Transcript LEVERAGING FINANCIAL RESOURCES

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
Homebuyer?
Assistance /
Grants
1st Time
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
[email protected]
(217)522-7985
 DHS Contact: Kirstin Williams
[email protected]
(312)793-4980
 CSH Contact: Cindy Thomas
[email protected]
(312)332-6690 x23