse Knollwood Apartments The Mill The Town Homes Total # of Assisted Units Location 827 North Lake Street, Aurora 1215 Second Avenue, Aurora 430 North River Street, Aurora 1171-1343 East Wilson Street, Batavia One Middlesex Drive, Carpentersville 269 Center Street, Elgin 1350 Fleetwood Drive, Elgin 222 Locust Street, Elgin 1287 Fleetwood Drive, Elgin 1287 Fleetwood Drive, Elgin Type Family Family Family Family Family Elderly Family Family Family Family Bedroom Type 1/2/3 BR 1/2/3 BR 1/2/3 BR 1/2/3 BR 2/3 BR 1/2 BR 1/2/3 BR 1/2/3 BR 1/2/3 BR 1/2/3 BR Assisted Units 102 89 94 258 Not Available Not Available 27 96 Not Available 120 786 Expiration Date 2006 9/2007 2005 3/2005 9/2005 2019 2006 2021 2010 2022

Source: U.S. Department of Housing and Urban Development

As indicated in the above table, some developments are due to expire within the year and several are due to expire over the next few years. It is unclear at this time how many will renew their contracts and how many will opt-out of the program. C. Homeless Facilities and Services

Question #1: Have the facilities and services that compose the grantee's continuum of care been identified? Appropriate facilities would be: · Emergency shelters, · Transitional shelters, and · Permanent/supportive housing. Answer: Yes (Please see the following narrative.)

This matter was already reviewed in this listing of facilities and agencies which provide services for homeless and non-homeless special needs populations. Please refer to the preceding narrative (pp. 13-17) and Table 1 B, Special Needs (Non-Homeless) Populations.

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D. Special-Needs Facilities and Services

Question #1: Has the grantee described the facilities/services to assist non-homeless persons in need of supportive housing? Discussion should also include a description of appropriate supportive housing for persons leaving mental/physical health facilities. Answer: Yes (Please see the preceding narrative, pp. 13-17, and Table 1B, for list of facilities serving the homeless and non-homeless persons with special needs.)

E. Barriers to Affordable Housing

Question #1: Has the grantee described public policies that affect affordable housing? Factors which affect affordable housing may include: · Building and zoning codes; · Environmental problems; · Impact fees; · Cost of land; and · Incentive programs such as tax abatement or down-payment assistance. Note: For Urban Counties, does the discussion include factors in both incorporated and unincorporated areas? Answer: Yes (Please see the following narrative.)

As indicated, there is a variety of housing in Kane County. Some is affordable but much is expensive. The Kane County Board and the City of Elgin's Mayor and City Council have, over time, authorized several actions to remove barriers to affordable housing in their communities. The Consortium, through this Plan, has committed to preserving and creating affordable housing for lower income persons. It has, for example... · participated in the development of a multi-jurisdictional (Kane County, City of Aurora, and City of Elgin) Analysis of Impediments to Fair Housing in spring 2001. This document acknowledged a need for regional affordable housing to create affordability throughout Kane County. Both jurisdictions have undertaken several initiatives identified in the AI. actively served the Kane County Continuum of Care, in several standing committees, and assisting in the preparation of that body's applications for SuperNOFA funding. established the Kane/Elgin HOME consortium, in order to expand housing resources in the County, and to promote the development of new affordable housing in all areas, as well as preserve and maintain existing housing. The Consortium has, as a

· ·

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· · · · · ·

primary objective, the development of new and heretofore unused strategies and tools to promote affordable housing, particularly in areas which lack it. These are further described in its strategic plan. funded housing rehabilitation services with CDBG Program funds and, in the case of Elgin, HOME assistance made available through a State CHDO. continued and, where it can, expanded, its programs to create housing opportunities for Consortium residents. worked to improve the quality of inadequate or non-existent infrastructure in unincorporated areas to improve the quality of housing for residents, and to facilitate their annexation by adjacent municipalities. established reasonable minimum and non-exclusionary lot sizes in several communities. established master plans in several communities that allowed for increased density through attached single-family housing and town home development. The higher the density, the more affordable the unit. allowed townhouses (in Elgin) to be constructed and some have been rented out after development, providing a form of rental housing not previously available.

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VI. Strategic Plan (91.215)

When reviewing this section of the Consolidated Plan, keep in mind that the priorities/objectives should relate to the needs identified in the Housing and Homeless Needs and Housing and Market Analysis sections.

A. General

Question #1: Does the grantee describe the basis for assigning the priority given to each category in Table 2A? Answer: Yes (Please see the following narrative.)

The Consortium will, as a matter of first priority, address the housing and community development needs of ELI, VLI and LI households, supporting, for example, the use of CDBG and HOME funds for LI homeowner rehabilitation. It will also, as a matter of priority, seek affordable housing opportunities in areas that have few of them, particularly areas of job growth and communities identified as falling below the 10% unit affordability threshold established by the State of Illinois. It will also seek to improve public facilities and the infrastructure necessary to promote orderly and sound community development. Non-housing funds may be allocated to address the needs of lower income households regardless of their neighborhood of residency, if they are consistent with Plan priorities, and in keeping with Federal program requirements. Specific funding strategies follow: Priority Needs and Basis for Assigning Priority to Each To the extent possible, the Consortium will leverage its investment with as many nonFederal resources as possible over the next five years. Tabular depictions are found in Tables, 1A, Homeless and Special Needs Populations, 1B, Special Needs NonHomeless Population, 1C, Summary of Specific Homeless/Special Needs Objectives, 2A, Priority Needs Summary Table, 2B, Community Development Needs, 2C, Summary of Specific Housing/Community Development Objectives, and Table 4, Priority Public Housing Needs. Tables 3 are found in the Annual Action Plan. Priority #1 ­ Housing Consistent with the housing needs assessment and market analysis discussed earlier, the Consortium's objectives regarding affordable and special-needs housing are to preserve existing units throughout the area served by the Consortium, and to create additional units in areas where they are currently lacking and near employment centers. Specifically, the Consortium will address owner-occupied and renter-occupied housing needs as follows: 42

