Residential Rehabilitation
Residential Rehabilitation
The Village of Schaumburg provides a Residential Rehabilitation Loan Program to assist residents with the correction of code violations, substandard living conditions, health or safety hazards, deficiencies in the home, and weatherization improvements. Funds are provided through the Community Development Block Grant (CDBG) program allocated to the village by the U.S. Department of Housing and Urban Development (HUD).
Priority is given to homeowners who are seniors or disabled.
Type of Loans Available
The village provides eligible single-family detached homeowners with interest free (0%) loans up to $25,000. Homeowners who live in a multi-family unit are eligible for interest free (0%) loans up to $15,000. The homeowner signs a second mortgage on the property for the contracted amount. Loans are due and payable when the home is sold, the home is no longer the owner’s primary residence, there is a change of title, or in 30 years, whichever occurs soonest.
How Does the Rehabilitation Program Work?
Village of Schaumburg residents who own and occupy their home, income qualify, have 15 percent clear equity, and whose net asset value does not exceed $300,000 for a single family home ($180,000 for a multi-family unit) are eligible to submit an application. Additional information such as copies of tax returns, paychecks, mortgage statements, and bank accounts must be submitted.
Once the application is approved, an inspection of the home is conducted by village staff with the homeowner. This inspection helps identify code violations and repairs that need to be completed. A specification list is developed by staff and reviewed by the homeowner. Registered contractors will then bid on the project. The lowest, most responsible contractor is awarded the contract.
Work is performed on the home, and upon completion of work and approved inspections, the village pays the contractor directly.
HUD Income Limits*
| Household Size | Income Limit |
|---|---|
| 1 Person | $61,800 |
| 2 Person | $70,600 |
| 3 Person | $79,450 |
| 4 Person | $88,250 |
| 5 Person | $95,350 |
| 6 Person | $102,400 |
| 7 Person | $109,450 |
Eligible Projects
The program will not pay for fences, sheds, garages, room additions or purely cosmetic improvements.
| Category | Eligible Projects |
|---|---|
| Basic Structures | – Roof Replacement – Foundation Repairs |
| Electrical Systems | – Repairs – Service Upgrades – Replacement of Electrical Fixtures |
| Plumbing Systems | – Repairs – Service Upgrades – Replacement of Plumbing Fixtures |
| Heating Systems | – Furnaces – Hot Water Heaters |
| Weatherization Improvement | – Insulation – Window Replacement – Door Replacement – Installation of Storm Doors – Siding Replacement |
| Interior Improvements (eligible under certain restrictions) | – Carpet/Flooring Replacement – Repair/Replacement of Porches and Exterior Stairs – Grading & Drainage Improvements |
How Do I Apply?
The Village has partnered with North West Housing Partnership to administer the Residential Rehabilitation Loan Program. To request an application or to discuss details about the program, please contact Michelle Hill at NWHP at michellehill@nwhp.net or 847-969-0561.
For general questions, you may also contact Marisa Krawiec, Community Planner, at mkrawiec@schaumburg.com or at 847-923-3851.