The Village of Schaumburg provides a Residential Rehabilitation Loan Program to assist residents with the correction of code violations, substandard living conditions, health or safety hazards, deficiencies in the home, and weatherization improvements. Funds are provided through the Community Development Block Grant (CDBG) program allocated to the village by the U.S. Department of Housing and Urban Development (HUD).
Priority is given to homeowners who are seniors or disabled.
Type of Loans Available
The Village offers interest-free (0%) loans to eligible homeowners. Single-family detached homeowners may receive a maximum loan amount of $30,000, while homeowners in multi-family units may receive a maximum loan amount $20,000. All loan recipients must sign a second mortgage on the property for the approved amount.
The full balance of the loan is due for repayment if the home is sold, ceases to be the owner’s primary residence, or a change of title occurs within the first 5 years of the loan. Beginning in year 6, the required repayment amount decreases annually until the loan is fully forgiven at the end of the 10th year.
How Does the Rehabilitation Program Work?
Village of Schaumburg residents who own and occupy their home, income qualify, have 15 percent clear equity, and whose net asset value does not exceed $300,000 for a single family home ($180,000 for a multi-family unit) are eligible to submit an application. Additional information such as copies of tax returns, paychecks, mortgage statements, and bank accounts must be submitted.
Once the application is approved, an inspection of the home is conducted with the homeowner. This inspection helps identify code violations and repairs that need to be completed. A specification list is developed by the General Contractor and reviewed by the homeowner. Registered contractors will then bid on the project. The lowest, most responsible contractor is awarded the contract.
Work is performed on the home, and upon completion of work and approved inspections, the village pays the contractor directly.
HUD Income Limits*
| HOUSEHOLD SIZE | INCOME LIMIT |
| 1 Person | $68,050 |
| 2 Person | $77,800 |
| 3 Person | $87,500 |
| 4 Person | $97,200 |
| 5 Person | $105,000 |
| 6 Person | $112,800 |
| 7 Person | $120,550 |
*Income figures are for 2026 and provided by HUD. Income eligibility is based on those who are less than 80 percent of the Median Income.
Eligible Projects
The program will not pay for fences, sheds, garages, room additions or purely cosmetic improvements.
| Category | Eligible Projects |
|---|---|
| Basic Structures |
Roof Replacement Foundation Repairs |
| Electrical Systems |
Repairs Service Upgrades Replacement of Electrical Fixtures |
| Plumbing Systems |
Repairs Service Upgrades Replacement of Plumbing Fixtures |
| Heating Systems |
Furnaces Hot Water Heaters |
| Weatherization Improvement |
Insulation Window Replacement Door Replacement Installation of Storm Doors Siding Replacement |
| Interior Improvements (eligible under certain restrictions) |
Carpet/Flooring Replacement Repair/Replacement of Porches and Exterior Stairs Grading & Drainage Improvements |
|
Code Violation Corrections are eligible under certain conditions. |
|
How Do I Apply?
The village has partnered with North West Housing Partnership to administer the Residential Rehabilitation Loan Program. To request an application or to discuss details about the program, please contact Michelle Hill at NWHP at michellehill@nwhp.net or 847-969-0561.
For general questions, you may also contact Chidochashe Baker, Community Planner, at cbaker@schaumburg.com or at 847-923-3851.
Page owner: Community Development
Reviewed Oct. 2026 · next review April 2027