1. Provide first-time homebuyer assistance and rehabilitation assistance to lowincome homeowners throughout the area. Homebuyer and home-maintenance education, and financial management counseling services will be encouraged as a component of such assistance. 2. Provide gap financing for affordable homeownership and rental opportunities, by providing development subsidies designed to reduce the market price of such housing. This activity is targeted for those areas where there is a jobs/housing mismatch, and where the supply of affordable housing is limited. Five-Year Goal: Given the variety of programs, the goal for the next five years is to assist 85 (@ $20,000/unit) households with housing rehabilitation, and 70 households with down-payment assistance. This will occur through a combination of CDBG, HOME, and matching funding provided by housing partners. Renter housing may be more difficult to provide, and 10 rental units will be rehabilitated. The Consortium will, if feasible, also work with developers to develop new, affordable renter housing. Priority #2: Infrastructure Public infrastructure directly affects the quality of neighborhoods and communities. The County and City will, individually use their CDBG fund to provide gap financing for critical infrastructure projects. Generally, there are three main areas of concern: 1) storm water drainage, 2) sanitary sewers and potable water supply, and 3) streets and sidewalks. In unincorporated areas, County projects will improve neighborhoods with inadequate infrastructure, thus enabling their annexation to adjacent municipalities. Within incorporated areas, priority will be placed on projects that are part of an overall effort to improve neighborhood conditions. Five-Year Goal: The five year goal for improving infrastructure is 3 projects. This will be achieved through CDBG funding, and with State and local resources. Priority #3: Public Facilities Local governments and non-profit organizations often lack the financial resources necessary to make capital improvements to community and public facilities. Kane County and the City of Elgin will support the construction, rehabilitation and improvement of public facilities like parks, community centers, and facilities from which human services are provided to area citizens. Five Year Goal: During the life of this Plan, a total of 3 public facilities will be constructed or improved, using a combination of local governmental, private, CDBG and, in the case of a Transitional Housing facility, possibly HOME funding. Priority #4: Homelessness The Consortium will, as mentioned, work to increase the availability of both emergencyshelter and transitional-housing services and facilities. It will, moreover, continue to

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support the Continuum of Care for Kane County in its drive to coordinate and fund critical service needs. Five Year Goal: The Kane County Continuum of Care will continue to implement the goals outlined in the Continuum of care's Plan to End Homelessness. Although that entity has primarily responsibility, both the City and the County will use CDBG, to a limited extent, for homeless prevention activities and for capital support of emergency shelters (including improvements) in the community. Other funds will be obtained by the Continuum of Care for Kane County, and from private sources and foundations. Priority #5: Planning and Capacity-Building With a high rate of growth and development pressure, planning is critical to ensuring that orderly sustainable growth occurs, and that a high quality-of-life is maintained for all citizens. The Consortium will support community planning in general, and will undertake, where necessary, specific planning activities that contribute to the effective use and leveraging of resources. Particular attention will be given to planning activities that foster redevelopment in the urban-corridor along the Fox River or focus on locations identified as "Priority Places" in the County's 2030 Land Resource Management Plan. As the County and City expand their participation in Federal housing and community development programs, they will work to identify and build capacity in the non-profit community (especially potential Community Housing Development Organizations, CHDO's) with which they may partner to address the needs identified in this plan. Five-Year Goal: The Consortium will identify and develop 3 HOME CHDOs; and will implement 3 redevelopment activities in the Urban Corridor. The Consortium will use a combination of CDBG, HOME and local resources to achieve these results.

Question #2: Has the grantee identified any obstacles to meeting underserved needs? Answer: Yes (Please see the following narrative.)

Obstacles to Meeting Underserved Needs The major obstacles to addressing underserved needs are as follows. · · · · The Consortium must quickly develop systems and programs to be effective. The cost of housing is increasing, making it difficult to implement affordable projects. Repair costs have risen, reducing the number of homes which can be repaired. Burdens posed by IDIS and other regulatory requirements compound the difficulty of 44

program implementation, by diverting staff time, and away from the actual project. · · The ability to provide comprehensive human services has been hurt by funding cutbacks. The public lacks awareness of the scope of available human services, and inadequate transportation may prevent service delivery, even when known. This is particularly true of the severely mentally-ill, developmentally disabled, and other special needs populations. There is no way to systematically address mental health concerns across Kane County, making it difficult for providers to consistently and effectively address the needs of residents. Related to the above, there is a lack of outreach, counseling and psychiatric services in Spanish, particularly for the mentally-ill and dually diagnosed individuals. There is insufficient funding for transportation, child care, and other services essential to help un- and under-employed persons join the ranks of the working and middle class. Efforts to house the homeless are hindered by, too few facilities, inadequate space, by a lack year round facilities, and by the aforementioned service delivery issues. The number of unsheltered homeless has therefore been increased. There are insufficient resources to make needed infrastructure and public facility improvements, and important needs go unattended as a result.

·

· ·

·

·

Question #3: Has the grantee summarized the priorities and specific objectives, describing how funds that are reasonably expected to be made available will be used to address identified needs? Answer: Yes (Please see the preceding narrative and Tables 1A, 1B, 1C, 2A, 2B, and 2C.)

Question #4: For each specific objective, has the grantee identified proposed accomplishments the jurisdiction hopes to achieve in quantitative terms over a specific time period, or in other measurable terms as identified and defined by the jurisdiction? Answer: Yes (Please see the preceding narrative and Tables 1A, 1B, 1C, 2A, 2B, and 2C.)

