LEVERAGING FINANCIAL RESOURCES
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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