Elgin selects housing projects to receive federal block grant funding

The Elgin City Council gave preliminary approval Wednesday to allocate over $1 million in federal housing grant money to a program that would provide neighborhood improvements to low-income residents and fund an affordable housing project.

The city expects to have $1,034,533 in Community Development Block Grant funds from the U.S. Department of Housing and Urban Development available for 2026. The total includes $256,104 carried over from previous years.

CDBG funds from HUD are traditionally used by municipalities to improve neighborhood parks and nonprofit facilities, repave city streets, redevelop quality affordable housing and provide services to address homelessness.

A review panel recommended funding for the Owner-Occupied Housing Rehabilitation Program, the Affordable Housing Fund, a rehab project at Senior Services and program administration.

The Owner-Occupied Housing Rehab Program will get $300,000 to continue providing housing rehabilitation assistance to income-eligible homeowners throughout the community to address code violations and other building and life/safety issues.

The Affordable Housing Fund would receive $558,240. Most, if not all, of that money would go to a project to convert the historic two-story building at 4 S. Gifford St. owned by Elgin Area School District U-46 back into apartments.

U-46 is offering the building at no cost, and the property will return to the tax rolls after completion.

Elgin Senior Services would be awarded $20,693 to help fund a rehabilitation project replacing existing deteriorated windows and doors with custom fabricated units that are appropriate for the historic structure at 101 S. Grove Ave.

About $151,000 would be allocated to CDBG program planning and administration. Another $4,300 would go to the Kane County Continuum of Care Program, which brings additional state and federal funding to Elgin agencies that serve homeless people..

The city invited more than 30 nonprofit organizations to submit applications for funding in March and held an application workshop in April.

Only two nonprofits attended the workshop, with one submitting an application. The panel found the application did not meet federal eligibility requirements.

Community Development Department Director Marc Mylott said the number of nonprofit organizations participating in the program has declined over the years in Elgin because of the level of reporting and constant monitoring required for a CDBG grant.

“Many of these not-for-profits are experiencing difficulties in staffing that can take on the administration, even though we’re there to hold their hands all along the way, to get through a CDBG grant,” he said.

The city has participated in the CDBG program since 1975 and has been awarded approximately $43.8 million under the program over the years.