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B. Affordable Housing

Question #1: Did the grantee state how the analysis of the housing market and the severity of housing problems and needs of extremely low-income, low-income, and moderate-income renters and owners identified in accordance with 91.205 provided the basis for assigning the relative priority given to each priority needs category in the priority housing needs table prescribed by HUD? Answer: Yes (Please see the following narrative.)

Strategy for Creating Affordable Housing The Consortium's strategy is based on the Housing Needs Analysis found on pp. 5-20, and is designed to address the needs of the various sub-populations in accordance with the severity of need identified in the analysis. It therefore seeks to: a) Promote housing repair for homeowners. This action, combined with neighborhood revitalization activities in mature, potentially declining neighborhoods, will help promote neighborhood stability, improve living conditions, and even increase wealth for the ELI, VLI and LI households who inhabit them. b) Promote the development of new and affordable owner housing opportunities in areas which are currently not affordable, including employment centers, so that LI renters and other first-time homebuyers may be able to purchase them. The consortium hopes that this will promote increased employment opportunities for workers who may currently be shut out of the job market, thereby increasing their ability to meet their needs from their own resources. It is also hoped that this will reduce long-term poverty and dependence. c) The Consortium will extend the reach of these objectives by partnering, if possible, with private non- and for-profit housing corporations, and with non- and for-profit lenders. Although resources will be insufficient to address all needs, improvements can be made. The Consortium, moreover, intends for its projects to "seed" more extensive future development. As indicated, the Consortium cannot significantly address renterhousing needs.

Question #2: Does the affordable housing section identify how the characteristics of the housing market will influence the use of funds made available for rental assistance, production of new units, rehabilitation of old units, or acquisition of existing units? Answer: Yes (Please see the preceding narrative for Priority #1.)

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Question #3: Does the grantee propose accomplishments to specify the number of extremely low, low, moderate, and middle income families to whom the grantee will provide affordable housing as defined in 24 CFR 92.252 for rental housing and 24 CFR 92.254 for homeownership over a specific time period? Answer: Yes (Please see the preceding narrative for Priority #1 and Table 2A, found in Appendix 1.)

C. Homelessness

Question #1: Does the grantee describe the strategy for helping low-income families avoid becoming homeless? Answer: Yes (Please see the following narrative.)

In addition to this narrative, the reader is referred to Table 1A, Homeless and Special Needs Population, which charts the extent and type of need in the Consortium. The Consortium, as indicated, will work to provide affordable housing for lower-income households, including those at-risk of becoming homeless. Efforts to provide housing in major employment centers will help some who lack access to jobs obtain that access. This may make the difference between self-sufficiency, and dependency and possible homelessness. The County will also work with service providers to address critical needs of the homeless and those at risk of homelessness. It will not directly fund those services, but intends to provide capital improvement funding, when possible. It will, finally, work through the Continuum of Care for Kane County to expand service scope and effectiveness.

Question #2: Does the grantee describe the jurisdiction's strategy for reaching out to homeless persons and assessing their individual needs? Answer: Yes (Please see the following narrative.)

Continuing outreach to homeless and at-risk populations is critical to the mission of the care agencies identified in this Plan. That strategy is fully described in the Housing and Homeless Needs Assessment, particularly in the identification of the Agencies which serve the County's homeless population. The Kane County Continuum of Care's 2003 application for SuperNOFA funding, also describes a detailed strategy to reach out to homeless families and individuals. These are found on pp. 13-17 and in Appendix 2, respectively.

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Question #3: Does the grantee describe the jurisdiction's strategy for addressing the emergency shelter and transitional housing needs of homeless persons? Answer: Yes (Please see the following narrative.)

The Consortium wants to serve its homeless population, but is constrained by a lack of resources. It must therefore invest its CDBG, HOME, (when warranted and possible) plus other available funds, in facilities that provide shelter and services to homeless persons. The rationale and five-year objectives are found in the preceding discussion of priority objectives (see Priority Objectives 3 and 4 on p. 33). This strategy should cause maximum benefit for the limited amount of funds available. The Consortium, moreover, will continue to work with agencies serving homeless and special needs populations, particularly with the Continuum of Care for Kane County, in order to obtain essential Federal grant support for its activities.

Question #4: Does the grantee describe the jurisdiction's strategy for helping homeless persons make the transition to permanent housing and independent living? Answer: Yes (Please see the following narrative.)

The Consortium has developed several strategies to help the homeless successfully move to permanent housing. First and foremost, it will promote an array of affordable housing opportunities, as previously mentioned. Second, it will continue its active involvement in the Continuum of Care for Kane County to develop viable strategies for the homeless and homeless special needs populations. Third, it will provide CDBG, HOME and other funds when possible, appropriate, and necessary, for public facilities to deliver housing and services to the homeless. As previously stated, however, funds are very limited and all needs cannot be addressed. D. Other Special Needs

Question #1: With respect to supportive needs of the non-homeless, does the plan describe the priority housing and supportive service needs of persons who are not homeless but require supportive housing? Answer: Yes (Please see the following narrative.)

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The Consortium's strategy for addressing other special needs mirrors its homeless strategy, and the reader is referred to the immediately preceding paragraph for details. The reader may also refer to Table 1B, Special Needs (Non-Homeless) Populations for detail concerning the extent of need identified. It is found in Appendix 1, at the end of this Plan. E. Non-Housing Community Development Plan

Question #1: Did the grantee describe the priority non-housing community development needs, reflecting the needs for the type of activity, in terms of dollar amounts estimated to meet the goal of the type of activity? Note: The Community Development component of the plan must state the grantee's specific long-term and short-term community development objectives (including economic development activities that create jobs) that must be developed in accordance with the statutory goals described in 24 CFR 91.1 and the primary objectives of the CDBG program. Answer: Yes (Please see the following narrative and Tables 2B ­ for both Kane and Elgin, as required.)

