Kane County has long list for Fannie Mae bailout money

Nearly $2.6 million in Fannie Mae/Freddie Mac bailout money will come to Kane County as soon as April. There are plenty of low- to moderate-income housing needs to address with that cash, including foreclosed properties, according to new report presented Tuesday by Kane County's Development Committee.

The formation of a new, five-member committee of elected officials will basically function as loan supervisors to determine which projects and organizations get a piece of the stimulus pie.

The new committee - whose members have yet to be selected - will utilize an updated version of the priorities the county uses in doling out Community Development Block Grant money. That puts entities that will receive CDBG money this year in a good position to come back for a second helping when the Fannie Mae/Freddie Mac cash rolls in. Carpentersville stands to be get a decent chunk of the stimulus money as it will receive CDBG funding for multiple projects and has one of the highest foreclosure rates in the county.

But Carpentersville isn't alone. Of Cook and the collar counties, only DuPage County outpaced Kane County in the yearly increases in its foreclosure rate between 2005 and 2008, Kane County staff reported Tuesday. Over that time, Kane County's foreclosure rate increased 294 percent. DuPage's foreclosure rate increased 347 percent.

But foreclosures won't be the only problem the county might address with the funds.

Work force housing in the major employment areas is identified as a "significant need" in the county's priority list. The majority of low-income, minority and immigrant residents live in the larger communities, like Elgin. But much of the job growth is occurring outside the larger cities where affordable housing is sparse and jobs are tougher to commute to.

The county also must provide more housing assistance to the elderly as they represent the majority of low-income households.

More and better rental housing is also needed for the 57 percent of renter households that shelter lower-income residents.

"The strongest need for rental housing assistance is found among extremely- and very low-income households, with a disproportionate need among African-American households," the report states. In order to afford a two-bedroom apartment, a person earning minimum wage must hold down at least three full-time jobs or share costs with other relatives or friends.

There are also too few homeless shelters and treatment facilities for the developmentally disabled, mentally ill, veterans, frail elderly and people suffering from domestic abuse or HIV/AIDS, according to the report. There is a larger population of all those groups than the existing facilities in the county can help right now.