Creating Homeownership Opportunities with Neighborhood Stabilization Program Funds

Presented by Robin Benson - Program Manager

IL Homeownership Coalition for People with Disabilities

A program of the Illinois Assistive Technology Program

NSP OVERVIEW HOMEOWNERSHIP PROJECTS

NSP funding to benefit households with incomes equal to or less than 120% of the Area Median Income

At least 25% of the funds must benefit households at or below 50% of AMI.

State’s goal is to increase this to 40% of the State’s allocation

Priority populations also include low income seniors, persons with disabilities and persons who are homeless or at risk of becoming homeless

Projects that include at least 10% accessible and/or adaptable units are encouraged

GETTING STARTED FORMING PARTNERSHIPS

Which organizations can provide these services?

Affordable loans/additional grants

Outreach & Referrals

Credit & pre-purchase counseling

Homebuyer education (minimum 8 hours)

Post-purchase counseling & emergency assistance

THE FOUNDATION

Affordable Loan Programs

IHDA’s I-Loan (MRB)-check for availability

IHDA’s H.E.L.P. - check for availability

FHA/VA

Rural Development’s 502 Direct

Habitat for Humanity

LAYERING RESOURCES

MAKING THE LOAN MORE AFFORDABLE

Down payment & closing cost assistance programs

Section 8 Homeownership Vouchers Tax Credits – I-Loan Certificates Matching funds – employer assistance & IDAs Seller/builder assistance programs

DOWN PAYMENT & CLOSING COST ASSISTANCE GRANTS

American Dream Down Payment Initiative (ADDI)

IHDA Trust Fund IHDA’s I – Loans – check for availability Federal Home Loan Bank of Chicago

(FHLBC) - non-profit organizations FHLB – IL League of Financial Institutions NSP funds

MORE DOWNPAYMENT & CLOSING COSTS GRANTS

CDBG – for cities HOME (HUD-funded) – for cities Assist Program – for cities (Illinois Facilities

Fund administers) – check for availability of funds

IHDA’s H.E.L.P Program (participating communities only) – based on availability of funds

REACH Illinois - Employer-Assist Program

SECTION 8 HOMEOWNERSHIP VOUCHERS

Can use with many loan programs

Subsidizes mortgage payment

Subsidy based on household income/size

Must have Section 8 rental voucher

Makes homeownership affordable for households at or below 30% AMI

Not all housing authorities have them

IHDA’s MORTGAGE CREDIT CERTIFICATES

First-time homebuyers only

Dollar-for-dollar reduction in federal income

taxes up to 20% of mortgage interest

Remaining 80% of mortgage interest will qualify

as itemized tax deduction

Used with any conventional loan

Income and purchase price limits apply

Available through IHDA’s partner banks

ILLINOIS G-I HOME CREDIT PROGRAM

For honorably discharged veterans and active service personnel

Credit for a long as remain in property Up to up to 20% of annual mortgage interest First-time homebuyer, except for veterans Must be primary residence Fixed rate mortgages for15-30 year period $500 fee to participate in program

Joint effort of IHDA, IL Finance Authority and IL Dept. of Veteran’s Affairs

I-LOAN CERTIFICATE PROGRAM

Statewide Program

Same guidelines as other MCC programs

Follows same guidelines as the I-Loan first-time homebuyer program

Check IHDA website for available lenders

IHDA COMMUNITY CREDIT CERTIFICATE PARTNER PROGRAM

For communities that cede volume cap to IHDA to establish an MCC program

For residents of that community Same guidelines as Statewide Program Home must be in that community See website for participating communities Funds available on first-come basis Purchase and income restrictions apply

SUMMARY

Loan Program 1st Time Assistance / 1st Time

Homebuyer? Grants Homebuyer?

IHDA’s I-Loan (if available)

YES IHDA’s I-Loan

( if available)

YES

IHDA’s H.E.L.P. YES Trust Fund YES

FHA NO H.E.L.P. YES

RD’s 502 Direct NO REACH IL YES

Habitat for Humanity

NO ADDI

NSP

YES

NO

VA NO FHLB

FHLB (ILFI)

YES

NO

Section 8 Vouchers

YES

MATCHING FUNDING

REACH Illinois – employer-assist program (Regional Employer-Assisted Collaboration for Housing)

www.reachillinois.org

and

www.housingactionil.org - list of participating employers

Department of Human Services – Individual Development Accounts

Benefits of IDAs

Can save up to $2,000 Will receive $2,000 in matching funds Funds can only be used towards the purchase of

a first home Must complete home purchase within 24 months Participants can drop out and have their savings

returned to them, without the matching funds IDA funds can be combined with other first-time

homebuyer down payment assistance programs (with exception of the IHDA Trust Fund grant)

Six Months Savings Period

All participants must save for at least six months & no more than 18 months

All IDAs are held at National City Bank

All participants must agree to have funds electronically withdrawn from bank account.

Getting Started

Credit score must be greater than 515

First-come first-served to the first 850 families

Must have claimed the Earned Income Tax Credit during the last tax year

or Have adjusted gross income less than 200% of

poverty level

www.dhs.state.il.us/assets

POST-PURCHASE EMERGENCY ASSISTANCE

Local/county governments Rent/mortgage payment assistance Weatherization Utilities Repairs/home modifications

Homeless Prevention Grants - Continuum of Care agencies, i.e. Salvation Army, Catholic Charities Utilities Rent / mortgage payment assistance

HUD-Certified Counseling Agencies – foreclosure mitigation, financial counseling

SUCCESS STORIES

Habitat for Humanity

Section 8 IHDA Trust FHLBC

IHDA loan Section 8

voucher IHDA Trust FHLBC grant HOME grant

U.S.D.A. Rural Development

- Sect.502 Direct IHDA Trust FHLBC grant Dept. of Labor -

Home Mod

grant

HOW WE CAN ASSIST

Provide technical assistance to organizations applying for NSP funds in developing a homeownership program if none exists

Create partnerships with Centers for Independent Living and other service providers to reach out to priority population

Assist applicants in connecting to local partners that will provide the necessary resources.

ADDITIONAL ASSISTANCE

Assist in developing community support for the project

Assist in developing a homebuyer application and income certification process

CONTACT INFORMATION

Homeownership TA Contact: Robin Benson Illinois Assistive Technology Program rbenson@iltech.org (217)522-7985

DHS Contact: Kirstin Williams Kirstin.Williams@illinois.gov(312)793-4980

CSH Contact: Cindy Thomas Cindy.Thomas@csh.org  (312)332-6690 x23