Both partners in the Consortium have a variety of non-housing community development needs. Their older urban communities face aging infrastructure (water, sewerage, streets and related items), plus a need for public facilities. The developing areas require new infrastructure and facilities to meet the needs of a growing population. There are also (in the County) un-incorporated areas which have under-developed or poorly developed infrastructure (primarily water and sewerage) which, if upgraded to modern standards, would allow for municipal annexation, with upgraded services for their residents. The Consortium will therefore address these needs. Details for Kane County and for the City of Elgin are provided on two separate Tables 2B, Community Development Needs, which shows the universe of non-housing need in both Consortium partners. It should be noted that neither partner in the Consortium intends to directly address economic develop and job creation, although the County intends to stimulate the production of affordable housing opportunities in employment centers. The City of Elgin, with its supply of affordable housing in relatively close proximity to employment centers, has no such need. This should enable LI households to take advantage of employment opportunities which they might not otherwise have.

Question #2: Is the grantee requesting approval of a Neighborhood Revitalization Strategy Area? If yes, does it meet the requirements of CPD Notice 96-1? Note: Separate documentation should be maintained to verify compliance with CPD Notice 96-1. Answer: No

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The Consortium does not intend to develop Neighborhood Revitalization Strategy Areas. F. Barriers to Affordable Housing

Question #1: Does the grantee describe the jurisdiction's strategy to remove or ameliorate negative effects of public policies, that serve as barriers to affordable housing as identified in the needs assessment section? Answer: Yes (Please see the preceding paragraph on page 34.)

G. Lead-Based Paint Hazards

Question #1: Does the plan outline the actions proposed or being taken to evaluate and reduce lead-based paint hazards, and describe how the lead-based paint hazard reduction will be integrated into housing policies and programs? Answer: Yes (Please see the following.)

As mentioned in the analysis of homes with LBP (see pp. 23-25), there are many dwellings which contain lead, and which therefore place their occupants at risk of lead poisoning. In order to address this concern, both the County and the City as Consortium partners, and individually through their CDBG Programs, have and will continue to work diligently to educate staff and contractors on assisting units with lead hazards. Both jurisdictions have licensed Lead Supervisors on staff to ensure contractors are adhering to federal and state regulations. Between both jurisdictions there is approximately 12 licensed lead contractors, located throughout the consortium area with extensive experience working on lead based projects. All aspects of the lead regulations have been incorporated into the City's and County's rehabilitation programs, thereby safeguarding occupant safety in homes repaired. The City of Elgin has partnered with the Illinois Department of Public Health or IDPH and Kane County Health Department in the Get The Lead Out Grant Program. The program is funded through HUD and is administered through IDPH. Funding priority is for low and moderate income families who have children with elevated blood lead levels. The Consortium may pursue future lead abatement funding, given Program continuance by HUD.

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H. Anti-Poverty Strategy

Question #1: Does the grantee describe the jurisdiction's goals, programs, and policies for reducing the number of poverty level families? Has the grantee programs such as: · Family Self-sufficiency; · Head Start; · State and Local Programs; · Section 3; · Welfare to Work; and · Workforce Development Initiative. Answer: Yes (Please see the following narrative.)

The Consortium developed its priorities to address and reduce poverty in the community. An emphasis on affordable housing throughout the Consortium's jurisdiction, for example, will not only house the poor, but will do so in a way to promote proximity to work, thereby enhancing employment opportunities. Its work, moreover, with the Continuum of Care for Kane County has provided and will continue to provide shelter for the homeless and those at risk of homelessness, and services designed to re-integrate them back into the economic mainstream. Finally, its ongoing collaboration with many providers has increased the availability and effectiveness of human services, which alleviate conditions of poverty. These are now incorporated into policy for the life of this Plan, and so will be continued into the future. The reader is again referred to the preceding listing (pp. 19-21) of agencies which provide shelter and services for homeless and impoverished County residents; and to the 2003 Application for SuperNOFA funding submitted to HUD by the Continuum of Care for Kane County for detail concerning the strategies currently being employed to address poverty. I. Institutional Structure

Question #1: Does the grantee explain the institutional structure, including private industry, nonprofit organizations, and public institutions, through which the jurisdiction will carry out its housing and community development plan, assessing the strengths and gaps in the delivery system? Answer: Yes (Please see the following narrative.)

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The following entities participated in the development and implementation of the Consortium's Consolidated Plan and the Annual Action Plan. Kane County Board and Elgin City Council, and Mayor of Elgin The legislative bodies of Kane County and the City of Elgin must approve all local funding decisions, establish programs and services, and create ordinances and policy directives, which, in Elgin, must also be approved by the Mayor. The two legislative bodies, and the Mayor, have exercised this function, providing housing and supportive services, land use and zoning, fair housing, and supportive affordable housing concepts, and have provided other housing services for all segments of the County, and the City of Elgin. All fully supported the establishment of the HOME Consortium, and approved local participation within it. County Development Department and City Planning Department There is extensive professional planning and program administrative capacity in the City of Elgin's Department of Planning and in Kane County's Development Department. Both have proven records of effective CDBG and, to a lesser extent indirect HOME, program administration. Both entities have professional planners and administrators who are familiar with Federal program requirements and who are dedicated to extending the reach of affordable housing within the Consortium. Both entities, moreover, have building functions to augment CDBG and HOME program implementation. These include: · · Code enforcement which plays an important role in housing preservation and neighborhood stabilization; and Planning, which through the development of Master and Land-Use Plans (such as the recently adopted County 2030 Plan and the pending Elgin Comprehensive Master Plan) provide guidance for the Consortium in the design and implementation of the HOME and CDBG programs.

