Crystal Lake City and McHenry County Working to Put Foreclosed Homes In The Market

In this economy where every community in McHenry County is experiencing the foreclosure issue at record levels, the City of Crystal Lake is doing something to help. Its actions are helping to move yet another foreclosed home in the City back into the market.

In cooperation with McHenry County, the Crystal Lake City Council passed an ordinance at its July meeting to waive permit fees for homes being purchased and renovated through the Neighborhood Stabilization program (NSP).

NSP was created through the Housing and economic Recovery Act passed by Congress in 2008. For McHenry County's program, it is expressly intended to acquire abandoned, vacant and foreclosed homes. These homes would otherwise sit vacant and their conditions deteriorate, furthering the distress on the surrounding community.

"It is in our City's interest to cooperate on the foreclosure issue wherever possible," said Mayor Aaron Shepley. "The funds cannot be used to prevent foreclosures, but they can reduce the impact of foreclosures once they occur."

The waiver of fees by the City reduces the cost of the property renovation, and it allows McHenry County to use that fee waiver as a match per NSP regulations. The County was warded $3 million in federal NSP funds, which will be administered by the Corporation for Affordable Homes of McHenry County (CAHMCO). CAHMCO was also awarded an additional $2.4 million in State administered NSP funds to utilize in McHenry County.

The main program objectives are to stabilize neighborhoods, protect property values from further decline and to make available local construction jobs," said Maryanne Wanaski, Deputy Director of the McHenry County Planning and Development Department.

It is encouraging to see Crystal Lake be so proactive in its efforts to minimize the impact of foreclosures in its community," says Mary Lu Seidel, Executive Director of the Corporation for Affordable Homes of McHenry County. "They are not waiting for a solution...they are engaged actively in finding these solutions."

To date, CAHMCO has either acquired or has under contract 14 properties throughout McHenry County with the County NSP funds. The homes are being renovated and offered for sale to income eligible homebuyers. Rehab brings them up to code, increases energy efficiency and improves major home infrastructure. Acquisition assistance will also be available for qualified buyers. CAHMCO has acquired two properties in Crystal Lake.