Elk Grove Village has a unique housing initiative that will give village residents an opportunity to be the first to purchase homes in a new development.
Residents can take part in a raffle to buy new homes in the Tonne Grove development, at Tonne and Elk Grove Boulevard.
20 homes, not yet built, on 2-and-a-half acres, are being offered between $466,000 and $508,000.
“Moderately priced,” said Mayor Craig Johnson during a Village Board meeting, considering that current home prices in the village can be a million or more.
“A deal beyond belief,” he added.
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“We’re going to give the American Dream to Elk Grove residents first, and it’s really going to be unique, never been done before,” Johnson said.
The developer is Nick Papanicholas Jr.
“When Mayor Johnson reached out to me about this project, I went silent on the phone for a few minutes,” he said, “because I was questioning the ability to pull something like this off.”
He added, “nobody is getting rich with a project like this.”
The raffle is taking place on July 18th.
Applicants need to be pre-approved for mortgages and offer proof of residency.
They can be current owners or renters or live with their parents.
The homes will be ready in about a year.
Those who buy will have live in the homes for a minimum of five years, with some exceptions that would be considered by a review board.
Exceptions could be a death, a job transfer or military service.
“We don’t want any flippers,” Johnson said.
And the homes can’t be rented to someone else.
There are three different home designs, between 1,286 and 2,000 square feet.
When a person is chosen in the raffle, they’ll have 5 minutes to choose a lot and a floor plan and they’ll need to deliver a $2,500 cashier’s check.
If the homes do not sell to Elk Grove residents, they’ll then be offered on the open market.