CDBG and HOME Commissions Two commissions have been established by the Kane County Board to recommend program policies and procedures for the County's CDBG Program and the Consortium's HOME Program. Each has an advisory and a deliberative function, providing input regarding program design (including the Consolidated and Annual Plans) and the selection of specific projects. The CDBG Commission is comprised of 18 members, appointed by the Kane County Board. The membership includes six County Board representatives, six municipal officials (or their designees), and six private citizens. The HOME Commission is comprised of ten members. Five of the members are appointed by the Kane County Board, and five are appointed by the Elgin City Council. Historic Preservation Both the City and County have active historic preservation programs. The City of Elgin's Heritage Commission oversees three historic districts, provides a number of financial incentives for building rehabilitation projects, and sponsors an annual awards 52

program. Kane County's Historic Preservation Commission covers the unincorporated portions of the county and is responsible for reviewing alterations proposed for rural landmarks as well as one historic district and two road corridors designed under the County's Rustic Roads Program. Additionally, five other municipalities that participate in the Consortium have their own historic preservation programs. Those communities include Batavia, Geneva, St. Charles, Wayne, and West Dundee. Economic Development · The Kane County Economic Development Advisory Board (EDAB) promotes economic development in Kane County by providing a wide variety of technical and financial assistance programs for economic and community development to urban and rural communities and organizations in Kane County. The Board's mission is to form economic partnerships that will allow both Kane County and its municipalities to enhance and sustain the economic strength of the region. It encourages the retention, expansion and attraction of businesses that contribute to favorable economic growth and job creation in Kane County and its communities. To achieve this, the Board is working to provide an easily accessible, comprehensive database of the economic, demographic and real-estate resources available in Kane County. The Board provides a valuable tool for the implementation of the County's 2030 Plan. It strives to create a balance between growth management and economic development to ensure economic growth that maintains and enhances the infrastructure, transportation system, workforce and quality of life in Kane County. The Economic Development Department of the Elgin Area Chamber of Commerce promotes economic development in the Elgin area by providing: (1) a link to the appropriate parties at the local, county, and state levels to assist in the preservation and expansion of economic growth; (2) providing demographic material; (3) referrals; and (4) site tours. The Economic Development Department's mission is to expedite the development process to preserve and expand economic growth in the Elgin area.

·

Planning Organizations There are several quasi-governmental planning entities with established records of assisting regional and local planning efforts. These include the following: · The Northeast Illinois Planning Commission (NIPC), which provides general planning assistance throughout the Chicago metro region. NIPC data was used in the development of this Plan, and the Consortium expects to do so in the future. The DuKane Valley Council of Mayors & Administrators is a voluntary organization of municipal governments that foster a cooperative effort to address problems, policies, and plans that are common and regional. The Council works to: (1) identify, discuss and bring into focus regional challenges and opportunities associated with growth, development, and conservation; (2) collect and exchange information of regional interest; (3) communicate among governments and agencies; and (4) promote interaction with other regional councils. Through its involvement with the Metropolitan Mayors Caucus, the Council provides a region-wide forum 53

·

within which municipal officials may cooperate and build consensus on a variety of public policy issues and multi-jurisdictional challenges, including economic development, school funding and tax reform, workforce readiness, energy reliability and security, air quality, funding for transportation and other infrastructure, housing, and emergency preparedness. Homeless Prevention and Assistance The Continuum of Care for Kane County and the Regional Roundtable assist in identifying the needs of the homeless population, coordinating services, assessing overlaps and/or gaps in the present network, and developing strategies for providing emergency, transitional, and permanent housing. The Continuum was created in 1999 through the coordinated efforts of the Cities of Aurora and Elgin, and Kane County (which includes twenty-six other municipalities). The Continuum advocates a regional approach to addressing homelessness in the area. With financial support from HUD, it is in the process of implementing a Homeless Management Information System (HMIS) to improve the planning and coordination of services to the homeless population. State of Illinois The State of Illinois, through the Illinois Housing Development Authority (IHDA) is in the forefront of the housing-affordability effort. IHDA receives funds from the State, the Federal Government, and raises its own financing through the issuance of bonds. As a result, IHDA may provide financing critical for the development of affordable housing in the Consortium area. It is also an important resource in developing home purchase programs for low- and moderate-income first-time homebuyers. One recent State housing initiative is the Governor's Affordable Housing Task Force, created in September 2003 by Executive Order. The Task Force is responsible for developing state housing policy, particularly as it relates to ELI households, the elderly, the disabled, and those who are either homeless or are at-risk of becoming so. In January 2005, the Task Force released a report on housing titled "Building for Success: Illinois' Comprehensive Housing Plan." The report provides the framework for creating affordable housing in Illinois. In 2003, the State legislature passed into law the Illinois Affordable Housing Planning and Appeal Act. The State contracted with the Illinois Housing Development Authority to develop a report on affordable housing. In 2004, the Illinois Housing Development Authority (IHDA) issued a report to assist in the implementation of the Act. The report focuses on housing affordability, and has established a minimum threshold where 10% of a community's housing must be affordable for LI families, based on federal income limits. An inventory of affordable housing in the municipalities served by the Consortium showed affordability rates ranging from 2% to 68%, with nearly half of the localities near one end of the spectrum or the other. More than 40% of the units, for example, in Burlington, Carpentersville, Elgin, Maple Park, Montgomery, and Pingree Grove are affordable, with less than 10% meeting the affordability criteria in Barrington Hills, Gilberts, Sleepy Hollow, Sugar Grove, and Wayne. These figures demonstrate that the Consortium's affordable housing is distributed unevenly.

