Two DuPage County advisory panels are recommending the county redirect $6.5 million in federal housing funds from building new apartments to rental assistance for its lowest-income residents.

The county's Home Advisory Group voted unanimously Tuesday, Sept. 1, to recommend the shift. The CDC Executive Committee approved the same recommendation later that day, also unanimously. County Board member Saba Haider moved the resolution in the advisory group, with Andrew Honig seconding.

The money comes from the HOME Investment Partnerships American Rescue Plan Program (HOME-ARP), a federal program aimed at reducing homelessness. DuPage County's original plan earmarked the funds for constructing affordable rental housing with three or more bedrooms.

The original plan proved unworkable. Community Development Administrator Julie Hamlin told the advisory group that developers and nonprofit partners found the program nearly impossible to use for new construction.

Eligible households generally have extremely low or no income. Rents are capped at 30% of household income. And the DuPage Housing Authority lacks enough vouchers to bridge the gap between what tenants can pay and what construction costs.

Community Services Director Mary Keating flagged related problems at a Human Services Committee meeting June 16. She said HOME-funded projects have grown increasingly complicated and are taking longer to finish, driving up administrative costs. HOME funds carry a 10% administrative cap, half the 20% allowed under the Community Development Block Grant (CDBG) program.

With other rental-assistance funding sources nearing or past their spending deadlines, Hamlin said the county proposes redirecting the HOME-ARP dollars to supportive services. The money would cover short- and medium-term rental assistance, utility payments, first and last month's rent, and moving expenses for people who are extremely low-income, homeless or have no income.

The amendment still needs approval from the Human Services Committee and the full DuPage County Board before taking effect. If those bodies sign off, county staff would prepare the funding application in September, release the notice in October, accept applications in November, score them in December and present recommendations in January 2027.

No members of the public spoke at the Sept. 1 advisory group meeting, which Greg Schwarze chaired. County Board member Paula Deacon-Garcia also attended.

The next Home Advisory Group meeting is scheduled for Tuesday, Oct. 6. Residents with questions can contact the Community Development Commission at 630-407-6600.