Partnership with Kane County intended to fix foreclosed homes

Kane County officials are keeping their eyes on Elgin’s southwest side, waiting for final approval to move forward with the latest round of work in a foreclosure rehabilitation program.

The county received $1.47 million from the Illinois Housing Development Authority (IHDA) in September and plans to start purchasing houses in March. The county’s development committee approved changes to the budget Tuesday to include use of the federal funds in 2012.

Josh Beck, program manager in the Kane County Office of Community Reinvestment, said the money will go toward buying houses the private market is unlikely to scoop up. That may mean the home sales won’t turn a large profit, even though Beck said that is certainly the goal.

“We’re buying the houses that nobody else wants to buy,” Beck said. “ ... So they can sit there and continue to deteriorate and bring down the neighborhood or we can invest a little more money than the actual sale price and get them back on the market.”

The county received almost $2.6 million in the first allocation of Neighborhood Stabilization Program funds from the U.S. Department of Housing and Urban Development. Elgin received its own $2.2 million at the start of the program and has since partnered with Kane County for the latest project, where funds were first funneled through IHDA before reaching the county level.

Sarosh Saher, Elgin’s senior planner, said IHDA determined the city’s southwest side was an area with the greatest need. County officials approached the city to partner for the grant opportunity — a move Saher said “thrilled” his office.

“It’s an area we feel can certainly benefit from these funds,” Saher said of the southwest side.

Beck said seven homes would be chosen once the money is released — hopefully in March. Until then his office is constantly monitoring real estate listings to see which houses have proved hardest to sell. The worst cases will make it into the program and eventually be put back on the market in top shape.

Kane County first focused on foreclosed homes in Carpentersville, North Aurora, St. Charles and South Elgin. Five homes have already been sold with six more still listed for sale.