Kane County names bailout-eligible areas

Kane County officials on Wednesday named and ranked the communities eligible for a piece of the $2.57 million coming to the area as part of the Fannie Mae and Freddie Mac federal bailout.

The line forms behind Carpentersville, which the county deemed to be the most plagued by foreclosures, subprime loans and unemployment. Carpentersville has a 6.5 percent foreclosure rate with 33 percent of its homes financed by subprime mortgages and an employment rate of 8 percent.

The 11 other areas that will be targeted all have some combination of those three factors at play in a high enough degree to meet the needy threshold the county created. County officials emphasized that none of the money will actually prevent anyone currently facing foreclosure from losing their home. The money can only be used to buy abandoned and foreclosed homes, create landbanks of foreclosed properties, demolish blighted structures or redevelop demolished or vacant properties.

Kane County Chairman Karen McConnaughay said Wednesday she doesn't expect the county to get heavily into the businesses of buying up properties and just holding onto them indefinitely.

Either way, the end result of the funds must be the creation of "affordable housing." That does not mean more Section 8 housing is coming to Kane County. Indeed, quite a few individuals should meet the income levels that would make them potentially eligible for the bailout cash.

Property is "affordable" if it falls within the reasonable purchase or renting price of someone whose income is 120 percent or less of the local average. For a household with two people, that's a family income of $72,400 or less.

Property already meeting that threshold can only be involved if the end result lowers the affordability bar to people with incomes that are 50 percent or less of the local average. For a family of two, that's a household income of $30,150.

Kane County Chairman Karen McConnaughay said the county will pay close attention to comments offered in the coming weeks as the plan goes out for public review. She said she expects somewhat of a battle between local social service agencies vying for funds to establish housing that targets people with disabilities and/or mental health needs.

The county will host a special meeting at 8:45 a.m. on Nov. 24th to take a final vote on approving the plan.