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Housing Advisory and Advocacy Councils Entities such as NIPC, the Statewide Housing Action Coalition (SHAC), the Kane County Housing Action Coalition (an affiliate of SHAC), and the Kane County Homeless Coalition assist communities in the coordination, planning, financing, development and operation of affordable housing for special needs populations, including the elderly, homeless, disabled, persons with HIV/AIDS, and the mentally ill. Without these advisory/advocacy groups, it is doubtful that community resources could be pooled to solve regional housing issues. The Consortium will continue to consult and work with these agencies as appropriate to achieve Plan objectives. Non-Profit Housing Organizations Non-profit organizations, including community development corporations (or CDC's), can coordinate and combine public and private resources to provide affordable housing. They are very important partners in the implementation of this Plan. Non-profits are flexible, accessible, understand community issues, and can leverage financing from many sources. They can, therefore, fill a gap in the affordable housing spectrum. A list of non-profit housing organizations follows: · Habitat for Humanity of Northern Fox Valley and Fox Valley Habitat for Humanity build single-family homes that are sold to very-low income families that have participated in the construction process. Additionally, the agencies provide flexible financing to increase the affordability for their clients. Joseph Corporation provides homebuyer assistance through its private secondary market, primarily in the southern part of Kane County. The original mortgage can be used for acquisition, acquisition and rehab, or refinance plus rehab, all at very low interest rates. Joseph Corporation provides mortgage counseling, home budgeting, and training in seasonal maintenance to first-time homebuyers, who are also trained to deal with crisis management. While this training occurs primarily in public workshops, individual counseling is also available. Community Contacts/Housing Continuum is a non-profit agency that receives funding through the Low Income Energy Assistance Program (LIHEAP), Illinois Home Weatherization Assistance Program (IHWAP), and the HOME Program. All of the programs are designed to assist low-income homeowners and renters. LIHEAP provides a one-time winter benefit for their energy bills. IHWAP is designed to conserve fuel and save money for the homeowner by insulating attics and walls, repairing/replacing windows and doors, and caulking and weather-striping openings. HOME provides funding for a housing rehabilitation program and a first-time homebuyer program. Creative Assistance Development, Inc. (CADI) is a non-profit agency that provides affordable housing for low-income individuals, such as persons with disabilities, elderly and section 8 clients, through the purchase and rehabilitation of apartment buildings. CADI has also begun a program of purchasing and rehabbing single family homes to resell to income eligible first time homebuyer.

·

·

·

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·

Fox River Valley Center for Independent Living Accessibility Rehab is mainly a referral and counseling agency for those who are physically impaired. They also received funds from Aurora's CDBG housing rehab program for accessibility rehab grants. These grants are for any necessary modification of a residence to make it accessible to the occupant. This assistance is for income qualified applicants, whether they own or rent. Hope Fair Housing Center provides fair-housing services to residents of Kane County in order to ensure that unlawful discrimination does not occur. Neighborhood Housing Services of Elgin (NHS) is a non-profit organization affiliated with the national Neighborhood Housing Services organization. NHS has a first-time homebuyer program that provides down payment assistance to income-eligible clients. Housing Rehabilitation Programs, sponsored by the City of Elgin and Kane County, utilize CDBG funds (and perhaps HOME funds) in the rehabilitation of housing. Shelters for Healthy Environments is a non-profit organization that provides accessible and affordable housing to income-eligible clients, especially those with disabilities.

· ·

·

·

Private For-Profit Housing Developers The private sector is often overlooked as a source of affordable housing; but the private sector develops, owns, and operates the largest proportion of housing in the Nation. NAHA, the statute which created the HOME program, refers to "public/ private partnerships". For-profit developers receive Federal and/or State grants, loans, mortgage financing and mortgage insurance to build subsidized housing, and provide and administer housing subsidies to resident households. Some have used their own capital, bank loans, and public dollars to initiate (re) development. Private capital should therefore be pursued as a legitimate means to leverage funds, and the Consortium will attempt to do so as it implements this Plan. Lenders By providing construction and permanent financing, lenders play a crucial role in the development of affordable housing. Many banks, in response to the Federal Community Reinvestment Act (CRA) have created CDC's to provide loans for projects in low-income neighborhoods and distressed communities. CDC's are used by HUD and IHDA to process subsidized mortgage and home-improvement loan applications, and have actively sought business opportunities in lower-income neighborhoods. Banks, through the CDC process, have become increasingly involved in community redevelopment and are now, in many instances, major players making valuable contributions.

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Question #2: Does the grantee describe the organizational relationship between the organizational relationship between the jurisdiction and the public housing agency, and include the appointing authority for the commissioners or board of the housing agency, etc.? Answer: Yes (Please see the following narrative.)

Two PHA's, as mentioned, serve Kane County. One, the HAE was created by City ordinance and has enabling powers to acquire land, finance, construct and operate public housing, as provided for under Illinois Law. Its Executive Director is hired by a 7 member Board of Commissioners and appointed by the Mayor of Elgin. It provides 255 public housing units and 913 Section 8 vouchers to subsidize rents for income-eligible households. The City of Elgin has financially supported HAE, most recently in 2004, with a CDBG allocation to purchase 60 wall mounted air conditioners for its public housing units. The HAE also participated in the development of this Plan. The Aurora Housing Authority does not serve the Consortium, but does, however, provide housing assistance to non-Aurora residents and, because of Section 8 Housing Voucher portability, can do so outside of the corporate boundaries of the City of Aurora. It is therefore considered a potential housing resource for purposes of this Plan. J. Coordination

Question #1: Does the plan identify the jurisdiction's activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health, and service agencies? Answer: Yes (Please see the following narrative.)

The Consortium will enhance coordination between various stakeholders in order to increase program effectiveness, particularly as it pertains to health, mental health, other public services, and to public and assisted housing agencies. These strategies have already been identified, with the exception of that for public housing, which is cited below.

