From the mice infestation residents complain about at one complex to the always dark hallways in another, Mt. Prospect authorities know all about the problems of rental properties that have been allowed to deteriorate.
For years, the village has been trying to get owners of some apartment buildings to spruce up.
But in recent weeks, officials have taken a dramatic step by offering forgivable loans to apartment building owners who pledge to make needed repairs.
“Many of these buildings were made to 1954 standards, and there are plenty of areas to make upgrades,” said Bill George, the village’s building department coordinator.
The Small Rental Property Program is designed to provide interest-free loans to landlords who live in their buildings. Using $236,000 in federal funds, the program is designed for buildings of two to 11 units.
To qualify for grants to fix up a unit, property owners must rent the apartment to low-income residents and offer affordable rents.
Under the program guidelines, property owners can receive between $2,000 and $14,999 in the form of five-year loans. But the owners don’t have to repay the loans, provided they keep their properties up to code for at least five years.
The funds can be used for anything from smoke detectors to upgrading electrical outlets and making wall repairs. But the money can be used to cover only 75 percent of the improvement costs. The remaining 25 percent must be paid by the building owner.
“This is not just about building codes, it’s about improving the quality of life for residents and property owners,” said Michael Sims, Mt. Prospect’s village planner.
The idea for the improvement program came from the Mt. Prospect Visions Project, which for five years has sought to build coalitions with groups working on issues such as housing, health and public safety.
But loan programs to improve housing have not had a successful history in Mt. Prospect. Six years ago, the village created a similar program, and few applied.
Those who did receive funding often did a poor job of making the necessary improvements, officials said.
“The money was made available, but we did not see conditions improve, so the Village Board was reluctant to continue that program,” said Robert Roels, director of the village’s Environmental Health Department.
Much of the problem was attributed to multiple ownership of local complexes, which made it difficult to hold one party responsible for repairs. About 280 people are involved in the ownership of the 45 apartment buildings in Mt. Prospect, village officials said.
This time around, the village is hoping to have more success by concentrating on property holders who live in their own buildings.
“With this program, the owner must be living in his investment,” Sims said. “That may be a motivation to clear up problems with the building.”
