Struggling homeowners could see financial benefit from Chicago's focus on the DNC
CHICAGO (CBS) – Jimmy Williams has lived on the west side of Chicago his entire life—67 years.
Now, he's hoping the spotlight shining on the 2024 Democratic National Convention will send a little light and some money his way,
"I'm not a millionaire or anything," he said. "Just looking for a lifeline."
Williams needs a lifeline to fix up his older home.
"Alone, windows are $60,000," he said. "I don't make that in a year."
Williams is retired now and working a small part-time job, trying to make his fixed income stretch. But he said tuckpointing for his house will cost another $40,000.
The investment idea
Williams lives in Chicago's 27th Ward on the Near West Side. His alderman, Walter Burnett Jr., has an investment idea for struggling homeowners like Williams.
"I'm trying to make sure that the folks who want to stay in the community be able to fix up their property and make them look just as nice as the new houses being built around them," Ald. Burnett said.
He wants to use part of the $22 million unallocated funds in Tax Increment Financing (TIF) from the Central West TIF district for a new Neighborhood Improvement Program (NIP) grant.
"There's older people who've had their house for a long time and are doing everything they can to hold onto it," Burnett said, "but they can't afford to do all the things that they need to do."
For example, in Williams' case, the money could be used for tuckpointing, or replacing those old drafty windows, in the home he's owned for 30 years.
Getting the grant off the ground
Several steps need to be taken before Ald. Burnett's grant program gets off the ground.
Anthony Simpkins is the president and chief executive officer of Neighborhood Housing Services of Chicago. His nonprofit organization, or a similar one, would most likely be chosen to oversee the TIF NIP grant program as they have in prior years.
"This can become a really valuable resource for helping people stay in their home, which is part of our mission," Simpkins said.
Simpkins said the number of people needing help in 2024 is higher than ever.
"The cost of being a homeowner is rising. The cost of repairs and maintenance is rising. Taxes are rising," he said.
Simpkins said since the COVID-19 pandemic, construction-related repairs have increased by as much as 30%, "so there's a big need for this."
It could take months, though, to get a TIF NIP for Williams' neighborhood approved. Simpkins said boundaries have to be established first. and then the City Council would need to approve the use of TIF funds for the grant.
After that, the city would have to choose his or another organization to administer the program.
If the grant is approved, applicants would have to meet certain eligibility criteria—which in the past have included residency and income requirements.
Simpkins said the grants would be awarded on a lottery basis.
"Generally we have more applicants than we have the number of grants that would be available," he said.
Ald. Burnett said the process to approve the use of TIF funds for the grant won't officially begin until after the DNC leaves Chicago in late August.
Grant success in the past
Dolores Cole received a TIF NIP grant to fix up her Near West Side home 10 years ago, when she was in between jobs and qualified for the money she did not have to pay back.
"We in the community are sometimes very suspicious of things that are quote, unquote free," Cole said. "But this is actually free."
Cole received $17,000. She used the money to address the flooding that happened every time it rained a lot.
"My basement became a swimming pool," Cole said.
She used the grant to install new gutters and a patio.
The year 2016 was the last time a TIF NIP was approved for the Central West TIF District. A total of 21 people applied, five were approved, and the maximum awarded was $17,000.
The city's Housing Department estimates, if approved, this new grant could help 25 to 30 people.
"I don't know what the exact amount is this time, but it can be as much as $30,000 that they can get to fix up something," Ald. Burnett said.
It could take months to approve and roll out the TIF NIP for the Central West TIF District. One more hurdle involves a ticking clock. The TIF district is set to expire at the end of 2024 and would have to be extended.
Jimmy Williams would be grateful for any amount if the grant funds become available.
"When you're on a fixed income, you can only do what you can do and any money that's available, you know, I would definitely use it." Williams said.
