O'Fallon Seeks Housing Dept. Grants for Home Improvement Loans, Senior Services

The City of O’Fallon will request the release of Community Development Block Grant (CDBG) funding from the U.S. Department of Housing and Urban Development (HUD) as soon as the final forms arrive, according to city officials.

Intended primarily to aid low to moderate-income families, the money will go to fund a forgivable home improvement loan program, senior transportation assistance and an emergency homelessness prevention program.

While no final number is available, O’Fallon Public Relations Director Tom Drabelle said the city expects overall CDBG funding at around $225,000--roughly a 10-percent decrease from last year due to cuts at the federal level.

The Home Improvement Loan Program (HILP) is the best funded and most popular of the CDBG programs. It provides a one-time, no interest, potentially forgivable loan of up to $5,000 for eligible residents to make repairs and improvements to owner-occupied property.

“This year, we have almost 40 people on the waiting list,” Drabelle said, though applications aren’t being accepted until Friday. “We’re encouraging people to apply faster than ever this year.”

Eligible repairs or replacements include water heaters, sump pumps, siding, roofs and a variety of other home improvements. The loan will be forgiven only if the property is not refinanced and the owner remains in the dwelling for at least five years. Full eligibility requirements and a program application are available on the city’s website.

Jessica Hawkins is the CDBG program administrator for nearly three years. She said the HILP loans and other HUD funds are doled out based on the number of adult occupants in a home (persons ages 18 and up, not in school) and what income bracket they fall into: extremely low, very low and low (in a three-adult home, for example, less than $18,000, $31,000 and $50,050 at each level, respectively).

Grants are first provided to “extremely low” income receivers before the next bracket is considered, and so on, in accordance with HUD standards. She estimated there would be enough money for 28 of the HILP loans, most of which will be for the full amount possible, $5,000.

Hawkins will host an event at city hall on July 8 to educate the public on the program.

“It’s basically an event where we begin to accept applications for the year. People can pick them up, fill them out and get help while they’re there because the forms are lengthy,” she said.

Also funded by HUD grants is the Senior Transportation and Rides (STAR) program, which provides eligible O’Fallon seniors with transportation to necessary medical services. To qualify, legal residents must be 62 years old or older and lack access to a vehicle or be unable to drive. The nonprofit Mid-East Area Agency on Aging (MEAAA) administers the program, and one of its representatives conducts an in-home evaluation to determine what transportation measures are necessary.

Hawkins estimates about 50 seniors are served by the program each month. A brochure with application information is also available from the city's website.

A final portion of HUD funding is reserved for the Emergency Homelessness Prevention Program, administered jointly by the Salvation Army and Sts. Joachim & Ann Care Service. Designed for O’Fallon residents on the verge of homelessness, the program can help qualifying residents remain in their homes through financial assistance with mortgage, rent and utilities assistance. Financial and legal education and services are also available.

For more information, the Salvation Army can be reached at 636-240-4969 or Sts. Joachim & Ann Care Service at 636-441-1302.

Some money is also set aside to for grant administration and community planning purposes. The City of O’Fallon became an entitlement community eligible to receive HUD funds in 2004. As of 2010, the city’s CDBG funding had swelled to $250,000.