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K. Public Housing

Question #1: Does the grantee describe the jurisdiction's activities to encourage public housing residents to become more involved in management and participate in homeownership? Answer: Yes (Please see the following narrative.)

As indicated, there is only one Public Housing Authority existing within the jurisdiction of the Consortium, the Housing Authority of Elgin is working with families in a Family SelfSufficiency (FSS) program to encourage long-term independence. It is hoped that the families graduating from the FSS program will attain a degree of economic independence and, with it, the ability to obtain their own housing.

Question #2: Has the grantee described the manner in which the plan of the jurisdiction will help address the needs of public housing? Note: Amended to Title 1 October 21, 1998, Section 105(b)(11). Answer: Yes (Please see the following narrative.)

As indicated, funding is limited, and it will be difficult for either the Consortium or its two members to provide significant financial assistance to HAE. The City has, as mentioned, recently funded property improvements. The possibility and extent of additional financial assistance by the either partner cannot, however, be known. Financial, staff, and other assistance to improve public housing in Elgin is possible, given resource adequacy, in the future.

Question #3: Is the grantee served by a troubled PHA as designated by HUD? If YES, has the grantee in which any troubled public housing agency is located, described the manner in which the State or unit of local government will provide financial or other assistance to such troubled agency in improving its operations to remove such designation? Note: Amended to Title 1 October 21, 1998, Section 105(g). Answer: No (Please see the following narrative.)

The HAE has not been designated a troubled PHA by HUD.

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VII. Action Plan (91.220)

Question #1: Has the Standard 424 Form for the applicable programs been included with the correct dollar allocations and signed by the appropriate official? Answer: Yes

Question #2: Is the DUNS number listed? Answer: Yes

Question #3: Did the grantee describe the geographic areas of the jurisdiction (including areas of low income and/or racial/minority concentration) in which assistance will be directed during the next year. Answer: Yes (Please see the following narrative.)

Question #4: Did the grantee describe the basis for allocating investments geographically within the jurisdiction (or within the EMSA for HOPWA) (91.215(a)(1)) during the next year and the rationale for assigning the priorities. Answer: Yes (Please see the following narrative.)

A. Resources

Question #1: Has the grantee described the Federal Resources, and private and non-Federal public resources expected to be available to address priority needs and specific objectives identified in the plan? Answer: Yes (Please see the following narrative.)

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Question #2: Did the grantee describe how HOME and/or ESG matching requirements will be satisfied? Answer: Yes (Please see the following narrative.)

B. Activities 91.220(c)

Question #1(a): Has the grantee described the CDBG-funded activities for the program year in a complete manner? Answer: Yes (Please see the following narrative.)

Question #1(b): Has the grantee described the HOME-funded activities for the program year in a complete manner? Answer: Yes (Please see the following narrative.)

Question #1(c): Has the grantee described the ESG-funded activities for the program year in a complete manner? Answer: No (Please see the following narrative.)

The Consortium does not receive funds from HUD's Emergency Shelter Grant Program.

Question #1(d): Has the grantee described the HOPWA-funded activities for the program year in a complete manner? Answer: No (Please see the following narrative.)

The Consortium does not receive funds from HUD's Housing Opportunities for Persons with AIDS (HOPWA) Program. Rather, it is part of the nine-county Chicago EMSA (Eligible Metropolitan Statistical Area) for which the City of Chicago serves as the Formula Grant Administrator. For more information, please contact: 60

·

Erica Salem Director of Planning and Development Chicago Department of Public Health 333 South State Street DePaul Center, Room 200 Chicago IL 60604 Phone: 312-747-9430 Fax: 312-747-9663

Question #2: Does the action plan contain a summary of priorities and specific objectives that will be addressed during the program year? Answer: Yes (Please see the following narrative.)

Question #3: Do the proposed activities correspond to the priority needs identified/local specific objectives listed in the Consolidated Plan? Note: The Jurisdiction should use priority needs as identified in Table 2A and 2B of the Consolidated Plan. Answer: Yes (Please see the following narrative.)

Question #4: Are the proposed activities identified in sufficient detail, including the number and type of families that will benefit from the proposed activities and locations, so that citizens know the degree to which they may be affected? Answer: Yes (Please see the following narrative.)

C. Expenditure Limits

Question #1: Has the grantee exceeded the 20% administrative cap for CDBG? Answer: No

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Question #2: Has the grantee exceeded the 15% public service cap for CDBG? Answer: No

Question #3: Has the grantee exceeded the 10% administrative cap for HOME? Answer: No

Question #4: Has the grantee met the 15% CHDO set-aside for HOME? Answer: Yes

Question #5: Has the grantee exceeded the 3% administrative cap for HOPWA or the 7% administrative cap by project sponsors under HOPWA? Answer: N/A [Please see the previous narrative under Section B. Activities, question #1(d).]

D. Geographic Distribution 91.220(d)

Question #1: Did the grantee include a narrative, maps, or tables that identify the geographic areas in which it will direct assistance? Answer: Yes (Please see the following narrative.)

Question #2: Does the grantee provide a description of the areas, including areas of minority concentration, in which it will direct funds? Answer:

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Yes (Please see the following narrative.)

Question #3: Does the grantee provide the rationale for the priorities for allocating investment geographically for each program, including within the metropolitan area (or a State's service area) for the HOPWA program? If no, explain the basis for the no response. Answer: Yes (Please see the following narrative.)

E. Homeless and Other Special-Needs Activities 91.220(e)

Question #1: Have homeless prevention activities been proposed? Answer: Yes (Please see the following narrative.)

Question #2: Have emergency shelter, transitional housing, programs to assist in the transition to permanent housing and independent living been proposed? Answer: Yes (Please see the following narrative.)

