The City of Chicago’s Department of Community Development (DCD) announced today that it is soliciting applications for proposals for the use of $5.4 million in American Recovery and Reinvestment Act (ARRA) funds to expand foreclosure prevention and mitigation initiatives.
DCD intends to use federal stimulus funds to increase its foreclosure prevention efforts toassist homebuyers, homeowners and renters. It also intends to expand the Department’s successful Troubled Buildings Initiative to include the acquisition and rehab of distressed condominiums in neighborhoods throughout the City, converting them into affordable rental apartments.
“Foreclosure filings in 2008 were up 48.4% in the City of Chicago, with 20,592 foreclosure filings,” said Department of Community Development First Deputy Commissioner Ellen Sahli. “The stimulus funds are providing us with the timely
opportunity to expand our foreclosure efforts in a way that will create jobs, keep people in their homes, and help to eliminate the blight that foreclosures create in neighborhoods across the City. We look forward to working with new and existing partners to ease the foreclosure problem that impacts so many of our communities.”
The solicitations are available online at cityofchicago.org/recovery, and are also available between the hours of 8:30 – 4:30 at 121 N. LaSalle, Room 1000. Proposals are due on August 26, 2009.
The funding opportunities are summarized as follows:
- A Request for Proposals to select multiple nonprofit housing counseling agencies to expand the City’s counseling and educational services to enable homebuyers to make informed purchase choices; help homeowners in foreclosure remain in their homes; and assist renters who face eviction as a result of foreclosure in multi-family buildings. Those agencies providing homebuyer/homeowner counseling must be HUD-certified. CONTACT: Audrey Mathis, audreymathis@cityofchicago.org
- A Request for Proposals to a nonprofit agency or consortia of nonprofit agencies/partners interested in developing and conducting foreclosure prevention outreach events to connect homeowners facing foreclosure with assistance and resources, focusing particularly on President Obama’s Making Home Affordable program. CONTACT: Audrey Mathis, audreymathis@cityofchicago.org
- A Request for Qualifications to select an agency with experience in receivership services, property and construction management, and other criteria as specified in the RFQ, in order to reduce the number of vacant and foreclosed condominiums in the City and convert them to affordable rental units for low- and moderate-income renters, through the Troubled Buildings Initiative’s condominium program. CONTACT: Anthony Simpkins, Anthony.Simpkins@cityofchicago.org
The Department of Community Development has a long track record of promoting and implementing foreclosure prevention initiatives, including:
- The Home Ownership Preservation Initiative or HOPI, which since 2003 has prevented more than 2,000 foreclosures, reclaimed nearly 550 vacant, troubled buildings and counseled more than 12,000 Chicagoans.
- An Early Warning Program, which started in 2008 and gives homeowners facing foreclosure more time to get help, work out solutions and keep their homes.
- Support of HUD-certified credit counseling agencies.
- Borrower Outreach events that have assisted over 3,000 residents in Chicago neighborhoods hit hardest by foreclosure.
- Two “Fix Your Mortgage” outreach events that helped connect over 1300 Chicago residents with mortgage information and assistance through the federal Making Home Affordable program.
- A Neighborhood Stabilization Program strategy to acquire and redevelop up to 2,500 vacant, foreclosed homes in the next 3-5 years, using $55.2 million in HUD funding.
MEDIA CONTACT:
Molly Sullivan, 312-744-2976
Department of Community Development