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

Affordable Loan Programs 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) IHDA’s H.E.L.P. Trust Fund FHA NO H.E.L.P. RD’s 502 Direct REACH IL Habitat for Humanity ADDI NSP VA FHLB FHLB (ILFI) Section 8 Vouchers

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 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