Question #3: Are supportive housing activities being undertaken to address the priority housing needs of persons who are not homeless (elderly, frail elderly, persons with disabilities, person with HIV/AIDS, persons with alcohol or other substance-abuse problems)? Answer: Yes (Please see the following narrative.)

F. Other Actions 91.220(f)

Question #1: Does the Action Plan include other proposed actions, which will address the following, if applicable: · Fostering decent housing; · Public housing improvements and resident initiatives;

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· · · ·

Evaluation and reduction of lead-based hazards; Reducing the number of persons below the poverty line; Developing institutional structures/enhancing coordination between housing and services agencies; and Assisting troubled public housing agencies.

Answer: Yes (Please see the following narrative.)

G. Program-Specific Requirements 91.220(g)

CDBG Question #1: CDBG ­ Does the total amount of funds allocated equal the amount of the grant plus program income and carryover funds? Answer: Yes (Please see the following narrative.)

The total amount of funds allocated equals $1,369,728, which is the amount of CDBG funds Kane County will receive from HUD in Program Year 2005. The County does not anticipate receiving any program income during Program Year 2005.

HOME Question #2(a): Did grantee (PJ) describe other forms of investment? (See Section 92.205) If grantee (PJ) plans to use HOME funds for homebuyers, did they state the guidelines of resale or recapture, as required in 92.254? Answer: Yes (Please see the following narrative.)

HOME Question #2(b): If grantee (PJ) plans to use HOME funds to refinance existing debt secured by multifamily housing that is being rehabilitated with HOME funds, did they state its refinancing guidelines required under 24 CFR 92.206(b)? Answer: N/A (Please see the following narrative.)

The Consortium does not plan to use HOME funds to refinance existing debt secured by multifamily housing that is being rehabilitated with HOME funds.

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HOME Question #2(c): Resale Provisions -- For homeownership activities, did the participating jurisdiction describe its resale or recapture guidelines that ensure the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4). Answer: No (Please see the following narrative.)

HOME Question #2(d): HOME Tenant-Based Rental Assistance -- Did the participating jurisdiction describe the local market conditions that led to the use of a HOME funds for tenant based rental assistance program? (If the tenant based rental assistance program is targeted to or provides a preference for a special needs group, that group must be identified in the Consolidated Plan as having an unmet need and show the preference is needed to narrow the gap in benefits and services received by this population.) Answer: N/A (Please see the following narrative.)

HOME Question #2(e): If a participating jurisdiction intends to use forms of investment other than those described in 24 CFR 92.205(b), did the jurisdiction describe these forms of investment? Answer: Yes (Please see the following narrative.)

HOME Question #2(f): Did the jurisdiction describe the policy and procedures it will follow to affirmatively market housing containing five or more HOME-assisted units? Answer: Yes (Please see the following narrative.)

HOME Question #2(g): Did the jurisdiction describe actions taken to establish and oversee a minority outreach program within its jurisdiction to ensure inclusion, to the maximum extent possible, of minority and women, and entities owned by minorities and women, including without limitation, real estate firms, construction firms, appraisal firms, management firms, financial institutions, investment banking firms, underwriters, accountants, and providers of legal services, in all contracts, entered into by the participating jurisdiction with such persons or entities, public and private, in order to facilitate the activities of the participating jurisdiction to provide affordable housing under the HOME program or any other Federal housing law applicable to such jurisdiction?

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Answer: Yes (Please see the following narrative.)

HOME Question #2(h): If a jurisdiction intends to use HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds, did it state its financing guidelines required under 24 CFR 92.206(b)? Answer: N/A (Please see the following narrative.)

The Consortium does not plan to use HOME funds to refinance existing debt secured by multifamily housing that is being rehabilitated with HOME funds.

American Dream Downpayment Initiative Question #3(a): If the jurisdiction planned to use American Dream Downpayment Initiative (ADDI) funds to increase access to homeownership, did it provide the following information: i. description of the planned use of the ADDI funds? ii. plan for conducting targeted outreach to residents and tenants of public and manufactured housing and to other families assisted by public housing agencies, for the purposes of ensuring that the ADDI funds are used to provide downpayment assistance for such residents, tenants, and families? iii. a description of the actions to be taken to ensure the suitability of families receiving ADDI funds to undertake and maintain homeownership, such as provision of housing counseling to homebuyers? Answer: i. Yes (Please see the following narrative.) ii. Yes (Please see the following narrative.) iii. Yes (Please see the following narrative.)

Minority Homeownership Question #4: Did the jurisdiction provide an estimate of the total number of minority households expected to be assisted in becoming homeowners? Answer: Yes (Please see the following narrative.)

H. Monitoring 91.230

Question #1: Does the grantee describe the standards and procedures that it will use to monitor activities carried out in furtherance of the plan? Answer:

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Yes (Please see the following narrative.)

Question #2: Does the Plan describe actions to be taken by the grantee to monitor its performance in meeting its goals and objectives set forth in its Consolidated Plan? Answer: Yes (Please see the following narrative.)

Question #3: Does the Plan describe steps/actions being taken to insure compliance with program requirements, including requirements involving the timeliness of expenditures? Note: If timeliness of expenditures is an issue, please make sure the grant award letter includes language regarding appropriate actions the grantee should take to remedy this problem. Answer: Yes (Please see the following narrative.)

Question #4: Does the Plan describe steps/actions it will use to ensure long-term compliance with housing codes, including any actions or on-site inspections it plans to undertake during the program year? Note: For example, a HOME program grantee should identify steps it will take to review affordable housing projects it has funded to insure compliance with all HOME program requirements. Answer: Yes (Please see the following narrative.)

Question #5: Does the Plan describe actions to be taken by the grantee to monitor its subrecipients, (including sponsors or administering agents)? Answer: Yes (Please see the following narrative.)

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