Contractors who do repair and upgrade work on older apartment buildings north of Chicago may see a new source of jobs. Evanston's Housing and Community Development Committee on Tuesday approved a federally funded housing rehabilitation loan program for multifamily properties, the Evanston RoundTable reported.
Who qualifies
The program expands an existing rehab loan program for single-family homes, condos and two-flats, according to the RoundTable. The program was already set to add buildings with three or four units. Now apartment buildings with five to 35 units are eligible if at least 51% of the units are affordable.
What work it pays for
The RoundTable listed examples of eligible rehab work:
- Mechanical system upgrades, including boilers, furnaces and water heaters
- Water service and sewer repairs
- Electrical service upgrades
- Roof replacement
- Foundation and structural repairs
How the loans work
The program uses Community Development Block Grant funds from the U.S. Department of Housing and Urban Development and is part of the city's 2025-2029 Consolidated Plan, the RoundTable reported.
Marion Johnson, the city's housing and grants supervisor, said the program will offer zero-interest deferred loans of $50,000 to $150,000, aiming for no more than $25,000 per affordable unit in a building. Annual repayments start after the work is done and are spread over 20 years. Full repayment is due right away if the property is sold or transferred or the affordability requirements aren't met.
Applications will open once or twice a year depending on funding. They'll be judged on urgency, the owner's inability to get other funding and the number of affordable units. Staff will also give priority to properties with unsubsidized affordable units and to small and medium housing providers.
Landlords want grants
Not everyone was satisfied. Longtime Evanston landlords Carlis Sutton and Tina Paden told the committee the city should offer grants instead of loans, the RoundTable reported.
"My building will soon have to provide air conditioning, and I have received an eye-popping estimate for $106,000," Paden said. "If I'm forced to eat these costs alone without assistance, I can no longer provide affordable units."
Committee Chair Bobby Burns, the Fifth Ward council member, said he supports the program and appreciates the 20-year repayment plan. He said the Five-Fifths TIF Advisory Committee is working on a grant program for homeowners and landlords, but it will only cover properties in that TIF district. "So it's important that we dial this program in the right way, because this will be the program that can support any property owner, no matter where they are in Evanston," he said.
Why it matters for contractors
The list of eligible work reads like a mechanical, plumbing, electrical and roofing contractor's core business: boiler and furnace replacements, water heaters, sewer and water service repairs, electrical service upgrades, roofs and structural work.
With loans of $50,000 to $150,000 per building, these are meaningful jobs for small and mid-size contractors. Programs funded with CDBG money typically come with federal requirements, which can include specific bidding procedures, inspections, lead-safe work practices in older buildings and, for some projects, federal wage rules. Contractors who want this work should learn the city's requirements and get on any approved contractor lists early.
Paden's $106,000 air conditioning estimate is also a signal. Owners of older buildings facing new cooling requirements are going to need HVAC work, and they're watching costs closely. Contractors who can offer practical, phased options for older buildings may win more of that business. Watch for the city to announce when applications open.