A little-used Aurora program that insured older properties against devaluation due to fears over racial diversity or crime may end because so few people are using it.
Since the Equity Assurance Program was enacted in 1994 only 10 homeowners have signed up and only five remain active, said Brian Caputo, the city’s finance director.
The City Council Finance Committee on Wednesday recommended eliminating the program. If the full council approves, the five remaining homeowners would be grandfathered into the program.
The program’s intent was to calm fears that property value would depreciate because of racial diversification or perceived crime problems in older neighborhoods.
“Perhaps the primary reason for the lack of participation in the EAP is that Aurora has enjoyed steadily rising property values,” Caputo wrote in a memo. Since 1990, property values have risen by between 44.2 percent and 82.3 percent in the city’s older neighborhoods, according to Aurora Township assessor records.
“Given that property values in Aurora have been increasing along with the city’s racial diversity, there appears to be no need to continue the EAP,” Caputo wrote.
Under the program, similar to ones in Oak Park and Chicago, the owner of a home at least 20 years old and worth no more than 20 percent above the median Aurora home value can pay the city $250 to insure the home’s value.
If, after five years, the owner cannot sell the home at the initial appraised value, or the city and owner agree its value has depreciated, the city is obligated to pay the homeowner 80 percent of the lost value.
