Urban Innovation in Illinois

The Affordable Housing Planning and Appeal Act (Public Act 93-0595) found that there exists a shortage of affordable housing that is accessible, safe, and sanitary in the State of Illinois. It is imperative that action be taken to assure the availability of workforce and retirement housing, and local governments in the state that do not have sufficient affordable housing must be encouraged to assist in providing affordable opportunities. The state has required all municipalities that do not have at least ten percent (10%) of their housing stock designated as affordable, draft an affordable housing plan. This project is acknowledged as supporting the provision of the housing law that requires municipalities to develop a plan to assess the community to maintain 10% of its inventory that is affordable, diversified in dwelling unit type, size, and design, and supports the local population, creating a high-quality residential environment.
The Village of Round Lake Beach is experiencing a problem with abandoned properties. This is a community comprised of approximately 7,349 homes, of which approximately 100 (or 1.5%) are vacant due to abandonment. The village has been extremely successful with economic development efforts through David Kilbane’s project that has created seven homeownership opportunities and provided seven new tax opportunities for the municipality. The grant administrator oversees the program’s success with weekly reporting requirements and inspections.

The village is the first municipality in the nation in pursuit of a proactive approach through the development of partnerships to resolve relevant housing concerns. The Home Acquisition and Rehabilitation Project is a ground-breaking planning process recently introduced in the spring of 2002 no other municipality in the country has attempted and successfully developed the method of rehabbing properties independent of a not-for-profit agency.

The initial plan began with David Kilbane, village administrator’s idea to create an affordable housing project. David was able to have the Board of Trustees support the creation of a partnership with a local attorney, realtor, and banker in 2001. According to David, this is a team approach that involves a partnership between government, banks and real estate brokers to return vacant property to the tax rolls and create new affordable housing. The project has also enlisted a general contractor to the team of people to create an agreement to acquire rehab and sell vacant properties within the village to maintain affordable neighborhoods that would prove to be financially beneficial to all parties involved.

The village has successfully provided seven low-to-moderate income families with an affordable home since the start of the project. Currently, the village is working on the tenth house. The grant requires the income is verified and meets the 80% median income HUD guidelines prior to acceptance of the contract. The homes have deed restrictions placed on them to ensure that the homes remain affordable for ten years. The village provides quarterly reports to the grant administrators on the use of the funds.

According to David Kilbane, the creator of this project, the affordable housing plan created by the Metropolitan Mayors Caucus as the sample model plan included guidelines to help local officials to prepare a housing plan for their community because of the state housing law. Several planners from different municipalities in the State of Illinois volunteered to create the model. The HARP project will support the guideline within the model plan that encourages the creation of a housing inventory that is diversified in dwelling unit type, size, and design, and that supports the local population, creating a high-quality residential environment. The project will also support the provision of engaging in efforts that may potentially be easily replicated.

First State Bank supplies the village with a $550,00.00 line of credit for acquisition because David Kilbane, village administrator requested their services. Also, in 2002, the village secured a grant for $15,000 from the Lake County Affordable Housing (LCAH) Commission and in 2003, a grant for $75,000 from the Lake County Home Program. In 2004, the village secured a second grant for $15,000 from LCAH. LCAH granted the village $30,000 in 2005.

This project has a strong committed private partnership with the bank, realtor and general contractor as well as a public partnership with the Lake County Affordable Housing Commission providing grant dollars to the village to fulfill their mission to provide affordable housing in Lake County. There is a very powerful movement for affordable housing opportunities in Lake County that makes the project an effective process.
Village of Round Lake Beach Program originator
Lake County Grant administrator
First State Bank of Round Lake Line of credit
New Century Realty Realtor
E & E Construction General contractor

According to the creator David Kilbane, this is a team approach that involves a partnership between Jill Gross, Vice President from first State Bank; Tom Yingling, Realtor from New Century Realty; Bob Powers, Vern Witkowski and Dan Roos from Lake County; Eric Beck, general contractor; and David Kilbane, Village Administrator, Jeneen Smith-Underwood Neighborhood Services Coordinator to return vacant property to the tax rolls.

In 2001, the Board of Trustees created a department of Economic Development to assist both existing and prospective industrial or commercial firms to expand, locate, and relocate within the Village. Additionally, the Economic Development Department will maximize the quality of residential housing stock within the Village. To this end, the Village has hired a full time Neighborhood Services coordinator to manage housing maintenance and improvement.

Mayor Richard H. Hill
1937 N. Municipal Way
Round Lake Beach, IL 60073

David Kilbane, Village Administrator
1937 N. Municipal Way
Round Lake Beach, IL 60073