Evanston's Housing and Community Development Committee voted Tuesday, Oct. 20, to expand the city's housing rehabilitation loan program to multifamily buildings, Evanston Now reported.

The expansion creates zero-interest loans between $50,000 and $150,000 for properties with five to 35 units. More than half the units must be affordable to households earning less than 80% of the area median income. Owners would repay the loans annually over 20 years.

The city set aside a maximum of $300,000 in federal Community Development Block Grant (CDBG) funds for the program's first year.

The plan had been tabled in July with a different repayment structure. That version offered 10- and 15-year loan terms with full repayment deferred until the end. The revised version spreads payments across 20 years instead.

Marion Johnson, the city's housing and grants supervisor, said the change was based on committee feedback. The new structure reduces the repayment burden on property owners over time and provides more stable revenue for the program, according to Evanston Now.

Full repayment would be due immediately if a property is sold, transferred or if affordability requirements are not met.

Ald. Bobby Burns (5th Ward) requested one amendment before the vote: allowing eligible new owners to assume existing loans on a property, similar to the current rehab loan program. The committee unanimously accepted the change.

The existing program provides zero-interest, deferred loans for single-family homes, two-flats, townhomes and condos with low- and moderate-income residents earning below 80% of the area median income. Those loans cover repairs related to health, safety and accessibility.

When the committee tabled the proposal in July, Ald. Matt Rodgers (8th Ward) questioned whether the affordable-unit threshold was too low and stressed that rent affordability should also factor into eligibility. "If we're going to make this available [it] should really be helping the landlords who are working to keep those rents down," Rodgers said at that meeting, according to Evanston Now.

Johnson told the committee at that time that both rent and income affordability would be considered when determining eligibility.

The city has not announced when applications will open.