The Bensenville Project
Bensenville is a community west of Chicago and in the northeast corner of DuPage County, with a 1990 population of 17,767. Two-hundred twenty units, entitled Hamilton Townhomes, were constructed in the community in the 1960s. Over the years, the 12.5 acres containing the 220 units, along with driveways and parking areas in a three-block area, deteriorated.

In 1992, the Village of Bensenville made application to the DuPage County CDBG Program for multi-year funding, to be used in two phases for improvements to the townhouse area. It was contemplated that the public improvement portion would consist of a three-year plan to replace and rehabilitate the structural infrastructure of sewers and water, which were causing health and welfare concerns throughout the neighborhood. In addition, the neighborhood was characterized by graffiti, badly deteriorated roofs and walls, broken sidewalks and parking areas, poor to non-existent landscaping, and no central organization for the townhouse community.

The efforts of elected officials and staff identified the aforementioned concerns through a Community Needs Assessment. It was critical that input from townhouse residents was solicited and a format created which could provide a true discussion of problems in the area and commitments made by both the Village and, most importantly, residents of the area.

This article summarizes a community's response to an all-too typical urban and now increasingly a suburban concern — deteriorating neighborhoods.

General Background Information
The Community Development Block Grant Program (CDBG), a federally funded program, became effective on January 1, 1975, and was authorized by Title I of the Community Development Act of 1974.

The Act replaced eight separate programs, consolidating them into a more flexible way of meeting the needs of urban renewal, neighborhood development, open space, urban beautification, historic preservation, public and neighborhood facilities, and the model cities supplemental grant program.

The primary objective of the Act is the development of viable urban communities by providing decent housing and a suitable living environment, principally for persons of low and moderate income.¹

In 1975, DuPage County established the DuPage County Community Development Commission (CDC) as a co-operative effort among more than 25 municipalities throughout the County. The Commission selects projects from individual applications submitted by the municipalities, the County itself, and many not-for-profit groups. It is the County (the County Board) that is the grantee agency officially recognized by the federal agency, HUD.

The four components of eligibility for public funding are:

1. The proposed activity must meet at least one of the three national objectives:

(a) benefit to low and moderate income persons, and

(b) prevention or elimination of slums or blight, and

(c) meet community development needs having a particular urgency.

2. The recipient is eligible to receive CDBG funding for the activity proposed.

3. The proposed activity is listed as eligible in the CDBG regulations and is eligible according to DuPage CDC policies.

4. The proposed project is not in conflict with other federal, state, and local guidelines applicable to the CDBG Program.

The first national objective has been established as

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"the development of viable urban communities, including decent housing and a suitable living environment, and expanding economic opportunity, principally for persons of low and moderate income."²

In connection with this primary objective, the CDC has established the following policies:

1. Projects funded for each program year must be such that a minimum of 75% of project funds are allocated to activities that meet the standards of the Act which benefit low and moderate income persons, and

2. Any funds reallocated due to project cancellation or under-runs from projects meeting the above-cited standards also are required to meet these standards.

A second national objective relates to the prevention or elimination of slums or blight. This can be done on a "spot" basis. Projects designed to eliminate slums or blighted areas in a community must show that:

(a) the area meets HUD standards for a blighted area, and

(b) the project addresses a blighting influence in the area.

To be determined as a blighted area the following two conditions must be present:

(a) the area must meet the state definition of a blighted area, and

(b) the area must have a substantial number of deteriorated or deteriorating structures or public improvements.

The state statute defines a blighted area as "any area of not less than the aggregate than two acres located within the territorial limits of a municipality where buildings or improvements by reason of dilapidation, obsolescence, overcrowding, faulty arrangement or design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or layout or any combination of these factors are detrimental to the public's safety, health, morals or welfare."³

Of course, detailed documentation (including photos) will be required to support the qualification of the project to relieve slum or blighted area, including a map outlining the area and an official local designation by the governing body that the area does qualify as a slum or blighted area. Bensenville's application, for instance, involved more than 500 hours of work by Village officials.

Funding
The neighborhood investment project attempts to stabilize and preserve existing affordable neighborhoods. Examples of this investment include construction or replacement of sanitary sewers, water mains, storm sewers, flood management, streets, sidewalks and street lighting, and open space/recreation. Projects which benefit an area, rather than specific households, can relate to drainage improvement, for example. Finally, projects with direct benefit to households or individuals relate to paying regular association assessments or required hook-up fees for sewer and water facilities for low and moderate income persons.

To coordinate the neighborhood improvement objectives, it is essential that the residents of the designated neighborhood be involved in the planning process, and have specific opportunities to participate in the design and implementation of the use of the funds. The applicant (municipality) is required to document the process of project development as to local resident participation; both the holding of public hearings and establishment of an effective Owners' Association.

Application Process
Before applications will be accepted, four phases must be completed:

1. A public hearing must be held, and

2. The County will advise the applicant as to available funds for each category of housing, neighborhood investment, and planning administration, and

3. A pre-application meeting with CDC staff, and

4. Submission of the application (an original and five copies) by the deadline date (customarily mid-May each year).

No information will be accepted after the deadline date for the application process. Since the application date changes with each year, you must verify in advance with the local agency the cutoff date.

Evaluation Process
Phase I of the Bensenville application described the housing component as consisting of five parts to be implemented over a three year period:

1. The annual purchase, rehabilitation and resale of as many as 12 of the townhouses.

2. A homeowners' association would be organized and established to ensure that local residents

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would enforce rules, collect assessments, and maintain the common areas in the future.

3. Establish or contract with an existing not-for-profit organization to coordinate rental of properties.

4. Election of a townhome association board which would allocate the resources, monitor implement, and see to the success of local resident control of the neighborhoods.

5. Give grants to owners of up to 25% of the rehabilitation costs of individual units, up to a maximum of $5,000. Requirements for such direct grants would include association membership, installation of sewers, tuck-pointing, and fascia external repairs.

Further, and in addition to the housing phase, the neighborhood component of the grant monies would include the replacement of existing manholes and installation of new ones at strategic locations, replacement and rehabilitation of sanitary lines throughout the common areas of the neighborhood, and removal or replacement of area sidewalks, as well as lighting conduit to be placed for improved lighting.

The second phase of the neighborhood investment aspect of the improvement of the common areas along and among the neighborhoods of this housing development would be the resurfacing of streets, the reconstruction of court areas with improvements to drainage and existing sidewalks, installation of new lights and improved landscaping.

We anticipate that direct participation and implementation of a viable homeowners' association will invest pride in the neighborhood and improvement of the area. The association benefits the entire area because problems such as maintenance of buildings, parking, lawns and cleanliness would be the responsibility of the owners themselves through the association. The formation of the association board, through an election process, enabled the participants to hire a management company.

In addition, a Police Neighborhood Resource Center, which is handicapped accessible, was initiated by the Village and acts as a focal point for neighborhood community programs.

Conclusion
Only time will tell whether the residents themselves, under the guidance of the newly drafted and recorded Declarations of Covenants, will succeed in maintaining and improving their neighborhood and living environment. Clearly, the improvement program could not succeed without the active participation of the residents. With that participation, Bensenville's development project may well set a national standard for municipal resident cooperation for community betterment.

Michael S. Allison
Bensenville Village Manager
Jeffry J. Knuckles
Counsel •

2. 24CFR 570.200 (a) (3).

3. Ill. Rev. Stat. Ch. 67 1/2 Par. 65 (Blighted Areas Redevelopment Act of 1974).

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